The Times
‘Damaged’ RBS slashes fees to woo customers: Royal Bank of Scotland is to halve unauthorised overdraft fees for thousands of commercial customers as it attempts to clean up its reputation after accusations that it destroyed viable businesses.
Third Greek bailout not a done deal, says Berlin: Germany and France said that they wanted further privatisation commitments before accepting the Greek bailout package at an emergency eurozone meeting.
Global markets rally as Beijing pledges to halt runaway yuan: International share and currency markets stabilised as China said that it would not allow a drastic depreciation of the yuan, after two days of plunging prices.
Gold sales fell to six-year low by end of June: Demand for gold hit a six-year low in the second quarter as stock markets lured back investors, according to the World Gold Council.
Exploration augurs well for Ophir Oil: Ophir Oil is pushing into early stage exploration despite scaling back its drilling programme in response to the collapse in crude prices.
Householders are safer than ever from bailiffs’ clutches: Householders are safer from the bailiffs than ever, according to latest data.
The Independent
Deutsche Bank shamed again as employees are charged with fraud: The shredding of the reputation of Germany’s biggest bank has continued as seven Deutsche Bank employees were charged in Frankfurt with evading VAT in carbon market trades.
London brokering firms used in newswire cyber hacking case: U.K. share brokers were allegedly used by a cyber-hacking and insider trading ring to make more than $20 million in illegal profits, court documents reveal.
Glencore takes $790 million hit in Africa as oil slumps: Falling oil prices have forced the commodities giant Glencore to take a $790 million (£505 million) write-down on the value of a Chad-focused exploration company it bought last year.
Financial Times
Fast-track fracking taps well of northern anger: Government attempts to fast-track Britain’s shale gas revolution face formidable opposition among the rolling hills of North Yorkshire, the next battleground in the fight over “fracking”.
Google Alphabet’s .xyz domain boosts Aim-listed CentralNic: Shares in a little-known London-based business have surged this week on the back of Google’s decision to use the web address www.abc.xyz for its new parent company.
‘Voracious’ demand boosts Derwent London: Tech Belt landlord Derwent London has seen surging growth in both rents and the value of its property portfolio, thanks to “strong” demand from corporate occupiers and “voracious” demand from investors.
Grainger to sell German business as activist circles: Grainger, Britain’s largest listed residential landlord, is to sell its operations in Germany and shake up management in its efforts to fend off an activist investment fund.
U.S. oil futures drop to lowest since 2009: U.S. oil futures slipped to their lowest price since the financial crisis as a refinery glitch threatened to add to a persistent glut of crude.
BP traders rigged gas market, says judge: BP faces the prospect of fresh regulatory fines after a judge ruled that its energy traders rigged a U.S. natural gas market in the aftermath of a 2008 hurricane.
Goldman buys $16 billion deposit book from GE: Goldman Sachs is buying a $16 billion deposit book from General Electric, in a move that eases the kind of liquidity strains that sunk Lehman Brothers and Bear Stearns while opening up a potential new customer base.
Shares in China aluminium group hit despite inflated sales denial: Shares in China Zhongwang Holdings slumped 12% on Thursday after trading in the world’s second-largest producer of aluminium products resumed for the first time since it denied allegations of inflated sales in a short sellers’ report.
James Packer to step down as Crown Chairman: Billionaire casino Boss James Packer has stepped down as Chairman of Crown Resorts, the publicly listed company he has built over a decade into one of Australia’s largest gambling and entertainment groups.
Quincey’s promotion shakes up Coca-Cola Chief Executive race: Coca-Cola has promoted James Quincey to second-in-command at the world’s largest beverage company, in a move that analysts believe makes him the frontrunner to succeed Muhtar Kent, Chairman and Chief Executive.
Smartphone maker HTC to cut 15% of staff: The ailing Taiwanese smartphone maker HTC has revealed plans to cut 15% of its workforce soon after warning of an unexpectedly large third-quarter loss, as it struggles to reverse a precipitous decline in market share.
SoftBank boosts Sprint stake to underscore commitment: SoftBank has spent $87 million to buy additional shares in Sprint in another affirmation of Founder Masayoshi Son’s commitment to his struggling U.S. wireless carrier.
AP Møller-Maersk cuts global trade growth forecast: AP Møller-Maersk cut its forecast for global trade growth and abandoned a slew of medium-term profit forecasts but the Danish conglomerate still posted higher-than-expected earnings.
Lex:
United Internet: paying for Access: United Internet, the German internet service provider and mobile network operator, does more than connect households to the web. The ISP has made a number of acquisitions across Europe, the biggest of which is a web hosting business called 1&1. Since announcing the plan in mid-July the shares have bounced 16%, after stumbling earlier this summer. Thursday’s interim results did nothing to stop the upward charge. United’s valuation probably reflects hopes of a good price (eventually) for the web-hosting business, not to mention any other potential profits on investments such as Drillisch. The company’s enterprise value is now 13 times its forecast earnings before interest, tax depreciation and amortisation. That is not too far off the historical high. A previous discount to rival Kabel Deutschland has disappeared. The success of Applications is behind that improvement. The struggles at Access could drag the shares back down but, then, that is the problem with networks — they are only as strong as the weakest link.
China economy: down in the data mine: China’s announcement of a looser renminbi peg came only a few days after a downbeat report on exports. So when the renminbi news hit, there was a common shocked response: China’s economy must be much weaker than we thought. Why is it even possible to regard the peg as an economic indicator? The conventional answer is simple and cynical: you can’t trust the official economic numbers, so you have little choice but to read into official pronouncements and actions. China’s official GDP growth figure does look suspiciously stable. And plenty of other official figures have been telling a scary story for some months now. Rail freight volumes have been falling, by at least one official measure, since early last year. These data series are all volatile and, of course, are much easier to read retrospectively. All the same, many of them tell a similar story — which makes one wonder why the news of the last week has constituted a shock. Optimistic investors have looked to China for so long that it may have become less stressful to dismiss weak (and unusually unequivocal) data than be cautioned by it — the latest instance of a timeless phenomenon.
Nestlé: noodle in a haystack: Nestlé was slow to respond to allegations in India that its Maggi noodles contained excessive amounts of lead. It is now embroiled in an unseemly argument with regulators there over testing methodology. The Swiss consumer goods group may have a point; tests in other countries have shown the noodles to be fine, and a court in India on Thursday overturned an earlier ruling banning the company from selling them. Still, the affair has resulted in a costly product recall and lots of bad publicity, and it will affect performance so long as the noodles remain off the shelves. Shares in Nestlé’s locally listed subsidiary have already recovered around half of the 33% drop they initially sustained (helped by the diplomatic decision to install an Indian national as managing Director, replacing a Frenchman). The Maggi affair did not stop the company beating forecasts for revenue growth, or reaffirming its guidance for the full year. Such resilience is precisely the attraction of large consumer goods conglomerates to investors. A more recent push into faster-growing health markets aims to do likewise. Non-Swiss shareholders (two-thirds of the total) have received a bonus from the strong franc. Nestlé’s crisis management may be questionable, but there appears little wrong with its capital allocation.
Lombard:
Orcward squad: JRR Tolkien depicted Shire folk as cuddly little hobbits with furry feet. But the Boss of Irish drugs group Shire, Flemming Ornskov, must look more like a dark rider to Baxalta, the U.S. rival he aspires to buy for $30 billion. As for long fund elves, some are likely to quit the battlefield, to be replaced by the orcs of event-driven hedge fund management. Investors are mulling it over. Shire shares have dropped 6% while Baxalta’s have jumped 10%. Will Shire go higher than its $45 per share opening shot? Perhaps only if the U.S. haemophilia specialist lets Mr Ornskov peek at its books. Baxter could be tempted to follow suit. The U.S. company still holds 19% of Baxalta. U.S. tax authorities would hit the erstwhile parent with a multibillion dollar tax claim if they decided a demerger followed by a takeover was an avoidance ruse. Selling to the hedgie would be one way for Baxter to reduce that risk.
Grecian earns: Spoof rock band Spinal Tap accidentally ordered a Stonehenge stage prop that was 18 inches rather than 18 feet high. Muddling metrics also result in inaccurate risk pricing. Shares in Coca-Cola HBC have bounced around this year partly in response to the possibility of Grexit. The stock of travel group Tui, which has Greek linkage too, was up about the same amount. Tui said a slew of cancellations of Greek holidays had been shortlived. The real issue was June’s Tunisian beach massacre. The group rightly stressed that the €35 million-€40 million overhead was negligible compared with human costs. Shares rose in response to a guarantee that group operating profits would increase 12.5-15%. As for Stonehenge, Lombard once made the mistake of telling a visiting Greek he really ought to see the Neolithic site. “The national treasures I’m keenest to see here are the Parthenon friezes,” he said, acidly. These, controversially, are in the British Museum.
The Daily Telegraph
Indian court overturns government ban on Nestle’s Maggi noodles: An Indian court granted relief to Nestle in a case that has pitted the nation’s food regulator against the Swiss giant over the quality of its iconic Maggi noodles.
Repossessions fall to historic low as home Owners keep on top of their mortgages: Repossessions fell to the lowest level ever as more families and landlords stayed on top of their mortgage payments in the second quarter of the year.
Coca-Cola HBC shares fizz higher in record leap: Shares in Coca-Cola HBC enjoyed their biggest one-day leap since the bottling company switched its stock market listing to London two years ago, after the fizzy drinks business surprised investors with results that were much stronger than the market had been expecting.
BT’s £12.5 billion takeover of EE boosted by Ofcom: BT has received a boost to its £12.5 billion takeover of EE following a report on the deal by the communications regulator.
Birdseye Owner Nomad to create frozen food giant with $781 million Findus deal: Nomad Foods, the acquisition vehicle set up by entrepreneurs Martin E. Franklin and Noam Gottesman to target acquisitions in the food industry, is to buy the European operations of Findus Group for £500 million, as part of its ambition to create a global consumer foods company.
Buoyant U.K. jobs market boosts profits at recruiter Michael Page: Rising demand for staff and a shortage of suitable candidates in the U.K. job market have been a boon for recruiter Michael Page.
Candy Crush maker’s shares hit by forecast of softer sales: Investors lost their taste for the company behind the Candy Crush Saga gaming phenomenon on Thursday after the firm signalled slower-than-expected sales in the coming months, as turnover from its flagship game continues to slow.
HBO signs up Sesame Street in a five-year deal: The network announced on Thursday a five-year deal with the non-profit educational group behind “Sesame Street” to carry new seasons of the popular children’s show.
The Questor Column:
Questor’s worst share tip makes progress: Balfour Beatty has something of a problem. While it would like to draw a line under loss-making contracts and reassure investors that the turnaround is on track, in the notoriously tricky world of construction it simply can’t offer those assurances. From the home kitchen extension to the multi-billion-pound national infrastructure project, there is always an element of finger in the air when working out how much the materials, manpower and expertise will cost. Balfour Beatty has become something of a poster child for the sector’s woes. The previous management team has been culled following a string of profit warnings, Balfour was nearly taken over by rival Carillion last year and the dividend was axed in March this year. Balfour has plenty of qualities to ride out the storm. Under Mr Quinn a focus on cash led to an inflow of £362 million in the first half, leaving a £260 million cash pile on the balance sheet at June 26. The business is focusing on cutting costs and made £25 million in savings during the first six months with a total target of £100 million by the end of next year. Mr Quinn is tentatively optimistic on the outlook. There are some big projects on the horizon such as HS2, British nuclear and tenders for a potential new runway at Heathrow. The order book is stable, down slightly from £10.4 billion to £10.3 billion at the end of June. Balfour Beatty has been one of Questor’s worst share tips, having recommended them at 273p in October 2013 and again at 293.5p January 2014, on early signs of a recovery it has been a rollercoaster ride. We’ve learnt our lesson and until trading is solidly profitable and dividends return it remains a hold. Balfour Beatty at 261.6p+9.9p. Questor says “Hold”
The Guardian
Asda raises price paid to dairy farmer as value of milk sales plummets: Asda has caved in to pressure from dairy farmers and raised the price it pays its milk supplier, as figures show that sales of fresh milk in Britain are on course to hit their lowest level by value in eight years.
Greece creditors raise ‘serious concerns’ about spiralling debt levels: Greece’s European creditors have underlined the temporary nature of the country’s surprise return to growth by warning that they have “serious concerns” about the spiralling debts of the Eurozone’s weakest member.
China plays down devaluation fears as yuan cut for third straight day: China’s central bank sought on Thursday to allay fears it would engineer a continued fall in the yuan in a move that brought calm to global markets rocked this week by a shock series of devaluations.
Npower profits plunge 60% amid ongoing billing problems: Profits at Npower have tumbled 60% as it struggles with billing problems which have sent customer complaints soaring.
Daily Mail
U.K. theme park technology firm Accesso signs deal with Australia’s Dreamworld: British theme park technology group Accesso has extended its reach thanks to a major deal with one of Australia’s largest amusement parks.
Firm behind Birds Eye fish fingers bites off a £500 million chunk of Findus: The firm behind Birds Eye fish fingers has bitten off a £500 million chunk of the Findus food empire. London-based Nomad has bought the continental European operations of the frozen food maker from a private equity consortium that included U.K. based Lion Capital.
Trading colossus Glencore takes a £1 billion hit after slump in global commodity prices: The slump in global commodity prices has forced Glencore into taking a £1billion hit to its operations and spending plans.
The Scottish Herald
Aegon still seeing rise in pension drawdown but no-one ‘buying Ferraris’: Aegon U.K. is seeing growing interest in pension drawdown since new rules came into effect but the majority of people withdrawing cash pots are those with less than £10,000.
North Sea specialist wins more time to complete East of Shetland deal: Independent Oil & Gas has won more time to complete an acquisition East of Shetland after its expansion plans were thrown into question by the renewed fall in the crude price in recent weeks.
Ithaca Energy highlights continued potential to make money in North Sea: North Sea-focused Ithaca Energy has said acquisitions are still on the company’s agenda after it generated $160 million (£100 million) cash from operations net of costs in the first half in spite of the crude price plunge.
Scots exports take Chinese currency moves in stride: Scottish food and drink exporters have signalled that they are taking this week’s Chinese currency devaluation in their stride.
London & Scottish Investments buys sites from Tesco: London & Scottish Investments has acquired 14 sites from Tesco which the retail giant previously earmarked for store development in Scotland.
Aberdeen property sales hit three-year high: The value of commercial property transactions in Aberdeen hit a three year-high in the second quarter of 2015, figures from the Registers of Scotland have found.
The Scotsman
Cineworld profits soar on string of blockbusters: Blockbuster Star Wars and James Bond releases should help Cineworld beat full year targets after the group posted a rise of more than a fifth in profits for the first half of 2015.
Aegon Chief upbeat as first-half profits rise: Life and pensions firm Aegon U.K. has overcome a decline in annuity sales to deliver a rise in first-half earnings, boosted by a surge in business for its online platform.
Michael Page to hand £50 million to investors: Shareholders in Michael Page are in line for a £50 million windfall after the recruitment firm said strong demand from U.K. job hunters helped boost its earnings in the first half.
Biotech outfit Synpromics gets £2.1 million cash injection: An Edinburgh biotech firm that is helping to find cures for haemophilia and hereditary blindness has secured a £2.1 million investment to develop its gene therapies.
Tui faces £32 million cost from Tunisia terror attack: Holiday operator Tui has said that the terrorist massacre in Tunisia will hit its earnings by up to £32 million.
City A.M.
King shares slip as games firm reports big loss: Shares in King Digital Entertainment fell by more than eight% in extended trading after the creator of Candy Crush Saga reported a 28% drop in quarterly profit.
Poundland’s Bosses fail to get bonuses: Bosses at U.K. discount retailer Poundland did not receive a bonus for 2015, despite both sales and profits at the company improving last year.
Tesla unveils $500 million extra stock offering: Electric car manufacturer Tesla has announced that it intends to offer $500 million (£320 million) of additional shares of common stock in an underwritten registered public offering.
Pretax profit lifts Thyssen to another level: Thyssenkrupp announced an improvement of pretax profit of 33% for the first three quarters, at €1.26 million (£900,000), as it reaffirmed its forecast for its full year results.
Unilever opens $50,000 search for startup innovations with Next Big Thing competition: Unilever is on the hunt for fresh innovations, as the company is hoping to find new startups to team up with through its “Next Big Thing” competition.
