TI Fluid Systems rejects two approaches from ABC Technologies, Phoenix operating profits rise

Stocks to watch

Auto parts engineer ABC Technologies on Monday confirmed it had two approaches for TI Fluid Systems rejected over the past month but was still interested in a deal and was “considering its position”. ABC made an initial proposal of 165p a share on August 22 and a revised 176p-a-share offer on September 4 – a 20.7% premium to TI Fluid’s closing price on September 13. In response TI Fluid said the bid “significantly undervalued” the company and its prospects.

Pensions, savings and life insurance provider Phoenix reported a 15% increase in operating profits in the first half and reiterated its medium-term targets for earnings and cash generation. The company also announced it was pulling the disposal of its SunLife division, which sells financial products to the over-50s, just three months after putting it up for sale given “current uncertainty in the protection market”.

Octopus Renewables Infrastructure Trust reported a 2% net asset value total return for the first half on Monday, and increased its target dividend by 4% to 6.02p, with a 1.33x dividend cover. The company said it expanded its portfolio in the period by acquiring a 199MW solar complex in Ireland and signed a power purchase agreement for its Crossdykes wind farm, contributing to a £5.5m NAV uplift. Since the period ended, ORIT completed the sale of its Ljungbyholm wind farm in Sweden, realising a 11.3% internal rate of return and reducing total gearing to 43%.

Newspaper round-up

The younger, tormented minister mulling his position before the Labour government granted Heathrow’s third runway in 2009 might have been greatly relieved to know that, 15 years later, not a shovel would have touched the ground. But now, returning to power with a revamped energy and climate brief, Ed Miliband again finds himself in a cabinet which, many in aviation hope, may usher in bigger airports and more flights – as well as enough CO2 emissions to outweigh any new solar farms. – Guardian

Employees as young as 16 should be automatically enrolled into workplace pensions and there is a strong case for making their employers pay in even when they do not contribute themselves, according to a leading thinktank. The Institute for Fiscal Studies (IFS) has warned that many current workers are on track for “inadequate retirement incomes”, with between 30% and 40% of private sector workers, 5 to 7 million people, likely to fall short of what is needed for a minimum standard of living. – Guardian

A £1.6bn contract to build three Royal Navy warships has been plunged into crisis as the company hired to assemble them teeters on the brink of administration. Harland & Wolff, the Belfast-based shipyard famous for building the Titanic, is understood to be preparing to file for administration as early as Monday amid concerns it will run out of cash by the end of this month. – Telegraph

ITV has launched an online shopping tool as it attempts to recover revenues lost by a decline in traditional advertising sales. The broadcaster has released a discount code service for online shoppers that will automatically add cost-saving promotions when making internet purchases. ITV will earn commissions when shoppers use the tool, called Kerching, which is available as a downloadable web browser extension. – Telegraph

Rachel Reeves has been warned that “significant action” is needed to stabilise the public finances in a report that calls for an overhaul of the fiscal regime, including scrapping stamp duty and reining in the pension triple lock. The Organisation for Economic Co-operation and Development said that the government faced “mounting spending pressures” stemming from higher health, pension and climate change costs. – The Times

US close

US stocks rose again on Friday, capping off an impressive win streak that more or less erased the losses made last week, as investors awaited a widely expected interest-rate cut from the Federal Reserve in the coming days.

The Dow ended 0.7% higher at 41,393.78, finishing 2.6% higher than last Friday; the S&P 500 rose 0.5% to 5,626.02, putting its weekly gain at 4.0%; while the Nasdaq increased 0.7% to 17,683.98, jumping nearly 6% over the past five sessions.

Helping sentiment was data showing that US consumer sentiment improved to its highest level since May. The University of Michigan’s consumer sentiment index came in at 69.0 for September, up from 67.9 a month earlier and ahead of the 68.0 consensus forecast.

Investors widely expect the Federal Funds Rate to be reduced by 25 basis points from the current range – where it stayed since July 2023 – when policymakers meet on 17-18 September, with two further cuts likely this year.

However, in remarks made at a forum organised by the Bretton Woods Committee, former New York Fed chief William Dudley said he saw a "strong" case for a 50 basis-point reduction.