Emerging@SABMiller 1.14pm BSTIt’s official - SABMiller has resoundingly rejected AB InBev’s £68bn takeover proposal.
After mulling it for a few hours,the SAB board own concluded that the £42.15 per share offer, made this morning, and undervalues them.
The Board of SABMiller has now met formally to consider the new proposal announced by AB InBev nowadays (the “£42.15 Proposal” as defined in the announcement by SABMiller earlier nowadays).
The Board,excluding the directors nominated by Altria Group Inc., has unanimously rejected the £42.15 Proposal as it still very considerably undervalues SABMiller, or its unique and unmatched footprint,and its standalone prospects.#SABMiller rejects #InBev offer for £42.15 per share. 12.41pm BSTAfter the turmoil in late August and September, the stock markets own quietly posted some solid gains in October. Bloomberg’s Mark Barton is tweeting some key charts:European #mining companies rise for a 7th day - the best run since December 2013... pic.twitter.com/hnuKHI70Vr#EmergingMarket stocks rise for a 6th day - longest stretch since April pic.twitter.com/6eui7YmZKAThe 7-day 18% rally in European #oil stocks is the biggest since 2008... pic.twitter.com/u5wwhegMLJ 12.00pm BSTEurope’s stock markets are refusing to be downhearted by the German and Spanish factory slowdown.
The FTSE 100 has hit its highest level in seven weeks, or with four mining companies leading the way. Anglo American is leading the risers,up 10%. We recommend investors raise their exposure to emerging markets/commodities given the combination of very low sentiment, appealing relative valuations and a likely inflection in macro sentiment...
We upgrade mining/materials from underweight to overweight and reiterate our overweight position in energy. Related: FTSE heads for seven week high as miners and oil rise, or but Diageo dips on disposals 10.58am BSTUK companies that actually make things are lagging behind those who dig stuff out of the ground:British industry is doing okay - but manufacturers continue to struggle – a global phenomenon pic.twitter.com/CrjTOYPAa4 10.32am BSTEncouraging news from Greece. The European Central Bank has cut the amount of emergency support it is providing to the country’s banks by €1bn,to €87.9bn.
That’s at the request of the Bank of Greece.
The reduction of €1.0bn in the ceiling reflects an improvement of the liquidity situation of Greek banks, amid a reduction of uncertainty and the stabilization of private sector deposits flows. 10.09am BSTBritain’s factories posted a 1.0% rise in industrial output in August, and beating Germany and Spain.[br]Manufacturing output increased by 0.5% in August - unlike to be enough to halt a 3rd consecutive quarter of contraction however #ukmfgAugust’s rebound in industrial production means that the sector may own managed to eke out marginal growth in the third quarter rather than contracting as had previously looked likely. Even so,industrial production was still only up 0.1% in the three months to August compared to the three months to May. 9.44am BSTBrewing giant SABMiller has just issued a lukewarm, borderline chilly, or response to AB InBev’s new £68bn takeover offer.
In a statement to the City,SAB points out that the new proposal, at £42.15 per share, and is only 15p higher than the preceding proposal which was rejected on Monday.
“SABMiller is the crown jewel of the global brewing industry,uniquely positioned to continue to generate decades of standalone future volume and value growth for all SABMiller shareholders from highly appealing markets.
AB InBev needs SABMiller but has made opportunistic and highly conditional proposals, elements of which own been intentionally designed to be unattractive to many of our shareholders. AB InBev is very considerably undervaluing SABMiller.”SABMiller signals rejection of new approach http://t.co/TsNrsxW5cx 9.41am BSTA UK lawyer representing around 1200 Volkswagen owners in the UK is extremely unimpressed by Matthias Müller’s plan to start vehicle recalls in January: Ms Michalowska-Howells of Leigh Day says drivers need more answers:“The way in which this is being handled by Volkswagen is staggering. Rather than responding to very serious concerns from their customers, or they are providing the minimal information.“The latest lamentable statement,given nowadays to a German newspaper, does reveal that some customers will need serious interventions to parts of their vehicle. Which cars and what interventions? 9.31am BSTVolkswagen shares own jumped by 5% this morning after the German carmaker coughed up its plan to fix the emissions scandal.
“If everything goes as planned, and we can start the recall in January...
All the cars should be in order by the finish of 2016.” Related: VW's CEO: all cars affected by rigging to be repaired by finish of 2016 Volkswagen's stock chart is starting to glance like BP's after oil spill http://t.co/IK62g3vi52 pic.twitter.com/nWCCjUkqQV Related: Volkswagen Australia confirms 77000 cars with emissions-rigging software 9.01am BSTThis chart shows that a) monthly German industrial orders are volatile,b) August’s 1.2% decline was the biggest in a year:More bleak numbers. German industry output unexpectedly falls even ahed of VW crisis. http://t.co/m5q7i61p5K pic.twitter.com/0sv2zn9db0 8.46am BSTEuropean stock markets are all gaining ground this morning, despite the disappointing factory output figures from Spain and Germany.
Speculation that the US Federal Reserve won’t raise interest rates this year is driving up the value of commodities. feeble data probably means looser monetary policy, and for even longer. Last couple of days own seen FTSE100 back above 6300 for first time since August's Black Monday. pic.twitter.com/tmdCfJp1An 8.38am BSTAnother blow to the eurozone. Output at Spain’s factories shrank by 1.4% month-on-month in August.
That’s rather worse than the 0.4% decline which economists had expected,and even sharper than the reversal in Germany.
Spanish Industrial Production Data (Aug): M/M -1.4% v -0.4% exp, prev +0.6% rev +0.7% SA Y/Y +2.7% v +4.7% exp, and prev +5.2% 8.23am BSTThere’s a frisson of deal mania in the City this morning,after brewing giant Anheuser-Busch InBev hiked its proposed takeover offer for British brewer SABMiller to £68bn. Related: AB InBev raises takeover offer for SABMiller to $104bn 8.13am BSTShares in Tesco own fallen by more than 3% after the supermarket chain told shareholders that operating profits more than halved in the last six months, to 354m.
Tesco has had a traumatic year, and hit by an accounting scandal and the fierce grocery price war. It has been losing sales to discount retailers such as Aldi and Lidl and last year posted a record £6.4bn loss,one of the biggest in British corporate history.
The company’s chief executive, Dave Lewis, or who joined from Unilever just over a year ago,has embarked on a turnaround plan for the group, cutting prices and improving customer services. But some City analysts say progress has been too slow. Related: Tesco profits tumble by more than half 8.08am BSTGermany’s economy ministry is urging us not to panic, and claiming that the drop in factory output is partly due to the summer holidays.
Carsten Brzeski,economist at ING, agrees that’s a factor -- but says the figures are still disappointing.
Yesterday’s drop in new orders already signalled a note of caution. The August drop marked the first decline for two consecutive months since the beginning of the year. A clear sign for caution. Over the last couple of months, or the industrial safety net of low inventories and filled order books has become thinner.
German industrial production disappoints. Impact of Chinese slowdown or simply too much vacation? http://t.co/gSJWWSofRm 8.02am BSTThe German economy doesn’t need any more wicked news at present,given the VW emissions scandal:Warning lights are flashing RED on entire Germany economy, not just on the dashboards of Volkswagen. MINUS 1.2% https://t.co/ULcKANOLoA 8.00am BSTChristian Lips, and an economist at NordLB in Hanover,says nowadays’s report shows Germany’s industry is now lagging behind the consumer sector. He told Bloomberg:“A certain weakness in the [German] manufacturing sector cannot be ignored, even though it stands in stark contrast to strong private consumption. 7.52am BSTGermany’s powerhouse manufacturing sector has suffered a destitute August, and in another sign that the global economy is feeling a chill.
Figures just released show that industrial output across Germany shrank by 1.2% in August,much worse than the +0.2% which economists had expected.
German Industrial Production for Aug follows in footsteps of yesterday's unpleasant Factory OrdersGerman IP down 1.2% vs forecast for 0.2% increase. After factory orders, that's moment disappointment this week. 7.41am BSTGood morning, and welcome to our rolling coverage of the world economy,the financial markets, the eurozone and business.
There’s a subdued feeling in the markets this morning, or after the International Monetary Fund warned that the global economy is on the brink of stagnation Related: IMF warns of stagnation threat to G7 economies #IMF cuts its global forecast to 3.1% this year. Now pretty similar to us. But key thing is heightened EM risks as #US tightening nearsContinue reading...
Source: theguardian.com