Source: Sharecast
Stocks to watch
THG said it had received and rejected a wholly “unsolicited, largely unfunded, highly conditional and non-binding” proposal by AIM-listed acquisition vehicle Selkirk to buy its nutrition brand Myprotein. The cash and share offer valued Myprotein at £400m - £600m on a cash-free, debt-free basis, THG said on Wednesday. “The board considered that the proposal fundamentally undervalued Myprotein and its prospects, and in addition carried significant execution complexity and risks, in particular the ability of Selkirk to raise sufficient funding,” it added.
Reckitt Benckiser reported 3.1% like-for-like net revenue growth in the first quarter on Wednesday, driven by strong performances in germ protection and intimate wellness, especially in emerging markets where revenue rose 10.7%. The FTSE 100 consumer products giant said that while Europe and North America saw slight revenue declines due to prior-year comparisons and retailer destocking, both regions achieved market share gains supported by new product innovations. It maintained its full-year outlook of 2% to 4% group revenue growth and continued progressing on strategic initiatives, including the planned separation of ‘essential home’ and the rollout of its ‘fuel for growth’ and GenAI programmes.
Newspaper round-up
The Tesla chief executive, Elon Musk, said he will start pulling back from his role at the so-called “department of government efficiency” starting in May. Musk’s remarks came as the company reported a massive dip in both profits and revenues in the first quarter of 2025 amid backlash against his role in the White House. On an investor call, Musk said the work necessary to get the government’s “financial house in order is mostly done”. – The Guardian
The International Monetary Fund has called on central banks to “build on their independence” after President Trump intensified attacks on the US Federal Reserve, raising fears about political interference in monetary policy. Pierre-Olivier Gourinchas, chief economist of the IMF, said on Tuesday that it was “critical” for central bankers to have credibility when managing inflation, without explicitly referring to the spat between the Fed and the US president which has escalated in the past week. – The Times
Donald Trump said during a White House news conference that high tariffs on goods from China will “come down substantially, but it won’t be zero”. Trump’s remarks were in response to earlier comments on Tuesday by treasury secretary Scott Bessent, who said that the high tariffs were unsustainable and that he expects a “de-escalation” in the trade war between the world’s two largest economies. – The Guardian
British Steel has said it will end a consultation on up to 2,700 redundancies, after the UK government took control of the firm earlier this month. Prime Minister Keir Starmer previously recalled MPs from their spring recess so Parliament could pass emergency legislation allowing the government to take operational control of British Steel. – The Independent
Santander is plotting to ditch its scandal-hit motor finance unit in a shake-up which could pave the way for the bank to exit the UK entirely. The Spanish lender is seeking approval to separate its British car finance division – which is subject to a wave of possible litigation linked to the ongoing car loan mis-selling case – from the rest of its UK banking business. – The Telegraph
US close
Major indices closed sharply higher on Tuesday as traders grew optimistic that US-China trade tensions could ease soon.
At the close, the Dow Jones Industrial Average was up 2.73% at 39,210.93, while the S&P 500 advanced 2.82% to 5,303.85 and the Nasdaq Composite saw out the session 2.71% firmer at 16,300.42.
The Dow closed 1,040.52 points higher on Tuesday, reversing losses recorded in the previous session amid heightened tensions between the White House and the Federal Reserve Bank as Donald Trump branded Jerome Powell a "major loser" and economic advisor Kevin Hassett stated the administration was currently looking into his possible "termination".
Stocks closed higher on Tuesday, with the blue-chip Dow Jones snapping a four-session losing streak as news broke that Treasury Secretary Scott Bessent had said there "will be a de-escalation" in the White House's trade war with China.
"No one thinks the current status quo is sustainable," he said.