- European markets look set to open higher
- Aviva has 250p takeover offer rejected by Direct Line
- Microsoft comes under the FTC microscope
- Oil prices slip on higher US petrol stockpiles
Matt Britzman, senior equity analyst, Hargreaves Lansdown:
“European markets have opened higher this morning as investors aim to shake off yesterday’s losses and digest key economic updates, including inflation data from Germany and Spain. Business confidence figures from Italy and Spain are also on the radar, though earnings take a backseat with no major reports scheduled. Across the pond, US stocks ended mostly in the red after a mixed session, with economic data offering no surprises but keeping next week’s ISM manufacturing figures firmly in focus.
Direct Line is playing hard to get, again, as the board rejects a tentative takeover offer from Aviva on the grounds that the 250p per share on the table significantly undervalues the company. It’s not a clean offer; the 250p would be split half as cash and half as Aviva shares, which always makes things a little more complicated. Direct Line is no stranger to takeover offers, having rejected multiple attempts from Belgian insurer Ageas earlier in the year. There’s a case to be made that Aviva is a better suiter, given it already shares markets with Direct Line in the UK, but it’ll need to up its game – and its offer – if it wants Direct Line to take the proposal seriously.
It’s been a while, but Microsoft finds itself back under the microscope as the FTC launches a broad antitrust probe into its cloud and software practices, including allegations of restrictive licensing. For a tech giant of its size, scrutiny like this is almost a badge of honour, a sign of dominance that inevitably draws regulators’ attention. Markets haven’t reacted to the news, likely because the investigation lacks specifics, and FTC Chair Lina Khan, who is steering the investigation, will likely be departing next year. Whether or not big tech will see any let-up under Trump remains to be seen, deregulation will be a focus, but he has a history of being a strong enforcer of antitrust laws.
Oil prices have dipped in early trading, with Brent crude slipping below $73 per barrel after a surprise jump in US petrol stockpiles cast a shadow over demand. The 3.3-million-barrel rise far outpaced forecasts, even as US crude inventories fell more than expected, highlighting a mixed picture for the market. All eyes now turn to the OPEC+ meeting, postponed to 5 December, with speculation that the delay reflects either extended negotiations for a deeper production cut or ongoing challenges in reaching a consensus.”
