Breakfast Briefing

Brexit spending boom is over, says Carney

May 12, 2017

Morrisons - the supermarket group has given its Chief Executive a £500,000 pay rise, despite risking the wrath of MPs in doing so. However, this could be one example of where a reward can be justified, with the share price having risen by around 70% since the end of 2015, with over £2 billion having been added to the value of the business.

London Stock Exchange - boss Xavier Rolet, who had planned to resign if the merger with Frankfurt’s Deutsche Bourse exchange completed, is reported to have sold some £2m worth of shares in the company. Mr Rolet is said to remain committed to the company and is currently looking for further growth opportunities with more acquisitions said to be on the agenda.

Entertainment One - makers of the hit kids TV franchise Peppa Pig, is set to take a £50m hit to full year profits after re-negotiating a distribution agreement for its film arm. The company takes a one off cash hit, but the ongoing profitability and cash flow should be improved as a result - a classic example of why it’s important not to jump at the first sign of profits appearing to fall!

Microsoft - is said to be moving into the ‘mixed reality’ platform space with the launch of a headset that’s set to rival Facebook’s Oculus. The company is seen to have missed the boat in the move to mobile devices with Apple and Android having cleaned up, but when it comes to VR, it sees as if they’re fighting to be back in the pack.

UK - bad news from the Bank of England yesterday, with Mark Carney saying the spending boom that surprised many in the wake of the Brexit referendum is at an end. However, the bank has been wrong about this before, and the market’s muted reaction to the news suggests that there’s a temptation to wait and see...