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In the Papers - BAE Systems, Uber, Tesla, Apple

Published: 08:25 03 Aug 2017 BST

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Newspaper Summary

The Times

Goodnight Irene, the most reviled woman in U.K. corporate history: Ding-dong, the witch of Somerdale is dead. Irene Rosenfeld, the American businesswoman who shut a Cadbury factory days after promising not to and then deemed a parliamentary inquiry as a waste of her time, is on the way out.

Jacobs snaps up top British engineer CH2M: The government’s favourite infrastructure and engineering consultant, CH2 million Hill, is to be taken over by its U.S. rival in a $3.35 billion deal. A fortnight after The Times revealed that Jacobs had approached CH2 million Hill, the two companies announced the transaction.

BAE needs evolution, not revolution, new Boss says: The new Chief Executive of BAE Systems signalled that he would not be making any big changes to the defence group’s strategy as he reported a rise in first-half profits.

Standard Chartered fails to share profits: Standard Chartered’s concerns about the outlook for the global economy have resulted in the Asia-focused lender saying that it would not resume dividend payments despite reporting an 82% rise in pre-tax profits.

Net a Porter strikes deal with Ferrari: Interim sales at Yoox Net A Porter have exceeded €1 billion for the first time after a strong performance in its key markets in North America and the Asia-Pacific region.

Google and Facebook should pay for taking news stories, says Johnston Press Chief: Google and Facebook should be made to pay a levy for the news they take from other media outlets and distribute on their websites unless they agree to share more of their advertising revenue, the head of one of the U.K.’s biggest newspaper groups has said.

Builders merchant proves workmanlike: Pre-tax profits at the builders merchants, which also owns Wickes, BSS and Toolstation, fell by 4.5% to £168 million in the first half on revenues up 3.5% to £3.2 billion.

The Independent

Male FTSE 100 Chief Executives earn 77% more than female counterparts: The male Chief Executives of the U.K.’s biggest publicly listed firms earn on average 77% more than their female counterparts, new research has found, adding fuel to the raging debate about gender inequality in senior pay.

Brexit exodus from London ‘causing house prices to surge in Dublin’: House prices are set to surge across the Irish Sea as finance firms flee the City of London following the Brexit vote.

Next recalls children’s shoes with lining linked to cancer: High street retailer Next is recalling a pair of children’s shoes after they were found to contain a potentially harmful substance which might cause cancer.

Uber drivers ‘working together to create price surge’: Uber drivers are deliberately going offline in unison so that prices surge and they can charge customers more when they log back into the app, according to new research.

U.K. construction activity slumps to 11-month low: Construction activity slowed to an 11-month low in July on the back of political uncertainty and nervousness among businesses about Brexit, according to the latest survey snapshot of the sector.

Kanye West is suing Lloyd’s of London for $10 million over cancelled concerts: Kanye West’s company is reportedly suing various syndicates of Lloyds of London for $10 million ($7.6 million) after the hip hop star cancelled a string of concerts last year and checked into a neuro-psychiatric centre in Los Angeles.

Deutsche Bank foresees 4,000 U.K. jobs shifted to the EU after Brexit: Deutsche Bank’s most likely Brexit scenario foresees shifting about 4,000 jobs to continental Europe from the U.K. over several years, according to those briefed on the planning.

Bitcoin ‘clone’ sees a slow start following split: Bitcoin’s underlying software code was split on Tuesday, generating a new clone called “Bitcoin Cash,” but the new virtual currency got off to a slow start due to lacklustre support for its network.

The Daily Telegraph

Commercial broadcasters overtake BBC as DAB allows London stations to go nationwide: More Britons are listening to commercial radio than BBC stations consistently for the first time in nearly a century of broadcasting, according to figures from the media regulator.

B&M Bargains moves into convenience retailing with £152 million swoop on Heron Foods: Discount retailer B&M Bargains is the latest company to take part in the frenzied consolidation of the convenience food market with a £152 million swoop on Northern Grocer Heron Food Group.

Ex-energy Chiefs warn Big Six to ‘adapt or die’: Britain’s largest energy companies could face an existential threat in the wake of a technology boom which threatens to upend the traditional utility business model, according to former energy Chiefs.

Tesla’s spend hits record highs amid ramp-up for ‘affordable’ car: Tesla expects to spend more than double its 2016 figure this year, after burning through a record amount in its second quarter as it ramps up production of its most “affordable” electric car to date.

Germany strikes deal with car giants VW, BMW and Daimler to reduce diesel emissions: Germany’s car makers have agreed to update diesel cars already on the roads to slash the amount of pollution they pump out after a showdown with the government.

Funeral company Dignity enjoys profit jump as death rate rises: Profits at Dignity rose by 9% in the first half of the year as the funeral company was boosted by a rise in the number of deaths in the U.K.

Banks strong enough to cope well through a slowdown, says Moody’s: Britain’s banks are strong enough to stay profitable through any likely stress from an economic slowdown, as the time they spent building up capital buffers is paying off, analysts at credit ratings agency Moody’s believe.

RSA Boss Stephen Hester shrugs off dividend discontent as profits soar: Criticising RSA’s recent shareholder payout is like “dancing on the head of a pin” given it was so close to the City’s forecast, Chief Executive Stephen Hester has argued.

The Questor Column:

Bid restores Revolution Bars’ fortunes, but investors should hold out for more: Revolution Bars, which also owns the Revolución de Cuba brand, is the stock concerned. We tipped it first in November last year at 178p; the shares closed last night almost unchanged from that level at 176.5p. It has been a dramatic ride, however. After our tip the shares quickly soared to about 230p, and we reiterated our buy stance at 224.5p in March, but the price had fallen back to about 205p by May, just before a profits warning that caused the shares to plunge by 40% to 122.25p. Despite this we stuck with the shares, rating them a “hold” at 112p on May 24. The shares then fell further to a record low of 105.5p in early July, although they recovered somewhat to 134.5p later in the month following a trading statement that steadied investors’ nerves. But a much more substantial rise took place on Monday, when the announcement of a 200p-a-share bid from a rival group, Stonegate Pub Company, sent the share price 44.8% higher to 181p. The upshot is that readers who bought as a result of our first tip have regained almost all their losses, while those who bought at 224.5p in March have seen their paper loss narrow to 21%, compared with 53% when the shares hit their record low last month. Questor says ‘Hold’.

Update: Lok’nStore: Readers who held on to shares in Lok’nStore, which runs self-storage facilities, following our tip in October last year have also experienced a volatile ride, although none will have lost money as the price has always been above the 381p level at which we tipped them. The shares, which we backed for the firm’s record of steady growth, rose strongly in the wake of our tip, only to fall back again to just under 400p. Following further rises and falls, the price stands little changed from our tip, closing last night at 387.5p. At the interim stage in April the company announced a 4.5% rise in turnover, a 13.5% increase in “adjusted” pre-tax profits and a 12.4% rise in the dividend. Net asset value per share rose by 26.1% and net debt fell by 35.3%. The group said it was “confident” about the outlook, adding that it was “well positioned for future growth”. Mark Slater, who holds the shares in various funds run by his firm, Slater Investments, said the case for holding the stock had “slightly improved in that some time has gone by and the shares haven’t moved much in the past six to 12 months”. Questor says ‘Hold’.

The Guardian

Dow soars to record high as it crosses 22,000 mark for the first time: The Dow Jones Industrial Average has gone above the 22,000 mark for the first time, boosted by bumper company earnings and a weak dollar, with investors shrugging off the latest upheavals in the White House.

Apple hints iPhone 8 won’t be delayed as company’s shares hit record high: Apple shares soared to an all-time high on Tuesday afternoon after the tech company announced it had sold 41 million iPhones in the last three months. Apple also appeared to scotch rumors that the iPhone 8 – the phone that will mark the 10th anniversary of the original model – has been delayed. Profits were up by 11.9%, to $8.72 billion.

FTSE 100 Chiefs earn 160 times the average wage, study reveals: Ordinary employees would have to work for 160 years to earn the average remuneration of FTSE 100 Chief Executives in 2016, according to new research.

BA passengers at Gatwick and Heathrow hit by check-in delays: British Airways travellers faced delays at Heathrow and Gatwick on Wednesday after a temporary check-in problem.

London’s reputation at risk from watering down City rules, IoD warns: London’s world-class reputation for corporate governance is at risk if the City regulator presses ahead with plans to water down stock market rules for companies owned by sovereign wealth funds, business leaders have warned.

Daily Mail

Wall Street stock market hits highest levels ever as Apple shares jump 6% to all-time highs: The Dow Jones Industrial index hit all-time highs above 22,000 as shares in tech giant Apple jumped 6% on the open.

Rio Tinto shareholders hit the jackpot as mining giant announces bumper dividend and share buyback: Shareholders in mining giant Rio Tinto are set to pocket a record interim dividend and a further $1 billion (£758 million) in share buybacks after the company more than doubled its profits.

Strong end to the Premier League season from Chelsea, Arsenal and Tottenham dent William Hill profits: A strong end to the Premier League season from London clubs Chelsea, Arsenal and Tottenham helped dent profits at William Hill in the first half of the year.

Asda profits slump by 19% as Walmart-owned supermarket giant falls foul of the U.K. price wars: Asda has spelt out exactly how disastrous 2016 was for its fortunes as it revealed some disappointing annual results. Profits collapsed by close to 19% to hit £791.7 million as the company wilted under the pressure of Britain’s supermarket wars.

World’s top kettle technology maker Strix set to go public with a £190 million flotation on the London Stock Exchange: The world’s top kettle technology manufacturer is set to go public after a £190 million flotation on the London Stock Exchange. Strix makes safety controls which switch the devices off when the water has boiled. The business fits out 38% of the 174 million kettles sold across the globe each year.

Daily Express

Baby boomers expect to work past their state pension age: Large numbers of baby boomers expect to work past their state pension age, according to a report urging more “ageing-friendly” employment opportunities.

Desperate ECB demands harsh penalties on eurozone countries: The European Central Bank (ECB) has called for greater punishments on those eurozone countries that fail to implement much need monetary reforms in a bid to ward off a looming financial crisis in the currency

Deutsche Bank issues staggering warning on German economy: Germany’s economy is at risk of overheating and burning out as deceptive indicators mask worrying threats, the country’s biggest lender has warned.

Ikea launches solar panel battery storage that could slash electricity bills by hundreds: Homeware giant Ikea has launched solar panel battery that could save homeowners hundreds of pounds a year on electricity bills - but cost thousands of pounds upfront.

Germany’s second biggest bank Commerzbank posts unexpected massive loss: Germany’s second biggest bank Commerzbank is facing an uncertain future after posting massive losses of more than €400 million.

Interest rates expected to stay at 0.25% despite economists calling for rise: The Bank of England is expected to keep interest rates unchanged on Thursday after lacklustre economic growth and easing inflation has dampened speculation over a hike.

The Scottish Herald

AG Barr grows sales ahead of market but profit margins squeezed: Soft Drinks group AG Barr has hailed the success of its latest sugar-free offering, Irn-Bru Xtra, as it reported an eight% lift in first half sales.

Economy worries weigh on building sector: U.K. construction sector growth slowed sharply in July to its weakest pace in 11 months, a survey has shown, with economic and political worries cited as a drag amid Brexit uncertainty.

Entrepreneurial minds focused on tyres: Entrepreneurial Scotland has teamed up with the Scottish Environment Protection Agency to explore new ventures through which waste tyres can be turned into viable business opportunities over the next five years.

Weak pound helps Aggreko in first half: Currency and fuel price fluctuations bolstered Aggreko’s financials in the first half of this year, adding £93 million to its turnover figure and £9 million to its operating profit.

Profits slip at Devro but sales increase by 10%: Sausage skin manufacturer Devro has reported a 4.3% fall in underlying pre-tax profits in its interim results.

The Bottom Line: After a patient wait, the team at the Ardnamurchan Distillery can finally say they have Scotch whisky in their warehouse.

Watchdog concerned by Wood Group deal: The competition watchdog has voiced serious concerns about Aberdeen-based Wood Group’s planned £2.2 billion takeover of the Amec Foster Wheeler business.

£3.6 million EU grant for biotech firm: Life science firm TC BioPharm has won a €4 million (£3.6 million) grant from the European Union to help it develop therapies for tumour types such as malignant melanoma, kidney, and lung cancer.

The Scotsman

Johnston Press hails ‘milestone’ first half as revenues rise: Newspaper publisher Johnston Press hailed a strong half-year performance including a double-digit hike in digital advertising revenues and audience numbers.

Edinburgh’s Miller Homes changes hands in £655 million deal: Edinburgh-based housebuilder Miller Homes is being snapped up by private equity group Bridgepoint in a deal worth £655 million.

Motoring festival gives spark to Glasgow’s economy: Glasgow’s economy is gearing up for a multi-million-pound boost as thousands of petrolheads descend on the city this weekend.

Scotland facing ageing population timebomb: Scotland is facing a demographic time bomb in the coming decades with a sharp rise in the older population, prompting fears over how hard-pressed services will cope.

City A.M.

Beancounters and legal eagles contribute £15.5 billion towards the exchequer: Britain’s accountants and lawyers generate £15.5 billion towards the U.K.’s public finances, a report released has revealed.

Wonder Woman powers up Time Warner’s second quarter earnings: Media conglomerate Time Warner’s profit rose to beat analyst expectations in the second quarter thanks to blockbuster hit Wonder Woman.

Furniture giant DFS is set to unveil a deal to buy smaller rival Sofology: DFS is set to announce a takeover deal for Sofology this week, according to reports, after warning its profits would take a hit from a weakened trading environment in June.

Argos staff gear up for strike in mid-August: Staff working across Argos’ distribution network are readying themselves to strike for three weeks from the middle of August.

BP partner Kosmos Energy plots London Stock Exchange listing to lure European investors: Kosmos Energy announced it will list on the London Stock Exchange (LSE) by the end of September as it works to attract more European investors.

Barclays signs up office space in Dublin in the run-up to Brexit: Barclays has signed up more office space in Dublin as part of its push to expand its operations in the Irish capital following Brexit.

Allianz closes in on a deal to buy a stake in £1 billion LV= insurance division: British insurer LV= is close to sealing a deal with Allianz for a minority stake in its general insurance operations, according to reports.

Bidder from down under comes up top as Webjet buys JacTravel for £200 million: Online travel agency Webjet has landed a deal to buy business-to-business (B2B) travel provider JacTravel for £200 million.

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