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Newspaper Briefing, including 'Spotlight back on Barclays and Lloyds as both banks present half year results to investors' - Daily Mail

Newspaper Briefing, including 'Spotlight back on Barclays and Lloyds as both banks present half year results to investors' - Daily Mail

The Times

Rakes decision means no progress for Barclays: The leadership crisis at Barclays has deepened after Sir Mike Rake ruled himself out of contention for the Chairmanship of the bank. The search for a replacement for Marcus Agius suffered a setback when the BT Chairman, who had been regarded as the frontrunner, withdrew from the race amid disagreement among institutional investors about his suitability for the job.

No quarter given in report into short-termism: A government review into City short-termism is expected to recommend an end to quarterly reporting of accounts by companies. The report by John Kay, of the London School of Economics, is also set to argue against the obligation for managements to provide interim trading updates every three months.

Forever 21 keen to stay fashionable in U.K.: Forever 21, the American-based fast-fashion chain that made its British debut 18 months ago, has pledged to push on with its expansion programme after cutting its cloth for the British market. The retailer, owned by the Chang family, of Los Angeles, is using Britain as the bridgehead for an entry to the European market.

Americas heatwave sends cost of cattle feed soaring: The impact of the worst drought to hit the United States in more than half a century has been felt in Britain by an importer that was forced to pay record prices for thousands of tonnes of cattle feed last week.

MPs accuse Treasury over energy policy: A radical plan to overhaul the electricity market risks being botched by the Treasury and needlessly forcing up family energy bills, according to MPs. They have also accused the Department of Energy and Climate Change, responsible for a plan to attract 110 billion of funding in new nuclear reactors and wind farms, of not understanding investors.

Pensions lifeboat could sink company: The future of a 140-year-old Scottish cashmere maker was hanging by a thread after its plans to offload its stricken pension scheme collapsed in acrimony. Dawson International, which used to make the Pringle and Ballantyne brands and now supplies garments to couture houses and department stores, said that it had failed to agree a deal for its scheme with either the Pension Protection Fund or the regulator.

Its worth avoiding lawyers, architects and disasters: Escaping big disaster payouts and proving canny with its underwriting risks meant that Beazley roared back into profit during the first half. The Lloyds of London insurer made pretax profits of $112.9 million (72.3 million) for the six months to 30 June, having plunged to a $24.2 million loss in the same period last year after an unprecedented spate of natural disasters.

The haves and have-nots on high street: The top 3% of Britains shopping areas capture 25% of spending on non-essential items, highlighting a widening gulf between the best and worst high streets and shopping centres.

The Independent

Under-fire payday loan firms set to unveil code of conduct: Payday lenders are to promise to clean up their act following a barrage of criticism from consumer groups and deBT charities over the industrys high interest charges and lending practices.

Investors scoop up a divi record of 22.6 billion: Payouts to shareholders by U.K. companies have soared 18% in the last three months to a record quarterly high of 22.6 billion. The boom has encouraged Capita Registrars, which monitors U.K. dividends, to raise its forecast for the year by 2 billion to an annual cash record of 78.3 billion.

Dame Vivienne changes back into black: Vivienne Westwood is still on trend after more than 40 years in the business. Profit for 2011 was 435,292 after a loss of 610,275 the year before. Turnover for the period rose 7.1% to 25.5 million while gross profit rocketed 39% to 10.3 million from 7.4 million the previous year.

Advertising picture at ITV set to be gloomier than forecast: The City will be anxious to know the depth of a worse-than-expected downturn in TV advertising when the Downton Abbey broadcaster ITV reports half year results on Thursday.

Lollies on ice but emerging markets set to lift Unilever: A damp, cool summer for much of northern Europe has meant Walls Magnum, Twister, Calippo and Mini Milk ices have been stuck in the freezer rather than being gobbled up. Unilever, the Owner of Walls, will reveal that conditions in Europe continue to be tough in its second quarter results on Thursday.

The Daily Telegraph

Lloyds in further loan sale turmoil: Lloyds Banking Group faces the indignity of another cut price sell off as buyers walk away from its 1.2 billion Project Lundy auction. The state-backed bank has had to cut the price of the loans from a proposed 70p in the 1 to just 50p after failing to attract viable interest in a sale.

Recruiters face inquiry over 390 million tax avoidance scheme: The tax office is to investigate the recruitment industry following allegations that agencies are running multi-million pound tax avoidance schemes.

HSBC facing North Cyprus legal battle: Britains largest bank, HSBC, is facing legal proceedings in the U.S. over the sale of property in Northern Cyprus.

Food price alert as U.S. woes spread: British consumers will soon feel the squeeze from rising food prices as U.S. crops are hit by Americas worst drought in more than half a century, economists warn.

Kentucky Fried Chicken launches finger lickin degree: Fast food chain, Kentucky Fried Chicken, is launching what is thought to be the first corporate degree course.

Britains answer to Zynga plans Nasdaq flotation: King.com, Britains answer to Angry Birds producer Zynga, is planning to make an initial public offering on Nasdaq next year. The company, which started out making games for consoles, only moved into Facebook games in April 2011, but its launches such as Bubble Witch Saga now attract over 50 million users a month via the social network ranking it second only to Zynga in terms of popularity.

The Questor Column:

Lloyds Banking Group shares will recover over time: The deal to sell more than 600 branches to the Co-op is progress, but it is likely to take many years for a share price recovery. As a forced seller, Lloyds Banking Group was never going to achieve a rich price for 632 of its branches under Project Verde. The Co-op will initially pay 350 million, and there is a deferred payment of 400 million. This is significantly less than the 1.5 billion to 2 billion that was first mooted. Earnings are expected to rise over the next few years, with the current forward earnings multiple of 11.6 falling to 6.6 in 2013 and 5.3 in 2014. Of the analysts monitored by Bloomberg, 16 say buy, 10 say hold and six say sell. However, the average price target is 393/4p, one-third above the current price. The banking sector will continue to be roiled by events. These will come in the form of regulatory pressure, bad deBTs and issues relating to sovereign deBT. Questor thinks the banks share prices will recover substantially but it will take many years. Lloyds Banking Group at 29.94p. Questor Says Hold.

Call up Vodafone in troubled times: Fridays first quarter figures from Vodafone were weak, but the mobile-phone giant is still confident of meeting full year consensus forecasts. Revenue in Spain was down 10%, but emerging markets saw good growth, with Indian revenues up 16.2% and Turkey up 18.7%. However, total revenue fell 7.7% year-on-year to 10.8 billion after disposals. Revenue on a like-for-like basis edged 0.6% higher below a consensus forecast of 0.8%. Dividend cover, as compiled by data group Morningstar, is forecast to fall from 2.61 in 2010 to 1.24 in 2013 and 1.22 in 2014. On Thursday, Fran Shammo said that the board of the Verizon Wireless joint venture with Vodafone does not plan to discuss a dividend payment at its next quarterly board meeting. Despite the tough economic backdrop, Vodafone is still generating significant amounts of cash and cost-cutting plans will be accelerated. With the shares yielding a prospective 7.4% rising to 7.7% and given the groups track record during the depths of the credit crunch, Questor is relatively unconcerned. Vodafone at 180p. Questor Says Buy.

The Guardian

Banks to discuss relaxation of rules in attempt to boost lending: The Financial Services Authority is to summon the management of Britains biggest banks to a meeting to discuss relaxing rules that are being blamed for holding back economic growth by impeding lending to businesses.

Forecast of big British Gas profits rise angers MP: British Gas faces renewed pressure over alleged profiteering amid City predictions that the company will reveal this week that it made 100 million in extra profits in the first six months of the year.

BBC Boss George Entwistle considers Worldwide revamp: The BBCs Director General-designate, George Entwistle, is thought to be considering a strategic repositioning of BBC Worldwide, a move that raises questions over the future of its longstanding Chief Executive, John Smith.

Markets fear for Spanish economy as local governments seek financial aid: Spains regional woes are expected to weigh on financial markets this week after a second local government in three days asked for state aid, increasing fears that the Eurozones fourth largest economy will be forced to seek a full-blown rescue.

Daily Mail

Spotlight back on Barclays and Lloyds as both banks present half year results to investors: The spotlight will be back on two of Britains biggest banks this week as under-fire Barclays and state-backed Lloyds present half year results to investors eager for more positive news about the sector. Barclays is enduring a leadership crisis after Chief Executive Bob Diamond stepped down in the wake of its 290 million fine from U.K. and U.S. regulators for fixing Libor an interbank lending rate.

Profits edge up at BAT despite drag caused by currency fluctuations: British American Tobacco is expected this week to report a sales increase of more than 3% for the first half of 2012. The news will come as BAT seeks to defend itself against increasing regulation over tobacco sales.

Profits at Centrica to rise by a third to 355 million when results posted this week: Profits at the British Gas arm that supplies 15 million customers across the U.K. are expected to rise by a third to 355 million when parent company Centrica posts results this week.

Chairman admits G4S could lose out on public sector contracts following shambles over hiring Olympic guards: The Chairman of embattled G4S has admitted the worlds largest security group could lose out on public sector contracts following the shambles over hiring Olympic guards.

Daily Express

Record dividend payout to hand investors 41 billion: Millions of investors and savers have been given some respite from the turmoil on the financial markets by record dividend payouts by British stock market-listed companies. Quoted firms paid out an all-time high of 22.6 billion in the second quarter of the year, a rise of 18.4% against a year earlier, according to the latest Dividend Monitor from Capita Registers.

Virgin stokes up BMI row: Sir Richard Bransons Virgin Atlantic airline wants the EU to look again at the takeover of BMI by British Airways Owner IAG earlier this year. The cut-price 90 million purchase of BMI from Germanys Lufthansa went ahead in April despite strong protests from Virgin Atlantic, which saw its own ambitions to buy the business thwarted.

3 million expansion fund: A school club specialist which helps children learn new languages, music and sports skills is raising 3 million on Aim. LZYE Group operates from three centres in Hong Kong which have 16,600 members and more than 2,000 children attending courses each week.

The Scottish Herald

Gap plans expansion as profits soar 170%: Gap Group, the plant and tool hire firm, is planning to open several specialist depots in the next two years after reporting a near 170% rise in pretax profit.

RJ McLeod wins 8.5 million contract for Helix project: Civil engineering and building contractor RJ McLeod has won an 8.5 million contract as part of the Helix regeneration project in central Scotland.

Brodies unveils bumper rise in turnover: Brodies has reported a 16% rise in turnover to 42.8 million to cement its position at the top end of the Scottish legal market.

Iomart agrees 20 million credit facility with Lloyds Bank: IT and internet hosting firm Iomart Group has agreed a new 20 million revolving credit facility with its existing lender, to support its growth and acquisition strategy.

ECG lifts full year earnings: Building maintenance company ECG Facilities Services has reported a rise in turnover and profit amid what it described as very challenging trading conditions.

U.K. companies pay out record dividends in second quarter: That outstripped the previous high point for the second quarter of 22 billion which was set in 2007, according to the latest Dividend Monitor from Capita Registrars.

The Scotsman

No party spirit left as lenders set to snub government initiatives: Lending to cash-strapped businesses and households is set to fall sharply this year, despite a raft of government initiatives to encourage banks to lend more, Ernst & Young warned. The accounting firm also said that total income across Britains banks could fall 2.5% to 139 billion because of higher funding costs and increased competition for deposits, but it has predicted the wider economy will return to growth later this year.

Rupert Murdoch falls out of love with papers: Rupert Murdoch has stepped down from the boards overseeing the Sun, Times and Sunday Times, fuelling speculation he is preparing to sell his British newspaper empire. News Corp described the move as a corporate housecleaning exercise linked to the announcement last month that the firm would split into two separate companies a smaller publishing division and a much larger entertainment and TV group.

BioQuarter on the rebound with two more tenancies: Two more companies have taken space at Edinburgh BioQuarter as Scotlands flagship science park bounces back from an American property developer reducing its involvement with the project. Drug discovery outfit TPP Global Development and MV Diagnostics, which makes medical testing kits for goats and sheep, are each taking space in Nine, the bio-incubator centre built at the science park by Scottish Enterprise.

Intelligent Finance future in ECs hands: The future of Intelligent Finance, the Scottish online bank, will be referred back to the European Commission, it emerged. Lloyds Banking Group is to hold talks with EC officials after IF was a surprise withdrawal from last weeks 750 million sale of assets to the Co-operative group. IF was included in the original parcel of assets which Lloyds was forced to sell in exchange for receiving rescue funding from the taxpayer.

City A.M.

Australian surplus questioned: One of the only wealthy economies to be running a government budget surplus, Australia, may fall back into a deficit due to weaker tax revenue, according to a report from Deloitte Access released.

New house prices tick down: Prices in the new homes market slipped in June, as house-builders kept a tight hold on their costs, said SmartNewHomes. The average price of a new home was at 232,292, down 1.2% compared to May, but up 0.4% on the first quarter.

Expected fall in GDP even after huge job boom: The U.K. is still mired in a W-shaped, double-dip recession, according to many analysts predictions of the latest preliminary estimates of GDP, set to be released by the Office for National Statistics on Wednesday.



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