Yahoo Finance What to watch: Brexit 'deadlock', Superdry row, and Debenhams funding
Here are the top business, market, and economic stories you should be watching today in the UK, Europe, and abroad:
Brexit talks ‘deadlock’
Talks between the UK and the EU over new concessions on the Brexit deal are deadlocked, according to Downing Street.
Both sides were hoping for a breakthrough over the weekend but the chances of reaching an agreement now look slim ahead of Tuesday’s “meaningful vote” on the deal in Parliament.
As a result, it looks likely that May’s proposals will be rejected. The pound was lower on the back of this calculation, down by 0.2% against the euro (GBPEUR=X) and by 0.1% against the dollar (GBPUSD=X).
“The pound is weak, just off 3-week lows, ahead of this week’s Brexit votes where PM May’s deal is not expected to be approved,” Michael van Dulken, head of research at Accendo Markets, wrote in an email.
“Failure of the Meaningful Vote 2.0 would pave the way for Parliament to formally rule-out a ‘no-deal’ scenario and then extend Article 50.”
Superdry row
Superdry has urged shareholders to reject co-founder Julian Dunkerton’s efforts to be re-installed on the board.
The group recommended investors vote against Dunkerton’s reappointment, claiming it would have “damaging business impacts.”
Superdry said: “The board unanimously believes that Mr Dunkerton’s return to the company, in any capacity, would be extremely damaging to the company and its prospects.
“Specifically, that it would: lead to a strategy that would fail; result in a return to a narrow and concentrated range mix, high option count, and low rate of sale model with a disregard for consumer and data insight; be divisive and distract from the delivery of the global digital brand strategy; reintroduce a leadership style that does not fit within the open-minded collaborative culture, values and operation of the company.”
It added that any reappointment would lead to “dysfunctional relationships” with the board and management and damage morale across the business.
Superdry also advised shareholders to reject the appointment of Peter Williams, who chairs fashion chain Boohoo, as director. The vote will be held on April 2.
Debenhams’ funding
Debenhams is in advanced talks to raise £150m, the struggling department store company said on Monday.
Debenhams said £40m of the new money, if secured, will be used to refinance another bridging loan it secured in mid-February, underlining the precarious nature of its position.
The financing talks follow the retailer’s fourth profit warning in 18 months last week and come as Debenhams fights back against investor and Sports Direct founder Mike Ashley’s attempt to take control of the company.
£1.6bn challenger banker merger
Charter Court Financial and OneSavings Bank have confirmed they are in advanced talks over a potential £1.6bn merger.
The challenger banks said OneSavings Bank shareholders would hold about 55% of the newly merged group on completion and Charter Court shareholders would hold about 45% of the combined group.
The companies said a merger has the potential to create shareholder value and a “leading specialist mortgage lender in the UK with greater scale and resources to deploy on growth opportunities.”
Law firm listing
Law firm DWF has confirmed it is to float on the London Stock Exchange.
The offer price has been set at 122p per share, giving the group a valuation of £366m. DWF will raise £95.2m through the initial public offering.
Chief executive Andrew Leaitherland said: “DWF and its partner group see this as the start of the next phase of DWF’s evolution and we are very pleased by the support shown by our new investors. We see substantial, long-term opportunity, to build on our strong track record and further develop and grow.”
European markets
European stock markets were higher on Monday morning after a positive session for Asian markets.
Britain’s FTSE 100 (^FTSE) was 0.7% higher, Germany’s DAX (^GDAXI) was 0.1% higher, France’s CAC 40 (^FCHI) was flat, and the Euronext 100 (^N100) was 0.1% higher.
The FTSE was boosted by a rally for the dollar, which helps the share price of international companies listed in London that report earnings in dollars. The US currency was boosted by “comments from Fed Chair Powell (Sunday) that there is no need to either hike or cut interest rates, reiterating the central bank’s recent shift to a ‘patient’ stance,” Accendo Markets’ van Dulken said.
Japan’s Nikkei 225 (^N225) closed 0.4% higher, Hong Kong’s Hang Seng index (^HSI) was up by 0.9%, and China’s benchmark Shanghai Composite (000001.SS) was 1.9% higher.
What to expect in the US
US stock futures were pointing to a mixed open. S&P 500 futures (ES=F) were flat, Dow Jones Industrial Average futures (YM=F) were down by 0.7%, and Nasdaq futures (NQ=F) were up by 0.1%.
Boeing shares were down 9% in the pre-market, after the airliners’ 737 Max 8 jets were grounded in China following the deadly crash in Ethiopia over the weekend.
