Tesla shares are expected to rebound today after Elon Musk was forced to stand down as chairman in a boardroom shake-up at the electric carmaker. Mr Musk, Tesla’s controversial co-founder and chief executive, bowed late on Saturday to demands from America’s financial markets watchdog to relinquish his seat at the head of the board. As part of a settlement with the US Securities and Exchange Commission, Tesla will hire an independent chairman and two non-executive directors and will create a board-level committee to oversee Mr Musk’s communications.
Aston Martin is hoping that its stock market flotation on Wednesday will value it at close to £5 billion after reports of strong demand from international shareholders. Aston Martin Lagonda’s stockbrokers received bids for the entire 25% of company that they are trying to sell on the first day of an investor roadshow last week, City sources said. The strength of early demand suggests that the company is on course to price its shares at the upper end of the range of £17.50 to £22.50.
Selfridges has defied the high street downturn with a £300 million revamp of its famous store pushing profits to a record for the fifth consecutive year. Anne Pitcher, managing director, said that sales at the chain had jumped by 11.5 per cent to more than £1.75 billion. Operating earnings rose by £1 million to a record £181 million in the year to February 3.
British exports worth more than £1.9 billion have been hit by President Trump’s trade attacks on the European Union and China, analysis shows. Moreover, economists fear that UK goods worth up £3.4 billion could be affected by the acrimonious trade dispute between the United States and China. The conflict between the world’s two largest economies will have a “far greater impact” on Britain than Mr Trump’s steep foreign steel tariffs, according to the Centre for Economics and Business Research. Nevertheless, the consultancy believes that Britain and the EU could yet strike a positive agreement with the Trump administration and avoid its protectionist trade assaults after the president unveiled his first trade deal.
About 10,000 trade specialists will receive training under a government plan designed to avert crippling disruption at ports if Britain leaves the European Union without a deal. Ministers have pledged to fund courses costing £8 million for thousands of customs brokers and freight forwarders. The courses are intended to soothe industry fears over a surge in demand when Brexit takes effect next March.
Uncertainties over Brexit are causing business activity and optimism levels in the financial industry to fall sharply. A survey of 100 leading financial firms found a “widespread” deterioration in sentiment, with investment managers reporting a “striking loss of momentum” since the start of the year.
Pets at Home shows its teeth with snap at Amazon over tax. The chief executive of Pets at Home Group (PETS) says he is “frustrated” at the lack of Amazon’s tax contribution to Britain. In a letter to Philip Hammond, the chancellor, before the budget on October 29, Peter Pritchard says that there is a clear inequity in the tax system between retailers with stores, burdened by business rates, and those without. While Pets at Home is happy to pay its fair share of taxes to help to fund the infrastructure and public services it relies on, he does not believe that Amazon, the American online giant, does the same.
Germany deal tops in-tray for Nick Read at Vodafone Group (VOD). Vodafone’s shares are down by almost a third this year, wiping about £19 billion from the FTSE 100 telecoms giant’s market value, and the company is facing challenges in key markets and questions over the strength of its dividend. It also may be contending with the growing power of Elliott Advisors, the activist shareholder, which is said to have built a stake as Vodafone’s share price tumbled.
Barclays (BARC) is facing a £38.5 million bill to compensate people over solar panel loan mis-selling by businesses that brokered its finance deals. Barclays Partner Finance, a subsidiary of the bank, has reported a 15-fold increase in cash set aside for customer redress after commissioning external solicitors to review its liabilities. The Times revealed in May that Barclays faced paying compensation after solar salesman had misled households into taking out its loans to fund rooftop solar panels. About 900,000 households in the UK have solar panels installed.
