High street bookie Ladbrokes Coral has been snapped up by rival GVC (more below on this story). Bitcoin slumped heavily overnight, more than -15% at one point; at 7.45am the crypto currency was worth $13,723. Over the last week Bitcoin is down more than -27%. However Bitcoin's loss is Verge and Ripple's gain: both rival crypto currencies are more than +400% up in the last week alone.
This morning the pound was trading -0.04% down at 1.3380 while the euro looked a tad weaker, -0.12% lower against sterling at 0.8861, not helped by more Spanish political unease. Pro-independence Catalan separatists secured enough seats to form their own regional government, defying President Rajoy. Overall, separatists won 70 seats, enough to tip them over the 68-seat threshold needed to secure a government.
So Spanish instability looks set to continue – Spain’s worst political crisis for several decades. There was weak-ish trading in Asia on Friday though the general direction was up: the Asia Dow climbed +0.60% while the Sensex was +0.52% higher. The Nikkei edged +0.16% up to just over 22,900. A +1.14% rise for Samsung helped raise the South Korean Kospi, up +0.44%.
- UK FTSE 100 7,603.98 +1.05%
- DAX 13,109.74 +0.31%
- CAC 40 5,385.97 +0.62%
- Dow 24,782.29 +0.23%
- S&P 500 2,484.57 +0.20%
- Nasdaq 6,965.36 +0.06%
- Nikkei 225 22,902.76 +0.16%
- Gold 1,270.30 -0.02%
- Oil WTI 58.17 -0.33%
GVC bets on Ladbrokes Coral union
This morning Ladbrokes Coral confirmed it was being taken over by key rival GVC, owner of Sportingbet and Bwin. Last year Ladbrokes and Coral merged. GVC boss Kenneth Alexander says the deal is “truly exciting”.
For Ladbrokes shareholders it appears a +21.2% share gain since the offer period commenced though the deal is a share/cash mix; the final deal will be dependent on the outcome of the government's fixed-odds betting terminals review. It’s estimated the merger could offer savings of up to £100m a year.
“Ladbrokes Coral's significant retail presence and multi-channel know-how can assist GVC,” Ladbrokes said in a statement this morning, “in driving further online growth in both GVC and Ladbrokes Coral brands."
Embraer shares take off on Boeing talks
Overnight it emerged that Boeing was in discussions with Embraer, Brazil’s jet maker and world’s third biggest plane operator. It’s unlikely the Brazilian government will let Embraer, whose shares surged more than +20% on the news, go without a scrap. Brazilian daily Folha claims President Michel Temer will not let Embraer be sold on his watch – Brazil has few world-class companies. Also, Temer also has elections to face in 2018.
There are undoubted synergies for Boeing: Embraer is deeply embedded in the US local jet market, fighting Bombardier in the key 100-150 plane seat market. It also has a modest but significant defence arm with the Brazilian government.
The FT claims that talks between the two sides commenced before Bombardier and Airbus announced their recent tie-up. “If you look at the combination and the synergies that would emerge this makes sense. The two companies do not compete,” a source told the paper.
Breaking news: Carillion says it has an agreement with lenders to delay more debt tests. "We remain focused on actively progressing a constructive dialogue with our financial stakeholders on the group's recapitalisation plans," the company said in a statement.