London set for biggest annual office completions since 2003

London is set to see more new office space completed in 2023 than any year in the past two decades raising the prospect of higher vacancy rates, according to a report.

Nearly 10 million square feet of space is due to be delivered in the capital this year if all projects remain on schedule. That is the highest annual figure since 2003 when a wave of new towers in Docklands and the Gherkin skyscraper in the City completed.

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Little movement seen on Wall Street

Little movement is expected in US shares when markets open on Wall Street.

According to futures markets, all of the main US stock indices are set to open close to flat. S&P 500 futures are down by half a point at 4,163.50, while Dow Jones futures are up less than 0.1% to 34,065.00 and Nasdaq futres are down by less than 0.1% to 13173.25.

City comment: CBI has lost any right to speak for British business

In the confusing and fast moving post-Brexit world there has rarely been a more crucial time for Britain’s private sector to be represented by a credible, respected organisation that speaks authoritatively for companies large and small in the corridors of power.

Yet remarkably for now that body does not exist. A week on from the dramatic sacking of Tony Danker over misconduct allegations, the CBI is no closer to restoring its bona fides. If anything it is further away.

Not surprisingly no politician or senior business figure will go near the CBI, forcing it to cancel its entire events schedule for the foreseeable future.

FTSE’s morning gains fading

Most of the FTSE 100’s gains this morning have slipped away, with the blue-chip index now up by less than 0.2% to 7,886.29.

Though the index reached as high as 7915.59, it has since slipped and is now close to where it started the day.

Among the biggest losers so far today are Melrose Industries and Barclays.

ASDA rolls out self-driving grocery deliveries for 72,000 west London households

ASDA today launched self-driving grocery deliveries for 72,000 households in West London, as part of a trial that could be a first step towards nationwide autonomous supermarket deliveries.

The Issa brothers-owned supermarket giant will partner with self-driving car tech startup Wayve as part of a 12-month trial for customers of the Park Royal ASDA Superstore.

While the vehicles used for deliveries will drive themselves, both an ASDA employee and a Wayve safety driver will still be in the car, with the ASDA employee unloading the groceries.

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Government considers proposals to make renewables greener and more innovative

The Government is considering new proposals which it hopes would speed up the roll-out of renewable energy, cutting emissions and increasing energy security, but which may also add to household bills.

If adopted, officials might consider whether a project will help create more sustainable supply chains, innovate, or encourage job creation on top of considering the cost of delivering electricity from the wind or solar farm or tidal energy project.

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Apollo approaches The Hut Group over takeover

A third private equity deal for a London-listed firm could be in the offing, this one also involving Apollo.

The Hut Group said it has received a “preliminary and non-binding proposal” for its shares from Apollo.

THG shares jumped 30p to 96p on the news. The battered stock was nearer 800p back in early 2021.

That follows news from John Wood Group and Network International that private equity takeovers could be nearing fruition.

Royal Mail shares higher, Tesco upgrade boosts FTSE 100

A breakthrough in Royal Mail’s long-running industrial dispute today gave a lift to shares in owner International Distributions Services (IDS).

The FTSE 250-listed stock initially threatened the 250p threshold for the first time since November before later settling 5% or 11.8p higher at 243.4p.

The interest in IDS shares followed Saturday’s preliminary agreement with the Communication Workers Union over new pay and employment conditions that can now be put before the union’s leadership and then membership for approval.

The terms of the proposed deal have not been disclosed, with Liberum analyst Gerald Khoo seeing no reason to change his “sell” recommendation or 135p target price.

He said: “We do not yet know what concessions Royal Mail management has had to make to get this deal over the line, but they are likely to be considerable. Even with a deal in hand, the execution and implementation risk is very high, in our view.”

The company’s shares were 630p during pandemic lockdowns in April 2020 only to fall below 200p as the company warned the strike disruption would contribute to Royal Mail losses topping £350 million.

The performance of IDS and takeover developments at Wood Group and Network International meant another strong mid-cap session as the FTSE 250 index climbed 0.6% or 108.49 points to 19,351.18.

Defence technology group Qinetiq lifted 4% or 15.8p to 367.4p after it said an “impressive” fourth quarter performance had left annual results ahead of its previous guidance and at the upper range of City forecasts.

The Hampshire-based company reported a 40% jump in its order intake for the year to 31 March to a record high of more than £1.7 billion.

The FTSE 100 index, which on Friday posted its fourth consecutive weekly gain, added another 33.79 points to stand at its highest level since early March at 7905.70.

Blue-chip risers included supermarket giant Tesco, up 4p to 272.2p after analysts at UBS raised their target price to 300p following last week’s results. Electronics components supplier RS Group also benefited from a City upgrade, causing its shares to lead the risers board with a gain of 19.6p to 868.6p.

Investment giant Apollo launches new European HQ in central London

US investment giant Apollo has opened a new European headquarters in central London and said offices remain “important’ post-pandemic.

The private capital manager has launched a new European hub at 1 Soho Place, with 88,000 square feet that can accommodate over 400 employees. It is bringing together teams from two existing London offices totalling 56,000 square feet.

Rob Seminara, partner and head of Europe at Apollo told the Evening Standard: “We have more capital to deploy than ever with European-based teams managing nearly a quarter of Apollo’s $548 billion (£441 billion). We were clearly running out of space before.”

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Private equity eyes UK stock market

TWO takeover deals of stock market listed companies worth £3.7 billion neared fruition today, with analysts saying many more bids are likely as private equity funds hunt for cheap UK companies.

Payments provider Network International said this morning it had received a £2 billion, 387p a share offer from CVC Capital and Francisco Partners. That is 28% higher than the Friday closing price and much better than earlier rejected offers.

Meanwhile oil and gas firm John Wood said it will engage with Apollo Management on a £1.7 billion, 240p a share bid. It has turned down three lower offers but now seems keen to strike a deal.

By some analysis US private equity funds are sitting on around $2 trillion of cash, nearly enough to buy the FTSE 100 in its entirety.

With UK shares unloved and new stock market floats thin on the ground, City watchers say more bids from private equity are likely.

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