Election called
12 December
The UK will head to the polls to vote on a new government, as prime minister (PM) Boris Johnson looks to reconfigure the parliamentary maths that has frustrated his efforts in securing the UK’s exit from the European Union. The legislation was approved on Tuesday and was bound for the House of Lords at the time of writing, where it is not expected to be opposed. The decision follows the UK’s agreed extension of its Brexit departure date to 31 January 2020, a postponement that the PM described as “damaging to our democracy”. Parliament will be dissolved after midnight on 6 November.
Just Eat disarray
Cat Rock unhappy
The tug-of-war for Just Eat (JE) continued after activist investor Cat Rock Capital attacked South African investment group Prosus, whose £4.9bn hostile bid for Just Eat was rebuffed by the group's management in October. The investment group – which owns 3 per cent of the food delivery platform – accused Prosus’s Delivery Hero division, a key Takeaway shareholder, of a “sustained selling programme” which was undermining Takeaway’s bid for Just Eat. Delivery Hero said that “the decision to sell down Takeaway.com shares was taken by Delivery Hero's management board independently in September 2019. Delivery Hero had no knowledge of Prosus's contemplated offer to acquire Just Eat prior to the publication of the offer.”
IPO delayed
Bad timing
The African Export-Import Bank announced that it was postponing an IPO on the London Stock Exchange. “Despite significant interest in the Bank from investors,” it observed, “in light of unfavourable market conditions, it has decided to postpone the proposed initial public offering at this time”. In October, the Cairo-based bank confirmed its intention to float shares on the main market, with admission expected in November 2019 – it remains intent on listing.
Beyond Meat first profit
Shares down
Beyond Meat's (US:BYND) shares plummeted a fifth following the release of its 2019 third-quarter results, despite recording its first quarterly profit and lifting its sales forecasts. The nascent US plant-based burger company has achieved sales growth through partnerships with retailers and restaurant chains, and raised its full-year net revenue outlook to a range of $265m (£204m) to $275m, from previous guidance of over $240m. For its quarter ending September, Beyond Meat recorded a net income of $4.1m, up from a $9.3m net loss in the prior year period.
Uber launches Money
Quicker payments
Uber (US:UBER) announced its foray into digital payments with its launch of Uber Money, which the taxi platform hopes will help drivers and couriers to better manage their earnings. Instead of waiting for weekly payments, they will now have real-time access to payments following each journey through Uber Debit, while a refreshed Uber Debit Card will launch for US drivers, offering cashback on fuel. The company is also relaunching its consumer credit card, which will offer 5 per cent back in Uber Cash from spending across its services, including Uber Rides, Uber Eats, and JUMP bikes and scooters.
OBR warning
Budget cancelled
The Office for Budget Responsibility (OBR) told the government that it will publish its official forecasts for the economy irrespective of the cancellation of the 6 November Budget. The OBR, which is legally required to release at least two official forecasts this financial year, running from last April to the end of March, told the Treasury that it would publish a version of its March forecasts updated for alterations in the measurement of student loans and a range of taxes on 7 November. The Budget has been cancelled because of the government’s decision to hold a general election in December.
FCA/PSA merger
Giants consolidate
The Fiat Chrysler group and the owner of French automobile manufacturer Peugeot both confirmed that they were in merger talks to create a company with shares worth over $47bn (£36.3bn). Confirmation of the discussions follows an aborted attempt by Fiat Chrysler Automobiles (FCA) and Renault to complete a tie-up earlier this year. The June attempt at a merger between FCA and Renault failed to materialise after the French government, a key Renault shareholder, withheld its support.
UK house prices have risen by an average of around £800 over the past 12 months, according to Nationwide, representing a sizeable slowdown in house price growth against recent history – in the same period to October 2016, prices increased by £9,100.
Annual house price growth remained below 1 per cent for the 11th consecutive month in October, at 0.4 per cent.“The underlying pace of growth appears to have slowed as a result of weaker global growth and an intensifying of Brexit uncertainty,” Nationwide’s chief economist Robert Gardner said.
