Monday, September 2, 2024

The London Rush: Murdoch books a viewing

Hi, I'm Louise from Bloomberg UK's breaking news team, catching you up on this morning's business stories.G'day. Rupert Murdoch's REA Group

Hi, I'm Louise from Bloomberg UK's breaking news team, catching you up on this morning's business stories.

G'day. Rupert Murdoch's REA Group is considering buying Rightmove with the aim of creating a global online property business.

It hasn't yet approached Rightmove but any deal seems to be a case of location, location, location.

REA is already the largest online real estate player in Australia and has expanded into other markets including India and the US. Rightmove holds more than 80% of the UK market share and has recently been on an expansion drive itself abroad.

Plus, the UK housing market is expected to pick up. That will be some relief for the platform that warned earlier this year its customer numbers would likely drop slightly as those paying to advertise properties are hit by the wider environment.

Rightmove's shares have (predictably) soared about 25% this morning, boosting its market cap to just under £5.5 billion.

REA has until September 30 to make a bid or walk away, so stay tuned for updates.

What's your take? Ping me on X, LinkedIn or drop me an email at lmoon13@bloomberg.net. Oh, and do subscribe to Bloomberg.com for unlimited access to trusted business journalism on the UK, and beyond.

What We're Watching

Labour's new taxes for North Sea oil and gas could mean an 80% slump in investment, a lobby group warned. More than 35,000 jobs are also at risk.

But while Rachel Reeves might be eyeing up a new tax regime, her biggest inherited problem is a skittish and apprehensive bond market, according to Bloomberg Opinion's Marcus Ashworth.

And if she's hoping for an economic boost from Oasis, its likely to be more of a feel-good factor than a rise in GDP. (Congrats if you managed to get a ticket.)

Global Catch Up

Markets Today: Wages Watch

Here's your daily snap analysis from Bloomberg UK's Markets Today blog:

Welcome to September, which is set to be a big month for central bank watchers with a hotly anticipated interest rate decision from the US Federal Reserve, as well as European Central Bank and Bank of England monetary policy meetings.

The BOE, which meets on Sept. 19, is expected to pause after cutting rates from a 16-year high in August, with markets expecting a further cut in November. Still, it's not a done deal and the central bank will be closely watching economic indicators to formulate the next move.

So far, things have been looking pretty good. Wages could prove to be fly in the ointment however. Data from recruitment agency Reed shows advertised pay in job-listings has begun to creep higher. That could be an issue if it feeds into official figures.

It also suggests wage bills in parts of the powerhouse services industry will continue to rise. Sticky services inflation was a thorn in the BOE's side when it came to cutting rates until last month and it will remain closely watched.

Morwenna Coniam

Check Bloomberg UK's Markets Today blog for updates all day.

What's Next

Watches of Switzerland is due to report first-quarter earnings. In its last update, it was "cautiously optimistic" about trading this year, following challenging conditions in the luxury watch market.

Quick Coffee

William Gordon-Harris is the CEO of Knoops, a chocolate drinks chain with stores across the UK. We met in their office above the Knightsbridge store. 

What's your favourite lunch spot? Daphne. And because I go all the time, I always get a table. 

And your favourite pub? Pelican in Notting Hill. My son is now 18 and all he wants to do is go to pubs, so I go to the Pelican with him and he can have a pint of beer and I can have a pint of zero alcohol beer. 

How do you save time? I have transitioned from an untrusting person to a trusting person to build this business, and part of that is to delegate.

What are you reading? The Power Broker, a biography of Robert Moses by Robert Caro, and Right Kind of Wrong, a book about failure by psychologist Amy Edmonson. 

Do you have any favourite podcasts? Ezra Klein's show, The Daily, The Moth, Euro Intelligence, 99% Invisible. 

On big days, I wear? A decent pair of shoes. I used to be obsessed with nice clothes but that's all fallen away. The busier I become the more it becomes unimportant.

How do you switch off? One of the most brilliant ways was learning how to fly a plane. Your mind goes blank if you've suddenly got turbulence, you can't even remember your name. Having something to focus on and therefore getting outside the comfort zone in any area is really good. 

What do you wish someone had told you at the start of your career? To learn to respond rather than react, and to understand that it's a long game. It's a matter of timing and everything aligning.

Chloe Meley

Pub Quiz

The America's Cup is the world's oldest international sporting trophy, pre-dating the modern Olympics. Teams attempt to build the world's fastest sailing yacht with boats capable of speeds close to 100 kph. Which country is this year's defending champion?

Bertarelli's Alinghi Red Bull Racing team during a training session in Barcelona in July. Photographer: David Ramos/Getty Images Europe

[Friday's answer: English novelist Mary Wollstonecraft Shelley was the author of Frankenstein.]

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