8.31am: Petrofac restructuring
Petrofac Limited (LSE:PFC) has applied to the High Court to appoint administrators to its ultimate holding company, Petrofac Ltd.
It said this was “a targeted administration” of the holding company only, with the group’s operations continuing to trade, and options for alternative restructuring and M&A solutions are being “actively explored” with key creditors, including the ad hoc group of noteholders, who are supporting the group through continuing forbearance agreements.
Maturities for bank lending and term loans continue to be extended on a rolling basis.
The shares have been suspended since the start of May.
8.16am: FTSE opens tentatively
The FTSE 100 has opened uncertainly, adding four points after flirting in the red in early trades.
Miners Glencore, Antofagasta and Anglo American, along with tech investment trusts, are among the initial risers – both likely to be buoyed by the latest upswing spirits over US-China trade talks.
Centrica, Endeavour Mining and Fresnillo are leading the fallers as gold and silver prices both drop over 1%.
HSBC is down 1% after news of its Madoff-linked provision earlier.
7.50am: Takeover updates
Some updates on agreed takeovers.
The UK Competition and Markets Authority has announced that its Phase 1 decision on the merger of Greencore Group PLC (LSE:GNC) and Bakkavor Group PLC (LSE:BAKK) mostly does not give rise to competition concerns in the vast majority of areas reviewed, with only the supply of own-label chilled sauces seen as a possible snag.
Greencore now has the opportunity to put forward remedies to address this concern to avoid an in-depth Phase 2 investigation, with the deal still expected to be completed in early 2026.
Elsewhere, the purchase of Dowlais Group PLC (LSE:DWL) by American Axle & Manufacturing is expected to close in the first quarter of 2026.
After the combination was unconditionally cleared by the European Commission, the companies flagged that this is now the case under antitrust laws in seven of the ten required jurisdictions where filings were made, including the USA, India and the UK.
The clearances that remain outstanding under antitrust laws are Brazil, Mexico and China, respectively expected in early November, the fourth quarter and in late 2025 or early 2026.
7.29am: HSBC makes provision related to Ponzi scheme lawsuit
HSBC Holdings PLC (LSE:HSBA) says it will make a $1.1 billion provision in its third quarter 2025 results, which are due tomorrow, in connection with litigation relating to Ponzi scheme fraudster Bernie Madoff.
The case, filed in 2009 in Luxembourg by Herald Fund SPC, involves claims against fund administrator HSBC Securities Services Luxembourg (HSSL) for restitution of securities and cash.
It will not affect the group’s full-year 2025 return on tangible equity excluding notable items or any dividend payments, the bank says.
As a reminder, Madoff was the financier behind one of the biggest scams in global history, swindling clients out of an estimated $17.5 billion over several decades.
Celebrities were among those caught by the scam, with actor Kevin Bacon and director Stephen Spielberg said to have lost substantial sums.
7.16am: FTSE 100 poised for firm start on US-China trade optimism
The FTSE 100 is poised for a firmer open as we begin the last week of October, helped by renewed optimism about US-China trade relations.
Futures point to a 15-point increase in initial trades, after the London index finished last week with two record closing highs in a row, ending at 9,645.62, up 291 points over the week.
Asian markets are buoyant this morning, with Japan’s Nikkei up 2.5% and Hong Kong’s Hang Seng and the Shanghai benchmark both up over 1%.
Wall Street closed higher on Friday after inflation data was seen as not closing the door on another Federal Reserve interest rate cut this week.
The US dollar and 2-year Treasury yield are both firmer this morning amid “renewed risk appetite and optimism that the US and China are inching closer to a trade deal”, says market analyst Ipek Ozkardeskaya at Swissquote Bank.
“Early reports suggest the two sides have reached an initial agreement on major issues, including export controls, shipment levies and fentanyl, raising hopes that Thursday’s meeting between Trump and Xi could yield tangible progress.”
As well as the Fed meeting, US earnings will be in the spotlight this week, with the tech heavyweights Microsoft, Alphabet, Meta, Apple and Amazon all set to report third-quarter results.
“Because they account for roughly a quarter of the S&P 500’s total market capitalisation, invest heavily in AI and have shouldered the market rally since early 2023 despite wars, rate hikes and global economic headwinds, their results will be crucial in determining whether the tech-led rally can extend further,” says Ozkardeskaya.
