Good morning. Today we're talking about the Vodafone and Three merger, the election boost for US stock markets and Burberry takeover talk.

Big Stories

Mobile merger on the verge

Vodafone UK's proposed £15bn merger with Three UK has received provisional approval from the Competition and Markets Authority (CMA). Announced last year, the proposed deal would bring 27m customers together under a single provider. The competition watchdog previously warned that tens of millions of mobile phone users could end up paying more if the merger went ahead. The decision is contingent on the two companies committing to significant investments in the UK's mobile network infrastructure. The CMA has imposed conditions on the merger, including a three-year freeze on certain tariffs and data plans to protect consumers from potential price hikes. This move aims to ensure that the merger benefits consumers by improving network coverage and service quality. Both Vodafone and Three have expressed their commitment to investing in the UK's mobile network and delivering better connectivity for consumers. The final decision on the merger is expected by December 7th.

Election boost

US stock markets surged to record highs after Donald Trump’s election victory as investors anticipated how the new administration will reshape the economic and political landscape. The markets typically jump immediately after elections, but the response was extra strong thanks to quick results for a contest that was expected to be closer and have ballot counting drag on longer. The markets appreciated the fact there was no prolonged uncertainty. The S&P 500 topped 6,000 points for the first time and closed at a record high while the Dow Jones crossed 44,000 for the first time. The biggest winner, however, was bitcoin which topped $80,000 for a new record. Investors were betting that the Republican victor will supercharge US economic growth, support American industry and loosen the regulation of digital assets.

Burberry takeover talk

Burberry shares popped nearly 8% after rumours emerged that Italian outerwear brand Moncler could be considering a bid for the company. Analysts warned that Burberry could be a takeover target, after its share price plummeted 40% in the last 12 months. The British luxury fashion house was the worst performer on the FTSE 100 this year and dropped out of the index in September due to its low valuation. A combination of uncertain strategic direction, weak demand for luxury goods and an unexpected CEO change have concerned investors. French luxury goods conglomerate LVMH owns 10% of Moncler and is rumoured to be keen to get a deal done with the British retailer.

Elsewhere...

In the red: Asos has slumped to a £379m loss as it said customers are still grappling with cost of living pressures but insisted it was seeing “green shoots” of recovery after a two-year turnaround.

Tax raid: Netflix has said it is cooperating with authorities in France following reports that its offices there and in the Netherlands had been raided as part of an investigation into alleged tax fraud.

Back to work: Boeing workers in the US have voted to accept the aviation giant's latest pay offer, ending a damaging seven-week-long walkout.

Rate falls: The Bank of England cut interest rates for the second time this year by 25 basis points to 4.75% while raising its inflation forecast following the government’s budget.

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Number of the Day

$1 trillion

The stock market value of Tesla which jumped nearly 30% following the US election result with investors optimistic that Donald Trump’s victory could benefit the electric car company as its CEO, Elon Musk, donated at least $130m into a pro-Trump campaign effort.

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