The Times
We will support cap on energy bills, says Ofgem: Imposing a price cap on energy bills could be a “very understandable” decision for Ministers to take, the energy regulator has said only months after the competition watchdog rejected the idea.
World Trade deal ‘is £1 billion opportunity’ for Britain: The first multilateral agreement concluded by the World Trade Organisation has been hailed by the government as a billion-pound opportunity for the British economy.
Upbeat OPEC Chief says output cut is working: Oil prices of at least $50 per barrel are needed to justify fresh investment in the industry, OPEC’s president said.
German firms still confident despite fears over Brexit: German business confidence powered ahead this month, providing further evidence that growth in Europe’s largest economy is accelerating.
Supercar with sad history to ride again: It is the British supercar with the sad history. The Caparo T1 was lionised by the motoring press as the high-performance vehicle closest to bringing the Formula 1 experience to the open road.
Better outlook helps Petrofac return to profit: Petrofac has returned to full-year profit on the back of recovering oil prices. The FTSE 250 energy group reported an annual pre-tax profit of $100 million compared with a loss last year of $335 million. The full-year dividend was held steady at 65.80 cents with a final payout of 43.80 cents.
The Independent
Leaving EU customs union will mean border queues warn experts: Theresa May’s hard Brexit will almost certainly mean British firms will face expensive queues at customs borders, trade experts have warned.
Federal Reserve signals another interest rate hike ‘fairly soon’: Federal Reserve officials expressed confidence they can raise interest rates gradually, while a hike “fairly soon” might be appropriate to avoid the risk of an overheated economy, minutes of Federal Open Market Committee’s latest meeting showed.
Brexit uncertainty fails to dampen U.K. start-up ambitions: Uncertainty around Brexit may not be dampening the U.K.’s entrepreneurial spirit just yet.
Coca-Cola announces recycling U-turn: Coca-Cola has thrown its supports behind a deposit return scheme for drinks bottles in Scotland, in an effort to reduce littering and boost recycling that represents a major policy shift for the company.
Metro Bank closes in on first full-year profit: Metro Bank, the high street lender seeking to challenge the dominant big five retail banks in the U.K., is closing in on its first ever profit as more than a quarter of a million people opened accounts in 2016.
Paris announces seven new skyscrapers as it steps up bid to lure London jobs: Paris has ramped up efforts to lure jobs from London as Europe’s leading business hub post-Brexit after announcing a huge investment in its main business district, La Défense.
Third of manufacturing firms want to move some operations out of U.K. after Brexit, report warns: Deep uncertainty caused by Theresa May’s drive to Brexit has left one in three manufacturing firms planning to shift some operations out of the U.K., a damning report reveals.
Financial Times
ExxonMobil forced to make cuts to reported oil and gas reserves: Reported oil and gas reserves at ExxonMobil dropped by 19% last year as it revised away 3.5 billion barrels of heavy bitumen at an oil sands project in Canada, the largest drop to be reported by one of the big international oil companies for at least a decade.
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Rosneft’s profit for 2016 plunges amid low oil prices: Rosneft’s profit fell by almost half last year, as the world’s largest publicly traded oil producer by output struggled with low crude prices and increased costs. State-controlled Rosneft reported on Wednesday net profit of Rbs181 billion ($3.14 billion) for 2016, down 49% compared to 2015, following the slide in oil prices to a 12-year low.
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RWE posts €5.7 billion loss and scraps dividend: RWE unveiled a loss of €5.7 billion for 2016 and scrapped its dividend for the second consecutive year as the crisis in Germany’s energy sector deepened.
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Investment banks set for low growth despite ‘Trump trade’: The “Trump trade” has helped to reverse three years of falling revenues from bond trading but will not be enough to spare investment banks from another year of low returns, the Coalition research group has warned.
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Wells Fargo’s independent Directors hire lobbying firm: Wells Fargo’s Directors have hired their own lobbyists as they deal with the fallout from the bank’s phoney account scandal, in what corporate governance specialists said was an unusual move for the board of a listed business.
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Former RSA Executives fined over accounting scandal: Three former Executives at RSA Ireland have been fined for their roles in a scandal which cost the U.K.-based insurance group £200 million.
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Campbell Soup aims to recapture wholesome image: In a Campbell Soup commercial from 1993, a shivering snowman comes in from the cold to sit down to a bowl of warm chicken noodle soup. The heat from the bowl rises to his face, melting the snow away to reveal a young boy.
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Nissan names Hiroto Saikawa as new Chief Executive: Nissan has appointed Hiroto Saikawa as its new Chief Executive, replacing Carlos Ghosn, who will remain Chairman of the company’s board of Directors as he focuses on developing an alliance with Renault and Mitsubishi Motors.
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ThyssenKrupp sells Brazilian steel business: German industrial group ThyssenKrupp has bid farewell to its steel producing business in Brazil as it continues to move away from the volatile business of making steel to focus on its higher-margin capital goods unit.
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Airbus profits hit by military plane costs: Airbus is demanding new concessions from government customers to help cap losses on its troublesome A400 million military transport aircraft after it was forced to take a €2.2 billion hit to 2016 profits to cover the costs of further delays and technical problems.
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Serco shares slide as investor concerns mount over turnround: Shares in Serco slid on Wednesday as investor concerns mounted over the pace of the outsourcing group’s recovery after a wave of scandals surrounding government contracts.
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Dish unexpectedly adds pay-TV customers in fourth quarter: Dish Network added new pay-TV customers in the fourth quarter, defying expectations for further corrosion in its subscribers as people increasingly watch shows on streaming services such as Netflix.
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Leading clothes retailers keep away from Bangladesh conference: At least two multinational clothes retailers have pulled out of a Bangladeshi garment factory conference in protest at conditions for workers.
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Tesla Chief signals group will look for big cash injection: Tesla is likely to turn to Wall Street for another big cash infusion as it gears up to launch its first mass-market electric vehicle later this year, Chief Executive Elon Musk indicated on Wednesday.
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Fitbit says shortfall in holiday sales was a temporary problem: Fitbit on Wednesday attempted to reassure investors that a shortfall in holiday sales was just a temporary problem, after its unit sales fell by a fifth in the fourth quarter of last year.
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Germany’s Rocket falls after biggest investor halves stake: Shares in Rocket Internet, one of Germany’s most prominent technology groups, plunged 11% after its biggest investor said it was selling half of its 13% stake in the company.
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AMD takes fight to Intel with next-generation chips: Chipmaker AMD is launching its first serious challenge to Intel in the powering of desktop PCs for almost a decade, with a new generation of processors it claims offers better performance at a much lower price.
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Lex:
Tesla Motors: passing lane: Tesla will overtake Ford before any crash. It has faster cars, after all, and an inspirational rocketman at the wheel. Most important, its investors are resistant to bad news. On Wednesday evening, Tesla announced the surprise departure of its Chief financial officer (after barely a year), that it would “probably” raise more capital (less than a year since the last stock sale) and promised “horribly negative margins” on its next car, the Model 3. The shares, of course, rose.
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Bristol-Myers Squibb: grave dancing denied: Last year, Bristol-Myers Squibb’s shares plummeted more than a third, killing off $45 billion in market value in total. Enthusiasm for its once-promising lung cancer immunotherapy treatment Opdivo gave way to pessimism as clinical trials showed it to be less effective than conventional chemotherapy. A current market value of $90 billion puts the pharma group within the budget of a few ambitious buyers, stirring interest in the market.
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Unilever: an alternative pivot: If last week’s bid approach by U.S. food company Kraft Heinz to Unilever has done nothing else, it has sent the latter’s Executives and bankers into a tizzy of action. Clearly, Unilever cannot assume that the world returns to normal after last week’s terse rebuttal of Kraft. Simply look at Unilever’s share price which, at £37, is more than a tenth above the pre-offer level. Moreover, even a cursory glance at Kraft’s profitability versus its target suggests plenty of opportunity for margin enhancement.
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Lombard:
Serco’s badge of honour unpicked by risk of government stitch-ups: On Wednesday, Mr. Soames confirmed that even after taking another £71 million of supposedly one-off costs last year, underlying trading profit will fall again in 2017, from £82 million to possibly as little as £65 million. He also admitted it was unclear how president Donald Trump’s repeal of his predecessor’s health policy might damage U.S. revenues. Serco shares dropped 19%.
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BAE’s outsider offensive: Ian King knows that, having been Boss of BAE Systems selling sensitive kit to national governments. It hasn’t been easy explaining a company where all employees must sign the Official Secrets Act, or its equivalent. BAE’s U.S. operations, which earn two-fifths of revenues, include a security arm that has secrets even from Mr. King. Mr. King’s retirement, announced on Wednesday, might have happened earlier but for Sir Roger Carr, who became Chairman in early 2014. Sir Roger is a master at making friends with an inclination to hold on to incumbent managers.
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The Daily Telegraph
EU’s ‘currency nationalism’ could splinter world’s financial system, warns Bank of England deputy: The EU’s plot to seize euro derivative clearing from London and forcibly move the business into the Eurozone could “be a road to the splintering of this global infrastructure”, according to Sir Jon Cunliffe, the Bank of England’s deputy Governor.
AO World Chief Executive John Roberts steps down to make way for new broom: John Roberts, the man who founded online electricals retailer AO World after a bet in a pub, has announced he is stepping down as Chief Executive after 17 years with the company.
Hotel Chocolat shares enjoy sugar rush on profit surge: Hotel Chocolat shares enjoyed a sugar rush after the upmarket confectionery chain beat City estimates with a 28% jump in profits.
Apple’s new $5 billion headquarters to open in April: Apple has announced that it will begin moving staff into its new $5 billion (£4 billion) headquarters in April, opening a futuristic campus that has been more than six years in the making.
Theresa May holds talks with Peugeot Boss looking to buy Vauxhall: Theresa May has spoken with the motor industry Boss expected to acquire Vauxhall about the Government’s continued commitment to supporting the car industry in the U.K.
French terror attacks drag on revenue at AccorHotels: The fallout from terrorist events in France weighed on AccorHotels’ sales in the country, pushing them down nearly 3% in 2016.
Unite to build 7,500 more rooms for U.K. students as development plans hot up: Student accommodation developer Unite plans to spend more than £300 million creating around 7,500 student rooms in the next three years, as it looks to realise its ambition of partnering with more of the U.K.’s top universities.
Metro Boss eyes parts of Co-op Bank but rules out full bid: The Boss of Metro Bank has signalled he will look at parts of rival Co-operative Bank that come up for sale if the ailing lender fails to find a buyer for its entire business.
The Questor Column:
HSBC is a supertanker rather than a speedboat, but stay on board for the ride: At first sight, HSBC’s 2016 results, announced, could hardly have been more alarming for investors: pre-tax profits fell by 62% to $7.1 billion from $18.9 billion the previous year. But banks’ accounting statements are often not all they seem, and several prominent fund managers say that HSBC’s fortunes are actually improving. If the bank can cut costs, as it intends, profits should receive a further boost. And it has the option to redeploy money from those safe U.S. Treasury bonds into lending to customers – but only if it can make decent returns of 10% or more to offset the extra risk, Mr. James said. Michael Clark, the manager of Fidelity’s MoneyBuilder Dividend fund, also remains optimistic about the bank’s long-term outlook. Questor says ‘Hold’.
The Guardian
Barratt to pay out more to shareholders despite London sales slump: One of Britain’s biggest housebuilders has surprised shareholders with an enhanced cash payout, despite its decision to cut prices on some of its most expensive homes in London amid waning demand.
Lloyds reports biggest profits since financial crash: Lloyds Banking Group’s profits have more than doubled as the bailed-out bank shrugged off the Brexit vote and avoided further hefty charges for mis-selling payment protection insurance (PPI).
Chancellor to announce measures to help small firms with business rate rises: The government will offer extra help for small firms affected by an imminent change to business rates, the communities secretary has announced, saying that more should be done “to level the playing field”.
U.K. to draw up response to foreign takeovers after failed Unilever bid: The business secretary, Greg Clark, has pledged to outline how the government should respond to foreign takeovers of crucial U.K. firms in the wake of Kraft Heinz’s failed £115 billion bid for Unilever.
Amazon, Deliveroo and Uber ‘still viable’ with no gig economy workers: Amazon, Deliveroo and Uber have admitted their businesses would remain viable if they were no longer allowed to rely on self-employed workers who do not receive sick pay, pensions or a guaranteed minimum wage.
Daily Mail
Cyber crime fighter NCC Group sees shares plummet by 15.4% after it warns of 20% sales fall: Cyber crime specialists NCC Group plunged the moment the market opened having sneaked out an update just 15 minutes before it had closed the previous evening.
Scottish Power owner saw profits dive in U.K. last year as customers switch to other suppliers: The Spanish owner of Scottish Power saw profits dive in its U.K. operations last year as 160,000 customers switched to other suppliers.
BAE Boss Ian King quits after nine years with firm expected to post a rise in profits and revenue: The Chief Executive of weapons maker BAE Systems is to step down at the end of June. Ian King is retiring and will be replaced by the Chief operating officer, Charles Woodburn.
Stamp duty hike wipes £215 million off Earl’s Court redevelopment plan after London housing market slowdown: A slowdown in the London housing market has forced a leading developer to slash the value of a flagship project by £215million.
Senior employee at troubled engineer ABB suspected of forging documents and stealing £80 million: Under-fire engineering group ABB has revealed the discovery of a ‘sophisticated criminal scheme’ in its robotics arm. The power equipment firm, which supplies the London Underground, said a senior employee is suspected of forging documents and stealing from the company.
Daily Express
Revenues stack up for chimney maker A1 Flue Systems: A weaker pound and making to order in Brexit Britain have stacked up to deliver a £1 million boost for chimney manufacturer A1 Flue Systems.
EU orders Italy to tackle debts or face sanctions as deficit reaches all time high: Brussels has threatened to hit Italy with stinging sanctions if the beleaguered country doesn’t implement unpopular austerity measures. Rome is now under pressure to adopt reforms, which could fuel further support for eurosceptic parties.
Pound hits 2-month high against euro as markets fear Le Pen victory: The pound has jumped to a two-month high against the euro, as France’s looming election sends fears through Eurozone markets. Sterling hit 1.185 against the bloc’s currency, its highest level since last December.
Britain’s economy boomed after Brexit vote: U.K. GDP revised up to 0.7% in Q4: Britain’s economy grew even faster than previously thought in the months after the Brexit vote, official data revealed. U.K. GDP grew by a bumper 0.7% in the final three months of 2016 – up from a previous estimate of 0.6% – according to the Office for National Statistics (ONS).
London home movers drops to lowest level since 1991, mortgage figures show: London home movers took out the lowest number of mortgages in 25 years last year, as affordability and supply continues to weigh on the market. Around 32,400 loans were handed out in 2016 – a 10% fall compared with 2015 – the Council of Mortgage Lenders (CML) said.
The Scottish Herald
Weir market value slashed by £400 million: Nearly £400 million was wiped off the stock market value of Weir Group after the Glasgow engineering giant revealed profits had dropped by more than one-fifth amid the oil and gas industry slump.
Scottish Widows suffers as a result of pension reforms: The impact of reforms in the pensions market hit the bottom line at Scottish Widows in 2016 despite its parent, Lloyds Banking Group, reporting a markedly improved performance for the year.
Troubled Harris Tweed mill saved in buyout: One of the three remaining mills that produces Harris Tweed has been saved from closure after a being bought in a deal led by operations manager Annie Macdonald.
Scottish Power may build more wind farms: Scottish Power Chief Keith Anderson has underlined the company’s desire to continue investing in Scotland and indicated it was unconcerned by the prospect of a second independence referendum in the country.
Investment by businesses tumbles amid Brexit worry: U.K. business investment tumbled during the final quarter of last year, official figures have revealed, with economists attributing this to companies’ increased caution amid uncertainty following the Brexit vote.
Prominent investment bank highlights potential pressure on crude price: An investment bank has cut its medium term forecast for the crude price in spite of increases in the cost of the black stuff following moves by Opec countries to cut production.
SWA cites benefit of tax cut as whisky sales surge: The volume of Scotch whisky released for sale in the U.K. surged by 5.6% to 547.2 million bottles in 2016, signalling the recovery of the spirit in its domestic market is gathering pace.
The Scotsman
Fergus Ewing repeats warning over ticking Brexit clock: Agriculture Ministers from the U.K., Scotland, Wales and Northern Ireland will meet in Edinburgh to discuss post-Brexit agricultural strategy, it has been confirmed.
Architects turn to VR to help people with dementia: A new virtual reality (VR) system has been launched to help architects and designers make life easier for people with dementia.
Gluten-free brewer eyes £500,000 to fund expansion: Bellfield Brewery, the Edinburgh-based maker of gluten-free beer, has kicked off a £500,000 funding drive to boost its expansion plans.
RBS to spend £100,000 training up digital experts: Royal Bank of Scotland is to spend £100,000 training up almost 200 technology experts, one for each of its branches, to help customers use online and mobile banking.
TVSquared nets $6.5 million to bolster advertising tech: Edinburgh-based television advertising technology specialist TVSquared has raised $6.5 million (£5.2 million) in a funding deal led by Sir Tom Hunter’s West Coast Capital.
Charolais bull sales prove doom merchants wrong: A top price of 25,000 gns and a £62 increase in the sale average saw the Charolais breed meet a steady trade at United Auctions’ Stirling bull sales.
City A.M.
British exporters are confident ahead of Brexit as Article 50 trigger looms: Confidence among British exporters has jumped ahead of the official start of the Brexit process, a new poll shows, as revised figures reveal a 4.1% increase in exports boosting U.K. growth at the end of 2016.
Tesla says its new mass-market car remains on track as it reports narrowing losses: Tesla posted a smaller loss for the quarter to 31 December, as it declared that its new mass-market saloon was on track to enter production by September.
Google owner Alphabet has just been upgraded to AA+, S&P’s second highest rating level: Google parent Alphabet has been upgraded by Standard and Poor’s, with analysts citing strong operating performance and conservative financial policy.
The WTO’s trillion dollar trade deal has now come into force: A new trade deal set to boost global trade by $1 trillion (£800 billion) a year has come into force.
MEP hits back at governing body claims of malicious intent: The MEP championing change in Formula One has hit back at claims by the sport’s governing body that her cause is “inaccurately informed or made maliciously”.
Leeds Building Society’s profits headed north for the fourth year in a row, but Boss warns low interest rates and Brexit could make the road ahead tough: Leeds Building Society announced its annual profits before tax had risen for the fourth year in a row, but the lender’s Boss warned super low interest rates could lead to tough times ahead.
Emmanuel Macron has won a big endorsement for his French presidential campaign and the markets seem to like it: French presidential candidate Emmanuel Macron has received another boost in a busy week, after being endorsed by veteran centrist Francois Bayrou, with the markets welcoming the move.
