Below are the key morning headlines from today’s papers, featuring the Financial Times, The Times, The Telegraph, The Daily Mail & more - see the full Press section here.
- Peter Long steps down at Royal Mail. Chairman stands down after investor pay revolt. Peter Long has stood down as chairman of Royal Mail (RMG) only two months after suffering one of Britain’s biggest ever shareholder rebellions over pay and his other corporate commitments. Royal Mail announced yesterday that Mr Long would stand down with immediate effect after he reviewed his board appointments and concluded that it was “no longer possible” for him to remain.
- Tesco boss vows to make discount chain Jack’s the ‘cheapest in town’. Tesco (TSCO) has vowed to be the “cheapest in town” as it threw down the gauntlet to Lidl and Aldi by launching the discount chain Jack’s. The supermarket giant has created 1,800 Jack’s own brand products as part of a £25m investment, which will lead to 10 to 15 discount stores being rolled out in the next year. Chief executive Dave Lewis said it would cater to the “economically challenged that need a bargain and the affluent shopper that wants a bargain,” as he revealed the chain in Chatteris, Cambridgeshire.
- Sainsbury faces major probe into £14bn merger with Asda amid concerns shoppers could face higher prices. The Competition and Markets Authority (CMA) said the deal raised ‘sufficient concerns’ to warrant investigating the impact on prices, choice and customer service. Sainsbury (J) (SBRY) and Asda, the UK’s second and third largest supermarkets, are proposing to join forces in a deal that has pledged to lower prices while putting the squeeze on larger suppliers.
- The vehicle hire company seen as the go-to choice of “white van man” has suffered an embarrassing defeat in a vote over pay at its annual meeting. Shareholders speaking for almost 58% of Northgate (NTG) voted against the hire group’s pay report at Tuesday’s annual meeting after it tried to scrap the link between executive bonuses and the company’s earnings per share. Investors argued that if they were to suffer lost earnings, so, too, should directors.
- Sky (SKY) will include Netflix in its pay-TV packages for the first time from November, using the popularity of the streaming service to increase uptake of its own on-demand programming and latest set-top box. Netflix will be bundled with Sky’s own boxsets of programmes such as Succession and Patrick Melrose in an add-on costing £10 per month on top of a subscription
- The head of supply chain at B&Q owner Kingfisher (KGF) is stepping down halfway through the company’s five-year transformation plan as the retailer unveiled tumbling profits. Arja Taaveniku, who joined from Ikea three years ago to shake up the operation as chief offer & supply chain officer, will be replaced by Henri Solère, who has worked for Kingfisher for 11 years and was previously in charge of its Bathroom range.
- Babcock International Group (BAB) said it is trading in line with expectations, months after cutting full-year sales targets. It works with nuclear power stations, militaries, emergency services and oil companies and is on track to deliver low growth. It has around £32billion worth of goods on order or being made
- Protests mount over Unilever’s plan to go Dutch with Standard Life Aberdeen funds set to vote against the deal. Another major investor in Unilever (ULVR) is preparing to vote against the plot to axe its UK HQ amid a growing backlash. Fund managers at Standard Life Aberdeen (SLA) are understood to have serious concerns about the Marmite maker’s plans to abandon Britain for a sole legal base in the Netherlands. And some of SLA’s biggest funds are expected to vote against the deal as they believe it will hurt their customers.
