Click here to read this morning's Market Outlook from The Trader, Nicole Elliott.
Patisserie Holdings (CAKE) announced that its finance director Chris March was arrested last night and subsequently released on bail. The Hertfordshire police stated that a "44-year old man from St Albans has been arrested on suspicion of fraud by false representation”, and has been released under investigation. The owner of the Patisserie Valerie café chain announced yesterday that it needs an immediate cash injection, otherwise there is “no scope” for the business to continue trading. Shares are still suspended at 429.5p.
The global stock market sell-off seems to have eased after Asian stocks gained some ground over night and Europe followed suite. US-stocks are also up pre-market after a torrid Wednesday which saw $200bn wiped off the valuations of just four companies. The ease will have no doubt come as a relief to investors, but beware the ‘dead cat bounce’ – something investors who endured the last bear market will be all too familiar with.
OTHER COMPANY NEWS:
Diploma (DPLM) has announced the acquisition of Actios SAS, which supplies branded protective sleeving and cable identification products through its subsidiary Gremtek. It will sit within Diploma’s controls division as part of the wider strategy to expand the business across Europe - Gremtek is based in Paris and has operations in Germany. The deal is expected to be immediately earnings enhancing. Shares are up 1 per cent. Hold.