The Times
Ex-UBS trader attacks ‘absurd’ Libor-rigging ban: A former UBS banker has challenged the City watchdog’s decision to punish him over his alleged role in the Libor-rigging scandal and complained that when he blew the whistle on the Swiss lender’s rate-submitting practices he had been rebuffed.
Manchester Building Society fights for survival: The future of a British mutual was in doubt for the first time since the run on Northern Rock in 2007, after Manchester Building Society wrote to customers warning them to keep balances within the £75,000 limit covered by the official compensation scheme.
Vinyl revival helps format hit a 25-year sales high: The resurgence of vinyls could propel sales of the 12-inch format to levels not seen for 25 years as younger music fans are buying albums alongside their Spotify streaming accounts.
Barclays to cut costs by ditching head of investment: Barclays is set to abandon a search for a new head of its investment bank as the lender looks to thin out the ranks of its top management to cut costs amid a collapse in trading and fee income.
Energy loan losses hit Bank of America: A large decline in trading revenue, the continued drag of low interest rates and the need to set aside more energy-related loan loss reserves resulted in Bank of America reporting a 13% fall in first-quarter profit.
Poundland suffers after takeover of 99p Stores: Poundland reported a sharp drop in sales as it struggled to overcome the disruption caused by last year’s takeover of 99p Stores.
Goldman Sachs vice-Chairman gets $21 million: Michael Sherwood, a vice-Chairman of Goldman Sachs and head of its London operations, was one of Britain’s highest-paid investment bankers last year, with a total pay package worth $21 million.
Schroders faces revolt over Dobson: Schroders is facing a shareholder revolt over its plan to promote Michael Dobson, its long-serving Chief Executive to the role of non-Executive Chairman.
The Independent
Lloyds Bank warns leaving the EU would cause economic uncertainty: Lloyds Bank has warned that a vote to leave the EU would cause economic uncertainty and potential volatility.
EU data protection regulation passes in Brussels giving citizens right to be forgotten online: The EU adopted new legislation on data protection on Thursday that could give people more control over their personal information including the right to be forgotten online.
Dolmio and Uncle Ben’s warn their pasta sauce should only be eaten ‘occasionally’: Mars food, the company behind Dolmio’s pasta sauce, is to introduce a new label advising its consumers that its products that are higher in fat, salt and sugar should be only eaten “occasionally”.
Fifty biggest U.S. companies stashing $1.3 trillion offshore: The 50 biggest U.S. companies have more money stashed offshore than the entire GDP of Spain, Mexico or Australia, collectively keeping about $1.3 trillion (£0.91 trillion) in territories where the money does not count towards U.S. tax, according to a new report by Oxfam.
Financial Times
Premier League teams score with second year of profits: Premier League clubs posted record revenues last season to book an aggregate pretax profit for only the second time this century.
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Gulf Keystone shares fall to record low over debt revamp: Shares in Gulf Keystone Petroleum fell to a record low on Thursday over fears that a restructuring of the company’s debt will result in a significant dilution for equity investors.
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Deutsche Bank close to agreeing deal on sale of Abbey Life: Deutsche Bank is near to agreeing the sale of Abbey Life, the U.K.-based insurer it acquired for close to £1 billion nine years ago, having received takeover interest from several rival insurance groups.
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Swiss group shares jump 15% on debut: Europe’s dour market for new listings got a boost when a Swiss supplier to the semiconductor industry saw its share price reach a premium of nearly 15% on the first day of trading.
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AB InBev strikes South Africa jobs deal that eases way for tie-up: Anheuser-Busch InBev has struck an agreement with the South Africa government over jobs and funding that should ease the brewer’s efforts to secure regulatory approval for its £71 billion acquisition of SABMiller.
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Lex:
Burberry: chequered history: Burberry’s numbers will find the question pressing. The high-end retailer generates lots of cash flow, more than twice what is needed to cover its dividend, and the stock yields over 3%.
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Rocket Internet: prove it: The first question on Rocket’s call with journalists on Thursday was why the German internet incubator had stopped referring to its largest portfolio companies as “proven winners”. Its Managers neatly sidestepped the trap.
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ITV/eOne: talent contest: Thrust the smartphone into their sticky little hands and press play. The tantrum passes. Addictive television can be priceless, which may be what interests ITV in Entertainment One.
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Lombard:
BP shareholders get sniffy over Dudley’s pay: Bob Dudley’s $20 million pay packet “failed a sniff test”, according to one shareholder. The pong was bad enough for investors with 59% of BP’s shares to vote against its 2015 remuneration report.
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Stock responses: Stock Spirits also appears to have lost its bearings. The distiller’s London-listed shares have fallen about 31% since flotation in late 2013. Luis Amaral, a Poznan-based entrepreneur, says Chief Executive Chris Heath should quit. He is putting the question to fellow investors at the annual meeting.
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The Daily Telegraph
BP promises pay overhaul after shareholder rebellion: BP has moved to appease disgruntled investors, promising that it will overhaul the way its pays its most senior Directors after almost 60% of shareholders who voted did so against its highly criticised remuneration report.
HMRC under fire for poor record on tax fraud: HM Revenue & Customs has no clear plan to tackle tax fraud and has made “only limited progress” in reducing the sums lost to fraudsters as it grapples with a huge restructuring, according to a scathing report by politicians.
Government strikes international deal to crack down on tax evasion: The Government has struck an agreement with Germany, France, Italy and Spain to share information that it believes will make it harder for companies to dodge tax.
Profits fall by a fifth at the world’s biggest investor Blackrock: Profits at the world’s biggest asset Manager Blackrock have slumped by a fifth as the dramatic fluctuations in financial markets at the start of the year ate into its returns.
Burberry shares fall 7% on profit warning as shine fades on luxury retail: Shares in Burberry fell sharply after the fashion brand failed to shake off the gloom pervading the luxury retail market, as poor trading in Hong Kong and Macau and declining numbers of Chinese travellers shopping in Europe weighed on sales in the second half.
House builder Persimmon reports a slowdown in growth as shares fall: Shares in the U.K.’s largest house builder, Persimmon, fell almost 5% as it reported a slowdown in growth and delays in securing planning permission for its development sites.
Aim-listed online ads company Phorm goes bust leaving investors £200 million out of pocket: Phorm, an Aim-listed online advertising technology specialist that once boasted deals with Britain’s biggest broadband providers before it was engulfed by a privacy scandal, is to cease trading with investors due to lose every penny of the £201 million sunk into it.
Debenhams on the hunt for a new Boss as CEO confirms resignation: Debenhams has said the search continues for a replacement for outgoing Chief Executive, Michael Sharp, as the retailer unveiled better-than- expected profits in its first-half results.
The Questor Column:
Sell Burberry as sales outlook worsens: Burberry shares fell 5% lower as the second half trading update did little to quash investor’s fears that the rapid growth in sales across Asia are now going into reverse. Asian markets and in particular Hong Kong and China are incredibly important for Burberry as they contribute 30% to 40% of the total revenue. There are clearly problems in these regions as like-for-like sales in Hong Kong fell by 20% for the third quarter in a row. The company added that sales are still growing in Mainland China and Korea, but the picture for total retail sales is getting worse. Like-for-like retail sales were down 2% to £1.06 billion in the six months to the end of March. The retail sales performance marks a sharp reversal from 9% growth in the same period last year. Burberry’s wholesale division also declined, by 1% to £330 million during the second half. Licensed products, such as glasses and watches, more than halved from a year earlier to £16 million, in the second half. The fashion group flagged that it doesn’t except a recovery in wholesale demand any time soon, with uneven buying from big U.S. customers. Wholesale revenues are expected to fall 10% during the next six months. Questor thinks Burberry shares should be trading on 12 times earnings. Market consensus for £427 million in pretax profits giving 73p in earnings per share also looks fanciful. A more prudent target would be pretax profits of around £330 million giving about 65p in earnings per share and a target price of 800p. Burberry at £12.96 -49p. Questor says “Sell”.
Unilever turnover hit by Latin American currency falls: Consumer goods giant Unilever said that it sold more products and at higher prices during the first quarter of the year, but a sharp fall in the value of emerging market currencies led to a drop in revenue. The company reported underlying sales growth of 4.7% in the first quarter, just a touch behind the 4.9% sales growth during the fourth quarter. The Anglo-Dutch company now generates almost 60% of its total sales from markets such as India, Latin America and Africa. The good news was that sales have accelerated across the emerging markets at the start of the year, albeit it a fairly low rate. Emerging market sales were up 8.3% in the three months to the end of March, up from 8.1% growth in the fourth quarter. Unilever reported sales growth of 18%, up from 12% in the previous period, as prices increased by 15% and the amount of goods sold increased by 2.4% in Latin America during the first quarter. The toughest market by far remains Europe where falling prices meant sales declined by 0.6% in the first quarter. The group’s largest division – personal care at 38% of group turnover – enjoyed a 5.8% increase in sales as a new range of Axe products was launched for men. The consumer goods company has also focused on buying premium brands to drive higher profit margins and sales Unilever spent $3.7 billion (£2.5 billion) buying TRESemme maker Alberto Culver in 2010, and added REN Skincare last year. Unilever suffered from the falling value of emerging market currencies when they were translated back into Euros. Turnover declined 2% to €12.5 billion (£10 billion), in the 3 months to the end of March. The company maintained growth targets of between 3% to 5% for the year ahead and that underpins the shares premium rating on 21 times forecast earnings. Unilever at £32.85 +21p. Questor says “Hold”.
The Guardian
BP shareholders revolt against CEO’s £14 million pay package: Britain’s top Bosses were sent a warning on Thursday that they must rein in boardroom excess when shareholders voted overwhelmingly against huge pay deals at two of Britain’s biggest companies.
Institute of Directors weighs in on BP Chief Executive’s pay award: The Institute of Directors has made a rare intervention on Executive pay, urging BP shareholders to think twice before backing a decision to award $20 million (£14 million) to Chief Executive Bob Dudley in a year when the company ran up its worst-ever losses.
Bank of England warns Brexit could do serious harm to U.K. economy: A vote to leave the EU could harm economic growth and have a serious impact on the pound and other U.K. assets, the Bank of England has said, as it took steps to prepare for June’s referendum.
IMF Chief issues impassioned plea for Britain to stay in EU: The managing Director of the International Monetary Fund has made an impassioned plea for Britain to stay in the EU, saying Brexit would spell the painful breakdown of a “long marriage” with grave risks for the global economy.
U.K. and European allies plan to deal ‘hammer blow’ to tax evasion: Britain and its European allies have announced new “hammer blow” rules against tax evasion in direct response to the Panama Papers leak that exposed how the world’s richest and most powerful people hide their wealth from the taxman.
Daily Mail
Founders of holidaycottages.co.uk pocket £15 million after selling 50% stake in the family firm they started from home: A family has pocketed £15 million after selling a 50% stake in the holiday rental business they started from home.
Burberry and Mothercare hurt by China slowdown and the effects of the oil slump on the Middle East: A fall in Chinese shoppers travelling to the U.K. to do their shopping and the effects of the oil slump on the Middle East have hit the performance of British brands Burberry and Mothercare.
Fashionable trainers and tracksuits help JD Sports profits jump 46% as it trounces rival Sports Direct: The fashion for stylish trainers and tracksuits has helped JD Sports profit jump 46% – a new record – as it continues to trounce rival store Mike Ashley’s Sports Direct.
World Bank promises assault on tax cheats following the leak of the Panama Papers: An assault on ‘illicit financial flows’ has been pledged by the World Bank President Jim Yong Kim following the leak of the Panama Papers.
Treasury to make loss on RBS shares with Osborne urged to come clean on scale of the fiasco: George Osborne was urged to come clean about the huge loss taxpayers are likely to incur on Royal Bank of Scotland.
Daily Express
Cornwall council poised to ban second home Owners from buying new property: Out-of-tOwners could be barred from picking up a second home by the sea in a radical move to make housing more affordable for locals in Cornwall.
Scaremongering? Bank of England blames Brexit fears as it keeps interest rates the same: The Bank of England held interest rates at 0.5% – and then claimed a prospective exit from the European Union was causing uncertainty for the economy.
RBS and NatWest axes hundreds of jobs amid branch closures: Taxpayer-backed Royal Bank of Scotland (RBS) and NatWest is cutting hundreds of jobs and closing 32 more branches.
Property crash fears as London loses its lure for foreign buyers: London’s booming property market could be heading for a crash, as foreign investors shun top homes in the capital to stash their wealth.
The Scottish Herald
NCTech camera supplier secures Barclays funding through EU finance initiative: An Edinburgh imaging company that counts Google and Apple as partners has secured £500,000 funding to respond to the demand for new cameras it launched in September.
Aberdeen Asset Management recruits digital expert: Aberdeen Asset Management has appointed Martin Jennings as the first head of its digital division.
Glasgow laundry to benefit from French tagging technology: Tagging technology is being used to track hundreds of thousands of items stocked at a new ‘super laundry’ near Glasgow.
Bribery risk high in oil and gas downturn, warns lawyer: There is an increased risk of bribery and corruption in the oil and gas industry, a leading compliance lawyer has warned. Pinsent Masons’ Willie Park believes a lowering of standards when work is scarce could weaken checks and procedures which prevent incidents of corruption.
Scotland bucks U.K. trend for recruitment group Hays: Scotland bucked the trend for recruitment group Hays over the last quarter, delivering solid net fee growth of 7% against a challenging U.K. performance overall, with net fees down 3%.
Aldi recruits two Scots macaroni makers: Aldi has signed up two Scottish businesses to provide its 65 Scottish stores with new ranges of macaroni cheese.
thestudio opens first Scottish creative space: Property consultant CBRE and joint agent Inglis Howie have secured a new tenant for the top two floors of 67 Hope Street on behalf of client Riverside Capital Group.
Havelock targets lifestyle outlets as market changes: Havelock Europa has said it has started to grow again after a difficult 2015 which saw the axing of 135 jobs, the loss of its biggest contract, and a £2.7 million pretax loss following a first profit in five years.
The Scotsman
Belgian-style brewer expands into central belt: A craft brewer founded by restaurateur and beer aficionado Robert Lindsay has chosen Glasgow as the location for its first bar outside of the North-east of Scotland.
Wind farm fund looks to raise £315 million: Greencoat U.K. Wind, the renewable infrastructure fund, is looking to raise more than £300 million through a share issue.
Scottish business confidence almost twice EU level: Business confidence in Scotland is significantly higher than across the U.K. and the EU, despite concerns over Brexit and the outlook for the oil and gas sector, according to a study published
Smoked fish recalled from supermarkets over botulism fears: Batches of smoked halibut, smoked trout and smoked salmon have been recalled from supermarkets over concerns about the risk of the food poisoning bug botulism.
City A.M.
The New West End Company appoints Jace Tyrrell as Chief Executive: The New West End Company (NWEC), the lobby group which represents hundreds of businesses around Oxford Street, Bond Street and Regent Street, has promoted its deputy Chief Executive Jace Tyrell to the top job.
BATS Global Markets IPO set to be valued at $250 million, making it U.S.’s biggest offering deal of 2016 so far: BATS Global Markets, a U.S.-headquartered stock exchange operator, is set to go public. The company’s initial public offering (IPO) is expected to be valued at around $250 million (£176.5 million), making it the biggest U.S. deal of the year so far.
Ladbrokes-Gala Coral merger faces delay in provisional decision from Competition and Markets Authority: The Competition and Markets Authority (CMA) has delayed a provisional decision on the merger of betting giants Gala Coral and Ladbrokes, an industry source has told City A.M.
Wells Fargo has beaten expectations sending its share price higher, though profit fell seven%: U.S. bank Wells Fargo has reported that its profits dropped by seven% over the last three months compared to last year.
Iran goes on production spree ahead of Opec meeting in Doha this weekend: Shipments of crude oil out of Iran have increased by more than 600,000 barrels a day this month, according to Bloomberg data.
Law firms Reed Smith and Pepper Hamilton confirm merger talks: The transatlantic law firm mergers and acquisitions (M&A) space is heating up. Reed Smith, which was founded in Pittsburgh in the United States but has its biggest office in London, has confirmed it is in talks to merge with Philadelphia-based Pepper Hamilton.
Consumer goods giant Unilever warns over emerging market growth as it reports it’s on track to hit sales targets, share price tracks higher: Anglo-Dutch multinational consumer goods giant Unilever, maker of many well-known high street brands, has warned over future growth in emerging markets despite ratcheting up sales growth of 8.3% in burgeoning economies over the last three months.
Delta Airlines tops expectations with first quarter profit: Delta Airlines reported first quarter profits above expectations as it said it now forecasts a smaller fall in passenger unit revenue for the spring.
Legal & General bolsters £250 million build to rent pipeline after buying Salford scheme: Insurance giant Legal & General Capital and its joint venture partner, Dutch pension fund Manager PGGM, have announced plans to build more rental properties in Greater Manchester, boosting its pipeline of build to rent homes to 800 across the U.K..
Boris Johnson delays public hearing over £800 million Bishopsgate Goods Yard development after opposition to plans: Boris Johnson has delayed a decision over £800 million plans for a towering high-rise scheme in London’s East End, which opponents have warned would “destroy the heart of Shoreditch”.
