Below are the key morning press headlines, featuring the The Times, The Telegraph, The Daily Mail & more - see the full Press section here.
The chairman of Marks & Spencer Group (MKS) has ruled out breaking up the retailer, saying that it would be completely impractical to split the clothing and food divisions. Archie Norman made the comments as M&S said that a fall in sales for its struggling fashion department had dragged down profits. The retailer suffered a 17.1% drop in adjusted pre-tax profits — which strips out the cost of its restructuring programme to shut more than 100 shops — to £177 million. Total sales for the six months to September 28 fell by 2.1% to £4.86 billion. The retailer said that the benefits of its turnaround plan were beginning to be seen in its food division, with total sales up by 1.2% and like-for-like sales rising by 0.9% as it outperformed supermarket rivals.
Virgin Media has agreed a five-year mobile deal with Vodafone Group (VOD) after deciding not to renew its agreement with BT Group (BT.A) . The deal, which will involve more than 3 million mobile customers, ends a 20-year relationship between Virgin Media and BT-owned EE. Virgin Mobile services will start to move across to the Vodafone network from late 2021 and its 5G products will be hosted on the latter in the near future, the company said. 5G is expected to bring radical change to the mobile sector when it is rolled out across the UK, with broadband-speed downloads promised. The third-party deal – called a mobile virtual network operator (MVNO) venture – is a significant shift for Vodafone, which has so far resisted signing such agreements in the UK.
Veteran fund manager Nichola Pease has taken up the prestigious post of chairman at investment firm Jupiter Fund Management (JUP) . A former chief executive of JO Hambro Capital Management, who has more than 30 years’ experience in the financial services industry, 58-year-old Pease takes over from Liz Airey next March. She will stand down immediately from the board of rival fund manager Schroders (SDR) , where she has been a director for seven years. But embarrassingly for Pease, her husband, renowned hedge fund manager Crispin Odey, has been betting against Jupiter all year. Odey Asset Management first revealed in February that it held a short position in the company.
Rolls-Royce Holdings (RR.) the legendary British engineering company is turning to Germany to make a hybrid-electric engine for small planes which it hopes to have flying within two years. The business has teamed up with German aerospace design company APUS and Brandenburg university for the project, which uses a hybrid power system in which a jet engine generates electricity to power motors which then turn propellers. Research to develop the environmentally-friendly aircraft is being funded by the Brandenburg state government and European Union regional development funds. Experts said the decision to pick German over the UK is a sad indictment of British appetite for engineering projects.
Intu Properties (INTU) has warned it is likely to seek extra cash from shareholders as the shopping centre firm battles falling rental income and struggles to sell assets. The Lakeside and the Trafford Centre owner is preparing to tap up the stock market for vital funds – but analysts said Intu’s tumbling share price could make it impossible to raise enough cash. Intu may need to raise between £1bn and £2bn, Kempen analyst Max Nimmo said. He added this would seriously reduce the percentage of the firm owned by existing shareholders, saddling them with major losses. Deutsche Bank warned there is a heightened risk Intu may not be able to raise enough money from investors to pay down its debts.
AstraZeneca (AZN) is to set up a new research and development centre in China and will jointly establish a $1 billion fund to invest in healthcare innovation companies in the country. The pharmaceuticals group said that it would more than double its research and development staff in Shanghai to about 1,000 people with the new centre. It would focus on “diseases that are prevalent in China, home to around a quarter of world’s disease burden, as well as other parts of Asia”, it said. Astrazeneca said that it was also establishing a healthcare industrial fund jointly with China International Capital Corporation, the Chinese investment bank, with a target size of $1 billion. This will back domestic and international companies seeking to establish a presence in China.
A leading shareholder in Breedon Group (BREE) sold its stake and amid rumours that another big investor might cut its holding. M1 Cement offloaded its 8.3% stake in Breedon, pocketing £82.4 million as it sold the shares at 59p apiece — a small discount to the prevailing share price. The group quickly reassured investors that Amit Bhatia, its chairman, was not involved with M1 and retained his sizeable interest in the business. It did not help that Davy trimmed its forecasts for the company, citing weaker British construction activity in September and October. There also was a rumour among City traders that Invesco, Breedon’s biggest shareholder with a 17.2% stake, may be looking to reduce its holding. The investment group first bought Breedon shares in the days of Neil Woodford, the former star stockpicker, whose successor, Mark Barnett, has held on to the investment. Breedon declined to comment on the gossip, while Invesco, which is understood to have last met the company’s bosses in September, could not be reached.
Redrow (RDW) has suffered a shareholder revolt over pay and the controversial choice of its new chairman. Nearly a third of investors opposed its pay report at an annual general meeting in London, with a similar number opposing John Tutte’s appointment. It followed moves by the company to lower targets for its long-term bonuses, making it easier for bosses to earn big payouts. Former boss and founder Steve Morgan, 66, will still be entitled to bonuses, even though he has retired. He has a 20% stake in the company worth £422million. There has also been anger at former chief executive Tutte, 63, becoming executive chairman, in breach of City rules for best practice in the boardroom.