Rentokil Initial takes on US mosquito control firm, revenue and profit rise at Dignity
London open
The FTSE 100 is expected to open 33 points higher on Monday, having closed down 0.68% at 7,432.99 on Friday.
Stocks to watch
Rentokil Initial has acquired North America’s largest provider of mosquito control services, Vector Disease Acquisition, for an undisclosed consideration, it announced on Monday. At the same time, the FTSE 100 company lifted its mergers and acquisitions pipeline guidance for the second half to $100m, saying prospects for further purchases remained “very strong”.
Vodafone announced on Monday that its India operation and Idea Cellular have separately agreed to sell their respective standalone tower businesses in India to ATC Telecom Infrastructure for an aggregate enterprise value of INR 78.5bn. The transaction follows the Vodafone India and Idea merger announcement on 20 March.
Funeral services provider Dignity reported an increase in revenue and profit in the third quarter, even as the number of deaths was broadly flat. In the 39 week period to 29 September, operating profit rose 5% to £79.4m on revenue of £243.9m, up from £229.3m, as the number of deaths ticked up just 1% to 440,000. The company said it continues to see significant competition across the business.
Housebuilder Taylor Wimpey has reported a slowing in its sales rate in the second half of the year but said it still expected full year results to hit their targets. For the second half of 2017, the company has sold 0.71 sales per outlet per week, taking the year-to-date rate to 0.81 from 0.87 in the first half.
Newspaper round-up
More than 3,000 potential conflicts of interests have been disclosed by almost half of Bank of England employees in the wake of the Charlotte Hogg debacle. The central bank was notified of 3,333 “close personal relationships” by 1,924 employees as of the end of last month, such as with City firms, Bank contractors and MPs, figures obtained under the Freedom of Information Act show. - The Times
Downing Street appears ready to concede that trade deal negotiations will not be complete before Brexit, in a move that could affect the longevity of Theresa May’s premiership. One of Mrs May’s closest allies suggested at a private meeting that the future trade deal with the EU might not be finalised before Britain left the EU on March 29, 2019. - The Times
The credit markets have sharp antennae. They issued early warning alerts four to eight weeks before each episode of stress over the last 20 years, although with several false alarms along the way. The shake-out in the US junk bond market last week had an ominous feel for traders and may finally mark the top of the post-Lehman boom in corporate credit. The exuberant reach for yield is nearing its limits. - Telegraph
Employees are resisting the urge to ask for wage increases despite years of weak pay growth because they believe their employers cannot afford rises. Almost four in ten companies say they are under “no pressure” whatsoever from their employees, according to a labour market survey published with other research that paints a gloomy outlook for the economy. - The Times
Employers risk being sued if they think that they can auto-enrol employees into a pension scheme and then forget about it, a former pensions minister has warned. Sir Steve Webb, the Liberal Democrat pensions chief in the coalition government, said that employers needed to provide a continuing service to employees or could face compensation claims in future years if things went wrong. - The Times
The high street’s hope for a bumper Black Friday might not be enough to rescue pre-Christmas trading after a dismal start to its end of year sales. Gloomy spending data for October has already taken the shine off the start of the “golden quarter” for retailer profits after shoppers stayed away from high street stores and spending fell at its fastest rate in just over four years. - Telegraph
US close
Markets in the US closed in the red on Friday, with the Dow Jones Industrial Average closing down 0.17% at 23,422.21, the S&P 500 off 0.09% at 2,582.30 and the Nasdaq 100 slipping 0.05% to 6,309.07.