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Tuesday Papers: Sainsbury’s tie-up under new scrutiny

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Tuesday Papers: Sainsbury’s tie-up under new scrutiny

Top stories

  • The Times: More than 100 MPs have signed a letter criticising J Sainsbury for proposing a cut in staff pay after its merger with Asda that could affect as many as 13,000 Sainsbury’s employees.
  • The Daily Telegraph: A British court has dismissed criminal charges against Barclays over its £11.8 billion emergency fund raising in 2008, which was led by the wealthy Gulf state of Qatar and helped the bank avoid a state bailout, unlike rivals RBS and Lloyd.
  • Financial Times: Expectation of a further Federal Reserve policy tightening has pushed the US two-year bond yield above the ones available on much longer-dated 10-year sovereign benchmarks.
  • The Times: The US has asked Iran to abandon its nuclear programme and end its military interventions across the Middle East to avoid the “strongest sanctions in history”.
  • The Times: The FTSE 100 surged to new record last night as fears over global trade war between the US and China subsided, propelling the dollar to a five-month high.

Business and economics

  • The Times: Ryanair's profit could be down by more than 10% this year due to higher salaries for pilots and the soaring oil price.
  • The Times: Boots UK recorded 2.5% fall in operating profits while revenues declined by 0.6% in the year to the end of last August due to a fall in the number of its pharmacies.
  • Financial Times: Providers of automated investment advice have come under the scanner of the Financial Conduct Authority, which has accused them of not giving customers enough warning about risk.
  • The Daily Telegraph: Pre-tax profit at carmaker Aston Martin dropped almost 50% compared to the last time round due to currency movements caused by uncertainty over Brexit; however, stripping out sterling fluctuations, pre-tax profit was up almost 50% at £7.4 million.
  • Financial Times: De La Rue, the British banknote printer, will focus on its anti-counterfeiting business after a tough start to the year.
  • The Guardian: The role of corporate law firm Linklaters in advising on last year’s flotation of Oleg Deripaska’s En+ has prompted the Treasury select committee to examine how Russian companies use the City of London.
  • Financial Times: Sales proceeds from the flagship week of art auctions in New York has surpassed estimates and generated more than $1.7 billion, eclipsing the $1.5 billion haul from last May’s New York auctions.
  • The Guardian: Google has landed into a £3.2 billion legal soup over claims the search engine giant bypassed the privacy settings of Apple’s Safari browser to collate personal information from 4.4 million iPhone users in the UK.
  • The Daily Telegraph: HMD Global, producer of new re-born Nokia phones, has secured a $1 billion valuation following a year of sales.
  • Financial Times: Hyundai Motor was forced on Monday to “re-evaluate” a controversial $8.8 billion restructuring plan by a handful of foreign investors, including activist hedge fund Elliott Management.
  • Daily Mail: Marks & Spencer has appointed Dixons Carphone’s former UK and Ireland chief executive Katie Bickerstaffe to its board.
  • The Times: TSB has dismissed research by one of its analysts, RBC Capital Markets, which claimed that the lender will face £67 million of costs related to its bungled IT upgrade; the bank estimated the costs to be around £30 million.
  • Financial Times: After fending off billionaire industrialist Vincent Bollore, Ubisoft chief executive Yves Guillemot is now focusing on China, esports and growing digital distribution in the near term.
  • The Daily Telegraph: British economy could be headed towards a rebound as IHS Markit's household finance index shows that families are increasingly upbeat about their finances due to strong jobs market and falling inflation.

Share tips, comment and bids

  • The Times (Tempus share tips): HOLD Ryanair; BUY Gateley.
  • Daily Mail (Midas share tips update): Hold on until M&S fortunes revive.
  • The Daily Telegraph: British Airways’ owner International Airlines Group is preparing a third bid for no-frills rival Norwegian that would value the airline at £1.3 billion.
  • Financial Times: Takeda Pharmaceutical’s chief executive Christophe Weber said that the company’s £46 billion acquisition of rare diseases specialist Shire will make it more “resilient” to pricing pressures in the US and help focus on innovative medicines.
  • The Times: Ministers do not intend to refer Comcast’s £22 billion bid for Sky to competition authorities.
  • Financial Times: Blackstone and Goldman Sach have sold fast-growing data provider Ipreo to IHS Markit for $1.86 billion.
  • The Times: GE Transportation, the leading maker of diesel-electric locomotives in North America, has struck an $11.1 billion deal to merge with Wabtec, which builds trains and provides parts for the rail industry.
  • Financial Times: Fifth Third Bancorp, one of the biggest banks in the north-eastern US, has acquired MB Financial, the second-largest bank headquartered in Chicago, potentially setting off a wave of consolidation.
  • The Times (Comment): Buffett’s silence speaks volumes about state of the stock market.

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