“,”elementId”:”e26228d7-207e-4c9c-b6c5-19a6d77cbc95″},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”
The packaging firm Mondi, based in Weybridge, has pounced on smaller rival DS Smith and agreed an all-share deal worth £5.14bn, which will create a paper and packaging group worth more than £10bn. Both companies said:
“,”elementId”:”eb496172-9fc5-4971-8d78-c1cee136f9dd”},{“_type”:”model.dotcomrendering.pageElements.BlockquoteBlockElement”,”html”:”
n
The combination is an exciting opportunity to create a pan-European industry leader in paper-based sustainable packaging solutions.
n
“,”elementId”:”5db8368b-dadb-482a-8206-c66cf5cb2a02″},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”
The London-listed company is to be bought out as wealth manager Mattioli Woods agreed to a £432m offer from the London-based private equity firm Pollen Street Capital.
“,”elementId”:”4fa6f434-7212-4841-bcfe-dbfce8c972b2″},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”
Private equity firms and some industry firms have been snapping up British assets because they are considered cheap, as sterling remains weak following Brexit, the Covid pandemic and the disastrous mini-budget 1 1/2 years ago.
“,”elementId”:”8e9de33e-dd45-4d58-bca0-720363930e9c”},{“displayCredit”:true,”_type”:”model.dotcomrendering.pageElements.ImageBlockElement”,”role”:”inline”,”media”:{“allImages”:[{“index”:0,”fields”:{“height”:”4739″,”width”:”7899″},”mediaType”:”Image”,”mimeType”:”image/jpeg”,”url”:”https://10xwealthreport.com/wp-content/uploads/2024/03/echo/7899.jpg?width=480&quality=45&auto=format&fit=max&dpr=2&s=f464fa6ed737062b795bc2d300c1bd53″,”width”:960}]}],”data”:{“alt”:”The DS Smith Impact Centre illustrates the ‘end to end journey of packaging from creation through logistics through retail space or e-commerce journey into customer’s homes’.”,”caption”:”The DS Smith Impact Centre illustrates the ‘end to end journey of packaging from creation through logistics through retail space or e-commerce journey into customer’s homes’.”,”credit”:”Photograph: Joshua Bright/The Guardian”}},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”
Yesterday, Nationwide building society agreed to buy its high-street rival Virgin Money for nearly £3bn in the largest UK banking deal since the 2008 financial crisis.
“,”elementId”:”8898f7ad-9ce3-4988-994d-1ee0d9c22ecc”},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”
The two lenders have reached a preliminary agreement on the key terms of the takeover, which – if approved – would narrow competition with the big four banks. It would create a combined group with £366bn in total assets, nearly 700 branches and more than 23 million customers.
“,”elementId”:”32a51fbd-7e51-46c0-8514-0a0bcc203565″},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”
Buying Virgin Money, the UK’s sixth-largest retail bank, would also solidify Nationwide’s position as the second-largest mortgage lender behind Lloyds Banking Group, according to data gathered by the industry body UK Finance on outstanding home loans.
“,”elementId”:”6a9a31e3-ae1d-442a-bbd9-ab57cbc2bdf5″},{“_type”:”model.dotcomrendering.pageElements.RichLinkBlockElement”,”prefix”:”Related: “,”text”:”Nationwide to buy Virgin Money in £2.9bn deal”,”elementId”:”e603e424-d690-43c4-9f89-4ea20492216d”,”role”:”thumbnail”,”url”:”https://www.theguardian.com/business/2024/mar/07/nationwide-to-buy-virgin-money-in-29bn-deal”}],”attributes”:{“pinned”:false,”keyEvent”:true,”summary”:false},”blockCreatedOn”:1709885257000,”blockCreatedOnDisplay”:”03.07 EST”,”blockLastUpdated”:1709886936000,”blockLastUpdatedDisplay”:”03.35 EST”,”blockFirstPublished”:1709885930000,”blockFirstPublishedDisplay”:”03.18 EST”,”blockFirstPublishedDisplayNoTimezone”:”03.18″,”title”:”Packaging firm Mondi buys DS Smith; wealth manager Mattioli Woods to be taken private”,”contributors”:[],”primaryDateLine”:”Fri 8 Mar 2024 03.36 EST”,”secondaryDateLine”:”First published on Fri 8 Mar 2024 02.43 EST”},{“id”:”65eab6d98f08480e4918b94e”,”elements”:[{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”
Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy.
“,”elementId”:”b3745b8d-c05b-4ea5-aa73-3c3a69d2f8ec”},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”
Mike Ashley’s Frasers Group is putting Matchesfashion into administration, just weeks after buying the online luxury clothing retailer, putting hundreds of jobs in jeopardy.
“,”elementId”:”5bfcbf00-a0eb-4c47-ac35-4b879e6170b5″},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”
Frasers bought the firm – which sells fashion brands including Balenciaga, Gucci, Prada, Stella McCartney and Valentino – for £52m from the private equity firm Apax in late December. According to reports, Teneo is being appointed as administrators.
“,”elementId”:”8d9e38fd-a620-48fb-832e-c09364088291″},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”
In a statement to the stock exchange, Frasers said:
“,”elementId”:”88731f22-4f38-4056-8d45-10fc203bf636″},{“_type”:”model.dotcomrendering.pageElements.BlockquoteBlockElement”,”html”:”
n
Since Frasers acquired Matches, the business has consistently missed its business plan targets and, notwithstanding support from the group, has continued to make material losses. Whilst Matchess’ management team has tried to try to find a way to stabilise the business, it has become clear that too much change would be required to restructure it, and the continued funding requirements would be far in excess of amounts that the group considers to be viable.
n
In light of this, Frasers has been informed that the directors of Matches have taken the decision to put the Matches group into administration. Frasers remains committed to the luxury market and its brand partners.
n
“,”elementId”:”70b90990-7820-497b-aa27-aa774d0533ef”},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”
The news was first reported by Sky News.
“,”elementId”:”9d8a2797-5b6b-4878-aaee-2490f65ed0bc”},{“_type”:”model.dotcomrendering.pageElements.TweetBlockElement”,”source”:”Twitter”,”id”:”1765797619228348869″,”elementId”:”b4de8d5a-8dab-4d9b-88af-a7d234c9d33d”,”hasMedia”:false,”role”:”inline”,”url”:”https://twitter.com/MarkKleinmanSky/status/1765797619228348869″,”isThirdPartyTracking”:false,”html”:”
Exclusive: Mike Ashley’s Frasers Group is putting Matchesfashion, the luxury online clothing platform it bought in December for £52m, into administration following weaker trading and the departure of a number of brands; a stock exchange announcement is likely tomorrow. More soon.
— Mark Kleinman (@MarkKleinmanSky) March 7, 2024
“},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”
Asian shares have hit a seven-month high, after investors were cheered by hints for potential interest rate cuts in the summer, and ahead of a key US jobs report today.
“,”elementId”:”7891874e-bef7-483e-adfe-3d766f6190c1″},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”
They followed in the footsteps of higher US stocks, and the S&P 500 hit a record closing high of 5,157.34, up more than 1%, as the US Federal Reserve chief indicated rate cuts are likely to come this year.
“,”elementId”:”c93a4ecd-e86e-4da7-b86d-0e96913ea939″},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”
MSCI’s broadest index of Asia-Pacific shares outside Japan peaked at 538.47 points, its highest level since August. Japan’s Nikkei rose 0.2% while Hong Kong’s Hang Seng gained 1.3% and the Shanghai Composite climbed 0.6%.
“,”elementId”:”a8d474dc-93fb-49bc-9b83-cbb46153da4f”},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”
The European Central Bank kept interest rates unchanged yesterday and its president Christine Lagarde, who had been pushing back against the idea of early rate cuts, said at the press conference:
“,”elementId”:”f7bec642-d8f5-4640-8f90-1228590dd505″},{“_type”:”model.dotcomrendering.pageElements.BlockquoteBlockElement”,”html”:”
n
We did not discuss cuts for this meeting, but we are just beginning to discuss the dialling back of our restrictive stance.
n
“,”elementId”:”3b1eb63f-71ad-4057-be54-2556dfcde061″},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”
She hinted strongly that this could happen at the ECB’s 6 June meeting, when wage data for the first quarter will have been published.
“,”elementId”:”21e018a7-831b-4e54-986c-bc9dce440569″},{“_type”:”model.dotcomrendering.pageElements.BlockquoteBlockElement”,”html”:”
n
We will know a little more in April, but we will know a lot more in June
n
“,”elementId”:”6727569c-ba6c-410e-bdd1-b2fb60087903″},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”
US Federal Reserve chair Jerome Powell struck a similar tone on the path of US rates. He said yesterday the US central bank was “not far” from gaining the confidence it needs in falling inflation to begin cutting borrowing costs. He told the Senate Banking Committee:
“,”elementId”:”cf2e83ce-8a71-44ae-83b3-08f175cb2f50″},{“_type”:”model.dotcomrendering.pageElements.BlockquoteBlockElement”,”html”:”
n
I think we are in the right place. We are waiting to become more confident that inflation is moving sustainably down to 2%. When we do get that confidence, and we’re not far from it, it will be appropriate to begin to dial back the level of restriction so that we don’t drive the economy into recession.
n
“,”elementId”:”b67905df-87ad-4add-8921-b919ad83a811″},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”
In Germany, industrial production rose by 1% in January from the previous month, but December’s decline was revised to 2% from 1.6%.
“,”elementId”:”65515f32-5ae7-41bc-9909-9342d2b0d498″},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”
Construction recovered alongside the chemical and food industries and machine maintenance and assembly, while carmakers posted a 7.6% slump, official data showed this morning.
“,”elementId”:”ccc107eb-5997-4fe9-8e60-c5de6ee4c08a”},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”
The Agenda
“,”elementId”:”a8b31251-364e-43a5-b1be-63a5e596da56″},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”
- n
-
10am GMT: Eurozone fourth-quarter GDP third estimate (forecast: 0%)
-
1.30pm GMT: US non-farm payrolls for February (forecast: 200,000)
n
n
“,”elementId”:”a6644a37-5323-43ad-b8d0-fc7e7ddd233a”}],”attributes”:{“pinned”:false,”keyEvent”:true,”summary”:false},”blockCreatedOn”:1709883806000,”blockCreatedOnDisplay”:”02.43 EST”,”blockLastUpdated”:1709884906000,”blockLastUpdatedDisplay”:”03.01 EST”,”blockFirstPublished”:1709883806000,”blockFirstPublishedDisplay”:”02.43 EST”,”blockFirstPublishedDisplayNoTimezone”:”02.43″,”title”:”Introduction: Matchesfashion to enter administration; stock markets rise on rate cut hopes”,”contributors”:[],”primaryDateLine”:”Fri 8 Mar 2024 03.36 EST”,”secondaryDateLine”:”First published on Fri 8 Mar 2024 02.43 EST”}],”filterKeyEvents”:false,”id”:”key-events-carousel-mobile”}”>
Key events
Here is our full story on Matchesfashion:
Richard Hunter, head of markets at interactive investor, has looked at the financial markets, and ahead to the US jobs report at lunchtime.
With little to upset the applecart, US markets powered to new record highs as peak optimism continued to drive buying interest.
Investors have been reassured over recent days following Federal Reserve chair Powell’s comments to lawmakers, which have contained no negative surprises. Most pertinently, the Fed stands prepared to reduce interest rates this year when circumstances dictate, and implied that such a move is not far away, even though there is no immediate rush to ease monetary policy in light of consistently favourable economic data.
Indeed, the relatively benign backdrop will be put to the test again today with the release of the non-farm payrolls report. Investors will be hoping to see employment beginning to slow, while remaining solid, while also keeping an eye on wage growth which itself is inflationary. The data is expected to show that 200,000 jobs were added in February, following the previous month’s blowout number of 353,000, while unemployment is likely to remain unchanged at 3.7%.
In the meantime, technology stocks continued to forge ahead in anticipation of the easier monetary conditions to follow and after what was a generally pleasing reporting season. The semiconductor index was a particular beneficiary of investor interest, as buyers sought to ride the current euphoric wave surrounding the potential for all things AI, with Nvidia enjoying further gains. In the year to date, the Nasdaq has now added 8.4%, closely followed by a gain of 8.1% for the S&P 500, while the Dow Jones is also in positive territory to the tune of 2.9%.
Turning to Asian stocks, he said:
Asian stocks largely joined the investment party, with most central banks increasingly agreed on the downward trajectory for interest rates, and with Japan’s Nikkei index continuing to attract overseas buying interest. This was despite the fact that the Bank of Japan could be heading in the opposite direction in exiting negative interest rates, which sent the yen higher after a recent spell of weakness, with wage growth rising to a level which could prompt the central bank to begin tightening policy.
China markets were mildly positive, although the disappointment of this week’s National People Congress is still dampening sentiment. The lack of any announcements regarding an aggressive stimulative stance in reviving the economy at a time of high unemployment, low consumer confidence and an embattled property sector remains a source of despair for investors. The authorities appear keen to let the economy recover at its own pace and will have taken some solace from the latest import and export growth numbers, which came in ahead of expectations.
Packaging firm Mondi buys DS Smith; wealth manager Mattioli Woods to be taken private
There has been a flurry of takeover deals (or offers) in recent days and weeks, and today is no different.
The packaging firm Mondi, based in Weybridge, has pounced on smaller rival DS Smith and agreed an all-share deal worth £5.14bn, which will create a paper and packaging group worth more than £10bn. Both companies said:
The combination is an exciting opportunity to create a pan-European industry leader in paper-based sustainable packaging solutions.
The London-listed company is to be bought out as wealth manager Mattioli Woods agreed to a £432m offer from the London-based private equity firm Pollen Street Capital.
Private equity firms and some industry firms have been snapping up British assets because they are considered cheap, as sterling remains weak following Brexit, the Covid pandemic and the disastrous mini-budget 1 1/2 years ago.
Yesterday, Nationwide building society agreed to buy its high-street rival Virgin Money for nearly £3bn in the largest UK banking deal since the 2008 financial crisis.
The two lenders have reached a preliminary agreement on the key terms of the takeover, which – if approved – would narrow competition with the big four banks. It would create a combined group with £366bn in total assets, nearly 700 branches and more than 23 million customers.
Buying Virgin Money, the UK’s sixth-largest retail bank, would also solidify Nationwide’s position as the second-largest mortgage lender behind Lloyds Banking Group, according to data gathered by the industry body UK Finance on outstanding home loans.
Matchesfashion was launched by a couple, Tom and Ruth Chapman, who opened their first store in Wimbledon in south London in 1987.
They banked £400m after selling their online designer empire Matchesfashion.com to private equity investors in 2017.
Funds advised by Apax Partners, a firm that owns Karl Lagerfeld and previously invested in Tommy Hilfiger, agreed to buy a majority stake in the business in a deal that valued Matches at £800m. The Chapmans, both in their 50s, cashed in the vast majority of their 67% stake, and stepped back from day-to-day involvement but retained an advisory role.
However, the firm has struggled recently amid a slowdown in the luxury sector, and made a loss of £33.5m last year.
Introduction: Matchesfashion to enter administration; stock markets rise on rate cut hopes
Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy.
Mike Ashley’s Frasers Group is putting Matchesfashion into administration, just weeks after buying the online luxury clothing retailer, putting hundreds of jobs in jeopardy.
Frasers bought the firm – which sells fashion brands including Balenciaga, Gucci, Prada, Stella McCartney and Valentino – for £52m from the private equity firm Apax in late December. According to reports, Teneo is being appointed as administrators.
In a statement to the stock exchange, Frasers said:
Since Frasers acquired Matches, the business has consistently missed its business plan targets and, notwithstanding support from the group, has continued to make material losses. Whilst Matchess’ management team has tried to try to find a way to stabilise the business, it has become clear that too much change would be required to restructure it, and the continued funding requirements would be far in excess of amounts that the group considers to be viable.
In light of this, Frasers has been informed that the directors of Matches have taken the decision to put the Matches group into administration. Frasers remains committed to the luxury market and its brand partners.
The news was first reported by Sky News.
Exclusive: Mike Ashley’s Frasers Group is putting Matchesfashion, the luxury online clothing platform it bought in December for £52m, into administration following weaker trading and the departure of a number of brands; a stock exchange announcement is likely tomorrow. More soon.
— Mark Kleinman (@MarkKleinmanSky) March 7, 2024
“}}”>
Exclusive: Mike Ashley’s Frasers Group is putting Matchesfashion, the luxury online clothing platform it bought in December for £52m, into administration following weaker trading and the departure of a number of brands; a stock exchange announcement is likely tomorrow. More soon.
— Mark Kleinman (@MarkKleinmanSky) March 7, 2024
Asian shares have hit a seven-month high, after investors were cheered by hints for potential interest rate cuts in the summer, and ahead of a key US jobs report today.
They followed in the footsteps of higher US stocks, and the S&P 500 hit a record closing high of 5,157.34, up more than 1%, as the US Federal Reserve chief indicated rate cuts are likely to come this year.
MSCI’s broadest index of Asia-Pacific shares outside Japan peaked at 538.47 points, its highest level since August. Japan’s Nikkei rose 0.2% while Hong Kong’s Hang Seng gained 1.3% and the Shanghai Composite climbed 0.6%.
The European Central Bank kept interest rates unchanged yesterday and its president Christine Lagarde, who had been pushing back against the idea of early rate cuts, said at the press conference:
We did not discuss cuts for this meeting, but we are just beginning to discuss the dialling back of our restrictive stance.
She hinted strongly that this could happen at the ECB’s 6 June meeting, when wage data for the first quarter will have been published.
We will know a little more in April, but we will know a lot more in June
US Federal Reserve chair Jerome Powell struck a similar tone on the path of US rates. He said yesterday the US central bank was “not far” from gaining the confidence it needs in falling inflation to begin cutting borrowing costs. He told the Senate Banking Committee:
I think we are in the right place. We are waiting to become more confident that inflation is moving sustainably down to 2%. When we do get that confidence, and we’re not far from it, it will be appropriate to begin to dial back the level of restriction so that we don’t drive the economy into recession.
In Germany, industrial production rose by 1% in January from the previous month, but December’s decline was revised to 2% from 1.6%.
Construction recovered alongside the chemical and food industries and machine maintenance and assembly, while carmakers posted a 7.6% slump, official data showed this morning.
The Agenda
-
10am GMT: Eurozone fourth-quarter GDP third estimate (forecast: 0%)
-
1.30pm GMT: US non-farm payrolls for February (forecast: 200,000)
