European stock markets slip
European stock markets have turned negative this afternoon – the UK’s FSTE 100 is now down 0.3%, led by the tech solutions group Halma, which is down by about 3%.
The French Cac 40 is down slightly by 0.04%, while the German Dax is down 0.09%. The Stoxx Europe 600 is down 0.4% – some of the worst performers today include the Dutch chip equipment company BE Semiconductor Industries, which has dropped 6.8%.
Billionaire Zuber Issa strikes deal to buy former Prax Group petrol stations
Zuber Issa, the Blackburn-based billionaire, has agreed a deal to buy 85 petrol stations previously owned by the collapsed Prax Group.
Issa’s EG On The Move has said it is planning further investment following the purchase of the sites, which are managed by independent operators. The company now owns around 285 locations across the UK.
Issa said in a statement:
Our business is built on strong partnerships with not only retail brand partners but now independent commission operators.
We are delighted to welcome the Prax network into our UK site portfolio. We look forward to working alongside each operator to build on the strengths of their businesses, helping make every site more effective, more competitive, and even more attractive to customers.”
Prax was once a huge oil group, which included a portfolio of petrol stations as well as an oil refinery that was a major supplier of the country’s fuel. However, it collapsed into administration last year.
EG’s investment in the former Prax sites could include enhancing motorist welfare services, expanding foodservice offers, exploring grocery and merchandise ranges, and introducing fast electric vehicle charging and car wash solutions, the company said.
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Novartis to buy UK cancer treatment group Myricx Bio in $1.5bn deal
Swiss pharmaceutical group Novartis has agreed to buy the British cancer treatment developer Myricx Bio, in a deal worth up to $1.5bn (£1.1bn).
Novartis, which is one of the biggest pharma companies in the world by sales, has said it will pay $1.1bn upfront, with a further $400m in potential milestone payments.
Myricx Bio, which is headquartered in London, was founded in 2019 after spinnning out from Imperial College and the Francis Crick Institute.
The company is developing a new class of antibody drug conjugates (ADCs), a cancer treatment that delivers more targeted treatment to affected cells.
It is the latest in a long series of takeovers by big pharma in smaller UK start-ups. Last year the US giant Merck paid $10bn for the London-based Verona, a respiratory drugs company. In January, Amgen bought the cancer biotech Dark Blue Therapeutics in a $840m deal.
Fiona Marshall, president of biomedical research at Novartis, said:
ADCs have become an important part of cancer treatment, but there remains a clear need for new payload mechanisms to overcome resistance and expand their impact for patients..
Myricx Bio has developed a promising NMTi payload platform with a differentiated mechanism that could broaden the use of ADCs across multiple tumor settings. This proposed acquisition reflects our strategy to scale innovative platforms, as we have with radioligand therapies, to deliver more durable, transformative treatments for patients.”
Shares in Novartis have slipped 0.7% this morning. The deal is expected to close in the second half of this year.
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Sky's £1.6bn takeover of ITV broadcasting will trigger some job losses, CEO says
Sky’s £1.6bn deal to takeover ITV’s broadcast and streaming business will result in some job losses, its chief executive Dana Strong has said.
While she did not give a number of possible job cuts, she told Sky News that there would reductions in commercial and corporate functions. She said:
There is some duplication in roles in corporate functions and commercial functions as there is when you bring, inevitably, two organisations together. But it’s the minority of the synergy.”
Sky has said it could generate £200m in annual cost savings as a result of the purchase.
Strong added:
We need to get a little bit closer to the businesses to look at where exactly the overlaps are.”
England win against Mexico boosts high street footfall 143% after midnight
England’s victory against Mexico in the World Cup last night was a win for the UK’s high streets too – footfall was up 143.6% year-on-year between midnight and 6am, according to figures from the monitoring company MRI Software (although it worth noting that there was no World Cup match at that time last year).
Footfall in market towns was up 175.5%, and in historic towns it was up 159.9%, it found.
Jenni Matthews, a retail analyst at MRI, said:
For the hospitality sector, this is exactly the kind of result they’ll have been hoping for. At a time when consumers remain selective about where they spend, the World Cup is proving to be a powerful footfall driver, creating a welcome boost for the night-time, and local economy.
As England prepares for its next game, we expect these uplifts to gather momentum, especially as they enter the quarter finals. For retailers and operators, the game plan is clear: align staffing, promotions and trading hours with key matches to make the most of the increased footfall, longer dwell times and celebratory spending that major sporting moments can bring.
England’s next match will be in the quarter-finals against Norway in Miami this Saturday at 10pm BST.
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More detail coming from the Society of Motor Manufacturers on an 11.4% rise in new car registrations in June – there were 213,166 units sold in June, the best performance for the month since 2019.
The rise was “driven entirely by electrified vehicles”, SMMT said, “thanks to ongoing manufacturer investment in a wide choice of models and powertrains providing lower and zero emission mobility, as well as an expanded pool of brands now operating in the UK.”
Rob Wood, chief UK economist at Pantheon Macroeconomics, said the rise in car registrations shows that household consumption has been broadly resilient to the energy price shock. He said:
The money and credit data continue to support the picture that consumers are willing to reduce their saving rate to smooth consumption. Replacement demand for vehicles also likely remains strong too. So, we think that car registrations will continue to rise slowly over the coming year.
Demand for electric and plug-in hybrid vehicles continues to support overall registration numbers. Battery-powered electric vehicle registrations rose by 35% year-over-year in June, up from a 34.2% gain in May, while hybrid vehicle registrations rose by 25.3%, after posting a 23.9% gain in May.
Registrations of combustion-powered vehicles continue to shrink, by contrast, with diesel-fuelled car registrations tanking by 24.4% year-over-year, and petrol-powered vehicle registrations falling 4.0%.
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UK construction downturn eases slightly in June
The UK’s construction sector contracted again in June, although at a slower rate compared with a six-year low in May.
The S&P Global construction purchasing managers’ index (PMI) rose to 38.4 in June, compared with 38.2 in May. Any reading below 50 marks a contraction.
Tim Moore, economics director at S&P Global Market Intelligence, said there had been a softer reduction in commercial building work.
House building and civil engineering activity nonetheless registered sharper declines than in May, with the latter seeing its weakest performance since the start of the pandemic.
New work decreased to the least marked extent since March, despite widespread reports of challenging market conditions. Construction companies commented on headwinds from subdued housing sales, elevated interest rates and squeezed consumer finances, alongside cutbacks to business investment plans. Some firms noted delays with infrastructure work and fewer public sector tender opportunities, but energy markets were cited as an area of positivity.
Supply chain challenges appear to have receded, with vendor delivery times lengthening to the smallest degree since March. Construction companies also reported a slowdown in input price inflation from the near four-year peak seen in May.
June data indicated a recovery in business activity expectations across the construction sector since May, although confidence levels remain well short of historic trends. A number of survey respondents suggested recent new contract awards and an expected improvement in broader market conditions had underpinned optimism.”
Elsewhere this morning, new data shows that German industrial orders rose by more than expected in May, up 1.9% compared with the previous month. Analysts had been expecting a rise of 1.5%.
Carsten Brzeski, global head of macro at the broker ING, said the rise suggested that parts of German inudstry are still benefiting from the re-channelling of international orders due to the war in the Middle East.
He said:
It sounds counterintuitive, but the conflict has provided a boost to parts of German manufacturing. The initial support came from stockpiling and more recently, some companies have benefited from Asian competitors being more exposed to disruptions affecting trade routes through the strait of Hormuz.
However, despite today’s encouraging data, order books are recovering only gradually. After last year’s rebound, mainly driven by strong demand in the defence industry, order books have been struggling to really gain more momentum this year. While industrial orders increased by more than 4% month-on-month between September and December last year, they were up by some 1% every month this year; at least when taking out the devastating January number (-11.5% month-on-month).
All in all, despite initial fears that the conflict in the Middle East would trigger new supply chain disruptions, German industry appears to have escaped with little more than a black eye.
UK new car registrations up 11% in June
New car registrations were up 11% in June in the UK compared with last year, according to preliminary figures from the Society of Motor Manufacturers and Traders (SMMT).
Battery electric cars made up for about 30% of the market, it found.
Ian Plummer, chief customer officer of Autotrader, said:
Battery electrics are now taking a third of the new car market, driven by intensifying competition and rising consumer interest in plug-in cars. New entrant brands are dominating in the hybrid category and serious players in electric vehicles as well, forcing established manufacturers to respond by sharpening pricing and accelerating innovation. That should help lower the cost of switching and tempt more buyers into the new car market.
That said, it’s clear the wider context remains fragile, with ongoing uncertainty around policy, incentives and wider external pressures. Whoever is leading the next government needs to prioritise consistency and clarity to maintain car buyer confidence. Interest in EVs continues to grow, but we need to sustain this demand over the longer term.”
European stock markets are relatively quiet this morning: the UK’s blue chip FTSE 100 is an outlier, up by about 0.3%. But the Stoxx Europe 600, which tracks the biggest companies across the continent, is up by just 0.02%.
Oil prices are down this morning. Brent crude, the international benchmark, is down 0.4%, as tankers continue to pass through the strait of Hormuz. The key shipping channel had been blocked as a result of the US-Israel war with Iran.
The oil cartel Opec also agreed on Sunday to further increase their output targets by 188,000 barrels per day from August, following similar increases in June and July.
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EasyJet shares jump 10% after signalling intention to accept £5.5bn takeover offer
Shares in the airline easyJet have jumped 10% this morning to a four-yeah high, after it said last night that it intends to accept a £5.5bn takeover offer by the US investment firm Castlelake.
The companies announced an agreement in principle on Sunday evening, and requested an extension to a deadline to complete the deal formally. The agreement came after weeks of negotiations and several rejected offers.
The FTSE 250 airline said it was minded to accept an offer at £6.90 a share. If the deal completes, it could be worth nearly £800m for easyJet’s founder, Stelios Haji-Ioannou, who still owns more than 15% of the company along with his family.
EasyJet had rejected an offer of £6.50 a share 10 days earlier, saying it substantially undervalued the business. The first bid was worth £5.60 a share.
Its shares are now trading at £6.16 a share. They were priced at £5.58 when stock markets closed on Friday.
Susannah Streeter, chief investment strategist at the broker Wealth Club, notes easyJet has endured a difficult few months amid the conflict in Iran and weak consumer confidence.
Those pressures depressed the airline’s share price and created an opportunity that Castlelake clearly believes the market has mispriced. The private equity firm, which has deep expertise in aircraft leasing and aviation finance, appears to see long-term value in easyJet’s modern fleet, strong balance sheet and growing holidays business.
Private equity ownership would almost certainly usher in a new phase for easyJet. While being outside the glare of the public markets could give management greater freedom to invest for the long term, private equity investors are typically laser-focused on driving efficiency and boosting returns. That can often mean a fresh look at every aspect of the business - from staffing levels and head office costs to supplier contracts and operational spending.
…The bid is also the latest example of UK-listed companies becoming attractive targets for overseas buyers, reinforcing concerns about the City of London’s shrinking role as a home for publicly traded businesses.
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Ocado co-founder Tim Steiner to step down as CEO in 2028 amid succession debate
The online grocer Ocado has said its founder and chief executive Tim Steiner will remain in post until at least 2028.
He will then “continue to be actively involved with the company through 2029” in an advisory “founder role”, Ocado said in a statement.
The board has been searching for a successor for Steiner, although some investors have called for the chair Adam Warby to resign instead.
Succession planning is expected to conclude around the start of Ocado’s 2028 financial year (which will begin in December 2027). The company said on Monday:
The board and Tim have been engaged in a thoughtful and collaborative succession planning process designed to support Ocado’s long-term success.
Steiner co-founded Ocado in 2000 with Jason Gissing and Jonathan Faiman in a bid to revolutionise grocery shopping through an online platform. Its share price ballooned during the pandemic, with its market value rising above £20bn – but its shares have since fallen more than 90% as sales have slowed and investors have lost confidence in its ability to sell its software to other retailers.
Analysts at the broker Peel Hunt write this morning:
This is perhaps a reaction to the reports in the FT late last week that a quarter of shareholders were now threatening to oust the chair too. Why the drawn-out timeline? Given the calibre of internal talent and an existing deputy CEO, 18 more months as CEO plus 12+ months as founder feels long.
Whilst we are not privy to what is inside their heads, we would not be surprised if the company has structured it this way to allow for the share price to react positively to news flow over that time period (including turning cash flow positive during 4Q26, and then full year FY27) and perhaps see shareholders change their views of Steiner by that point. Also, it will not be the first time that an ousted CEO/founder has been brought back in as CEO later.
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Sky, which is owned by the US media and telecoms giant Comcast, has been in talks since at least last November to buy ITV’s media and entertainment business.
The deal will include the ITVX platform as well as its free-to-air channels, but not ITV’s studio operation. All of ITV’s public service commitments will be maintained under the deal.
The takeover is expected to create the UK’s biggest commercial broadcaster, as traditional media companies adapt to the rise of US streaming giants such as Netflix and YouTube.
Introduction: Sky owner agrees to buy ITV's broadcasting business in £1.6bn deal
Happy Monday and good morning to those of you who had a late night celebrating England’s win in Mexico.
And to kick off the week: ITV has agreed to sell its broadcasting and streaming business to Sky in a £1.6bn deal, in a move that is expected to create the UK’s biggest commercial broadcaster.
The long-awaited deal will include a £1.2bn cash element, which will be payable after the deal completes, as well as the contribution of Sky’s Love Productions business (which makes The Great British Bake Off), for an agreed enterprise value of £200m. Sky will pay an additional £200m in cash, subject to meeting advertising targets in 2027.
ITV said the deal will return around £950m in cash to its shareholders, or 25p per share.
The companies have also agreed to spend at least £2.1bn on content supply from 2028 to 2032. The deal is expected to complete in the second half of next year.
ITV chair Andrew Cosslett said:
At a headline value of up to £1.6bn, the sale of ITV’s M&E division will deliver a significant cash return to shareholders. Crucially, the transaction also unlocks the value of ITV Studios which post completion will be a distinctive pure-play global content business, with a strong track record of success and excellent prospects, further underpinned by a long-term partnership with ITV M&E and Sky.”
Sky chief executive Dana Strong said:
This is a defining moment for British media and an opportunity to build a stronger future for two of the UK’s most loved and trusted brands. We have huge respect for the transformation the ITV team has delivered, particularly its successful move into streaming through ITVX, which has brought fantastic British content to millions of viewers across the UK.
Bringing Sky and ITV Media & Entertainment together combines the very best of free-to-air television, pay TV and streaming, ensuring viewers across the UK continue to enjoy outstanding British programming in a rapidly changing world.
ITV will remain a public service broadcaster at the heart of British life, and we’re excited about the future we can build together.”
Meanwhile last night, the airline easyJet has said it intends to accept a £5.5bn takeover offer by the US investment firm Castlelake that would take Britain’s biggest low-cost carrier private.
The companies announced an agreement in principle on Sunday evening in a statement, and requested an extension to a deadline to complete the deal formally. The agreement came after weeks of negotiations and several rejected offers.
The agenda
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9.30am BST: UK construction PMI
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2.30pm and 3pm BST: US service PMI reports
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3.30pm BST: Public Accounts Committee session – “Will £9bn lost to Covid fraud and error ever be recovered by the government?”
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5.45pm: Catherine L Mann speaking on a panel at the Royal Economic Society 2026 conference ‘Trusted, accessible and connected? The future of UK economic data’, in Newcastle
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