Aston Martin and the new SUV later this year

The British luxury car manufacturer Aston Martin (AML) is launching its first ever sport utility vehicle later this year. The new car, called DBX, will be important to the company after the weak demand in the UK and in Europe due to growing economic concerns and Brexit.

Aston Martin, which had its IPO last October in London Stock Exchange, is now trading below 5  pounds, while the IPO-price was 19 pounds per share, valuing the company at 4,3 billion pounds at that time.

The company was founded more than one hundred years ago by founders Lionel Martin and Robert Bamford in 1913 in a small London workshop. According to the company strategy Aston Martin will launch full EV capability by 2022. The aim is also to be the British car company that create the most beautiful and accomplished automotive art in the world.

The London Stock Exchange closed today down 1,13 % to 7067 points, while in Germany the Dax-index closed down 0,70 % to 11 412 points and in France the CAC 40 -index closed down 0,27 % to 5236 points.

 

 

 

 

 

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LSE and Refinitiv – all share transaction

The London Stock Exchange (LSE) has today announced that it has agreed to acquire the Refinitiv business in all share transaction. The deal, the economic value of 27 billion dollars, will form a new global data and analytics company with combined annual revenue of 6 billion pounds.

The Refinitiv shareholders will get 37 % of the economic interest in LSEG and less than 30 % of the total coming rights of LSEG. The company will has its headquarter in London and will remain in compliance with the UK Corporate Governance Code.

The Stock Exchange says that the annual growth rate for the first three years would be 5-7 % annually and would mean also synergies in the cost savings.

The shareholder meeting of the transactions is expected to before the year end and the completion of the deal is expected to occur during the second half of 2020.

The shares of London Stock Exchange rose 6 % to 7024 pounds in today’s trading.

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LSE confirms the Refinitiv talks

The London Stock Exchange (LSE) confirms the merger talks with Refinitiv. According to the company press release on Saturday, the LSE says that it is in talks with Refinitiv Shareholders about the possible acquisition of Refinitiv.

There can be no certainty that discussions between the parties will progress or that a transaction will be forthcoming, the LSE says.

The Stock Exchange says that the total enterprise value of the deal would be about 27 billion dollars and it would mean that new LSE shares would be issued. The parties estimate that the transaction would mean that Refinitiv Shareholders would get less of 30 % of the total voting rights of LSEG.

– LSEG believes that a potential transaction would offer significant customer benefits across the full range of LSEG’s businesses. The combined business would create a leading, UK headquartered, global financial market infrastructure provider with significant multi-asset capital markets capabilities, a leading data and analytics business and a broad post-trade offering, well positioned for future growth in an evolving landscape, the stock exchange says.

The Stock Exchanges reminds that the transaction remain a subject to the LSEG Board and that there is no certainty that the transaction would happen.

Business Finance

The London Stock Exchange and Refinitiv in merger talks – FT

The London Stock Exchange Group is in merger talks with Refinitiv, writes Financial Times today. According to the newspaper, the deal would create a global exchanges and data powerhouse.

According to FT, the deal is to be announced as soon as next week. Refinitiv, former part of Thomson Reuters, is 55 % owned by private equity company Blackstone. The deal in January 2018 valued the total Financial & Risk Unit (now called Refinitiv) at 20 billion dollars.

Business Finance

Shanghai – London stock exchange listing co-operation launched

The Shanghai-London Stock Connect (the Stock Connect) was officially launched on 17th June in London. The co-operation means that listed companies are allowed to list  depositary receipts on the other exchange.

The China Securities Regulatory Commission (CSRC) and the UK Financial Conduct Authority (FCA) have agreed to closely collaborate on cross-border supervision and enforcement. The first Global Depositary Receipt (GDR) under the Stock Connect, issued by SSE-listed Huatai Securities Co., Ltd., has also been listed for trading on the LSE on the same day.

  - By expanding channels for bilateral financing and investments, the Shanghai-London Stock Connect has far-reaching significance in promoting capital markets development in both countries and supporting Shanghai’s endeavors to build an international financial center, the Shanghai Stock Exchanges said in the press release.

  - Moving forward, the CSRC is committed to pushing ahead with the reform and opening-up of China’s capital markets in accordance with the directives of the CPC Central Committee and the State Council. The CSRC will work closely with relevant regulatory authorities of the UK to safeguard smooth operations of the Stock Connect and reinforce investor protection in the interests of sound and steady development of the capital markets, the company says.

Business Finance

Burberry Group revenue 2,7 billion pounds

The UK luxury company Burberry (BRBY) reported preliminary fiscal figures in London today. According to the release, the 12 month revenue was 2,7 billion pounds, nearly at the same level as year before. The operating profit increased by 7 % to 438 million pounds.

– We made excellent progress in the first year of our plan to transform Burberry, while at the same time delivering financial performance in line with expectations. Riccardo Tisci’s first collections arrived in stores at the end of February and the initial reaction from customers is very encouraging. The implementation of our plan is on track, we are energised by the early results and we confirm our outlook for fiscal 2020, the CEO Marco Gobbetti said in the release.

Burberry said that the company continued to focus on financial and operational discipline.

– We delivered cumulative cost savings of  105 million pounds, ahead of plan, which was largely reinvested into consumer facing activities to support the transformation. In addition, we expanded the scope of our restructuring programme to increase our target from 120 million to 135 million pounds by the end of fiscal 2022 as we develop Burberry Business Services, the company said.

Burberry also was rated to the leading luxury brand in the 2018 Dow Jones Sustainability Index. The factors behind were the circular thinking of clothes and minimising the unnecessary use of plastics in the supply chain.

The company is listed on the London Stock Exchange since 2002, when the company had its IPO. The share price declined after the report by 5,91 % to 1808 pounds.

 

 

Business Finance

LSE Turquoise: Euro-trading to Amsterdam in no-deal Brexit

The London Stock Exchange has today published its plans in the possible situation of no-deal Brexit. This would mean that the LSE Groups´s pan-European platform Turquoise  would sift its euro-denominated trading to its Amsterdam hub. The stock exchange revealed its plans today if the UK leaves the EU without a deal at the end of the week on Friday 12th April.

According to Reuters, British, Swiss and U.S. shares would remain on its existing platform in London.

 

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