Yahoo Finance FTSE 100 Live 14 October: Gambling stocks slide, Mulberry backer rejects new Frasers bid
Gambling sector braced for potential tax raid
09:29
Shares in Entain, 888 owner Evoke and Flutter Entertainment have fallen sharply after the Guardian reported on Friday evening that the Treasury is considering whether to double some of the taxes levied on online casinos and bookmakers.
The pre-Budget speculation over a potential £3 billion tax raid on the gambling industry follows proposals put forward by two think tanks.
They include the Social Market Foundation’s recommendation to double taxes on online gambling companies from 21% to 42%.
City bank Jefferies said the plans apparently under review would all but wipe out bookmaker profitability in the UK, based on its own estimates.
However, it added that the extent of the proposals seems unrealistic.
Jefferies said it would expect operators to respond through reduced marketing, cutting sports sponsorship and offering less favourable odds to customers.
The bank added: “UK bookmakers will cite a threat to the ongoing financial viability of many retail and online bookmakers; the likely increase in black market activity; and, the potential damage to the sports ecosystem, in particular horse racing.
“Smaller-scale bookmakers are less able to absorb tax rises, with market share likely to move to the larger operators.”
FTSE 250's TI Fluid Systems backs new approach
09:01 , Graeme Evans
The FTSE 250 index is on the brink of losing another firm after TI Fluid Systems said today it intended to back a takeover proposal worth almost £1 billion.
The supplier of automotive fluid systems, including brake and fuel lines, has received five approaches from fellow car industry supplier ABC Technologies.
The latest by Canada-based ABC, which is backed by Apollo Global Management, is at 200p a share compared with its first rejected approach at 165p.
While confident in its strategy, TI’s board has told ABC it is minded to support a firm proposal should one be tabled before a bid deadline of 8 November.
The all-cash move cash is a 53.4% premium to TI Fluid’s closing price of 130.4p on 21 August, prior to ABC’s first proposal. Shares today rose 19% or 29.4p to 181.6p.
This year’s FTSE 250 bid targets have included Centamin, International Distribution Services and Britvic.
Gambling stocks hit by tax raid fears
08:32 , Graeme Evans
Gambling stocks Entain, Evoke and Flutter Entertainment today fell sharply amid speculation that Rachel Reeves is considering a £3 billion tax raid on the sector.
According to the Guardian, Treasury officials are understood to be weighing up proposals to double some of the taxes levied on online casinos and bookmakers.
The FTSE 100-listed shares of Ladbrokes owner Entain slumped 13% or 100.8p to 666.2p, while 888 business Evoke fell 14% or 8.9p to 56.1p. The dual-listed Flutter Entertainment reversed 7% or 1370p to 17,170p.
FTSE 100 lower amid Rolls-Royce selling, Bunzl upgrade boost
08:21 , Graeme Evans
The FTSE 100 index has drifted 12.41 points to 8241.24, with Rolls-Royce down 9.1p to 528.1p and British Airways owner IAG off 1.8p to 196.5p.
Traders are expecting a quiet session as Columbus Day means US bond markets are closed, although Wall Street’s equity markets remain open.
Distribution services group Bunzl rose 42p to 3508p after JPMorgan lifted its rating to Overweight. Thermal engineering firm Spirax added 40p to 6895p, boosted by the Buy stance of Peel Hunt.
Compass dipped 11p to 2420p after analysts at Citi reduced the contract catering group to Neutral.
The FTSE 250 index fell 40.02 points to 20,724.91, with Page Group down 3.5p to 366.9p after reporting more tough trading conditions in the third quarter.
Confidence low as Page reports another tough quarter
07:44 , Graeme Evans
Recruitment firm Page Group said trading conditions continued to be challenging after it reported a 16.7% drop in gross profit for the third quarter.
Chief executive Nicholas Kirk said: “Whilst most markets were sequentially stable, we experienced softer activity and trading in a number of European countries including France and Germany.
“The conversion of interviews to accepted offers remains the most significant area of challenge as the ongoing macroeconomic uncertainty in the majority of our markets continues to impact candidate and client confidence negatively.
“In this context, permanent recruitment continues to be impacted more than temporary.”
Page’s UK business, which accounts for 13% of overall revenues, fell by 13.5% in the three month period. This followed a decline of 17.4% in the second quarter.
Page said: “We continued to see clients deferring hiring decisions and candidates cautious about accepting offers. Temporary recruitment was more resilient than permanent recruitment, reflective of market conditions.”
FTSE 100 seen slightly lower after strong US session
07:25 , Graeme Evans
The FTSE 100 index is to make a subdued start to the week as attention turns to a run of heavyweight economic announcements.
Unemployment and wage figures on Tuesday and inflation the following day will feed into the Bank of England’s next interest rates decision on 7 November.
The FTSE 100 index is seen nine points lower at 8245, having added 15 points on Friday.
On Wall Street, the leading benchmarks were all higher after JPMorgan posted forecast-bearing results at the start of the third quarter earnings season.
The pound stands at $1.306 while Brent Crude is $78.11 a barrel.
Mulberry shareholder rejects Frasers approach
07:12 , Graeme Evans
A new Mulberry takeover approach by Mike Ashley’s Frasers Group has been rejected by the luxury handbag maker’s biggest shareholder.
Singapore-based Challice, which holds a 56.1% stake, said yesterday it has no interest in selling to Frasers “or providing Frasers with any irrevocable or other undertaking“..
On Friday evening, FTSE 100-listed Frasers tabled an improved approach of 150p a share valuing Mulberry at £111 million.
Mulberry said today it is working with “advisers to consider the company's position and will provide a further announcement in due course”.
