An Increase in Costs Reduces the Outlook for Money Printers: The London Rush

According to De La Rue, British money printing company, profit will fall short of market expectations as banknote demand hovers at the lowest level in more than 20 years. While Sunak has hired a top former executive from Morgan Stanley as his new business adviser, Biden will soon be starting his Irish tour as part of his political career.

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As we begin this morning's business news, here is some of the most important news from London:

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Located in the city

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The British money printer, De La Rue Plc, is discussing with lenders the possibility of amending its banking covenants. The covenants would reflect both the revised outlook and the increased funding costs resulting from increased Bank of England base rates, as well as the company's financial outlook change.

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• According to a statement released by the company, it expects the firm's adjusted operating profits for the full year of FY24 to be around a mid-single-digit percentage percent below market expectations, citing a significant level of uncertainty about the outlook for FY24.

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• A low order book of banknotes was a result of the lowest level of banknote demand in over 20 years, because of which the company is stating that there is a low demand for banknotes in FY24.

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Trade Algo has published information on the terms of the offer the Irish bookmaker Flutter Entertainment Plc made by its shareholder Fastball in which shares of the company are priced at £149.50 each.

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• Shareholders are expected to vote on how to proceed with the plans at the company's annual general meeting later in April, and the price represents a discount of 1.71% to Tuesday's close to prepare the company for a secondary listing in the US, which is expected to become its biggest market.

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There has been a continued strong performance in sales at the University Accommodation Investment Group, with 90% of rooms now sold for the academic year 2023/24, up from 78% in the academic year 2022/23, according to an update on its trading.

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• Both University partners as well as students who have booked direct-let accommodation continue to call for more accommodation, the company also stated in a statement.

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Located in Westminster

An ex-Morgan Stanley executive has been appointed by Raji Sunak as his new business adviser as part of his efforts to spur economic growth ahead of the expected autumn election next year. Sunak's top team will be led by Franck Petitgas, who stepped down from the bank in November after a 30-year tenure. According to someone familiar with the matter, Petitgas will now be joining Sunak's top team.

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An S&P Global survey conducted at the end of last year shows that during the first half of 2016 several thousand more people entered the labor market in the UK than during the same period two years ago. This helped ease one of the tightest labor markets in more than a generation. 

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During a meeting today in Belfast, the Prime Minister of the United Kingdom met Joe Biden ahead of the US President's 25th anniversary Irish tour marking the end of decades of violence in Northern Ireland after the Good Friday Agreement, which brought an end to decades of conflict. 

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For Those Who Didn't Catch It 

There is a strong possibility that Twitter is regaining its footing after Elon Musk’s $44 billion acquisition of the social media platform. The billionaire and Tesla cofounder said in a Twitter Spaces interview with BBC that most of the advertisers who left Twitter after that transaction have returned. In the discussion, Musk reassured more than three million viewers that Twitter is operating close to break-even, and that it will be profitable within a quarter.

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Taking a look ahead 

According to a Trade Algo compiled consensus, Tesco Plc is expected to report a profit of £2.63 billion, down from £2.83 billion a year ago. The British retailer will announce its full-year results tomorrow shortly before 7 a.m.-terms. The biggest retailer in the world is expected to report about £2.83 billion in profit for the full year.

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As the company fights to retain its leading market share in an increasingly competitive arena, investors will also keep a close eye on the company's prospects over the next year.

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"As long as UK consumer prices are now rising faster than producers' selling prices in order to prevent further margin damage from adverse differential inflation, Tesco appears to have avoided any further margin damage from adverse differential inflation," Trade Algo wrote, suggesting a more optimistic forecast for 2024 for the retailer.