Gold Soars Past $3,000 Record High Amid Growing Geopolitical Tensions; Thames Water Attracts Six Takeover Bids – Live Updates | Business News

However, as with past major reforms, a fiscal expansion alone does not guarantee success; the incoming government must implement structural reforms to convert this fiscal initiative into sustainable economic growth.”

For comprehensive updates, refer to our Europe live blog:

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Updated at 4:11 PM CET

Substantial salary increases at Reach

Executives at the company behind the Mirror, Express, and Star newspapers received remuneration exceeding £2 million in total last year, which has drawn ire from staff who saw minimal wage increases following last year’s profit surge.

Jim Mullen, chief executive of Reach, which oversees over 100 news brands including the Manchester Evening News and Birmingham Mail, earned a total of £1.25 million last year.

His earnings were bolstered by a maximum bonus of £662,000 following a 6% boost in operating profit to £102 million.

As per Reach’s annual financial statements, Mullen’s compensation was reported to be 35 times greater than that of an employee at the 25th percentile, which represents the lower end of the company’s pay scale.

Darren Fisher, Reach’s finance chief, earned a total of £857,000, including a bonus of £378,000.

Despite a previous reduction that affected over 800 staff, Reach managed to secure a 5% raise for employees last year, along with a £600 bonus payment this month through the company’s profit-sharing scheme.

Management is currently negotiating with the National Union of Journalists regarding a proposed 2% increase for this year, while adjustments to the salaries of Mullen and Fisher will be determined on April 1.

The NUJ has stated that in light of the recent disclosures regarding executive compensation, Reach should reconsider its pay proposals.

“It’s encouraging to see that the company has revitalized its digital revenues and improved operating profits from which these bonuses are awarded,” noted Reach’s NUJ chapel.

“That said, this success has been achieved through extraordinary efforts by staff to enhance digital output and to deliver print content effectively, all while resources remain limited due to significant layoffs.”

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Updated at 3:35 PM CET

Fund managers exit US stocks at unprecedented rates

Donald Trump’s administration is reportedly influencing a significant withdrawal from the US stock market.

Bank of America’s latest Global Fund Manager Survey has revealed a notable outflow from US equities, signaling a shift as investors grapple with concerns over trade wars and the potential for a US recession.

BofA noted a “bull crash” in sentiment among fund managers during this period, indicating March has experienced the second-largest decline in projected global growth, the largest decrease in US equity allocations ever, and the most substantial rise in cash holdings since March 2020.

Market performance this year reflects these trends, with the S&P 500 index down by 4.5% while Europe’s Stoxx 600 index surged by 9%.

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Gold reaches new pinnacle of $3,038

In other financial developments, the US dollar has regained some strength following earlier declines, resulting in the pound dropping to $1.296.

Gold, however, remains resilient and has now reached a new record of $3,038 per ounce, marking a 1% increase today due to ongoing volatility resulting from tensions in the Middle East, apprehensions surrounding trade conflicts, and a continued shift towards safer asset classes.

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Updated at 2:48 PM CET

CMA to examine water companies’ requests for increased billing

In the wake of numerous acquisition proposals for Thames Water, the regulator Ofwat has sought the competition authority’s input on higher billing requests from various water companies.

Ofwat is referring requests from Anglian Water, Northumbrian Water, South East Water, Southern Water, and Wessex Water to the Competition and Markets Authority (CMA).

These companies are challenging Ofwat’s recent decision concerning permissible bill increases for the period between 2025 and 2030, claiming that the average 36% rise is insufficient for necessary investments in infrastructure, such as pipes, drains, reservoirs, and treatment facilities.

Ofwat has defended its stance, emphasizing:

This investment increase will lead to higher customer bills starting April 1; many customers have already raised concerns regarding the extent of this increase.

Although the companies have yet to clarify the specifics behind their appeals, initial statements pinpoint the need for additional funding beyond the considerable hike already sanctioned. Such an increase would likely result in even higher bills for consumers.

Interestingly, the regulator has also agreed to Thames Water’s request to delay its CMA referral by up to 18 weeks, granting them time to potentially identify a market-driven solution for the company’s recapitalization, likely as a result of the six proposals currently in play.

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Thames Water announces six acquisition interests

Thames Water has disclosed that it has received six acquisition offers from interested parties.

The beleaguered utility company, which has been facing operational challenges for several months, stated these offers are part of a fundraising initiative launched in 2024, which has led to a thorough evaluation of each proposal.

Thames also noted that several of the offers would involve concessions from its bondholders:

The proposals encompass a variety of valuations, structures, and outcomes for stakeholders. Among the more financially detailed offers examined, all but one (from a Class B creditor with substantial conditions) suggested material impairments to Class A debt.

The additional offer sought minority equity investment, designed to collaborate with investors without specifying financial metrics.

In some of the proposals under consideration, creditors may receive rights to participate in future growth and/or opportunities to co-invest in the business in exchange for debt impairment.

Thames further explained that most proposals hinge on the company obtaining various necessary regulatory support and accommodations, reflecting its financial struggles, including a £19 billion debt load and deteriorating infrastructure.

Discussions with relevant parties continue, but the company highlights that there’s no certainty around any binding equity offer materializing or being executed. Consequently, some senior creditors are exploring alternative transaction models to attempt to recapitalize the business.

Thames has not identified any of the prospective buyers.

Previously, in December, the company received a £5 billion bid from Covalis Capital, an infrastructure investment firm.

News of these upcoming six acquisition offers comes on the heels of a recent UK court of appeal decision to uphold an emergency support package worth up to £3 billion, which is intended to sustain Thames Water’s operations for a few months while recapitalization efforts are underway.

Reports indicate that Thames Water is also requesting relief from several billion pounds in costs and penalties over the next five years in order to ease pressures on consumer bills and attract new investors.

The company aims to persuade the regulator Ofwat to grant substantial leniency on fines and extra expenses to facilitate its appeal to potential bidders.

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Updated at 3:33 PM CET

South Yorkshire aims to bring bus services under public control

South Yorkshire has become the latest region to initiate plans for bringing bus services under public management.

Mayor Oliver Coppard has joined other northern metro mayors in pursuing bus franchising to enhance local transportation services.

Today’s announcement follows a public consultation where nearly 90% of the 7,800 respondents expressed support for local authority control over bus operations.

South Yorkshire will take over the bus network, similar to Greater Manchester, West Yorkshire, and Liverpool, managing everything from depots and vehicle fleets to routes, schedules, ticketing, and fare structures. The new system is projected to commence in September 2027.

Coppard stated that this shift represents a reversal of the failed privatization of the bus system that began in the 1980s, effectively returning control to public transport.

He elaborated:

“Over the past four decades, public transport has been fragmented; ticket prices have risen, service routes dwindled, and ridership has fallen, contributing to stagnation in our city centers and high streets.

“My goal is to foster a robust economy in South Yorkshire, necessitating an effective public transport network that allows people timely access to various destinations.

“Our vision is a cohesive transport system across Barnsley, Doncaster, Rotherham, and Sheffield that prioritizes community needs and economic interests, putting people back in charge of essential services.”

The new transport brand will likely cover buses, trams, and other public transport, akin to Manchester’s Bee Network.

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Updated at 2:07 PM CET

FT: Google parent company Alphabet set to acquire cybersecurity firm Wiz for $32 billion

Google is preparing to embark on its largest acquisition to date, a move that may challenge competition regulators.

Alphabet, Google’s parent company, has reportedly consented to acquire the cybersecurity start-up Wiz for a minimum of $32 billion, according to the Financial Times, with an official announcement expected soon.

Wiz, founded in 2020 by former personnel of Israel’s elite cyber intelligence unit, offers services to identify security risks in the data managed by cloud providers like Amazon Web Services and Microsoft Azure.

The company previously rejected a $23 billion proposal from Google last year and recently inaugurated its European office in London.

According to the FT:

The all-cash acquisition, purported to be the largest deal of the year so far, will be officially announced on Tuesday. It is expected to undergo examination by the Federal Trade Commission under President Trump’s administration, as the new chair, Andrew Ferguson, has retained authority to scrutinize and potentially block large transactions implemented by his predecessor, Lina Khan. An additional retention incentive worth up to $1 billion is also apparently included for employees as part of the acquisition.

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Source
www.theguardian.com