After a tough week in which shares have sold off some positive economic data from the UK economy, which suggests a post-election bounce could be underway has lit the touchpaper under UK shares this morning. Click here for The Trader Nicole Elliott's latest thoughts on the markets.
KEY STORIES:
The CMA has opened an investigation into the combination between Just Eat (JE.) and Takeaway.com, delaying the deal becoming unconditional by a week. The intervention is still in the very early stages - the CMA is inviting comments until February 6th - and Takeaway.com says the combined group will begin trading on the Amsterdam stock exchange on February 3. Still, the increased risk has led shares in Just Eat to drop by 3 per cent this morning.
OTHER COMPANY NEWS:
Like-for-like sales at Marston’s (MARS) managed and franchise pubs increased 1 per cent in the 16-week period to 18 January, as strong trading over the festive period was held back by weaker sales in the rain-hit months of early December. However, the recently announced 6.2 per cent rise in the national minimum wage is expected to add between £2m and £3m to costs in the second half of the year, and volumes for the group’s beer company are down. Chief executive Ralph Findlay described the near-term trading outlook as encouraging, and disposal plans have been ramped up, but shares are still down 4 per cent today.
As Boris Johnson prepares to make a decision on whether HS2 should proceed, a National Audit Office (NAO) review has concluded that the department of transport and HS2 Ltd underestimated the risks and complexity of the project when calculating its costs and delivery dates. The government’s latest estimated price tag of up to £88bn is 58 per cent more that the available funding agreed with the Treasury. The NAO believes it is not yet possible to determine with any certainty what the final cost of the programme will be. The watchdog also said that if the start of construction is delayed beyond March this year, the opening date of phase one could be placed in jeopardy. Phase one is not expected to be fully operational until 2036, a decade later than planned.
