Henderson's transatlantic takeover and the FTSE's Brexit high: today's top City headlines

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Funds giant Henderson has unveiled a transatlantic takeover of US peer Janus Capital to create a $320 billion (£248 billion) global money-management powerhouse. The deal, in the works since February, creates a company worth $6 billion and paves the way for more possible mergers at other fund managers, who are looking to survive shrinking fees and increased competition in the sector.

The Treasury’s £5 billion plans to boost housebuilding has lifted shares in the UK’s biggest players amid hopes of tackling the UK’s “chronic” housing shortage. Barratt Developments, Bovis Homes, Taylor Wimpey and Telford Homes all gained ground.

The pound plunged to a three-year low against the euro and was within a cent of a three-decade low against the dollar as Theresa May’s pledge to start the Brexit process by March stoked fears of a “hard Brexit”.

An autumn rate cut from the Bank of England was left in serious doubt today as a rush of export orders fuelled a stunning September bounceback from the UK’s manufacturers. The latest snapshot from the Chartered Institute of Procurement & Supply’s activity index, where a score over 50 signals growth, jumped to 55.4 last month, the highest for more than two years.

Troubled Deutsche Bank is racing to reach a settlement with US regulators over mis-selling mortgage-backed securities. It could incur a fine of up to $14 billion (£10.9 billion) but the lender is keen to strike a deal to ease pressure on its shares and restore confidence.

The Netherlands’ biggest financial services company ING is to axe 7000 jobs. The group is also targeting savings of €900 million (£786.5 million) through an overhaul of its digital platforms.

Tesla Motors has recorded its best ever quarter for sales, with deliveries of its electric vehicles more than doubling to 24,500. The figures suggest sales at the company run by Elon Musk have held up despite the death of a driver whose Tesla Model S crashed while using the autopilot feature.

Allergan, the firm behind Botox, has signed a potential $1.5 billion-plus deal with AstraZeneca to market a pioneering treatment for Crohn’s disease.


Sufferer: the magician Dynamo has talked of his battle with Crohn’s disease

Homeware and fashion retailer Cath Kidston has changed hands after Baring Private Equity bought out TA Associates becoming the company’s majority shareholder. Chairman Paul Mason is stepping down to be replaced by William Flanz, the former boss of Gucci.

Traders at hedge fund giant Citadel split a £70 million-plus pay pot last year after a surge in profits.

Facebook has reportedly chosen Denmark as the home of its third data centre outside the US. The company will build a 500,000 square metre site near the city of Odense, creating a possible 1200 jobs. Facebook already has a data centre in Sweden and is finishing another in Ireland.

City broker Numis continued its winning streak today in spite of Brexit-induced uncertainty for the stock market. The FTSE 250 firm generated record revenues over the last year, “comfortably above” £100 million in its core business for the first time and up 14% on the previous year.

Google is set to launch its first branded smartphones at an event tomorrow. The devices are the first to be developed under its new hardware division, which is seeking to take on Apple and Amazon. Features are expected to include a voice-controlled speaker system. Carphone Warehouse gave a sneak peak of the Pixel and Pixel XL phones on its website, though the web page appears to have been taken down.

Conference and exhibition organiser ITE Group was today counting the cost of the summer’s failed coup in Turkey, as it revealed an 8% slide in revenues in its fourth quarter.

Comment highlights:

There are lessons from history to be learned about the £10 billion stock market flotation of mobile phone firm O2, which is likely to provide the biggest share sale of the next few months, writes James Ashton.

“With regulators closing the door on consolidation, Sky is touted as one of the few possible bidders for O2.”

Jim Armitage on the Henderson deal.

“This could be a hat-trick of canny buys for Henderson chief Andrew Formica.”

Market update:


In the black: The London Stock Exchange’s FTSE 100 (Facundo Arrizabalaga/EPA)

The FTSE 100 hit its highest level since May last year after a Brexit-induced sterling slump caused investors to pile into equities. The blue-chip index advanced 67.85 points, or 1%, to 6967.18 as Prime Minister Theresa May confirmed the process to quit the European Union would begin at the end of March.

Going up: RBS, Lloyds, Barclays, Shell, Schroders, Aberdeen Asset Management

Going down: Legal & General, ITV, Stanley Gibbons

London entrepreneurs:

Find out how Charlie Bradshaw turned a gap year idea into a multi-million pound business.


Entrepreneur: Charlie bradshaw founded Clapham-based Matrix (Matt Writtle)

Small business agony aunt Jo Malone explains how to keep the peace with neighbours and competitors and work together to strengthen communities.

Source Article from http://www.standard.co.uk/business/hendersons-transatlantic-takeover-and-the-ftses-brexit-high-todays-top-city-headlines-a3359881.html

October 3, 2016 |
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