CK Hutchison's $22.8 billion ports deal in focus as conglomerate reports results
The ports-to-telecoms group will present its interim results at 5 p.m. (0900 GMT), offering analysts the first opportunity to quiz the management about the plan to sell the ports business since it was announced in March.
Departing from its usual practice, CK Hutchison did not brief analysts or media about its 2024 earnings, released in March after it made public its plan to sell the business, which includes two ports along the strategic Panama Canal.
Since the plan to sell 43 ports in 23 countries to a group led by BlackRock (BLK.N), opens new tab and Italian billionaire Gianluigi Aponte's family-run shipping firm MSC was announced, CK Hutchison has faced a firestorm of criticism from China.
In the latest announcement on July 28, the conglomerate said it was in talks with the consortium pursuing its ports business to add a Chinese "major strategic investor" to the bid, after their exclusive talks ended.
It said changes would be necessary to secure regulatory approval in relevant jurisdictions and that it would allow as much time as needed to achieve that.
Sources have told Reuters the investor was COSCO (1199.HK), opens new tab - one of the world's dominant, vertically integrated marine transportation firms. They said COSCO was seeking a bigger stake while the other parties in the consortium were keen to keep it a minority.
While any stake by COSCO is not yet clear, an inclusion of a Chinese investor would alleviate China's national security concerns and have its blessing, the sources and other experts have said. COSCO did not respond to a request last month for comment.
U.S. President Donald Trump had earlier called for the removal of Chinese ownership in the Panama Canal. More than 40% of U.S. container traffic, valued at roughly $270 billion annually, transits the Panama Canal.
Shares of CK Hutchison eased 0.2% on Thursday ahead of the results, versus a 0.1% fall in the Hang Seng Index (.HSI), opens new tab.
UBS forecast last month a 6% rise in underlying profit for the first six months, as ports and retail business growth and a weakening dollar offset the negative impact of oil prices. However, one-off losses, including from the completion of the 3UK merger, could weigh on the conglomerate's net profit.
Morgan Stanley rated CK Hutchison "overweight" last month, citing potential strategic transactions, attractive valuation, and a strong balance sheet.
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Times
3 hours ago
- Times
Times letters: How inheritance tax changes affect growth
Write to letters@ Sir, You argue in your leading article 'From Me to You' (Aug 14) that it is 'morally wrong' to levy inheritance tax on 'those who have worked hard throughout their lives to earn something to pass onto the next generation', but the biggest slice of inherited wealth is in the form of a house sale. The amount of income used to acquire a house depends mainly on the size of the mortgage at the time the house was bought — that is, its historic value — not on what it is sold for as part of probate, its current value. An adjustment for inflation may be appropriate, but there is no reason a house should be tax-exempt because its deceased owner 'worked hard to acquire it'.Peter Curwen Leeds Sir, For Rachel Reeves, wealth is a sin and she intends to tax it like other sinful behaviours. Sin taxes have a long history in reducing activities that politicians disapprove of. Sin taxes on smoking, drinking and driving have succeeded. Inevitably, as our sinning diminishes, so do sin tax revenues. Tobacco and fuel duty revenues are both down. Alcohol duty revenue is up, marginally, but on lower per capita consumption because tax rates on stronger booze have increased. Sin taxes on wealth will have the same result. There will be far less of the sinful activity of wealth creation, and eventually tax revenues will fall. The worst sinners are already fleeing our shores. Inheritance tax revenue will disappear as people stop leaving wealth to their children. As you have reported (Jul 28), capital gains tax revenues are already falling, from £14.6 billion in 2022-23 to £12.1 billion in 2023-34 as the sinners prepare to repent. What's more, with far fewer of the '1 per cent club' who pay 30 per cent of total income tax, we can all look forward to even higher tax bills ReeceLondon N4 Sir, I wonder if Rachel Reeves has fully considered the implications of subjecting pensions to inheritance tax. Having worked for more than 40 years and contributed to a pension in the belief that this would relieve the state of any responsibility for me in old age, I am now confused. Obviously I don't know how long I may live, but in the hope it may be a reasonably long time I have invested in UK stocks and shares, both to protect my family and to promote UK stocks and shares. All of us have benefitted, but now I must re-evaluate. Several of my options include selling the UK stocks and shares. Reeves has said she wants pension funds to invest more in the UK stock market, but how will her policies encourage that?Paul Mitchell Thédirac, France Sir, The proposal to 'tighten' rules on the seven-year exemption to IHT on gifts is odd ('Budget may tighten rules on inheritance tax', Aug 13). We seem to have forgotten the reason for this relief, which is to encourage growth. Essentially, it is better for growth for elderly people to pass on assets to younger people who will use them. A simple example is an older person taking cash from their bank and giving it to their child to buy a house. This results in work for estate agents, surveyors, solicitors and contractors, as well as a tax contribution in stamp duty and VAT. For a pro-growth government, to remove the incentive to give these gifts seems HardsBlakeney, Norfolk Sir, John Stewart says (Thunderer, Aug 13) that the proliferation of cycle lanes on main roads is because priority is given to cyclists making longer trips, at the expense of people using side-roads for shorter journeys. The reason priority is given to main roads is that they are where cyclists are in most danger. In many places outside London, it is impossible to make even short journeys without using main roads. I agree, though, that the design of cycle lanes needs review. Bumps and bollards that separate cycle lanes from vehicle lanes are hazards, as are jay-walking pedestrians and car passengers opening doors without looking. Some cycle lanes at junctions are so labyrinthine that they are difficult for both pedestrians and cyclists to navigate. The sad fact is that at present some cycle lanes are so badly designed that it is often safer, and certainly quicker, to avoid SpenceSale, Cheshire Sir, The residents of Streatham Hill are due to suffer more than a year of roadworks as Transport for London and Lambeth council reduce the motor vehicle capacity of the A23 to a single lane. The reason is that it is safer for cyclists and pedestrians to create a segregated cycle lane with floating bus stops and reduce access from residential side roads. I believe that if they wanted to keep everyone safe — and save money — they could ban cyclists from this stretch of the A23 and direct them to the low-traffic neighbourhood along the southbound carriageway. One of reasons the council gave for creating the LTN was that it would make it safer to cycle and CrillyLondon SW16 Sir, Harry Wallop writes (Business, Aug 15) about the poor prospects for delivery riders in the gig economy. These riders and others in such jobs will, at the end of their working lives, have little if any pension and will be dependent on the state. The people running these companies will have retired comfortably and left taxpayers to look after their former workers. Bill ParishBromley, Kent Sir, Sadly, the stone coffins and skeleton that have been on view in the northeast corner of Sherborne Abbey for the last century cannot be those of Alfred the Great's brothers (letter, Aug 14). They lie immediately beneath a 14th-century tiled pavement, within a chantry chapel, and are more likely to be those of a late-medieval abbot. When they were uncovered, in 1925, during the making of WD Caroe's new Lady Chapel, no archaeologist was there to study or record them. If the present vicar wishes to find the burials of Alfred's brothers, I suggest a careful research excavation on either side of the high Tatton-BrownSalisbury Sir, The discussion about the remains of his family brings into focus the location of Alfred himself. After his death, in 899, he was buried in Old Minster, Winchester. He was then moved to New Minster, the church built by his son, King Edward, as the dynastic focus for the family. The Norman destruction of both minsters led to the building of Hyde Abbey, just outside the walls of the city, as the 'final' resting place for Alfred, Edward and other family members. Sadly, Hyde Abbey fell victim to Henry VIII. Alfred's grave was lost until 1788, when the building of a bridewell on the site led to its rediscovery. The authorities allowed the bones to be lost around the building site. So we can now say with some confidence that the bones of Alfred and his immediate family lie scattered and shattered adjacent to the entrance to River Park in Hyde. We have long lobbied Winchester city council for a proper commemoration of Alfred and the story of the abbey in Hyde Gate, almost the last remaining original building within the abbey FennellFounder, Hyde900Winchester Sir, Further to your article 'Rolls-Royce's UK plans go nuclear' (Business, Aug 14), I have no doubt Rolls-Royce's aero-engine business will remain remarkably successful but its enthusiasm for land-based small modular nuclear reactors (SMRs) is commercially misplaced. Firstly, SMRs are essentially experimental prototype scale-ups. I would be surprised if savvy companies such as Google and Amazon were contemplating reliance on experimental tech. Secondly, authoritative research by academics at the University of Pennsylvania, in a paper published in May 2022, demonstrated that SMR radioactive waste is harder to handle than waste from Gigawatt-sized nuclear David LowryInstitute for Resource and Security Studies, Massachusetts, US Sir, Alice Thomson calls for 'honest but calm dialogue' about migration (Comment, Aug 13). She concedes that 'some Islamic countries don't share western values', but understates in my opinion how big a barrier that is to integration. The schism between Catholicism and Protestantism endured for BickleyHuntingdon, Cambs Sir, In response to your question 'Which artist best captures the true spirit of Britain — in a single frame?', (Times2, Aug 15), surely Banksy's Girl with Balloon, his powerful 2002 mural, best encapsulates the nation's sentiments in these troubled times. It was voted the nation's favourite in 2017 and, as well as being one of his most famous works, it is also one of Banksy's most optimistic, as the original mural was accompanied by the words: 'There is always hope.'Adrian BrodkinLondon N2 Sir, Your excellent article overlooked Walter Sickert. Over his long and prolific career, he painted ordinary British people at the music hall and in grimy bedsits. He reinvented himself more than once and has influenced and inspired many who came later. My choice would be BostonKingshill, Kent Sir, David Hockney has spent a great deal of his time on British landscapes, most notably Garrowby Hill, and his innovative artwork on the iPad is ClarkeRye, E Sussex Sir, Anthony Roberts (letter, Aug 14) brings to mind the warning attributed to Henry Longhurst that 'If you call on God to improve the results of a shot while it is still in motion, you are using an outside agency and subject to appropriate penalties under the rules of golf.'John Murray Compton Chamberlayne, Wilts Sir, A friend of my parents had his bicycle stolen. It was found two days later and, being a good Catholic, he went to church to thank St Anthony. On leaving church, he found that it had been stolen YoungSouthampton Sir, Public statues in London have always been controversial, for many reasons (News, Aug 8, and letters, Aug 13 and 14). In 1937, a decision was made to site the memorials to Admiral Jellicoe and Admiral Beatty in Trafalgar Square, which required moving the statues of General Napier and Major General Havelock, and there had even been discussions about moving William IV from his plinth to an island at Virginia Water. It was all too much for Sir Patrick Duff, secretary of the Office of Works, who was still reeling after controversies about the statue of Field Marshal Haig on Whitehall. In a letter to the first commissioner, Sir Philip Sassoon, in January 1938, Duff fumed that the best site for all statues was at the bottom of the CrellinThorner, W Yorks Sir, Marion Brown's letter (Aug 13) revived an old misapprehension of my own. As a child I had a box of watercolour paints with the printed name of the tint under each pan. Owing to inconsistency in the printing I was convinced for many years of the existence of the colour Clive DorrPlymouth Write to letters@
Reuters
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Brazil is open for business, Lula says at Chinese factory opening
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Daily Mail
8 hours ago
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Sun is shining on the Footsie - and YOU can cash in too..
The UK stock market has sprung a surprise this summer. Even against the background of gloomy GDP and other economic data, the FTSE 100 index – regarded as the bellwether of our economy – has soared by 11 per cent this year to reach a record high of 9222. The index has outpaced its US counterparts, staging a bounce back from its April 'Liberation Day' low of 7544 when tariff announcements sent shares tumbling. The FTSE All-Share index, which covers the top 600 companies quoted in London, has also executed a surprising recovery. In the face of the downbeat stream of news on debt, employment, tax increases and much else, many investors have withdrawn billions from UK funds this year. But the Footsie's feats may be causing some of them to reassess this strategy. Britain may face challenges, but nowhere is exempt from economic and geopolitical angst at present. As Helena Pomfret, of wealth manager Evelyn Partners, points out: 'The heightened levels of uncertainty across the world mean it's important to stay diversified.' A foray into UK markets is not an insular approach. The members of the FTSE 100 earn about 80 per cent of their revenues overseas, but the FTSE 250 and FTSE 350 are more domestically focused, spreading your risk. Laith Khalaf, of broker AJ Bell, argues that UK shares – particularly those in small and medium-sized companies – are 'pretty attractively valued just now'. He adds: 'When an index reaches a record high, that can be a signal for caution. But in the case of the Footsie, it's been slow to get there.' If you are contemplating forming a new and deeper relationship with the UK markets, here are some of the companies and funds to back. MAKE THE MOST OF MERGER MANIA One compelling reason to back UK PLC is the expectation that the takeover bonanza will continue. During the first six months of the year, there were £74billion-worth of bids for British businesses, driven by the view that their shares were trading at 'an extreme discount', as one expert put it. Companies such as the banknote printer De La Rue have been acquired by US private equity groups. Others including Alphawave, Deliveroo, Just and Wood Gp were snapped up by 'trade buyers' – firms in the same industry. Earlier this month the precision instrument maker Spectris finally succumbed to the largest US private equity player KKR at a price of 4,175p-a-share, 96 per cent above the price when predators began to circle in June. But it is likely that some companies will rebuff approaches they regard as opportunistic. In June, Craneware – which supplies software to US hospitals – rejected a £939m 2,650p-a-share bid from US private equity group Bain. Craneware shares stand at 2,270p. But analysts – who rate the stock a 'buy' – have set an average target price of 2,844p, suggesting that Craneware's bosses may have been justified in their stand. As a result of the frenzy, more and more companies are seen as potential targets. The list includes footwear brand Dr. Martens; Greggs, the sandwich-maker famous for its regular and vegan sausage rolls; Paragon, the bank; and Phoenix, the insurer. Such has been the gossip about a bid for oil giant BP that Shell was forced to deny that it was sizing up its rival. BP seems vulnerable because the US activist investor Elliott is using its 5 per cent stake to agitate for cost savings. But a decent set of first-quarter results and an exploration success seem to have improved the outlook, causing Maurizio Carulli, global energy analyst at Quilter Cheviot, to remark that 'the speculation may just end up being a blip in BP's long and storied history'. If you're tempted to back this great British business, analysts are targeting an average price of 450p, against the current 421p. The highest target price is 522p. TRY TAKING A DEFENSIVE STRATEGY Some private investors who were wary of the UK markets made an exception for defence stocks and have been richly rewarded. The FTSE All Share Aerospace and Defence index has risen by 71.9 per cent since January, driven by armaments spending uplifts in the UK, the EU and the US. If you are venturing into this sector, there may be further upside. Since January, aircraft engine maker Rolls-Royce has soared by around 93 per cent to 1,074p. But analysts have set a target price of 1,440p, even before the company's vow this week to become Britain's biggest firm through the development of small nuclear reactors to power artificial intelligence (AI) data centres. Shares in Babcock, another major defence contractor, have advanced by 96 per cent to 995p this year. But it too continues to be seen as a 'buy' with an average target price of 1,153p. If you are looking to take a stake in defence, but also want a spread of other UK companies, the top holdings of the Zeus Dynamic Opportunities fund encompass Rolls-Royce but also Chemring, another key defence group. At 535p, its shares are 65 per cent higher than in January, but analysts still consider them a 'buy' with a target price of 573p. Among Zeus Dynamic's other stakes are BP and Tesco – whose shares stand at 413p, 13 per cent higher than in January. Analysts believe the supermarket has further to go, however. Another option for exposure to Rolls-Royce and Tesco is the Ninety One UK Special Situations fund. GO FOR GOLD AND INCOME Going for gold has been another lucrative strategy this year. The metal's price reached a record $3,500 in April. Gold has regained its safe-haven status and is also in demand from the central banks of nations that do not wish to hold reserves in dollars. Fresnillo is a Mexican gold and silver miner, but the firm has been listed in London since 2008. Although its shares have soared 183 per cent this year, they are still regarded as a buy, given the forecast that gold could climb to $6,000 by the end of Trump's presidency. But there is also a focus on Fresnillo's dividends, another under-appreciated aspect of backing Britain – the income available at a time when deposit account rates are becoming less generous. The FTSE All-Share's constituents are expected to distribute about £91.3billion in dividends this year. In addition, they have already made £54bn in share buybacks, another form of returning cash to shareholders. The FTSE All-Share's dividend yield is 3.37 per cent. This compares with 1.21 per cent for the US S&P 500. To make the most of this mix of potential growth and income, Khalaf suggests three funds. They are: Fidelity Special Values, which seeks out unloved companies poised for a turnaround; Liontrust UK Growth, which favours mostly Footsie members; and the iShares UK Equity Index fund, a 'cheap and cheerful' way to take a stake in UK PLC. Pomfret's recommendations are: Artemis UK Select; Evenlode UK Income; and Redwheel UK Equity Income, which invests in BT, BP, Marks & Spencer, NatWest and Shell. The share prices of renewable energy trusts were badly hit when borrowing costs surged. But there is consolidation in the sector and the dividend yields are attractive. SDCL Energy Efficiency offers a 10 per cent yield. The hazard of investing in these trusts is considerable. But Susannah Streeter, of Hargreaves Lansdown, says they are among the long-term bets on Britain being taken by family offices that manage the money of the ultra-wealthy. Net Zero policies may be facing pushback, but they will continue to be implemented. I have been increasing my UK bets for years – to diversify, but also to do my bit for domestic growth and entrepreneurialism.
