The Times
Volkswagen offers $5,000 to all U.S. diesel drivers: Volkswagen is believed to have reached a deal with the American authorities to settle the case over its cheating of diesel emissions tests that would involve it offering to buy back the affected vehicles or fix them and pay compensation of as much as $5,000.
Blow for Tchenguiz as claims dismissed in court: Vincent Tchenguiz has suffered a setback in his attempt to win millions of pounds in damages for a botched Serious Fraud Office investigation into his affairs.
Investors pull $15 billion from hedge funds: Investors pulled $15 billion from hedge funds in the first quarter of the year in the worst bout of withdrawals since the financial crisis, as volatile markets caused losses at some firms and spooked clients.
Results lend credence to Metro Bank model: Metro Bank has delivered a striking riposte to its pre-float critics by narrowing its losses and more than doubling the amount it lends to £4 billion in the first three months of the year.
France seeks €300 million unpaid tax from McDonald’s: Tax officials in France are said to have demanded €300 million from McDonald’s after the fast-food chain became the latest American group to be accused of underhand financial manoeuvring.
Women being left at the starting line: Female entrepreneurs are being left out of Britain’s start-up boom, costing the economy tens of billions of pounds in missed growth, the Women’s Business Council has warned.
Profits dip as Coca-Cola sales lose their fizz: Hit hard by a stronger dollar and caught up in major concerns about its packaging and branding, Coca-Cola, the world’s biggest beverage maker, had one thing to be happy about in the first quarter: water.
Credit cards remain a big target for Virgin Money: Virgin Money will push further into credit cards, the challenger bank has said, adding that it is on track to hit a target of £3 billion in credit card balances a year early, by late 2017.
Tourists are not so fast at MoneySupermarket: Nervous tourists shunning or delaying booking foreign holidays have dealt a blow to MoneySupermarket. The price comparison company said yesterday that revenues at its TravelSupermarket website had slid by 24% to £5.3 million in the first quarter of the year.
The Independent
Yukos shareholders suffer major blow to demands for compensation from Kremlin: Shareholders in the collapsed Yukos oil company established by jailed oligarch Mikhail Khodorkovsky have lost a key court battle in their demand for $50 billion compensation from the Russian government.
EU referendum: Clegg warns Brexit will leave Britain with ‘no empire, no Union and no special relationship’ with U.S: Britain will be left with “no empire, no union and no special relationship” with the U.S. if the country votes to pull out of Europe, the former Deputy Prime Minister Nick Clegg has warned.
Google is a ‘partially dangerous’ website, Google says: Google is a “partially dangerous” website and people should be careful when using it, Google has warned.
Financial Times
Punch Taverns shares fizz as transition looks on track: Shares in Punch Taverns enjoyed their biggest one-day gain in more than two years on Wednesday after the pub group reported an uptick in like-for-like sales and said its transformation plan was succeeding.
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Vodafone in Ofcom’s cross hairs over pay-as-you-go charges: Ofcom has found “reasonable grounds for believing” that Vodafone falsely charged pay-as-you-go customers over a four-year period in the latest customer services complaint against the British telecoms group.
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Schroders’ CEO faces revolt over move to Chairman: Schroders’ Chief Executive Michael Dobson faces a rebellion over his move to Chairman with investors and three shareholder advisory groups lining up against the appointment.
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Mitsubishi admits falsifying car fuel performance data: Mitsubishi Motors on Wednesday admitted that some of its employees had falsified fuel economy data on at least 625,000 vehicles, in the latest scandal to hit the Japanese carmaker’s reputation.
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Toilet rolls and biscuit packets are shrinking, says Which?: Toilet roll, coffee, chocolate biscuits and scores of other supermarket staples have shrunk in size while prices have remained flat or even increased in recent years, according to consumer group Which?
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Worldpay to launch pay-as-you-go service for U.K. small businesses: Worldpay is drawing inspiration from the mobile phone industry by launching a pay-as-you-go service for smaller businesses taking card payments, as part of the payment group’s plans to expand in the U.K.
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Google and McKinsey to mine Kazakh data: Kazakhstan has signed a deal with Google and McKinsey to harness the power of “big data” analysis and improve efficiency in its mining industry.
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Harriet Tubman to feature on new $20 bill: The U.S. will for the first time have an African-American as the star of one of its highest-circulation bank notes after the Treasury announced that Civil War-era abolitionist Harriet Tubman would be featured on a new $20 bill.
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Obama heads to London as Le Pen joins Brexit battle: President Barack Obama arrives in London on Thursday evening at the start of a three-day visit to add his voice to an increasing international clamour for Britain to remain part of the EU.
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Shire: slipped 2% to £41.89 on renewed competition fears around Baxalta, the haemophilia treatment maker it agreed to buy in January.
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N Brown: dropped 12.9% to 275p after cautioning that current trading had weakened on subdued demand, tighter credit regulation and tougher competition.
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Lex:
Qualcomm: smarts a bit: Smartphone sales look soft. Bad news for the likes of Apple. Worse news for Qualcomm, which makes money off virtually every handset sold — either through selling chips or licensing intellectual property. Qualcomm estimated during quarterly results on Wednesday that its customers made $52 billion-$60 billion in total device sales in the three months to the end of March. At the midpoint, that would be the worst quarter in four years.
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Post-default bonds: do buy for me Argentina: The hottest ticket in global markets is a bond offered by a country with 30% inflation (estimated, as its statistics are not to be trusted). A recession is due in the year ahead. The two-hundred before were studded with defaults and the odd coup. Its main exports are soft commodities, and soya beans are down 30% since mid-2014.
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Mitsubishi Motors: wrong signals: A little red fuel light appeared on Mitsubishi Motor’s dashboard on Wednesday. Turns out some of its cars do not run quite as far as stated. Mitsubishi has admitted fiddling with its fuel consumption tests to show better economy. This is another dent in the collective reputation of carmakers, after similar issues at Korea’s Hyundai and Kia (2014), and Volkswagen’s “dieselgate” last year.
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Lombard:
Anglo American’s rumble in the jungle: A spat between Anglo American and investors has instead spilled out into the equivalent of a pithead punch-up. A significant minority of shareholders are set to vote against the pay of Chief Executive Mark Cutifani.
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The Daily Telegraph
Tata buyout could use crowd funding to finance purchase: A management buyout of Tata’s U.K. steel operations could use a crowd funding model to help gather the financial firepower needed to save the business from closure.
Greece ‘could leave Eurozone’ on Brexit vote: Greece could crash out of the Eurozone as early as this summer if Britons vote to leave the European Union in the upcoming referendum, economists have predicted.
British Gas to cut 684 jobs as it shuts Oldbury call centre: British Gas is to cut 684 jobs in its services business as it shuts down its Oldbury call centre, under the latest stage of the energy giant’s cost-cutting drive.
iPhone chip designer Arm beats expectations despite Apple sales slowdown: Arm, the chip designer at the heart of the iPhone and an array of other “connected” devices, has defied expectations to post a 14% rise in pretax profit this year despite stuttering smartphone sales.
N Brown shares slump despite turnaround ‘progress’: Shares in N Brown tumbled by almost 15% after the retailer warned that its turnaround may bring “some unexpected bumps in the road”.
Punch Taverns Boss warns of tight race to comply with Pubs Code: The Boss of Britain’s second-biggest pub company has raised concerns that the Government has not have given the industry enough time to prepare for the breaking of the beer tie next month.
The Questor Column:
Connect Group enjoys 36% jump in profits: Connect Group, the newspaper distributor, enjoyed a steady start to the year with a 36% jump in pretax profits, and a major contract extension secured the revenue and underpins the chunky 6.2% prospective dividend yield. The company said it has agreed a five-year contract extension with Northern & Shell, the publisher of The Daily Express, Daily Star, and OK! Magazine. The deal will guarantee about 5% of annual revenues until 2021. Mark Cashmore, Chief Executive, said he now has contracts in place that secure 94% of the £1.8 billion in annual revenue until 2019, and 75% until 2021. Magazines also enjoyed an improved six month trading period with sales down 3.4%, much better than the 8% fall in sales reported three years ago. The newspaper and distribution business generated 75% of group revenue and 65% of operating profits in the six months to the end of February, with revenue down 2.1% to £731 million and adjusted operating profit 2.4% lower at £21 million. This was better than management’s expections that sales would decline by between 3% and 5%. A steady outlook on revenue and tight cost control means the company generates plenty of cash, with £18 million in free cash flow in the first half, up 13% on a year earlier. Management had the confidence to increase the interim dividend by 3.4% to 3p, going ex-dividend on June 8 and payable on July 8. The stationery business has also been hit by cuts to school budgets and both revenue and profits were flat at £31.6 million and £2.8 million in the first half respectively. Connect Group at 152p-0.5p. Questor says “Hold”.
The Guardian
Welsh billionaire Terry Matthews backs Tata Steel U.K. buyout plan: Sir Terry Matthews, the first Welsh billionaire, is backing a proposed management buyout of Tata Steel U.K., boosting hopes of a rescue deal for the Port Talbot steelworks and thousands of employees.
Port Talbot Boss raising funds for Tata rescue bid: The Boss of the Port Talbot steelworks is working on a proposal to rescue Tata Steel’s U.K. business through a management buyout.
U.K. unemployment rise: Crabb claims Brexit threat could be to blame: The threat of a potential vote to leave the EU in June could be partly to blame for the first rise in unemployment in seven months, the work and pensions Secretary has warned.
EU accuses Google of using Android to skew market against rivals: The EU has accused Google of skewing the market against competitors with its Android mobile operating system.
London skyscraper rents rising faster than the rest of the world: Rents in London’s skyscrapers are soaring, rising much faster than those in other major cities around the world, due to booming demand for landmark buildings and a lack of new office space.
Daily Mail
The U.S. Giant limbering up to scupper Germans’ bid for the London Stock Exchange: The 40th floor of a mid-town, shining Manhattan tower block is not necessarily the place you would expect to smell the rich aromas of coffee beans and cocoa pods being sifted and tested. But as the home of the former New York Board of Trade, a soft commodities exchange where different grades of coffee, cocoa and cotton are bought and sold, it is just part of the business to hand.
EDF facing legal threat if they push ahead with building 18 billion Hinkley Point nuclear plant: EDF’S directors have been warned they face legal action if the beleaguered power company pushes ahead with building an £18 billion nuclear plant in Somerset. A letter from managers in the French firm said board members could be held personally responsible if their support for the Hinkley Point C project led to a ‘destruction of value’.
Babycare giant Johnson & Johnson hurt as mums ditch No More Tears shampoo and talc in favour of organic products: Health and beauty giant Johnson & Johnson has been forced to rethink its babycare products after losing out to rivals selling organic alternatives. Sales of baby products such as No More Tears shampoo and talcum powder have tumbled 14% in the first quarter of the year to £66 million.
Footsie firms Bunzl and Moneysupermarket the latest to face shareholder fury over fatcat pay: The anger of shareholders over fat cat pay grew yesterday as two more stock market giants faced revolts. FTSE 100 outsourcing firm Bunzl saw 26% of investors vote against the pay deal for its board. Meanwhile, 12% of shareholders revolted against the pay at financial website Moneysupermarket.
Daily Express
Fears grow Greek debt crisis could again rip Europe apart: Greece’s debt crisis could flare up again this summer as its government drags it feet on implementing unpopular economic reforms demanded by its creditors to unlock further cash.
U.K. economy slowdown fears as unemployment and benefits claims rocket: The numbers of unemployed people and benefits claimants in Britain have jumped for the first time in months, amid fears the U.K. economy is slowing.
Travellers warned to vaccinate or risk invalidating insurance: Holidaymakers must get all required vaccinations before jetting away to exotic locations or face being lumbered with thousands of pounds in medial bills, experts warned today.
The Scottish Herald
RBS says bank and economy need more women: Royal Bank of Scotland has said supporting women in business and female entrepreneurs will be a key driver of economic growth for the U.K., and the bank is well on the way to being run 50% by women.
Unicorn search putting small businesses at risk: Small businesses in Scotland are being put at risk because of a misguided focus on scaling up too quickly, according to Entrepreneurial Spark Founder Jim Duffy.
East Kilbride tech firm office closure could cost 30 jobs: The East Kilbride office of telephony services provider Azzurri Communications could close with the loss of up to 30 jobs.
Cyber fraud system fuels £180 million valuation for Scottish tech start-up: A start-up that aims to be the ‘Intel of cyber security’ has been valued at up to £180 million in an intellectual property exercise backed by Scottish Enterprise.
Eland Oil & Gas targets attractive returns at lower oil prices in Nigeria: Aberdeen-based Eland Oil and Gas has said it expects to start production this year from another field in Nigeria where it is confident of achieving good returns amid the crude price slump.
Services sector to overtake manufacturing in export rankings: The services sector will generate a bigger share of the U.K.’s exports than goods producers from 2026 in spite of official efforts to encourage ‘the march of the makers’, research has shown.
Standard Life’s Indian partner announces IPO: Standard life has approved an initial public offering at the insurance arm of Indian bank HDFC. Through a subsidiary, Standard Life holds a 26% shareholding in HDFC Life and is in the process of increasing this to 35%.
The Scotsman
Shoosmiths expands family law team in Edinburgh: Law firm Shoosmiths has bolstered its family team north of the Border with the appointment of John Fotheringham to its Edinburgh office as a consultant.
First Mortgage eyes £1 billion target amid English expansion: Scotland’s largest independent mortgage provider is expanding south of the Border as it looks to push its total arranged home loans over the £1 billion threshold.
Atlantis forecasts maiden profit after raising £6.5 million: Tidal power firm Atlantis Resources today said it was on track to deliver its first annual profit after raising funds to ramp up its activities in Scotland.
Outlander is a ‘goldmine for years’ to Scotland’s tourism: Scotland’s tourism agency believes the industry will be able to cash in for years to come from a “goldmine” created by the hit American fantasy TV series series Outlander.
Scottish unemployment rate rises by 20,000: Scotland’s economy has suffered a huge blow after unemployment rose by a massive 20,000 as the impact of the North Sea slump and a raft of factory closures took their toll.
City A.M.
Banking exports will pass £100 billion in next decade, but government’s £1 trillion target still some way off: The government will spectacularly miss its target to increase the value of U.K. exports to £1 trillion by the end of the decade, a new report has said, as the City of London looks set to continue punching above its weight on the global stage.
Nearly 60,000 companies hit by National Living Wage already in “significant financial distress”, insolvency firm warns: The National Living Wage (NLW) risks tipping thousands of vulnerable companies over the edge as they struggle to absorb higher staff costs, one of the U.K.’s leading insolvency firms has warned.
Mount Anvil profits hit new record high as residential developer targets 1,000 new homes: London property developer Mount Anvil posted a 25% jump in pretax profits to reach a new record of £25 million last year, after partnering with other developers to deliver nearly 500 new homes across the capital.
European stock exchange operator considers options for blocking London Stock Exchange-Deutsche Boerse merger: Euronext is considering options on how to block the London Stock Exchange-Deutsche Boerse merger. The European stock exchange operator is said to be consulting with advisers, considering lobbying in favour of a counter-bid for LSE from Intercontinental Exchange (ICE) and arguing against the merger to regulators in Brussels.
Coca-Cola is ditching Coke Zero and will launch Coca-Cola Zero Sugar this summer in a £10 million marketing campaign: Coca-Cola will launch its latest sugar-free offering this summer to replace Coke Zero, after a consumer poll showed 50% of people did not know Coke Zero contained no sugar.
Heineken share price soars as the Dutch brewer toasts first quarter sales triumph and beats analyst expectations: Dutch brewer Heineken’s share price has soared after the brewer swept ahead of analyst expectations in its first quarter results, where it received one-off sales boosts from the Vietnamese and Chinese New Years and an early Easter.
No party for Barbie as Mattel losses widen: Toymaker Mattel’s losses widened as children continued to grow tired of some of its iconic brands such as Barbie. Mattel posted a loss of $73.2 million (£51.1 million) in the three months ended 31 March, more than the loss of $58.2 million a year earlier.
Fintech and regulatory pressures are transforming bond markets: Fintech is speeding up “unprecedented” changes that are underway in Europe’s bond markets. Technological advances are accelerating the automation of bond trading, according to a report by the International Capital Market Association (ICMA).
