Broadcom signal intent for largest tech deal in history

Today's Closing Update

U.S. shares wobbled around the flatline today after climbing to a trifecta of records the previous week.

European stocks drifted lower today, as a political shake-up in Saudi Arabia caused some jitters, and with a drop for banks dragging on the region’s main index.

Prime Minister Theresa May has called on UK companies to invest more in research and development. At the CBI’s conference she said the “economy fit for the future” would be “driven by science and innovation”. But, she said, while the government was increasing support for R&D to “record levels”, UK firms were not keeping pace with rivals in other countries.
One of Donald Trump’s leading allies has said he is optimistic that the UK and US will sign a free trade deal after Brexit. US Commerce Secretary Wilbur Ross also accused the European Union of being guilty of “extreme protectionism”. He said there had already been a “joint scoping exercise” in Washington in July on a free trade agreement between America and Britain. And that another similar meeting will be held in London next week. During his London visit over the last few days, Mr Ross has had meetings with the International Trade Secretary, Liam Fox; the Foreign Secretary, Boris Johnson, and the Chancellor, Philip Hammond.

Sales of diesel cars in the UK fell by nearly a third in October compared with last year, prompting the motor industry to call for help in the Budget. The Society of Motor Manufacturers and Traders (SMMT) wants to see government-backed incentives to encourage people to buy low emission diesel vehicles. Overall vehicle sales fell by more than 12%, marking the seventh consecutive month of declines. The SMMT blamed a drop in business and consumer confidence for the fall. So far this year, new vehicle registrations are down by 4.6%.

UK100 medical supplies maker Convatec has bounced back today after its shares hit a record low on Friday. Shares in the manufacturer led the blue chip risers, climbing almost 5.9 per cent to 192.7p. Renewed fears that it could lose out to Danish rival Coloplast pushed the price down to a record low on Friday, closing at 182p. Shares were already well below the 2016 placing price following a profit warning in October. But analysts at UBS issued a note to clients this morning upgrading the company to a “buy” rating, calling the current pricing “overly bearish”.

Computer chipmaker Broadcom has announced a $103bn (£79bn) bid for rival Qualcomm in the largest-ever takeover for the technology sector. Broadcom, which makes chips for products such as smartphones, is offering $70 per share. Qualcomm had yet to comment on the bid, the latest development in a wave of consolidation sweeping the industry.

Ladbrokes Coral-owned betting operator Gala Interactive has been penalised £2.3m for breaching rules aimed to protect vulnerable customers. The Gambling Commission found “significant flaws” in Gala’s dealings with two customers who gambled away £1.3m of stolen money over 14 months. It said Gala had failed to effectively interact with the customers, who were displaying problem gambling behaviour. Ladbrokes Coral said it accepted it had fallen short of the expected standards.

Oil Prices hit their highest since July 2015 today as Saudi Arabia’s crown prince cemented his power over the weekend with an anti-corruption crackdown, while markets continued to tighten.

Gold edged back above $1,270 an ounce today as a steadier tone to the dollar and a drop in bond yields tempted some buyers back to the metal after its third straight weekly.

Market Close

UK 100	7,562.3	+1.9	+0.0%
UK 250	20,432.6	-39.8	-0.2%
GER 30	13,467.2	-11.7	-0.1%
FRA 40	5,509.3	-8.7	-0.2%
U.S. 30	23,545.85	+6.66	+0.0%
U.S. 500	2590.4	+2.6	+0.1%
OIL (BRENT)	62.91	+0.84	+1.4%
GOLD	1,274.18	+4.27	+0.3%