Big gains for mega-cap commodity trading and mining Glencore this morning after news broke that it was back in formal talks with Rio Tinto over the possibility of being acquired in an all-share deal. The move would propel the combined group to being one of the biggest companies listed in London although notes from both parties stress that there’s no guarantee a deal will complete, whilst the note published by Rio also floats the idea that only part of the businesses might combine. The Glencore share price was up 8% in early trade.
A seasonal trading update from J Sainsbury this morning evidently left the market wanting more. Despiter reporting a six consecutive Christmas period of market share growth, reiterating profit guidance and improving free cashflow forecasts, investors gave the news a cold reaction. The Argos and general merchandise lines continue to underperform so despite management recommitting to capital return plans as well, the Sainsbury share price was more than 4% lower shortly after the open.
Shipping services group Clarkson published a short trading statement this morning. Details here were thin on the ground bunt underlying profits for the full year to 31st December are now expected to be not less than £90m, reflecting an improved second half performance as had been trailed in earlier corporate updates. The figure is materially lower than the £115m posted a year ago but against the macroeconomic backdrop, the news has been well received. The Clarkson share price was up 5% by 8.30am.
Most read news on Investegate this morning
Trading Statement - - Sainsbury (J) (SBRY)
