Trending tickers: Google | Vodafone | Glencore | Land Securities
Google (GOOG)
Google shares were up 0.2% in pre-market trading on Tuesday, after a 0.3% fall the session before, as the technology company agreed to give Apple (AAPL) a 36% cut of advertising revenue from its searches made in Apple's Safari browser.
It follows an antitrust trial against Google, where it stands accused of illegally maintaining its monopoly.
The US Department of Justice has accused Google of abusing its dominant position by paying billions to ensure that its search engine remains the default on smartphones and browsers.
Meanwhile, a Russian court has also fined Google for failing to store personal data on its Russian users.
A magistrate at Moscow’s Tagansky district court fined Google 15 million rubles (£133,000, $165,000) on Tuesday after the company repeatedly refused to store personal data on Russian citizens in Russia.
Google was previously fined over the same charges in August 2021 and June 2022 under a Russian law that obliges foreign entities to localise the personal data of their Russian users.
Vodafone (VOD.L)
Vodafone slipped 2.7% on the day despite posting a 4.2% growth in service revenue to €19.2bn (£16.7bn) in the first of the year.
The company was boosted by a turnaround in Germany, which returned to growth in the second quarter as it hiked prices. The German market makes up almost a third of Vodafone’s total revenue.
UK service revenue grew 4.1%, driven by customer growth, price rises and higher revenues from roaming. Meanwhile it faced erosion in Southern European markets like Spain and Italy.
Margherita Della Valle, chief executive, said her steps to simplify the group and focus on customers had delivered growth in 14 out of 17 markets.
Read more: LIVE: FTSE and European stocks muted as UK wage growth cools and vacancies fall
The company reiterated its guidance for full-year earnings to be broadly flat at around €13.3bn ($14.2bn, £11.6bn).
Vodafone also plans to cut 11,000 jobs across the group as it unveils a £15bn mega-merger with Three in the UK.
Albie Amankona, analyst at Third Bridge, said: "Our experts say it is very likely the Vodafone-Three merger will be approved by the CMA. If the merger doesn't proceed, the market might lose a key fourth operator, given that both the third and fourth operators are currently facing difficulties."
Glencore (GLEN.L)
Glencore has struck a £5.6bn deal for a majority stake in the coal business of Teck Resources (TECK-B.TO), sending its shares higher on Tuesday.
The miner rose as much as 3% in London after it announced the news that it will buy a 77% stake in the Canadian miner's steelmaking coal business Elk Valley Resources for $6.9bn (£5.6bn) in cash.
“This is a striking move on the part of the diversified miner and commodities trader,” said Russ Mould at AJ Bell.
The industrial metal mining sector climbed nearly 2% on the back news, leading sectoral gains on the FTSE (^FTSE).
Read more: UK wages grow faster than inflation
"These world-class assets and the experienced people that operate them are expected to meaningfully complement our existing thermal and steelmaking coal production located in Australia, Colombia and South Africa," Glencore chief executive Gary Nagle said.
"Glencore has high regard for the business that has been developed over many decades in British Columbia and looks forward to maintaining and enhancing its operational performance, environmental stewardship and social contribution."
The merged coal company will be listed in New York, with secondary listings in Toronto and Johannesburg, within two years of completing the acquisition, Glencore CEO Gary Nagle told reporters.
The head office for the steelmaking coal business will be set up in Vancouver.
Land Securities (LAND.L)
Land Securities managed to push into positive territory by noon trade, after opening in the red on news that the property firm wiped £375m off the value of its UK real estate portfolio.
The company wrote down its portfolio by 3.6% to £10.1bn in its half year results, although rising rents helped offset the blow.
"Since early 2022, we have been clear that we expected interest rates to remain higher for longer and that asset values would have to adjust to this new reality, which they have," Mark Allen, chief executive, said.
"We were decisive in acting on this view by selling £1.4bn of single-let HQ offices, mostly in the City, at prices ahead of today’s values.
"Investment activity remains thin, but we expect this to pick up in 2024, which should start to support values for the best assets."
Britain’s biggest property developer also revealed that it is shifting its London portfolio from the City of London to the West End as tenants seek to be in more vibrant locations.
The company owns offices and shops around Victoria station and Piccadilly Circus in the heart of London. It has sold £2.5bn of properties since 2020 — mostly single-let office buildings in the City, such as the Deutsche Bank and Deloitte headquarters, as well as the Harbour Exchange office block in Canary Wharf.
More than three-quarters (76%) of the developer’s portfolio is now in the West End and Southwark, south of the Thames, up from 58% in 2020, while its City assets are down to 24%.
It expects earnings for the full year to be “broadly stable”.
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