Below are the key headlines from the midday updated papers, featuring the Financial Times, The Times, The Telegraph, The Daily Mail & more - see the full Press section here.
Intu Properties suffers pain of retailers as they aim to slash their rents. Lakeside shopping mall owner Intu Properties (INTU) cranked up the pain for long-suffering investors on Friday as its new boss laid bare the impact of struggling retailers seeking to slash rents. The shopping centres firm, reeling from a turbulent year which has seen it ditched by two suitors, expects rental income to be down by up to 6% this year, a much bigger plunge than previously estimated. New chief executive Matthew Roberts said Intu was hit between January and May by a higher-than-expected number of retailers, including Paperchase and restaurants chain Giraffe, using controversial company voluntary arrangements, to axe stores or seek rent cuts.
Numis profits suffer on London float famine. Broker Numis Corporation (NUM) suffered a 64% fall in half-year profits after a “total drop-off” in stock market listings and a share sale flop for its client Kier. In a sign of the steep decline in stock market activity before the 29 March Brexit deadline, revenues generated from raising funds through its investment bank arm between September and March fell by a quarter to £39 million. That reflects the dearth of floats in London, with just 15 debuts in the period well down on the average of 50. Co-chief executive Alex Ham said: “There’s been a total drop off in transaction activity. It’s been a tough few months because of the complete lack of equity issuance but we think that will come back”.
Sir Martin Sorrell aiming to shake it up with buys as his new venture leaps 34%. Sir Martin Sorrell’s new digital advertising venture S4 Capital (SFOR) produced bullish results today as the founder said he’s still on the lookout for acquisitions to take on the industry’s more established players. Sorrell said: “We continue to look at things. This is a highly disruptive business model.” Sorrell was a prolific dealmaker when he ran media giant WPP but left last year over allegations of misconduct, which he denies. S4 Capital has adopted a similarly aggressive strategy with two major deals and last week Sorrell added Caramel Pictures and ProgMedia to the stable.
HSBC to keep close eye on costs as profits surge in first quarter. HSBC Holdings (HSBA) has vowed to keep a close eye on costs to ensure it meets market expectations this year. Discussing the bank’s performance during the first three months of the year, chief financial officer Ewen Stevenson said that although no “bank-wide cost programme” existed, the group could get tougher on costs later this year if necessary. Chief executive John Flint said the group was “proactively” managing costs in light of a more “uncertain” global economy. Mr Stevenson added that Brexit could deliver “several broad economic outcomes”, which had required HSBC to pay more attention to its UK credit business.
Lloyds Banking Group agrees to independent review of Reading fraud compensation. Lloyds Banking Group (LLOY) has agreed to an independent review of its contentious compensation scheme for victims of the £1 billion HBOS Reading fraud. The move is a result of intervention by the Financial Conduct Authority, which shared concerns expressed by small business owners affected by the fraud that the redress process was flawed and may have given rise to unfair outcomes. In a move that heaps fresh embarrassment on Lloyds over the Reading scandal, which resulted in scores of small companies being ruined, Sir Ross Cranston, a law professor and retired high court judge, is due to review all the bank’s compensation decisions. The businesses were damaged or destroyed when consultants linked with an HBOS “turnaround” unit asset-stripped their businesses and stole from the bank.