(Bloomberg) -- Lingering uncertainty among institutional investors is hitting UK asset managers, with Ashmore and Liontrust reporting billions of pounds in client money outflows this morning. Meanwhile, the world of luxury coats looks rosier — as Burberry can attest. The fashion house reported rising revenue driven by rebounding demand in China. 

Here’s the key business news from London this morning:

In The City

Burberry Group Plc: The company’s revenue rose 18% at comparable stores on a constant exchange rate basis in the first quarter. A recovery in China compensated, somewhat, for weakness in the US market. 

• Chief Executive Officer Jonathan Akeroyd has been trying to boost the appeal of the brand. He’s hoping Daniel Lee, the new designer who unveiled his debut collection in February, can reinvigorate the popularity of the label by going back to its British roots 

Ashmore Group Plc: The asset manager’s clients pulled $2.9 billion from the emerging markets specialist in the three months through June. 

• “There remains some global macro uncertainty and certain investors have therefore reduced risk during the quarter,” Ashmore Chief Executive Officer Mark Coombs said in a trading update 
• The company, which was founded in 1992 as part of the Australia and New Zealand Banking Group and became independent seven years later, has been grappling with poor performance and mass redemptions for the past two years

Liontrust Asset Management Plc: The London-based firm saw £1.6 billion in outflows last quarter, saying that its strong focus on equities has proved to be challenging in the current risk-off environment, “especially when the UK market has been out of favour.”

• The asset manager’s planned acquisition of Swiss peer GAM Holding AG should help it diversify asset classes and investment styles to offer more solutions to clients, Liontrust’s Chief Executive Officer John Ions said 

ITV Plc: The network said it's no longer actively exploring an acquisition of All3Media, but it'll continue to keep an eye on the British TV producer.

In Westminster

A sharp drop in the number of advertised job openings in England is dimming the prospects for the economy, raising the risk that the UK will slip into recession this year.

MPs will investigate whether firms are doing enough to tackle pervasive sexist attitudes in the finance industry after a string of scandals which have rocked the sector in 2023. The inquiry, launching on Friday, will look at whether misogyny, sexual harassment, and the issue of stubborn pay inequality have been sufficiently addressed. 

Finally, Chancellor Jeremy Hunt’s “private equity compact is the wrong approach to boosting retirement incomes or the economy,” writes Bloomberg Opinion’s Merryn Somerset Webb. 

In Case You Missed It 

Microsoft Corp. and Activision Blizzard Inc. are considering giving up some control of their cloud-gaming business in the UK as a way to appease regulators so they can complete their $69 billion merger by the July 18 deadline, people familiar with the matter told Bloomberg. 

Ofwat faces a difficult balancing act. The UK regulator must shore up the water companies — requiring billions from shareholders — without killing off investment in the water sector. It is a challenge that some believe will be beyond the organisation whose chairman this week sought to reassure MPs by telling them it would take a “more muscular approach” to dealing with the turmoil facing the heavily indebted industry.

Twelve years on, and four years after Jeffrey Epstein’s death in a Manhattan jail by suicide, the details of how former Barclays Plc Chief Executive Officer Jes Staley and the convicted sex offender formed a mutually beneficial bond are only now becoming clear. Bloomberg reporters reviewed thousands of pages of documents and emails to construct a detailed timeline of the relationship. They join this week’s In the City podcast to discuss the reporting process and their findings. 

Looking Ahead 

Earnings season will be entering full swing next week, with firms including online grocer Ocado Group Plc, discount airline EasyJet Plc and commodities giant Glencore Plc all due to report. 

For a more considered take on the UK's economic and financial news, sign up to Money Distilled with John Stepek.

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