Tesco considers selling stores in Asia

British retailer Tesco is considering selling its 2,000 stores in Thailand and Malaysia.

Tesco's sale of its Asian businesses would symbolize  retreat from its one-time global ambitions. Its other overseas operations, apart from Ireland, are its loss-making central European division in the Czech Republic, Hungary, Poland and Slovakia.

The firm said in a statement: "Tesco confirms that, following inbound interest, it has commenced a review of the strategic options for its businesses in Thailand and Malaysia, including an evaluation of a possible sale of these businesses."

"The evaluation of strategic options is at an early stage, no decisions concerning the future of Tesco Thailand or Malaysia have been taken, and there can be no assurance that any transaction will be concluded," it added. 

Businesses will be hit by governments' actions to tackle climate change

Carbon-intensive companies are predicted to lose 43% of their value due to policies designed to combat climate change.

More progressive companies will see their value rise by 33%.

This is according to a report commissioned by the UN-backed Principles for Responsible Investment (PRI),  forecasting the impact on the real economy and financial markets of an "abrupt, forceful and disruptive government response to climate change."

The forecast predicts that car-makers with the fastest transition to electric cars, for example, will see an increase in value by 108%, while manufacturers that still produce petrol and diesel models will see a fall in their value.

Lufthansa to sell the rest of catering group LSG

Lufthansa will begin the sale of the parts of its catering group LSG that it's not already selling to Switzerland's Catergroup.

On Monday it concluded the purchase agreement and set up a joint company for the Frankfurt and Munich operations which provides catering for its flights. Lufthansa has retained a minority shareholding in that.

The German Airline said this is part of its new strategy to focus on its airline business.

Prosus raises bid for Just Eat 

The Dutch-based technology giant Prosus has raised its offer for Just Eat to $6.5 billion, increasing pressure on rival suitor Takeaway.

The offer was raised to 740 pence per share, compared to the original 710, 5 per cent more than Takeaway's offer.

"Prosus believes the increased offer underscores its commitment to the transaction and constitutes attractive and certain value for Just Eat shareholders," CEO Bob van Dijk said in a statement.

Takeaway CEO Jitse Groen issued a statement on Monday urging Just Eat shareholders to accept his company's offer.

"Through this merger, we will combine our two great companies to create the largest global platform in online food delivery outside China."

Tullow oil sells dividends and CEO steps down

Tullow Oil Plc announced on Monday its Chief Executive Officer Paul McDade has resigned and the company has also scrapped its dividend as it continues to face issues at its main producing assets in Ghana.

Tullow was expected to produce an average of 87,000 barrels per day but now has lowered production to between 70,000 and 80,000 in 2020.

The African-based company says it is suspending its dividends in order to generate more cash to support future investment plans and current explorations.

"The Board has, however, been disappointed by the performance of Tullow's business and now needs time to complete its thorough review of operations," Executive Chairman Dorothy Thompson said.

Election fever…

Just days to go now before UK voters go to the polls and financial markets seem to have priced in a Conservative majority. However, there is still all to play for: The pollsters have missed the mark in the recent elections and in the 2016 referendum on having the EU, financial markets got it completely wrong. There is still all to play for.

Central Bank watch…

On Wednesday the U.S Federal Reserve meets, but the mood has changed and markets no longer anticipate another rate cut this time around.
In Europe, Thursday will be Christine Lagarde's s first European Central Bank meeting as President and the markets will be looking to see her make her mark.

"While expectations are low that the governing council will adopt anything new with respect to current policy, markets will be looking for clues as to style of press conference" said Michael Hewson at CMC Markets.

Company news in the spotlight include Saudi Aramco which starts trading on Saudi stock exchange on Wednesday, Ocado where growth plans have been ramped up, Superdry - a brand that has had its ups and downs, and Ted Baker, which warned on profits last quarter. Despite signing some good deals in the last 12 months, it would be another set of dismal figures for the fashion brand, with struggling retail sales and takeover talk paying into the big picture.

Meanwhile the markets are still looking out for trade talk developments.

"Contrasting U.S and Chinese data could swing the pendulum back to neutral… one gets the sense that this Sunday's next round of tariffs on China is no longer the line in the sand it was once perceived to me" said Jeffrey Halley at OANDA.