Morning, I’m Louise Moon from Bloomberg UK’s breaking news team, bringing you up to speed on today’s top business stories.

An M&A frenzy this year may have had dealrooms (and newsrooms) buzzing, but for London’s stock market it isn’t as much fun. It is shrinking at the fastest pace in more than a decade as a record number of companies go private, merge or simply choose to bid adieu.

About 45 companies have delisted from London so far this year as predominantly foreign, and private equity, buyers swoop on cheaper stocks, our colleagues report this morning. And there could be more to come: General Atlantic is trying to buy Learning Technologies and Aviva is circling Direct Line.

Add a dearth of London IPOs to the mixer (just 11 so far this year) and replacements are few and far between. 

Plus, some including gambling house Flutter Entertainment are choosing to base themselves elsewhere. Again, there are signs of more: activist investor Palliser Capital this morning stepped up its campaign for miner Rio Tinto to stick to Australia and quit its London listing.

What’s your take? Ping me on X, LinkedIn or drop me an email at lmoon13@bloomberg.net. Oh, and do subscribe to Bloomberg.com for unlimited access to trusted business journalism on the UK, and beyond.

What We’re Watching

Construction firm Costain has won a seven-year contract to supply challenge-laden railway HS2. It’s worth at least £400 million.

Renewable power generator Drax is hunting for a new finance chief as Andy Skelton plans to retire once a replacement is found. He’s been in the role since 2019, during which the company’s stock has risen by about 82%.

Qatar will invest £1 billion in a climate pact with the UK, channeling the money into startups in Britain and on home turf. The lifespan of four nuclear reactors in the UK are also being extended to help decarbonise the grid.

Plus, a prison building plan, to ease overcrowding by delivering 20,000 new spots, will be five years late and cost at least £4.2 billion more than originally estimated.

Global Catch Up

• S. Korea’s President faces impeachment calls after imposing martial law.
• Iran would consider sending troops to Syria if President Assad requests.
• Mitsubishi loses over $90 million in China in suspected copper fraud.

Markets Today: Cheap Stability

Here’s your daily snap analysis from Bloomberg UK’s Markets Today blog:

The FTSE 100 is underperforming a little this morning but has been on a much healthier run recently. It has notched up gains for five sessions in a row before today, and risen in eight of the nine sessions up to yesterday too.

Those gains haven’t been spectacular, but the past week or two, and particularly this week so far, has highlighted one of the attractions that strategists have been shouting about for the UK market: relative political stability.

Martial law being declared in South Korea and a no-confidence motion in the French government have helped to highlight that this week. An election in Germany could do similar next year. Market watchers are also less concerned about the threat of tariffs on the UK, certainly compared to Europe. That could help to protect the swathe of dollar-earning companies in the FTSE 100, should the assumption play out.

The index still hasn’t hit another record, having last done it back in May, bumping along for most of the year and like all major markets still in the dust of the huge gains in the US. But cheap stocks set against a relatively stable political backdrop may stay one of the FTSE 100’s main attractions into 2025.

— Sam Unsted

Check Bloomberg UK’s Markets Today blog for updates all day.

What’s Next

Mike Ashley’s Frasers Group needs to justify recent activism (remember the Boohoo drama?) when it gives first-half numbers tomorrow, Bloomberg Intelligence says. Pretax profit guidance seems secure despite volatility in the retail sector.

Fellow retailer (slightly more upmarket) Watches of Switzerland will also update on its first half. It has already indicated this year will be more second-half heavy due to high stock levels in the US. 

Pub Quiz

Artist Jasleen Kaur won the 2024 Turner Prize last night for her piece featuring a vintage Ford Escort, a giant doily and Irn-Bru. The annual prize is named after nineteenth-century artist J.M.W Turner who is buried in a famous London landmark. Which one is it?

[Yesterday’s answer: Steven Knight, the creator of Peaky Blinders, was also behind UK quiz show Who Wants To Be A Millionaire?.] 

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