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Important information: The value of investments can go down as well as up so you may get back less than you invest. Investors should note that the views expressed may no longer be current and may have already been acted upon. This is a third-party news feed and may not reflect Fidelity’s views.

Sunday newspaper round-up: Arm, China, M&G

(Sharecast News) - News that Arm has chosen to float on the other side of the Atlantic is stunningly bad news for Britain. The rationale is straightforward, the business can fetch a higher valuation there. So too is the reason for that, even if some might argue otherwise. UK pension funds and insurance companies do not invest in British companies with their holdings currently standing at 1.8% and 2.5%, respectively. In fact, at 56.3%, its foreigners who own the lion's share. Back in 1997, insurance companies owned 23.6% and pension funds probably held a similar proportion back then. And where has the money gone instead, because of regulation and tax changes it had been funneled into gilts and other fixed-interest securities. But according to Credit Suisse, those flows appear set to turn around and head back into equities. - Financial Mail on Sunday

China's outgoing premier has set a target for gross domestic product growth in 2023 of 5% which is towards the lower end of what analysts were anticipating. In the same speech, he also addressed foreign policy, highlighting again the Chinese Communist Party's goal of annexing Taiwan, but Beijing appeared intent on incremental progress and not quick results. Li Kequiang also unveiled a slightly higher increase for defence spending to 7.2%, which compares to 2022's 7.1% rise. According to Professor Victor Shih at the University of California the "not overly ambitious targets" set the stage for a potential "easy victory" for the government and the new premier. Higher welfare spending and stimulating consumption was another focus of Li's speech and would require sizeable government financing, Shih added, but it was unclear where those funds might come from. - Guardian

M&G boss Andrea Rossi will be grilled about the M&A speculation swirling around the firm when he presents his first set of results. The week before, Macquarie was linked to a possible £5bn takeover approach. The Australian investor's interest had not yet been confirmed. It did however come close on the heels of Schroder's admission that it had studied a possible bid before walking away, arguing that a tie-up might damage the firm's culture. But that had not stopped the City rumour mill and the shares had gained 16% year-to-date. Another key question that he will be asked is whether he believes that the annuity book should be reopened, following the recent trend of pension funds transferring assets to insurers to be managed. He will also be queried regarding a potential break-up of the business and whether he is still opposed to the idea. - The Sunday Times

US investment manager Triplepoint Venture Growth cut its internal valuation of Revolut, Britain's most valuable start-up, by 15% from $33bn (£28bn) to $28bn. It follows the qualified opinion issued by its auditor on the company's long-delayed 2021 accounts during the previous week. The decision also comes even as Revolut is seeking to secure a banking license in Britain. Other well-known fintech start-ups such as Ckeckout.com and Klarna had slashed their valuations over recent months due to the downturn in shares of public technology companies and higher interest rates. Revolut on the other hand had given no such indication that it had done the same. Rather the opposite, a spokesman for Revolut said the business had continued to perform strongly since its last funding round, when it was valued at $33bn, and that it had reported its first full-year of profits. - Sunday Telegraph

One out of every six first time buyers will still be paying off his mortgage in retirement with UK finance figures revealing that 17% of all new mortgages taken out in December were for 35 years or longer. That was up from 9% of home loans last February. Roughly 55% of mortgages are now for terms of 30 years or more, versus 9% in 2005. The average age of a first time buyer has also increased, reaching 32 and even older in London, Halifax data show. That means that many borrowers will still be paying home loans when they are in their 60s or even in their 70s. - Sunday Telegraph

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Monday newspaper round-up: Renewable energy, BlackRock, Frasers Group
(Sharecast News) - A development company that sells off land no longer needed by Thames Water has paid out a £14m dividend despite warnings that it could become engulfed by the water group's financial woes. Accounts filed at Companies House show Kennet Properties paid out a £14.5m dividend in the year to 31 March 2023 despite the difficulties faced by the wider group, which is facing going into administration. - Guardian
Sunday share tips: Mitie, Costain
(Sharecast News) - The Financial Mail on Sunday's Midas column tipped shares of Mitie to its readers, highlighting it shift from facilities management to facilities transformation.
Sunday newspaper round-up: IDS, Ocado, Foxtons
(Sharecast News) - Asset manager Redwheel told regulators they should reduce the UK postal service's legal obligations. The move followed a failed buyout attempt by Daniel Kretinsky for International Distributions Services, its parent company. The billionaire investor was said to be evaluating a possible improved bid. The company meanwhile has petitioned Ofcom to let it cut the number of days per week during which it must deliver second-class mail from six to two or three. That would save the company £300m and see it shrink its workforce by 1,000. According to Redwheel, as first reported by the Sunday Times, the enforced costs of its legal obligations left the company "vulnerable to corporate predators". - Guardian
Friday newspaper round-up: Thames Water, Netflix, consumer confidence
(Sharecast News) - "Misleading" and "inconsistent" labels make it hard for shoppers to know where their food comes from, the consumer champion Which? has said, as it found supermarket chains were selling products with "meaningless" statements on their packaging. Retailers must supply the "country of origin" for specific foods including fresh fruit and vegetables, unprocessed meats, fish, wine and olive oil but the rules do not generally apply to processed meat or frozen or processed fruit and vegetables. - Guardian

Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.

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