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Sunday newspaper round-up: The Restaurant Group, Severn Trent, Facebook

(Sharecast News) - The Restaurant Group, owner of the Wagamama chain, is under increasing pressure to break up after TMR Capital proposed last week to management that it sell all its brands save that one. TMR was the fourth activist shareholder to make the case for change. Under the plans presented by TMR, Restaurant group should then focus on expanding the chain before going private via a sale. The clash on strategy comes amid a surge in the cost of ingredients, energy and salaries. - The Sunday Telegraph

Severn Trent and United Utilities are facing pressure to reduce their dividend payouts and bonuses in the wake of public consternation at the dumping of millions of tonnes of sewage into rivers and seas. In the case of United Utilities, the payouts are set to rise by 5% to £310m despite estimates pointing to losses at the water company as interest rate costs increase. Severn Trent meanwhile was expected to see its profits more than halve for the same reason. - Financial Mail on Sunday

An Irish regulator is planning to levy a £648m fine on Facebook, possibly as soon as Monday, and to order the social media giant to stop transferring data from its European users to the US. Facebook owner Meta was however expected to be granted a grace period to comply with the ruling from Ireland's Data Protection Commission. That could push the suspension of data transfers into the autumn and the company was expected to appeal. Furthermore, the US and EU have already agreed a new data transfer agreement at the political level, so that any suspension would be rendered meaningless. - Guardian

Legal & General Investment Management is at the fore of a revolt among McDonald's shareholders over the fast food giant's "overuse" of antibiotics and mass meat production. The asset manager was planning to table a resolution at the chain's annual meeting during the forthcoming week calling on it to institute WHO guidelines on drug use in its supply chain. The fear of those shareholders is that the company is fueling antimicrobial resistance which could lead to resistant superbugs in humans. Estimates are that AMR might cause £800m of economic damage by 2050. - Financial Mail on Sunday

Ministers are planning to scrutinise financial watchdogs more closely and to increase accountability for the decisions that they take in a bid to speed up the City of London's growth by adding an extra layer of independence to the framework for regulatory oversight. During the coming week, the Treasury would table an amendment to the Financial Services and Markets Bill that would give more powers to the Financial Regulators Complaints Commissioner, which supervises the FCA, PSR and PRA, with the Treasury being given the power to select the FRCC's chief. - The Sunday Times

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Friday newspaper round-up: Paramount Global/Skydance Media, farms, River Island
(Sharecast News) - The Federal Communications Commission approved the merger between Paramount Global and Skydance Media on Thursday, clearing the way for an $8.4bn sale of some of the most prominent names in entertainment, including the CBS broadcast television network, Paramount Pictures and the Nickelodeon cable channel. The FCC agreed to transfer broadcast licenses for 28 owned-and-operated CBS television stations to the new owners after Paramount paid $16m to settle a lawsuit filed by Donald Trump over a 60 Minutes interview with former vice-president Kamala Harris that aired in October. - Guardian
Thursday newspaper round-up: UK car manufacturing, River Island, Tesla
(Sharecast News) - British car and van manufacturing slumped in the first half of the year to its lowest since 1953 outside the Covid pandemic, as Donald Trump's US tariffs caused global industry chaos. UK vehicle manufacturing declined by 12% to 417,200 units in the first six months of the year, figures from the Society of Motor Manufacturers and Traders (SMMT), a lobby group, show. - Guardian
Wednesday newspaper round-up: Tariffs, UK banks, Eurostar...
(Sharecast News) - Donald Trump said the US had agreed the terms of a "massive" trade deal with Japan that will impose 15 per cent tariffs on goods imported into America from the world's fourth-largest economy. The 15 per cent levy is lower than the 25 per cent he had threatened in a letter earlier this month, but higher than the 10 per cent rate that had been in force while the countries negotiated. Financial Times
Tuesday newspaper round-up: Sizewell C, State pensions, Gaza
(Sharecast News) - Ed Miliband has given final approval for the construction of Sizewell C nuclear power station at a cost of at least £38bn. The Energy Secretary took the final investment decision on the controversial power station on Tuesday. The site will take at least a decade to build. The Suffolk nuclear plant will have a capacity of about 3.2 gigawatts, enough to supply the needs of about six million homes for at least 60 years. - Daily Telegraph

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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