Pigaga has second thoughts about Tullett Prebon, Capco subsidiary raises £175m

London open

The FTSE 100 is expected to open 35 points lower on Monday, after closing down 0.03% at 6,909.43 on Friday.

Stocks to watch

Highly experienced ICAP operating director Ken Pigaga has has second thoughts about moving to Tullett Prebon along with a colleagues as part of its voice broking acquisition. Pigaga, after a decade at ICAP following stints at Goldman Sachs and JP Morgan, has decided not to take up the position of director and chief operating officer of the newly formed group TP ICAP, the companies revealed on Monday.

Capital & Counties Properties’ (Capco) subsidiary Covent Garden Holdings agreed to a placement of £175m 10 year and 12 year senior unsecured notes with five US investors, in order to strengthen the company’s capital structure and provide greater financial flexibility. The first tranche of £125m will have a fixed coupon of 2.28% due in 2026 and the second tranche of £50m at a fixed coupon of 2.37% due in 2028.

Holiday airline Monarch was working to reassure customers and the market that it was fully operational on Monday morning, after widespread speculation over the weekend that it was going over the brink. The airline - majority owned by secretive City investment firm Greybull Capital - issued a statement saying it was trading well, even though the industry was in a period of difficulty. Monarch’s Twitter account was filled with speculation from customers on Saturday and Sunday, asking it about its financial health, and whether their booked holidays were safe. The firm said on Monday that it was in good shape, and expected to post more than £40m in underlying earnings for the financial year through October.

Newspaper round-up

Senior financiers are alarmed at growing political momentum behind a so-called “hard Brexit” that they fear will erode business confidence, trigger corporate departures and damage the City of London. Leading bankers who have held talks with government ministers have told the Financial Times they believe Theresa May, the prime minister, will end up taking Britain out of the EU’s single market and customs union. - Financial Times

Britain’s financial services are becoming increasingly anxious about life after the Brexit vote, according to the latest detailed survey of confidence in the sector. Optimism dropped for the third consecutive quarter in the three months to September, according to the research jointly produced by the CBI business lobby group and the accountancy firm PwC. - Guardian

The UK's decision to leave the EU will not dent growth at all this year, according to economic forecasts compiled by the Treasury, in a complete reversal of the gloomy short term forecasts made after the EU referendum. Panic has faded rapidly among the dozens of independent economists consulted by the Treasury as strong data in the three months since the vote reassured the analysts that any shock from the vote was far less severe than first feared. - Telegraph

Britain's mobile giants face a High Court claim for hundreds of millions of pounds over allegations they colluded and forced Phones 4U out of business. Lawyers for the collapsed retailer’s administrators, PwC, are understood to be preparing to launch the action against EE, O2 and Vodafone over the coming months, having sent mobile operators letters warning them they could face a High Court claim around a year ago, according to sources. - Telegraph

Britain’s manufacturers insisted they have a crucial role to play in a post-Brexit world, contributing $247bn (£190bn) a year to the economy and creating well-paid, high-value jobs. The UK is the world’s ninth-largest industrial nation and manufacturing accounts for 14% of business investment according to a report by the sector’s trade body, called EEF, and Santander. - Guardian

US close

US stocks fell back on Friday on slightly lower than usual trading volumes, following the release of disappointing manufacturing figures and as investors took profits following two days of Fed-inspired gains.

The Dow Jones Industrial Average gave back 131.01 points or 0.71% to 18,261.45 and the S&P 500 was down 12.49 points or 0.57% to 2,164.69, while the Nasdaq Composite retreated 33.78 points or 0.63% to end the session at 5,305.75.

For the week as a whole the S&P 500 gained 1.2%.

Meanwhile, West Texas Intermediate crude oil futures lost $1.59 to $44.48 per barrel on NYMEX on reports that Saudi Arabian officials did not expect any agreement to be reached when producing countries met the following week in Algiers.

In corporate news, Twitter shares surged over 20% following a CNBC report that the company was considering the possibility of a sale.

Endo International rose sharply after appointing Paul V. Campanelli as president and chief executive officer, effective immediately.

Apple slipped on speculation GfK was to publish research pointing to lower sales of the iPhone 7.