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- 📈 FTSE Giant Bows to Wall Street Whispers
📈 FTSE Giant Bows to Wall Street Whispers
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This is Cliff Equity, the UK’s business newsletter that keeps you informed on what’s important in tech, business and finance in less than 5 minutes
In today’s stories:
FTSE Giant Bows to Wall Street Whispers
iPhone Sales Dip, but Profits Soar
Abramovich’s £1bn Tax Bill: HMRC’s Nightmare?
The summary: Smiths Group is slimming down under investor pressure, handing shareholders a windfall, shaking up the FTSE 100, and proving that even Britain’s biggest firms aren’t immune to a well-placed Wall Street prod.
The details:
Smiths Group hits the reset button – The FTSE 100 giant is offloading Smiths Interconnect and exploring a demerger or sale for Smiths Detection, bowing to investor pressure for a shake-up.
Shareholders pop the champagne – Shares jumped over 10% as the firm doubled down on John Crane and Flex-Tex, promising "significant value" (code for job cuts incoming). A £500m share buyback sweetens the deal.
Activist investors get their way – US agitator Engine Capital wanted a break-up, and Smiths obliged. A new board committee will oversee the carve-up, with a deal for Interconnect expected by the end of 2025.
CEO’s balancing act – Roland Carter talks up strong performance while acknowledging the shake-up’s human cost. Updates due in March, but for now, shareholders are winning.
Why it matters: Smiths Group is the latest British industrial giant to bow to activist investors, proving that in the corporate world, persistence (and a well-aimed nudge) pays off. For shareholders, it's a jackpot—soaring stock prices, a £500m buyback, and a promise of “unlocked value” (translation: leaner, meaner, and possibly fewer jobs). Meanwhile, the FTSE 100 just got a reminder that no conglomerate is too big to escape a shake-up when Wall Street comes knocking.
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The summary: Apple’s AI misfire and China troubles may ruffle feathers, but with strong Mac and services sales keeping the cash flowing, the tech giant isn’t toppling anytime soon.
The details:
Apple’s AI gamble flops (for now) – iPhone sales dipped 1% as Apple's AI features failed to dazzle, though Tim Cook insists they boosted sales in the US. Investors remain unconvinced.
China blues and Trump tariffs – Apple faces a sales slump in China and potential tariffs of up to 60% in the US, thanks to Trump’s trade war threats. Cook is keeping a watchful eye.
AI hiccups make headlines (literally) – Apple’s AI news summaries were so error-ridden that the company had to pull the plug after a week of relentless criticism. Not the best look.
Still raking it in – Despite iPhone woes, Apple’s overall sales rose 4% to $124.3bn, driven by booming Mac sales and services like Apple TV and Apple Pay. Profits? A cool $36.3bn.
Why it matters: Apple’s AI push was meant to spark excitement but instead landed with a thud, proving that even tech giants can’t force enthusiasm for half-baked innovation. With China sales wobbling and Trump’s tariff threats looming, Apple’s global dominance faces a fresh round of turbulence. Still, with billions rolling in from Macs and services, it’s hardly time to pass around the collection plate—just yet.
The summary: It looks like Abramovich might owe a cool £1bn in tax, his assets are frozen, and promises for Ukraine are still gathering dust—while MPs are hoping HMRC's 5,000 new compliance officers will finally catch up with the big fish!
The details:
Abramovich’s Billion-Pound Tax Question – More than 40 MPs have demanded HMRC investigate whether the former Chelsea FC owner owes up to £1bn in unpaid taxes after leaked files revealed potential offshore tax dodging.
Sanctions, Frozen Billions & Unspent Promises – With £3.2bn of his UK assets frozen and £2.5bn from the Chelsea sale yet to reach Ukraine war victims, MPs are questioning whether any of this can be reclaimed for the Treasury.
Hedge Funds & Superyachts – A joint investigation uncovered Abramovich’s intricate offshore dealings, with UK-based management raising questions over where tax should have been paid. Meanwhile, his superyacht fleet allegedly skirted tens of millions in VAT.
HMRC’s Tight Purse Strings – The tax gap still looms at £36bn, prompting MPs to ask whether HMRC has enough resources to chase big-money cases like this. The government’s answer? Hiring 5,000 new compliance officers.
Why it matters: If Abramovich really is dodging tax to the tune of £1bn, it’s not just a case of the rich getting richer—it’s the rest of us picking up the tab. Meanwhile, £3.2bn of his assets are frozen, but none of the promised £2.5bn from selling Chelsea has made it to Ukrainian victims, so it's a bit like a fundraiser that never got off the ground. And with the tax gap still yawning at £36bn, MPs are getting twitchy about whether HMRC’s new team of 5,000 will actually catch up with the big fish before they slip through the net.
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