Business news in brief
Hammerson plans sale of retail parks after value plunges £2bn
Property giant Hammerson has confirmed it is in talks over a deal to sell its portfolio of UK retail parks. It has been reported that the Birmingham Bullring owner is set to sell its seven sites for around £350m to Canadian private equity firm Brookfield. Hammerson told investors yesterday that it is in “discussions” with Brookfield over the potential sale but there is “no certainty that a transaction will take place”. “The company will provide a further update in due course, if appropriate,” it added in a statement to the London Stock Exchange.The retail property specialist, which also operates Bicester Village, wrote down the value of its shopping centres and stores by nearly £2bn as Covid-19 saw rental income suffer the biggest fall in its history.
Fed’s Powell sees US boom ahead, with Covid still a risk
The US economy is poised for an extended period of strong growth and hiring, the chair of the Federal Reserve said in an interview broadcast on Sunday, though the coronavirus still poses some risk. Chair Jerome Powell, speaking to CBS’s 60 Minutes, also said he doesn’t expect to raise the Fed’s benchmark interest rate, currently pegged at nearly zero, this year. And he downplayed the risk of higher inflation stemming from sharp increases in government spending and expanding budget deficits. “We feel like we’re at a place where the economy’s about to start growing much more quickly and job creation coming in much more quickly,” he said.
Three-quarters of savers ‘determined to keep current habits’
More than three-quarters of savers are determined to continue putting away the same amount of money as they did during lockdown as restrictions ease, according to a survey. As England’s shops, hairdressers and pub beer gardens reopened yesterday, Zopa bank released research that found 77 per cent of savers across the UK want to put the same amount of money aside, even as they are able to socialise more. Seven in 10 (70 per cent) are planning to stick with savings habits they have only started in the past 12 months during the coronavirus pandemic. Three-quarters (75 per cent) want to avoid dipping into their savings.
Darktrace cosiders London IPO in wake of Deliveroo flop
Cybersecurity company Darktrace has said it intends to start selling its shares on the public exchanges as the business looks to expand into a $40bn (£29bn) global market. Darktrace said it is considering an initial public offering (IPO), which would mean that its shares start trading on the London Stock Exchange’s main market. It will be seen as a vote of confidence in the market, which was dealt a blow by the IPO of Deliveroo, whose shares are down considerably since listing two weeks ago. “There is a lot riding on Darktrace’s forthcoming IPO after Deliveroo’s stock market flop,” said AJ Bell investment director Russ Mould. PA
Homebase launches garden centres in Next stores
Next has struck a deal with Homebase to open mini-garden centres in six of the fashion giant’s stores. Shoppers will be able to pick up shrubs with their shirts as part of the trial by the two retail brands. Yesterday, Homebase garden centres opened in Next stores in Shoreham, Ipswich, Warrington, Camberley, Bristol and Sheffield. Homebase said it will offer customers a variety of plants, pots and garden tools alongside Next’s traditional home and clothing lines.