Sainsbury’s sales slide as pressure mounts after failed Asda tie-up. Sainsbury (J) (SBRY) was the only major supermarket to suffer a decline in sales in the 12 weeks to April 21, according to closely watched industry figures. The company overtook Asda to reclaim its place as the UK’s second largest grocer by market share but suffered a 1.2% drop in sales compared to the same period last year, data from Kantar showed. The figures came a day before Sainsbury’s is due to deliver its annual results, with chief executive Mike Coupe under pressure to provide an update on its strategy following its failed takeover of supermarket rival Asda.
Sirius Minerals taps investors for $400m to keep building huge Yorkshire mine. Sirius Minerals (SXX) will tap investors for $400m (£307m) in the next stage of a debt-fuelled plan to build a massive fertiliser mine under the North York Moors. The FTSE 250 company will issue new shares at between 15 and 18p, an 18 to 32% discount to the 21p price at which it was trading last week. It has also signed up Wall Street giant JP Morgan to provide the rest of the project’s financing in the form of bonds and credit up to about $3.4bn, which it reckons will be enough to build the mine and have it in operation by 2024. Adding the equity element, it means the overall cost of the mine has risen from about $3.5bn to $3.8bn, due to the increased costs of financing the project.
Standard Chartered hopes to appease ‘impatient’ investors with billion-dollar buyback. Standard Chartered (STAN) is hoping to appease frustrated shareholders by buying back up to $1bn (£777m) of its shares for the first time in at least two decades. The FTSE 100 bank announced the share bonanza on Tuesday, weeks after it promised to pay $947m to US agencies to settle allegations that it helped Iran and other sanctioned countries launder money. The move will come as a relief to its investors, including its largest shareholder Temasek, which was said to be growing increasingly frustrated with the Asia-focused bank this year. Chief executive Bill Winters insisted at the World Economic Forum in Davos that the Singapore fund had been “very supportive” of his turnaround plan.
Vodafone admits finding hidden security flaws in Huawei equipment. Vodafone Group (VOD) discovered hidden security flaws in Huawei equipment a decade ago, it said on Tuesday, amid concerns over the Chinese company developing 5G networks in the UK. The telecoms company admitted that it found vulnerabilities in technology supplied to its Italian network, which have since been resolved, according to Bloomberg. The report said the security flaws, which date back to 2009, could have given Huawei unauthorised access to Italian homes and businesses. Vodafone rejected this.
BP (BP.) profits dip as lower oil prices take their toll. BP’s profits for the first months of the year fell despite the oil major producing more barrels than the year before, as the market endured a shaky start to 2019. The FTSE 100 giant made $2.4bn (£1.9bn) in profit for the first quarter, compared to $2.6bn in the same months last year. Replacement cost profits, a standard metric used by oil companies and analysts, were narrowly ahead of forecasts that the company would make $2.3bn for the quarter. BP pointed to weaker oil market prices for the dent in its profits.
Questor: competition inquiry could be bad for VP (VP.), so we must reluctantly pull the plug. Questor share tip: trading at the hire specialist looks fine – but the regulator’s investigation into price fixing could prove damaging
AA (AA.) finance chief Martin Clarke steps down. AA’s finance chief Martin Clarke, the last of three bosses that masterminded its 2014 stock market flotation, has resigned “with immediate effect”. Mr Clarke, a former dealmaker at private equity firm Permira, said after five years in the role “now is the right time to identify the next CFO of the company who can commit to the long term”. The long-time Labour supporter and vocal critic of Jeremy Corbyn added: “For me, now is the right time to return to my twin passions of private investing and politics.” Mr Clarke, who holds a 0.2% stake in the AA worth about £800,000, said he would “remain a major personal investor in the company”.
Revival lifts WPP to six-month peak. Advertising giant WPP (WPP) hit a six-month high after analysts at Barclays said that the company’s turnaround strategy to simplify the business “looked sensible” and upgraded its rating to “overweight”. Julien Roch, analyst at Barclays, said WPP’s planned sale of consumer research business Kantar would act as a catalyst for growth. WPP’s organic growth was “good enough” and would not deplete in the second quarter of the year, he added. The upgrade helped shares rise 10p to 965p after Barclays upgraded its target price from £10 to £11. WPP has been attempting to reverse its fortunes since a series of profit warnings in 2017 and 2018.
Brexit prompts holidaymakers to look beyond EU this summer. British holidaymakers are shunning European destinations as Brexit uncertainty forces them to “venture further afield”, according to Thomas Cook Group (TCG). There has been a resurgence in the popularity the likes of Turkey and Tunisia, which have suffered from terrorism concerns in recent years. Analysis of almost 30,000 Thomas Cook customers found such destinations have become more appealing as sterling’s weakness against the euro has made holidays on the continental more expensive. Almost half (48%) of its customers were booking breaks outside the EU, up from 38% last year.
