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Important information: The value of investments can go down as well as up so you may get back less than you invest. Investors should note that the views expressed may no longer be current and may have already been acted upon. This is a third-party news feed and may not reflect Fidelity’s views.

Sunday newspaper round-up: Bank of England, Sturgeon, Melrose

(Sharecast News) - Experts believe that the Bank of England will have to jack up its base rate from 4.5% at present to 5.5% by the end of 2023 in order to tame stubbornly high inflation. It was that prospect that had already resulted in lenders and building societies to raise the cost of fixed-rate mortgages or to pull deals altogether, as HSBC did during the preceding week. Higher rates also have implications for the cost of servicing the country's debts, in turn eliminating the Chancellor's already limited headroom to push through tax cuts before the elections. - The Financial Mail on Sunday Police looking into accusations of financial misconduct by the Scottish National Party have arrested one of its former leaders, Nicola Sturgeon. Sturgeon was one of three individuals arrested as part of Operation Branchform, which is investigating whether £600,000-worth of donations to the independence campaign had been misspent by the party. - Guardian

Melrose boss Simon Peckham made a staunch defence of the takeover outfit in an interview. The executive said predator firms like his were necessary in markets in order to restructure poorly-run corporations that would otherwise just carry on underperforming. But he derided criticism of the firm as slash and burn merchants. Quite the opposite, Melrose had pumped over £1bn into GKN Aerospace. There were about 12 months of hard work left in order to spruce it up, he added. Indeed, Melrose "lover buying businesses and seeing them get better". - The Financial Mail on Sunday

Jeb Smith - also known as "the most feared man in corporate America" - has UK biotech outfit Abcam in its sights. Starboard Value, the hedge fund run by Smith, has taken a roughly 2% stake in the antibody company. Last year, Abcam shelved plans for a London float, instead pursuing a listing on the US Nasdaq Exchange. In parallel, Abcam's founders, Jonathan Milner, is pushing to be reinstalled as executive chairman. On Monday he will send a note to investors arguing that only under his leadership can the company undo its "sustained financial underperformance and value destruction". A spokesman for the company however said that Milner's claim were without merit. - Sunday Times

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Thursday newspaper round-up: Border controls, McKinsey, KPMG
(Sharecast News) - New post-Brexit UK border controls coming into force later this month will cost British businesses £2bn and fuel higher inflation, according to a report warning that UK-EU trade will be damaged as a result. With less than a month before the introduction of new checks on animal and plant products from 30 April, the insurer Allianz Trade said the controls agreed under Boris Johnson's Brexit deal could add 10% to import costs over the first year. - Guardian
Wednesday newspaper round-up: Shoplifting, EnQuest, Klarna
(Sharecast News) - The government is investing more than £55m in expanding facial recognition systems - including vans that will scan crowded high streets - as part of a renewed crackdown on shoplifting. The scheme was announced alongside plans for tougher punishments for serial or abusive shoplifters in England and Wales, including being forced to wear a tag to ensure they do not revisit the scene of their crime, under a new standalone criminal offence of assaulting a retail worker. - Guardian
Tuesday newspaper round-up: Pharma companies, Puig, Thames Water
(Sharecast News) - Rachel Reeves has said an incoming Labour government would launch a £5bn crackdown on tax avoiders to close a gap in its spending plans exposed by Jeremy Hunt scrapping the non-dom regime to finance tax cuts. Warning households and businesses that Labour was prepared to adopt tough measures to tackle tax fraud and non-compliance, Reeves said the funding would be used to pay for free school breakfast clubs and additional NHS appointments. - Guardian
Monday newspaper round-up: Boeing, rent rises, e-scooters, Santander UK
(Sharecast News) - US airline regulators have launched an investigation after an engine cowling on a Boeing plane fell off during takeoff and struck the wing flap. The Southwest Airlines flight 3695 rose to about 10,300ft (3,140 metres) before returning safely 25 minutes after takeoff to Denver international airport at about 8.15am local time on Sunday. It was towed to the gate after landing. The Boeing aircraft with 135 passengers and six crew members aboard had been headed to Houston. No one was injured. - Guardian

Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.

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