Tesco (TSCO) unveils its discount chain Jack’s today as the major supermarkets continue to lose market share to Lidl and Aldi. Britain’s biggest supermarket will reveal its plans to take on the discounters with a cut price offer of its own as it battles to win customers. The name is a nod to Jack Cohen who founded Tesco in 1919.
BAE Systems (BA.) secures £5bn sale of 24 Typhoon fighter jets to Qatar to keep production lines open in Lancashire. The deal was first announced in December but first payment was delayed in June, triggering jitters in the market.
£5bn insurance deal to trigger £100m payday for bosses at broker Jardine Lloyd Thompson Group (JLT). The Lloyd’s of London stalwart accepted a takeover offer from Marsh & McLennan (MMC) worth 1915p a share, or £4.9billion. MMC, which is worth more than £42billion, has pledged to pay £100million in retention bonuses to some senior management and staff. But the bumper deal could also see almost 4,000 staff axed.
Tesco (TSCO) has lost more of its market share to Aldi and Lidl as it prepares to launch a new discount store chain to counter the seemingly unstoppable rise of the German supermarkets in the UK. Britain’s largest grocer, which is poised officially unveil its new discount store Jack’s tomorrow, saw its market share shrink to 27.4% in the 12 weeks to 9 September from 27.9% in the same period last year, according to Kantar Worldpanel.
Private healthcare group Spire blames NHS cutbacks as profits slump 20%. Spire Healthcare Group (SPI) has blamed an ‘unprecedented’ drop in patients from the NHS for a slump in first half profits. The group, which owns 38 hospitals and treats NHS patients as well as those paying privately or through medical insurance, said profits fell 20.6% to £6.1million in the first six months.
Ocado sales growth steadies but online grocer says its roll-out of new robot warehouses is on track. Ocado Group (OCDO) saw a slight slowdown in sales growth over the summer, but said it was still on track to meet its guidance for the year and to open ‘a significant number’ of new customer fulfillment centres – although it did not go into specifics. Revenues at the online supermarket, which licenses its technology using grocery-packing robots – Ocado Smart Platform – to other retailers, rose 11.5% in the 13 weeks to 2 September, a touch down from 11.7% growth in the first half.
Misgivings over a possible bid by ITV (ITV) for Big Brother production firm Endemol Shine have given investors a headache. ITV has reportedly thrown its hat into the ring for Endemol. Private equity firm Apollo Global and 21st Century Fox, which jointly own Endemol, effectively hoisted the ‘for sale’ sign on the Dutch production company in July. It is thought cable TV giant Liberty Global and French production and distribution company Banijay Group are also interested in acquiring Endemol, which has been valued at around £3billion.
Selling pressure on miners eased, although US-China trade war fears lingered on after President Trump’s latest batch of tariffs. Investors moved back into the sector on reports that China intends to increase infrastructure investment. Glencore (GLEN) gained 2.8%, or 8.35p, to 308.7p, while Antofagasta (ANTO) added 1.8%, or 13.6p, to 790.6p. Mexican precious metals miner Fresnillo (FRES) was also boosted by broker comment, with RBC Capital assuming coverage on the stock with a ‘top pick’ rating, helping its shares add 1%, or 8.2p, at 796.4p.
Broker comment gave a lift to British Gas owner Centrica (CNA), which added 2.7%, or 3.9p, to 149.35p with the parent company of British Gas bolstered by a double-upgrade of its rating by Goldman Sachs. The US bank raised its stance to ‘buy’ from ‘sell’ as it believes recent underperformance of Centrica’s shares is overdone and that investors are overlooking the impact of year-to-date rallies for gas and power prices.
British American Tobacco (BATS) shares fell 1.9%, or 69p, to 3600p after Morgan Stanley initiated coverage on the stock with only an ‘equal-weight’ rating.
Cyanconnode Holdings (CYAN) was the top riser in London, soaring 43.7%, or 2.95p, to 9.7p on the back of an £8.8million smart-metering contract with an unnamed Indian utility. Despite today’s surge, the shares are still worth less than half what there were at the start of the year but Cyan Connode’s house broker, Finncap, went into bat for the company, saying the deal ‘highlights the huge opportunity in the Indian market, Cyan Connode’s strong position in that region and the imminence of major deployments after a raft of pilot project wins’.
Shares in audio-visual company MediaZest (MDZ) rose 15%, or 0.02p, to 0.12p as it moved into profit in the first quarter. The company reported a net profit of £75,000 for the three months to the end of June, up from a £127,000 loss a year ago.
