(Bloomberg) — Here’s the key business news from London-listed companies this morning.
GDP: The UK economy shrank in April at the sharpest pace in more than a year, raising the risk that the economy will contract in the second quarter.
- Gross domestic product fell 0.3 from March when output declined 0.1%, the Office for National Statistics said. A gain of 0.1% was predicted by economists
Countryside Partnerships Plc: The UK homebuilder has put itself up for sale after coming under pressure from shareholders.
- The announcement comes after Countryside rejected two unsolicited offers from US hedge fund Inclusive Capital, saying they undervalued the company
Heathrow: Britain’s busiest airport had 5.3 million passengers in May — that’s 79% of 2019 levels and in line with its latest forecast.
- The airport said it will reopen Terminal 4 on June 14, with 30 airlines moving in ahead of the summer peak. Heathrow will also boost security, engineering and services teams
Outside The City
Boris Johnson risks reopening divisions that tore Tories apart in 2019, with his government set to propose a law today that would let UK ministers override parts of the Brexit deal.
Meanwhile, the UK will prioritize food security in its new strategy for farming to be published today. The outlined plan disappointed campaigners for more sustainable farming.
In Case You Missed It
France’s financial sector is now the most popular destination in Europe for US backers, helping the country narrow the gap with the UK for foreign direct investment in the industry.
And it’s been seven months since a consumer-facing firm last listed in London, with offerings for the rest of the year looking scarce as the cost-of-living crisis rips through people’s wallets.
Looking Ahead
On the earnings front, all eyes will be on Tesco Plc’s outlook comments when Britain’s biggest supermarket reports earnings Friday. Tesco had warned in April that profit will be squeezed this year as it battles to keep prices low.
Tomorrow, UK labor market data are expected to show pay growth that’s slower — but still above the rate that’s seen as consistent with the Bank of England’s inflation target.
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