(Alliance News) - UK stocks were called essentially flat on Monday, while over in the US confusion continues within federal workforces.
Key US agencies, including the FBI, State Department and the Pentagon, have instructed their employees not to comply with cost-cutting chief Elon Musk's latest demand that federal workers explain what they accomplished last week — or risk losing their jobs.
Administration officials scrambled throughout the weekend to interpret Musk's unusual mandate, which apparently has Trump's backing despite some lawmakers arguing it is illegal, PA said. Unions want the administration to rescind the request and apologise to workers and are threatening to sue.
In corporate news, Prosus has agreed to acquire Just Eat Takeaway.com for around EUR4.1 billion.
Here is what you need to know at the London market open:
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MARKETS
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FTSE 100: called down 3.1 points at 8,656.27
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Hang Seng: down 0.1% at 23,451.56
S&P/ASX 200: closed up 0.1% at 8,308.20
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DJIA: closed down 748.63 points, 1.7%, at 43,428.02
S&P 500: closed down 1.7% at 6,013.13
Nasdaq Composite: closed down 2.2% at 19,524.01
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EUR: up at USD1.0507 (USD1.0450)
GBP: up at USD1.2655 (USD1.2641)
USD: up at JPY149.53 (JPY149.45)
Gold: up at USD2,940.70 per ounce (USD2,935.51)
(Brent): down at USD74.37 a barrel (USD74.89)
(changes since previous London equities close)
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ECONOMICS
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Monday's key economic events still to come:
11:00 CET eurozone CPI
10:00 CET Germany Ifo business climate
Japan Emperor's Birthday. Financial markets closed.
18:00 GMT UK Bank of England External member of the Monetary Policy Committee Swati Dhingra speaks
08:30 EST US Chicago Fed national activity index
10:30 EST US Dallas Fed manufacturing index
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Prosus on Monday said it has agreed to acquire Just Eat Takeaway.com for about EUR4.1 billion, all in cash. The Amsterdam-based technology company, which owns a stake in Tencent, noted the EUR20.30 per share offer represents a premium of 63% to Just Eat Takeaway's closing share price on Friday last week, and a 49% premium over the three-month volume-weighted average price. Just Eat Takeaway, which has a market capitalisation of EUR2.60 billion, will continue to be based in Amsterdam under its existing name and will maintain its key brands. Prosus said the proposed takeover is subject to regulatory approvals. In the same statement, Just Eat Takeaway said its management board and supervisory board unanimously recommended the deal. Separately, Just Eat reported its annual pretax loss reduced to EUR532 million in 2024 from EUR685 million in 2023. Revenue edged up to EUR3.56 billion from EUR3.53 billion. The company is targeting a long-term group adjusted earnings before interest, tax, depreciation and amortisation margin over 5% of gross transaction value. For 2024, it met its guidance of constant currency GTV growth excluding North America of 2% adjusted Ebitda.
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BMW is halting its investment in a plant in Oxford as electric vehicle demand has stalled, The Times reported Saturday. The Munich, Germany-based carmaker will review the timing of plans to manufacture battery electric minis at the works in Cowley. BMW back in 2023 had said it would invest a total of GBP600 million at the site. Demand for electric vehicles has stalled amid concerns about a lack of charging infrastructure and a high cost of switching from a petrol or diesel equivalent. Plant Oxford is at the centre of BMW's Mini production. But BMW is quoted as saying: "However, given the multiple uncertainties facing the automotive industry, the BMW group is currently reviewing the timing for reintroducing battery-electric Mini production in Oxford." In September 2023, BMW had announced plans to build its next-generation electric Mini in Oxford after securing a UK government funding package.
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Key US agencies, including the FBI, State Department and the Pentagon, have instructed their employees not to comply with cost-cutting chief Elon Musk's latest demand that federal workers explain what they accomplished last week — or risk losing their jobs. The pushback from appointees of President Donald Trump has ushered in a new level of chaos and confusion within the beleaguered federal workforce, just a month after the president returned to the White House and began on his campaign promise to shrink the government. Administration officials scrambled throughout the weekend to interpret Musk's unusual mandate, which apparently has Trump's backing despite some lawmakers arguing it is illegal, PA said. Unions want the administration to rescind the request and apologise to workers and are threatening to sue. Democrats and even some Republicans were critical of Musk's ultimatum, which came just hours after Trump encouraged him on social media to "get more aggressive" in reducing the size of the government through his so-called Department of Government Efficiency.
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UK Prime Minister Keir Starmer is expected to join world leaders in a call hosted by Ukrainian President Volodymyr Zelensky to mark the third anniversary of Russia's invasion as the UK announces toughened measures against the Kremlin. He reiterated Britain's "ironclad" backing for Kyiv in a series of conversations with allies over the weekend as he prepares to make the case for safeguards to protect the country's sovereignty on his visit to the US this week. On Monday, which marks three years since Moscow's full-scale invasion, he is expected to address leaders from the G7 and across Europe as part of a group call in a show of solidarity amid fragile transatlantic relations. Meanwhile, the Home Office announced a move to widen travel sanctions for Kremlin-linked elites in a bid to heap more pressure on Russia as the war enters its fourth year. Local and federal politicians as well as managers or directors of large Russian companies will face exclusion from the UK under the rules, which come on top of existing travel bans on high-profile business figures such as Roman Abramovich.
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BROKER RATING CHANGES
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DZ Bank raises Unilever to 'buy' (hold) - fair value 5,150 (5,175) pence
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Berenberg cuts Anglo American price target to 2,000 (2,100) pence - 'sell'
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Goldman Sachs cuts Eutelsat to 'sell' (neutral) - price target 1 (3.60) EUR
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COMPANIES - FTSE 100
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GSK announced the start of its share buyback programme, expected to return an additional GBP2 billion to shareholders, and announced that it has completed the acquisition of IDRx Inc. The buyback starts with an initial tranche of up to GBP0.7 billion, with purchases expected to commence on Monday and to be completed by June 13. The purpose of the programme is to return excess capital to shareholders and reduce the share capital of the company, and it is expected that the implementation of the programme will enhance earnings per share, GSK said. IDRx is a Boston-based, clinical-stage biopharmaceutical company dedicated to developing precision therapeutics for the treatment of gastrointestinal stromal tumours. Total cash consideration for this acquisition amounts to up to USD1.15 billion, USD1 billion of which is an upfront payment. The rest will be a milestone payment contingent upon success-based regulatory approval.
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COMPANIES - FTSE 250
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B&M European Value Retail announced the departure of Chief Executive Alex Russo with no successor yet in place, and updated its full-year guidance. Russo has announced his intention to retire with effect from April 30. The board is in the advanced stages of a recruitment process to appoint a new CEO with the support of a leading executive search firm, and will provide an update in due course, B&M said. B&M also updated its previously disclosed profit guidance range. It now expects financial 2025 group adjusted earnings before interest, tax, depreciation, and amortisation to be in the range of GBP605 million to GBP625 million. The firm said this "reflects the current trading performance of the business, an uncertain economic outlook and the potential impact of exchange rate volatility on the valuation of our stock and creditor balances which is a non-cash item".
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OTHER COMPANIES
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Georgia Capital released its final results. Net asset value in GEL rose 16% to GEL95.95 per share at December 31, from GEL82.94 one year prior. In sterling terms, NAV per share rose 12% to GBP27.14 from GBP24.23. However total portfolio value creation fell 36% to GEL435.3 million from GEL680.5 million, but more than doubled on-year to GEL460.8 million in the fourth quarter. "Our private portfolio companies continue to deliver superior operating performance," Chair Irakli Gilauri noted. "In 4Q24, aggregated revenue was up by 8.8% [on-year] to GEL595.0 million, while Ebitda increased by 53.3% y-o-y to GEL 84.3 million. This resulted in quarterly aggregated net operating cash flows of GEL 84.0 million, more than doubling [on-year] in 4Q24." Looking ahead, Gilauri noted "the resilience of the Georgian economy, which has demonstrated consistent and substantial growth in recent years despite ongoing geopolitical tensions and uncertainties", adding: "Against this background, I believe that Georgia Capital has all the key fundamentals in place to continue delivering consistent NAV per share growth over the medium to long term - and to progress further towards achieving our key strategic priorities."
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By Emma Curzon, Alliance News reporter
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