London Stock Exchange – the proposed merger with its German rival may have failed, but the company’s boss , Xavier Rolet, stands to be £5m better off as a result. Mr Rolet had waived long term incentive awards for 2016 and 2017 on the assumption that the deal would complete, but the breakdown of talks now means he will be awarded a swathe of shares. Investors are likely to be annoyed by this – the deal has still cost millions of pounds in advisory fees and critics say the competition issue should have been recognised much earlier.
DFS – the furniture store, has said that it may start making more sofas in the UK to battle the effects of the falling pound. Currently most production takes place in Asia, but moving this back to the UK will allow the company to be more nimble over pricing – and provide a small boost for the UK economy, too.
Shawbrook – the challenger bank founded in 2011 to help serve SME’s has been the subject of a takeover bid this morning, driving its shares 10% higher as a result. Curiously the bid is being driven by Pollen Street Capital who already own almost 40% of the bank, having itself founded the bank.
Talk Talk – a good morning for the telecoms company after Ofcom announced that it will cut broadband prices by around one third by 2021. Shares are up by around 5% as although the price cut will have to be passed on to consumers, it is seen as helping boost competition. Talk Talk clearly has market share it can win.
Ireland – international banks across London are warning staff that a ‘Brexodus’ is on the cards. They are working on the assumption that the UK will lose the ability to passport financial products into the EU, so at least some operations will have to be moved. Ireland has been tipped as one country that could win big here, with JP Morgan said to be looking at buying an office in Dublin that could house around 1,000 staff. Although Frankfurt is also seen as a front runner, employee considerations are seen as being high on this agenda.
