The Business Matrix: Monday 8 December 2014

BP to cut jobs as oil price falls

Oil giant BP is poised to axe a swathe of middle managers as it attempts to budget for the plummeting price of oil, which has sent the industry into a tailspin. The company, which has an 84,000 staff, is expected to step up its two-year-old restructuring programme in a presentation to the City on Wednesday. Brent crude has fallen by 35 per cent since the summer.

Woodford backs Midatech float

One of the City’s highest profile investors, Neil Woodford, is backing the flotation of the pharmaceuticals maker Midatech. Woodford is to invest £15m in the company, which floats on London’s junior AIM market today valued at £74.2m. Midatech, which works on therapeutic products and nanomedicine, has raised £32m through the 267p-a-share placing.

Inquiry into wine retailing rip-offs

The Food Standards Agency’s £2m Food Crime Unit, set up in the wake of last year’s horse meat scandal, is to launch an investigation into wine fraud next month. Food experts say major drinks companies are not doing enough to prevent the widespread passing off of one wine as another in independent shops and restaurants.

Independent on Sunday

Bond turns his hand to fashion

Former Asda boss Andy Bond has teamed up with South African billionaire Christo Wiese to launch a new high street fashion chain. Wiese is expected to invest £20m in the retailer, codenamed Project 50, which plans to open 50 stores in just two months starting in July. The stores are intended to compete with supermarket fashions.

Mail on Sunday

Premier U-turn on ‘pay to stay’

The chief executive of Premier Foods has backed down in the row over supplier payments which had sparked allegations of “blackmail”. The company’s “pay to stay” contracts demanded cash payments from its suppliers to retain contracts. Gavin Darby said he was “happy to move on” from the tactic.

Sunday Times

Fund talks up Sainsbury’s raid

Activist fund Crystal Amber has held discussions with a number of overseas investors over a potential share raid on Sainsbury’s. Crystal Amber could attempt to bring activist investors together to encourage a bid for the supermarket or put pressure on Sainsbury’s to sell-off a portion of its property.

Sunday Telegraph

Slower start to year for Asos

The online retailer Asos reports on first-quarter trading tomorrow, with Numis predicting a slowdown in growth. Analyst Andrew Wade believes a lack of stock and the weakening euro mean sales are likely to have grown by just 9 per cent, but is hopeful that these issues will clear as the year progresses.

Eyes on the ball at Sports Direct

Sports Direct also has an interim update, with Sheridan Admans of the Share Centre saying that after the retailer reported a patchy start to the second quarter, “any comments on current trading, as the company enters the most critical sales period of the year, will also attract attention”.

EasyHotel leads run of results

Tomorrow sees full-year figures from easyHotel, RWS Holdings and high-performance parts maker Victrex. Cloud computing company iomart has interims. Wednesday brings finals from Alternative Networks and half-year numbers from Micro Focus and Stagecoach.

Bellway covers more ground

The week comes to an end with a trading update from the house builder Bellway. Analysts at Numis say: “We expect Bellway to report that whilst the housing market has moderated it is still selling more houses than last year, due to the growth in the number of outlets.”