Proactive Investors -
- FTSE 100 accelerated from an opening low of 7,607.28
- US stocks seen mixed ahead of more data
- Oil price firmer after Saudi production cut
KKR finds a deal
Private equity firm KKR is splashing the cash and buying US machinery maker Circor International in a $1.6bn deal.
Under the terms of the agreement, KKR will pay $49 per share for each Circor share, which is a 55% premium to the New York-listed firm's closing share price on Friday. In pre-market trading, Circor shares were up 50% at $47.44.
KKR is making the investment in Circor through its North America Fund XIII. The company said it builds on its recent experience investing in flow control technologies and aerospace and defence industry suppliers globally, including Ingersoll Rand, Flow Control Group, Hensoldt, and Novaria Group.
Skies the limit
British Airways (LON:ICAG) has operated its first passenger flight between London Heathrow and Beijing in more than three years after suspending the route due to the coronavirus pandemic.
The airline - part of FTSE 100-listed International Consolidated Airlines - will operate four return flights per week on the route, which is also served by its business partner, China Southern.
BA began operating a regular passenger service to China in 1980 and continued doing so until the sharp drop in demand caused by the COVID-19 crisis.
The UK airline's first flight from Heathrow to Beijing since January 2020 touched down on Sunday. Flights to China are restarting following a relaxation of the country's travel restrictions, with borders reopened to foreign nationals for the first time since 2020.
Meanwhile, rival Virgin Atlantic announced on Monday that it will operate flights to South America for the first time, with a daily service between Heathrow and Sao Paulo, Brazil, from May next year.
It will also begin flying between Heathrow and Bengaluru, India, and resume flights between Heathrow and Dubai in the United Arab Emirates, and between Manchester and Las Vegas in the US.
A glance at some of today's biggest movers
Risers
- Diaceutics (LON:DXRX) - up 15% to 93p: Shares jumped higher after news the firm has secured a three-year enterprise contract with a top 10 global pharmaceutical company in the United States, marking a significant achievement for the leading technology and solutions provider.
- Chill Brands (LON:CHLL) - up 14% to 12.8p Shares soared on Monday after the company confirmed deals with specialist carriers to ship nicotine-free vapour products across all 50 states. London-listed Chill Brands will now aim to start offering the nicotine-free vapour products directly to customers across the US in June.
- LifeSafe (LON:LIFS) - up 17% to 40.5p: The fire safety technology company surged as sales growth in 2023 continued to exceed expectations. Revenue in the first four months was £2.1mln, marking over a 200% increase compared to the same period last year, and outpacing the company's internal budgets by 15%.
Fallers
- Bigblu Broadband (LON:BBB) - down 13% to 41.7p: Shares fell after an update showed a drop in like-for-like revenue growth to 3.1% from 15% and flat total revenue of £14.9mln for the six months to 31 May 2023, reflecting "market challenges globally", and pressure as Elon Musk's Starlink makes inroads in Australia.
Mixed start expected in the US after strong gains Friday
US stocks are likely to open mixed as investors look ahead to the Federal Reserve’s upcoming interest rate decision on June 14 after an employment report on Friday painted a mixed picture of the US labor market.
Futures for the Dow Jones Industrial Average rose 0.1% in Monday pre-market trading, while those for the broader S&P 500 index were two points higher and contracts for the Nasdaq-100 declined 0.2%.
The main indices ended higher on Friday following the jobs report and after US Congress passed a bill to raise the country’s debt ceiling. The DJIA gained 2.1% to finish at 33,763 for its best session since January, while the S&P 500 rose 1.5% to 4,282 and the Nasdaq added 1.1% to 13,241.
“With the US debt-ceiling crisis averted, attention now turns to the interest rate outlook, which remains uncertain across major economies such as the US, Eurozone, and UK,” commented TickMill Group market analyst Patrick Munnelly.
“The upcoming monetary policy updates from the US Federal Reserve, European Central Bank (ECB), and Bank of England (BoE) scheduled for the 14th, 15th, and 22nd, respectively, will be closely watched by the markets," he said.
"Following a mixed US employment report on Friday, which showed higher-than-expected job growth but also an increase in the unemployment rate and a slight moderation in wage growth, the US interest rate outlook has become even more uncertain."
The services ISM reading for May, due out today, will provide another "timely update" on what is happening to activity ahead of the Fed’s policy announcement, Munnelly added, noting that it showed growth still running at a solid pace in April, albeit slower than in the first couple of months of the year.