As the UK’s negotiations with the EU prepare for the possibility of entering a “tunnel,” you’d be forgiven for experiencing a spot of deja-vu. Yet if the UK manages to iron out its post-Brexit trading arrangements, particularly around Northern Ireland, it wouldn’t just be a political boon for the Conservatives, it’d also lift a weight off thousands of businesses around the country. There’s due to be a call held today to see if the final details of the customs agreement can be worked out, at wh
(Bloomberg) — As the UK’s negotiations with the EU prepare for the possibility of entering a “tunnel,” you’d be forgiven for experiencing a spot of deja-vu. Yet if the UK manages to iron out its post-Brexit trading arrangements, particularly around Northern Ireland, it wouldn’t just be a political boon for the Conservatives, it’d also lift a weight off thousands of businesses around the country. There’s due to be a call held today to see if the final details of the customs agreement can be worked out, at which point the talks would move to a more intense phase.
Here’s the key business news from London this morning:
In The City
Ashmore Group Plc: The emerging market asset manager’s assets under management increased in the second quarter despite net outflows of $2.6 billion, as markets reacted to a slight easing of global concerns.
- Concerns that plagued 2022, like the Federal Reserve policy tightening, coronavirus outbreaks in China and inflation are starting to recede, leading to more appetite for risk in the year ahead, the company said
J Sainsbury Plc: Just Eat Takeaway.com NV is teaming up with the UK supermarket operator to drop off groceries in under 30 minutes in the latest tie-up in the rapid-delivery space.
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Just Eat will deliver from 175 Sainsbury stores including in London, Edinburgh and Bristol, with plans to expand further this year
Ineos Group Ltd: The chemicals company built by British billionaire Jim Ratcliffe struck a deal for assets being sold by Sika AG to win approval for the Swiss company’s acquisition of MBCC Group.
- Bloomberg reported Sunday that Ineos beat out private equity firms including Cinven, CVC Capital Partners, and Clayton, Dubilier & Rice. The deal values the admixture assets at about $750 million, people familiar with the matter said
In Westminster
UK and European Union negotiators are closing in on a resolution to end their long-running dispute over post-Brexit trading arrangements in Northern Ireland. Today, Foreign Secretary James Cleverly and European Commission Vice-President Maros Sefcovic are due to hold a call to take stock of the discussions to see if a comprehensive deal can be reached. The aim is to then move into a negotiating “tunnel” of intensive talks, though big gaps remain on many issues.
Teachers may join hundreds of thousands of UK employees taking industrial action as the government battles to contain a surge of worker unrest over pay that’s failing to keep pace with rampant inflation.
Meanwhile, Rishi Sunak plans to strengthen anti-protest legislation, giving police additional powers to clamp down on demonstrations even before they’ve caused any disruption.
In Case You Missed It
Almost nobody was buying offices in London in the final quarter of 2022 as the market turmoil from now-abandoned government spending plans sent borrowing costs soaring.
Right before the pandemic struck, a slated £1 billion buyout fund backed by HSBC Holdings Plc and sovereign wealth fund China Investment Corporation was hailed as an example of growing business ties between Beijing and London. Three years later, the venture is a mirror to China’s fraying relationship with Europe and the US, as well as the years of upheaval caused by pandemic-era lockdowns.
Looking Ahead
Ocado Group Plc will give a fourth-quarter trading update for its retail joint venture with M&S tomorrow. Although M&S didn’t divulge Ocado Retail sales in its report Thursday, it did say sales volumes from the partnership represented about 30% of the average basket on Ocado.com over the Christmas peak.
Data from Nielsen last week showed Ocado’s online market share gaining in Britain. Analysts expect the company to report adjusted Ebitda of £58 million this year, with estimates for 2022 averaging a negative £46 million after return to office policies meant fewer home orders last year. Investors will also keep a close eye on Ocado’s progress in adding more modules to recently-completed customer fulfillment centers after two planned CFCs in the northwest and southeastern England were postponed.
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