Barclays Exits African Bank in Regional Retreat: The London Rush

Here’s the key business news from London-listed companies this morning.

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(Bloomberg) — Here’s the key business news from London-listed companies this morning.

Reckitt Benckiser Group Plc: The consumer group’s CEO  Laxman Narasimhan will step down and move back to the United States. 

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  • The company named former British American Tobacco Plc CEO, and current Reckitt board member,  Nicandro Durante to replace him, as the board selects the next person to lead the company

Barclays Plc: The British bank sold its remaining 63 million shares in South African lender Absa Group Ltd, exiting an investment it made in 2005 and marking its second retreat from the region.

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  • That placing priced at 169 rand per share this morning, raising gross sale proceeds of about £538 million

Rio Tinto Plc: The mining giant has finally reached a deal to buy out  Turquoise Hill Resources Ltd., valuing the company’s minority share capital at about $3.3 billion.

  • That deal, which has been agreed after multiple attempts, will give Rio Tinto more control of a giant copper mine in Mongolia

Outside The City

Liz Truss ruled out introducing any new taxes or rationing of energy this winter if she becomes UK’s next prime minister at the final Conservative hustings in London last night. Truss is the bookmakers’ favorite to succeed Boris Johnson. The winner will be announced on Monday. 

The government is planning to offer fixed-price contracts to more renewable-energy producers in an effort to ease the impact of soaring power costs on households this winter — that’s according to people familiar with the discussions.

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In Case You Missed It 

As Business Secretary Kwasi Kwarteng a favorite to be the country’s next chancellor of the exchequer, Bloomberg Opinion’s Adrian Wooldridge asks: Can Kwasi Kwarteng Rescue Britain’s Economy?

That question is increasingly important in the wake of the Resolution Foundation’s warning that Britons face the biggest squeeze on living standards in a century, unless the government delivers tens of billions pounds of additional support.

Soaring inflation is also squeezing businesses and their ability to raise funds. Borrowing costs for blue-chip British companies have risen past 5% for the first time in more than a decade, a key threshold.

Looking Ahead

Emerging market asset manager Ashmore Plc is due to report its full year earnings tomorrow. In July the company reported assets under management at a five-year low as turbulent markets and poor performance led to clients pulling funds.

For a news fix when the day is done, sign up to The Readout with Allegra Stratton, to make sense of the day’s events.

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