UK market update – IWG considers a breakup, Morrisons sets date for takeover vote

At 07:42BST, FTSE 100 Futures are trading higher by 0.9% at 7089.00.

In FX markets, GBP/USD is trading at 1.3666, EUR/GBP is trading at 0.8575. The US Dollar Index is down 0.05%.

Today’s calendar highlights include US durable goods orders and speeches from Bank of England Governor Andrew Bailey and Fed members Charles Evans, John Williams, and Lael Brainard.

Stocks
United Utilities (LON:UU) – Current trading in line with the group’s expectations for the six months ending 30th September 2021. Underlying operating profit in H1 expected to be higher than last year reflecting higher revenue and targeted efficiencies partly offset by higher underlying operating costs.

IWG (LON:IWG) – Reportedly considering a multibillion pound breakup that would involve splitting into several distinct companies. Options include a US listing for Worka which could be achieved through a flotation or SPAC merger. (Sky News)

Hikma Pharmaceuticals (LON:HIK) – To purchase Custopharm from Water Street Healthcare for $375 million, with a further $50 million in contingent consideration payable upon the achievement of certain commercial milestones.

Morrisons (LON:MRW) – Shareholders are to vote on the takeover offer from Clayton, Dubilier & Rice on 19th October.

Rolls-Royce (LON:RR) – Has been selected to provide the powerplant for the B-52 Stratofortress under the Commercial Engine Replacement Program by the US Air Force. The deal means Rolls-Royce will power the B-52 for the next 30 years.

Rio Tinto (LON:RIO) – Canadian union Unifor has reached a labour agreement in principle with Rio Tinto for the facilities in British Columbia.

3i (LON:III) Group – Action’s year to date sales at over €4.5 billion are now over 20% ahead of las year with strong trading continuing across geographies.

JD Sports (LON:JD) – Has reportedly bought a stake in online hair and beauty brand Hairburst. (Times)

Boohoo (LON:BOOH) – Has published an international factory lists, detailing around 1,100 factories following an extensive period of mapping and auditing.

Kerry Group (LON:KYGa) – Completed the sale of its Consumer Foods’ Meats and Meals business to Pilgrim’s Pride for €819 million.

GlaxoSmithKline (LON:GSK) – Executives from the company are planning to win the support of City institutions over its plans to split into two listed companies at a meeting hosted by the Investor Forum on October 7th.

Ferrexpo (LON:FXPO) – Upgraded to Neutral from Sell at Citi.

Sectors
Petrol Retailers – The Petrol Retailers Association said the government plan to offer temporary visas to foreign lorry drivers would not be enough to solve near-term supply chain issues.

UK market update – IWG considers a breakup, Morrisons sets date for takeover vote