BUSINESS LIVE: REA increases Rightmove offer; Galliford Try wins contract; Oxford Biomedica losses cut

Russ Mould, Investment Director at AJ Bell, comments on the markets this morning.

Investors are still worried about the Federal Reserve’s massive 50 basis point rate cut last week, which some saw as worrying for the health of the world’s largest economy, despite the Fed’s best efforts to provide reassurance.

Retail stocks rose while Endeavour Mining was among the winners as gold hit another record high. The precious metal typically benefits from falling inflation-adjusted interest rates and is also in demand as tensions in the Middle East rise.

These tensions have also seen oil prices rise from recent lows. Latest figures from the RAC suggest that the relief motorists are enjoying from petrol prices will be short-lived.

Asset manager Apollo is reportedly eyeing a major investment in Intel, after the troubled chip giant approved plans to spin off its manufacturing arm, with a capital injection that could help the company with its intended reboot.

Susannah Streeter, head of money and markets at Hargreaves Lansdown, comments on REA Group’s new bid:

Rightmove shares have been hit by the downturn in the property market, amid rising interest rates.

But with more cuts on the horizon and prices starting to recover, there are many more eyes on the screen.

REA Group is clearly very interested in the solid fundamentals of the model, which offers an enviable operating margin of around 70%.

While there are increasing numbers of DIY alternatives, they represent a small part of the market and many estate agents cannot afford not to advertise on Rightmove.

This is evident from their willingness to pay higher amounts to attract potential buyers.

Oxford Biomedica to cut operating losses by about a third in the first half of 2024 after strong revenue growth.

According to the biotechnology company, sales were boosted by “stronger levels of manufacturing and commercial development activities.”

Construction company Galliford Try has been awarded contracts by Wessex Water for work worth more than £400 million.

This follows deals the company struck with Southern Water worth around £500 million.

Bill Hocking, Chief Executive of Galliford Try, commented: “We are delighted to be working with our partners at Wessex Water.”

He added: ‘The expected significant increase in activity in the water sector is a key part of our sustainable growth strategy and we look forward to serving Wessex Water’s customers and stakeholders.’

REA Group has sharpened its takeover bid for Rightmove to £6.1bn after two previous bids were rejected.

The online property advertising agency, majority-owned by Rupert Murdoch’s News Corporation, has made a new offer valuing Rightmove shares at 770 pence each.

An analysis of government data published today shows that an average of more than 50 pubs will close each month in England and Wales in the first half of 2024.

According to property information firm Altus Group, the total number of pubs, including those that were empty or available for rent, fell to 39,096 at the end of June.

The nervousness in the City is palpable ahead of the Budget, particularly concerns about possible tax raids on pensions by Rachel Reeves.

As my colleague John-Paul Ford Rojas reported in our sister paper the Mail on Sunday, the bosses of major pension companies are pleading with the Chancellor of the Exchequer not to launch a tax attack on people saving for their pensions.

There are growing calls within the Labour Party to block Drax benefits after the ‘green’ energy company was fined for air pollution in Mississippi.

Drax, which has received more than £6bn in subsidies for its North Yorkshire power station, is currently awaiting a decision from ministers on whether to extend the subsidies beyond 2027.