It’s been a relatively quiet start to the new trading week for UK assets with the FTSE 100 trading pretty much flat and the pound mixed on balance. Tuesday’s spring statement will likely be the main event to watch out for this week, unless there are any major Brexit-related revelations, with no significant macroeconomic data releases scheduled from the UK.
Final offer in hostile bid for GKN (LON:GKN)
The ongoing saga surrounding Melrose Industries' (LON:MRON) proposed takeover of GKN (LON:GKN) could soon draw to a conclusion with an offer of 467p declared final. The bid values the FTSE engineering company at £8.1b and has come as something of a surprise for the target, who this morning launched their final defence against the previous bid from Melrose of 416p per share.
There has been little by the way of a discernible reaction in the stock’s price in trading so far today, with the market currently around 434p and little changed on Friday’s close. These latest developments may not yet represent a climax after a near two-month battle for the future of GKN, but they certainly do suggest that the mtter will lilkely be resolved in the not too distant future.
Hammond to reject end to austerity calls
A continued improvement in public finances which is expected to see Philip Hammond unveil the smallest budget deficit since 2002 will not lead to a change in policy stance, with the Chancellor likely to reject calls to announce the end of austerity in his spring statement tomorrow. The UK is now running a surplus of £3.8B in its current budget but Hammond has urged caution, stating that even though there is 'light at the end of the tunnel.. we are still in the tunnel at the moment.'