Afternoon Financial Press Review
Below are the key headlines from today’s updated papers, featuring the Financial Times, The Times, The Telegraph, The Daily Mail & more - see the full Press section here.
Watchdog blow to Sainsbury’s deal ‘leaves private equity eyeing Asda’. Asda on Wednesday became a prime target for a private equity bid after its £12 billion merger with larger rival was dealt a huge blow. The competition watchdog demanded that one of the two brands or “significant” numbers of stores be sold, if the mega-deal were to have a chance of getting through by the April 30 deadline. The Competition and Markets Authority said the deal would mean higher prices and less choice for shoppers. But this could see other possible suitors for the UK’s third-largest grocer swoop in as its parent company Walmart is keen to offload it.
Telly addicts are watching closely as plots Britain’s answer to Netflix. Netflix has wound up rivals in the TV and film business by claiming it doesn’t see them as a threat. “We compete with, and lose to, Fortnite more than HBO,” it declared at its annual results when it suggested immersive computer games are more serious competition than any subscription TV or online video platform. “Our focus is not on Disney+ [Disney’s new planned streaming service], Amazon or others, but on how we can improve our experience for our members,” Netflix added. Meanwhile, ITV chief executive Dame Carolyn McCall is set to unveil a SVOD service at its annual results next Wednesday. McCall has been talking to the BBC about teaming up to create a “British Netflix”, along the lines of BritBox, their joint venture in the US. The fact ITV and the BBC might collaborate, with the blessing of regulator Ofcom, is a sign of just how much the global streaming giants have already disrupted British TV and changed viewers’ expectations, with potentially harmful consequences for homegrown content.
Flybe snubs late takeover deal to pump in £65 million and stay listed. has knocked back a last-minute takeover deal from a South African hedge fund and a regional US airline. Backed by Flybe’s second-largest shareholder Andrew Tinkler, Bateleur Capital and Mesa Airlines have teamed up and offered to make a capital injection of £65 million at 4.5p a share and keep the company listed. But Flybe’s board today said it was sticking with an offer from Connect Airways, a group made up of Richard Branson’s Virgin Atlantic, Stobart Air and venture capital firm Cyrus which has vowed to put in £100 million.
Glencore bows to climate change pressure to cap coal production. Commodity giant will cap thermal coal production following pressure from investors worried about climate change. The FTSE 100 giant, the world’s largest supplier of coal, on Wednesday said it would not exceed current production levels from now on. The company, which has ramped up production in recent years, churns out about 150 million metric tons a year. The move is part of a broader push to get onside with investors increasingly vocal about climate change. Glencore said investing in climate change-proof assets was necessary to “deliver a strong investment case”.
Lloyds bullish over Brexit as £4bn payout to investors unveiled. Bank set aside £750m in 2018 for further PPI claims, taking total provision pot to £19.4bn. has shrugged off growing fears over Brexit as it unveiled a £4bn payout to shareholders, despite reporting smaller-than-expected annual profits. Britain’s biggest high street bank, which operates one out of five of the country’s branches, reported a 24% rise in net profits to £4.4bn for 2018, below the £4.6bn forecast by analysts. Statutory profit before tax was up 13% to £6bn. Its chief financial officer, George Culmer, denied the bank was being complacent about economic conditions, as it lifted its dividend by 5% to 3.21p a share and announced a share buyback of up to £1.75bn, taking the total payout to £4bn.
Laura Ashley has warned that its full-year results look set to ‘fall short’ of market expectations, as its profits were wiped out in the last six months. In its first half, like-for-like sales fell by 4.2%, with sales of furniture and decorating products particularly struggling. In a bid to spruce up its stores and turn its financial fortunes around, Laura Ashley has vowed to bolster its operations internationally and focus on becoming more of a ‘lifestyle brand.’ With a desire to focus on the ‘hospitality segment’ of its business, Laura Ashley has already opened four tea rooms and has a hotel licence in place. Keen to expand further in this area, the group said: ‘A number of opportunities are being evaluated, and we expect to see further openings this year.’
, which has been jilted by two potential buyers in the last year, swung to a huge full-year loss last year and has decided to scrap its final dividend. The news sent its already feeble share price falling a further 10% to £1.04 in early trading on Wednesday. The Manchester Trafford and Lakeside shopping centre landlord said that recent bankruptcies and a swathe of challenges in the retail sector wiped £1.4billion off the value of its centres – now worth £9.2billion.
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