The Times
We haven’t got a plan if U.K. votes for Brexit, Osborne admits to MPs: The Chancellor has not yet asked civil servants to start contingency planning for the possibility that Britain will leave the European Union and has admitted that the referendum could be as far as two years away.
Woodford’s losses on biotech bet mount up: Neil Woodford’s fund has suffered losses of $55 million — far greater than previously thought — in backing a cancer treatment company that is being sued by shareholders and has been accused of financial impropriety.
Investors can have their money back, says BlueCrest fund: Clients of one of Britain’s biggest hedge funds have been told they will be handed back all of their money within months after the company said that it could no longer make enough from fees alone to justify the cost of managing their investments.
Barclays Boss faces 10-year wait for bonus: The new Boss of Barclays has become the first Chief Executive of a British bank to have a decade-long “claw-back” clause written into his contract as lenders are forced to toughen the rules allowing them to reclaim bonuses from senior Managers even if the problems emerge long after an award has been made.
Billions to be poured into war on carbon emissions: Global investment in clean energy is set to receive an annual injection of at least $900 billion over the next 15 years as governments strip carbon from their economies in a race to meet ambitious UN climate change targets.
2,500 new coal plants will thwart any Paris pledges: More than 2,400 coal-fired power stations are under construction or being planned around the world, a study has revealed two weeks after Britain pledged to stop burning coal.
State support for biomass switch gets green light: The European Commission has approved British plans to provide subsidies for the conversion of a coal-fired power station to burn wood pellets, bolstering hopes that Drax, a rival generator, also stands to benefit from the decision.
Fresh threat to buy-to-let lending over stability fears: Landlords face a fresh threat of curbs on booming buy-to-let lending after the Bank of England warned it may intervene in the sector due to concerns it could poison the wider housing market should economic conditions worsen.
The Independent
Saudi Arabia is planning the world’s tallest skyscraper: Saudi Arabia has agreed a massive investment deal to fund the world’s next tallest building – and the first to break one-kilometer tall.
Zurich: Revolving doors spin again at Swiss insurer as Chief Executive decides to walk out: The boardroom drama at Swiss insurer Zurich has taken another twist after Chief Executive Martin Senn decided to walk out of the struggling business, leaving his Chairman in charge.
Clive Christian: Maker of world’s dearest perfume is in the red: The company posted a £2.9 million loss for 2014, compared to a pretax profit of £95,359 the previous year. The producer of the world’s most expensive perfume fell into the red prior to its sale to an investor group that includes private equity tycoon Jon Moulton, new accounts show.
Financial Times
Nikkei pledges to pursue ‘quality growth’ at the Financial Times: Nikkei has pledged to back the expansion of the Financial Times after the Japanese group completed the acquisition of the London-based publisher, bringing together two media groups with a combined history of close to 270 years.
http://www.ft.com/intl/cms/s/2/9f5b8f28-9819-11e5-95c7-d47aa298f769.html#axzz3swWP4sF9
Saudi Aramco in drive to buy locally made equipment: Saudi Arabia’s oil company unveiled plans to ramp up the amount of goods and services it buys locally, in a move aimed at persuading foreign suppliers to help boost the kingdom’s manufacturing.
http://www.ft.com/intl/cms/s/0/2b9045ac-9828-11e5-9228-87e603d47bdc.html#axzz3swWP4sF9
JPMorgan inks lending venture with OnDeck Capital: JPMorgan Chase is tying up with OnDeck Capital, one of the biggest of the specialist online lenders, in a blurring of the boundaries between the old and new worlds of finance.
http://www.ft.com/intl/cms/s/0/fd561dca-984e-11e5-9228-87e603d47bdc.html#axzz3swWP4sF9
Volkswagen to recall 324,000 diesel cars in India: Volkswagen is planning to recall 324,000 diesel cars in India to remove devices linked to emissions cheating in other countries, marking the largest such exercise in the country’s automotive history and a further blow for the German carmaker.
http://www.ft.com/intl/cms/s/0/3bc79c6c-983d-11e5-95c7-d47aa298f769.html#axzz3swWP4sF9
Linde shares fall 14% on profit warning: Shares in Linde plunged 14% after the German industrial and medical gases company said it would miss its profit targets.
http://www.ft.com/intl/cms/s/0/21bdaafa-9815-11e5-95c7-d47aa298f769.html#axzz3swWP4sF9
Nissan eyes raising stake in Renault to at least 25%: Nissan is eyeing raising its stake in Renault from 15% to at least 25%, to try and nullify the French government’s growing influence over the industrial alliance between the two carmakers.
http://www.ft.com/intl/cms/s/0/31daf8c4-9802-11e5-95c7-d47aa298f769.html#axzz3swWP4sF9
Lex:
Linde: breathe deeply: Investors in Linde could do with them. After the market closed on Monday, the German industrial gases group, a major producer of oxygen, became possibly the first company in the world to issue a profit warning for 2017. Its shares fell heavily on Tuesday.
http://www.ft.com/intl/cms/s/3/5d1a274a-9815-11e5-95c7-d47aa298f769.html#axzz3swWP4sF9
Zurich: Senn-t on his way: The departure of Zurich Insurance Chief Executive Martin Senn was met with a market shrug: the company’s shares moved less than 1%. No celebration. No despair. The world gave a collective “meh”. Perhaps it was expected. Company Bosses can survive profit warnings, but not the sort that force them out of an acquisition. The writing was on the wall the moment Mr Senn withdrew from a deal with RSA in September because of problems in his own general insurance business.
http://www.ft.com/intl/cms/s/3/0aedb2b8-9831-11e5-95c7-d47aa298f769.html#axzz3swWP4sF9
Merlin: short on magic: Merlin Entertainments, which operates the theme park faces paying damages and the possible waste of an £18 million asset. Tuesday’s trading update confirmed that such accidents can scare away custom for months.
http://www.ft.com/intl/cms/s/3/b6f77d2c-9783-11e5-95c7-d47aa298f769.html#axzz3swWP4sF9
Lombard:
The Bank of England’s new old buffer: The best ideas bear reinvention, which is what the Bank of England is doing with its “time-varying countercyclical buffer”. Historically, this buffer was a grumpy old Director who admonished risk-taking bankers with tales of “that nasty smash back in ‘73”. But corporate memory gets in the way of short-term profits, so he was pensioned off. Now, the BoE is reinstating him, in the form of an additional capital requirement.
https://next.ft.com/content/8e434216-980b-11e5-95c7-d47aa298f769
Sky Blue thinking: The ability to talk sport with the Boss can be a career advantage. A group featuring China Media Capital is to buy a 13% stake in Manchester City for $400 million. This is the club where football-loving Xi Jinping recently met striker Sergio Aguero.
https://next.ft.com/content/8e434216-980b-11e5-95c7-d47aa298f769
The Daily Telegraph
England cannot build the 300,000 homes a year it needs, warns Dame Kate Barker: England’s housebuilders will not be able to build the homes the country needs, even by 2020, a former Bank of England policymaker has warned.
Mark Zuckerberg to donate 99% of Facebook stock to charity: Facebook Founder Mark Zuckerberg and his wife have said they plan to donate 99% of their shares in the social network to charity.
‘Around 50’ VW workers testify in emissions scandal probe: “Around 50” employees of German auto giant Volkswagen have come forward to testify in the group’s internal probe into a massive pollution-cheating scandal.
Network Rail to set up £4.1 million ‘Rail Reparation Fund’ after London Bridge chaos: Network Rail will spend an extra £4.1 million to improve passenger services instead of paying a £2 million fine that had been threatened by the transport regulator for travel chaos caused by the troubled infrastructure company, particularly at London Bridge station.
Ryanair launches legal action against Google and eDreams: Ryanair has started legal action against internet search giant Google and online travel agent eDreams in what the airline’s combative Boss, Michael O’Leary said was a bid to stop the pair from “deceiving consumers”.
Moneysupermarket Founder Simon Nixon could sell half his stake: The Founder of Moneysupermarket.com could be set for a £115 million payday after revealing he will sell up to half his stake in the price comparison website.
Star Wars and James Bond boost Pinewood profits: Pinewood Studios profits have been bolstered by blockbusters James Bond and the latest Star Wars: The Force Awakens movie, both of which used the group’s Buckinghamshire studio.
The Questor Column:
Gulf Keystone Petroleum remains a sell: Gulf Keystone Petroleum, the Kurdistan-focused oil group, saw its shares slump 10% to a six-and-a-half year low after ongoing concerns over payment for its oil. The London-listed oil producer has seen the value of its shares collapse as its main source of revenue, the Kurdistan Regional Government (KRG), becomes increasingly stretched by fighting a war against Isil and paying its debts. The KRG prime Minister and oil Minister were in London and said that oil groups such as Genel and GKP were paid in November. But Jon Ferrier, Chief Executive of GKP, said they had not received the money. The encouraging news is that the November payment should follow cash already received in September and October. The strains being placed on the KRG are being increased by the tumbling oil price and worsening conflict. GKP slumped to a first-half loss after tax of $77.7 million and had $283 million in unpaid arrears at the end of June. The cash on the balance sheet fell to $64 million at the end of August, down from $234 million in June 2014. The shares have fallen 72% this year and the bonds in Gulf Keystone that are due for repayment in two years time are trading at 33 cents in the $1. We warned investor to exit the shares at 172p at the end of 2013, and again at 109p last year. As the situation deteriorates we recommend taking what you can, however painful. Sell. Gulf Keystone Petroleum at 19¾p -1¾p. Questor says “Sell”.
Merlin shares look expensive as growth slows: Shares in Merlin Entertainments, the Owner of Alton Towers and Legoland parks, are looking awfully expensive as growth slows and customers shun one of its largest U.K. attractions. The immediate problem comes from the Resort Theme Park business that owns Alton Towers, Thorpe Park and Warwick Castle, and accounts for about a quarter of the groups revenue and earnings. The tragic accident on The Smiler ride in June, which resulted in two women having their limbs amputated, has seen trading “significantly below” the same period last year. The Resort Theme Park business is now expected to deliver earnings between £40 million to £45 million, for the full-year to December, a sharp reduction from £87 million last year. The concern is that any return to normal trading could take far longer than expected. The company warned in September that demand was slower in London due to the strength of sterling against the euro, and Hong Kong had been hit by travel restrictions. Elsewhere the business is still good. The Legoland parks enjoyed an “excellent” Hallowe’en period and this managed to offset the weakness in the rest of the business as the division contributes about a third of the groups revenue and earnings. Management said trading was in line with expectations, but that is to be expected as it was just over two months ago in September that guidance was reduced. The risk to equity investors is that it proves tricky to return to growth and if shares moved to 15 times earnings that would be 260p, or a fall of more than 30%. Avoid. Merlin Entertainments at 415p +5.8p. Questor says “Avoid”.
Buy Petra Diamonds as shares jump on bank support: Petra Diamonds shares jumped more than 10% higher as its group of lending banks granted it a covenant holiday, which gives it the breathing space to complete an ambitious expansion plan. Falling diamond prices resulted in a 31% slump in pretax profits last year and there were concerns the miner would breach two tests for acceptable levels of indebtedness when banks reviewed the consolidated earnings before interest, tax, depreciation and amortisation in the period to Dec 31. The group of banks, which includes Absa, FirstRand, IFC and Nedbank, have said they remain supportive of the company’s proposal to grow. The South African diamond miner is due to start exploring new parts of its mines at Cullinan and Finsch from January onwards and these are expected to yield larger and better quality stones more regularly. Petra intends to produce 5 million carats of diamonds a year by 2019. Last year the miner produced 3.2 million carats of diamonds. At the moment Petra is simply filtering through old stockpiles to keep revenue ticking over, but this ore contains lower quality diamonds. The company reported revenue down 10% and pretax profits at $85 million (£55 million) in the year to June. The company’s balance sheet has also been strained by the expansion programme with net debts rising to $172 million at the end of June from $125 million at the same stage a year earlier. For long-term investors, we think the increase in production from next year and return to positive cash flow make this an interesting opportunity, we upgrade to a buy. Petra Diamonds at 64.15p +5.9p. Questor says “Buy”.
The Guardian
Stress tests: Bank of England flags up buy-to-let concerns: The Bank of England is scrutinising the terms under which mortgages are being granted to buy-to-let landlords as it decides whether to take action to cool the fast-growing market.
George Osborne denies net immigration rise needed to achieve budget surplus: George Osborne came under fire from MPs on Tuesday for refusing to admit that he plans to rely on a strong rise in net immigration to achieve a budget surplus at the end of the parliament.
Budget 2016 set for 16 March next year: George Osborne will stage his first full budget of the parliament on 16 March next year as he seeks to steer the public finances into the black by 2020.
George Osborne’s property-owning drive criticised by housing expert: George Osborne’s drive to boost homeownership has come under fire from a former member of the Bank of England’s monetary policy committee.
Kingfisher swoops on solar power to reduce reliance on National Grid: Kingfisher, the Owner of B&Q and Screwfix, is to put solar panels on its distribution centres and some stores as part of a £50 million investment to cut its reliance on the National Grid.
Sainsbury’s hands Derbyshire town £1 million to tackle food waste: Swadlincote, a market town in south Derbyshire, has won £1 million from Sainsbury’s to invest in finding ways to halve household food waste.
Daily Mail
Openreach looks set to be prized from BT’s grasp following concerns it gives them an unfair advantage in the industry: Ofcom has warned that BT could be split from its subsidiary which builds the infrastructure connecting people to the internet.
Nearly half of major financial firms now concerned about growing cyber-attack threat, Bank of England report shows: There has been a sharp increase in worry from financial firms about the growing threat of cyber-attacks, a Bank of England report shows this morning.
Struggling mobile payments specialist Monitise still hit by tumult at the top: The management merry-go-round at the top of struggling mobile payments specialist Monitise continued as Chief financial officer Brad Petzer announced he was leaving.
Carney warns a global slowdown could hit U.K. recovery as factory output tumbles in U.S. and China and Brazil’s recession deepens: Mark Carney has warned that the global environment is ‘unforgiving’ amid fears a world-wide slowdown could knock the U.K. recovery off course.
Home Retail shares soar on takeover buzz again amid report turnaround specialist Nicholas Marshall is circling Homebase: Shares in Homebase-Owner Home Retail Group jumped higher on reports that private equity and retail turnaround specialist, Nicholas Marshall has been eyeing the home improvement chain.
Alton Towers trading remains ‘significantly below’ 2014 levels in wake of June roller-coaster crash: Trading at Alton Towers remains ‘significantly below’ levels seen a year earlier following a roller- coaster crash in June which left four teenagers seriously injured.
BHP Billiton faces multi-billion-pound fine after fatal Brazilian mine disaster earlier this month: BHP Billiton faces a multi-billion-pound fine after the fatal Brazilian mine disaster earlier this month.
Daily Express
Banks’ £10 billion for rainy day: Britain’s major banks may have to hold billions more pounds in a new buffer against a future economic downturn despite all passing the latest Bank of England stress test.
Chinese companies invest £265 million into Manchester City Football Club: Chinese companies have invested £265 million in the Owners of Manchester City. The businesses have invested $400 to take a 13% share in the City Football Group (CFG), in a deal announced.
Northern and Shell denies Mirror Deal: Richard Desmond, Owner and Chairman of Northern and Shell plc, has categorically refuted rumours of a deal between his group and Mirror Group Newspapers despite remarks in the press made by Mirror CEO Simon Fox.
The Scottish Herald
Scottish engineering sector sees output volumes, orders, export business and staffing fall: The Scottish engineering sector has suffered sharp falls in order intake, output volumes, export business, and staffing in the latest quarter, a survey has revealed.
Tidal power firm Atlantis Resources adds to management team: Tidal power business Atlantis Energy has beefed up its senior management team. The AIM-listed company, which recently moved its headquarters from Singapore to Edinburgh, said Stephen Ward will join its recently formed Executive management group as Director of power generation.
RSM sets sights on West: RSM, the former Baker Tilly, which has recently opened a new Glasgow office in Wellington Street, grew U.K. revenues by a quarter to £292 million last year, helped by the 2013 acquisition of Tenon.
Iomart paying up to £11 million for UnitedCommunications: Cloud computing and internet hosting firm Iomart has continued its strategy to expand through acquisition by paying up to £11 million for an English company.
The Scotsman
HS2 offers a light in tunnel for Scots engineering: Scottish engineering firms are continuing to suffer from the impact of the depressed oil price, with flat order books and both output and staffing levels falling, according to an industry report.
RBS rated weak in Bank of England stress test: Investors in Britain’s banks breathed a sigh of relief as they all passed the Bank of England’s annual capital “stress tests” against a “severe” theoretical global economic downturn.
Collagen Solutions eyes China market as sales rise: Scottish life sciences company Collagen Solutions said it was looking at opportunities to move into the Chinese market as it posted a major rise in sales and narrowed losses.
Retail prices slide for record 31st month: Shop prices slumped by a record level last month, driven down by the supermarket price war and fierce competition across the rest of the high street, according to the latest British Retail Consortium/Nielsen Shop Price Index.
U.K. manufacturing growth slows sharply in November: U.K. manufacturing growth slowed sharply in November, and staff numbers in the sector fell slightly, a key survey has shown.
City A.M.
CVC set to buy up almost half of the RAC: CVC Capital Partners, the largest shareholder in Formula One, will reportedly announce the purchase of almost 50% of breakdown company RAC later.
Record M&A boom could lead to $2 trillion in cost savings after $4.9 trillion of deals in two years: The global boom in M&A could result in nearly $2 trillion (£1.33 trillion) in savings for companies, according to data from Deloitte.
Topps Tiles profits rise by a fifth as homeowners go on shopping spree: Topps Tiles said profits jumped by a fifth last year, thanks to a surge in people doing up their homes and the retailer’s own efforts to modernise its brand and its stores.
Insurance company Axa ventures further into India, increasing its stake in its joint venture: Axa has revealed that it is increasing its stake in its Indian joint venture companies. The insurer announced that it would be raising its holding in the life and general insurance ventures, Bharti AXA Life Insurance Co and Bharti AXA General Insurance Co, from 26% to 49% in a bid to further its operations in the country.
St Modwen on track to hit profit targets thanks to New Covent Garden Market boost and regional revival: St Modwen said it is on track hit full-year profit forecasts, spurred on the by ongoing recovery in the regions, strong investor demand, and a massive valuation gain from its New Covent Garden market scheme.
