The Times
Norwegian to offer cut-price Logan run with flights for £179: Norwegian, the low-cost airline run by Bjorn Kjos, Norway’s answer to Sir Richard Branson (less hair but more charisma), has announced that next spring it will be launching £179 one-way flights between Gatwick and Boston’s Logan airport.
Sterling on a high after unexpected inflation rise: The pound jumped to a seven-year high after new figures showed core inflation rising at a much faster pace than predicted.
Goldman can bank on British cash in crisis: Goldman Sachs will be able to ask the Bank of England for funding in a crisis after the American firm won approval to access the U.K. central bank’s liquidity scheme as an emergency back-stop.
Compensation on the cards after mis-selling, says FCA: Two million people who were mis-sold card security by high street banks have been given until March to make a claim for compensation, with many due hundreds of pounds.
Victims of alleged £50 million fraud fight to claw back cash: The victims of an alleged multimillion- pound fraud at the heart of the City of London have launched a class action to claw back money from the banks that held the funds.
Wood cuts 5,000 jobs as oil prices bite: Wood Group has announced plans to cut 5,000 jobs in the latest sign of the damage that lower oil prices are inflicting on the industry.
Swathes of the English countryside are licensed for fast-track fracking: The government has fired the starting gun for a new wave of fracking across 1,000 square miles of English countryside, with the awarding of dozens of drilling licences.
Millionaires’ row playing its part in house price rise: Average house prices rose £4,300 in Scotland in June as sales of million-pound properties increased after a slump that followed the introduction of a new tax.
NBCUniversal takes bite of BuzzFeed for $200 million: BuzzFeed, the social news site, has secured $200 million from NBCUniversal, which it hopes to use to extend its reach to television and film. The investment values BuzzFeed at about $1.5 billion, nearly double its valuation a year ago.
The Independent
Green fury after Shell is given go-ahead for Arctic drilling: Shell has been granted final permission by the U.S. regulatory authorities to begin exploratory drilling for oil and gas beneath the Arctic seabed. The decision by the Bureau of Safety and Environmental Enforcement (BSEE) to allow the multinational to drill off the Alaskan coast prompted environmentalists to accuse President Barack Obama of “double-speak” over his calls to replace fossil fuels with renewable energy sources.
Scandal-hit American Apparel seeks saviour as sales fall 17%: The troubled fashion retailer American Apparel has revealed it may be forced to seek bankruptcy protection before the end of the year.
The majority of U.K. graduates are being forced into non-graduate work, says study: The majority of U.K. graduates are being forced into jobs which do not need their talents, according to a newly-published study.
Financial Times
RBS agrees to sell Luxembourg fund business: Royal Bank of Scotland has struck a deal to sell its Luxembourg fund arm to private equity group Blackfin Capital Partners as part of a restructuring aimed at focusing on U.K. retail and commercial banking.
Scottish Power to close Longannet plant due to taxes and charges: Scottish Power has announced it will close the huge Longannet power station next March, saying high carbon taxes and transmission charges mean it is no longer economic to generate electricity from coal or gas in Scotland.
Promontory settles over StanChart probe: Promontory, an influential financial consulting group, has admitted that its actions fell short of New York state standards when it investigated possible sanctions violations by the U.K. bank Standard Chartered.
BNY Mellon agrees to pay $15 million to settle SEC internships case: Bank of New York Mellon has agreed to pay almost $15 million to settle allegations that it tried to “corruptly influence” foreign government officials by offering internships to family members with links to a Middle Eastern sovereign wealth fund.
Target to pay $67 million over Visa data breach: Target has reached a $67 million agreement with Visa over a massive breach of customers’ payment data during the 2013 holiday shopping season that tarnished its reputation and raised serious questions about the company’s data security systems.
Scandal-hit Toshiba to record loss after accounting malpractice: Toshiba has said it will record a net loss for last year because of $1 billion in impairment charges for its nuclear and semiconductor businesses that have been incurred following an investigation into accounting malpractice.
Walmart slashes earnings outlook: Walmart slashed its full year earnings guidance on Tuesday as the world’s largest retailer by sales said it expected staffing costs to rise more than expected.
India’s Snapdeal raises $500 million from investors led by Alibaba: Snapdeal, one of the largest ecommerce marketplaces in India, has raised $500 million from investors led by China’s Alibaba, Taiwan’s Foxconn, and Japan’s SoftBank, as it steps up its expansion.
Fonterra Chief bullish on dairy prices: The Chief of Fonterra, the world’s biggest milk supplier, has issued a bullish outlook on the struggling global dairy industry, amid signs that farmers in New Zealand and elsewhere were cutting production in response to prices hitting 13-year lows.
Airbnb targets booming China demand: Airbnb has formed a partnership with China Broadband Capital and Sequoia China to help the apartment-sharing app expand into the Chinese market.
Canada’s Brookfield clinches A$8.9 billion Asciano takeover: Canada’s Brookfield is to acquire Asciano in a A$8.9 billion ($6.6 billion) deal that would mark the largest takeover of an Australian company since 2011.
Lex:
Walmart: boxing clever: Walmart is not following in the footsteps of Sears any time soon, but its second-quarter results, released on Tuesday, will not silence the persistent questions about its business model. Same-store sales grew 1.5%, a better result than a year ago, but margins are under pressure and it cut its full year profit target. Earnings per share are set to fall for the second year in a row. The shares fell 3% and are off 15 this year. It is tempting to think that management is choosing to sacrifice earnings growth for growth in its core U.S. business. A more compelling interpretation: the U.S. business needed more investment (sacrificing some margin) if it was to stay upright. Same-store sales in the U.S. have been weak, almost without interruption, for more than half a decade – during which other corners of U.S. retail have grown nicely. And adding new stores, even fast-growing smaller-format outlets, cannot offset soft store-level demand forever. Better stores with better staff were needed because U.S. consumers had become sufficiently indifferent to Walmart to threaten the company’s financial model – in which operating leverage generates cash that is then used to keep an edge in price.
Macy’s: rags and riches: The U.S.’s big rag sellers sort neatly into two buckets. One group is increasing sales and has provided shareholders with solid returns over the past year but is disconcertingly expensive at 20 times earnings. Here sit TJX, L Brands, Ross Stores and Nordstrom. The other group has stagnant sales, generates lots of cash and can be had for a mere 13 times earnings but has given shareholders a hard ride recently: Kohl’s, Gap and Macy’s. Macy’s sells mostly clothes and while U.S. commerce department data show this category is holding up in the age of Amazon, Macy’s is a department store — a subsector in long-term, fits-and-starts decline. Management has proven skill with new formats and online, and Macy’s has fared worlds better than JC Penney or Sears. Yet fundamental shifts in the way people shop may, at last, have caught up with the company’s core business. The retailer is responding by adding more non-department store sales channels in the U.S. and abroad. Macy’s, then, is a bet on a resurgence by value stocks — and that good management can rework a creaking retail business model that is in danger of slipping into decline.
Lindt & Sprüngli: chocoholics: Welcome to the moreish world of Swiss chocolatier Lindt & Sprüngli. Its first-half net income beat expectations despite higher raw material costs and a strong franc, sending its share price to its highest in more than 20 years. Lindt’s sales figures had been trailed last month: a 17% rise on the first-time inclusion of U.S. chocolate maker Russell Stover, or 9% organically. On Tuesday it was the 18% rise in earnings before interest and tax to SFr91 million that hit the sweet spot, even after the franc had shaved 11 percentage points off the Ebit margin. Lindt’s response has paid off. Sales are up and its growing global network of stores widens its appeal. True, its Ebit margin was just 6% at the half year. This is a seasonal business. Half of fixed costs are incurred by the end of June, and less than two-fifths of annual sales. Franc permitting, it could still regain its recent annual 14% margin run rate by year-end. Lindt trades on 33 times next year’s earnings — more like a luxury goods company (its multiple is higher than that of Hermès). If that looks like a chocolate high (for a return on equity of just 13%) consider that it is also a low-risk, steady earner that has not changed strategy for more than 15 years. That has served it well so far.
Lombard:
Laconic tonic: Wood Group Chief Executive Bob Keiller compares the fighting spirit of staff to that of the 300 Spartans who held back Persian hordes at Thermopylae in 480BC. This was not a great motivational analogy — the Spartans all died. But it aptly dramatises the challenges facing the oilfield services group. First-half pretax profits from continuing operations plunged 31% to £160.6 million in response to an oil price slump. Mr Keiller has done better, cutting Wood’s headcount by 13% and reducing wage rates for remaining hard-hatted hoplites. It is a reminder, as a mini-reporting season for oil services groups commences, that, seen reductively, these are just contract labour suppliers. They are exposed to big cuts in revenues — Wood’s fell 19.3% — when low prices force oil majors to scale back projects. But they can soften the impact by flexing costs. Underlying earnings were only 7.4% lighter. Mr Keiller, who it is hard to imagine in leather shorts, is sticking to a pledge for double digit dividend increases, even though explorer Cairn is warning of a new oil environment where prices stay “lower for longer”. Cash generation is healthy, so Wood’s promise-keeping is hardly on a par with that of the Spartans. When told Persian arrows would blot out the sun, they replied laconically: “Then we will fight in the shade.”
Hubbub: The ability of Google technology to adapt in ways that irritate supposed beneficiaries is one. Lombard has experienced this via a Gmail account that the FT helpdesk believes has begun autonomously binning correspondence from sources it disapproves of. These include rating agency Moody’s, which is inconvenient, and the editor of the FT, which could be career limiting. Google’s OnHub is meant to interface with internet-enabled home appliances. A WiFi router with access to a single Owner’s online dating records could meanwhile commandeer his driverless car to ensure he never gets to a tryst with the woman it has decided “just isn’t right for him”.
The Daily Telegraph
Kuwait eyes consortium bid for London City Airport: One of the world’s biggest sovereign wealth funds is part of a consortium that is plotting a bid for London City Airport, which has been valued at £2 billion.
Greece sells airports to Germans as Bundestag prepares for day of reckoning: The Greek government has rowed back on a promise to halt the fire sales of the country’s strategic assets by approving the sale of its airports to a German company.
U.S. activist ups Glencore stake to £1 billion on eve of results: One of America’s most influential activist investors has raised its stake in FTSE 100 mining giant Glencore on the eve of results that are expected to show sharply lower profits as a result of tumbling commodity prices.
Savers get a boost as banks hike rates to snare deposits: Competition for savers’ cash is driving up interest rates, with the payout on 172 different accounts having increased since the start of July.
Frontman for Greybull’s Morrisons convenience stores bid revealed: A veteran of the convenience retail sector has emerged as the frontman for a bid to gain control of Morrisons’ smaller stores.
Russia masks unemployment with Soviet-era tactics: Russia is in the clutches of an economic crisis. Domestic demand is waning, the currency has collapsed and sanctions over Ukraine are biting hard.
Airbus’ long-range jet puts 19-hour non-stop flight back on the radar: Airbus’ airliner unit is working on a new variant of its A350-900 wide-body that would allow Singapore Airlines to restore non-stop U.S. flights and regain the record for the world’s longest airline sector.
The Guardian
New China stock market plunge prompts global jitters: China’s Shanghai Composite Index plunged more than 6% in its biggest drop in three weeks, amid fears that the recent change in exchange rate policy may accelerate flows of capital out of China.
Global economy on course for muted growth this year and next, says Moody’s: The global economy is on course for muted growth this year and next as it faces risks from a slowdown in China, the prospect of higher interest rates in the U.S. and the lingering threat of a Greek exit from the euro, according to the latest forecasts from Moody’s.
German politicians return to Berlin for key Greek bailout vote: For the second time this summer, German politicians have been forced to interrupt their holidays and fly back to Berlin for a key vote on bailing out Greece.
U.K. inflation rise fuels debate over higher interest rates: Britain’s inflation rate ticked higher last month, heating up the debate over when Bank of England (BoE) policymakers will start raising interest rates.
1,000 sq miles of England to be opened up for fracking: Large areas of Yorkshire, the north-west and the east Midlands are to be opened up to fracking after the government announced it will offer a fresh round of licences for oil and gas exploration.
Daily Mail
Co-op set to abandon efforts to claw back £31,000 severance payment handed to disgraced Paul Flowers: The Co-operative Group is on the verge of abandoning efforts to recoup a £31,000 severance payment handed to Paul Flowers, the disgraced former methodist Minister who ran its banking arm.
M&S top team hit by fresh turmoil as key Director announces she’s going on maternity leave: The senior team at embattled Marks & Spencer was plunged into fresh upheaval after a key Director announced she would be on maternity leave this autumn and over the crucial Christmas trading period.
Brompton wheels over to new site to cope with increased demand for its iconic folding bikes: Brompton is moving to a new factory as increased demand leaves it struggling to cope in its current facilities.
City watchdog drops its Quindell probe to make way for the Serious Fraud Office’s investigation: The City watchdog has dropped its probe into Quindell after the more powerful Serious Fraud Office began investigating the company.
Hillary Clinton scuppers Shell’s plan to drill for oil in the Arctic: Royal Dutch Shell’s Arctic ambitions have sparked a political row in the U.S. after Presidential candidate Hillary Clinton opposed its plans.
Homes up £12,000 in a year as lack of property for sale pushes up prices – and agent forecasts an 18% rise by 2019: House prices rose by £1,000 a month over the past year with the East of England recording the biggest gains, according to new official figures.
Daily Express
Skylight maker Sunsquare leads flat roof revolution: The sky’s the limit for manufacturer Sunsquare as it opens up new markets with cutting edge windows for flat roofs, an expanding sector as developers search for natural light and space.
The clock is ticking for PPI claims: MoneySavingExpert.com, the financial website, is urgently warning people to check if they are owed PPI money worth thousands amid rumours that City regulator the Financial Conduct Authority (FCA) is finally considering imposing a deadline on claims.
The Scottish Herald
Retail sales weaker in Scotland again as food category turns in dismal performance: The value of Scottish retail sales in July was down sharply on the same month of last year, as the food category turned in another dismal performance, the latest industry figures reveal.
Persimmon hikes profits as housing market heats up: Persimmon has hiked first-half profits by nearly one-third to £273 million as it became the latest housebuilder to underline the buoyant conditions in the U.K. housing market.
Hammerson aims to expand Union Square: Hammerson, the listed shopping mall specialist, has signalled its ambition to spend £200 million extending its Union Square development in Aberdeen.
Royal London enjoying pensions revolution but warns of risks: Leading insurer Royal London has warned that further radical changes to pensions may be tempting to the Treasury would but be damaging to long-term savings in the U.K..
The Scotsman
Menzies Boss confident despite profits fall: Aviation baggage handling and newspaper distribution group John Menzies saw profits tumble in a “challenging” first half, but the firm maintained it was “building momentum”.
Nationwide Chief warns over Osborne’s tax hit: The Boss of Nationwide building society has hit out at the Chancellor’s decision to impose a tax surcharge on banks in his summer Budget, claiming it would cost the business £300 million over the next five years.
Cairn Energy gets go ahead for African prospect: Cairn Energy, the Edinburgh oil and gas explorer, expects to start drilling its major prospect off Senegal later this year after getting the green light from government officials to start evaluation work.
Asda suffers worst sales for 50 years: Supermarket chain Asda has suffered the worst sales performance in its 50-year history with a 4.7% slide in second-quarter takings.
Engineer lands Queensferry Crossing contract: Shepherd Engineering Services has won a ‘multi-million’ pound contract to deliver mechanical, electrical and plumbing services to the £1.4 billion Queensferry Crossing currently being built over the Firth of Forth.
City A.M.
Mayfair sees fastest rent price growth: Mayfair is leading the way in prime central London rental price growth, a lettings agent said.
Fitch upgrades Greece’s long-term currency rating to CCC: Fitch has become more optimistic about Greece’s ability to pay off its debt.
Calais migrant crisis: U.K. and France to sign deal for increased security: Home Secretary Theresa May will travel to Calais on Thursday to sign a deal with French Interior Minister Bernard Cazeneue on tackling the migrant crisis.
Saudi stocks drop to seven month-low as weak oil prices knock confidence: Saudi Arabia’s Tadawul All Share Index dropped to its lowest value in seven months, after the International Monetary Fund (IMF) issued a warning about the country’s oil dependence.
Austin Reed puts Regent Street flagship store up for sale: Austin Reed has put its flagship store on Regent Street up for sale just months after undergoing a painful restructuring that involved closing 31 stores to pay down debts.
