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

And Barclays has been cleared of criminal charges related to £12 billion Qatari crisis funding.

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.

1 comment so far. Why not have your say?

alan franklin

May 22, 2018 at 06:39

The bosses of BA should shape up their own appalling airline before moving in to take out an innovative new competitor.

This planned takeover of Norwegian should be blocked as the BA/American duopoly which has about 80 per cent of Heathrow slots is bad news for long suffering passengers.

I now dread flights on BA and will be going with almost anyone else in future if the routes are there.

We have had three terrible BA flights in the past couple of months with seats so hard, badly designed and cramped they are a disgrace. The highlight was the last flight from the Middle East, an hour late and with three blocked toilets. No apologies or explanations were forthcoming.

I have flown many times in several decades but the experience is now more like torture thanks to B. Awful Airlines.

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Scottish Mortgage leads FTSE higher after US recovery

by Daniel Grote on Oct 17, 2018 at 10:36

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