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In the Papers - Travis Perkins, British Airways, Nestlé, Ocado

Published: 08:23 28 Jun 2017 BST

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Newspaper Summary

The Times

Bank puts its foot down over mortgage lending rules: The Bank of England has tightened up mortgage rules first implemented in 2014, saying that some lenders had forgotten the lessons of the past.

IMF rejects Trump’s boasts on growth: The International Monetary Fund poured cold water on President Trump’s economic plans as it cut its growth forecast for the United States.

Carpetright is standing tall despite profits plunge: Carpetright’s statutory pre-tax profits plunged by 93% last year but the seller of carpets, floor tiles and beds said that it had made “significant strategic progress”.

QE talk sends euro soaring: Investors piled in behind the euro after Mario Draghi hinted at a subtle shift in sentiment at the European Central Bank that raises the prospect of an early end to its stimulus programme.

Beauty product sales cannot hide scale of task facing Debenhams: The scale of the task facing Sergio Bucher as Chief Executive of Debenhams was laid bare when the department stores chain warned of the threat posed by market volatility on the high street.

Clock starts ticking on next AIB shares sale: The Irish government could sell another tranche of shares in Allied Irish Banks within the next 12 months if it can get the agreement of the main opposition party.

Travis Perkins hires Stuart Chambers, former Chairman of Arm Holdings: Travis Perkins has turned to the man who sold Britain’s largest technology company to the Japanese to lead its board.

The Independent

Household bills rose twice as fast as salaries over last decade: The cost of household bills have risen twice as fast as salaries over the last decade, according to a study.

Trump’s millionaire supporters are deserting him over dysfunction: When he was running for the White House, Donald Trump used to constantly brag about how wealthy he was.

Airlines must refund fare for cancelled flight reservations: A London barrister has won a landmark case which could see airlines forced to hand back hundreds or thousands of pounds to passengers who have had their reservations cancelled.

City analysts predict Theresa May will only last a few months as PM: Wall Street bank Citigroup has predicted that Theresa May’s Government will not last longer than a few months and that there will likely be another general election within the next year.

Thomas Cook plane fault to cost airline half-a-million pounds: Hundreds of Thomas Cook Airlines passengers have had their Cuban holiday extended by more than 24 hours after an inflight mechanical incident involving an Airbus A330. They will be paid £530 for the inconvenience caused.

Inflation adds £133 to average U.K. household’s annual shopping bill: Inflation has added the equivalent of seven extra shops to the average household’s annual grocery bill as supermarkets saw their highest sales growth in five years, figures show.

Google, Microsoft urge U.S. federal court to protect gay employees: Dozens of companies, including Alphabet’s Google, Microsoft, CBS and Viacom urged a U.S. federal appeals court on Monday to rule that a law banning sex discrimination in the workplace offers protections to gay employees.

Sainsbury’s recalls sandwich fillers over Listeria fears: Sainsbury’s has announced that it is recalling some of its deli sandwich filler products warning that they might contain Listeria.

BA cancels dozens of flights ahead of cabin crew walk-out: Thousands of British Airways passengers are learning that their flights have been cancelled because of the unprecedented 16-day strike by some cabin crew.

Hedge funds take aim at struggling high street retailers including Debenhams, Marks & Spencer and Next: Hedge funds have significantly stepped up bets against Britain’s traditional high street retailers, as the sector struggles with online competition, worries about a stretched consumer and weakening sales and profits.

The Daily Telegraph

Bank of England orders banks to set aside an extra £11.4 billion over fears of rising consumer credit: Banks are “forgetting the lessons” of the financial crisis, increasing the risk of reckless lending which could land them — and the wider economy — in trouble later, Mark Carney has warned.

Swift repeat of banking crisis unlikely, says Yellen: Major reforms in the wake of the global financial crisis have made another banking meltdown unlikely “in our lifetimes”, according to the Chairman of the U.S. Federal Reserve.

Nestlé launches £16 billion buyback days after activist launches assault: Kit Kat maker Nestlé has launched a 20 billion Swiss franc (£16.3 billion) share buyback program just days after prolific U.S. activist investor Dan Loeb disclosed a huge stake in the world’s largest food company and urged it to take such a step.

Co-op Bank set to announce £700 million rescue deal: Co-operative Bank is poised to unveil a £700 million rescue deal with its U.S. hedge fund owners that will avert a collapse of the loss-making lender.

Queen’s Christmas cracker supplier wraps up bumper profits: Party supplies purveyor IG Design Group has posted big leaps in profit and revenue as U.S. expansion and growing consumer appetite for greetings cards, gift wrap and partyware boosted the firm’s numbers.

Fidelity’s push to overhaul Bosses’ share bonuses bears fruit: Almost two-thirds of Britain’s biggest listed companies now require their top Executives to hold on to share bonuses for at least five years, according to one of the world’s largest asset managers that has pushed to overhaul Executive pay.

The Questor Column:

Buy Centrica – the shares are back at 2005 levels and dividend yield is almost 6%: After a testing three-year spell characterised by profit warnings, dividend cuts and pressure on prices from the public and regulator alike, Centrica may seem an unlikely candidate for inclusion in your portfolio. A meeting with analysts last week looked like a step in the right direction. A plan to sell power plants and some oil exploration and production assets means Centrica is raising cash and reducing its capital expenditure. This brings two possible benefits. First, the firm is refocusing its operations, as the money received from the disposals will be reinvested in its energy supply operations, and advanced home and energy management services such as Hive. Second, cashflow should improve, to the benefit of the dividend. Centrica is targeting a 3%-5% annual improvement in free cashflow and it is cash that funds the precious payment to investors. An unchanged dividend of 12p a share equates to a yield of 5.8%, and improved earnings and cashflow cover could make that look tempting to income seekers. Question marks remain, not least the regulatory environment. Theresa May appears to have abandoned plans for the Government to impose price caps directly, as the Queen’s Speech placed the burden back on Ofgem, the regulator. Questor says ‘Buy’.

Update: Sky: It is now crunch time for the £11.7 billion bid from 21st Century Fox for Sky. Karen Bradley, the Culture Secretary, is studying the views of Ofcom, the regulator, on whether the deal should be approved and will reportedly make her opinions known by Thursday at the latest. Investors are clearly nervous that the deal will be blocked as Sky is still trading below the £10.75 offered for each share by the U.S.-quoted Murdoch vehicle. Once the Minister has her say there is scope for further representations before the final decision. Our initial look at Sky last Octoberis still showing a profit of almost 8%. A successful bid would bring short-term returns but even if it fails the underlying business still looks interesting thanks to its cashflow. Questor says ‘Buy’.

The Guardian

Singhsbury’s store becomes Morrisinghs after legal threat: A shopkeeper has dealt with the threat of legal action from Sainsbury’s over his similarly named store by changing its name from Singhsbury’s to Morrisinghs.

Ocado’s self-drive vehicle makes deliveries in first U.K. trials: Ocado has sent a self-driving truck trundling through the backstreets of Woolwich, south-east London, as part of the U.K.’s first trial of autonomous grocery deliveries.

Ladbrokes could face inquiry after betting addicts’ details found in bin bag: Ladbrokes could face an investigation from the gambling regulator over an incident in which confidential information about betting addicts, including photos, names and addresses, was found in a bin bag on the street.

World’s first floating windfarm to take shape off coast of Scotland: The world’s first floating windfarm has taken to the seas in a sign that a technology once confined to research and development drawing boards is finally ready to unlock expanses of ocean for generating renewable power.

Ice-cream and booze fuel sales scorcher for supermarkets: Booming sales of ice-cream, gin and cider during the heatwave have combined with a jump in inflation to deliver the biggest rise in supermarket sales in more than five years.

Sky Sports to replace numbered channels and slash prices in revamp: Sky is scrapping its numbered sports channels and replacing them with themed offerings focused on specific sports – led by football, golf and cricket – as it combats falling viewer numbers with a branding revamp and a cheaper viewing package.

Daily Mail

Entire boardroom is purged at gas storage firm Infrastrata sending shares soaring: More than 55% of shareholders voted to remove all four of the company’s remaining board members, including former Chief Executive Andrew Hindle and Chairman Kenneth Ratcliff.

Former BBC reporter quits £400,000 analyst role with JP Morgan to go back into journalism: Former BBC reporter Stephanie Flanders is quitting her £400,000 analyst role with JP Morgan to work for Bloomberg, according to friends, because she misses journalism.

Tesco launches one-hour delivery service in London for up to 20 food items: Supermarket Tesco has launched a one-hour delivery service in London allowing customers to order up to 20 food items on the Tesco Now app for £7.99.

Investors tune in for a £200 million music royalties fund started by Ex-Manager of Guns ‘N’ Roses: The former manager of Guns N’ Roses is launching a fund to make money out of music royalties. The Hipgnosis Songs Fund, set up by Merck Mercuriadis, is to list on the stock exchange next month in a £200 million flotation.

Banks face £1.7 billion loss linked to car finance market: Banks risk losses of around £1.7billion if the value of second-hand cars keeps falling, the Bank of England has warned. About £17billion of major banks’ cash is directly exposed to the ballooning car finance market – and there are fears it is heading for collapse.

Harley-Davidson gears up for a fight for rival: Harley-Davidson could be about to buy its Italian rival Ducati. The legendary U.S. motorcycle maker is reported to be lining up a £1.3billion takeover bid for Ducati, which is owned by Volkswagen.

Online agent eDreams shrugs off Ryanair row to report rising sales: Online travel agency eDreams has reported rising sales despite a bitter tussle with Ryanair.

Daily Express

Young workers sleepwalking into £9,000 cash shortfall by not saving enough: Seven in 10 younger workers are sleepwalking towards a £9,000 cash shortfall in their pension because they are not saving enough, experts have warned.

‘A grave mistake’ Germany furious as Italy allowed to break EU banking rules: Germany has lashed out at bureaucrats in Brussels after it allowed Italy to bend official rules, clearing Rome to pump billions of taxpayers’ cash into struggling banks.

Firm finds ‘significant’ reservoir in Weald Basin and North Sea delivers: U.K. oil and gas (Ukog) shares rose as the firm said it had found more oil in a ‘significant’ discovery.

Wetherspoon Chief Tim Martin announces huge £13 million expansion in Ireland: JD Wetherspoon has shrugged off Brexit concerns with a record single investment to continue its expansion in Ireland.

Inflation and soaring temperatures deliver fastest supermarket sales growth for five years: Soaring temperatures and rising inflation have delivered the fastest growth in supermarket sales for more than five years.

China’s huge debt bubble risk to Britain’s stability, warns Bank of England: Britain could be dragged into a financial crisis if China’s huge debt bubble collapses, the Bank of England has warned.

The Scottish Herald

Pubs group hits out at Heineken sell-off plan: Heineken has offered to sell pubs across the U.K. to ease competition concerns over its £300 million acquisition of part of the Punch Taverns estate.

Private bank Hampden drives deposits and lending in first year: Hampden & Co has underlined the appeal that its traditional banking approach holds for clients as it ramped up deposits and lending in its first full year of trading.

Scottish Water hails surge in investment as complaints fall: Scottish Water has achieved record customer satisfaction levels in the year to 31 March and increased investment in infrastruc ture by 30% to £627 million, from £483 million in the preceding period.

North Sea field delays hit profits at Petrofac: Delays on a flagship North Sea field have taken a toll on profits at Petrofac, the oil services giant which is a big employer in Scotland.

Fife butcher moves on to high street store after success at farmers’ markets: Puddeblub, the butchery firm that made its name at farmers markets, is taking a chance on high street retailing with a store in Kirkcaldy.

The Scotsman

Aberfoyle’s Forest Hills Hotel unveils £3.5 million makeover: The luxury Macdonald Forest Hills Hotel and Spa has unveiled a multi-million-pound renovation

Google fined record £2.1 billion for breaking EU competition rules: Google has been hit with a record fine of €2.42 billion (£2.1 billion) after breaching European competition rules with its online shopping service.

‘Milestone’ as Glasgow’s Clydeside Distillery appoints manager: The Clydeside Distillery, Glasgow’s newest whisky venture, has appointed Alistair McDonald as distillery manager.

Law firm Dickson Minto breaks into City’s top three: Dickson Minto, the Edinburgh-based corporate legal boutique, has broken into the top tier of advisers to Britain’s biggest listed companies.

£1 million fund aims to boost green ideas in manufacturing sector: Manufacturing businesses with innovative green ideas are being urged to tap into £1 million of funding currently available from Zero Waste Scotland.

Marks & Spencer building science into beef supply chain: A proposal that would see a ground-breaking partnership between Aberdeen Angus beef producers, their breed society, gene technology firms and a major retailer has been revealed.

City A.M.

The U.S. Supreme Court will hear a case to legalise sports betting in New Jersey: The U.S. Supreme Court agreed to hear a bid to revive a state law legalising sports betting.

Transport for London pushes back introduction of English written tests for private hire drivers pending Uber’s appeal: Transport for London (TfL) has announced it will push back the introduction of a written English language test for private hire drivers from September this year to April 2018, after Uber won its right to appeal the matter.

Regulator outlines case it had on Sir Philip Green before £363 million BHS settlement: The Pensions Regulator (TPR) believes BHS tycoon Sir Philip Green took a close interest in the retailer’s pension funds during his ownership of the firm despite his protestations to MPs that he did not take part in conversations about the schemes.

Trinidad oil producer Touchstone Exploration targets growth after its first day of trading on Aim: Touchstone Exploration is making headway on its aim to become the largest onshore oil producer in Trinidad and Tobago.

Travelodge goes on recruitment drive in London as 100 more hotels on the cards for the capital: Budget hotel giant Travelodge is creating over 200 jobs as part of its recruitment drive in London.

Volvo and Autoliv announce tie-up with artificial intelligence firm Nvidia in race to get driverless cars on sale by 2021: Volvo and Swedish car safety supplier Autoliv have teamed up with artificial intelligence firm Nvidia in their latest move in the driverless car race.

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