| Gold prices hit a seven-year high as traders fled to safe havens after the Iran crisis deepened following the assassination of commander Qassim Soleimani. The precious metal climbed to $1,585 an ounce, its highest level since April 2013, while oil rose above $70 a barrel for the first time since the September rocket attacks on Saudi Aramco facilities. European markets fell sharply at the open, before recovering later in the session as US traders struck a wait-and-see stance. Tensions between Washington and Tehran have escalated sharply since Mr Soleimani was killed by an airstrike in the early hours of Friday. | |
| 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. | |
| Transport for London has confirmed fresh delays to Crossrail, the east-west train line that has already blown its budget by billions of pounds. Outgoing TfL commissioner Mike Brown confirmed the rail link – Europe’s biggest infrastructure project – will not start until September 2021. Crossrail was originally budgeted to cost £15.9bn. Current estimates of the final bill are £18.25bn. London Mayor Sadiq Khan had hoped to open Crossrail, known as the Elizabeth Line, in December 2018. However, a string of problems, in particular with the testing of signalling, has led to repeated delays. | |
 | Questor: easyJet (EZJ) clever use of data and ability to react to new challenges make it a buy. Questor share tip: the low-cost airline is exploiting pricing anomalies, cutting cancellations and choosing where it expands with care |
| 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. | |
 | Lekoil Ltd (DI) (LEK) has appointed a former British minister for Africa to its board. Mark Simmonds, who spent two years in government under David Cameron, is strengthening a portfolio of business interests across the continent by joining Lekoil. He was recruited as non-executive director of the £51 million explorer and producer alongside Tony Hawkins, chief executive of Columbus Energy Resources, an oil and gas business focused on Trinidad and Surinam. They will join the board immediately. |
 | 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. |
 | 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. |
 | 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.” |
 | Hikma Pharmaceuticals (HIK) was one of the index’s heaviest fallers, sliding 74p to £19.12 on the back of a bearish research note from JP Morgan. Analysts at the investment bank warned that the company’s bosses “could slightly disappoint” with their guidance for the generics business for the year ahead when they next update the market in March. |
 | Tempus – Plus500 Ltd (DI) (PLUS): Sell. Australian clampdown poses a risk to its business |
| Senior executives in the UK’s top 100 companies took just 33 hours to be paid more than the typical worker’s annual salary, according to data that unions say should be a “source of national shame”. Figures released by the High Pay Centre thinktank showed that the typical FTSE 100 chief executive is paid 117 times more than the median worker, at £901.30 an hour or £3.46m a year. It means that by 5pm on 6 January 2020, the chief executives of Britain’s largest listed businesses will have pocketed more than the £29,559 annual salary earned by the median full-time employee, who is taking home about £14.37 an hour. Tim Roache, general secretary of the GMB union, said: “It should be a source of national shame that in just a handful of days, company fat cats will have made more money than the typical UK full-time worker will earn in the entire year. “These empires are built on the back of hardworking staff, many of whom will be struggling to make ends meet.” | |
| Oil prices were expected to jump this week after the threat of retaliation for the assassination of Iranian general Qassem Suleimani spooked international commodity markets, sending prices up 3.6%. The price of a barrel of Brent crude leapt to $68.60, up from $66.25 on Friday when the US launched its rocket attack against Suleimani and his convoy near Baghdad international airport. Analysts warned any retaliation could affect supplies of crude oil through the Strait of Hormuz, which is the world’s busiest passageway for tankers carrying oil and natural gas. | |
 | Next (NXT) has emerged as a winner from a tough Christmas trading period for Britain’s retailers after a cold November stoked demand for winter coats and knitwear. The high street company reported full-price sales growth of 5.2% for the last two months of 2019, which was well ahead of its forecasts. The better than expected outcome meant Next nudged up its profit guidance for the year by £2m to £727m. Under its longstanding chief executive, Simon Wolfson, Next has been one of the industry’s most resilient retailers. The strength of its home shopping arm, which sells other fashion brands as well as its own, helped offset falling sales in its high street chain. The same was true this Christmas, with in-store sales falling 3.9%, while online sales jumped 15.3%. |
 | 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 |
 | BP (BP.) sets target to create five unicorns by 2025. Launchpad aims to build large companies to meet clean energy challenge |
| Word on the street is that Quilter PLC (QLT) is likely to see significant ‘corporate activity’ in the very near future. City sources said the business may soon be involved in a ‘major corporate move’ such as a merger. However, the precise details remain hazy at the very best. Some investors suggested that Quilter – formerly known as Old Mutual Wealth Management – might be planning to announce a special dividend or share buyback following the completion of the £445 million sale of its life insurance business, Quilter Life Assurance, to ReAssure Group. The company said last week it expects to finalise the potential cash return to shareholders no later than when Quilter’s full-year results are released in March. | |
   | Tesco (TSCO) led the pack of supermarket giants during a sluggish Christmas period that saw deep price cuts and some shops left deserted. Britain’s largest grocer may even have increased its sales in a lacklustre December, leaving some of its main rivals in the shade, according to City predictions. Christmas is a key month in the retail calendar and the end of a ‘golden quarter’ on which bosses are scrutinised. Such a performance would be a relief to chief executive Dave Lewis, who wants to leave Tesco in good shape when he departs later this year. Analysts said the group’s British shops delivered a ‘robust’ performance compared with stock market-listed rivals Sainsbury (J) (SBRY) and Morrison (Wm) Supermarkets (MRW). Cautious shoppers are understood to have made fewer trips to the shops in December amid political uncertainty around the Election. |
 | MIDAS SHARE TIPS: Rev up your returns with our fast-moving trio of tips for 2020. Midas verdict: Codemasters (CDM) is a fast-growing business in a resilient industry. At £2.78, the shares are a buy. Midas verdict: Yourgene Health plc (YGEN) went through tough times but it has emerged from its battles with renewed strength and vigour. Genetic medicine is growing fast, reproductive health is a key area within it and Yourgene is at the forefront of the field. Management, including Rees, own more than 20 per cent of the stock as well, so they are incentivised to make the business work. At 13.75p, the shares are a buy. Midas verdict: The UK stock market has underperformed many of its peers but that should begin to reverse this year and beyond. Murray Income Trust (MUT) offers investors the chance to reap the benefits as that underperformance unravels – and there is a generous income stream too. At £9.02, the shares are a buy. |
  | Marks & Spencer Group (MKS) break-up chatter lingers as it pins hopes on Ocado Group (OCDO) deal. Retail giant focuses on food as problems at its clothing arm throw turnaround off course |
| HSBC Holdings (HSBA) suffered the biggest plunge in investment banking fees in the City last year following a turbulent 12 months for Europe’s biggest lender. The bank, which is finalising plans to assemble a new mergers and acquisitions team focused on mid-market transactions, saw its deal advisory fees drop by nearly half last year, according to data commissioned by The Telegraph from data provider Refinitiv. HSBC received income of more than $212m (£162m) for work on M&A deals last year, down from $377m the previous year. The nosedive represented the biggest decline for a major investment bank across the City, reducing HSBC’s share of the overall UK total from 6% in 2018 to just under 4% last year. |
| The eurozone has suffered the weakest post-crisis recovery after a lost decade for swathes of the ailing region, with analysts predicting the economic malaise will extend into the 2020s. The currency bloc has lagged every other major developed economy since the global recovery started in 2009 as a chasm between the performance of northern and southern eurozone countries emerged. Real GDP rose by 15% over the period, nearly half that of the US and behind other developed economies, including the UK and even sluggish Japan. The output of southern eurozone economies – Greece, Italy, Portugal and Spain – collectively inched up just 4%pc as tensions simmer with their stronger northern counterparts. | |
 | Questor: the outlook for Barratt Developments (BDEV) is brighter but the shares still look too cheap. Questor share tip: the Government will continue to support housebuilders while homes are more affordable than in the past |
| One of the country’s biggest property investment families has called the bottom of the shopping centre slump after spending almost £23 million on two struggling properties. The Oglesbys, who are worth an estimated £667 million and control more than £1 billion of properties, say that the slide in retail values has reached its nadir and the asset class now represents a big opportunity. Bruntwood, the Oglsebys’ company, which is based in Manchester, bought Stretford Mall and the Stamford Quarter in Trafford in a 50:50 joint venture with Trafford council. Each invested £22.5 million in the centres and adjacent land suitable for development. | |
 | Compass Group (CPG) is set to launch the search for a new chairman as Paul Walsh prepares to leave the contract catering business earlier than some had expected. Mr Walsh has chaired the £30 billion business for six years. Directors of Compass are expected to consider internal and external candidates to succeed him, according to Sky News. Many had believed that Mr Walsh, 64, would stay on until 2023. |
 | The joint chief executives of Numis Corporation (NUM) are set to become the highest-paid bosses on London’s junior market AIM after the midmarket stockbroker revealed their bumper share awards. Ross Mitchinson and Alex Ham could each receive shares worth about £9 million next autumn after hitting targets disclosed in the company’s annual report. It comes despite a bumpy year for the Aim-listed broker, which endured a slump in flotations and thin equity trading volumes amid tough market conditions, suppressing its profits by more than half. |
 | Takeaway.com is set to clinch a £6 billion acquisition of Just Eat (JE.) this week after seeing off a rival suitor for the food delivery group. The Dutch operator declared just before Christmas that its all-paper offer had received acceptances from investors speaking for 46.07 per cent of Just Eat’s shares and it is poised to pass the 50% target in the next few days. Shareholders of Just Eat have until Friday to vote either for Takeaway.com’s recommended bid or an 800p-a-share cash offer from Naspers, the South African tech investor bidding through its Dutch subsidiary Prosus. While Prosus’s offer remains open, it effectively threw in the towel on December 20 when it scrapped plans to make market purchases of Just Eat shares in support of its cash offer. The last acceptance level it disclosed was less than 1%. |
 | An activist shareholder has increased the pressure on Stock Spirits Group (STCK) after the vodka maker dismissed its proposal for a special dividend. Western Gate Private Investments accused the Stock Spirits board of arrogance after it said that it could legally disregard a vote in favour of the special resolution. Western Gate represents the family office of Luís Amaral, a Portuguese businessman with a 10 per cent stake in Stock Spirits, which is listed in London. It had urged fellow investors to vote in favour of a special dividend at the company’s annual meeting on Thursday and accused the board of being “unwilling to return cash to patient investors”. |
 | The supermarket giants will reveal underwhelming Christmas sales figures this week, as the relentless pressure from discount rivals Aldi and Lidl continues to cast a shadow over the sector. Morrison (Wm) Supermarkets (MRW) is expected to be the biggest loser, with analysts at Barclays forecasting that, excluding its wholesale business, like-for-like sales will have fallen by 2.5% over the festive period. The City also expects Tesco (TSCO) and Sainsbury (J) (SBRY) to report declines in sales, albeit more modest. “I don’t think there will be any great disasters, but people won’t exactly be popping champagne corks,” one senior supermarket source said. “The volume of sales has been buoyant but that hasn’t translated into value because the price competition has been so intense.” Aldi and Lidl reduced prices on bags of festive vegetables to just 15p to lure shoppers through their doors in the run-up to Christmas. Over the past decade, the expansion of the discounters squeezed the big four supermarkets’ profitability by about 40%. Aldi and Lidl are still opening about 100 stores a year between them. Apart from Aldi and Lidl, B&M European Value Retail S.A. (DI) (BME) and Home Bargains are expanding their store networks, while online takeaway firms such as and meal-kit providers such as Hello Fresh are progressively nibbling away at supermarket sales, which have been especially subdued since the summer. The societal shift towards lower waste and more mindful consumption brings additional challenges. |
 | Anglo American (AAL) has come under pressure from a small cohort of investors to keep mining thermal coal, highlighting the conflicting demands of climate change on the company. Anglo has been under growing pressure from investors to quit its thermal coal business. Burnt in power stations, it is a big factor in carbon emissions. Anglo, revived by chief executive Mark Cutifani, has said it will quit thermal coal mining, but has not stated when. Anglo has come under pressure from South African investors not to ditch thermal coal completely, over fears for the country’s energy security and economy. However, other investors are against coal mining: Norway’s $1 trillion (£764bn) wealth fund is to stop backing companies that extract more than 20m tons of coal a year, while Australia’s bush fires have stoked debate about coal mining in the country. |
 | Bonmarche Holdings (BON) creditors are unlikely to recover much of the £23.9m they are owed, following the fashion retailer’s collapse in October. FRP, which is handling the administration, said in a report that it could not guarantee there would be enough cash to make any distributions to unsecured creditors. These include suppliers, owed £12.6m, and HMRC, owed £1.1m. Retail tycoon Philip Day, worth £1.2bn according to The Sunday Times Rich List, bought the fashion retailer in July in a cut-price £5.7m deal, despite warnings from auditor PwC that it might not continue as a going concern. After the business was placed in administration, Peacocks, part of Day’s Edinburgh Woollen Mill Group, tabled a bid to buy back the chain shorn of its debts and rent obligations. FRP has named Peacocks as its preferred bidder. |
 | Aggressive activist investor Elliott Advisors has quietly cut its stake in Hammerson (HMSO), easing some of the pressure on the heavily indebted shopping centre owner. Last month, Elliott reduced its position, held through derivatives, to below 5% of Hammerson’s stock. The activist started ploughing in to Hammerson shares after the owner of Birmingham’s Bullring shopping centre rebuffed a £5bn takeover approach from French mall owner Klépierre in April 2018 — a 41% premium to its share price at the time. Since then, the share prices of retail landlords have plunged amid a spate of bankruptcies and store closures. With more pain expected on the high street this year, Trafford Centre owner Intu has told investors it will likely resort to a rights issue to stave off collapse. |
 | The government’s pubs code adjudicator found that Marston’s (MARS) had broken industry rules and was “significantly deficient” in its treatment of Edward Anderson, a tenant. Marston’s claims the finding will have “no consequence across the industry”, but tenants’ representatives say that it should pave the way for thousands of pounds of compensation for every publican similarly overcharged. Paul Newby, the adjudicator, found that Marston’s had broken the code by failing to provide Mr Anderson with accurate information on how much of the beer it was supplying was saleable. Tenants have been complaining for five years that they are charged for the size of a cask rather than the saleable pints within it. A 72-pint firkin may contain only 68 saleable pints; the rest may be yeast sediment. The brewer will pay duty to on the smaller amount but will charge the pub for 72 pints. Since rent reviews are based on sales forecasts linked with 72-pint casks, tenants say they have been overcharged by thousands of pounds a year for many years. The adjudication is the first time that the pubs watchdog has found against a pubs company on the issue. |
| Next (NXT) has raised its forecast for annual profits and claimed that consumers are in better shape than feared after increasing its sales during the vital Christmas period. The retailer said yesterday that sales had risen by 5.2% year-on-year between October 27 and December 28. The fashion chain’s performance, which counters gloomy warnings about the health of the retail sector, prompted it to increase its forecast for pre-tax profits for the year to the end of January from £725 million to £727 million, which would represent a year-on-year rise of 0.6%. Full-price sales are now expected to grow by 3.9% in the year, compared with expectations of 3.6% previously. |
| A former Tesco (TSCO) executive has been appointed as interim finance chief of Marks & Spencer Group (MKS) after the previous holder of the job left following a botched rights issue. David Surdeau, 63, will become chief financial officer on January 7, replacing Humphrey Singer. He is not a candidate for the post on a permanent basis. Mr Surdeau spent 16 years at Tesco, including as finance director of its European businesses, vice-president of its Polish operation and group director for planning, Treasury operations and tax. Mr Singer, 54, left Marks & Spencer this week. His departure was announced on September 23, just after M&S had fallen out of the FTSE 100 index and in the wake of a rights issue that had blindsided some investors. |
| The dependence of the UK gambling industry on high-spending VIPs, customers who are disproportionately likely to be addicts, has been laid bare in a secret report obtained by the Guardian. The Gambling Commission is considering whether to ban VIP schemes in Britain after collecting data from betting firms, including one that took 83% of all deposits from 2% of its customers. The report, which has emerged as the government prepares to review gambling legislation, reveals for the first time the extent to which the industry relies on VIP schemes. The much-criticised membership programmes reward gamblers who habitually lose large sums of money with perks such as free bets, cashback on losing wagers or football tickets. The award of VIP status has been cited as a factor in seven out of 10 regulatory penalties issued to companies by the commission for failures to prevent problem gambling. | |
 | On the first working day of 2020 several food retailers started selling new meat-free options, including KFC, which launched its first vegan burger nationwide. Greggs (GRG) also launched a meat-free version of its popular steakbake following the exceptional success of its meatless sausage roll last year. McDonald’s, Pizza Hut, Subway and Costa similarly unveiled new meat-substitute items on their menus, while supermarkets including Aldi and Marks & Spencer Group (MKS) ramped up their takeaway vegan efforts with everything from fishless “Tuno” sandwiches to fake smoked chicken wraps |
| Financial markets around the world have started the year on a high, with stocks rallying in Europe and setting fresh records on Wall Street as optimism grows over the improving global economic outlook. On the first trading day of the decade, shares surged after China’s central bank announced an 800bn yuan (£87bn) cash increase for the economy, and Donald Trump said phase one of a trade deal between Washington and Beijing would be signed on 15 January. In a reflection of the rising optimism, the FTSE 100 ended Thursday more than 60 points (0.8%) higher, at 7,604, while European company shares also rallied in Paris, Frankfurt and Milan. In the US, the Dow Jones industrial average reached a record high, extending gains made over the past month. | |
| Marks & Spencer Group (MKS) is looking to shed its reputation for selling frumpy clothes aimed at the over-50s in 2020 by going after the booming athleisure market with a range of affordable sportswear. From Friday the 150-piece Goodmove collection, which includes leggings, will be available. In-store leggings “experts” will be on hand to help customers choose from five styles, which start at £15 for a basic pair and go up to £45 for sculpting tights. The accompanying marketing push includes ads on social media as well as a dedicated Spotify playlist. M&S has been unsuccessfully trying to reinvent itself for nearly two decades but chief executive, Steve Rowe, is promising to make the changes. The retailer is redesigning its fashion and food ranges to attract more young families. At the end of last year it poached Richard Price, the head of Tesco’s F&F clothing and homewares label, to lead the struggling clothing division. |
| UK songs fund tunes up to treble in size. Hipgnosis Songs Fund (SONG) to expand into US and expects to have raised £2bn in two years | |
| HSBC Holdings (HSBA) forced to close Hong Kong branches after protests. Territory’s largest bank came under fire after account used to raise funds for demonstrators closed |
 | Tullow Oil (TLW) shares drop on doubts over commercialising oil well. Stock hit as FTSE 250 group says amount of oil discovered is less than expected |
 | Capita (CPI) to invest in tech start-ups in shift away from outsourcing. Company takes stakes in 5 new ventures as part of strategic overhaul |
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