Below are the key morning press headlines, featuring the The Times, The Telegraph, The Daily Mail & more - see the full Press section here.
Gold traded at its highest price in nearly seven years yesterday as tensions increased in the Middle East and investors rushed for safer assets. Oil briefly climbed past $70 a barrel as stock markets endured a mixed day, falling in Asia and then Europe but faring better in the United States. Most investors continued where they had left off on Friday, moving money out of stocks and into safe-haven assets amid fears that a conflict between the United States and Iran would destabilise the region and push up the oil price. - The Times
128,000 sq ft retail park is set to be converted into warehouses for online sellers in a landmark deal that underlines the changes sweeping the industry. Prologis, the world’s largest warehouse company, has bought Ravenside retail park for £51.4m from the investment manager M&G. The site in Edmonton, north London had been owned by an M&G property fund which has blocked withdrawals by investors after a stampede for the exits due to the crisis gripping the high street. Tenants include Mothercare, which is closing as part of a decision to shut all of its UK stores, as well as a 60,000 sq ft Wickes branch, Carpetright and Tapi Carpets. - The Telegraph
Maestrano Group (MNO) stock surged more than 100% after it bagged a contract with the Australian Rail Track Corporation (ARTC). The Government-owned ARTC will use technology developed by Maestrano’s Airsight division to record data and images about the ‘rail corridor’ – the area around the tracks – which will help to detect any problems. Maestrano did not say how much the contract was worth. - The Mail
Dechra Pharmaceuticals (DPH) has agreed to buy Osurnia, which treats inflammation of the outer ear in dogs, from Elanco Animal Health. Elanco, which is listed in New York, is offloading Osurnia as part of its acquisition of the animal health business of Bayer, the German pharmaceuticals group. Osurnia generated revenues of $31.2 million in 2018, a third of which were in the United States, and has been on the market for about four years. It has global intellectual property protection until 2027. Dechra’s acquisition will bolster its treatments for otitis externa, adding to a portfolio that already includes Canaural. It will finance the deal, which is subject to regulatory approval, through existing cash and borrowing facilitie. - The Times
Plus500 Ltd (DI) (PLUS) was also in the red early yesterday after it warned that regulatory crackdowns will hit revenues and profits. Plus 500 reckons its annual revenue will come in at £271million, less than half that of the year before, while profits will be about £144million – almost two-thirds down on 2018. It follows regulators clamping down on contract-for-difference bets, which let punters guess the price movements in shares and commodities. - The Mail
A review by NMC Health (NMC) into a devastating report by an American short-seller will be overseen by a director whose independence has been called into question by the critical investor. The private healthcare company said yesterday that the review would be supervised by four non-executive directors, led by Jonathan Bomford. He is among the directors that Muddy Waters said in its report “appear to us independent in name only”. Mr Bomford, 71, is the company’s senior independent non-executive director. Until last year he was a director of Travelex, a business owned by Finablr, a London-listed foreign exchange company that is controlled by Bavaguthu Raghuram Shetty, the NMC founder. Mr Bomford is also a former partner at EY, the company’s auditor. - The Times
Oil prices climbed above $70 a barrel for the first time in four months on Monday amid fears that the US airstrike that killed Iran’s top military commander may trigger a retaliation and disrupt global energy supplies. The Brent crude price hit $70.73 (£53.74), its highest level since Houthi rebels launched a drone attack on a major Saudi oil facility in September, with European stock markets also posting losses. About a fifth of the global oil supply flows through the Strait of Hormuz, a narrow shipping route between Oman and Iran. It was targeted last year by Iran, which seized two oil tankers in the strait. A prolonged oil price surge could raise the risk of a global economic recession and would add about 2p a litre to the price of petrol at the pumps. - The Guardian
HSBC did away with its “buy” recommendation for Bakkavor Group (BAKK) yesterday. Analysts at the bank cut their rating to “hold”, although they left their price target unchanged at 145p. The number-crunchers cited industry data towards the end of last year that showed “very weak” grocery sales. Their biggest concern, however, was the rise of Aldi and Lidl, the German discounters, which continue to eat into the market share of the supermarket stalwarts that Bakkavor supplies. “The group continues to suffer from its exposure to customers and categories in the UK that are not growing, and this is not an easy fix,” Doriana Russo, a consumer and retail analyst at HSBC, said. “With stagnating industry sales in the UK and [continuing] cost pressure from higher labour costs, we do not see any imminent upside on forward-looking earnings growth.” - The Times
Hornby (HRN) products flew off the shelves over Christmas after it released a swathe of new toys and models. The toy and hobby company said that sales and profit margins ‘have continued to be ahead of last year’. Since chief executive Lyndon Davies, a toy industry veteran, took over in late 2017 he has been pushing to reduce costs, improve the supply chain and bring out a range of products under brands such as Airfix and Scalextric. This year, the firm is planning to release Scalextric sets which can be controlled by mobile phone apps, to attract a new generation of model enthusiasts. On top of the Christmas success, Hornby has managed to persuade its largest shareholder, Phoenix Asset Management, to increase the loan it had extended. - The Mail