Sunday newspaper round-up: GDP, RBS, Anglo, William Hill, bank exit

23rd Oct 2016 15:02

(ShareCast News) - In the first official reading on how the whole UK economy has performed since the Brexit vote, the Office for National Statistics (ONS) is expected to say growth more than halved from 0.7% in the second quarter to 0.3% between July and September. According to economists polled by Reuters, it would be the slowest rate of growth since the third quarter of 2015, but though it would rule out the prospect of a technical recession in the second half of the year and beat the latest forecasts from Bank of England, the Observer reported.The European Commission could take control of the Royal Bank of Scotland's sale of its Williams & Glyn business, with management looking likely to failed to meet the 31 deadline set as part of its 2008 taxpayer bailout. With City sources saying interested buyers are being put off by technology issues involved in separating out the network of 300 branches, the Sunday Times said EC officials will be entitled to appoint a trustee to seize control of the sale process.American telecoms giant AT&T agreed a deal to buy Time Warner on Saturday night in a deal that values the HBO, Warner Bros and Cartoon Network owner at $80bn (£65bn). The Sunday Telegraph said the Texan telecoms group AT&T, which is valued at around $230bn, wants to buy Time Warner's entertainment empire in a bid to bolster its existing satellite television, broadband and mobile services, as rivals including Verizon and Comcast have made similar moves in the media business.A number of major banks are preparing to relocate out of the UK in the first few months of 2017 amid increasing fears about Brexit, while some smaller banks are making plans to get out before Christmas, according to the chief executive of the British Bankers' Association, Anthony Browne. Writing in the Observer, he warned "the public and political debate at the moment is taking us in the wrong direction".William Hill will begin searching for a new chairman next year, the Sunday Times said, after Gareth Davis pays the price for a series of "blunders" that have provoked the ire of the bookmaker's major shareholders. With Davis also at the helm at FTSE 350 giants Wolseley and DS Smith, investors feel the time is up after around six years at the head of the table, especially after pushing through the unwanted £6bn merger with Canadian online poker group Amaya.Anglo American should deliver a further fillip to shareholders with a deal to sell its Grosvenor and Moranbah coal mines in Australia for at least $1.5bn (£1.2bn) as it looks to reduce its debts. The much anticipated sale, which the Sunday Times said could be announced within a fortnight to a group of bidders including the private equity firms Apollo and Riverstone, and the American coal investor Xcoal Energy.Ofgem's big plan to get households onto cheaper energy tariffs is being scuppered as the 'Big Six' energy companies have warned they fear breaking the law by sharing their customer information with the rest of the industry as the regulator has instructed. In a meeting with Ofgem, some companies said their legal advisers told them it would be "illegal" to provide customer details to rival firms, a senior energy executive told the Mail on Sunday.The Ministry of Defence has backed down from a confrontation with the UK arms industry and has agreed to put a £3bn armoured vehicles contract out to tender rather than just going ahead and awarding it to Germany's Rheinmetall. The Sunday Telegraph said defence groups had lobbied the MoD over worries a contract to purchase between 600 and 800 eight-wheel infantry vehicles would go to a German consortium, without an open fight for the work.Banks reporting third-quarter results this week will bring charges for the payment protection insurance (PPI) mis-selling scandal and details of the impact of Brexit back to the front of investors' minds. On top of the £37bn costs already charged to PPI, the industry is now expected to face an even bigger bill after the Financial Conduct Authority set June 2019 - rather than spring 2018 - as a deadline for claims.French Connection is being circled by overseas retailers including Neuberger Berman and European and US private equity firms amid growing speculation that its septuagenarian founder may be willing to consider a sale following major pressure from activist firm Gatemore. The Sunday Telegraph said it understood the fashion chain has had recent approaches but that no active discussions were underway.Former Parkdean Resorts managers are working on a £1.2bn takeover for the caravans and camping sites group. Two former bosses of Park Resorts, which they sold to Parkdean, are understood by the Sunday Telegraph to be working on the buyout with private equity firm BC Partners, owner of Cote restaurant chain and car rental site Car Trawler.A surprisingly large £4bn charge for previous payment protection insurance (PPI) mis-selling by MBNA may lead Lloyds Banking Group to drop its £7bn bid for the credit card company. In the bid battle between Lloyds and private equity giant Cerberus, the FTSE 100 banking group was reported by the Sunday Times to be demanding that MBNA's current owner Bank of America Merrill Lynch pick up a sizeable portion of any mis-selling bill, while Cerberus is being less demanding.The future of Britain's life sciences industry looks more uncertain after Government ministers brushed aside a crucial report that sets out what the sector needs to thrive outside of the EU. A government told the Sunday Telegraph that the 21-page report compiled under a steering committee co-chaired by GlaxoSmithKline boss Sir Andrew Witty and AstraZeneca's Pascal Soriot, was submitted to the Government in September but was "basically the industry whining about Brexit and it was not very constructive and has gone straight into the hopper".Companies and individuals caught trying to avoid their pension liabilities should be slapped with sizeable fines, according to the head of the industry-backed lifeboat, the Sunday Times reported. In light of the scandal at BHS, Alan Rubenstein, chief executive of the Pension Protection Fund (PPF), said the prospect of financial penalties would "make people stop and think" about whether they should obtain clearance before going ahead with questionable deals.Debenhams' new chief executive Sergio Bucher will make his debut next week amid concerns the department store's pension scheme has swung to a deficit and speculation about the future of its estate. The Sunday Telegraph said the former Amazon Europe exec is expected to focus on revamping Debenhams' online operations and pushing the brand overseas to boost the flagging growth of its UK stores, which are under pressure from the intensely competitive retail landscape.Administrators of the collapsed BHS chain have applied to take control of the management company used by its disgraced former owner, Dominic Chappell, to gain a grip on some of the outstanding £6m of loans. The Sunday Times reported that Duff & Phelps, one of the firms picking through BHS's ruins, has filed a High Court petition to wind up Retail Acquisitions, which Chappell used to buy BHS for £1 from Sir Philip Green.Channel 4 is to start bids to sponsor The Great British Bake Off at as much as £8m as advertisers salivate at the prospect of cooking up the first commercial relationship with the biggest show on UK TV. The broadcaster has its work cut out to recoup a reported £75m in a three-year deal for up to 40 hours of programming a year, including professional and celebrity specials, with potential for spin-off shows beyond the current 10-hour run of the main programme, the Observer said.Directors of firm that make nuisance calls to consumers could be hit with personal fines of up to £500,000 under proposals to change the law after fines levied at companies has proved ineffective. Companies making nuisance sales and marketing calls - often automated and have been able to avoid fines by going bust, with the directors free to start a new company and keep operating, the Mail on Sunday reported.