Is it worth investing in Mitchells & Butlers right now?
The group has managed to wade through these issues with consistent growth in revenues and it has been steadily strengthening its balance sheet, bringing down its net debt, excluding lease liabilities, from £1.75 billion at its year-end in 2017 to £989 million as of September 28 2024. Mitchells & Butlers, which also owns a significant proportion of its pubs on a freehold basis, is set to bring down its liabilities still further in the coming years, with net debt forecast to fall to about £700 million by the end of
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Reuters
20 minutes ago
- Reuters
Morning Bid: Bitcoin joins the risk-on party
A look at the day ahead in European and global markets from Ankur Banerjee You know markets are fully risk-on when cryptocurrencies are on a tear, with bitcoin joining global stocks to scale a record peak as the near certainty of U.S. interest rate cuts bolsters risk sentiment and weighs on the dollar. The world's best-known cryptocurrency, bitcoin , has a lot going for it: prospects of lower interest rates, a more favourable regulatory environment, and bullish inflows from institutional investors. Ether too has been on the charge, hovering near its highest since November 2021, becoming the token of choice for those looking for more active returns. In fact, ether is up 42% this year, outstripping the 32% gain for bitcoin. Stocks in Asia were taking a bit of a breather after a blistering rally this week. Japanese shares fell after hitting a record high, while tech-heavy Taiwan and South Korean shares eased after recent highs. Investors are wagering that the Federal Reserve will resume cutting interest rates from next month, with traders starting to even price in odds of a 50 basis points cut after comments from Treasury Secretary Scott Bessent. "If we'd seen those numbers in May, in June, I suspect we could have had rate cuts in June and July. So that tells me that there's a very good chance of a 50 basis-point rate cut," in September, Bessent said in an interview on Bloomberg Television. Fed Chair Jerome Powell, who has been regularly lambasted by U.S. President Donald Trump, is expected to speak at a central bank research conference in Wyoming next week and the focus will be on his tone on policy path. Bessent also said the Bank of Japan will likely be raising interest rates as it is behind the curve in dealing with the risk of inflation, leading to strong gains in the yen , which stayed around its strongest level in three weeks. Investor focus during European hours will be on a swathe of economic data that will offer a glimpse of the tariff uncertainties and the impact of the duties on the economy. Key developments that could influence markets on Thursday: Economic events: Euro zone flash GDP for Q2, UK prelim GDP for Q2
Reuters
20 minutes ago
- Reuters
Investors adopt "higher for longer" view on ECB rates
Aug 14 (Reuters) - Investors are increasingly pricing in a "higher for longer" interest rate environment in the euro zone, with a potential cut in March seen as a temporary blip before borrowing rates climb back above 2%. A number of market-based measures of rate expectations indicate that investors are growing less concerned about the deflationary impact of tariffs following the recent trade deal between the United States and the European Union. They're also confident that a sharp increase in fiscal spending in Germany will boost the economy, thereby reducing the need for more rate cuts in the longer term. Several investment banks, including Goldman Sachs, have revised their forecasts, now anticipating that the European Central Bank has ended its current easing cycle. While trade risks could still weigh on growth and inflation, these banks believe the ECB, which offered an upbeat assessment of the euro zone economy after its latest meeting, is likely to hold rates at 2% for the foreseeable future. Erring on the side of caution, markets are pricing in the risk of a pick up in deflationary pressure early next year if tariff negotiations falter, which is showing up as an implied ECB rate cut in March. In the meantime, the euro has risen by nearly 3% this month as investors increasingly expect the U.S. Federal Reserve to resume rate cuts in September, while the ECB stays put. "Higher for longer" was a narrative that dominated markets in 2022 and 2023 as central banks grappled with stubborn inflation stemming from the COVID pandemic and Russia's invasion of Ukraine. Here are some of the market indicators that reflect its return. Forward contracts on the ECB's official overnight benchmark interest rate, the euro short-term rate (ESTR), imply around a 60% chance of a 25 basis point rate cut by March, and a deposit rate of 1.92% in December 2026. This reflects traders' assumptions about the likely path for monetary policy. 'In the short term... there is the potential of inflation undershooting. It's a bit of Trump. It's a bit of economic weakness,' said Carsten Brzeski, global head of macro research at ING. 'Our view is that inflation will remain structurally above 2% in the coming years, driven by fiscal spending and the restructuring of supply chains, which will increase costs for companies,' he said. He added that policy rates could reach the upper bound of the ECB's official 1.75% to 2.25% range for the neutral rate - that which is neither accommodative nor restrictive - and shift into tightening territory if required. The euro short-term rate (ESTR) 5-year overnight index swap (OIS) is seen as a barometer of the medium-term monetary policy outlook and can be loosely used as a market-implied gauge of the neutral rate. The swap rate hit a high of 2.406% in early March, when Germany agreed on the biggest overhaul to its fiscal spending in decades, and has since fallen to around 2.12%, having traded above the 2% mark consistently for the last six weeks. 'We're a bit more negative on growth than everyone else and a bit more worried about inflation than everyone else,' said Lyn Graham-Taylor, senior rates strategist at Rabobank. 'But we've literally no change for the deposit rate out till the end of 2027,' he added. The Euro Interbank Offered Rate reflects the average rate at which major European banks lend unsecured funds to one another. The Euribor rate also captures some credit risk because of the involvement of banks. The curve mirrors that of ESTR forwards, so it also suggests rates could dip modestly by March before rising above 2% again into 2027. Paul Hollingsworth, head of developed markets economics at BNP Paribas, believes the ECB's next move will be to hike rates in the fourth quarter of next year. 'I see the rate hike as a recalibration within the neutral the balance of data and risks shifts from the drag of tariffs toward a more positive impulse driven by fiscal policy,' he said.
Top Gear
an hour ago
- Top Gear
Electric Car Grant: here's every car in the UK that gets the discount
Good news: the Electric Car Grant has returned! As surely everyone is thinking, ain't no party like an ECG party. And like all good ECG parties, this one comes with fun like: rules! Stipulations! Eligibility criteria! The government of the United Kingdom has introduced two bands in order to obtain this ECG: Band 1, which offers a fat £3,750 discount for those cars with the lowest CO2 manufacturing footprint, and Band 2, which offers a less fat £1,500 discount for those cars above a certain threshold. The government of the United Kingdom has not yet confirmed what those thresholds are, and… no electric car in the United Kingdom currently qualifies for the fat £3,750 discount. So for now, here's a big list of every car that gets the less fat £1,500 off. Advertisement - Page continues below The hot version of the new Renault 5 supermini. How much of the grant applies? £1,500 (Band 2). So what does it cost after the grant? From £32,000. What do you think of it? It's a very different experience to hot Clios of old, but still a good one… there's a sense of humour, good looks, usable performance, gadgets to play with and it's well priced. Read the full review here You might like It's the electric version of Citroen's best-selling car ever, the C3. How much of the grant applies? £1,500. So what does it cost after the grant? From £20,595. What do you think of it? There's a lot we really, really like about the Citroen e-C3… and not a lot we don't. Read the full review here Advertisement - Page continues below Essentially a slightly larger, raised version of the standard C3 supermini. How much of the grant applies? £1,500. So what does it cost after the grant? From £21,595. What do you think of it? It fulfils its brief as a slightly roomier C3 without becoming too posh or too expensive. Read our full review here Good question. It's still a hatchback, but slightly taller. Not tall enough to be an SUV, and too sleek of boot to be a crossover. How much of the grant applies? £1,500. So what does it cost after the grant? From £26,150. What do you think of it? It's an interestingly styled hatch with a very reasonable asking price. Read our full review here Largely identical to the e-C4, only with an elongated rear end. How much of the grant applies? £1,500. So what does it cost after the grant? From £27,215. What do you think of it? Could do with a slightly firmer setup for better body control: the extra weight (over 200kg vs the hybrid) means it suffers from a bounce and a wallowyness that isn't there in the hybrids. Read the full review here A big, friendly Citroen, now in its second generation and freshly electrified. How much of the grant applies? £1,500. What will it cost? From £32,565. What do you think of it? We've not driven it yet, but it sits on the same bones as the Peugeot e-3008 and e-5008, and both of those are decent... Read the full story here Advertisement - Page continues below A van-based car that offers immense practicality and loads of space. How much of the grant applies? £1,500. So what does it cost after the grant? From £29,740. What do you think of it? Enormously practical and built for family life, the Berlingo does all you could realistically ask of it. Read our full review here Only Nissan's second attempt at an electric car since it introduced the Leaf in 2010 and stole a march on everyone. How much of the grant applies? £1,500. So what does it cost after the grant? From £33,500. What do you think of it? Looks fun, but drives a bit more like you'd expect a Nissan to. If you're after an electric family SUV with a decent amount of range, then you could do a lot worse. Read our full review here Advertisement - Page continues below Everyone's favourite learner car, here reimagined as an electrified supermini, ready to be silently dinged into oblivion by an entirely new generation of drivers. How much of the grant applies? £1,500. So what does it cost after the grant? From £21,495. What do you think of it? We've yet to drive the new one, but it's the based on the 'AmpR Small' platform that underpins the award-winning Renault 5. Find out more here Closely related to the wonderful Renault 5 EV, but with an 8cm longer wheelbase. That's why it's a little more expensive than the R5, even if their names might make you think the prices are the other way around. How much of the grant applies? £1,500. So what does it cost after the grant? From £25,495. What do you think of it? There's goodness in the R4 that goes beyond design: the interior is sublime, the tech is well executed, it's value for money and (most importantly of all) unfailingly uplifting to drive. Renault has hit another home run with this. Read our full review here More than just a simple electric supermini, this is a small car you desire rather than merely decide upon. How much of the grant applies? £1,500. So what does it cost after the grant? From £21,495. What do you think of it? It feels consistent: as charming to drive as it is to look at and to sit in. Your first love should last. Read our full review here Renault's family hatch, designed and built all-in for battery power. How much of the grant applies? £1,500. So what does it cost after the grant? From £30,995. What do you think of it? The Megane is conventionally desirable, handsome, well-finished and easy to use... there's very little wrong with it. Read our full review here It's a long-ish wheelbase, long-range electric family car. How much of the grant applies? £1,500. So what does it cost after the grant? From £35,495. What do you think of it? Space, efficiency and superb tech count in the Scenic's favour. But it's also good-looking on the outside and well-finished within. Read our full review here It's an Astra. And specifically, the Astra Electric. There aren't many more recognisable names in the heartland of British motoring these days. How much of the grant applies? £1,500. So what does it cost after the grant? From £32,630. What do you think of it? We like the eighth-generation Astra, and the electric one is the best of the lot… we're just not head-over-heels in love with it. Read our full review here In case you hadn't guessed yet, it's the fully electric version of one of Britain's best-selling cars. How much of the grant applies? £1,500. So what does it cost after the grant? From £25,280. What do you think of it? It's significantly less peacocky than its Honda or Mini rivals, and it'll go further and has bags more room for people. Read our full review here Vauxhall Combo Life Electric The same van-based car as the Citroen e-Berlingo and the Peugeot e-Rifter. How much of the grant applies? £1,500. So what does it cost after the grant? From £30,690. What do you think of it? The Combo is well judged for family life and makes no misguided attempts at sportiness. Read our full review here Vauxhall Frontera Electric It's the new Vauxhall Frontera, making its return after a 20-year absence. How much of the grant applies? £1,500. So what does it cost after the grant? From £23,995. What do you think of it? It feels well judged. Its driving manners exceeded our expectations, it blends the company's now familiar image with the kind of rugged looks people favour these days, and above all there's no arguing with the cost. Read the full review here Vauxhall Grandland Electric It's the second-generation Vauxhall Grandland, available for the first time with electric power, in case you hadn't already guessed by the name. How much of the grant applies? £1,500. So what does it cost after the grant? From £34,555. What do you think of it? This is a car you'll buy with your sensible shoes on, and not those fluorescent trainers you got on a whim and haven't worn since. Read our full review here Vauxhall's smallest crossover. How much of the grant applies? £1,500. So what does it cost after the grant? From £30,180. What do you think of it? What the Mokka does is make a Corsa-sized crossover more interesting than it has any right to be. Read the full review here
