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Newspaper Briefing, including 'Facebook to float in third week of May' - Daily Telegraph
The Times
Gilts: U.K. government bonds gave back early gains to close unchanged in light trading, as many investors were unwilling to commit with Wall Street closed for a public holiday. The March gilt future marked time at 117.1, while the equivalent German bund settled eight ticks lower. In the cash market, the yield on ten-year gilts was steady at 1.97%.
Bet of the day: Since scandal cost Philipp Hildebrand his job as Chairman of the Swiss National Bank, speculators have tested the central banks resolve to keep the Swiss francs peg above 1.20 to the Euro and have driven the currency lower.
Tiddler to watch: Phytopharm shares jumped 16.7% to 91/4p, after the drug development company, which specialises in plant-based medicines, revealed that Cogane, a product already in trials for Parkinsons disease, could have wider uses. Early tests suggested Cogane also had an impact in treating the most common form of motor neurone disease.
The future may be bright, but it wont be Orange: One of Britains best-known brands is set to disappear after the Owner of Orange said that it was considering renaming the mobile operator. The move by Everything Everywhere to ditch both the Orange and T-Mobile brands is the latest step in integrating the networks, which merged in 2009.
Maths PhD not enough to work out bank fees: Exorbitant bank overdraft charges are so complex that even a postgraduate maths student could not work them out, a study has claimed. Which? asked customers to work out the overdraft charges on a range of mock bank statements and found that not one respondent was able to calculate all the fees correctly, including a maths PhD student. The 12 respondents managed to get only seven of forty-eight calculations right between them.
Creditors force Equinox Capital into liquidation: The Founder of the shirt retailer Thomas Pink and HM Revenue & Customs have forced an investment company run by a former Goldman Sachs banker into liquidation. The Companies Court agreed an application from HMRC and the entrepreneur Peter Mullen to order the compulsory winding up of Equinox Capital. HMRC is understood to have claimed that it was owed a six-figure sum in unpaid debts. Mr Mullen has said that he was owed about 488,000, a figure disputed by Christopher Wightman, the Equinox founder.
Peacocks wins some breathing space in which to seek a buyer: Directors at Peacock Group secured a stay of execution after the collapse of emergency debt talks. The company, which trades as Peacocks and Bonmarch, filed a notice of intention to appoint administrators at both discount store chains, which gives it up to ten working days of protection from creditors in which to seek a buyer.
Saudi Arabia lifts oil target to stable $100 a barrel: Motorists, families and businesses are unlikely to enjoy a respite from high fuel prices after Saudi Arabia said that it wanted to keep oil at $100 a barrel. The worlds largest exporter of crude and the only swing producer truly capable of bringing prices down had targeted a $75 price in November 2008.
Tesco keeps chasing international dream: Tesco is opening standalone fashion stores as it tries to build its F&F clothing brand into a global contender. F&F will take its first step outside markets where Tesco already trades by opening in Saudi Arabia this year. The retailer wants Fawaz Abdulaziz Alhokair, its franchise partner, to open 19 stores in the country initially and is already looking at other markets.
Phytopharm taps Chinese herbal knowledge: A drug developed from a traditional Chinese herbal remedy could provide hope for people suffering from motor neurone disease, according to Phytopharm. Shares in the drug development company, which specialises in plant-based medicines, jumped by nearly 1.6p, or 19.8%, to 9p, on news that Cogane, a product already in trials for Parkinsons disease, could have a broader use.
The flats fit for a billionaire, or a racing driver: Monaco is to challenge London as home to the worlds most expensive apartment, with the go-ahead for a 400 million development. The city-state will say that Lord Rogers of Riverside is to design a new building that will sit next to Monacos historic casino and opera house. The existing Sporting dHiver building will be redeveloped to include shops, an auditorium and 36 luxury apartments.
The Independent
Its a Mini PR adventure: 30,000 cars recalled in U.K.: Nearly 30,000 Mini Coopers are to be recalled in Britain after makers detected an electrical fault which could lead cars to catch fire. German car maker BMW said the recall concerns 235,000 vehicles worldwide. Safety checks revealed a problem which can cause the water pump to fail potentially causing the car to overheat and manufacturers are investigating one case in Britain where a fire is being linked to the water pump.
Richemont lifted by the super-rich: Expensive watches and jewellery such as the $20,000 (13,000) Altiplano watch have helped the Swiss luxury goods group Richemont bring in sales of 2.6 billion (2.2 billion) in the last quarter. The luxury goods sector remains one of the strongest globally as the super wealthy keep spending in the face of wider economic turmoil.
Companies told to be open about country risks: The Financial Reporting Council has told companies to be more open about their exposure to debt-ridden European economies and politically unstable Middle East territories. In guidance for Directors, published, Britains corporate governance regulator said firms must provide a balanced and understandable assessment of the companys position and prospects in the context of increased country and currency risk.
Scheduled television will withstand greater range of choice: Despite the growth in the alternatives to scheduled television more than 95% of all television programmes watched in 2012 will be live or within a day of the original broadcast, according to Deloittes latest Media and Technology report, released.
Hammerson loses key tenant for skyscraper: Hammersons proposed 350 million Principal Place skyscraper in London was dealt a major blow, as the main potential tenant walked away from the scheme, blaming financial uncertainty. The developer had been in talks with the law firm CMS Cameron McKenna over letting part of the 50-storey, 850,000 sq ft tower on the fringes of the City and Shoreditch since last summer.
Smart meters may lead to an increase in fuel poverty: Government plans to install a smart meter in every British household could force a significant increase in fuel poverty because the cost of the programme could far outweigh the savings, the Public Accounts Committee will warn. Some 53 million electricity and gas smart meters will be installed in British homes and small businesses between 2014 and 2019 to provide a live display of energy costs and consumption.
Financial Times
Victoria board rejects rebels requisition: Tensions are rising at Victoria, the British carpet maker, where the board has claimed that a formal requisition lodged by a group of rebel shareholders is invalid. Allan Bullock, Victorias Managing Director, and senior management on Monday rebuffed a consortium of rebel shareholders, led by former Chairman Alexander Anton and New Fortress Finance, saying the institutional investor was not a registered shareholder.
Osborne seizes chance to grab Chinas coat tails: George Osbornes push to make London a leading offshore trading centre for the renminbi highlights the opportunity for Britain to prosper from Chinas growing role in international currency markets. For months, the government has been on the defensive over the Citys role as a global financial centre amid what David Cameron has described as a constant attack from new European Union regulations.
U.K. rail operators brace themselves for shake-up: The U.K. rail sector is preparing for a busy three years, with more than half the countrys 19 franchises coming up for renewal. This week the Department for Transport is expected to start the process when it sends out detailed information to the four shortlisted bidders for the contract to run the west coast mainline. The franchise linking London Euston to Birmingham, Manchester and Glasgow is one of the countrys biggest and most lucrative, pulling in 753 million ($1.15 billion) in revenues last year and 39.9 million in pretax profits.
Ex-Worthington Nicholls Finance Chief probed: The body that investigates and disciplines U.K. accountants has filed a formal complaint against Timothy Hunt, who served as Finance Director of Worthington Nicholls, the now defunct air-conditioning specialist. The Accountancy and Actuarial Discipline Board made the move after investigating Mr Hunts conduct in connection with the preparation and approval of the interim financial statements of Worthington Nicholls Group for the six months to 31 March, 2007.
BAE looks abroad to save U.K. shipyards: BAE Systems, Europes largest defence contractor, is in talks with Brazil and Turkey, to secure orders for the companys most advanced warship in the hopes it could save its U.K. shipyards from closure.
Morrisons interest in Iceland Foods cools: Wm Morrisons interest in Iceland Foods is cooling, raising doubts about whether Britains fourth-biggest supermarket chain by market share will mount a 1.5 billion bid for the frozen food specialist. Morrison has been one of the companies expected to make an offer for Iceland Foods, for which second round bids are due to be submitted at the end of this month.
Lex:
Intuitive Surgical: cutting the mustard: Intuitive Surgical has the key ingredients of a go-go growth stock: torrid revenue growth, a profitable business model, and robots. The company, which reports fourth quarter earnings on Friday, makes systems that allow doctors to perform minimally invasive surgery while sitting at a video-game like console, using hand controls to manipulate a scope and tools within the patients body, by way of four mechanical arms. Revenue growth has averaged 40% over the past five years. The business runs on a razors and blades model, with more than half of the revenue from recurring sales of accessories and from service contracts. It is very profitable, due in part to a near monopoly in robotic surgery, and has $2 billion in net cash. All the excitement has left Intuitive shares selling at north of 20 times this years estimated earnings before interest, taxes, depreciation and amortisation. It has little company at this heady altitude, now that some of the biggest momentum stocks, such as Netflix and Green Mountain Coffee Roasters, have cracked. A Capital IQ screen finds only eight other U.S. companies valued at more than $10 billion trading at 20 times ebitda or higher, including Amazon, Groupon and Salesforce.com.
Employee ownership: fair share?: The U.K.s Deputy Prime Minister wants employees in all but the smallest companies to be able to request shares in their employer. Over the past two decades, shares in British companies in which non-board level employees owned more than 10% of the stock outperformed other FTSE All-Share companies by an average of 11% a year, says law firm Field Fisher Waterhouse. The model is retailer John Lewis which is entirely employee-owned, pays a flat-rate bonus to all staff and in the past decade has more than doubled its profit before bonuses and tax to 368 million. Academics, however, are divided on the benefits of shared capitalism (employee share ownership and profit sharing), particularly for employees. Research has found some positive links between such schemes and attitudes towards work. But most employees have no influence on important decisions.
Greece: default settings: Talks between Greece and its private sector bondholders are going nowhere. Both sides may meet again on Wednesday to revive the process, aimed at reducing the amount of debt held by bondholders by 50% to about 100 billion. In the context of the wider Eurozone crisis, the talks are a sideshow. There are two problems with the initiative. One is that Greeces economy is doing far worse than expected: Finance Minister Evangelos Venizelos says gross domestic product probably shrank by more than 6% in 2011. Six months ago, the projection was 3.8%. Greeces financing needs are also growing. Its banks are thought to need 40 billion to recapitalise because of the scale of withdrawals, rather than the 26 billion pencilled in a few months ago. The write-off is supposed to be voluntary. But its terms are too harsh and some bondholders will be too truculent, to achieve that. And it is supposed to be for a minimum of 100 billion, which means that it is not really voluntary. The aim is to cut Greeces debt to GDP ratio to 120% by 2020, from more than 160%. A 50% write-down is unlikely to achieve this given the macro deterioration.
Lombard:
Citys thousand-mile journey begins with yuan step: It is reassuring to hear that George Osborne has agreed to work towards making the City a trading centre for the Chinese currency in partnership with Hong Kong. Economic diplomacy is one of the things Chancellors are paid for. If it were, a big chunk of offshore activity would probably be transacted in London without Mr Osbornes good offices, simply because the City has more capacity than any other European financial centre. Mr Osborne deserves credit for foresight, though he should beware the fondness of the Chinese for striking co-operation agreements with multiple foreign partners. City folk will know the panda has genuinely landed when Chinese banks plant flags across the Square Mile in the tradition of expansionary Japanese predecessors in the 70s and 80s. Meanwhile, the decision of U.S. insurance broking group Aon to relocate its headquarters from Chicago to London is a far more immediate demonstration of the Citys attractions as a business hub.
Flying the nest: There is some numeric voodoo to $7.3 billion, the sum for which Royal Bank of Scotland is likely to sell its aircraft leasing arm. It lacks the power to inflame of 29 million, the number of share options still owned by John Hourican despite the units imminent dismantlement. Instead, deduction of the $7.3 billion agreed with purchaser Sumitomo Mitsui will help RBS shrink the assets it had originally counted as non-core to well below a milestone 100 billion. The ragbag of businesses and loans had a book value of 258 billion when incoming Chief Executive Stephen Hester deemed them superfluous in February 2009 and vowed to get shot of the bulk in five years. The division employs 5,300 people with the odd mission of making themselves unemployed, both through asset sales and the accelerated run-off of loans.
The Daily Telegraph
Oil prices rise on Irans threats to cut off Strait of Hormuz: Oil prices climbed 70 cents to $111.14 a barrel on Monday, after Iran issued fresh threats to cut off up to 17 million barrels per day of oil supply from world markets by shutting down the Strait of Hormuz.
E.ON and ScottishPower complete Big Six price cuts: E.ON and ScottishPower both announced price cuts on Monday, becoming the final two suppliers of the Big Six to enter the fray on household bills since EDF Energy kicked off a price war last week.
Facebook to float in third week of May: The social networking website, which is renowned for how closely it guards its financial performance, will have to divulge key figures in IPO documents filed with the Securities and Exchange Commission (SEC) within the next month, if it is to meet that target.
Rockhopper jumps on talk of Falklands stake sale: Rockhopper, the energy exploration group that has found significant oil reserves off the Falkland Islands, saw its shares jump 10%, after saying it expected to find a partner for its discovery within three months and would not rule out a takeover.
The Guardian
S&P downgrades European bailout fund: Standard & Poors, the credit ratings agency, has stripped Brussels main bailout fund of its AAA status and challenged Eurozone countries to increase their financial support for a collective rescue package or risk a further downgrade. The move forced European leaders onto the back foot following the mass downgrade of nine Eurozone countries by S&P last week.
Costa Concordia: 300 million wiped off ship Owners fortune: More than 300 million has been wiped off the paper fortune of the multibillionaire Boss of the company that owned the stricken cruise liner Costa Concordia. Micky Arison, the flamboyant Chairman, Chief Executive and majority Owner of FTSE 100 Company Carnival, saw a large chunk of his $4.5 billion (2.9 billion) holdings dissolve on Monday as the companys shares lost almost a fifth of their value.
Model industry: carmakers suggest U.K. route to economic recovery: There is an air of refinement to the Bentley factory in Crewe. Timeless skills more akin to furniture making than automotive production remain at the heart of this elite British manufacturer. Yet even here there is evidence of the jarring changes that have yanked a once-parochial British car industry into the modern age.
Unilever workers are crazy to strike over their pensions: Unilever workers are going on strike over their pensions. Theyre crazy when the Pot Noodle to Dove soap firm is only downshifting their retirement incomes from final salary to career average. This is not an offer that deserves to spark a strike, no matter how badly the management have behaved. Their pensions will still rank among the most generous in the country.
RBS sells aircraft leasing business: The Royal Bank of Scotland has confirmed the 4.7 billion ($7.3 billion) sale of its aircraft leasing business, the biggest disposal to date by Chief Executive Stephen Hester as he attempts to get the bailed-out bank back to financial health. The sale of the Dublin-based unit, which has around 200 planes leased to customers such as Ryanair, was developed under the previous management.
Daily Mail
German predator Mller corners Robert Wiseman Dairies for 279.5 million: Britains biggest fresh milk supplier has been sold to a German predator in the first major deal of the year. Robert Wiseman Dairies agreed a 390p-a-share cash bid from privately owned Mller, valuing the Scottish dairy at 279.5 million.
Brain drain as Shell closes research base at Thornton, Cheshire: Shell is moving hundreds of research and development scientists to new locations in a reshuffle that will see Britain lose some of its brightest minds to the U.S. and Germany. The Anglo-Dutch companys main British research base at Thornton, Cheshire, is to be closed, with some 280 jobs transferred to London and Manchester.
Beauty gifts lift High Street chain Boots the Chemist to bumper sales: Strong sales of beauty and cosmetic gifts have helped the Owner of Boots the Chemist buck the gloom on the High Street to post a bumper festive trading update. Private equity owned Alliance Boots has emerged as one of the big winners over Christmas as shoppers flocked to its 2,500 U.K. stores, snapping up what they consider essential health and beauty products.
Broker Views:
Unite Group: Kempen & Co initiated the stock with Overweight rating and a target price of 230.00p
EMED Mining Public Ltd: Fairfax I.S. Limited maintained a Buy rating on the stock, with a target price of 32.00p
BG Group: CA Cheuvreux upgraded the stock to Select List and increased the target price to 1760.00p
Diageo: CA Cheuvreux upgraded the stock to Outperform and increased the target price to 1580.00p
WM Morrison Supermarkets: Deutsche Bank upgraded the stock to Buy and increased the target price to 313.00p
Cairn Energy: Societe Generale downgraded the stock to Hold and decreased the target price to 310.00p
Daily Express
Stamp experts are also coining it with medals: Collectibles company Stanley Gibbons is hoping demand from investors to own the first ever Victoria Cross to be awarded to a British soldier will further drum up profits this year. The medal, awarded to Major John Knox in the Crimea War in 1854, is being sold with the Russian cannonball that blew off his left arm for 500,000.
Single currency battered by Eurozone downgrades: European banks and the Euro came under pressure as they felt the fall-out from the mass downgrades of Eurozone countries and continued uncertainty over Greece. The banks stashed away a record 493 billion (400 billion) overnight with the European Central Bank, a sign they do not have the trust to lend to their rivals. The Euro slipped to 11-year and 17-month lows against the yen and dollar respectively.
Bovis profits hopes: Bovis Homes said housebuyers in the mood to move will combine with cost-cuts and price rises to drive significant profit growth this year. The housebuilder expects to post a 68% profit lift to 31 million in 2011 as sales rose 8% to 2,045 homes. Average selling prices rose 4.5% to 180,100.
Bloomsbury serves festive winners: TV Chef Hugh Fearnley-Whittingstall showed there is plenty of life left in traditional printed books despite the electronic revolution sweeping the publishing industry. His River Cottage Veg Everyday! sold in towering numbers to become Bloomsbury Publishings Christmas bestseller, according to Chief Executive Nigel Newton.
The Scotsman
Kenny Webster sees two firms go bust in move that threatens 230 jobs: Two businesses owned by Scots entrepreneur Kenny Webster soft drinks maker Sangs and petrol station operator Calanike Retailing have gone bust, throwing doubt over 230 jobs.
Construction sector losing confidence: Confidence within the U.K.s construction industry has collapsed with just 5% of small businesses operating in the sector expecting their workloads to increase this year, according to a new report. The Federation of Master Builders state of trade survey found workloads have fallen in each of the past 16 quarters and confidence in the repair, maintenance and improvement (RM&I) market is plunging.
RBS lines up 4.7 billion plane leasing sale: Royal Bank of Scotland is understood to be on the verge of selling its commercial jet leasing business to Sumitomo Mitsui Financial Group of Japan for an estimated 550 billion (4.7 billion) with an announcement expected.
Baxi launches second swoop with 4.5 million Camco deal: Baxi Partnership, the Fife-based investment firm spun out from the eponymous boiler maker, pushed into the renewable energy market by buying an Aim-quoted advisory business for 4.5 million. The Scottish firm will pay alternative power developer Camco International 3.25 million up-front for its advisory services subsidiary and a further 1.25 million over the next two years if it meets performance targets.
Jobs news is tasty food for thought: Food giant Nestl and grocery chain the Co-operative Group unveiled plans to create 500 jobs between them. Swiss firm Nestl unveiled proposals for a further 200 million extension to its factory at Tutbury, in Derbyshire, creating 125 jobs although this will lead to the closure of the firms site at Hayes, in Middlesex.
Planet Soccer kicks off Clydesdale link-up: The company behind Grangemouths Planet Soccer outdoor football complex unveiled a funding deal with Clydesdale Bank. Little Kerse Leisure hopes that the 150,000 loan secured through the U.K. governments Enterprise Finance Guarantee (EFG) scheme can be used to build further sports and leisure facilities on its site.
