  | Anglo American (AAL) is considering a £386m lifeline bid to rescue Sirius Minerals (SXX) from collapse, but experts have warned that the company’s Yorkshire site could still remain dormant for years. Sirius owns a huge fertiliser mine underneath the North York Moors, which Anglo American described as “potentially world class” in a statement on Wednesday morning. The two companies are in advanced negotiations over a potential takeover, the statement added. But what Anglo American plans to do with the site, should the acquisition go ahead, is still unclear. Kieron Hodgson, an analyst at Panmure Gordon, said that he would not be surprised if Anglo American bought the asset simply to hold on to it until it had increased in value. |
| Some of Britain’s largest banks risk being sucked into a crisis over currency exchange firm Travelex after its systems were knocked offline by a hacking attack. Lenders including Barclays, HSBC, Royal Bank of Scotland and Virgin Money have been left unable to offer online exchange services to millions of customers because of the crisis. They rely on Travelex systems which were taken down by the hackers, who are reportedly threatening to release customers’ data unless they get a $6m (£4.5m) ransom payment. Travelex, a Finablr PLC (FIN) company, is now facing a storm of criticism for keeping the nature of the attack private for eight days. It was first hit by disruption on New Year’s Eve, but a hack was not known to be responsible until Tuesday this week. | |
 | Greggs (GRG) has doled out a one-off £7m bonus to staff after bumper sales of its vegan sausage roll sent revenue surging. The bakery chain posted a 9.2% rise in sales at stores open for more than a year, bucking a wider slowdown on the high street and beating expectations. The firm has now dished out £300 to each of its 25,000 staff. Roger Whiteside, chief executive, said: “We’ve never done it before, I can’t imagine we will ever do it again. It’s not a regular thing, although we might have another exceptional year so never say never.” He added that Greggs has been sharing 10% of its profits with staff each year. |
 | Sainsbury (J) (SBRY) sales dropped in the run-up to Christmas as it suffered a hit from poor toy sales at Argos and sought to blame jittery consumers. Sales at stores open more than a year excluding fuel fell 0.7% for the 15 weeks to Jan 4, worse than analyst estimates, despite a strong performance by the company’s online and clothing arms. General merchandise sales declined 3.9% as the demand for toy and gaming products at Argos, which Sainsbury’s owns, was lower than a year earlier. Chief executive Mike Coupe said investment in digital was paying off, with more than a fifth of sales made online in the quarter. He added that consumers were put off by uncertainty as political turmoil raged ahead of the general election. |
 | Questor: fund firm’s unique features mean it is growing fast and under no pressure to cut fees. Questor share tip: Intermediate Capital Group (ICP) specialises in an unusual form of financing and its strong record is attracting more money from institutions |
| One of Britain’s biggest infrastructure projects is set to be rescued after Anglo American (AAL) made a £386 million proposal to buy Sirius Minerals (SXX), the North Yorkshire fertiliser mine developer. The mining group yesterday revealed that it was “in advanced discussions with Sirius” over a possible all-cash offer at 5.5p a share. It said that the company’s Woodsmith polyhalite mine, under construction near Whitby, “has the potential to become a world-class, low-cost and long-life asset”. The potential deal is a lifeline for the project and hundreds of workers, but would crystallise heavy losses for many shareholders in Sirius, including about 85,000 retail investors who have seen shares change hands for as much as 37p only two years ago as it struggled to secure funding. |
  | The telecoms regulator has called on BT Group (BT.A) to commit to accelerating the introduction of faster broadband networks after it issued long-awaited proposals to increase competition in the industry. Ofcom yesterday launched a consultation on plans to encourage investment in full-fibre broadband infrastructure as it seeks to meet Boris Johnson’s election pledge to connect all the country’s homes “to gigabit speeds” by 2025. The consultation, which ends in April, will regulate BT’s Openreach broadband infrastructure network for the five years from April next year. The plans include loosening the regulation of wholesale charges to reduce the costs of building new fibre networks in rural areas and measures to manage the switch from the slower, old copper networks to full fibre. The measures were welcomed by BT, the government and rival networks, such as Virgin Media, and alternative networks, the so-called altnets, such as CityFibre Infrastructure Holdings (CITY), which is backed by Goldman Sachs. |
 | The founder of NMC Health (NMC) has seen about £900 million knocked off his fortune after shares in the private hospitals company and in Finablr PLC (FIN), the owner of Travelex, extended falls yesterday. Bavaguthu Raghuram Shetty, an Indian pharmacist-turned-tycoon who has built a business empire over four decades spanning healthcare and foreign exchange, has been hit by blows to both companies. In particular, NMC’s stock has been damaged by a report from Muddy Waters, an American investor and short-seller, which last month said that it had “serious doubts” about financial statements from NMC, including information about its asset values, cash balance and reported profits and debts. NMC has called the report “false and misleading”, but nevertheless has launched a review. Shares in Finablr have fallen by 40% since the Muddy Waters report and are at their lowest since they were floated at 175p in May last year. It means that the slump in both companies has wiped about £900 million from Dr Shetty’s stakes. |
 | The boss of Shoe Zone (SHOE) has lambasted the prime minister’s efforts to cut business rates for small companies as “shameful” and “total rubbish” and has warned of more shop closures unless the system is properly overhauled. Anthony Smith claimed that despite Shoe Zone having 300 fewer stores than a decade ago, its business rates bill had jumped by £700,000 to £11.1 million as the retailer pays more than half its total rent bill in rates. |
| A slump in demand for toys and video games knocked Sainsbury (J) (SBRY) sales over Christmas and overshadowed a strong performance in its clothing and online divisions. The supermarket chain reported a 0.7% decline in total like-for-like sales for the 15 weeks to January 4. Analysts expect Britain’s second largest grocer to be the Christmas winner of the “Big Four” and its performance trumps Morrisons’ 1.7% drop in the 22 weeks to January 5. Grocery sales increased by 0.4% and online sales rose by 7.3%, with a record 385,000 customers ordering in the week before Christmas. Mike Coupe, chief executive, acknowledged that Sainsbury’s had done more “headline stunts and fuel and wine” promotions than in previous years, but said that overall discounting had been similar to previous Christmases. It has been claimed that grocers were slashing prices to boost their defences against Aldi and Lidl, the German discounters. |
| Retailers have defied the gloom on the high street to report a rise in sales before Christmas. Sales rose by 1.9% in the five weeks to December 28, compared with the same period last year, according to KPMG and the British Retail Consortium. Although sales growth improved, the 2019 figures were boosted by the timing of Black Friday, which fell on November 29 this year. Taking November and December together, to iron out Black Friday distortions, total sales were said to have declined by 0.9% compared with the same period in 2018. The BRC said that total sales had fallen by a monthly average of 0.1% in 2019 compared with 2018. | |
| Greggs (GRG) raised its profit forecasts for the fifth time as the high street bakery chain continues to “defy gravity”. Roger Whiteside, 61, chief executive, has focused on shifting Greggs away from its baked goods and on capturing the food-to-go market, as well as appealing to customers with healthier options and breakfast products to encourage more store visits. Mr Whiteside said that the launch of its vegan sausage rolls had resulted in a “phenomenal year” for the business. Greggs toasted a 13.5% jump in total sales for the year and a 9.2% rise in like-for-like sales. Last week it launched a vegan steak bake and doughnut to cater to growing demand from customers wanting to cut down on meat. Greggs said that the stellar sales meant it that its full-year pre-tax profits should be higher than the £111 million that analysts have been forecasting. Greggs cautioned that it was facing higher costs next year from the increases to the national living wage and a rise in global pork prices, caused by swine flu in Asia. Mr Whiteside said that Greggs was trying to use its benefits of scale and efficiencies to limit the increases and added that it had invested in more automation at its manufacturing sites. |
 | Lenders to Ted Baker (TED) have drafted in advisers to examine the health of the fashion retailer after a torrid year. Barclays, Royal Bank of Scotland, HSBC and Santander have appointed restructuring experts from FTI Consulting to undertake a review that could lead them to tighten the terms of the debt they provide, Sky News reported. The move comes six months after Santander helped to refinance Ted Baker’s working capital facility, which had been due to expire in September. Fashion businesses require significant cash buffers as they must put in manufacturing orders months before they receive any money from clothes sales. Analysts have said that Ted Baker could be forced to raise cash after its profits fell by 90%. Disappointing trading over the festive period could mean that the retailer comes close to reaching the ceiling on its borrowing arrangements of £120 million. |
 | British Land Company (BLND) miserable start to the year continued yesterday when Westminster city council rejected its application to build an 18-storey “terracotta” office block in Paddington, west London. British Land bought the 11-acre Paddington central plot back in 2013, since when it has built a mix of homes, offices, leisure and retail space, all within a stone’s throw of Paddington railway station. The developer had hoped to win approval to start building what it described as the “final piece of the masterplan”. Instead, it said it was “disappointed” with the council’s decision and would look at its options. |
 | Elementis (ELM) looked worse for wear after Jefferies did away with its “buy” rating, cutting it to “hold”. Analysts cut their forecasts for the company, which makes ingredients used in make-up and skincare products, after “softer-than-expected trading” in its chromium and energy businesses. |
 | Ramsdens Holdings (RFX) said that pre-tax profits for the year to the end of March would be “comfortably ahead” of forecasts. Punters rushed to snap up its second-hand Rolexes, while the company has taken advantage of the soaring gold price to scrap jewellery that has been sitting in its stores. The news sent the share price climbing to a record high of 247p. |
 | MPAC Group (MPAC) lifted its forecasts, the second time it has done so in the past four months. The shares rose to 244½p, their highest level for 15 years. |
 | Tempus – Ocado Group (OCDO): Buy. The profit opportunity from its present partnerships alone is huge and earnings will begin this year |
 | Tempus – Polypipe Group (PLP): Avoid. Good-quality company but its rating is full one |
  | BP’s plan to offload its stakes in some of the North Sea’s older oil and gasfields in a $625m (£477m) deal with Premier Oil (PMO) could be derailed by a row over Premier’s $2bn debt pile. BP (BP.) agreed to sell its share in the Andrew and Shearwater fields to its smaller, debt-laden rival as part of a plan to pare its ageing North Sea portfolio. Under the terms of the deal BP will hand Premier Oil the Andrew platform and its controlling stake in five surrounding fields, as well as its minority stake in the Shearwater field, which is operated by Shell. In a separate deal, Premier Oil has also agreed to pay $246m to Dana Petroleum to buy a separate clutch of North Sea assets. The FTSE 250 oil producer believes the fields, which together produce the equivalent of 23,000 barrels of oil a day, should help to generate $1bn of free cashflow to the end of 2023, which would help pay off its debts. But one of Premier Oil’s largest creditors has warned it will “vigorously contest” the spending spree, which will require a $2.9bn refinancing and a $500m equity raise. Hong Kong’s Asia Research and Capital Management (ARCM) said it would “take all steps to oppose the company’s proposal”, adding it was “deeply concerned” that Premier plans to invest in the North Sea basin. |
 | Supermarkets recorded the slowest Christmas sales growth in at least four years as the big four chains lost sales, according to industry analysts. While grocers took a record £29.3bn in the so-called golden quarter, the 0.2% rise in sales across the sector was the lowest rate of growth since 2015, according to research firm Kantar. Rival analysts at Nielsen said the growth was the worst in five years, with families spending less on alcohol. Morrison (Wm) Supermarkets (MRW), which on Tuesday revealed a 1.7% slide in sales in the 22 weeks to 5 January, said it had endured an “unusually challenging period for sales” as consumer confidence was subdued by concerns about Brexit and the wider economy. |
 | Barclays (BARC) pressed to stop financing some fossil fuel groups. Funds put financial industry at centre of climate debate with landmark resolution |
 | Burford Capital (BUR) shares jump after US class action lawsuit dropped. Litigation funder presses ahead with plans to list on US stock market |
| Lex – Premier Oil (PMO)/BP (BP.): well to do. Producer announces $871m of acquisitions in North Sea |
| Aston Martin Holdings (AML) issues fresh profit warning as car sales drop. Luxury automaker will draw down $100m of debt after ‘difficult year’ | |
| Premier Oil (PMO) creditor vows to fight refinancing plan. Group to buy two North Sea assets from BP (BP.) as smaller producers move into region |
| Morrison (Wm) Supermarkets (MRW) supermarket chain hit by drop in group sales. UK group maintains profit forecast despite difficult festive trading for food retailers |
| Legal action against litigation funder Burford Capital (BUR) over allegations of irregular accounting practices has been withdrawn. Burford has been under pressure after short-seller Muddy Waters questioned its corporate governance and accounts in a scathing report, prompting it to agree to a major overhaul of its boardroom and to improve accountability. Yesterday Burford said: ‘The US securities class action against Burford filed in August 2019 has been withdrawn and dismissed in its entirety.’ The company said two new non-executives will be unveiled ahead of the annual shareholder meeting in May, and a listing in the US. |
| Aston Martin Holdings (AML) shares have plunged more than 75% below their float price after the car maker issued yet another profit warning. After what chief executive Andy Palmer described as a ‘bloody difficult year’, profits for 2019 are set to almost halve to £130million. One analyst branded the performance as ‘one of the biggest flops in living memory’. Aston Martin saw car sales fall 7% last year to 5,809. It reported ‘rapidly’ growing orders for the new DBX four-by-four, seen as key to Aston’s success. But it was held back by weak European sales and subdued demand for its Vantage model. | |
 | Safestore Holdings (SAFE) says it is in a ‘strong position’ despite a operating profits falling by 17%. The Hertfordshire firm increased its revenue by £7.9million in the 2018/19 financial year to £151.8million. The company has also been growing its presence in the UK, Netherlands and French self-storage markets and on Tuesday, it announced a £15million deal to enter the Spanish market. Safestore put the fall in profits down to a change in its property portfolio valuation. It acquired a number of new sites during the year, including a Heathrow site for £6.6million, storage units in Chelsea and St John’s Wood in London for £14million, and four stores in Barcelona after taking possession of Spanish firm OhMyBox. The group also purchased a 20% stake in Dutch firm M3, which has six stores in Amsterdam and Haarlem. |
| Barclays (BARC) must end the £13billion a year it sends to finance fossil fuel companies and stop funding coal mines and controversial tar sands exploration, a group of shareholders has said. Eleven institutional investors, including several pension funds, want it to phase out its financing of ‘active agents of driving the climate crisis’. The investors, who own about 1% of shares, want a vote at May’s shareholders’ meeting on a motion to gradually stop project finance, corporate finance and underwriting of projects not aligned with the Paris climate agreement. ‘Piecemeal changes in energy policy will no longer cut it. ‘For too long, minor policy improvements have provided cover for the banking sector, while failing to halt fossil fuel financing,’ said Jeanne Martin at the Share Action charity. |
 | A partner at ULS Technology (ULS) major shareholder has joined its board as a non-executive director. Oliver Scott, 52, is an investment manager at funds group Kestrel, which owns 24% of ULS’s shares. Software provider ULS, whose systems help automate housing transactions, has seen shares jump by as much as 42% since the December election. But shares in the firm stumbled on news of the latest hire. |
| BP (BP.) has announced it will sell its oil fields in the North Sea for $625million (£475million). Premier Oil (PMO) is acquiring the Andrew Area and Shearwater oil sites from the company in the hope that the fields will produce enough oil to improve the company’s financial situation. The two areas produce between 39,000 and 44,000 barrels of oil a day while the Shearwater site has estimated reserves of 25 million barrels. The cost of the acquisition works out at less than 10 dollars per barrel of oil, while it will cost Premier around 20 dollars to extract it from the ground. This means that as long as the price of oil stays above 30 dollars, the driller will be able to make a profit. The deal comes as the oil price notched above 70 dollars per barrel on Monday, following tensions arising from the killing of Iranian general Qassem Soleimaini in a drone strike by the United States.Traders fear that if tensions in the Middle East are further exacerbated, oil supplies from the region could suffer major cuts, pushing up the oil price even further. |
| Premier Oil (PMO) is facing a public showdown with its largest creditor over plans to refinance and go on a North Sea acquisition spree. The energy group yesterday revealed plans to buy BP (BP.) oilfields in the region for £475million and an agreement worth up to £188million to buy assets from Korea’s Dana Petroleum. The announcement came alongside £2billion refinancing proposals that would give it breathing room until 2023. But its biggest creditor, Hong Kong-based hedge fund Asia Research & Capital Management (ARCM), has vowed to fight the strategy, urging Premier to ditch the deals and plough all its money into paying off debt. City insiders say shareholders are furious that ARCM is kicking up a storm when it also has a huge short position against Premier. Although ARCM has bought around 15% of Premier Oil’s debt, it has also short-sold a whopping 17% of its stock – meaning it would make a huge gain if its shares lost value. Premier argues that the North Sea deals would help bring in an extra £760million by 2023. So the rabid fight back against what seems to many to be a good option has raised eyebrows. And even if ARCM has pledged to disrupt the deals, it is not clear that it can, as Premier is just shy of the 75% of its creditors needed to give their backing. |
| NMC Health (NMC) tumbled 177p, to 1494.5p. Finablr PLC (FIN), a currency exchange firm which was also set up by NMC’s founder, fell 9.5p, to 154.5p. After the stock market closed, it was revealed that two Middle Eastern businessmen were set to sell around £370million shares in NMC, and £57million in Finablr. Saeed Mohamed Butti Mohamed Khalfan Al Qebaisi and Khaleefa Butti Omair Yousif Ahmed Al Muhairi said they were selling the shares to help pay off their own debts. But this will come as little comfort to shareholders in the firms, who are worried that Muddy Waters’ attack on NMC will continue to ward off new investors. |
 | Marks & Spencer Group (MKS) was given a boost by brokers at Berenberg, who bestowed on it a rare double upgrade from ‘sell’ to ‘buy’ ahead of its third-quarter trading update tomorrow. Berenberg analysts think there will be a ‘significant improvement’ in its clothing and home arm and shares rose 5.3p, to 218.4p. |
 | Technology group BATM Advanced Communications Ltd. (BVC) was on the up after it received its first commercial order for a new DNA-based medical diagnostics system from an Italian medical equipment distributor. |
| British savers piled into UK stock market funds at the fastest rate for more than four years following the Conservative Party’s overwhelming election victory as they bet on a dealmaking and investment spree. Investors poured a net total of £1bn into UK-focused funds in December, more than double the previous largest monthly inflow in July 2015, according to Calastone which processes cash transfers. Investment in UK-focused funds began to pick up in October and November once the general election was called and intensified as Boris Johnson’s Tories pulled ahead in the polls. | |
| Hedge fund tycoon Crispin Odey, the outspoken Brexiteer accused of betting against Britain, saw his main fund slump in 2019 after his bets failed to pay off. The investment grandee’s flagship European fund fell 10.1%, according to performance data from the company which showed that his other funds also fell for the year – losses he blames partly on turbulence in Argentina. Argentina’s currency, the peso, plunged 20% in August following an election and potential change of government which sent shock waves through markets. | |
| Premier Oil (PMO) faces a legal showdown with a hedge fund fighting against a deal to snap up drilling fields in the North Sea. The company agreed to buy the fields from BP (BP.) for $625m (£474m) on Tuesday at the same time as it unveiled a $2.9bn refinancing plan. But Premier faces stiff resistance from Hong Kong-based Asia Research and Capital Management (ARCM), its biggest creditor, which has mounted an assault on Premier as it races to secure fresh funding. The hedge fund has built a £130m bet against Premier’s shares – believed to be one of the biggest short positions in UK history – while buying more of its debt. |
| Burford Capital (BUR) has pledged to forge ahead with a US listing as it fights to rehabilitate itself after a hedge fund attack wiped more than £1.5bn off shares last year. Guernsey-registered Burford also announced a management shake-up on Tuesday and vowed to publish more details on bosses’ pay. The company is seeking to respond after an assault by Californian short-seller Muddy Waters in August, which accused it of overlooking major financial problems. Muddy Waters claimed that Burford was “a poor business masquerading as a great one” and criticised its transparency, governance and accounting practices. |
| Cautious shoppers, heavy discounting and a decision to shun Black Friday triggered a fall in sales at Morrison (Wm) Supermarkets (MRW), bosses have said. David Potts warned that trading had been “unusually challenging” as the chain post a 1.7% fall in sales for the 22 weeks to Jan 5. Separately, the retailer emerged as the worst-performing supermarket for the 12 weeks to Dec 29, a crucial period for the nation’s grocers, research firm Kantar said. Sales were 2.9% lower than a year earlier. |
| Britain will be “the winner” after Brexit, with the pound rallying and stock markets rising once a workable exit deal has been secured, a leading American investor has predicted. Of all European markets, only Britain will outperform the United States and Asia, equity strategists at Blackstone, the asset manager, said. For 35 years, Byron Wien, 87, vice-chairman of Blackstone’s private wealth group, has published a list of “ten surprises” for the year ahead. The list, now co-authored with Joe Zidle, chief investment strategist, defines a “surprise” as an event that is more likely to occur than not but to which the average investor assigns only a one in three chance of happening. In this year’s list, the investors say: “Having secured a workable Brexit deal, the United Kingdom turns out to be the winner in its divorce from the European Union. “The UK benefits from a long transition period, and growth exceeds 2% as foreign direct investment resumes now the outlook is clarified.” | |
| Another debilitating profit warning from Aston Martin Holdings (AML) has lifted the bonnet on the deepening financial crisis at the Warwickshire-based maker of luxury sports cars. In an unscheduled trading update yesterday, Aston Martin admitted that key operational and financial performance indicators were travelling down the wrong track. The number of cars it delivered to dealers fell by nearly 10 per cent to 5,809 last year, while its underlying operating performance almost halved, with earnings before tax, debt interest and depreciation set to slump to between £130 million and £140 million from £247 million in 2018. | |
| The boss of Morrison (Wm) Supermarkets (MRW) has said that it will take “learnings” from a disappointing Christmas performance after a decision to scrap Black Friday-themed promotions hurt its sales. Morrison’s, which is the first of the big grocers to report how it fared over the festive period, announced a 1.7% drop in like-for-like sales excluding fuel and VAT in the 22 weeks to January 5, which include the third quarter. The decline was slightly better than the 2.2% that had been feared by analysts. During the third quarter to November 3, like-for-like sales were down by 1.2%, with analysts at Bernstein suggesting that this meant sales over Christmas had fallen by 2.6%. |
| Climate activist investors in Barclays (BARC) are bringing a formal shareholder challenge to try to force it to phase out the financing of fossil fuel companies, in the first move of its kind at a European bank. Eleven institutional investors with more than £130 billion under management have filed a resolution to be voted on at Barclays’ annual meeting in May. It asks the bank to “set and disclose targets to phase out the provision of financial services” to energy and utility companies that are not aligned with the Paris agreement on climate change. It is backed by shareholders including Brunel Pension Partnership and LGPS Central — which between them manage the assets of 18 British local government or public sector pension funds — Sarasin & Partners, Folksam and more than 100 individual shareholders. It was co-ordinated by Share Action, a charity that promotes responsible investment. |
| Two of the controlling shareholders of NMC Health (NMC) were seeking to offload about $500 million of shares in the beleaguered private healthcare group last night to cut their debts. In a statement after the market had closed in London, it emerged that Saeed Mohamed al-Qebaisi and Khalifa Butti al-Muhairi hoped to sell shares worth a combined $490 million in NMC and shares worth $75 million in Finablr PLC (FIN) via an accelerated bookbuilding by Credit Suisse, Deutsche Bank and Barclays. The nature of the share sale suggested that the pair were selling stock after a margin call on shares that they had pledged in return for debt. Muddy Waters’ report had claimed that Khalifa bin Butti and Dr Shetty had pledged about £700 million of shares. |
| Premier Oil (PMO) is facing opposition from its largest creditor to its plans to buy $870 million of North Sea assets. Asia Research and Capital Management has come out against the acquisitions, as well as opposing proposals for Premier to extend the maturity of its debt by more than two years to November 2023. Premier intends to pay $625 million to buy assets in the Andrew area and a stake in the Shearwater field from BP. It also wants to buy a 25% interest in the Tolmount area from Dana Petroleum, an Aberdeen-based subsidiary of Korea National Oil Corporation, for up to $246 million. The deals would be funded through existing cash facilities, a $500 million rights issue and a bridging facility of up to $300 million. The explorer has been talking to its lenders about the purchases and its refinancing options for several months and is confident that it has enough support. For the refinancing to succeed, Premier would need 75% of voting lenders to approve its proposals. It says that it has support from nearly 73% of senior lenders. |
 | Silence Therapeutics (SLN) said that it had entered a technology evaluation agreement with Takeda, prompting its shares to rise by more than 8% yesterday. The London-based Silence is developing medicines using technology that can selectivity inhibit any gene in the genome, “silencing” the production of disease-causing proteins. Under its deal with Takeda, Silence said that it would “explore the potential of utilising Silence’s platform to generate siRNA molecules against a novel, undisclosed target discovered by Takeda”. Takeda — a Tokyo-listed company that bought Shire, a FTSE 100 pharmaceuticals rival, for $62 billion a year ago — will provide Silence with research funding and the two companies have agreed to negotiate the terms of a licence agreement should their initial evaluation study prove successful. |
| Burford Capital (BUR) is to push ahead with an American listing despite a short-selling attack knocking the London-quoted litigation funder’s shares by more than 40%. The company also announced a series of management changes and promised to increase transparency over executive pay as it sought to allay market concerns over governance. Burford confirmed that it was working towards a listing on the New York Stock Exchange or on Nasdaq or on a move from Aim to London’s main market. “The ultimate timing for any listing is difficult to predict and will depend on a variety of factors, including the [US Securities and Exchange Commission] comment process,” it said. The management changes include the joint appointment of Aviva Will and David Perla as co-chief operating officers. Christopher Bogart remains chief executive and joins the board. Burford also said that a US securities class action lawsuit filed against the company last August had been dismissed, leaving no litigation pending. However, Muddy Waters hit back against the statement, warning that the litigation dismissal should not be interpreted “as affirmation that there is no misleading conduct or wrongdoing at the company”. |
| Marks & Spencer Group (MKS) was on the end of another analyst upgrade yesterday, its fifth in a month. The latest bull to be welcomed through the high street stalwart’s doors was Berenberg, which lifted the stock from “sell” to “buy” and raised its price target by 90p to 250p. The German bank joins HSBC, JP Morgan, Goldman Sachs and RBC Capital, all of which have upped their recommendations, in the M&S love-in. Berenberg decided to make its move before the retailer’s trading update tomorrow, which it expects will show a “significant improvement” in the clothing and home business, while like-for-like sales in the food division should “remain positive”. The analysts are particularly enthused by the recent appointment of Richard Price, head of the M&S clothing and home division. “We are more optimistic following the appointment of Mr Price to lead the division, where we believe the buying and merchandising strategy has been a core issue,” Michelle Wilson, a retail analyst at the bank, said. Ocado Group (OCDO) jumped 54p to £13.26 and was further boosted by a comment from Berenberg that its joint venture with M&S representeds an “attractive long-term opportunity”. |
 | Tempus – Rightmove (RMV): Hold. Demonstrating resilience and ability to diversify and grow in a highly competitive property market |
 | Tempus – Dignity (DTY): Avoid. Too much uncertainty over the outcome of watchdog’s investigation |
| 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. | |
| London transport authorities do not expect the £18bn Crossrail line to open before autumn 2021, in the latest delay to Europe’s largest infrastructure project. The capital’s transport commissioner said the latest working assumption was that the central section of the Elizabeth line, as Crossrail will be known, will start operating between September and December next year. “We’ve looked at a delay until the later stages of 2021, in terms of our business planning assumption,” Mike Brown said. “The assumption we’ve made is, I suppose, at the pessimistic end. But it’s the pragmatic end.” Before Brown’s announcement, Transport for London had said the line would open between 2020 and March 2021. Brown told London assembly members on Monday that Crossrail had underestimated the scale of the task remaining, with some stations apparently near completion but then requiring more work to replace systems and wiring. |
 | Lex – Plus500 Ltd (DI) (PLUS): double down. Online trading group’s bold bets weigh on its valuation |
 | HSBC Holdings (HSBA) fortunes are more tied to Hong Kong than ever. The bank’s reliance on greater China is proving risky in light of recent political upheaval |
| 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. | |
| NMC Health (NMC) has launched an investigation into its own finances following an attack from a feared short-seller. US hedge fund Muddy Waters targeted NMC last month, issuing a 32-page roasting that queried the value of its assets, the amount of cash it had as well as debt levels and profits. In an update yesterday, NMC named the four independent board members who will oversee the review of its books – former Ernst & Young partner Jonathan Bomford, Tarek Alnabulsi, Salma Hareb and the colourful City figure Lord Clanwilliam. It will start by confirming the amount of cash it had on December 15, while the wider probe will be completed ‘well in advance’ of its full-year results, which last year came out in May. The update came under fire from Muddy Waters on Twitter, with the group dismissing its plans to start with the cash balance as ‘an incomplete exercise’ if the company does not also provide a full overview of its debt. |
| 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. |
  | Hikma Pharmaceuticals (HIK) was knocked by a downgrade on its stock from ‘neutral’ to ‘underweight’ by brokers at JP Morgan, who chose AstraZeneca (AZN) as their top pick among major medicine makers. The assessment should have been a shot in the arm for Astra, but as economic data showed a rebound in the services sector, the pound rose, which knocks the dollar-denominated earnings of companies such as Astra. |
 | 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. |
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