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| London Stock Exchange in merger talks with Deutsche Börse - as it happened | London Stock Exchange in merger talks with Deutsche Börse - as it happened |
| (6 months later) | |
| 5.43pm GMT | 5.43pm GMT |
| 17:43 | 17:43 |
| European shares end lower as oil drops again | European shares end lower as oil drops again |
| A slide in the oil price as Saudi Arabia seemed to rule out hopes of production cuts sent stock markets sharply lower again after Monday’s rally. | A slide in the oil price as Saudi Arabia seemed to rule out hopes of production cuts sent stock markets sharply lower again after Monday’s rally. |
| Brent crude is currently nearly 4% lower at $33.32, while West Texas Intermediate is down almost 5%. | Brent crude is currently nearly 4% lower at $33.32, while West Texas Intermediate is down almost 5%. |
| Meanwhile the pound continued to come under pressure on Brexit fears, falling to $1.4022. | Meanwhile the pound continued to come under pressure on Brexit fears, falling to $1.4022. |
| Commodity companies were among the day’s big fallers, on renewed concerns about a slowdown in China and news that BHP Billiton was slashing its dividend. | Commodity companies were among the day’s big fallers, on renewed concerns about a slowdown in China and news that BHP Billiton was slashing its dividend. |
| Standard Chartered was also a big faller, down nearly 7% after reporting its first loss in 26 years amid worries about its exposure to emerging markets. The final scores showed: | Standard Chartered was also a big faller, down nearly 7% after reporting its first loss in 26 years amid worries about its exposure to emerging markets. The final scores showed: |
| On Wall Street, the Dow Jones Industrial Average is down 178 points or just over 1%. | On Wall Street, the Dow Jones Industrial Average is down 178 points or just over 1%. |
| On that note, it’s time to close for the evening. Thanks for all your comments, and we’ll be back tomorrow. | On that note, it’s time to close for the evening. Thanks for all your comments, and we’ll be back tomorrow. |
| 4.58pm GMT | 4.58pm GMT |
| 16:58 | 16:58 |
| Sterling has hit a new seven year low against the dollar of $1.4044, following Bank of England governor Mark Carney’s comments suggesting UK interest rates could be cut. | Sterling has hit a new seven year low against the dollar of $1.4044, following Bank of England governor Mark Carney’s comments suggesting UK interest rates could be cut. |
| The UK currency has also come under renewed pressure on the uncertainty over the forthcoming referendum on whether Britain should leave the European Union, which Carney also referred to. | The UK currency has also come under renewed pressure on the uncertainty over the forthcoming referendum on whether Britain should leave the European Union, which Carney also referred to. |
| Updated | Updated |
| at 5.10pm GMT | at 5.10pm GMT |
| 4.06pm GMT | 4.06pm GMT |
| 16:06 | 16:06 |
| I think it's fair to say the #oil market didn't warm to that #Naimi speech...#Saudi #WTI #Brent #shale #Iran #OPEC pic.twitter.com/leTEbC39yQ | I think it's fair to say the #oil market didn't warm to that #Naimi speech...#Saudi #WTI #Brent #shale #Iran #OPEC pic.twitter.com/leTEbC39yQ |
| 3.55pm GMT | 3.55pm GMT |
| 15:55 | 15:55 |
| Saudi oil minister pours cold water of hopes of output cuts | Saudi oil minister pours cold water of hopes of output cuts |
| Crude continues to weaken as Saudi oil minister Ali Al-Naimi suggested production cuts were not on the cards. | Crude continues to weaken as Saudi oil minister Ali Al-Naimi suggested production cuts were not on the cards. |
| He told a conference in Houston that cutting production would not happen, but major producers would freeze output to help the market rebalance. | He told a conference in Houston that cutting production would not happen, but major producers would freeze output to help the market rebalance. |
| Saudi Arabia and Russia recently agreed to freeze output at January levels in an effort to deal with the supply glut which has sent crude prices tumbling. | Saudi Arabia and Russia recently agreed to freeze output at January levels in an effort to deal with the supply glut which has sent crude prices tumbling. |
| He said in Houston that he hoped there would be more agreements on freezing in March, when more meetings will be held. | He said in Houston that he hoped there would be more agreements on freezing in March, when more meetings will be held. |
| He said “most of the countries that count” would freeze, according to Reuters. Earlier Iran had apparently dismissed the proposal as ridiculous, despite the country seeming to support it last week. | He said “most of the countries that count” would freeze, according to Reuters. Earlier Iran had apparently dismissed the proposal as ridiculous, despite the country seeming to support it last week. |
| Al-Naimi said the price rout would ease although he did not know when. And he added that he was not banking on cuts “because there is less trust than usual”, said Reuters. | Al-Naimi said the price rout would ease although he did not know when. And he added that he was not banking on cuts “because there is less trust than usual”, said Reuters. |
| Brent is currently down 3% at $33.62 a barrel while West Texas Intermediate - the US benchmark - is 4% lower at $32.03. Jasper Lawler at CMC Markets said: | Brent is currently down 3% at $33.62 a barrel while West Texas Intermediate - the US benchmark - is 4% lower at $32.03. Jasper Lawler at CMC Markets said: |
| Oil prices turned lower after the Iranian oil minister’s colourful description of the output freeze between Russia and Saudi Arabia as “ridiculous.” Iran and its plans to ramp up output after the lifting of sanctions is proving a thorn in the side of other producing counties which appear to be reaching consensus that production should stay at current levels. Tensions are clearly rising in the cartel as the Saudi oil minister reposted that “not all the countries will freeze. The ones that count will.” | Oil prices turned lower after the Iranian oil minister’s colourful description of the output freeze between Russia and Saudi Arabia as “ridiculous.” Iran and its plans to ramp up output after the lifting of sanctions is proving a thorn in the side of other producing counties which appear to be reaching consensus that production should stay at current levels. Tensions are clearly rising in the cartel as the Saudi oil minister reposted that “not all the countries will freeze. The ones that count will.” |
| Updated | Updated |
| at 4.13pm GMT | at 4.13pm GMT |
| 3.39pm GMT | 3.39pm GMT |
| 15:39 | 15:39 |
| The day’s confidence figures show how fragile sentiment is at the moment, says analyst Connor Campbell at Spreadex: | The day’s confidence figures show how fragile sentiment is at the moment, says analyst Connor Campbell at Spreadex: |
| Whilst the [US] existing home sales figure actually saw a mild increase month-on-month, from 5.45 million to 5.47 million, more notable was the sharp decline in the CB consumer confidence number. | Whilst the [US] existing home sales figure actually saw a mild increase month-on-month, from 5.45 million to 5.47 million, more notable was the sharp decline in the CB consumer confidence number. |
| Coming in at 92.2 against the 97.4 last month the figure, like this morning’s year-low German Ifo business climate data, highlights just how entrenched the market’s current fears are, despite the sporadic surges that have taken the global indices to a variety of recent highs. There was to be no such surge this afternoon, however, the Dow Jones dropping over 100 in light of that literal knock to the index’s confidence. | Coming in at 92.2 against the 97.4 last month the figure, like this morning’s year-low German Ifo business climate data, highlights just how entrenched the market’s current fears are, despite the sporadic surges that have taken the global indices to a variety of recent highs. There was to be no such surge this afternoon, however, the Dow Jones dropping over 100 in light of that literal knock to the index’s confidence. |
| Over in the UK the FTSE fell past its earlier lows as the afternoon progressed, declining around 50 points to trickle underneath the 6000 mark following the weak US open, a drop exacerbated by Brent Crude slipping under $34 per barrel once again. | Over in the UK the FTSE fell past its earlier lows as the afternoon progressed, declining around 50 points to trickle underneath the 6000 mark following the weak US open, a drop exacerbated by Brent Crude slipping under $34 per barrel once again. |
| 3.24pm GMT | 3.24pm GMT |
| 15:24 | 15:24 |
| LSE-Deutsche Börse deal faces "a number of challenges" | LSE-Deutsche Börse deal faces "a number of challenges" |
| Back with the London Stock Exchange, and analysts at Numis point to a number of problems facing its proposed merger with Deutsche Börse: | Back with the London Stock Exchange, and analysts at Numis point to a number of problems facing its proposed merger with Deutsche Börse: |
| This represents the third time the LSE and DB have attempted to merge, first in 2000 then in 2004. Although no details were given, a merger is expected to provide enhanced growth, significant customer benefits as well as substantial revenue and cost synergies. | This represents the third time the LSE and DB have attempted to merge, first in 2000 then in 2004. Although no details were given, a merger is expected to provide enhanced growth, significant customer benefits as well as substantial revenue and cost synergies. |
| However, we see a number of challenges in completing this deal, namely: | However, we see a number of challenges in completing this deal, namely: |
| (1) the competition authority is likely to ask a number of questions as it would create a dominant player in exchanges and clearing in Europe – the EC blocked a similar deal between Deutsche Börse and NYSE Euronext in 2012 citing competition concerns; | (1) the competition authority is likely to ask a number of questions as it would create a dominant player in exchanges and clearing in Europe – the EC blocked a similar deal between Deutsche Börse and NYSE Euronext in 2012 citing competition concerns; |
| (2) both have differing views on how to structure their respective clearing businesses – LSE backs open access (i.e. trading and clearing can occur on different platforms) whereas DB does not; | (2) both have differing views on how to structure their respective clearing businesses – LSE backs open access (i.e. trading and clearing can occur on different platforms) whereas DB does not; |
| (3) national pride – would UK politicians be happy with the main UK exchange being owned by a foreign entity. | (3) national pride – would UK politicians be happy with the main UK exchange being owned by a foreign entity. |
| So whilst we see the obvious benefits from such a deal (namely cost and revenue synergies), we remain mindful of the challenges that would need to be overcome for it to complete. | So whilst we see the obvious benefits from such a deal (namely cost and revenue synergies), we remain mindful of the challenges that would need to be overcome for it to complete. |
| 3.16pm GMT | 3.16pm GMT |
| 15:16 | 15:16 |
| The Richmond manufacturing index has also disappointed, coming in at -4 compared to the 2 which analysts had been looking for. | The Richmond manufacturing index has also disappointed, coming in at -4 compared to the 2 which analysts had been looking for. |
| However US existing home sales have beaten expectations, up 0.4% in January compared to a forecast fall of 2.5%. | However US existing home sales have beaten expectations, up 0.4% in January compared to a forecast fall of 2.5%. |
| Updated | Updated |
| at 3.19pm GMT | at 3.19pm GMT |
| 3.14pm GMT | 3.14pm GMT |
| 15:14 | 15:14 |
| USA Consumer Confidence announcement - Actual: 92.2, Expected: 97.0 pic.twitter.com/AggAe2BV5H | USA Consumer Confidence announcement - Actual: 92.2, Expected: 97.0 pic.twitter.com/AggAe2BV5H |
| 3.08pm GMT | 3.08pm GMT |
| 15:08 | 15:08 |
| US consumer confidence worse than forecast | US consumer confidence worse than forecast |
| US consumer confidence figures for February have come in much lower than expected, as the recent market volatility outweighs the benefits of cheaper oil. | US consumer confidence figures for February have come in much lower than expected, as the recent market volatility outweighs the benefits of cheaper oil. |
| The index fell from 97.8 in January - itself revised down from 98.1 - to 92.2. Analysts had been expecting a figure of 97. | The index fell from 97.8 in January - itself revised down from 98.1 - to 92.2. Analysts had been expecting a figure of 97. |
| This is the lowest level since July. Dennis de Jong, managing director at UFX.com, said | This is the lowest level since July. Dennis de Jong, managing director at UFX.com, said |
| Despite relatively healthy numbers over recent months, onlookers will be concerned with the worrying dip in this month’s consumer confidence data. | Despite relatively healthy numbers over recent months, onlookers will be concerned with the worrying dip in this month’s consumer confidence data. |
| It’s surprising that US shoppers have kept their wallets in their pockets for another month, especially considering that low gas prices continue to help them save. | It’s surprising that US shoppers have kept their wallets in their pockets for another month, especially considering that low gas prices continue to help them save. |
| While the slip may have a short-term negative affect on the US Dollar, if gas continues to stay low, it’s only a matter of time before US consumers get the spending bug again. | While the slip may have a short-term negative affect on the US Dollar, if gas continues to stay low, it’s only a matter of time before US consumers get the spending bug again. |
| RT @Riccanomix Big miss on consumer confidence in February, probably due to market turmoil. (92.2 vs. 97.8 prior) pic.twitter.com/UFdVAT3neO | RT @Riccanomix Big miss on consumer confidence in February, probably due to market turmoil. (92.2 vs. 97.8 prior) pic.twitter.com/UFdVAT3neO |
| Updated | Updated |
| at 3.12pm GMT | at 3.12pm GMT |
| 2.58pm GMT | 2.58pm GMT |
| 14:58 | 14:58 |
| @LSEGplc + @DeutscheBoerse is Chicago's nightmare scenario: @LCH_Clearnet + @EurexGroup =creation of European intrestrate+OTC clearing giant | @LSEGplc + @DeutscheBoerse is Chicago's nightmare scenario: @LCH_Clearnet + @EurexGroup =creation of European intrestrate+OTC clearing giant |
| 2.50pm GMT | 2.50pm GMT |
| 14:50 | 14:50 |
| Wall Street opens lower | Wall Street opens lower |
| Meanwhile US stock markets have opened lower, in line with the dips on European exchanges. | Meanwhile US stock markets have opened lower, in line with the dips on European exchanges. |
| The Dow Jones Industrial Average is down 40 points or 0.2% after another fall in oil prices - West Texas Intermediate is around 2% lower after a report Iran’s oil minister called the proposed output freeze ridiculous. At the open the S&P 500 is 0.3% lower and Nasdaq down 0.4%, ahead of the latest US consumer confidence figures. | The Dow Jones Industrial Average is down 40 points or 0.2% after another fall in oil prices - West Texas Intermediate is around 2% lower after a report Iran’s oil minister called the proposed output freeze ridiculous. At the open the S&P 500 is 0.3% lower and Nasdaq down 0.4%, ahead of the latest US consumer confidence figures. |
| Back in Europe the FTSE 100 is currently down 22 points or 0.3%, but would be another 4 points or so lower if not for the 16% jump in the shares of the London Stock Exchange. | Back in Europe the FTSE 100 is currently down 22 points or 0.3%, but would be another 4 points or so lower if not for the 16% jump in the shares of the London Stock Exchange. |
| 2.38pm GMT | 2.38pm GMT |
| 14:38 | 14:38 |
| It was not always so friendly between the LSE and Deutsche Börse: | It was not always so friendly between the LSE and Deutsche Börse: |
| Ah deja vu. And here's the note accidentally sent by LSE in 2000. Blame "german intransigence" if merger aborted. pic.twitter.com/lLq15hsWA7 | Ah deja vu. And here's the note accidentally sent by LSE in 2000. Blame "german intransigence" if merger aborted. pic.twitter.com/lLq15hsWA7 |
| And here’s the BBC’s story from the time. | And here’s the BBC’s story from the time. |
| 2.31pm GMT | 2.31pm GMT |
| 14:31 | 14:31 |
| Sean Farrell | Sean Farrell |
| Here’s our first take on the LSE-Deutsche Börse merger plan: | Here’s our first take on the LSE-Deutsche Börse merger plan: |
| The London Stock Exchange is in talks to merge with Germany’s Deutsche Börse in a deal that would seal an alliance first discussed at the turn of the millennium. | The London Stock Exchange is in talks to merge with Germany’s Deutsche Börse in a deal that would seal an alliance first discussed at the turn of the millennium. |
| The LSE confirmed on Tuesday it was in detailed discussions with its German rival about an all-share merger. Under the proposed structure, Deutsche Börse shareholders would own 54.4% of the combined company and LSE shareholders would hold 45.6%. | The LSE confirmed on Tuesday it was in detailed discussions with its German rival about an all-share merger. Under the proposed structure, Deutsche Börse shareholders would own 54.4% of the combined company and LSE shareholders would hold 45.6%. |
| The UK exchange said: “The boards believe that the potential merger would represent a compelling opportunity for both companies to strengthen each other in an industry-defining combination, creating a leading European-based global markets infrastructure group.” | The UK exchange said: “The boards believe that the potential merger would represent a compelling opportunity for both companies to strengthen each other in an industry-defining combination, creating a leading European-based global markets infrastructure group.” |
| The exchanges have considered combining forces before. They agreed to merge in 2000 before a rival bid for the LSE from Sweden’s OM Gruppen scuppered the deal, but was then rejected. The LSE then rejected a formal £1.3bn offer from Deutsche Börse in January 2005. | The exchanges have considered combining forces before. They agreed to merge in 2000 before a rival bid for the LSE from Sweden’s OM Gruppen scuppered the deal, but was then rejected. The LSE then rejected a formal £1.3bn offer from Deutsche Börse in January 2005. |
| The full story is here: | The full story is here: |
| 2.22pm GMT | 2.22pm GMT |
| 14:22 | 14:22 |
| David Cheetham of City trading firm XTB.com says a merger between the LSE and Deutsche Borse would create one of the world’s biggest financial trading platforms. | David Cheetham of City trading firm XTB.com says a merger between the LSE and Deutsche Borse would create one of the world’s biggest financial trading platforms. |
| “Shares in London Stock Exchange Group have soared by over 17% in the past hour as news that they’re in talks with Deutsche Boerse have been confirmed. If the deal were to go ahead it would create a clear market leader for European and one of the largest exchanges in the world for trading and risk managing derivatives. | “Shares in London Stock Exchange Group have soared by over 17% in the past hour as news that they’re in talks with Deutsche Boerse have been confirmed. If the deal were to go ahead it would create a clear market leader for European and one of the largest exchanges in the world for trading and risk managing derivatives. |
| The timing of this development appears coincidental as the possibility of a Brexit has become increased in recent days now that a referendum date has been set and Boris has joined the Out campaign.” | The timing of this development appears coincidental as the possibility of a Brexit has become increased in recent days now that a referendum date has been set and Boris has joined the Out campaign.” |
| 2.18pm GMT | 2.18pm GMT |
| 14:18 | 14:18 |
| The news that Britain’s stock exchange could soon merge with its German rival has startled the City, especially given the upcoming EU vote. | The news that Britain’s stock exchange could soon merge with its German rival has startled the City, especially given the upcoming EU vote. |
| Mike van Dulken, head of research at Accendo Markets, tweets: | Mike van Dulken, head of research at Accendo Markets, tweets: |
| Interesting timing for #LSE #Deutsche Boerse merger talks given how close #Brexit referendum is | Interesting timing for #LSE #Deutsche Boerse merger talks given how close #Brexit referendum is |
| 1.56pm GMT | 1.56pm GMT |
| 13:56 | 13:56 |
| LSE confirms merger talks! | LSE confirms merger talks! |
| It’s official! The London Stock Exchange has just confirmed that it is talking to Deutsche Börse about a merger deal. | It’s official! The London Stock Exchange has just confirmed that it is talking to Deutsche Börse about a merger deal. |
| It says: | It says: |
| Further to the recent movement in LSE’s share price, the Board of LSE and the Management Board of Deutsche Börse confirm that they are in detailed discussions about a potential merger of equals of the two businesses. | Further to the recent movement in LSE’s share price, the Board of LSE and the Management Board of Deutsche Börse confirm that they are in detailed discussions about a potential merger of equals of the two businesses. |
| This would create “a leading European-based global markets infrastructure group”, it claims, adding: | This would create “a leading European-based global markets infrastructure group”, it claims, adding: |
| The combination of LSE and Deutsche Boerse’s complementary growth strategies, products, services and geographic footprint would be expected to deliver an enhanced ability to provide a full service offering to customers on a global basis. | The combination of LSE and Deutsche Boerse’s complementary growth strategies, products, services and geographic footprint would be expected to deliver an enhanced ability to provide a full service offering to customers on a global basis. |
| Under the plan, Deutsche Börse shareholders would hold 54.4% of the new company, while LSE shareholders would hold 45.6%. | Under the plan, Deutsche Börse shareholders would hold 54.4% of the new company, while LSE shareholders would hold 45.6%. |
| The LSE’s shares are now up 17%, valuing the group at almost £9.5bn. | The LSE’s shares are now up 17%, valuing the group at almost £9.5bn. |
| Updated | Updated |
| at 2.24pm GMT | at 2.24pm GMT |