Today’s Newspapers: The Times, Independent, FT, Telegraph, Guardian, Mail, Express, Herald 080416

Newspaper Summary

The Times

Capital buffers more effective than negative rates, says BIS: Central banks would have more success in stimulating economic growth by making lenders increase capital buffers than cutting interest rates into negative territory, a top adviser at the Bank for International Settlements has said.

Asos fails to break China after three-year struggle: The Asos online fashion group is closing its Chinese business at a cost of £10 million.

Japan’s bullet train operator is on fast track to run British railways: The operator of Japan’s high-speed bullet trains has been shortlisted to run rail services in the U.K. for the first time, provoking fresh criticism about a perceived foreign “takeover” of Britain’s railways.

Tata faces £2 billion bill to close Port Talbot, claims potential saviour: Shutting down Port Talbot would cost Tata Steel at least £2 billion, according to the Indian-born businessman who is leading an effort to revive the indebted Welsh steelmaking plant.

Banks reject Mallya’s peace offer over debt: Vijay Mallya has been ordered by the Indian Supreme Court to disclose all his assets after the banks rejected a proposal from the flamboyant drinks magnate to repay about $600 million of the $1.3 billion that he owes them.

Single VAT regime for Europe will end ‘tampon tax’ issue: A proposed single VAT regime for the European Union will stamp out €40 billion of fraud and resolve the “tampon tax” conundrum, according to the European Commission.

Funds keep investors in dark over risk to cash: Asset Managers must do more to ensure that investors understand the risks they are taking when handing them money, the City regulator has ordered.

The Independent

Britain suffers biggest downturn in productivity since the financial crisis: Britain has lurched further into its national productivity crisis, with hourly output at the end of last year registering its biggest quarterly fall since the 2008 financial crisis.

Co-op Boss Richard Pennycook asks for a 60% cut to his pay package: The Boss of the Co-operative Group has asked for his pay packet to be cut by 60% having seen the first signs of success with his turnaround of the food-to-funerals conglomerate.

Japanese company apologises for 9 cent price increase: A Japanese frozen dessert company has apologised for increasing the price of its Garigari-kun, a popular ice cream for children.

Steel crisis: ‘No early deal’ to rescue Tata’s threatened British plants, says tycoon behind potential bail out: Sanjeev Gupta, the tycoon who has emerged as the front-runner to bail out Britain’s steel industry, says he has not yet submitted a bid for Tata U.K. interests and would have to think “very carefully” before attempting a takeover.

Financial Times

Blairmore investment fund loses 8% in 5 years: The Blairmore Global Equity Fund that was originally set up by David Cameron’s father in the 1980s has performed poorly over the past five years, losing 7.6% of its value and seeing a 40% drop in assets under management.

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Co-op Boss asks for 60% pay cut: The Chief Executive of the Co-operative Group has asked for a sharp pay cut, as Britain’s biggest mutual works to rebuild its business after a near collapse in 2013.

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BP faces investor revolt over Chief Executive’s pay: BP Chief Executive Bob Dudley faces a shareholder rebellion against his 20% pay rise for 2015 — the same year that the oil company reported its worst ever annual loss.

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Tata patriarch paints bleak picture of U.K. steelworks: Ratan Tata, the Indian industrialist and former Chairman of Tata Group, on Thursday defended the decision to sell its U.K. steel operations calling them “underinvested and overmanned”.

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7-Eleven Chief Toshifumi Suzuki quits after Loeb defeat: The 83-year-old Chief Executive of Japan’s 24-hour 7-Eleven convenience store empire resigned on Thursday after his board failed to back him following a clash with U.S. activist investor Daniel Loeb.

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ZTE falls 10% as trading in shares resumes: Shares in ZTE plunged 10% on Thursday, as they resumed trading for the first time since the company said a U.S. investigation into allegations it has violated export controls were “highly uncertain” and that it could face charges.

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Numericable-SFR raises $5.2 billion in U.S. debt markets: Numericable-SFR has raised $5.2 billion in U.S. high-yield debt markets, enabling it to refinance existing debt and sending a reassuring signal about investors’ willingness to back the French telecoms unit.

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Flybe falls 8% on flat passenger volumes and revenues: Flybe, the U.K. regional airline, fell to the bottom of the FTSE All-Share index on Thursday after reporting flat passenger volumes and revenues.

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Lex:

Samsung Electronics: stiffer competition: A bit like the bendy phones being developed at Samsung Electronics, shareholders in the South Korean company have had to stay flexible. Operating profits peaked back in 2013.

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Pershing Square: performance anxiety: Mr Ackman listed shares of Pershing Square Holdings 18 months ago on the Amsterdam exchange. The fund was a so-called “permanent capital” vehicle created to supplement his private hedge fund Pershing Square LP, which returned nearly 800% between 2004 and 2014.

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Co-op and Foxtons: compare and contrast: A Chief Executive, having completed a vital restructuring, blindsides his board with a demand for a totally different level of pay. This is the latest scandal at Co-operative Group, a mutual with £9 billion in sales, from food to finance. Its Chief Executive Richard Pennycook has asked for a pay cut. By way of excuse, he says the job has become easier.

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Lombard:

New Marks and Spencer Boss proves politically adept: A week into the job, Marks and Spencer’s new Chief Executive is unlikely to be thinking about his next career move (although, given news of more dire fashion sales, and sales of dire fashion, one cannot be certain).

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Chinese checkouts: Asos’ management was clearly an avid reader of the publication: it launched an online clothes shop in the country that year. And it worked a treat, helping the shares rise from £27 in January to £62 by December.

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The Daily Telegraph

The U.S. is not a ‘bubble economy’, says Federal Reserve’s Janet Yellen: The Chairman of the Federal Reserve has celebrated the strength of the U.S. economy, insisting that recent growth was not built on a bubble blown by the central bank.

Wealthy Hong Kong family to plough £200 million into U.K. real estate: A company owned by one of Hong Kong’s riches families, which started life trading tablecloths and bedding from China to the rest of the world in the 1950s, has committed £200 million to real estate in the U.K.

Petrofac calls in auditors to tackle bribery allegations: group Petrofac has called in lawyers and auditors to investigate claims a former Executive paid $2 million to clinch a major oil deal in Kuwait.

Brexit would damage the value of the London office market, S&P warns: A decision by Britain to leave the European Union would dampen prospects for U.K. property, reversing gains that the sector has enjoyed in recent years, according to Standard & Poor’s.

Serious Fraud Office launches criminal inquiry into Tata Steel: The Serious Fraud Office has opened a criminal inquiry into Tata’s steel-making operation, the Telegraph can disclose.

ECB vows to fight low inflation as Draghi warns of triple threat to Eurozone: European Central Bank policymakers have underscored their commitment to fight low inflation and boost Eurozone growth, as its Chief warned of a triple threat facing the 19-nation bloc.

Hinkley postponement ‘still up for discussion’, says Segolene Royal: Hinkley Point C could still be postponed, French energy Minister Segolene Royal has said, in an apparent sign of division within the French government over the controversial nuclear project.

U.K. will have too much electricity this summer, National Grid forecasts: Britain will have too much electricity this summer due to the growth in wind and solar farms, National Grid has forecast, warning it could be forced to issue unprecedented emergency orders to power plants to switch off.

The Guardian

Banks told to declare links to Panama Papers law firm by next week: Banks and financial firms have been told to hand over any information about their dealings with the law firm at the centre of the Panama Papers to the U.K.’s Financial Conduct Authority by a week on Friday.

Former HSBC Boss tried to avoid tax on £8 million Kensington house: The leading Brexit campaigner Michael Geoghegan is not resident in the U.K. for tax purposes, the Guardian can reveal.

U.K. productivity drops in final quarter of 2015: A sharp drop in British productivity has cast further doubt over the country’s economic prospects and will add to pressure on the government to prove its productivity plan can bear fruit.

Home production economy worth £1tn a year: The value of childcare in British homes, washing and feeding families, DIY, cleaning, and collecting children from school contributes to a “home production” economy that is worth more than £1 trillion, according to official government figures.

Brexit uncertainty hits hiring of permanent staff, figures suggest: Companies are holding off from hiring further permanent staff and taking on more temporary workers, according to figures that suggest uncertainty over the outcome of June’s EU referendum is putting employers in wait-and-see mode.

Daily Mail

Shire insists £23 billion Baxalta takeover is still going ahead after mega merger of Pfizer and Allergan collapses: Irish drug company Shire has insisted its £23billion takeover of Baxalta is still going ahead following the collapse of the biggest deal in pharmaceutical history earlier this week.

Watchdog warns over funds which secretly copy the stock market or have unclear product descriptions: Investment funds which charge high fees for the expertise of a Manager but do little than mimic the stock market are not fulfilling savers’ expectations, a review by the City watchdog has revealed.

EDF spent tens of millions on virtual version of Hinkley Point which hasn’t even been finished (just like the real thing): EDF has spent more than a million hours and tens of millions of pounds building a virtual version of Hinkley Point – which also isn’t yet finished.

Daily Express

M&S Boss out to arrest slide: New Marks & Spencer Chief Executive Steve Rowe has vowed to leave “no stone unturned” to try to reverse a near-constant five-year slide in clothing sales after branding its latest quarterly fashion flop “unsatisfactory”.

Customer fury as Sainsbury’s axes brand match vouchers: Sainsbury’s shoppers have reacted with anger after the supermarket announced an end to its ‘brand match’ price vouchers, which give shoppers money off their next shopping trip.

End of housing boom: Prices at market peak and now set to fall, warn experts: House prices in Britain jumped by 10.1% in the year to March but experts have warned this is the peak of the market and to expect a slowdown in growth in the coming months.

Fears for elderly without internet access as hundreds of bank branches to close this year: Thousands of people could be left without access to vital money services, as hundreds of Britain’s bank branches are marked for closure.

The Scottish Herald

Demand for most job types strengthens in Scotland: The number of people placed in permanent jobs by recruitment agencies in Scotland increased for the fourth straight month in March, with data also showing a pick-up in demand for staff, according to new figures.

Dunedin Enterprise to wind up: Dunedin Enterprise, the private equity investment trust, has detailed its plans for winding up the company and returning cash to shareholders.

Bonuses down at BPI: British Polythene Industries has held the salaries of its Executive Chairman and Chief Executive at last year’s level, with Cameron McLatchie receiving £300,000 and John Langlands £365,000 in the current year, the same as in 2015.

FirstGroup stays on track: FirstGroup shares perked up by two% as it said fourth quarter trading had met the board’s expectations.

First steel cut on Culzean topsides as Maersk aims to be among top five North Sea producers: Work has begun on the topside fabrication for Maersk Oil’s Culzean megaproject in the North Sea.

Hotels group in express advance: Glasgow-based Redefine BDL Hotels has added two further Holiday Inn Express hotels to its portfolio.

The Scotsman

Telecoms business WIG nets £75 million of funding to upscale: A Scottish company specialising in independently operated telecoms masts has secured investment to “substantially” upscale the business in the U.K. and grow in western Europe as it looks to plough up to a further £1 billion in U.K. telecoms infrastructure.

Innis & Gunn acquires Perth’s Inveralmond Brewery: INNIS & Gunn is set to “fast-forward” its growth in the craft beer sector with the acquisition of Perth’s Inveralmond Brewery.

Maxi in top form with record sales: Irvine-based Maxi Caledonian has posted record sales for the year to September 2015 following growth in both its haulage and construction divisions.

Chap Group wins two public-sector contracts: Chap Group said its construction arm is to complete two major projects worth a combined £14.5 million for Aberdeen City Council, helping the firm progress its growth ambitions.

Meter supplier secures £6 million utilities deal: Energy Assets, the Livingston-based gas meter supplier, has landed its largest ever utility networks deal, likely to be worth £6 million over the term of the project.

City A.M.

Oil price sinks as Keystone shutdown fails to prevent U.S. stockpile build at key Cushing hub: The price of a barrel of oil has slid by around two% after the shutdown of the Keystone pipeline last week failed to hold back the rising tide of oil.

Libor scandal: Top Bosses must have known about rate rigging, alleges former Barclays trader: A former Barclays banker who is currently standing trial accused of offences related to manipulating Libor has alleged that his Bosses must have known about the rate-rigging scandal, a court was told.

Valeant has been given an extension to get its annual report squared away, pushing up its share price in premarket trading: Embattled Canadian drugmaker Valeant Pharmaceuticals has been given an extension by its lenders to push back its deadline for filing its annual report by an extra month.

Defence giant BAE Systems has won a $118 million government contract: BAE Systems, the global defence giant, has picked up an £118 million contract for construction of an RAF engineering and training base in Marham Norfolk.

EU referendum: Credit Suisse staff told to avoid discussions around Brexit: Credit Suisse has asked its employees to avoid discussions around Britain’s EU referendum. The Swiss lender has issued guidance telling staff not to attend or arrange client events where a so-called Brexit may be discussed, and not to talk about the issue in public.

Dunelm’s share price jumps after bounce back in sales: Dunelm shares rallied after the out-of-town homeware giant posted a bounce back in sales in third quarter following a disappointing start to the year.

London-listed Acacia Mining accused of “sophisticated tax evasion” in Tanzania: London-listed gold miner Acacia Mining has been accused of engaging in “a sophisticated scheme of tax evasion” in the East African country of Tanzania where it operates.

Centamin share price jumps as it ramps up gold production: Shares in London-listed Centamin sparkled after the gold miner ramped up production at its flagship mine.

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