UK stocks fight back, Royal Mail bid approach, Tesla returns to $56 billion pay deal for Elon Musk days after big workforce cull and travel sector flies on United Airlines’ results

“After a slow start, the UK stock market eventually burst into life and the FTSE 100 headed back on the right path towards the all-important 8,000 level. However, it lost momentum in the final part of the session,” says AJ Bell Investment Analyst Dan Coatsworth.

“The mid cap FTSE 250 index also revved up and then spluttered as investors digested a takeover approach for Royal Mail owner International Distributions Services.

“A perennial disappointment, IDS has only been of interest to value investors who took the view that it was worth more broken up than as a whole. Now we’ve got Czech billionaire Daniel Křetínský’s EP Group table an all-cash proposal to buy the 72.48% of the business it doesn’t already own.

“The proposal has been rejected but it once again shines the spotlight on the UK market as a veritable feast of bargains on offer.”

Tesla

“Tesla’s board seems determined to line the pockets of chief executive Elon Musk with more money than you can dream of, despite a Delaware court having already turned down the proposed $56 billion package.

“The car company has written to shareholders asking them once again to back the pay deal – an action that wreaks of hypocrisy and sheer ridiculousness, coming just days after Tesla said it would lay off 10% of its workforce.

“Why one person should bathe in gold and so many others get peanuts is utter madness. Tesla workers must think they are being treated like fools.”

United Airlines

“United Airlines led travel stocks higher after its results beat low expectations, with Delta Air Lines and American Airlines hitching a ride as investors reappraised the sector.

“An improvement in corporate spending is music to the ears of airlines. Leisure demand has been strong since the pandemic but businesses have been more reluctant to spend.

“A lot of companies have discovered the benefits of Zoom and Teams and realise they can hold meetings with anyone in the world via their laptop rather than sitting on a plane for hours at a time to visit in-person.

“However, just as more people realise the benefits of returning to work in the office and interacting with colleagues face-to-face, companies are rekindling their love of networking and pressing the flesh when trying to do deals.”

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