Below are the key headlines from today’s papers, featuring the Financial Times, The Times, The Telegraph, The Daily Mail & more - see the full Press section here.
Business chiefs on Tuesday attacked the Government’s reforms of business rates, and warned they won’t help ailing large retailers engulfed by the High Street bloodbath. Chancellor Philip Hammond yesterday unveiled measures to aid retailers including a £675 million High Street fund and plans to cut the rates bills of retailers with a rateable value of £51,000 or less on their property by a third. But bosses said the rates move would not help the scores of chains to have run into trouble this year, including House of Fraser, New Look and Toys R Us. David Atkins, chief executive of malls owner Hammerson, said small firms will be relieved, “but for larger retailers, there is little to feel good about,” adding that “big brands shoulder almost 70% of the rates burden”.
BP more than doubled profits in the third quarter thanks to rising oil prices, as it prepares to complete its biggest acquisition in 20 years tomorrow. The oil giant said underlying replacement cost profit – the measure preferred by the industry and analysts – rose to $3.8billion (£2.9billion) in the third quarter, up from $1.86billion (£1.4billion) last year. It comes as BP (BP.) is set to seal its £8billion acquisition of BHP Billiton’s shale operations in Texas and Louisiana tomorrow.
Customers could be banned from buying crypto-related derivatives such as bitcoin contracts for difference after the City watchdog warned risks were too high for armchair punters. The move, unveiled on Monday alongside the Budget, will see the Financial Conduct Authority consult in the first quarter of next year on a possible prohibition of CFDs, options and futures linked to cryptoassets The watchdog, led by Andrew Bailey, ramped up its warning to investors about the nascent sector.
Reckitt Benckiser Group (RB.) bid to bounce back from a string of disastrous setbacks was hurt on Tuesday, with the consumer goods giant revealing a manufacturing disruption at one of its baby formula factories has hit sales. The FTSE 100 firm, which makes Nurofen tablets and Durex condoms, said its Netherlands plant had “technical engineering issues” during the third quarter, which contributed to £70 million in lost sales. It added that supply has been restored, but it expects some lingering impact into 2019. Chief executive Rakesh Kapoor said on a conference call: “I’m really unhappy.”
Frankie & Benny’s owner Restaurant Group (RTN) on Tuesday said London can expect to see more Wagamamas opening after it struck a £559 million deal to buy the noodle bar chain. The Restaurant Group, led by Andy McCue, is buying the Asian-themed business founded by restaurateur Alan Yau in 1992, from private equity firms Duke Street and Hutton Collins. McCue said: “This is an opportunity for us to expand and make an overseas debut. We get a presence in 24 countries outside the UK.” He added that he was planning to open outlets in Britain’s airports “and to convert some of our existing sites in London into Wagamamas”.
Former IBM and Citibank executive June Felix was today named as the new boss of spread betting house IG Group Holdings (IGG). She replaces company veteran Peter Hetherington who surprisingly stood down just last month amid falling sales. Felix, pictured, who has spent most of her career in the US, is IG’s first female boss in a male-dominated industry. IG and its rivals are facing a clampdown from regulators at home and in Europe over the sale of the riskiest products, amid increasing concern that most spread betting customers lose.
WH Smith (SMWH) made a bold move into the US on Tuesday, snapping up phone accessories retailer InMotion for £155 million in cash. That doubles the size of WH Smith’s international travel business at a stroke and sees the company return to America for the first time since the Nineties. Shares rose 5% to 1823p. City analysts say it is also a clear sign that the travel arm, not the High street, will be the driver for future growth. Smiths already has 300 shops in 52 airports and 28 countries outside the UK
BP (BP.) today smashed City profit forecasts with its best results for five years and it now intends to pay for its purchase of BHP’s US shale assets in cash. In the three months to September, profits doubled from a year ago to $3.8 billion (£3 billion). The rising oil price is partly to thank, but BP says that more importantly it is managing to mine oil at lower prices. Bob Dudley, chief executive since 2010, said: “Operations are running well across BP and we’re bringing new higher-margin barrels into production faster.” The highest quarterly profit since 2013 means BP can use some of the cash it is throwing off to buy seal the BHP Billiton (BLT) deal. Originally it said the $10.5 billion acquisition would be half in shares. It now says it will pay for the whole lot in cash, a sign of confidence in its balance shee
