Markets are priced for optimism, but people should be relatively cautious: Man Group
Mark Jones, deputy CEO of Man Group, discusses the outlook for markets in 2023 in the context of what the U.S. Federal Reserve might do.
Stocks on the move: Chr. Hansen up 18%, Novozymes down 15% after merger announcement
New challenges mean timing for CEO change is right, says Maersk’s incoming CEO
Vincent Clerc, incoming CEO of the Danish freight giant, says “after two years of bumper profits and supply chain disruptions because of the pandemic, we have a different set of circumstances.”
Microsoft buys near 4% stake in London Stock Exchange and launches 10-year partnership
U.S. tech giant Microsoft on Monday announced a 10-year partnership with the London Stock Exchange Group and took a near 4% stake in the U.K. bourse operator.
The partnership involves next-generation data and analytics, as well as cloud infrastructure solutions, according to a statement by the LSEG. It involves a new data infrastructure for the London exchange and analytics and modelling solutions with Microsoft Azure, AI, and Microsoft Teams.
– Matt Clinch
Stocks on the move: Chr. Hansen up 22%, Novozymes down 13% after merger announcement
Bioscience firms Novozymes and Chr. Hansen to merge in biggest-ever Danish deal
A researcher tests enzymes at a Novozymes facility in Bagsvard, Denmark.
Bloomberg | Bloomberg | Getty Images
Biotechnology firms Novozymes and Chr. Hansen agreed to combine in what will be the biggest-ever merger between two Danish companies.
The merger, announced in a joint statement Monday, will see the dissolution of Chr. Hansen and is expected to complete in the fourth quarter of 2023.
The new biosolutions group will have annual revenues of approximately 3.5 billion euros ($3.7 billion), the companies said.
– Elliot Smith
UK economy grows 0.5% in October
The U.K. economy grew by 0.5% month-on-month in October, slightly ahead of a Reuters poll projecting a 0.4% rebound from September’s 0.6% contraction.
The previous month’s figures were affected by a one-off public holiday to mark the funeral of Queen Elizabeth II.
The Bank of England projects that the economy is already in a recession that could endure throughout 2023.
Jeremy Batstone-Carr, European Strategist at Raymond James, said Monday’s figures from the Office for National Statistics “flatter to deceive, concealing an otherwise-shrinking economy.”
“Government spending, residential investment, and a boost from net trade have sugar coated GDP in Q3, but that coating is now dissolving as the housing market and global economy weakens,” Batstone-Carr said.
“The economy is no longer teetering on the edge of recession; it is fully in one. We are now feeling the pain of both relentless inflation and interest rate rises, which are both crippling business and household spending. The Bank of England’s Monetary Policy Committee is divided on how sharply to rise base rates, but it looks increasingly likely we will be living with another 0.5% increase by the end of this week.”
CNBC Pro: Shares of this under-the-radar global miner are set to rally 50%, analyst says
Shares in a little-known London-listed miner are set to rise by 50%, according to Ben Davis, a mining analyst at Liberum Capital.
The company, which extracts metals such as platinum, palladium, and chrome, also offers an 8% dividend yield.
CNBC Pro subscribers can read more here.
— Ganesh Rao
CNBC Pro: Dan Niles is betting the S&P 500 will hit a new low in 2023. Here’s how he is trading it
Dan Niles’ Satori Fund is beating the market this year. He shares what’s behind the outperformance and how he’s trading the market as recession looms.
Pro subscribers can read more here.
— Zavier Ong
European markets: Here are the opening calls
European markets are heading for a lower open on Monday as investors look ahead to the next U.S. Federal Reserve meeting.
The U.K.’s FTSE index is expected to open 17 points lower at 7,457, Germany’s DAX 71 points lower at 14,290, France’s CAC down 31 points at 6,640 and Italy’s FTSE MIB down 134 points at 24,120, according to data from IG.
There are no major earnings. Data releases include the U.K.’s preliminary third quarter gross domestic product figures.
— Holly Ellyatt
