Proactive Investors -
- FTSE 100 rises 16 points
- Bookmakers plunge on reports of new UK gambling tax
- Takeover offers upped for Mulberry and TI Fluid systems
Stocks on the up
The FTSE 100 has climbed out of its early Monday morning depression and is trying to put a brave face on it, climbing 16 points now to 8,269.5.
Among the risers are five of the top six largest companies, with AstraZeneca (LON:AZN) up over 1%.
Shell PLC (LON:SHEL) has also moved out of the red despite crude oil prices remaining down 1.5% at $77.82 a barrel. BP PLC (LON:BP) meanwhile remains down slightly.
Top of the blue-chip leaderboard is Bunzl PLC (LON:BNZL), the distributor, up 1.85%, followed by renewable energy group SSE PLC (LON:SSE) and housebuilder Vistry Group (LON:VTYV).
Aerospace and defence pair BAE Systems (LON:BAES) and Melrose Industries (LON:MRON) are also up 1.4%.
Takeover boosts
Mulberry Group (LON:MUL) has surged 20% higher on the news of Frasers (LON:FRAS)' hiked takeover bid from Friday.
However, the shares have come back a bit as traders mull the complicated handbags-at-dawn situation, with major shareholder Challice of Singapore saying it is not interested in selling.
Over at TI Fluid Systems PLC (LON:TIFS), the 20% jump int he shares has been maintained at just under 183p, which is well below the 200p offer price from its private equity-backed suitor.
Gambling tax report
More information on the gambling tax reports that have slammed the listed bookmakers and casino operator Rank Group PLC (LON:RNK).
Investors are reacting to news that the industry could be hit with a £3 billion tax raid in the Budget later this month.
Proposals have been suggested by a pair of influential thinktanks to double some taxes on online casinos and bookmakers, it was reported at the weekend in the Guardian.
The new measures are backed by major Labour donor Derek Webb, a campaigner for tighter gambling industry regulations.
FTSE 100 opens lower
The FTSE 100 has dropped 12 points to 8,242 in early trading.
Oil heavyweights are down, miners are mixed, while airlines are acting as a drag.
Biggest faller is Ladbrokes owner Entain PLC (LON:ENT), down 15%, with outside the bue-chip ranks Paddy Power owner Flutter (LON:FLTRF) is down 8% and William Hill owner Evoke PLC (LON:EVOK) is down 13%.
Wages and inflation on the mind
This week is the busiest of the month for UK economic data releases, says market analyst Kathleen Brooks at XTB, "and the impact on the pound will be watched closely".
Against the US dollar, stirlign has tanked since the end of September from $1.34 to $1.3050, where it has found some support.
"This week’s UK economic data will test that support level and see how far the selling interest in the pound will go," says Brooks, eying Tuesday's labour market data where wage data could generate the biggest market reaction as traders expect pay growth to moderate to a 3.7% annual rate from 4% in July.
"If analysts are correct, then this would be the first sub-4% reading for wage growth since 2020. It may also signal that inflation in the UK is now under control, which would support further interest rate cuts from the Bank of England."
Inflation on Wednesday will be the most important determinant of the BoE’s next move, Brooks and many others think, where last month's CPI rate is expected to moderate to a 1.9% annual rate from 2.2% in August.
"If estimates are correct then this is a big milestone for the UK, as it would be the first reading that is below the BOE’s target 2% rate since 2021, and it would also be a sign that the BOE’s fight with inflation is over."
Brooks notes that the biggest response to CPI data has been more keenly felt in the bond market in recent months.
Also in macro news this week there is an ECB decision on Thursday .