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.
Barclays lays out its stall against activist investor with new chairman. Edward Bramson, the activist investor, has built up a 5% stake in Barclays (BARC), agitated for a seat on the board and said he wants the UK lender to shrink its investment bank. So what does Barclays do? A week after posting third quarter results that showed good progress in the investment banking division, it announces that Nigel Higgins, an investment banking veteran, will take over as chairman from John McFarlane in May next year. The appointment, if not a direct repudiation of Bramson’s demands, is clearly an endorsement of the bank’s current strategy.
British Airways’ owner International Consolidated Airlines Group SA (CDI) (IAG) on Friday made a bold bet on Brexit Britain, with boss Willie Walsh ready to invest an average €500 million (£440 million) extra a year in the firm. The Irishman declared he is not “afraid to make investments” as he upped the firm’s spend for across the business, likely to cover new planes, products and customer services, to €2.6 billion a year for a five-year period. The chief executive was bullish as he addressed a capital markets day in London, updating the City on new goals for 2019-2023. Walsh said: “We are in a position to look forward with great confidence to invest.”
Hedge fund giant Lansdowne Partners has revealed a jumbo £125 million bet against catering giant Compass Group (CPG) in one of the largest short trades placed this year. The Mayfair-based investor, a backer of companies like Manchester United and Lloyds Bank, has sold short 0.51% of the £25 billion firm’s stock in the hope the shares will fall, regulatory figures show. The Compass bet is the among the top five largest new shorts placed by hedge funds on British companies in 2018, according to Bloomberg figures. It is not known how long Lansdowne has been shorting Compass because investors only have to reveal positions when they rise above 0.5%. Lansdowne is also shorting French caterer Sodexo, suggesting a negative view on the European sector overall.
Multibillion-dollar US vaping giant Juul has struck a landmark deal with Sainsbury (J) (SBRY) – its first supply agreement with a major UK retailer. The San Francisco-based company, which boasts a $16bn (£12bn) valuation and claims to have 70% of the US e-cigarette market, is to supply all of Sainsbury’s 1,400 stores from November 4. The deal left anti-vaping campaigners fuming. One said Sainsbury’s “should hang their heads in shame”. Another called it a “surprising” decision, given recent commentary about Juul by US drug authorities.
Sage Group (SGE), the UK’s biggest listed technology company, has promoted its finance director Steve Hare to chief executive to “lead the firm on the next stage of its journey”. Mr Hare, who was temporarily appointed chief operating officer to help steer the company after former boss Stephen Kelly stood down in August following a dismal set of half-year results, will take the helm with immediate effect. Donald Brydon, chairman, said he was “delighted” with the decision and that Mr Hare was “the right person to lead Sage”
Millennium & Copthorne Hotels (MLC) is to slash costs after revealing a sharp fall in third quarter profits. The London-listed hotel company is struggling to fill rooms and blamed “challenging trading conditions”. Pre-tax profit for the three months to September fell 38% to £34m. Nine-month profit was 16% lower at £99m. Key sales metrics also slid – revenue per available room fell 2.8% during the quarter to £87.23. Tough trading comes amid changes in the boardroom. The hotel is searching for a new chief executive after Jennifer Fox stood down in September after just three months at the helm – pocketing a £1m payoff in the process
Paddy Power Betfair (PPB) has reported a 12% rise in group revenue to £483m for the three months to September 30 and has nudged up its full-year guidance for earnings before interest, tax, depreciation and amortisation. It now expects to make between £465m and £480m for the year, up from the previous £460m to £480m guidance, as the Irish bookmaker benefited from strong sales in its new US business. Group Ebitda fell 3% to £100m over the period, but rose 6% once costs associated with its acquisition of US fantasy sports business was taken into account
