HgCapital sells stake in Dext, Derwent buys remaining half of 50 Baker St
London open
The FTSE 100 is expected to open 15 points higher on Tuesday, having closed up 0.31% on Monday at 8,312.89.
Stocks to watch
HgCapital Trust announced the sale of its investment in Dext Software, a bookkeeping automation platform, to Iris Software Group for an undisclosed sum on Tuesday. The transaction valued HgCapital’s share of Dext at £32.7m, representing a 13% uplift over its last reported valuation, and contributed to a pro-forma net asset value of £2.4bn. Iris was aiming to integrate Dext with its own platform for accountants and businesses.
Derwent London acquired the remaining 50% stake in the proposed 50 Baker Street W1 development from joint venture partner Lazari Investments on Tuesday, for £44.4m, reflecting a 4.2% net initial yield based on current rental income. The company said the planned 240,000 square foot office-led scheme, which received planning consent in August, would nearly double the existing floor area, with detailed design work underway. It said the acquisition followed successful pre-letting at the adjacent 25 Baker Street project.
Newspaper round-up
The US has announced new export restrictions targeting China’s ability to make advanced semiconductors, drawing swift condemnation from Beijing. Washington is expanding efforts to curb exports of state-of-the-art chips to China that can be used in advanced weapons systems and in artificial intelligence. – Guardian
Labour will miss its manifesto target of building 1.5m homes in England before the end of this parliament without more radical reform to the planning system, the thinktank the Centre for Cities has warned. Keir Starmer put tackling housing affordability at the heart of his pitch to voters, promising to “get Britain building again”. – Guardian
Jaguar wants "to be bold and disruptive" with its new electric car and redesign, the luxury vehicle maker's managing director told Sky News. The British car maker sparked widespread controversy last month when it unveiled its rebrand ahead of becoming a fully electric brand. – Sky News
The Conservative Party treasurer has emerged as the leading candidate to rescue the stricken Thames Water in return for a major shareholding. Graham Edwards is part of a consortium also including Castle Water, the leading beneficiary of liberalisation of the sector, and the billionaire Pears family. – The Times
Elon Musk has lost an attempt to receive a $56 billion compensation package, despite the backing of Tesla shareholders. A Delaware judge declined on Monday to reinstate the record-breaking pay deal, which was rescinded in a January ruling. Musk, the Tesla chief executive who has become an adviser to Donald Trump, the president-elect, had spent months asking shareholders to support his receipt of the biggest pay package in American corporate history. – The Times
US close
Major indices delivered a mixed performance on Monday following last week's Thanksgiving break.
At the close, the Dow Jones Industrial Average was down 0.29% at 44,782.00, while the S&P 500 advanced 0.24% to 6,047.15 and the Nasdaq Composite saw out the session 0.97% firmer at 19,403.95.
The Dow closed 128.65 points weaker on Monday, taking a bite out of gains recorded in the previous session.
Monday's primary focus was the Institute for Supply Management's manufacturing purchasing managers index, which increased to 48.4 in November, up from 46.5 in October and ahead of forecasts of 47.5.
New orders increased for the first month in seven in November, while price pressures eased and production, employment and inventories contracted less than in previous months.