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(Bloomberg) — Businesses will be looking closely this week for some of the uncertainty that has plagued the last few weeks to be cleared up. On Thursday, the Bank of England may deliver its biggest interest-rate hike in more than 30 years, impacting lending rates, while more information may emerge on the trajectory of Rishi Sunak’s economic policy. That certainty is badly needed with data released this morning showing business confidence is at its lowest since March 2021, when the UK was in a coronavirus lockdown. What a scary thought on halloween.
Here’s the key business news from London this morning:
In The City
International Distributions Services Plc: The UK’s Business Secretary won’t take any further action under a national security law regarding the possibility that Czech billionaire Daniel Kretinsky could increase his stake in the owner of Royal Mail.
- The Business Secretary had “called-in” the deal under the act, amid concerns that Kretinsky’s company Vesa Equity Investment could increase his stake in the postal service company to more than 25%
NextEnergy Solar Fund Ltd: The investment fund has bought the development rights, permits, and initial grid milestones for a portfolio of battery storage projects and grid connections in the East of England for £32.5 million.
- From 2025, when the system is expected to be energised, the company says it will contribute to the UK’s energy independence and help accelerate the increased penetration of renewable energy in the UK
Bulb Energy Ltd: Over the weekend, the UK announced it had approved a deal for Octopus Energy Ltd to buy the failed supplier that will see Bulb’s 1.5 million customers transferred to Octopus.
In Westminster
Rishi Sunak’s economic policy will face scrutiny this week as the Bank of England looks set to deliver what could be its biggest interest-rate hike in more than 30 years. Meanwhile, questions continue to swirl over security breaches by Home Secretary Suella Braverman, calling into doubt Sunak’s political judgment in reappointing her to the position.
Britain risks a “mass exodus” of workers from health and social care and other services supported by the government because of planned spending cuts, the Trades Union Congress said.
That’s as business confidence dropped to its lowest since March 2021 when Britain was struggling with a coronavirus lockdown.
In Case You Missed It
C.S. Venkatakrishnan concedes his first twelve months as Barclays Plc chief executive officer have been an education. In his first TV interview since taking the helm, Venkat spoke exclusively to Francine Lacqua on Bloomberg’s Front Row:
Thermo Fisher Scientific Inc., which makes scientific instruments and helps manufacture drugs, is nearing a deal to buy Birmingham-based diagnostic firm Binding Site for more than £2 billion from private equity fund Nordic Capital, people familiar with the matter told Bloomberg.
Looking Ahead
BP Plc is expected to post sequentially lower but still strong third-quarter results tomorrow, supported by higher gas realisations and broadly flat upstream production. The energy giant’s $4.1 billion cash deal to buy US biogas company Archaea might have a chilling effect on BP’s share buyback program for the final quarter of the year, Bloomberg Intelligence analyst Will Hares says.
For a news fix when the day is done, sign up to The Readout with Allegra Stratton, to make sense of the day’s events.
–With assistance from Ryan Hesketh.
©2022 Bloomberg L.P.
