BUSINESS LIVE: BoE interest rate decision looms; Deliveroo losses widen; National Express urges Stagecoach investors to back bid
The Bank of England is widely expected to raise its key interest rate today, following in step with the US Federal Reserve on Wednesday, with markets pricing a 25 basis point increase to 0.75 per cent.
However, as concerns over soaring inflation clash with fears of an economic slowdown, the BoE may opt to hold off until it has more data.
Deliveroo aims to reach breakeven in core earnings in around two years’ time and predicts a 15 to 25 per cent rise in the value of gross transactions on its platform this year – a slowdown from 70 per cent in 2021 when it was boosted by lockdowns.
The London-listed firm’s adjusted core loss widened to £131million last year compared to a loss of £11million in 2020, reflecting increased marketing spend and tech investment.
National Express has urged Stagecoach shareholders to back its merger offer over a rival takeover bid from DWS, which the board said ‘materially undervalues’ the firm.
Last week National Express’s £470million bid was gatecrashed by the German investment firm, which offered £595million.
Governor of the Bank of England Andrew Bailey