Here’s The Telegraph’s look at today’s news from the City – Thursaday 5th February 2015
TESCO UNDER INVESTIGATION OVER SUPPLIER MISTREATMENT
Tesco’s financial accounting scandal continues: The Groceries Code Adjudicator has this morning opened an investigation into the supermarket group’s treatment of its suppliers.
Questionable deals led to a £263m black hole in Tesco’s accounts and saw a number of executives suspended. The GCA says it has a reasonable suspicion that Tesco breached industry codes. More here
ECB TIGHTENS THE SCREW ON GREECE
A surprise announcement from the European Central Bank last night is sure to be the talking point today as Greece’s banking sector reels from a drop in support.
The ECB yesterday said that Greek bonds – which make up much of the collateral behind its loans to Athens’ banks – are now invalid, and told lenders to go to Greece’s own central bank. The euro has fallen this morning. Read more
Having been in negotiations since December, the two telecoms groups have formally announced the deal, which BT says will create “the UK’s leading communications provider”.
EE’s two owners, Deutsche Telekom and Orange, will both take stakes in BT. Chief executive Gavin Patterson says consumers will benefit from “increased investment and innovation”. More here
ASTRAZENECA DOES $600M DEAL AS PROFITS DISAPPOINT
The UK-based drugmaker has seen earnings decline at a faster rate than City analysts expected, partly due to changes in the value of the dollar.
However, it also says this morning it is paying $600m to buy a portfolio of drugs from rival group Actavis. More here
UK IS EUROPE’S ONLY BRIGHT SPOT FOR VODAFONE
The telecoms giant saw revenue declines in all of its major European markets except the UK in its third quarter, with pressures on the continent’s economies continuing.
Later today, we may see what chief executive Vittorio Colao has to say about the wave of consolidation in the UK telecoms market. More here
BUSINESS ROUND-UP
easyJet saw growth slow in January, according to its passenger statistics, with numbers flat on the same month last year.
Smith & Nephew, the medical equipment group, says it is increasing its dividend by 8pc after a rise in full-year profits.
Enterprise Inns, the pubs group, says income at its pubs improved in the Christmas period, although just slightly.
TODAY’S AGENDA
Is the eurozone economy improving?: The European Commission releases its winter forecasts for growth on the continent at 09.00 today.
Car sales roll on: After 2014’s boom year for new car sales, January data at 09.00 will tell us whether this has continued into this year.
UK interest rates: We’ve had record lows for almost six years, but it would be a big upset if the Bank of England raised rates this month. The decision is announced at 12.00.
Twitter results: With some questions about chief executive Dick Costolo emerging, a good set of results could pacify investors when they are released this evening
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