Proactive Investors -
- FTSE 100 well off session low of 7,556.16
- Wall Street moves higher after weak open
- BRC says UK retail sales growth slowed in May
Action on Activision
Microsoft (NASDAQ:MSFT)'s president Brad Smith has met the UK finance minister Jeremy Hunt for talks and said he would try to work with regulators to seek UK approval for its $69 billion purchase of "Call of Duty" maker Activision Blizzard (NASDAQ:ATVI), Reuters reported, citing a government source.
UK competition authorities blocked the takeover in April in a shock decision which jeopardises gaming's biggest-ever deal, drawing a furious response from the two groups who questioned whether the country remained open to tech firms.
Microsoft has since appealed the decision. Smith was also scheduled to meet officials from the Competition and Markets Authority (CMA) during his visit to London this week, according to reports.
Smith criticised Britain after the CMA veto, saying it would shake confidence in the UK as a destination for tech.
The EU approved the Activision deal in May after it accepted remedies put forward by Microsoft that were broadly comparable to those it proposed in the UK.
Microsoft has also appealed the US Federal Trade Commission's action seeking to block the deal after the agency said it would suppress competition.
The UK appeal is due to be heard next month, with a verdict likely in August or September.
Wall Street consolidates
The FTSE 100 index pushed modestly forwards, hitting new session peaks even as Wall Street made a weaker start on Tuesday.
US investors were still digesting recent data that have increased fears about a recession and muddied the Federal Reserve rate hike picture.
Around 20 minutes after the New York open, the Dow Jones Industrial Average was down 70 points, or 0.2% at 33,491, while the broader S&P 500 index fell 0.1%, and the tech-laden Nasdaq Composite lost 0.2%.
Apple Inc (NASDAQ:AAPL) shares were down more than 1% a day after the company unveiled its Apple Vision Pro, a spatial computer that merges digital content with the physical world. A company of that heft can move markets all on its own, said Keith Buchanan, senior portfolio manager at Globalt Investments.
“If you’re a $3-trillion company, the tail kind of wags the dog to an extent,” Buchanan said. “Apple, just given the sheer magnitude of its market cap, is going to have its way with most broader indices.”
A look at some of London's movers
Risers
Oxford Metrics PLC (LON:OMG1) - 106p, up 8.7%: Shares jumped following a strong six-month performance - one that put it on track to exceed full-year expectations. The smart sensing software firm recorded its strongest-ever half-year revenue at £21.3mln, a 70% increase from the previous year. The company also posted a 1,263% rise in adjusted profit before tax, reaching £4.1mln.
Golden Metal Resources PLC (LON:GMET) - 7.13p, up 7.6%: Shares gained as it said the interpretation of results from a high-resolution induced polarisation (IP) geophysics survey at its Pilot Mountain Project in Nevada has revealed three significant undrilled exploration targets.
Croma Security Solutions Group PLC (LON:CSSG) - 51.50p, up 8.4%: Shares jumped on news of a conditional agreement to sell its Vigilant Security (Scotland) Limited subsidiary to M&W Security Limited for £6.5mln, along with inter-company balances of £1.07mln. The sale aligns with Croma's strategy to focus on its higher-margin businesses, Croma Locksmiths and Croma Security Systems.
Fallers
Clean Power Hydrogen PLC (LON:CPH2) - 22.5p, down 8.2%: Shares dropped following the termination of a licence agreement with GHFG Limited, due to what the company believes is a breach of contract by its erstwhile partner. The UK-based green hydrogen technology and manufacturing firm had signed an agreement with GHFG, a joint venture between international renewable independent power producer, Alternus Energy Group and Eric Whelan, CEO of Irish developer Soleirtricity
N Brown Group PLC (LON:BWNG) - 24.2p, down 12%: Shares fell as the online retailer hinted “weaker confidence” could continue to weigh on performance, resulting in worse results for the current year. Reporting an 83% fall in pre-tax profit to £7.5mln for the year to 4 March 2023, alongside a 5% decline in revenue to £677.5mln, AIM-listed N Brown hinted problems are set to stay in full-year 2024.
Hellenic Dynamics PLC (LON:HELD) - 0.10p, down 34.9%: Shares plummeted following the announcement of major changes in the company's strategy. Adapting to the evolving European cannabis markets, Hellenic said it will no longer pursue the expensive process of EU Good Manufacturing Practices (EU-GMP) certification for its facilities as a number of operations of this kind now exist in its key markets.