UK Security Review Clears Drahi’s BT Stake: The London Rush

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(Bloomberg) — Here’s the key business news from London-listed companies this morning.

BT Group Plc: The UK government has cleared Altice Europe NV’s stake in the telecommunications company on national security grounds.

Gatwick The London airport increased its traffic forecasts for the full year as a result of strong demand in the first half — despite the chaos that has plagued Europe’s travel hubs this summer.

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Mulberry Group Plc: Godfrey Davis, the British handbag maker’s chairman will step down from the board; he first joined the company as finance director in 1987. 

Abrdn Plc:  A year on from the asset manager’s eye-catching rebrand, Abrdn Plc’s blue-chip status hangs in the balance.

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Outside The City

Tory leadership frontrunner Liz Truss is preparing to fast-track an emergency budget to help people cope with surging energy costs, a person familiar with the matter told Bloomberg.  She would be able to short-circuit the usual oversight from the Office for Budget Responsibility if she wanted to deliver action before the Sept. 22 recess, since the OBR usually needs 10 weeks to prepare its estimates.

In Case You Missed It 

Inflation could soar past 18%, forcing the Bank of England to raise rates as high as 7% — that’s according to a note from Citigroup’s UK economist. Benjamin Nabarro said the consumer prices index of inflation will peak at 18.6% in January, the highest level since 1976, the year the UK sought a bailout from the International Monetary Fund. That prediction is largely driven by rising energy prices, which consultancy Cornwall Insight Ltd forecast will soar to £3,554 a year in October. 

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Meanwhile, the average two-year fixed-rate mortgage is now more than 4% in the UK, the first time since February 2013, according to data compiled by Moneyfacts Group Plc. Those rates are rising faster than the Bank of England is hiking its base rate.

And remote working has pushed central London’s office availability to the highest level in 15 years.

Finally, spare a thought for Britain’s nightclubs, who having survive extended pandemic closure now face rocketing energy bills and customers impoverished by the cost of living crisis. 

Looking Ahead

UK PMI data for August released later this morning will give us an insight into the likelihood the country will slip into a recession. Bloomberg Intelligence says UK composite PMI has proved “more resilient than measures of consumer sentiment in recent months,” despite its downward trend.

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