British money printer De La Rue expects profit to miss market expectations as demand for banknotes hovers the lowest levels in over 20 years. Meanwhile in Westminter, Sunak has hired a top former Morgan Stanley executive as his new business adviser and, still in the political world, Biden is due to start his Irish tour.
(Bloomberg) — British money printer De La Rue expects profit to miss market expectations as demand for banknotes hovers the lowest levels in over 20 years. Meanwhile in Westminter, Sunak has hired a top former Morgan Stanley executive as his new business adviser and, still in the political world, Biden is due to start his Irish tour.
Here’s the key business news from London this morning:
In The City
De La Rue Plc: The British money printer is in talks with lenders to amend banking covenants, reflecting the revised outlook as well as the increase in the company’s funding costs resulting from higher Bank of England base rates.
- The firm now expects full year adjusted operating profits to be a mid-single digit percentage below market expectations, it said in a statement, citing significant degree of uncertainty around the FY24 outlook
- “Demand for banknotes has been at the lowest levels for over 20 years, resulting in a low order book going into FY24,” company adds
Flutter Entertainment Plc: The Irish bookmaker’s offering by its shareholder Fastball was priced at £149.50 apiece, according to terms seen by Bloomberg.
- The price represents a 1.71% discount to Tuesday’s close and comes as the company readies a secondary listing in the US, which became its biggest market. Shareholders are due to vote on the plans at the company’s annual general meeting later in April
Unite Group: The student accommodation investment firm has seen “continued strong progress in sales”, with 90% of rooms now sold for the 2023/24 academic year compared with 78% in 2022/23, according to a trading update.
- Demand remains strong from both University partners and students booking accommodation on a direct-let basis, the company also said
In Westminster
Rishi Sunak has hired a top former Morgan Stanley executive as his new business adviser, as part of efforts to spur economic growth ahead of an expected election next autumn. Franck Petitgas, who stepped down from the bank after a 30-year run in November, joined Sunak’s top team on Tuesday, according to a person familiar with the matter.
That’s as the number of people available to work in the UK rose for the first time in two years, easing one of the tightest labor markets in more than a generation, a survey compiled by S&P Global showed.
Today, the UK Prime Minister meets Joe Biden in Belfast as the US President kicks off his Irish tour marking the 25th anniversary of the Good Friday Agreement, which brought to an end decades of violence in Northern Ireland.
In Case You Missed It
Most of the advertisers who abandoned Twitter after Elon Musk’s $44 billion acquisition have returned, the billionaire and Tesla co-founder told in a Twitter Spaces interview with the BBC, suggesting the social media platform is regaining its footing. Over 3 million users tuned into the online conversation, in which Musk reaffirmed that Twitter was operating at about break-even and could become profitable as soon as this quarter.
Looking Ahead
Tesco Plc will disclose its full-year earnings tomorrow at 7 a.m. London time. Britain’s largest retailer is expected to report an adjusted operating profit of £2.63 billion, according to a Bloomberg compiled consensus, down from £2.83 billion a year earlier.
Investors will also keep a close eye on the company’s outlook for the new year as it strives to retain its leading market share in an increasingly competitive scenario.
“Tesco looks to have avoided any further margin damage from adverse differential inflation as UK consumer prices are now rising faster than producers’ selling prices,” Bloomberg Intelligence senior analyst Charles Allen writes, citing the possibility of a more optimistic guidance for 2024.
For a more considered take on the UK’s economic and financial news, sign up to Money Distilled with John Stepek.
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