Good morning! Here’s what you need to know on Friday.
1. Five UK banks are facing heavy losses on loans to Carillion, after irreconcilable differences between the company, its lenders and the government pushed the UK construction and services group into liquidation on Monday, sources told Reuters.Royal Bank of Scotland (RBS), HSBC, Santander, Lloyds and Barclays are among the most heavily exposed after providing £140 million of emergency loans in September 2017 and are also lenders on a £790 million revolving credit facility.
2. The £7.4 billion hostile takeover bid for GKN from Melrose has erupted into life with the FTSE 100 car and aircraft parts group indicating that Melrose has bitten off more than it can chew and accusing its unwelcome predator of peddling fake news, the Times reported. GKN came out swinging yesterday after Wednesday’s formal takeover bid from Melrose, a £4.5 billion London-listed acquisitive conglomerate, which has launched the first hostile bid for a blue-chip stock in a decade.
4. The giant Kirkuk oilfield that it discovered 90 years ago is back in BP’s hands after the oil giant signed a deal with the Iraqi government to redevelop it, the Times reported. A spokesman for BP said it signed a memorandum of understanding on Thursday with Iraq’s North Oil Company to support the long-term redevelopment of the field, where production has shrivelled in recent years because of political instability, conflict and a lack of investment.
5. Battersea Power Station is to be sold for £1.6 billion in one of Britain’s largest ever property deals, the Guardian reported. Malaysian sovereign wealth fund Permodalan Nasional Berhad (PNB), alongside Employees Provident Fund of Malaysia, have announced their intention to purchase the Grade II listed building, Battersea Power Station Development Company said in a statement on Thursday.
6. High street banks have made more than £225 million available to help businesses put at risk by the failure of Carillion, while companies have offered to take on staff who were working for the firm when it collapsed into receivership, the Guardian reported. A taskforce of banks, businesses and construction industry trade bodies met with the business secretary on Thursday to discuss ways to contain the impact of Carillion’s collapse on jobs and the wider economy.
7. Santander’s UK chief has been dragged into the growing political storm surrounding rival high street bank RBS’s mistreatment of small business customers. Nathan Bostock, who joined Santander UK after five years in senior roles at RBS, was linked to the scandal in the House of Commons today.
8. Emmanuel Macron has warned Theresa May the UK will have to pay into the EU’s coffers in order to secure a Brexit trade deal on financial services. Speaking alongside the Prime Minister during his first visit to Britain since being elected, the French President insisted he was “here neither to punish nor reward” over Brexit.
9. The value of all the homes in the UK has risen by more than third in the past decade, to £7.14 trillion, with older homeowners and landlords winning the biggest share of the new wealth as young people continue to be priced out of the market, the FT reported. After several flat years of growth following the financial crisis, the value of the UK’s property market began picking up strongly after 2013, according to analysis by Savills, the estate agent.
10. And finally…Boris Johnson floated the idea of building another transport link across the Channel during a UK-France summit, Sky reported. The Foreign Secretary, who was among top Cabinet ministers to meet their French counterparts at Sandhurst military academy on Thursday, is understood to unveiled his plan during the talks.
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