Javid's Plan Set for Next Wednesday
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Get more from your holiday money BUSINESS WITH PERSONALITY WEDNESDAY 28 AUGUST 2019 ISSUE 3,444 CITYAM.COM FREE Javid’s plan set for next Wednesday CATHERINE NEILAN BIG TOBACCO @CatNeilan PHILIP MORRIS AND ALTRIA ENTER CHANCELLOR Sajid Javid has brought forward his debut TALKS OVER $210BN MEGA-MERGER spending review to next Wednes day, fuelling speculation AS MARLBORO-MAKERS SEEK TO of an autumn General Election. Javid was due to give his first LIGHT UP ALTERNATIVE PRODUCTS major speech since becoming chancellor this morning, before it was cancelled yesterday. AUGUST GRAHAM Altria already plans to market PMI’s The Treasury said the Iqos – a heated tobacco product which spending review would “cover @AugustGraham won US approval in April – to American the themes and priorities he ONE OF the world’s most hotly consumers. was due to outline”. anticipated mega-mergers kicked off Meanwhile, Altria bought a 35 per One source told City A.M. the yesterday as tobacco giants Philip cent stake in popular vape pen maker decision to pull the speech had Morris International (PMI) and Altria Juul for $12.8bn late last year. come from Number 10. said they were in talks to form a Bonnie Herzog, managing director at Javid is expected to announce $210bn (£170bn) behemoth. Wells Fargo Securities, said ahead of significant spending hikes. The deal would reunite two the announcement that PMI would be companies that split up in 2008 amid an ideal partner to help the younger regulatory pressures at the time. Juul expand beyond the US. In recent years, both businesses Elliott said: “The combined entity – have put alternative nicotine products Philip Morris 2.0 – could present a such as e-cigarettes at the front and united front” on alternative products, Home Office centre of their strategies. and “go about a coordinated global The merger would be the fourth brand-building exercise the same advert banned largest on record, according to data way Philip Morris originally built from Refinitiv. Marlboro.” Analysts have suggested for some Shares in Altria initially by watchdog time that Altria might want to take jumped around 10 per cent, PMI back into its fold a decade after but they closed down almost CATHERINE NEILAN they separated. four per cent after CNBC Yesterday, Altria, which owns reported that there would be no @CatNeilan Marlboro, confirmed it was in premium on the deal. A HOME Office advert telling EU discussions over an all-stock merger of Philip Morris shares closed down citizens how to remain in the equals. 7.76 per cent last night. UK after Brexit has been banned Declining traditional cigarette sales The deal would solidify the US as the by the independent watchdog are putting pressure on the sector, but place to be for mega-mergers this year. for being “misleading”. the global e-cigarette market hit According to data from Mergermarket, The Advertising Standards $11bn last year and is expected to eight of the 10 biggest deals in 2019 Authority (ASA) has told the grow eight per cent per year over the have had US buyers. government it must not next half-decade. US companies have spent 1.9 per broadcast a radio ad regarding “With disruption facing the world of cent more on mergers and acquisitions the EU Settlement Scheme, tobacco, we can see some merit in a (M&A) this year compared to 2018, saying it was not “sufficiently re-merger,” Bernstein analyst Callum although the number of deals has clear” what was required. First Elliott said in a note. fallen, showing a drive towards bigger broadcast in April, the ad said An agreement between the two acquisitions. “all you need to apply is your companies could help them market Meanwhile, Europe has dropped off passport or ID card and to each other’s e-cigarettes, other the M&A radar, with 16 per cent fewer complete an online form”. analysts have said. deals and 19 per cent less spent. A Home Office spokesperson said: “We completely disagree with ASA’s decision.” FTSE 100▼ 7,089.58 -5.40 FTSE 250▲ 19,335.88 +99.75 DOW▼ 25,777.90 -120.93 NASDAQ▼ 7,826.95 -26.79 £/$▲ 1.228 +0.006 £/€▲ 1.107 +0.006 €/$▼ 1.109 -0.001 Indulging in the sweetest holiday ice cream The hidden bank Get the Equals currency card to avoid unnecessary bank charges making 18+. UK resident only. charges and get more from your Must have UK bank account. Terms and conditions apply. you feel sour money abroad. Search Equals. 02 NEWS WEDNESDAY 28 AUGUST 2019 CITYAM.COM HOUSTON, WE HAVE LIFT OFF Elon Musk’s Space X completes the final test of its next generation Starhopper rocket prototype THE CITY VIEW The summer is over, now it’s back to Brexit HE BOARD is set, the pieces are moving, to quote Gandalf from the Lord of the Rings. Next week, MPs return from Tthe summer recess and both the Brexiter and Remain sides are rallying their troops for the autumn battle. After a summer of insults and infighting, opponents of a no-deal Brexit (including Labour, the Liberal Democrats, the SNP, as well as some independents and Tory rebels), yesterday appeared to be solidifying around a plan. Rather than arguing about who would be a caretaker Prime Minister were Boris Johnson to be toppled in a vote of no confidence, the new strategy is to focus on blocking no-deal by passing legislation. This would require seizing control of the parliamentary agenda and passing a new law, perhaps to compel the Prime Minister to seek yet another Article 50 extension, as we saw in April. A confidence vote is SPACE X’s Starhopper successfully took to the skies for the second time in south Texas late last night, following a failed launch attempt on Monday evening. The small rocket reached a record height of 500 feet, approximately a small skyscraper, before being kept on the table as a back-up plan, should that fail. making a controlled descent back to Earth. The technology will pave the way for the next generation in sustainable rockets. The Brexiters in Downing Street, however, are prepared. Over the weekend, reports surfaced that the government was seeking legal advice on proroguing parliament almost as soon as it resumes, to prevent Remain MPs from enacting their plan. While Number 10 denied this, Johnson and members of his top Trump tweet of team have repeatedly refused to rule it out. The message they Rebel alliance to are preparing is that, if parliament is going to insist on blocking “the will of the people” (defined as leaving the EU on 31 October approval for without a deal), the government will simply ignore parliament. In the background, meanwhile, Downing Street is ramping up Conte’s return preparations for a snap election. And the Prime Minister’s office halt EU exit meet is working furiously to show that a deal remains a viable JAMES BOOTH prospect. The encouraging noises that came out of the G7 over CATHERINE NEILAN @Jamesdbooth1 the weekend may have helped to quell the fears of some critics Johnson has shown himself open to @CatNeilan using anti-democratic means to force US PRESIDENT Donald Trump in the Tory party that the Prime Minister is hurtling towards through no deal. The attendees yesterday welcomed the possibility no-deal. Whether this is a serious endeavour or a ploy to keep OPPOSITION parties have rowed back agreed on the urgency to act together that Italy’s former Prime Minister Tory rebels on-side for the time being remains to be seen. from plans for a vote of no confidence to find practical ways to prevent no Giuseppe Conte could return to in the Prime Minister, instead agree- deal, including the possibility of power following a political battle. The plausibility of either the government proroguing ing to seize control of the Brexit end passing legislation and a vote of no Conte’s 5-Star movement is in parliament or MPs taking control remains unknown. Britain has game through a legislative takeover. confidence,” it added. talks with the centre-left not been through quite this kind of constitutional conflict Labour leader Jeremy Corbyn held They plan to meet again to thrash Democratic Party (PD) to set up a before – with parliament and the government so at odds, both crunch talks in Westminster yester- out the details, although it is thought new coalition government after the day, to try to build a consensus one option being mulled would be to collapse last week of the Prime claiming democracy is on their side – and it is uncertain where around him leading a caretaker recycle the tactic used earlier this year Minster’s alliance with the far-right power lies. But with just 64 days to go until the deadline and all government, following a vote of no to force an extension to Article 50. League party. PD reported that still to play for, one wonders whether MPs on all sides might confidence. One Labour source played down the “fruitful” progress had been made However, the rebel alliance, which suggestion that a vote of no confi- in the talks. consider skipping the traditional three-week recess for party includes MPs from the Liberal Democ- dence had been dropped as an option, Trump tweeted: “Starting to look conference season in order to get some work done instead. rats, SNP, Plaid Cymru and The Inde- but other parties stressed legislation good for the highly respected pendent Group for Change, now plans as the best possible route forward. Prime Minister of the Italian to put forward legislation they hope “Excellent meeting between all the Republic, Giuseppe Conte.