Intertek makes IoT acquisition, Henderson agrees merger
London open
The FTSE 100 is expected to have a flat start on Monday, following on from a negative finish last week.
Stocks to watch
FTSE 100 listed quality assurance provider Intertek bought EWA Canada, a cyber security specialist, from Electronic Warfare Associates to take hold of an opportunity in the 'internet of things' market. EWA-Canada will enable Intertek to perform security evaluations on its products and networks and provide custom security assurance solutions to its customers as well as expand EWA-Canada's customer base.
AstraZeneca’s global biologics research and development arm MedImmune has entered into a licensing agreement with Allergan for the global rights to MEDI2070, which is currently in a Phase IIb clinical trial for moderate-to-severe Crohn's disease and ready for Phase II for ulcerative colitis.Under the terms of the deal, Allergan will make an upfront payment to AstraZeneca of $250m for the exclusive, worldwide licence to develop and commercialise the drug.
Henderson Group has agreed a $6bn merger with US fund management peer Janus Capital. The combination, which will leave the UK company's shareholders owning 57% of the enlarged group, will create a company with more than $320bn assets under management and is expected to complete in the second quarter of 2017. Henderson's final dividend this year will be paid but its planned £25m share buyback would be cancelled.
Newspaper round-up
Theresa May has set Britain on course to leave the EU by 2019 in her first major speech on Brexit, saying that the UK would become a “fully independent, sovereign” country in the clearest sign yet that she wants a clean break from Europe’s single market. The prime minister told cheering Conservative supporters at the Tory party’s annual conference that Britain would insist on taking full control of immigration and refuse to accept the jurisdiction of the European Court of Justice. - Financial Times
Deutsche Bank is bracing for another pivotal week as the German giant negotiates with the US Department of Justice to talk down a $14bn fine. Senior figures including chief executive John Cryan are expected to be in the United States this week, coinciding with meetings of the World Bank and the International Monetary Fund. Mr Cryan spent much of last week in Arizona, reassuring clients about the strength of the bank on the sidelines of the firm’s leveraged finance conference. - Telegraph
The chancellor is to tell the Conservative party conference that he remains set on achieving a balanced budget, while reiterating that this would happen in a “pragmatic” way without the need for a surplus this parliament. The scale of the deficit “remains unsustainable”, Philip Hammond is to say on Monday according to extracts of his speech released in advance, which also includes a reiteration of the election pledge to "restore fiscal discipline” but "in a pragmatic way that reflects the new circumstances we face". - The Guardian
US close
US stocks finished in the green on Friday, rebounding from Thursday's declines as investors dusted off worries about Deutsche Bank and the broader financial sector.
The Dow Jones Industrial Average was last up 0.91% to 18,308.15 points, the S&P 500 increased 0.8% to 2,168.27 points and the Nasdaq 100 grew 0.77% to 4,875.70 points.
At the same time oil prices wavered as the market continued to assess OPEC’s agreement to limit production.