- FTSE 100 adds 63 points to 8268
- Bank of England keeps rates at 5.25%
- Sainsbury's pays £125m to offload bank to NatWest
- YouGov plunges on profit warning; CMC results impress
4.07pm: FTSE hits highest since 7 June
The FTSE 100 index is up 63 points with less than half an hour of Thursday's session set to run at 8268, the highest since the first week of the month.
Mid caps are also doing well, with the FTSE 250 up 120 points at 20,501.
Top of the FTSE 350 leaderboard is CMC Markets PLC (LSE:CMCX), up 11% after its results beat forecasts.
Biggest faller was Ocado, down 12% after being hit by further problems in North America, while tomorrow is its last day as a FTSE 100 company before the index reshuffle changes are made after Friday's close.
Tate & Lyle is also down as investors seemed not to like the sound of its $1.8 billion US acquisition.
“The FTSE 100 perked up after the Bank of England’s decision to leave UK interest rates untouched. A weaker pound was good for the index’s large number of overseas earners. UK 10-year gilts dipped on the rate decision but soon worked their way back upwards,” says Dan Coatsworth, investment analyst at AJ Bell.
“Confidence is growing that the Bank could cut rates either in August or September and that would represent a major turning point in monetary policy and effectively draw a line underneath an era dictated by soaring inflation and rapid rate hikes.
“Investors are looking for a future when inflation is back under control and rates start to ease, and the magic moment looks to be in touching distance.”
3.45pm: Trading apps remain under review
The UK financial watchdog has warned trading apps that they will be kept under review after finding that some of the 'gamification' features used to try and increase customer usage can lead to behaviour that may not be suitable for all investors.
After almost 2.5 million accounts have been created in the UK in the last three years across four trading app firms, the Financial Conduct Authority conducted an online experiment with over 9,000 consumers using an experimental trading app platform it created.
Digital engagement practices used by trading apps, such as sending push notifications on their phones and offering prize draws, were found to increase trading frequency by 11-12% and risk-taking by 6-8%.
The FCA found evidence that the practices can have a larger impact on investors with low financial literacy (ie who got less than 3 out of 3 in the 'big three' test), women and younger users, which it classed as those aged 18 to 34.
Under Consumer Duty legislation, trading apps must ensure their services enable users to "make effective, timely and properly informed investment decisions, including for those with characteristics of vulnerability", with the regulator having warned stock trading apps two years ago to review their "game-like" design features.
FCA consumer and competition chief Sheldon Mills said "some in-app features might be pushing consumers towards more frequent or riskier trading, which isn’t right for everyone" so the watchdog will "be keeping them under review".
3.32pm: Fake Ozempic warning
The World Health Organization (WHO) has issued a medical product alert regarding fake batches of semaglutide brand Ozempic, detected in Brazil, the UK, and the USA.
Semaglutides are a class of medicines used for treating type 2 diabetes and obesity, and the success of Ozempic and Wegovy brands for Novo Nordisk (NYSE:NVO) has made the Danish grop Europe's largest listed company.
Since 2022, increased reports of falsified semaglutide products have been observed by the WHO’s Global Surveillance and Monitoring System (GSMS).
It said these counterfeit medicines could pose serious health risks if they lack necessary components or contain undeclared active ingredients.
Novo shares are up 1% in Copenhagen and 1.8% in New York today.
3.01pm: FTSE perks up, Ocado plunges
The positive vibes from the upbeat US open is filtering across the pond, with the FTSE 100 index rising to its highest in seven sessions.
Up 50 points, the Footsie has topped 8257, for a gain of 0.64% so far today, cathing up with some of the gains in continental Europe.
With all but four of the top 30 largest stocks all in the green, it is outpacing the FTSE 250, which is up 87 points or 0.43% at 20,468.
A big faller is Ocado Group PLC (LSE:OCDO) though, down 15% after the online grocery technology group revealed a hitch with Canadian supermarket chain Sobeys, with the opening of a new robotic warehouse on pause and the partnership no longer exclusive.
Following the decision of US partner Kroger to close three sites powered by Ocado technology, Sobeys has decided to pause the "planned go-live" of a fourth warehouse in the country, which had been planned for 2025.
The news comes ahead of Ocado's demotion from the FTSE 100 index, which will be effected after the close this Friday.
2.48pm: Nvidia leads US stocks to new records
US stocks have started higher, with new record highs for the Nasdaq benchmark and S&P 500, up 0.3% and 0.3% respectively so far, as is the Dow Jones.
The world's most valuable company, NVIDIA Corp (NASDAQ:NVDA), is doing a lot of the heavy lifting, up another 3.8% today to a new record of its own, a $3.42 trillion valuation.
Its shares are up almost 7% this week, almost 50% higher this month alone and has rocketed over 190% in the year to date.
NVIDIA's graphics processing unit (GPU) chips are the "new gold", says one analyst, as they are the AI economy’s precious commodity.
"Nvidia's GPU chips are in essence the new gold or oil in the tech sector as more enterprises and consumers quickly head down this path with the 4th industrial Revolution well underway,” Dan Ives of Wedbush said in a note.
"Its all about the pace of data center AI driven spending as the only game in town for GPUs to run generative AI applications all go through Nvidia."
Microsoft and Apple, put into second and third place earlier this week, are both down so far today, as is Tesla, though the other members of the so-called Magnificent Seven (it could be that Nvidia is a Mag One on its own) are up, namely Alphabet, Amazon and Meta.
Godspeed ???? pic.twitter.com/zrYWNFoqLP
— IV (@iv_technicals) June 20, 2024
2.10pm: Open season on London's mid-caps
Another agreed takeover today suggests its open season on UK mid-caps, writes Proactive Investors's editor in chief Ian Lyall.
The anticipated exit of Alpha FMC from the public markets, following the board's recommendation today of a £626 million deal with private equity firm Bridgepoint, underscores a broader trend.
Britain’s mid-cap companies are being snapped up at what can only be described as bargain-basement prices, with mid-caps Spirent, Wincanton and Keywords Studios all either succumbing to takeover bids in recent weeks or under serious acquisition consideration.
For buyers, this market represents a golden opportunity, with forward price-earnings ratios stand at a significant 20% discount from the historical average of 14 times earnings and dividend yields also higher than historical averages...read more.
1.30pm: Arrests over illegal crypto exchange in London
Two Londoners have been arrested for running an illegal cryptocurrency exchange that enabled the trading of over £1 billion of unregistered crypto assets.
The Financial Conduct Authority said its investigation with the Metropolitan Police led to the arrest of the two individuals.
The FCA said it inspected the offices associated with the suspects and the Met seized several digital devices during searches of two homes in London.
In other news, ASOS PLC is urging its staff to return to the office, warning staff that virtual meetings have a “detrimental” impact on company performance.
Meetings regarding projects, brainstorming, pre-production, and commercial activities, are “vital” to be attended in a face-to-face office environment, the online fashion retailer told staff.
And research from Zoopla indicates that anyone looking to buy a house in London would need an income of £103,000 or two and half times the amount required in Wales and Scotland.
An average deposit of £60,000 is also needed for first-time buyers to get started, said the website, a rise of almost £15,000 over five years and by £2.400 in twelve months.
1.02pm: BoE 'itching to cut'
The minutes of the MPC’s June meeting "suggest rate-setters are itching to cut rates", says Rob Wood, chief UK economist at Pantheon Macroeconomics.
"They are keen to dismiss any data suggesting persistent inflation pressures," he says, with the key addition to the MPC’s minutes was that "some" members in the majority voting to keep rates on hold in June said "the policy decision at this meeting was finely balanced".
Wood says this suggests "three additional members could be ready" at the MPC’s next meeting in August to join Swati Dhingra and Dave Ramsden in voting for a cut, which would give a majority to change policy.
He says he agrees with the market's expectation of an August cut being odds-on after these minutes, though he is sticking with his call that the MPC will wait until September.
Partly this is because one of the rate-setters seeing a cut as finely balanced could be Ben Broadbent, for whom this was the last MPC meeting, the other reasons are that wage growth numbers and inflation could continue to surprise the MPC on the upside in the next round of data.
"They will have better data by September we think. Either way, we think the MPC are on track for two Bank rate cuts this year. We expect those cuts in September and December, but the risks skew to August and November."
12.51pm: August rate cut 'still on the table'
Sanjay Raja, chief UK economist at Deutsche Bank said the missive from the MPC alongside the policy decision with "a dovish surprise keeps August still on the table".
He says: "Despite the recent punchy wage and services inflation prints, today’s decision was more finely balanced than we expected.
"While Bank Rate stayed put at 5.25%, multiple MPC members downplayed the upside surprises in the price and wage data, instead putting more stock in forward-looking survey data.
"Put differently, the MPC has softened its focus on the hard price data, in favour of a broader macroeconomic outlook.
"To be sure, the MPC has left an August rate cut on the table," says Raja, who adds that he continues to think that the MPC will "start dialling down restrictive policy from summer and deliver two rate cuts this year".
12.39pm: Door ajar for August
The market is now more confident of an August rate cut from the BoE, following today's decision to maintain rates at 5.25%, with the pound falling 0.2% against the dollar to $1.2689 and two-year Gilt yields down nearly 9 basis points.
Minutes from the policy meeting noted that for some members the decision to hold rates steady was "finely balanced" as they noted that the disinflation trend was continuing even with stubbornly high wages and service prices.
These members are willing to look through high pay growth and high levels of service price inflation and they are more worried about the outlook for growth.
While this month's rates call was widely expected by the market, the monetary policy report and minutes from today’s meeting had some interesting new points, says Kathleen Brooks, research director at XTB, which has "kept ajar the door for an August rate cut".
The key section was at the end of the report, saying "as part of the August forecast round, members of the Committee will consider all of the information available and how this affects the assessment that risks from inflation persistence are receding."
Brooks said it "sounds like there are several MPC members ready to cut rates and that there is a decent chance that if we see wage growth and service prices recede in the next month, then an August rate cut is possible".
The market reaction has been swift, with traders taking today’s news as a step in the direction of a rate cut at the next BOE meeting, says Brooks.
The market is now pricing in a 60% chance of a rate cut in August, up from a 35% chance before the meeting, according to the swaps market, while Gilt yields are down and the pound is lower.
"The market can bask in its hopes for a rate cut, as MPC members will now enter a quiet period until after the election, so they won’t have any members pouring cold water on their hopes for a rate cut in 6 weeks."
12.33pm: Revealing meeting minutes
Swati Dhingra and Dave Ramsden were the two MPC members who voted for a rate cut, the same pair that supported a reduction in rates at the last meeting.
For the other seven members who voted to keep rates on hold, the minutes of the meeting revealed that elevated services price inflation relative to the May Report "did not alter significantly the disinflationary trajectory that the economy was on".
"For these members, the policy decision at this meeting was finely balanced," the minutes said.
The guidance in the minutes also points to August as a key decision point: "As part of the August forecast round, members of the Committee would consider all of the information available and how this affected the assessment that the risks from inflation persistence were receding."
12.15pm: FTSE 100 jumps on BoE decision
London's blue-chip index has climbed to its highest in over a week after the BoE decision came in as expected.
The MPC kept its interest rate outlook unchanged, with the report issued alongside the rate decision noting that the timing of the general election on 4 July was "not relevant to its decision at this meeting", insisting it only acted on the basis of what was deemed necessary to keep inflation at 2% on a sustainable basis.
While the consumer price index measure of inflation returned to the MPC's 2.0% target in May, the MPC said it felt monetary policy "will need to remain restrictive for sufficiently long" to keep inflation at target in the medium term, with CPI expected to rise slightly in the second half of the year.
It was noted that UK GDP "appears to have grown more strongly than expected" during the first half though business surveys point to a slower pace of underlying growth, while the MPC judged that the UK labour market continues to loosen but remains relatively tight by historical standards.
The MPC noted the stickiness of services inflation, which was 5.7% in May, still higher than projected in the MPC's May report.
The Monetary Policy Committee voted by a majority of 7-2 to maintain #BankRate at 5.25%.
Find out more: https://t.co/1nN6lt3Feu pic.twitter.com/QfcBpmvXyT
— Bank of England (@bankofengland) June 20, 2024
12.02pm: BoE holds rates
The Bank of England's monetary policy committee has kept the base interest rate unchanged, as expected, at 5.25%.
MPC members also voted by the same 7-2 majority to maintain the bank rate, again as expected, with only two members still looking for a rate cut.
The FTSE 100 has spiked higher on the news.
11.55am: BoE incoming soon, US stocks due to head higher
Just a few minutes to the Bank of England decision.
Earlier we heard from two other central banks, with the Swiss National Bank delivering a hike that surprised many.
Elsewhere, Norway's Norges Bank kept rates on hold, with the BoE's monetary policy committee expected to do the same at midday.
"The different stances between the SNB and the Norges Bank and the Bank of England is partly down to the fact that the Norges Bank and the BOE do not need to suppress their currency with rate cuts," says market analyst Kathleen Brooks at XTB.
"In complete contrast to the SNB, the Norges Bank have said that they do not intend to cut rates until next year, even the BOE and the Fed have still given the markets hope that a rate cut could come later this year. The Norges Bank has taken a bold stance by suggesting that they won’t cut rates until 2025, and then only gradually. The question now is, will the Fed and BOE join them?"
Wall Street returns to action today after the Juneteenth holiday yesterday, with stock futures pointing to a positive start.
Nasdaq 100 futures are up 0.67%, followed by S&P 500 futures pointing to a 0.41% gain and those for the Dow Jones just above flat.
The FTSE gains have come back a little ahead of the MPC verdict.
11.11am: London stocks lagging Europe
With just under an hour until the BoE's monetary policy committee releases their decision, the FTSE 100 is up almost 15 points at just under 8220, a rise of 0.2%.
After its early fall, the FTSE 250 index has gained ground quicker, rising 71 points or 0.35% to 20,452.
London's indices are underperforming their continental cousins this morning, with Spain's IBEX 35 up 0.55%, Germany's DAX jumping 0.7%, France's CAC 40 leaping 0.9% and Italy's FTSE MIB surging 1.2%. .
The pan European Euro Stoxx 600 is up 0.55%.
10.57am: ONS real-time update
The Office for National Statistics has published its latest set of weekly experimental ‘real-time indicators’, including on energy prices, retail footfall and job ads.
Last week, the system price of electricity increased 45% on the previous while gas system average prices increased 1%, according to data from Elexon and National Gas Transmission. Petrol prices were broadly unchanged.
Retail footfall remained broadly unchanged week on week, but was 4% lower than a year ago.
Numbers of online job adverts last week were up 1% from the previous week but down 20% on laat year, according to figures from Adzuna.
Daily average UK airline flights increased 1% on the previous week and were up 5% on the equivalent week in 2023.
A survey on company turnover found 22% of businesses reported a decrease in May compared to April this year, "broadly stable" from last month, while 17% reported higher turnover, leaving 52% that reported turnover stayed the same.
As for prices, 24% of businesses reported an increase in May versus April, down four percentage points, while looking forward 11% expect to raise the prices of goods or services they sell in July, broadly stable with expectations a month ago, while 68% reported that they expect prices to stay the same, up four percentage points.
10.48am: Election poll update
Rishi Sunak is on track to become the first British prime minister to lose their seat in a general election, according to a new poll analysis.
The Telegraph says the Tories are on track to lose around three-quarters of its cabinet in the vote, with only 53 seats in total expected to be Conservative after July 4.
The Lib Dems are expected to add further pressure to Sunak’s party, on course to win 50 seats in Parliament and come in touching distance of becoming the official opposition, data from Savanta and Electoral Calculus found.
10.35am: Oil protestors paint jets at Stansted Airport
Talking of emissions, two Just Stop Oil protestors have been arrested after spraying orange paint over jets at Stansted Airport, shortly after Taylor Swift's private jet landed.
After cutting a hole in metal fencing using an angle grinder, the activists proceeded to paint two private jets using fire extinguishers filled with orange paint, the environmental group said.
Essex Police confirmed it had detained two women.
Just Stop Oil said the protest was to demand "an emergency treaty to end fossil fuels by 2030".
???? JUST STOP OIL PAINT PRIVATE JETS HOURS AFTER TAYLOR SWIFT'S LANDS
???? Jennifer and Cole cut the fence into the private airfield at Stansted where @taylorswift13's jet is parked, demanding an emergency treaty to end fossil fuels by 2030.
???? Donate — https://t.co/UwALfVtRmR pic.twitter.com/aORdvUuQmU
— Just Stop Oil (@JustStop_Oil) June 20, 2024
10.20am: Supreme Court makes Horse Hill ruling
The Supreme Court has made a ruling that could put the kybosh on other new UK fossil fuel developments going ahead as it delivered a decision on the approval of Horse Hill oil wells near Horley in Surrey.
Emissions created by burning fossil fuels should be considered when granting planning permission for new drilling sites, Lord Justice George Leggatt ruled, judging that Surrey Country Council’s decision to grant permission for oil drilling at the site was unlawful.
The council should have considered the climate impacts from the burning of oil as fuel, not just from extracting it, the judge said, with the decision to grant planning permission for the expansion of oil wells at the site "unlawful and must be quashed", he added.
The Weald Action Group challenged the county council’s 2019 decision to allow the expansion, arguing that the environmental impact assessment carried out before planning permission was granted should have taken into account the “downstream” emissions produced when the oil was burned not just the impact of extracting the oil.
9.57am: DS Smith says takeover by US rival still going ahead
Alongside reporting a 24% fall in profits on a 17% decline in revenue, DS Smith PLC (LSE:SMDS) boss Miles Roberts told reporters today that the £5.8 billion takeover of the cardboard box-maker by US rival International Paper is still going ahead, following speculation that the deal may be called off.
Worries that the deal could be derailed have grown on reports that International Paper is fighting to block a potential $15 billion acquisition attempt by Brazilian giant Suzano.
DS Smith agreed to an all-share takeover by International Paper at a price of 415p in April, which would leave shareholders of the FTSE 100 group with 33.7% of the combined group, with the US company agreeing to take a secondary listing in the London Stock Exchange as part of the takeover.
Roberts said both Smith and IP boards and advisers are still "working very diligently on bringing the businesses together", and that the plan for a shareholder vote in September "hasn’t changed at all".
SMDS shares are up 1.3% this morning.
9.38am: EU sanctions on Russian LNG
The EU is to launch sanctions against Russian liquified natural gas (LNG) for the first time, as the 14th package of restrictions against Moscow since the invasion of Ukraine in early 2022 looked to close previous loopholes.
Member state ambassadors agreed this morning to prohibit Russian gas exporters from using EU ports to transfer gas between large tankers and smaller vessels destined for third countries.
Though this falls short of a full ban on EU states purchasing Russian LNG, a Belgian council spokesperson said the measures were "powerful and substantial".
9.29am: Tate & Lyle investors 'nervous about deal'
Tate & Lyle shares are down 3.8%, which is off their earlier levels but the scale of the $1.8 billion deal to acquire fellow ingredients specialist CP Kelco is "clearly making some investors nervous", says Russ Mould, investment director at AJ Bell.
"Getting a deal wrong is often the biggest pitfall for a corporate entity and large deals have a nasty habit of destroying rather than creating shareholder value."
As the deal is being funded through a mixture of debt and existing cash, there is "the potential for some strain" on the FTSE 250 company's balance sheet, Mould adds, but the decision to press ahead with a previously announced share buyback is a sign of confidence on this front.
"A lot will ride on the company’s ability to deliver the cost savings from combining operations and the promised improvements in revenue growth and margins," he says, with Tate & Lyle buying a business it knows well, having collaborated with it over a long period, which "might reduce the risk that it discovers some skeletons in the cupboard when it takes charge".
Overall, Mould sees the FTSE 100 as being in "positive mode", helped by a recovery in some of the housebuilding names after they sold off on mixed results from Berkeley yesterday, with "some strength in the industrials sector helped to get the UK’s flagship index off to a decent start".
As investors awaited the BoE rate decision at lunchtime, he says this is likely to be "something of a non-event as Governor Andrew Bailey and his colleagues are likely to sit on their hands and largely keep schtum given that we’re in the middle of an election campaign."
9.12am: FTSE weighed down by ex-divs
The Footsie is fighting to maintain its positive start, but there are a few factors weighing the index down.
Water company United Utilities is the biggest faller, down 2% as its shares go ex-dividend, with other blue-chip ex-divs today including Persimmon, Experian (LSE:EXPN), 3i and Airtel Africa.
Whitbread has slipped back 0.7% after rising on its trading update earlier in the week.
Analysts at Citi put out a mixed note this morning, saying the Premier Inn owner "limited visibility into bookings", which is inherent for the hotel sector, with "management's caution compared to this time last year seems warranted in the context of accelerating UK hotel supply growth and changing profile of demand compared to last year".
Citi sees Whitbread's valuation as "very attractive" following a 20% share price fall so far this year - "not capturing the value in UK self-help and ongoing growth, or significant market share growth potential in Germany".
Analysts at the US investment bank also have a view on Berkeley, down another 0.6% after its results yesterday, saying the "reassuring" performance and revised guidance "support resilient near term performance".
The housebuilder's new strategy of moving into the build-to-rent market is somewhat perplexing and "puts a spotlight on the structural challenges which may not have an easy fix, even with lower rates and better planning backdrop".
8.53am: Central bank rate cut surprise
The Swiss National Bank has surprised markets just now and announced a quarter-point interest rate cut, to 1.25% from the previous 1.5%.
It sees 2024 Swiss growth at around 1%, the same as its last forecast, though it expected 2024 inflation to be just 1.3%, down from its previous forecast for 1.4%.
Inflation forecasts for 2025 and 2026 were also trimmed to 1.1% and 1.0%.
SNB surprises the markets and cuts rates, don’t expect the BOE to do the same. @XTBUK
— kathleen brooks (@KATHLEENBROOKS) June 20, 2024
8.44am: NatWest's Sainsbury's shopping gets nod from analysts
Analyst Robert Sage at Peel Hunt says NatWest's shopping trip at Sainsbury's, buying the supermarket's retail banking assets and liabilities, "reinforces the greater prominence of growth aspirations within the group strategy",
The deal also satisfies NatWest's return requirements, as it is expected to be accretive to both EPS and RoTE upon completion.
"It anticipates a CET1 impact of -20bps, so the implications for the group's capital return plans are minimal, and we note that as part of the deal terms Sainsbury's Bank is to pay £125m to NWG," says Sage.
"We view this transaction as incrementally positive for the investment case," the analyst adds, reiterating his 'buy' rating on NatWest.
Gary Greenwood at Shore Capital says NatWest "is under-weight from a market share perspective in unsecured personal lending and credit cards" and that management had previously identified this as an area for growth.
"As such, the transaction fits with the group’s strategic objectives, albeit the financial implications are not material enough to warrant a change in our forecasts or investment opinion."
He therefore retains his 'hold' recommendation.
8.23am: CMC results beat and guidance impresses
CMC Markets PLC (LSE:CMCX) has jumped 9.1% after following the recent deal with Revolut by announcing full-year results well ahead of consensus forecasts.
Adjusted profit before tax zoomed up 52% to £80 million as trading net revenue rose 11% to £259.1 million.
New revenue guidance is between 2% and 15% ahead of current consensus, says analyst Julian Roberts at Jefferies, and implies roughly 25p-35p of EPS versus a current consensus of 17.1p. ie 46% to 105% higher.
Elsewhere, Alpha Financial Markets Consulting is up another 3% on top of yesterday big jump, with the board formally backing a £626 million takeover by private equity group Bridgepoint.
The fund management consultant said investors will receive 505p a share in cash, with the transaction expected to be completed in the third quarter, subject to a shareholder vote.
Ken Fry, chairman of the fund management consultancy business, said the offer "recognises the quality and value of the business and represents an opportunity for Alpha FMC shareholders to realise their entire investment".
8.12am: Tentative start for FTSE indices
The FTSE 100 has opened modestly higher, climbing four points to 8209 in initial trades, while the FTSE 250 fell 17 points but has already started to pare these losses.
J Sainsbury PLC (LSE:SBRY) is top of the leaderboard so far, up 2% after agreeing a deal to offload its core banking business to NatWest Group PLC (LSE:NWG), even though it had to pay the lender £125 million to do it.
Natwest shares are up 0.5%.
Elsewhere, Tate & Lyle PLC (LSE:TATE) is down almost 7% as investors don't seem to like the sound of its $1.8 billion US acquisition and £215 million share buyback.
Putting that fall in the shade somewhat, YouGov PLC (AIM:YOU) has plunged 31% after issuing a profit warning due to lower sales, mostly in continental Europe.
7.58am: Tate & Lyle buys US ingredients rival
Double announcement from Tate & Lyle PLC (LSE:TATE), including a rare UK company-buys-US rival deal, where it is snapping up US rival CP Kelco for $1.8 billion.
Kelco is a provider of pectin, speciality gums and other nature-based ingredient.
The transaction would "significantly accelerate" the FTSE 250 group's strategy to become the "solutions partner of choice" for food and beverage companies, it said, also strengthening revenue growth and significantly boosting EBITDA margins over the next few years.
Cost synergies from the combination are expected to boost adjusted earnings per share from the second full financial year following completion, and be "strongly accretive" thereafter.
T&L also said it is launching a £215 million share buyback programme.
7.47am: YouGov profit warning
Despite its election polls being in great demand, YouGov PLC (AIM:YOU) has also put out a trading update this morning revealing lower sales bookings than expected.
The research and data analytics group now expects revenues for the year to 31 July will come in at £324-327 million.
Having invested in the business for an expected acceleration in growth in the second half, while there has been some improvement the growth "below expectations" so operating profits are expected to be £41-44 million, down from £48.3 million in 2023.
Geographically it said the most challenges were in the EMEA region, particularly in the DACH region (Germany, Austria and Switzerland).
7.35am: General election polling
With just two weeks left until the general election on July 4, Deutsche Bank's macro strategist Jim Reid has highlighted the latest polling, where another MRP poll from YouGov was released.
That showed Labour winning a 200-seat majority, with 425 seats in the House of Commons, beating their previous record in the 1997 landslide won by Tony Blair, he notes.
The poll also showed the Conservatives falling to 108 seats, down from 365 at the last election.
The Lib Dems significantly strengthened their presence as well, up to 67 seats, which would be the most seats for them or their predecessor Liberal Party since 1923.
In addition, the poll saw Nigel Farage winning a seat in Parliament for the first time, with his Reform UK party on five seats.
The Bank of England is the big focus today, says Reid, with the latest policy decision at the usual 12pm London time and "it’s widely anticipated they’ll leave rates unchanged at 5.25%".
DB’s UK economist has predicted there’ll be a 7-2 vote split again but that after the UK inflation print, the report "will raise the bar for a summer rate cut".
7.22am: Sainsbry's sells banking assets to NatWest
NatWest Group PLC (LSE:NWG) has struck a deal to buy most of Sainsbury's Bank from J Sainsbury PLC (LSE:SBRY), covering credit cards, personal loans and saving accounts, with Sainsbury's also paying £125 million to NatWest Group.
The lender said it expects to acquire roughly £2.5 billion of gross customer assets when the customers are transferred in the first half of next year, while the supermarket group will keep hold of its Sainsbury's Bank's insurance, ATMs and travel money commission incomes businesses.
"These are capital-light and profitable businesses with a strong connection to Sainsbury's core retail offer," the grocer says, while the sale of the other assets "means we will focus all our time and resources going forward on growing our core retail business, delivering great quality and value, week in week out".
This transaction is expected to have a 20 basis point impact on NatWest CET1 capital ratio once completed and be positive for earnings per share and the bank's return on tangible equity.
7.15am: FTSE 100 to open higher ahead of BoE meeting
The FTSE 100 is shaping up to extend gains for a second day on Thursday, ahead of the Bank of England policy decision later.
Spread-betters predict that London's blue-chip index will add another 18 points this morning, after finishing almost 14 higher at just above 8205 yesterday.
Asian markets are mixed overnight and into this morning, with Japan's and India's benchmarks rising slightly but the Hang Seng in Hong Kong and China's Shanghai Composite both down a touch.
US stock markets reopen today after yesterday's Juneteenth holiday break.
Back home, the BoE decision is one of three central bank policy meetings today, including Norway's Norges Bank and the Swiss National Bank, none of which are expected to act today.
The BoE's monetary policy committee is expected to keep the bank rate unchanged at 5.25% today, with all eyes on whether the number of votes changes from the seven members voting to keep rates and two members going for a cut last time.
There may be a slight change in communication this time, with the market and economists more confident that the first quarter-point rate cut will come in August.