Shawbrook rejects renewed takeover offer, AO World losses narrow
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The FTSE 100 is expected to open 16 points lower on Tuesday, after closing up 0.29% at 7,527.76 on Monday.
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Having spoken to other shareholders after private equity groups Pollen Street Capital and BC Partners improved their takeover offer by 10p, Shawbrook's board of directors has again rejected the deal. The challenger bank's independent directors believe that the offer contnued to undervalue Shawbrook and its prospects "and therefore advise that shareholders take no action".
Full year revenues at online electrical retailer AO World increased 17% to £701m as its UK and Continental European businesses grew sales. Group adjusted losses before interest, tax, depreciation and amortisation were cut 46.2% to £2.1m.
Temporary power specialist Aggreko announced on Tuesday that, after 13 years with the FTSE 250 business - three of which as chief financial officer - Carole Cran had tendered her to enable her to take up a new role as CFO of Forth Ports, an infrastructure funds-owned company headquartered in Scotland.
Newspaper round-up
Average UK rents have fallen for the first time in more than seven years, with London seeing the biggest decline, according to new data. The slowdown in the rental sector mirrors a similar picture in the housing market, with figures showing that property prices have fallen for the third month in a row. - Guardian
The prospect of a revived EU-US trade deal is in “deep freeze”, according to Brussels sources, undermining reports that the EU has been inching ahead of the UK in the race for an arrangement with Washington. Neither Donald Trump nor European officials raised the possible resumption of talks during the US president’s visit to Brussels last month, EU sources said. - Guardian
Shares across the leisure and airline sectors fell sharply yesterday as bosses admitted that the resilience of Britain’s tourism industry would be sorely tested by the latest terrorist attack at London Bridge. One leisure sector boss said: “London carried on doing well after Westminster, as overseas visitors had already booked and the weak pound acted as a draw, but we face a dip in business of four to five months. Paris tourism was down 30 per cent and I’m expecting something similar in London.” - The Times
Household spending growth slowed in May as British shoppers selectively cut back purchases, as the rise of inflation threatens living standards. Spending in May was up 2.8pc on the year, the slowest rate of growth since last July, Barclaycard figures show. - The Times
Qatar has become a key supplier of gas to Britain over the past decade, as the decline of North Sea production makes the UK more reliant on imports. Shipments of liquefied natural gas from the Gulf state provided nearly 30 per cent of UK gas imports in recent years, second only to pipeline imports from Norway. - The Times
An activist investor has revealed a stake in Ocado just a day after the online grocer disclosed its first deal abroad, a long-awaited expansion overseas that nevertheless met with a lukewarm reaction in the City. Crystal Amber, one of Britain’s leading homegrown activist funds, which is led by Richard Bernstein, unveiled a 0.5pc shareholding in the FTSE 250 company worth about £9.3m. Ocado is now the fund’s seventh-biggest investment. - Telegraph
US close
US stocks ended a touch weaker on Monday as investors paused for breath after indices hit record highs last week, with oil prices under the cosh.
The Dow Jones Industrial Average ended down 0.1% at 21,184.04, the S&P 500 fell 0.1% to 2,436.10 and the Nasdaq closed off 0.2% at 6,295.68.
Labour productivity in the States was unchanged in the first quarter of 2017 in quarterly annualised terms, revised data from the Department of Labour revealed. That was better than an initially estimated drop of 0.6%.
As a result, unit labour costs advanced by 2.2%, instead of the 3.0% gain initially thought and versus consensus of 2.5%.
Elsewhere, data from the Institute of Supply Management showed economic activity in the non-manufacturing sector grew in May for the 89th consecutive month.
The non-manufacturing index reached 56.9 for the month, falling slightly short of expectations for a reading of 57.0.
Oil prices were in the red, reversing course after gaining earlier in the session on news that Saudi Arabia, Egypt, the UAE and Bahrain have cut diplomatic ties with Qatar, citing concerns about its terrorist links. West Texas Intermediate was down 0.6% to $47.39 a barrel and Brent crude was off 1% to $49.44.