Vodafone Malta merger talks end without deal, Berkeley builds more homes than expected
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The FTSE 100 is expected to open 13 points higher on Friday, having closed down 0.37% at 7,320.75 on Thursday.
Stocks to watch
Vodafone Group confirmed the end of its merger talks with Melita on Friday, putting the blame on regulators in Malta. The FTSE 100 communications giant, along with Melita’s owners Apax Partners Midmarket and Fortino Capital, had announced their intention to combine Vodafone Malta with Melita to create a fully integrated communications company in Malta, back in May.
International Airlines Group announced on Friday that its subsidiary, British Airways, has decided - following consultation with its trade unions and employees - to launch a flexible benefits scheme incorporating a new defined contribution pension scheme. The FTSE 100 company said the scheme will open on 1 April next year, replacing the main UK defined benefit scheme - the New Airways Pension Scheme - and the main UK defined contribution scheme, the British Airways Retirement Plan (BARP).
Berkeley Group built more houses than expected in the first half of the year, generated piles of extra cash and upped its profits guidance for the coming few years. The housebuilder said it now would generate pre-tax profit of £3.3bn in the five years 2021, from the £3.0bn indicated before.
Newspaper round-up
Hitachi could stop funding the development of a new nuclear plant on Anglesey unless the government agrees a viable financial support package by the middle of next year, the head of the project has warned. Duncan Hawthorne, chief executive of the Horizon venture, said that its Japanese owners had already spent £2 billion and would not keep “throwing a bottomless pit of cash at a project without some certainty it can get to a successful conclusion”. - The Times
Businesses are struggling to find the skilled workers they need, stalling firms’ growth and holding up wage increases, jobs market data has revealed. Workers won permanent jobs at the quickest pace for three months in November, according to the Report on Jobs, compiled by IHS Markit on behalf of the Recruitment and Employment Confederation. - Telegraph
More than half of the European Union’s 619 coal-fired power stations are losing money, according to a new report. As a result, the industry’s slow plans for shutdowns will lead to €22bn in losses by 2030 if the EU fulfils its pledge to tackle climate change, the report warns. - Guardian
US close
Wall Street finished higher on Thursday, with the Nasdaq making gains amid a flurry of share buyback announcements in the wider market and another torrid run higher in Bitcoin.
The Dow Jones Industrial Average closed up 0.29% at 24,211.48, the S&P 500 was ahead 0.29% as well at 2,636.98, and the Nasdaq 100 added 0.37% to settle at 6,316,28.
“A lot has been made of the recent tech sell-off but it also needs to be put into perspective,” said CMC Markets UK's Michael Hewson earlier in the day.
“Despite recent price falls companies like Facebook, Alphabet, Apple, Amazon and Microsoft are still over 40% higher year to date, and yesterday we did see some light buying return."
Late on Wednesday, the Republican-led Senate agreed to begin formal negotiations with the House of Representatives on tax reform, sparking hopes that the final tax overhaul will be done by the self-imposed deadline of 22 December.
The week before, the House and Senate passed their own versions of the tax reform bill and now both need to agree on a final bill for President Donald Trump to sign.