IMF warns of ‘sharp declines’ in asset prices if there is ‘disorderly Brexit’. Real incomes have already been hit by Brexit headwinds, according to an analysis from global lender of last resort the International Monetary Fund (IMF). The IMF predicts that the UK economy will grow at a rate of 1.5% in 2018 and 2019 if it secures a free trade agreement with the EU, post-Brexit. Brexit had resulted in businesses investing at a lower rate than would otherwise had been expected, the IMF said.
EasyJet among firms reported to audit watchdog as Big Four dragged into climate change row. Environmental lawyers are demanding answers from the UK’s top financial auditors after reporting four of their clients to the audit watchdog for not properly flagging climate change risks to investors. Campaign group ClientEarth has reported easyJet (EZJ), Balfour Beatty (BBY), EnQuest (ENQ) and Bodycote (BOY) to the Financial Reporting Council (FRC) following concerns that they failed to address climate change threats in their latest annual reports, sources told The Daily Telegraph.
Further turmoil for Debenhams as fund-raising efforts are thrown into question. Debenhams (DEB) is facing a battle to hold on to the proceeds from a rescue fundraising, introducing fresh fears about its future. The retailer is hoping to generate as much as £200m from the sale of Danish department store Magasin du Nord to prop up its ailing finances but any deal is expected to face stiff opposition.
Horizon sets fresh direction for biotech as US activist investor takes 10% stake. US activist investor ValueAct has doubled its stake in British gene-editing specialist Horizon Discovery Group (HZD) after agreeing a deal to buy the shares from Neil Woodford. ValueAct now owns nearly 10% of Horizon, with Mr Woodford’s stake trimmed to 18%
Dairy Crest Group (DCG) buoyed by Cathedral City and Clover brands. The country’s biggest dairy company said “strong performances” from both brands meant first-half revenue would be ahead of that posted in the previous year. But with butter prices remaining high, Dairy Crest said it had restricted its promotional spend on Country Life. Demand for Frylight, Dairy Crest’s spray oil, was hit by the unusually hot summer weather.
New Boohoo boss could bag £50m bonus. Online fashion retailer Boohoo.com (BOO) has appointed a former Primark executive as its new boss and offered him a £50m bonus if he meets certain growth targets. John Lyttle, who is currently head of operations at Primark, will take over next March, replacing co-chief executives Carol Kane and Mahmud Kamani, who also founded Boohoo.
Nothing good about Unilever (ULVR) ditching UK headquarters, says major investor. Unilever’s plans to move its headquarters to the Netherlands have been dealt a blow after one its biggest shareholders said there is “only downside” from the decision. Aviva Investors will vote against Unilever’s relocation, amid growing shareholder unrest about the snubbing Britain.
ITV (ITV) – The Government will today urge the BBC and rival broadcasters to do more to challenge Russian propaganda in the wake of the Salisbury attack, alongside a rallying cry that a “strong media means a strong democracy and a strong nation”. The Culture Secretary Jeremy Wright will use a speech to the television industry to call for action against the spread of disinformation, in return for more support navigating the shift to online streaming and the rise of Netflix.
