Search

Next week, UK banks will be in focus during Europe's reporting season. Barclays Plc will give a long-awaited strategy update, while Lloyds Banking Group Plc's results may be subdued due to weakened revenue prospects and potential increases in loan provisions. Rising defense spending in Europe likely boosted income for Rolls-Royce Holdings Plc and BAE Systems Plc. Additionally, reports from Carrefour SA, JDE Peet's NV, Danone, and Nestle SA will provide insight into shopper sentiment as inflation slows. [Extracted from the article]

Short seller Carson Block announced at the Sohn conference in London that he is shorting the shares of Elf Beauty Inc. due to concerns about the company's revenue. Block suspects that Elf Beauty has overstated revenue and that a buildup in inventory is a result of lackluster sales. Elf Beauty reported $301 million in net sales for the quarter through September, exceeding Wall Street projections, but its stock dropped 16% after Block's announcement. Muddy Waters, Block's firm, has taken at least four new short positions in the past year, with a history of successful bets against companies. [Extracted from the article]

(Bloomberg) -- Short seller Carson Block said he's shorting the shares of cosmetics brand Elf Beauty Inc.Speaking at the Sohn conference in London on Wednesday, the chief executive officer of Muddy Waters Capital said he is shorting the stock because he has concerns linked to the Oakland, California-based firm's revenue.A representative for the beauty company did not immediately respond to a request for comment.©2024 Bloomberg L.P.By Nishant Kumar and Leonard KehnscherperReported by Author; Author [Extracted from the article]

Hedge fund managers presented a variety of investment ideas at the Sohn conference in London, including long bets on companies like Pennon Group Plc and Spotify Technology SA, as well as short positions on firms like Elf Beauty Inc. and Cargojet Inc. Activist campaigns were also discussed, such as CIAM's opposition to Vivendi SE's spinoff plans. The event highlighted diverse perspectives on the investment landscape following the re-election of Donald Trump as US President. [Extracted from the article]

Abrdn Plc is undergoing a leadership shake-up under new CEO Jason Windsor, with Rene Buehlmann being replaced as head of the asset-management unit by Xavier Meyer. Richard Wilson has been appointed as the new group chief operating officer, and a new operating committee has been formed to focus on improving the company's performance. Windsor aims to reverse outflows, increase profit margins, and boost the company's stock value, following previous efforts by former CEO Stephen Bird to cut costs and jobs. [Extracted from the article]

Jupiter Fund Management Plc is strengthening its European equities business by hiring three investment professionals from Swiss rival GAM Holding AG. Niall Gallagher, Chris Sellers, and Chris Legg will join Jupiter next year, bringing with them about £1.4 billion of European equity strategies. Jupiter aims to have the trio oversee its European equity fund range by the summer of 2025, as it works to reverse client redemptions and diversify its offerings under CEO Matthew Beesley's leadership. GAM, on the other hand, continues to face challenges with declining assets and is working to rebuild its business after a takeover by an investor group led by French billionaire Xavier Niel. [Extracted from the article]

Segro Plc has agreed to purchase €470 million worth of Tritax EuroBox Plc's property portfolio following Brookfield Asset Management's takeover of Tritax. This acquisition represents about 31% of Tritax's total holdings and will be paid in cash, with the actual price reflecting any minority interests. The deal comes amidst expectations of a rebound in warehouse values, with private equity firms showing interest in take-private deals for warehouse owners. [Extracted from the article]

Schroders Plc is undergoing a restructuring under new CEO Richard Oldfield, reducing its executive committee size to nine members from 22 to enhance agility and address financial challenges. Oldfield aims to simplify the business structure and potentially implement wider cost-cutting measures. The company's stock has declined significantly in recent years, prompting the leadership change and strategic review of its various business divisions, including private markets. Despite speculation of a takeover, Schroders remains focused on improving operations and client offerings. [Extracted from the article]

Schroders Plc is undergoing significant changes under new CEO Richard Oldfield, who is reducing the executive committee from 22 members to 9 in an effort to boost growth. The company's stock has declined by over 50% in the past three years, prompting Oldfield to consider wider cost-cutting measures. Schroders, managing £777 billion in assets, is facing challenges in its private markets division and is aiming to streamline operations and enhance its client proposition. [Extracted from the article]

Schroders Plc experienced a significant drop in shares following a report of £2.3 billion in quarterly outflows and a warning of an additional £10 billion. The firm's stock fell by as much as 14% in London trading, marking the largest intraday decline since March 2020. Analysts have raised concerns about Schroders' high cost base and slower organic growth in private markets, as the company faces challenges in the active asset management industry. [Extracted from the article]

Schroders Plc experienced a significant drop in shares following a report of £2.3 billion in quarterly outflows, with an additional £10 billion expected. The firm saw outflows from its solutions and institutional divisions, while private markets and wealth management units had net inflows. The soon-to-be CEO, Richard Oldfield, acknowledged the need for greater commercial discipline and potential cost-cutting measures in the future. [Extracted from the article]

Schroders Plc experienced a significant drop in shares following £2.3 billion of quarterly outflows, with more expected in the future. The firm saw redemptions from its solutions and institutional divisions, while private markets and wealth management units had net inflows. The soon-to-be CEO, Richard Oldfield, emphasized the need for greater commercial discipline and simplification to address challenges faced by the company. [Extracted from the article]

Schroders Plc experienced £2.3 billion in outflows in the last quarter, with expectations of further outflows in the current quarter due to legacy mandates and client losses. The incoming CEO, Richard Oldfield, will be taking over from Peter Harrison amidst challenges faced by the firm. Despite being the UK's largest standalone asset manager, Schroders has seen a decline in its shares and criticism for its cost base and slower growth in private markets. [Extracted from the article]

Marsh, an insurance broker, is offering contracts to protect companies from fraud in the carbon credit market, where allegations of greenwashing have been prevalent. The insurance will provide financial protection to companies in the US, Europe, and the UK if the carbon credits they purchase turn out to be worthless. This initiative aims to address the widespread evidence of fraud in the carbon credit market and help companies offset their carbon footprints more effectively. Other companies, such as Howden Group, are also entering the market to provide insurance coverage for carbon credits. [Extracted from the article]

The UK markets watchdog, the FCA, plans to take action against Crispin Odey for a "lack of integrity" in response to allegations of sexual misconduct. Odey's actions were deemed to have frustrated the disciplinary process at Odey Asset Management, leading to his removal from the firm he founded. Despite facing restrictions, Odey rejoined the company earlier this year, potentially to manage his substantial fortune. [Extracted from the article]

The Financial Conduct Authority (FCA) plans to take action against Crispin Odey for a "lack of integrity" in response to allegations of sexual misconduct. Odey, founder of Odey Asset Management, faced multiple allegations of sexual harassment and assault, leading to turmoil within the firm. Despite being removed from the company, Odey rejoined as a director, but OAM is no longer authorized by the FCA to manage customer money. Odey's motives for rejoining the firm remain unclear, but it may help him manage his substantial fortune. [Extracted from the article]

Janus Henderson Group Plc has experienced two consecutive quarters of client inflows, indicating improved performance. Investors added $400 million to the firm's funds in the third quarter, leading to a 5.8% increase in assets under management to $382 billion. CEO Ali Dibadj acknowledged the positive momentum while emphasizing the ongoing work needed for continued success. The company, formed in 2017 from a merger, has seen its shares rise by 37% this year and made strategic acquisitions to expand into alternative investments markets. [Extracted from the article]

A consortium led by Fortress Investment Group and BlackRock Inc. is considering a joint bid for German life insurance consolidator Viridium Group, valued at about €3 billion. Other potential bidders include Blackstone Inc., DWS Group, Partners Group, Assicurazioni Generali SpA, Apollo Global Management Inc.'s Athora affiliate, and Sixth Street. The sale process is in its early stages, with discussions ongoing and no certainty on the final outcome. Viridium, based near Frankfurt, manages around €67 billion in assets and was founded in 2014 by Cinven and Hannover Re. BlackRock, known for expanding its presence in private markets, may be a minority investor in the consortium. Regulators are closely monitoring private equity ownership following the administration of Italian insurance consolidator Eurovita, also backed by Cinven, due to solvency issues. [Extracted from the article]

Chrysalis Investments Ltd has increased the valuation of its stake in Klarna to £120.6 million, implying a valuation of around $14.6 billion for the financial technology company. This move was influenced by the share price appreciation of Klarna's listed peers, such as Affirm Inc. and PayPal Holdings Inc. Despite internal boardroom turbulence, Klarna is preparing for a potential IPO with a targeted valuation of around $20 billion in the first half of 2025. Chrysalis anticipates generating £200 million in potential liquidity from Klarna's IPO and other planned sales, with plans to return up to £100 million to shareholders and potentially start a new investment program focused on late-stage private companies. [Extracted from the article]

A consortium led by Mubadala Capital's Fortress Investment Group and BlackRock Inc. is considering a joint bid for German life insurance consolidator Viridium Group, valued at about €3 billion. Other potential suitors include Blackstone Inc., DWS Group, Partners Group, Assicurazioni Generali SpA, Apollo Global Management Inc.'s Athora affiliate, and Sixth Street. Viridium, one of the largest asset managers of legacy insurance policies, is attracting interest from various parties, with initial meetings set to take place soon. The sale process is in its early stages, and some bidders may collaborate later on. Regulators are closely monitoring private equity ownership in light of recent events in the industry. [Extracted from the article]

Abrdn Plc experienced a significant drop in its shares after clients withdrew £3.1 billion from its funds in the last quarter, primarily from equities funds. The outflows highlight the challenges faced by the firm's new CEO, Jason Windsor, who took over after his predecessor's departure. Despite the outflows, Abrdn's assets under management and administration remained stable at £506.7 billion, with positive market movements and inflows into its retail broker platform helping to offset the losses. The company has been implementing cost-cutting measures, including job cuts, to address its financial difficulties in a challenging industry environment. [Extracted from the article]

Abrdn Plc experienced £3.1 billion in outflows in the third quarter, primarily due to clients withdrawing money from its equities funds. Despite this, the firm's assets under management and administration remained stable at £506.7 billion, with positive market movements and inflows into its retail broker platform helping to offset the outflows. The company recently appointed Jason Windsor as its permanent CEO, following a period of leadership changes and cost-cutting measures in response to years of outflows and job cuts. [Extracted from the article]

DWS Group, the investment arm of Deutsche Bank AG, experienced net inflows of €18.3 billion in the third quarter, surpassing analyst expectations. The company saw improvements in its cost guidance for the year, indicating a positive performance recovery. Despite outflows in certain areas like active equity and multi-asset funds, DWS is focusing on growing its alternatives business and expanding its presence in markets like India and China through strategic partnerships with asset managers. The firm's cost-to-income ratio for 2024 is expected to be at the lower end of its previously guided range. [Extracted from the article]

DWS Group, the investment arm of Deutsche Bank AG, experienced net inflows of €18.3 billion in the third quarter, surpassing analyst expectations. The company saw improvements in its cost guidance for the year, indicating a positive performance recovery. Despite outflows in certain funds, DWS has been focusing on growing its alternatives business to attract more fees and capital. The firm's adjusted pretax profit increased by 5% from the previous quarter, and its assets under management reached €963 billion. [Extracted from the article]

A survey of 250 institutional investors in the UK, Europe, and the Middle East conducted by asset manager PGIM Inc. revealed that firms catering to ultra-wealthy clients are planning to increase their allocations to private credit. Family offices, private banks, foundations, and endowments are expected to boost their investments in the $1.7 trillion asset class over the next two years. While insurers and pension funds are likely to maintain their current allocations to private credit due to investment limits, 44% of respondents overall expressed intentions to increase their holdings in private credit. [Extracted from the article]

Jupiter Fund Management has experienced further outflows of £1.6 billion in the third quarter, bringing the total outflows for the year to £5 billion. The departures of key managers have contributed to these outflows, with changes to the Value equity team being a significant factor. The company's total assets under management have also declined by 2.3% to £50.1 billion. Jupiter has been facing challenges in the asset management industry, including fee pressure from passive rivals, and the departure of manager Ben Whitmore has added to the pressure. CEO Matthew Beesley has been working to diversify the firm's offerings and reverse the withdrawals, including acquiring a team and assets from boutique firm Origin. [Extracted from the article]

Jupiter Fund Management has experienced further outflows of £1.6 billion in the third quarter, bringing the total outflows for the year to £5 billion. The departures of key managers, including Ben Whitmore, have contributed to the outflows. Jupiter has been facing challenges in the asset management industry and has been seeking to diversify its offerings to reverse the withdrawals. The company recently announced the acquisition of a team and assets from boutique firm Origin as part of its push into emerging markets. [Extracted from the article]

LGT Capital Partners, an alternative investment firm owned by the royal family of Liechtenstein, is launching a new hedge fund vehicle that allows institutional investors and wealthy individuals to invest in the same strategies used by the family's endowment. The fund plans to invest in over 30 hedge fund managers globally, aiming to deliver absolute returns with downside risk mitigation in any market environment. LGT Capital currently manages over $100 billion across various strategies and has more than $7 billion in its hedge fund portfolios. The LGT endowment's hedge fund strategies have reportedly had an average annual return above the risk-free rate. [Extracted from the article]

REA Group Ltd., a company owned by media mogul Rupert Murdoch, has made a fourth takeover proposal for UK property portal Rightmove Plc, valuing the company at £6.2 billion ($8.7 billion). Rightmove has previously rejected REA's proposals but will consider the latest cash-and-stock package. The offer values Rightmove shares at 775 pence each, plus a special dividend of 6 pence per share. Rightmove's board will review the proposal, and shareholders are advised to take no action at this time. The UK's leading property listings website is expected to benefit from declining interest rates and government planning reforms. [Extracted from the article]

REA Group Ltd., a company owned by media mogul Rupert Murdoch, has made a fourth takeover proposal for UK property portal Rightmove Plc, valuing the company at £6.2 billion ($8.7 billion). Rightmove has previously rejected REA's proposals but will consider the latest cash-and-stock package. The offer values Rightmove shares at 775 pence each, plus a special dividend of 6 pence per share. Rightmove's board will review the proposal, and shareholders are advised to take no action at this time. The UK's leading property listings website is expected to benefit from declining interest rates and government planning reforms. [Extracted from the article]

REA Group Ltd., which is part of Rupert Murdoch's media empire, has made a fourth takeover proposal for UK property portal Rightmove Plc. The indicative offer values Rightmove at about £6.2 billion, which is 11% higher than REA's initial bid and 41% above Rightmove's market price before the takeover interest emerged. Rightmove's board will consider the latest proposal, and shareholders are advised to take no action at this time. REA has expressed disappointment at Rightmove's repeated rejections of its prior proposals and has requested an extension to the regulatory deadline to make a formal offer. [Extracted from the article]

REA Group Ltd., a company owned by media mogul Rupert Murdoch, has made a fourth takeover proposal for UK property portal Rightmove Plc. The offer values Rightmove at about £6.2 billion, which is 11% higher than REA's initial bid and 41% above Rightmove's market price before the takeover interest emerged. Rightmove has repeatedly rejected REA's prior proposals and has not held any meetings with the company. However, REA has been in contact with Rightmove's shareholders, who would hold about 20% of the combined group's shares based on the latest offer. [Extracted from the article]

Schroders Plc has announced the appointment of Meagen Burnett as its new chief financial officer and the addition of Chief Investment Officer Johanna Kyrklund to the board. Burnett, who joined Schroders last year, will be taking over from Richard Oldfield, who will become the CEO on November 8. Kyrklund, who has been the investment chief since 2019, will now be responsible for overseeing investment performance across all business lines. Both Burnett and Kyrklund were considered for the CEO position at Schroders. [Extracted from the article]

According to Paul Kelly, global head of alternative assets at DWS Group, the worst of the real estate market's downturn is likely over due to central banks' monetary-easing cycle. Deal volumes have been increasing and overall sentiment is improving. Kelly also mentioned positive discussions around funding for real estate projects and fewer redemption requests from investors. DWS, the asset-management unit of Deutsche Bank AG, recently hired four people from JPMorgan Chase & Co.'s asset-management arm to expand their US real estate credit business and private credit platform. [Extracted from the article]

Legal & General Group Plc, a British financial-services firm, has agreed to sell homebuilder Cala Group to alternative-asset managers Sixth Street Partners and Patron Capital. The deal is valued at £1.35 billion ($1.8 billion) and will result in cash proceeds of £1.16 billion. Legal & General plans to use the proceeds for its own growth and may also consider buying back shares. The sale comes as the UK housing market shows signs of revival, with increased optimism among home-sellers. The deal is expected to be completed in the fourth quarter of the year. [Extracted from the article]

Legal & General Group Plc has agreed to sell British homebuilder Cala Group to Sixth Street Partners and Patron Capital. The deal is valued at £1.35 billion and will result in cash proceeds of £1.16 billion. Legal & General will use the proceeds to invest in the company and may also consider buying back shares. The deal is expected to be completed in the fourth quarter of the year and will reduce Legal & General's solvency capital requirement by about £100 million. This sale comes after a challenging year for the UK housing market. [Extracted from the article]

(Bloomberg) -- Legal & General Group Plc agreed to sell British homebuilder Cala Group to funds managed by Sixth Street Partners and Patron Capital.The deal will give Cala Group an enterprise value of £1.35 billion ($1.8 billion) and result in cash proceeds of £1.16 billion, L&G said in a statement on Wednesday. Cala's net asset value stood at £1.15 billion at end of the half-year 2024 and it generated operating profits of £42 million, according to the statement.©2024 Bloomberg L.P.By Leonard KehnscherperReported by Author [Extracted from the article]

Barclays Plc has recommended that the UK government review the stamp duty reserve tax (SDRT) on share purchases in order to boost the country's stock market. The SDRT is a 0.5% transaction levy that currently applies to share dealings on the main London Stock Exchange. Barclays argues that scrapping the tax for the main market would increase liquidity and make London more attractive for listings. However, eliminating the stamp duty would come at a cost, as the Treasury raised £3.8 billion ($5 billion) from SDRT in fiscal 2023. Other recommendations from Barclays include ending the requirement for a company to publish a prospectus when moving to the main market and sustaining tax reliefs for investors in AIM-listed companies. London has faced challenges as a listing venue, with companies opting to move to New York due to higher valuations in the US. [Extracted from the article]

Barclays Plc has recommended that the UK government review the stamp duty reserve tax (SDRT) on share purchases in order to boost the country's stock market. The SDRT is a 0.5% transaction levy that currently applies to share dealings on the main London Stock Exchange. Barclays argues that scrapping the tax for the main market would increase liquidity and make London more attractive for listings. This recommendation follows similar calls from the Capital Markets Industry Taskforce. The Treasury raised £3.8 billion ($5 billion) from SDRT in fiscal 2023. Other recommendations from Barclays include ending the requirement for a company to publish a prospectus when moving to the main market and sustaining tax reliefs for investors in AIM-listed companies when they switch to the main market. [Extracted from the article]

Goldman Sachs is expanding its presence in Birmingham, UK, by hiring more workers for its new office in the city. The move is part of the bank's strategy to expand in lower-cost European cities outside of traditional financial hubs like London. The company already employs about 400 people in Birmingham and plans to attract more local talent after relocating to new premises that can accommodate up to 1,000 staff. This expansion reflects Goldman Sachs' efforts to reshape its operations geographically while reducing expenses. Other banks, including JPMorgan, Citigroup, Bank of America, and Bank of New York Mellon, have also been hiring in cheaper locations outside of London. The presence of these financial institutions in Birmingham has been beneficial for the city, which has faced challenges such as high youth unemployment and a financial crisis. Despite Brexit, Goldman Sachs has reaffirmed its commitment to the UK by opening a new building in London that employs 6,000 workers. The UK government is seeking to attract more investment to the country, and the presence of companies like Goldman Sachs is seen as crucial for developing a tech-based economy and creating new jobs. Other banking giants, such as JPMorgan and Barclays, have also been expanding their operations in cities outside of London. The availability of talent in these smaller cities is a significant attraction for these companies. [Extracted from the article]

Abrdn Plc has appointed Jason Windsor, its former finance chief and interim CEO, as the new CEO of the troubled asset manager. Windsor expressed optimism about the potential for growth in Abrdn's core businesses. He takes over from Stephen Bird, who stepped down earlier this year. Abrdn has faced significant challenges, including outflows and job cuts, and Windsor will be tasked with turning the company around. Schroders Plc, a rival asset manager, also announced the appointment of a new CEO, Richard Oldfield. [Extracted from the article]

Jason Windsor, former finance chief and interim CEO of Abrdn Plc, has been appointed as the new CEO of the troubled asset manager. Windsor expressed optimism about the potential for growth in Abrdn's core businesses and plans to generate a significant improvement in performance. He is seen as a safe choice for the position, with over three decades of experience in the financial industry. Abrdn has faced challenges in recent years, including outflows and job cuts, as it attempted to diversify its investment offerings. The previous CEO's strategy to transform the company was unsuccessful, resulting in significant outflows and a decline in stock price. [Extracted from the article]

Richard Morecombe, a British investment banker and co-founder of corporate broker Numis, has passed away at the age of 60. His employer, Panmure Liberum, described him as a constant source of energy and inspiration. Morecombe had a career spanning over 35 years in the City of London's corporate broking scene, specializing in small- and mid-sized firms. He was also a co-founder and CEO of boutique broker Whitman Howard before its acquisition by Panmure Gordon. Morecombe later became head of origination and business development after Panmure's merger with Liberum. [Extracted from the article]

Jonathan Bloomer, chairman of Morgan Stanley International and former CEO of Prudential Plc, was among the fatalities in the sinking of a luxury yacht off Italy on August 19. His wife, Judy, and British tech tycoon Mike Lynch, who had been acquitted in a trial where Bloomer was a defense witness, also died in the incident. Bloomer had a successful career in finance, holding senior roles at Prudential and later becoming chair of Morgan Stanley's European business. He was known for his leadership and open management style. [Extracted from the article]