Proactive Investors - 8.04am: Mulberry bats off Frasers bid
Mulberry Group (AIM:LON:MUL) has rejected a takeover bid by Sports Direct-owner Frasers Group (LON:FRAS) PLC.
Frasers, which currently owns more than a third of Mulberry’s shares, has made numerous attempts to engage with Mulberry on a 150p-per-share offer and has expressed frustration over Mulberry’s lack of engagement.
Mulberry finally addressed the advances today, calling the offer, which values Mulberry at £83 million, “untenable”... Read more
7.56am: Government borrowing third highest on record in September pre-Budget
Government borrowing increased in September ahead of the upcoming Autumn Budget to the third highest figure for the month on record.
Borrowing increased by £2.1 billion against September last year to £16.6 billion, the Office for National Statistics reported on Tuesday.
This marked the highest figure for September since records began in 1993 and was above the Office for Budget Responsibility’s forecast for £15.1 billion.
Central government receipts, from the likes of taxes, increased by £3.3 billion to £80.7 billion over the month.
Expenditure climbed by £5.5 billion to £93.7 billion in the meantime, as debt interest costs grew, alongside spending on the likes of goods and services due to pay rises and inflation.
“With just over a week to go before the UK budget, it lays bare the dire state of the UK’s finances and borrowing this year is on track to surge above forecasts,” XTB analyst Kathleen Brooks commented.
She highlighted tax receipts had been broadly stable in the months running up to the October 30 Budget, while interest payments and expenditure had been trending lower.
“However, the UK’s public finances are never a pretty read, and today’s data highlights the complicated plight the Chancellor faces next week.”
7.42am: IHG grows revenues but pressure remains in China
Intercontinental Hotels Group PLC (LSE:LON:IHG) (IHG) has reported an increase in revenue per available room over the third quarter despite ongoing pressure in China.
Global revenue per available room climbed by 1.5% over the quarter, the Holiday Inn owner reported on Tuesday.
This was as the figure ticked up by 1.7% in the Americas and 4.9% across Europe, the Middle East and Africa.
Revenue per available room in China slumped by 10.3% however, which IHG attributed to “unusually strong” comparatives from a year ago when there was a resurgence in domestic travel... Read more
7.13am: Stocks seen lower
Futures had London’s blue chips falling a further 40 points to 8,326 ahead of Tuesday’s open, following a 40-point decline on Monday.
A 4.2% gain by Fresnillo PLC (LSE:LON:FRES) on the back of a new record for gold and silver's highest price in over a decade had failed to offset declines from a string of blue caps in London on Monday.
Overnight, Asian markets largely dipped into the red as investors continued to mull over cuts to benchmark lending rates from the People’s Bank of China earlier in the week.
Back in London, attention turns to a trading update from Holiday Inn owner Intercontinental Hotels Group PLC (LSE:IHG) and public borrowing figures on Tuesday.