The London Rush: Topshop swap

ASOS rises on Topshop joint venture.

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Hi, I'm Louise from Bloomberg UK's breaking news team, catching you up on this morning's business stories. The once-omnipresent Topshop and Topman brands are swapping hands again.  ASOS has ceded control to Heartland - a company owned by Denmark's Anders Holch Povlsen - for £135 million. The billionaire's family business Bestseller houses the likes of Jack & Jones and Vero Moda.  Under a joint venture, 75% owned by Heartland, ASOS will continue to sell Topshop and Topman on its site. The retailer kept the brands alive as online labels after buying them from Philip Green for £295 million in 2021. It's all part of a wider 'transformation'. ASOS has vying to get profits back on track, cutting costs and stockpiles of unsold clothes, following a slump in sales after the pandemic e-commerce boom faded. Shares are up 14% this morning. 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

Talking of fast fashion, Primark-owner AB Foods raised operating margin forecasts, partly on lower material and freight costs. The Euros and increased interest in AI products has boosted sales at Currys, though it kept guidance unchanged. As fears grow that debt-laden Thames Water will soon run out of money, a new bill tweaking water company insolvency laws will be presented to parliament today. It cracks down on executives and updates special administration rules to ensure taxpayers aren't out of pocket. Plus, after Burberry got booted out of the FTSE 100 (see more from index-tracker Sam Unsted below), read all about the long list of challenges facing the trench coat-maker's new CEO — its fourth in just over a decade.

Global Catch Up

China's Xi courts Africa with $50 billion pledge and military support. Kamala Harris calls for 28% capital gains tax on earners above $1m. Billionaire NFL family eyes windfall from Wall Street and Swifties.

Markets Today: Mixed Berries

Here's your daily snap analysis from Bloomberg UK's Markets Today blog: Burberry has been a FTSE 100 member since I started as a stocks reporter...but no longer. It has been hit by a rough luxury backdrop and a sharper squeeze on the spending habits of its customers, who are typically more aspirational compared to higher-end peers. Also interesting to note in the reshuffle of indexes, which will see insurer Hiscox take Burberry's place, is Raspberry Pi's entry to the FTSE 250. The single-board computer maker is pretty much the only bright spot in London's moribund IPO market this year, so its performance now it has entered the premium indexes will likely be closely monitored. More symbolically, however, it does notch up a new tech company. A dearth of listings for the sector, compared to the behemoth tech stocks in the US well as those in Europe and Asia, has been a major reason for the UK's indexes lagging behind in recent years. It's not a huge company and by no means addresses the lack of tech names in London, but it's a start. — Sam Unsted Check Bloomberg UK's Markets Today blog for updates all day.

What's Next

The homebuilder-themed week continues with a trading update from Berkeley. Bloomberg Intelligence say its pricier London homes face waning demand due to the possibility of tax hikes on property and a crackdown on non-doms from the new government. Three of the Best: Coffees in the Square Mile Hello, it's Sarah from Pursuits. With summer over, the City busier and days shorter, I've been needing that extra coffee shot. If you feel much the same, here are some nearby cafes for a jolt of caffeine: Commons, Cannon Street This new takeaway-only spot not only does a great iced latte, but also very nice cardamom buns. The clay interior means it has instantly become one of the trendier places to be spotted. Rosslyn, four locations (and growing)  This Square-Mile only coffee chain serves incredible filter coffee as well as formidable espresso drinks. A new collaboration with Bloomberg Arcade addition new-addition Bao brings a comforting Horlicks ice cream to the brand. Where's Fred's, Frederick's Place This is as close as you can get to peace and quiet in the square mile. Tucked in a courtyard off Cheapside, Where's Fred's not only serves a solid flat white, but is also a tasty spot for brunch. Photographer: Hollie Adams/Bloomberg

Pub Quiz

A biopic about Robbie Williams titled Better Man premiered earlier this week, directed by Michael Gracey of The Greatest Showman. In a somewhat surprising twist, who is the singer played by? Photographer: David Wolff - Patrick/Redferns [Yesterday's answer: Sir Paul Marshall, who backs GB News and is reportedly poised to become the new owner of The Spectator, also owns news website UnHerd.]

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