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.
Shoppers trim back spending after buoyant summer. Retail sales fell at their fastest rate in six months in October as households cut back spending on home appliances and electronics and the mild weather hit sales of winter clothes. Figures from the Office for National Statistics showed that retail sales volumes shrank 0.5% over the month and economists were forecasting month-on-month growth of 0.2%. Retail sales, a key measure of household confidence, have held up well since the Brexit vote despite the squeeze on real incomes last year. With much of the economy dependent on consumer spending a healthy retail sector is considered a bellwether for the nation’s immediate prospects.
City urges MPs to back Brexit deal as Dominic Raab exit hits sterling. The City of London made a desperate plea for politicians to back Theresa May’s Brexit deal on Thursday as turmoil ripped through currency markets. The City of London Corporation’s most senior figure, policy chairman Catherine McGuinness, said the deal was a “start” and urged MPs to put pragmatism and jobs ahead of politics and support the Brexit deal in next month’s parliamentary “meaningful vote”. But the departure of Brexit Secretary Dominic Raab — the most senior of the ministers to quit in the wake of Theresa May’s Brexit deal — sent the pound tumbling more than a cent against the dollar amid growing doubts over the Prime Minister’s survival.
3i Group (III) boss warns on ‘too much cash’ but sees future as rosy. So much cash is floating around private equity looking for a home that asset prices are far too high. That’s the view of 3i chief executive Simon Borrows, who otherwise has an optimistic view of the near future. 3i made a total return of 10% in the six months to September, and net asset value per share rose more than 7% to 776p. 3i itself has plenty of cash on hand to deploy, easily more than £500 million, but is wary of the most obvious opportunities. “We have good momentum across our portfolio, but remain cautious about the pricing of new investment in general,” he told the City
Under-fire Chemring Group (CHG) puts £13 million aside to tackle SFO corruption probe. Chemring took a £13 million cost hit on Thursday from legal fees for an ongoing Serious Fraud Office probe. The provision, made over two years until 2019, is linked to an investigation into concerns about possible bribery and corruption at UK-based subsidiary Chemring Technology Solutions, which the company reported to the SFO and revealed in January. The legal charge forms part of a balance sheet shake-up under new chief executive Michael Ord. The firm is also planning to exit some parts of its energetics business, which makes pyrotechnics for plane ejector seats, leading to a £68 million impairment charge, it said.
Supplier QinetiQ Group (QQ.) confident on Ministry of Defence contract talks. Ministry of Defence supplier Qinetiq was upbeat on Thursday about clinching a big deal with the department worth around £100 million a year. The group is in talks with the MoD about an amendment to the long-term partnering agreement, which provides training and facility for the military. The deal is Qinetiq’s biggest contract and is currently worth £300 million per year in sales. Chief executive Steve Wadey said negotiations were “proceeding well” and would conclude before March. “We are modernising how we deliver these services,” he said. “This would bring us good visibility and we would have a commitment if we secured this agreement until 2028.”
Aston Martin stalls again despite strong sales leap on Chinese demand for DB11. Aston Martin Holdings (AML) skidded again on Thursday in its maiden results as a listed company despite revealing a strong ramp-up in sales and production of its luxury motors. The UK marque, featured heavily in James Bond films, saw its shares plunge 6.5% to 1506p amid a volatile trading session hit by Brexit fears and concerns about whether Aston Martin can live up to its promises. The shares are down more than 20% since its jumbo £4.3 billion flotation last month, mainly due to fears about the risk of launching new motors and Brexit. Chief executive Andy Palmer said of the UK and EU trade deal unveiled last night: “I don’t know whether we have any more clarity or less clarity as a result of today but at least we have a plan on the table which is good.”
Royal Mail profits plunge by half with danger of job cuts. Royal Mail (RMG) delivered a parcel of bad news to investors on Thursday as profits collapsed by more than half and its new boss admitted performance was “very disappointing”. Rico Back, the chief executive of four months, oversaw pre-tax profits tumble to £33 million in the six months to October, from £77 million a year earlier. He refused to rule out job cuts to deal with the company’s issues. The number of letters in Royal Mail’s postbags fell 7%, revenues from its crucial UK parcels business were down 1% and the firm’s much-heralded productivity and cost-cutting targets were widely missed.
Patisserie Valerie chief executive Paul May has quit with immediate effect from the coffee and cake chain’s parent company Patisserie Holdings (CAKE) . Turnaround specialist Stephen Francis has been hired in his place. The exit of the troubled company’s chief executive comes after chief financial officer Chris Marsh resigned at the end of October. Mr Marsh has also been questioned by police as part of an ongoing investigation. Patisserie Valerie shocked investors on Oct 10 when it suspended its shares and admitted a £40m black hole had opened up in its finances. The company warned of a “significant, potentially fraudulent accounting irregularities”.
