British stocks opened Wednesday’s session in positive territory following the conclusion of two-day US-China trade negotiations in London, while investor attention turned to Chancellor Rachel Reeves’ upcoming spending review announcement later in the day. At 07:10 GMT, the blue-chip FTSE 100 index advanced 0.3%, with the pound sterling weakening 0.3% against the US dollar to trade below $1.35. Meanwhile, Germany’s DAX index edged down 0.06% and France’s CAC 40 showed marginal gains of 0.1%.
US-China Trade Negotiations Update
The US and Chinese delegations wrapped up two days of intensive talks in London, reaching a preliminary framework agreement aimed at reviving the Geneva ceasefire deal and addressing ongoing trade tensions. The proposed plan includes potential mutual relaxation of export restrictions, particularly concerning rare earth minerals and semiconductors, though the agreement still requires formal approval from President Trump and China’s top leadership.
Chancellor’s Spending Review in Focus
Later today, Chancellor Rachel Reeves will present her comprehensive spending review, outlining funding allocations for all government departments over the coming years. This highly anticipated announcement comes as policymakers balance fiscal discipline with the need to support economic growth amid challenging macroeconomic conditions.
Assura Accepts £1.7bn Takeover Offer
Healthcare real estate company Assura plc saw its shares rise more than 2% after accepting a £1.7 billion all-cash takeover proposal from the Sana Bidco consortium, which is backed by private equity firms KKR and Stonepeak. The company had previously rejected a competing offer from Primary Health Properties plc due to concerns about the financial terms and implementation risks. The approved deal will see shareholders receive 60 pence per share in cash.
Regulatory Developments
The UK Competition and Markets Authority (CMA) announced it is assessing whether the proposed merger between delivery companies Evri and DHL could significantly reduce competition in the British market. While the regulator has invited feedback from stakeholders and the public, it emphasized that no formal investigation has been launched at this stage.
In another corporate development, GlobalData PLC confirmed it has terminated acquisition talks with private equity firm ICG following last month’s failed takeover attempt by KKR & Co LP. ICG has since stated it will not be making a formal offer for the company.
Cross-Border M&A Activity
Canadian firm WSP Global revealed plans to acquire UK-based environmental and engineering consultancy Ricardo for approximately £3.631 billion ($4.896 million), including debt. Under the terms of the agreement, Ricardo shareholders will receive 430 pence per share – a 28.4% premium to the company’s June 10 closing price.
These developments collectively shape the trading landscape, with trade negotiations, corporate M&A activity, and regulatory decisions all contributing to market dynamics as investors position themselves ahead of key economic data releases and policy announcements.
Related topics:
