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And let's take a look at some stocks on the move today in Europe. I'm Stephen Carroll with Caroline Hepger and we're joined by Bloomberg's Breaking News editor Louise Moon. Louise, let's start with the banks in the UK. We are seeing shares lower this morning, and we're looking at this in the context of the political instability.
Indeed, yeah, that's some of the biggest foolers in London this morning.
So we've got the likes of nat West, Barclay's, Lloyd's all down over about four percent. And as you say, this is all in the back of this political risk that's being felt in the UK. A big day for Starmer, questions over whether he'll survive. He has just told cabinet that he's staying as Prime Minister and he takes responsibility for the election result.
But bank stocks are lower.
There was a note this morning from JP Morgan and List saying that if there is a change in leadership or a shift to the left with that change that could impact the sector via guilt yields, weaker growth outlook. There's also worries about the potential for higher taxation if that happens. So they're saying that their base case now assumes if that happened, that the UK banking surcharge will
increase to five percent from the current three percent. So worries there and that's being played out across banks this morning in London.
Yeah, okay, so that's interesting on the repercussions. Then for the UK. Let's think about m and A though into tech rising after the private equity firm.
EQT made another bid. Tell us about this, Yes, yes, another bid.
So fourth and final bid from EQT for Intertech is obviously the foot seat one hundred firm.
They've said they're considering it.
They have rejected it three times before for what they call undervaluing the firm, but they're coming under more and more pressure from their own investors to pursue this deal. So one of those key investors pushing for that is the activist investor Pallaser Capital. They've built a stake they want that takeover to happen. So the latest offer is for about sixty pounds a share in cash and it would value Intertech at about nine point two billion pounds.
So it comes less than a week after they rejected the last one, so we'll have to wait and see whether that comes through. Intertect themselves at the same time have been pushing for a strategic review considering splitting the business. So two things at play here and ongoing kind of potential m and a sagus.
We're keeping a close eye on that one. Coming back to the UK.
Then for Greggs, the high street baker revealing accelerating growth thanks to new menu items.
Yeah, so it's a good and much needed good news story. Really.
For Greg's, they're leading gains on the foot seed two fifty so sales rising, helped by some of their new offerings, as you say, so chicken rolls among them, which they called a standout performer. And less is saying this this this sales update, it's enough to kind of clear a low bar.
Expectations are very low.
Greg's has been among some of the most shorted stocks in London lately. You know, there's been doubts over its expansion plans, in particularly they had big expansion plans. But these sales show a pickup in momentum, even if it
is slightly modest. And then also in terms of the Middle East impact, they say that they've got forward buying in place for about five months worth of food and packaging, and eighty five percent of energy and fuel needs have been fixed, so they're sheltered for the moment from those impacts. But they did warn of higher cost inflation if the conflict continues, so potentially some headwinds ahead, but for the moment, sales are positive for Quicks.
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