(Bloomberg) -- Hi, I’m Leo from Bloomberg's UK Breaking News team, catching you up on this morning’s business stories.
Take a deep breath. British American Tobacco took a £25 billion puff on its US combustibles business, a non-cash impairment that might be grim for the company but perhaps less so for public health and all those who’ve turned to vape, nicotine pouches or even quit smoking altogether.The shares slumped 7% in early trading. No mention of a share buyback didn’t help.
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Key Business News
Auf Wiedersehen, Pet? TUI might ditch its London listing after shareholders pointed out its shares will be more liquid if the travel company consolidates its listing in Germany.
As if the London Stock Exchanges needs any more setbacks. Remember those two (!) trading outages yesterday? They were triggered by “the degradation of processing performance of a disk array,” the company said. In other words, faulty technology prevented the matching of buyers and sellers. LSE is replacing hardware and expects to open trading as normal today. Fingers crossed.
London’s capital markets may be in the gutter, but the trend of company takeovers remains on a roll with Dallas-based Trive Capital looking for a strike in its acquisition of Ten Entertainment. The PE firm will buy the British bowling alley operator in a £287 million deal.
Meanwhile, the UK car industry is breathing a sigh of relief. The European Commission looks set to recommend delaying tariffs on electric vehicles traded with the UK by three years.
Markets Today’s Take
Good news in the rental sector is scant and there little change to that today. The report this morning from Hamptons shows the trend of landlords exiting the market at a greater pace than entering has continued. Add to this the results from lender Paragon, which said it saw a slowdown in demand in its buy-to-let division as interest rates rose.
Fewer buy-to-let mortgages being lent and landlords fleeing means a diminished supply of rental properties. Which means yet more upward pressure remains on rents which have already soared. Renters of the UK, you have the full and complete sympathy of Markets Today and the London Rush.
— Sam Unsted
For more news and analysis throughout the day, follow Bloomberg UK’s Markets Today blog.
The Bank of England issues its biannual financial stability report 10:30 a.m. today, followed by a conference with Governor Andrew Bailey. Expect comments on hedge-fund risks, housing and possibly “Britcoin.”
Tomorrow, we’ll get updates from Mike Ashley’s Frasers Group, Rolex retailer Watches of Switzerland, and construction firm Balfour Beatty.
(Corrects first paragraph to specify BAT’s impairment is non-cash.)
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