Pearson sells US schools operation, Reckitt Benckiser ends year on a high

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The FTSE 100 is expected to open five points lower on Monday, having closed up 0.55% at 7,236.68 on Friday.

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Pearson on Monday said it had sold its its US K12 courseware business to Nexus Capital Management for $250m (£193.6m). Total proceeds comprise an initial cash payment of $25m and an unconditional vendor note for $225m expected to be repaid in three to seven years. After repayment of the vendor note, Pearson would be entitled to 20% of all future cash flows to equity holders and 20% of net proceeds in the event the business is sold.

Reckitt Benckiser finished 2018 strongly with growth of 4% in the final quarter and the maker of consumer brands ranging from Dettol to Strepsils said it expects that momentum to continue into 2019. Net revenue of £12.6bn for calendar year was a 10% improvement on the previous period, with adjusted net income up 11% to £2.4bn and adjusted earnings per share improving 7% to 339.9p.

Coca‑Cola HBC said it had bought Serbian confectionery business Bambi for €260m (£227m). The company said on Monday it had bought the company from funds advised by Mid Europa Partners, a buyout investor in Central and Eastern Europe. Completion of the acquisition is expected in the second quarter of 2019. Bambi, established in 1967, makes a range of products including biscuits, wafers and savoury snacks. The company's brands include Bambi, Plazma, Wellness, Zlatni Pek, and Josh.

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Theresa May is braced for “howls of rage” as ministers finalise tariffs that would apply if there is no Brexit deal. Liam Fox, the international trade secretary, wants a move to zero tariffs in as many areas as possible, but other ministers are demanding protection for producers, including farmers, who would struggle to compete with cheaper imports from outside the EU. - The Times

Growing skills shortages in the UK jobs market are starting to drive up wages, according to a survey, as more companies across the country report difficulties finding staff. In a sign that workers’ pay is gradually rising after a “lost decade” of sluggish growth since the financial crisis, private-sector employers said they were expecting to award annual pay increases of about 2.5% on average this year, up from 2% at the end of last year. - Telegraph

Veganuary has been blamed for poor performance in pubs and restaurants last month, with sales slumping after a strong Christmas. Like-for-like sales slid 1.8pc compared with last January, which experts said was a big disappointment given the comparative lack of snow or significantly bad weather. - Telegraph

US close

Wall Street’s main indices all finished in the green on Friday, with the Dow Jones Industrial Average up 1.33% at 25,883.25, the S&P 500 rising 1.09% to 2,775.60, and the Nasdaq 100 gaining 0.47% to 7,055.18.