Shares in Peloton surged in pre-market trading amid reports Amazon and Nike are eyeing up the home fitness firm for a potential takeover.
Peloton jumped as much as 27pc after it emerged the exercise bike maker had appointed advisers to explore options. Analysts have also pointed to Apple as a possible suitor.
It comes at a tumultuous time for Peloton, whose shares have collapsed more than 80pc from their high last January as it struggles to keep up momentum after lockdown.
Activist investor Blackwells Capital has been piling pressure on Peloton to put itself up for sale and fire chief executive Jon Foley amid “grave concerns” about its performance.
11:26 AM
THG shares fall amid takeover reports
Shares in The Hut Group dropped 5pc this morning following reports two private equity firms are weighing up a potential takeover.
Advent International and Leonard Green are both considering a move on the embattled ecommerce group, with executives from Advent recently visiting its offices in Manchester, the Sunday Times reported.
Shares jumped 16pc on Friday after news of the approaches first emerged, but they’re back on the slide again today. Neither THG nor the private equity firms have made any statement about the takeover interest.
11:12 AM
Oil eases back to $92 as rally takes a breather
Oil is finally taking a bit of a breather after a seven-week rally that’s seen prices surge to a seven-year high.
Benchmark Brent crude fell 0.7pc having risen as high as $94 a barrel. West Texas Intermediate shed more than 1pc.
Oil prices have been on the upward march as supply continues to lag behind demand, with many analysts expecting the $100 barrier to be broken.
Traders also continue to watch the Iran nuclear deal negotiations, with diplomats set to return to Vienna tomorrow. Last week the US signed several sanctions waivers related to Iran’s civilian nuclear activities, though Tehran said it still needs guarantees from Washington in order to revive the deal.
10:56 AM
Sunak’s energy aid plan ‘pathetic’, says Ecotricity boss
Rishi Sunak’s plan to give £200 to every British household to help soften the blow of energy price rises is “pathetic”.
That’s according to Dale Vince, chief executive of energy supplier Ecotricity, who warned there were further increases in the price cap ahead.
Mr Vince told Bloomberg that bills would be about £1,000 higher than they are today by October, adding that the Chancellor’s measures would add “another massive layer of complexity to energy bills”.
Instead the Ecotricity boss said he’d support a windfall tax on oil and gas companies.
Rishi Sunak last week announced a £200 repayable discount on household bills in October, while taxpayers in council bands A to D would get a further rebate of £150.
10:40 AM
Software firm WANdisco switches to four-day week
London-listed software company WANdisco has announced it’s permanently switching to a four-day working week, become one of the largest tech firms to do so.
The firm, which is headquartered in Sheffield and California, said expects the change to boost productivity and improve wellbeing for its workforce of around 180 people. Salaries will remain unchanged despite the reduction in working days.
WANdisco will allow employees to opt for a 40-hour working week spread over four days. Friday is expected to be the default non-working day for the majority of staff, though the scheme is flexible.
David Richards, chief executive and co-founder of WANdisco, said:
It may feel counterintuitive to many business leaders, but a four-day working week is now an inevitable economic reality for us all – and it’s only a matter of time before many others will follow suit.
We are proud that WANdisco is a pioneer in this area, and that we are keeping in step with the new economic and working patterns emerging from the pandemic.
10:22 AM
Vodafone raises prospect of abandoning Britain
Vodafone has opened the door to selling off its UK business as the FTSE 100 telecoms company comes under activist pressure, writes James Titcomb.
The company has reorganised its Global Enterprise unit, which sells telecoms and IT services to large corporations, under the codename “Project Galaxy”.
Analysts said the move, which brings the sprawling division under the control of local country offices, would make it easier to merge or spin off units in the UK as well as other countries.
Swedish investor Cevian Capital has been in discussions with Vodafone executives about upgrading performance and improving its languishing share price.
The changes to the Global Enterprise division, first reported by the Mail on Sunday, took place last year, before Cevian’s involvement.
10:09 AM
Gas prices fall as Russia steps up supplies
Natural gas dropped this morning as Russian supplies to Europe increased, while forecasts for mild weather helped ease worries over demand.
Shipments through Ukraine rose after declining late last week, though there are still no flows through the key Yamal-Europe pipeline to Germany.
Curbed supplies from Russia have been a key driver of price rises this winter, though traders are now also on edge about a potential conflict with Ukraine.
While temperatures are set to drop below normal at the weekend, forecasts for milder weather next week is helping to take out some of the sting.
Benchmark European prices fell 5.6pc, while the UK equivalent was down 5.7pc.
09:53 AM
How a secret TV job gave Peaky Blinders emperor his big break
ICYMI – Marco Bassetti of Banijay Group is responsible for a string of hits including Peaky Blinders and Master Chef, but he has a confession: he never watches the end of a TV series.
He talks to Ben Woods about streaming, Channel 4 and plans to cash in on the ‘metaverse’.
09:43 AM
Pound gains ground against euro
Sterling ticked higher against the euro, but held near its weakest levels in over a month after the ECB took a more hawkish tone towards monetary policy.
The pound dropped against the common currency last week after ECB president Christine Lagarde hinted she was no longer ruling out an interest rate rise this year.
Klaas Knot, another top official, fuelled further speculation by saying he expects a rate rise as early as in the fourth quarter.
Traders also have an eye on political developments. Boris Johnson made two appoints over the weekend as part of an overhaul at No 10 as he tries to cling on to power.
The pound gained 0.3pc against the euro to 84.40p. Against the dollar it dipped 0.1pc to $1.3520.
08:55 AM
LV restarts takeover talks with Royal London
LV has revived merger talks with rival Royal London after members of the mutual life insurer blocked a takeover by private equity firm Bain in December.
LV previously rejected a takeover approach by Royal London, but today said it had picked up discussions again to see how the firms could “co-operate to the benefit of both sets of members and the mutual sector”.
It comes after the group was plunged into crisis when members voted against a £530m takeover by Bain, saying they were not being sufficiently compensated for the loss of the insurer’s mutual status.
LV, which was founded 179 years ago, confirmed chairman Alan Cook will step down in April following the botched deal.
08:48 AM
German industry hit by supply chain troubles
German industry took another hit at the end of last year as supply chain troubles continue to hold back Europe’s largest economy.
Industrial output fell 0.3pc in December, missing estimates of a rise of 0.4pc.
It means production is still lagging almost 7pc below pre-pandemic levels as factories grapple with labour and raw material shortages.
The latest figures from the Ifo Institute also showed the number of German firms wanting to pass on prices has risen to record high.
08:35 AM
FTSE risers and fallers
After gaining as much as 0.5pc, the FTSE is now trading flat as investors take stock after last week’s interest rate decision.
Banks including HSBC, Lloyds and Barclays helped to provide some positive momentum, alongside miners Rio Tinto, Anglo American and Glencore.
But oil majors BP and Shell both fell alongside oil prices, capping gains for the index.
British Airways owner IAG rose 1.2pc to the top of the FTSE 100, while Reckitt Benckiser gained on reports it’s mulling a sale of its baby formula business.
The FTSE 250 rose 0.1pc after ending last week with marginal gains.
08:20 AM
Reckitt shares rise as it weighs sale of baby formula unit
Shares in Reckitt Benckiser advanced in early trading on reports the consumer goods giant is mulling a sale of its infant nutrition business.
The FTSE 100 firm, which sells brands including Enfamil formula, has been gauging buyer interest in the division, Bloomberg reported last week. Shares rose as much as 2.4pc.
A sale would mark a reversal of Reckitt’s largest ever purchase – its $17bn (£12.5bn) takeover of Mead Johnson Nutrition five years ago. Last year it sold its Chinese infant formula business for $2.2bn.
08:14 AM
Danish fund ditches Wizz Air stake over union row
A Danish pension fund has said it’s selling its $3m (£2.2bn) stake in Wizz Air after talks failed to resolve a dispute over the airline’s labour practices.
AkademikerPension said it will offload the shares after Wizz Air rebuffed a call for it to recognise staff rights concerning freedom of association and collective bargaining agreements.
Jens Munch Holst, the fund’s chief executive officer, said: “Management’s behavior conflicts with human and labor rights. The risk of being linked to a clear and persistent breach of our responsible investment policy is simply too high if we remain invested.”
While the stake is just a fraction of Wizz Air’s £4.3bn market value, the airline could face further pressure after London-based fund joined the campaign over labour rights.
08:05 AM
Pets at Home picks Sky chief as new boss
Taylor Wimpey isn’t the only firm with a new boss this morning.
Pets at Home says it’s chosen Lyssa McGowan as its chief executive. She’ll replace Peter Pritchard, who’s stepping down after leading a turnaround at the UK’s largest pet supplies retailer.
Ms McGowan has been at Sky for the last 11 years, most recently as chief consumer officer. She was also a non-executive director on the board of Morrisons until its recent sale to US private equity group Clayton, Dubilier and Rice.
She joins at a buoyant time for Pets at Home, which has cashed in on higher demand for pets during the pandemic and posted its first ever billion-pound year for sales in May.
08:00 AM
FTSE 100 starts the week higher
It’s a positive start to the week for the FTSE 100, which has nudged higher at the open.
The blue-chip index rose 0.1pc to 7,525 points.
07:53 AM
Spotify boss says silencing Joe Rogan ‘not the answer’
Spotify’s chief executive has apologised to staff for the controversy surrounding Joe Rogan, but said he wouldn’t drop the podcaster from the platform.
Videos emerged last week of Mr Rogan using the N-word in past episodes of his podcast. He apologised and several episodes have now been removed from Spotify.
The celebrity had already been under fire for spreading Covid misinformation on his show.
However, Spotify boss Daniel Ek doubled down on his decision to keep Mr Rogan on the streaming service.
“While I strongly condemn what Joe has said and I agree with his decision to remove past episodes from our platform, I realise some will want more,” he said in a letter to staff first reported by the Hollywood Reporter.
“I want to make one point very clear – I do not believe that silencing Joe is the answer. We should have clear lines around content and take action when they are crossed, but cancelling voices is a slippery slope.”
07:44 AM
Taylor Wimpey taps Jennie Daly as new boss
Housebuilder Taylor Wimpey has named Jennie Daly as its new chief executive.
Ms Daly, who is currently the firm’s operations director, will take up the role in April. She replaces Pete Redfern, who said in December he was stepping down after almost 15 years at the helm.
Taylor Wimpey said the appointment followed a “thorough recruitment and selection process” that included a longlist of industry and non-industry candidates.
Irene Dorner, chairman of Taylor Wimpey, said:
Jennie has extensive experience in the housebuilding sector and has demonstrated exceptional leadership and a razor-sharp operational focus.
Her strong focus on execution, combined with her customer and people-focused skills, set her apart from the other candidates we were considering. I look forward to continuing to work closely with her as we execute our next phase of growth.
07:39 AM
More expert reaction: Lack of stock keeping up prices
Nathan Emerson, chief executive of Propertymark, is confident prices will stay high due to a lack of stock.
It will be interesting to see how consumer confidence will be affected by last week’s first back-to-back interest rate rise since 2004 and the added pressures on household budgets that are coming down the line.
But as it stands prices remain inflated by a continued lack of stock, with our member agents reporting that the number of offers they are receiving on properties per month can be well into double figures and that sales are continuing to be agreed at over the asking price.
Lack of stock is an issue across all four UK nations and some agents say they are as much as 40-50pc down on last year. This is backed up by data in our final Housing Market Report of 2021 which showed a month-on-month reduction in the number of new instructions.
Until that trend begins to reverse, I would not expect to see any significant dampening of property prices.
07:36 AM
Expert reaction: Market can withstand stretched affordability
Jeremy Leaf, former RICS residential chairman, says house prices may still hold up under pressure.
Though price growth is slowing, these figures demonstrate the underlying strength of the market and how likely it is to withstand increasingly stretched affordability.
We know from what’s happening on the ground that the double-whammy of rising inflation and interest rates are already prompting some who thought prices could only go one way to request valuations and make properties available for sale.
On the other hand, supply still can’t keep up with demand, especially for family houses, and with around 50pc of homes owned outright there are many who are relatively unaffected by interest rate rises.
07:32 AM
House price growth slows
Russell Galley, managing director at Halifax, said:
House price growth slowed somewhat at the start of the year, rising by just 0.3pc in January, the smallest monthly increase since June 2021. This followed four consecutive months of gains above 1pc, and with annual growth remaining at 9.7pc, the average UK house price was little changed, edging up slightly to a new record high of £276,759.
Overall prices remain around £24,500 up on this time last year, and £37,500 higher than two years ago.
Following the peak activity of 2021, transaction volumes are returning to more normal levels. Affordability remains at historically low levels as house price rises continue to outstrip earnings growth.
Despite record levels of first-time buyers stepping onto the ladder last year, younger generations still face significant barriers to home ownership as deposit requirements remain challenging.
07:27 AM
Housing market set for cooldown
Good morning.
After a remarkable few years of growth, it looks like the UK house market may finally be poised for a slowdown.
The latest figures from Halifax show house prices rose just 0.3pc in January – that’s the slowest rate of monthly growth since June 2021.
On an annual basis the rate of growth is steady at 9.7pc, with prices at another record high of £276,759. But the cost-of-living crisis and higher interest rates mean the market is likely to run out of steam in 2022.
5 things to start your day
1) Homes risk energy rating downgrade if they install a heat pump: Energy scores for homes are to be overhauled by the government, amid fears that under the current system installing a heat pump could cut the value of properties.
2) Britain eclipses European rivals with fintech investment spree: Investment in financial technology firms hit a new high in Britain last year as the number of deals struck surpassed the combined total of those in France, Germany and China.
3) Britain’s debt pile to cost Rishi Sunak an extra £34bn: Rise in prices and rates mean interest payments could balloon
4) Richard Caring pulls out of battle for the Wolseley: Restaurateur’s decision a boost for rival Jeremy King’s preferred £38m takeover bid
5) ‘Abacha’s loot’: the global hunt for a Nigerian general’s stolen billions: West African nation sues the UK’s National Crime Agency, as the tale takes another twist
What happened overnight
Asian share markets mostly eased on Monday after stunningly strong US jobs data soothed concerns about the global economy but also added to the risk of an aggressive tightening by the Federal Reserve.
The cautious mood saw MSCI’s broadest index of Asia-Pacific shares outside Japan dip 0.3pc. Japan’s Nikkei fell 0.8pc and South Korea 0.4pc.
China returned from the Lunar New Year break with jumps in equities and commodities, with the blue-chip CSI300 and Shanghai Composite both up 1.6pc and 2pc respectively and metals and iron ore rallying in Shanghai.
Hong Kong’s Hang Seng, which returned from the break on Friday, fell 0.4pc.
Coming up today
