Jeremy Hunt, the UK’s fourth chancellor in as many months, will attempt to tame its wild gilt and currency markets today when he stands up in the House of Commons. He will outline more details on the governments plans for tax and spending. The pound rallied in early trading this morning. Remember, there’s no guarantee this week will be quieter than the last.
(Bloomberg) — Jeremy Hunt, the UK’s fourth chancellor in as many months, will attempt to tame its wild gilt and currency markets today when he stands up in the House of Commons. He will outline more details on the governments plans for tax and spending. The pound rallied in early trading this morning. Remember, there’s no guarantee this week will be quieter than the last.
Here’s the key business news from London this morning:
In The City
Vodafone Plc: The telecommunications giant will create a 50:50 joint venture with Altice that will invest 7 billion euros in rolling out fibre connections to up to 7 million homes in Germany.
- Vodafone will receive up to 1.2 billion euros as part of the joint venture
Made.com Group Plc: The online seller of trendy homeware has received a number of proposed takeover offers as part of its formal sales process.
- The company is being squeezed by twin pressures of a worsening consumer environment and higher costs, forcing it to consider a sale and review its headcount
Hargreaves Lansdown Plc: The retail investing platform’s CEO Chris Hill will leave the company in November 2023, once a successor has been appointed.
- It came as the company added 17,000 new clients in the first quarter and increased its full year revenue margin outlook, despite turbulent markets disrupting consumer confidence
In Westminster
The new Chancellor will today accelerate plans to bring order to the UK’s public finances in a fresh bid to reassure markets still skittish about Liz Truss’s premiership. He will make a statement mid-morning on measures to support fiscal sustainability and then speak to the House of Commons in the afternoon.
UK financial markets will get a fresh opportunity to pass judgment on Truss’s economic program today without the Bank of England around to offset any turmoil. The pound rose in Asia trading as investor confidence was bolstered by expectations that more of Truss’s package of unfunded tax cuts may be reversed.
Meanwhile, as many as seven million homes in the UK will experience dire fuel poverty this winter if the government doesn’t roll out a further £14 billion to protect them, campaigners said.
In Case You Missed It
UK property sellers boosted prices at the strongest pace in five months in October, led by a jump in the most expensive homes in London. The figures indicate it’s still too early to call an end to Britain’s property price boom, which lasted through the pandemic.
The number of jobs available in the City of London fell by almost a third in the third quarter, as holidays and economic uncertainty hit hiring.
Looking Ahead
As the new earnings season picks up pace, here’s a look at what to expect next week:
This evening: Mining company Rio Tinto Plc will report its third quarter operations review in the evening. That follows a soft first-half update where the firm halved its dividend and reported a sharp decline in profit. Concerns about slowing demand have led to lower prices for commodities like iron.
Tuesday: Homebuilder Bellway Plc’s update will be closely watched for further signs of storm clouds gathering over Britain’s housing market. Barratt Developments Plc flagged this week that private reservations, the average weekly number of homes reserved at its sales sites, has dropped more than 30%.
Wednesday: Asos Plc’s full-year results will likely provide an important insight into the state of the consumer. Most spending with the online fashion website is discretionary, and it warned last month that sales in August were weaker than expected as shoppers cut back.
Thursday: Alongside a trading update, Jupiter Fund Management Plc’s new boss Matthew Beesley is expected to announce his turnaround plans for the London-based asset manager which has been grappling with years of outflows.
Friday: Deliveroo Plc’s results will follow those of food delivery rival Just Eat Takeaway.com earlier in the week. London-based Deliveroo has set its eyes on achieving adjusted Ebitda profitability and after that, free cash flow generation, but is facing headwinds from a worsening consumer environment. Bloomberg Intelligence analyst Diana Gomes suggests the company could narrow its gross transaction value guidance range, which at 4%-12% appeared too wide.
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