The Times
Hedge funds line up Co-op’s bank stake: Shareholders in The Co-operative Bank are considering buying the remaining 20% stake as they look for ways to recover their investment.
CMA bats away free banking demand: High street banks that want to stop providing free current accounts may be thwarted by the competition watchdog.
Ex-Espírito Santo Boss under house arrest: The former Boss of Banco Espírito Santo has been placed under house arrest after being questioned over the events that led to the collapse of the Portuguese bank.
Metro do Porto tries to escape ‘worst trade ever’: A legal dispute over a derivatives deal dubbed the “worst trade of all time” is set to hit the High Court as lawyers argue over how an €89 million loan to a Portuguese train operator ballooned into a debt of more than €500 million.
Inquiry fails to find cause of Irish financial system failure: Conspiracy theorists looking for a cause for the collapse of the Irish banking system have been disappointed by a long-awaited parliamentary inquiry.
London prices force new buyers to outskirts: First-time housebuyers have all but disappeared from central London as sky-high prices are forcing them to look elsewhere.
Sky picks up pace of northern exposure with 400 extra jobs: Sky is to boost Yorkshire’s burgeoning technology scene after pledging to create 400 skilled jobs in Leeds this year.
The Independent
China completely lifts 14-year ban on games consoles: China is set to completely lift its long-standing ban on the manufacture and sale of video game consoles in the country, allowing companies like Sony and Microsoft to start tapping the huge potential market.
Drones boom ‘puts insurers at risk of multi-million bill’: The rise of drone technology could leave manufacturers and operators of the unmanned aerial vehicles facing multi-million pound claims, insurance experts have warned.
Greece debt crisis: Humbled Athens starts talks on bailout with hated ‘troika’: Greece will begin delayed negotiations over a third €85 billion (£60 billion) bailout on Tuesday, months after its left-wing leadership swore not to deal with the hated “troika” of its international creditors.
Financial Times
Former pensions Minister Steve Webb set to join Royal London: Steve Webb, the former pensions Minister, is poised to join Royal London, the U.K.’s biggest mutual life and retirement group, that once criticised him for making “headline grabbing” policy.
U.K.-listed gold miners weather slump in prices better than most: U.K.-listed gold miners were spared the worst of the stock market slump last week after the precious metal suffered its largest one-day fall in nearly two years.
Oil groups have shelved $200 billion in new projects as low prices bite: The world’s big energy groups have shelved $200 billion of spending on new projects in an urgent round of cost-cutting aimed at protecting investors’ dividends as the oil price slumps for a second time this year.
Critics and backers argue over London’s £4.2 billion ‘supersewer’: Final contracts for one of Europe’s costliest infrastructure projects, a £4.2 billion sewage tunnel under London, will be signed within weeks.
China online finance rules balance innovation and risk control: China’s move to regulate internet finance is a positive step towards legitimising a sector that has largely operated in a vacuum, analysts say, but the rules also reflect the government’s support for incumbent banks.
Indian billionaire to turn Great Scotland Yard into luxury hotel: Indian billionaire Yusuffali Kader has teamed up with Galliard, the U.K. property developer, to complete a £110 million deal to create a five-star hotel at Great Scotland Yard in the latest deal by an Indian investor to look to profit from London’s property market.
MUFG eyes U.S. asset management deal: Japan’s largest bank Mitsubishi UFJ Group wants to turbocharge its push into the asset management sector with an acquisition of at least $2.5 billion in the U.S., Chief Executive Nobuyuki Hirano told the Financial Times.
Bioven seeks IPO to help market Cuban cancer drug: A Malaysian biotech company developing a cancer drug discovered in Cuba is planning to float in London.
NHS outsourcing deal loses 1,000 jobs: Capita, the FTSE 100 outsourcer, is planning to cut nearly 1,000 jobs when it takes on a £1 billion contract to supply administrative support to the NHS.
Finmeccanica changes tack on U.S. sale: Finmeccanica has taken down the For Sale sign it posted last year over DRS Technologies, the U.S. electronics business it acquired for $5.2 billion in 2008 just before defence spending collapsed.
Lord Sewel quits over drugs scandal: Lord Sewel, the crossbench peer in charge of enforcing standards in the upper house, has quit after a tabloid newspaper published a video apparently showing him snorting cocaine with two prostitutes.
Lex:
Go-shop provisions: buyer beware: Industrial company OM Group thinks so, too. In June, OM agreed to sell itself to Apollo and its partner Platform Specialty Products for $34 per share (about $1 billion in total). But the agreement allowed for a go-shop period during which the company could look for another buyer willing to pay more. Often these additional marketing periods feel like perfunctory charades. But OM says that another bidder, as yet undisclosed, has made a proposal. And its shares have hovered above $34 since the Apollo deal was announced, suggesting that letting others have a look was a canny move. However, some companies sell themselves without running a wide auction, or are sold to management-led groups with inherent conflicts of interest. In such sensitive scenarios (often private equity is involved), a go-shop provision allows a company to actively seek other bidders over, say, a 30 or 45 day period. If a better bid is accepted, the original buyer receives a termination fee. The real question is how the go-shop provision impacts the original deal price. One study in 2008 found that go-shop provisions, in which the original bidder had been given exclusivity, led to a higher deal price compared to instances where deals were not shopped. A more recent study, however, found that go-shops lead to lower initial deal prices, not compensated later by better bids.
GlaxoSmithKline: dose of reality: Last year was especially tough for the U.K. pharma group. GSK was embroiled in a bribery scandal in China, issued a profits warning and suspended share buybacks. Its shares have underperformed the sector for several years. Returns on capital have halved over the past decade. Sales are the same as they were in 2006. The stock yields almost 6% and GSK has pledged to hold payouts until 2017 — but dividend cover is thin and some fear a cut in coming years. Selling the consumer businesses, which include toothpaste and Horlicks, looks unlikely in the short term, and anyway would not fix the main problem: the pharma division. Here, GSK faces falling sales from asthma drug Advair in particular, and can offer little clarity on what might replace those revenues. It could buy more products, but valuations are frothy and GSK already has more drugs in the pipeline than peers. At half year results next week, and the R&D day in the autumn, there needs to be evidence that the pipeline drugs are worth waiting for.
Anglo American: self-help: Anglo American’s $3 billion half year loss was down to grim commodity prices and capital expenditure commitments made in easier times. The miner’s $3.5 billion pretax write-down — on its flagship Minas-Rio iron ore mine in Brazil and Australian coal assets — may not be the last if commodities continue to slide. The shares fell 4% on Friday. Anglo also slashed an extra $1 billion off its planned capex to the end of 2016, the bulk of it this year when total outlay will decline to $4.5 billion. But Mr Cutifani needs to keep existing assets ticking over; capex cuts can only go so far. Just as well that Anglo’s latest capex peak was last year. It helps too that its balance sheet is in better shape than in the last crisis. Net debt is a manageable two times forecast full year earnings before interest, tax, depreciation and amortisation. But even regardless of the Chinese slowdown, Anglo needs to build up its financial flexibility. Planned asset sales will take time. Declaring an interim dividend sits uneasily with its broader retrenchment. If prices slide further, its final payout should be axed. Anglo’s asset quality is not in doubt, nor its commitment to fix itself. But when the cycle turns, miners with strong balance sheets benefit most. Anglo needs to put itself in that position.
The Daily Telegraph
Varoufakis reveals cloak and dagger ‘Plan B’ for Greece, awaits treason charges: A secret cell at the Greek finance ministry hacked into the government computers and drew up elaborate plans for a system of parallel payments that could be switched from euros to the drachma at the “flick of a button” .
Tesco abandons three times as many supermarkets as its rivals: Tesco has abandoned three times as many new supermarket sites as all of its rivals put together over the last five years in a fresh sign that the “space race” is over.
Conn to cut costs as British Gas profits soar: Centrica Chief Executive Iain Conn is this week expected to unveil cost-cutting plans as the energy giant faces a political storm over soaring profits at British Gas.
Treasury could be forced to scrap profitable Lloyds sale: The Treasury could have to slow down or even scrap its successful scheme to trickle out Lloyds Banking Group’s shares onto the market, if it wants to have any stock left for the “Tell Sid” retail share offering promised by the Chancellor.
Pearson in talks to sell stake in The Economist: The Economist magazine is up for sale after Pearson confirmed it was looking for buyers for the 172-year international business publication.
GVC and Cerberus plan £990 million bid for Bwin: GVC Holdings will this week table a bid of about £990 million for Bwin.party in an attempt to snatch the online gambling company from rival 888.
U.K. growth steps up a gear in second quarter: Britain’s recovery stepped up a gear in the second quarter, official figures will show this week.
Fiat Chrysler braced for record $105 million fine for failures during vehicle safety recalls: Fiat Chrysler is facing a record-breaking $105 million (£67.7 million) fine for lapses during almost two dozen vehicle safety recalls.
The Guardian
Morrisons buyers demanded one-off payments from suppliers: Buyers at Morrisons have attempted to secure one-off payments from about 20 suppliers in a potential breach of a government-backed code, with only “a handful” blocked by the supermarket’s legal team.
U.K. economic growth figures to ignite interest rate debate: The latest snapshot of economic growth this week will heat up the debate about when the Bank of England will raise U.K. interest rates for the first time since the depths of financial crisis.
BP forecast to report a slide in Q2 profits: BP is expected to report that its profits are down by more than half despite a recent increase in oil prices.
Argos pioneers over the counter trade-ins for mobiles and tablets: Argos is to become the first big U.K. retailer to offer customers the chance to trade-in their unwanted mobile handsets as part of a new recycling initiative.
Daily Mail
British energy giants set to axe costs in a bid to cope with falling gas and oil prices: The falling price of oil and gas continues to take its toll on energy firms as British Gas-Owner Centrica, BP and Royal Dutch Shell are set to reveal increased cost cutting to cope.
Barclays to continue to wield the axe as it bids to speed-up cost-cutting drive: Barclays Chairman John McFarlane is expected to continue to wield the axe as he attempts to speed-up his cost-cutting mission.
U.S. holidays prove a passport to profits for travel company Trailfinders: The popularity of holidays in America helped travel company Trailfinders achieve record sales last year.
Luxury British watchmaker Christopher Ward aims for timely growth as international sales boom: Luxury watchmaker Christopher Ward has seen a threefold rise in international sales over three years to £2.2 million in the year ending April 2015.
Inheritance tax Budget reforms a boon to retirement apartment builders: Inheritance Tax reforms are a boon to retirement apartment builders, according to Churchill Retirement Living, which plans to double the amount of homes it builds in the next three years.
Mystery as Sir Gerry Robinson steps down as Boss of motorway service chain Moto: One of the country’s best-known captains of industry, Sir Gerry Robinson, has unexpectedly quit as Boss of Britain’s biggest motorway services chain, Moto.
Daily Express
Consumers more positive over finances: Consumers’ confidence in their finances is the strongest for at least four and a half years, a report has found.
Steer clear of upgrade pain: Shock extra car hire charges of £500 cast a long shadow over Bob and Val Gillingham’s Florida holiday.
Sky pays price for football: Pay TV giant Sky’s profits growth has been stunted by the record £4.2 billion it had to pay to keep its Premier League football rights in February, the firm will say this week.
Banks keep £2 billion to pay for PPI scandal: Barlcays, Lloyds Banking Group and Royal Bank of Scotland are to put aside more than £1.9 billion to compensate victims of PPI mis-selling and cover fines and legal costs.
The Scottish Herald
Law firm Brodies sees growth in turnover and profit: Law firm Brodies has recorded an 11.2% rise in turnover from £52.1 million to almost £58 million while also booking strong underlying profit growth.
Shearer Candles seals export deal for South Korea: Family owned Shearer Candles has struck a deal which will see its products sold in South Korea for the first time.
Bancon expands board with new finance Director: Housing and construction firm Bancon Group has hired a finance Director from Stewart Milne Group.
Pizza maker Cosmo’s reports profit: Family owned pizza maker Cosmo’s has reported a retained profit of almost £53,000, according to its most recent annual accounts.
The Scotsman
Pinsent Masons take majority holding in Cerico: Pinsent Masons, the global legal firm, is taking a majority stake in a cloud computing business which it helped launch two years ago.
Youth recruitment scheme scores top marks: A scheme which encourages employers to recruit and retain young workers has received top marks one year after its launch.
Scots innovators come together to boost tech firms: Scotland’s leading gathering for technology and innovation is returning from last year’s hiatus on a wave of rising momentum within the sector.
City A.M.
Fiat Chrysler faces record $105 million penalty over Jeep safety issues: Fiat Chrysler is set to face a record $105 million (£68 million) fine from the U.S. government this week after allegedly failing to complete safety recalls covering millions of Jeep vehicles.
London sets the pace on exports for U.K. regions: London and the south east account for more than a quarter of all British manufactured exports, a study out shows, making it the biggest export market in the country.
Permira in race to buy U.K. debt collector Lowell Group for £1 billion: Private equity firm Permira is the frontrunner to acquire Lowell Group, the Leeds-based debt collection company.
Second quarter profit warnings fizzle out as confidence picks up: U.K. Profit warnings fell to a near two-year low last quarter after May’s decisive general election result spurred better earnings for corporates, figures out show.
