M & A action signalling better times in the City ?

9/4/15

 M & A action signalling better times in the City ?

"Confidence and jobs flow back to the City" . The Financial Times , p.21

 An upbeat assessment of the Financial Services industry in the UK that will be welcomed across the board and particularly by a banking sector that may feel a little hard done by in comparison to its European equivalents (although with popular sentiment towards bankers being what it is they would be unlikely to admit it). M & A (Mergers and Acquisitions) activity has emerged from a fallow period to enjoy good growth this year, and this week's announcement of the massive takeover of BG Group (no relation!) by Shell for around £50 billion is being seen as confirmation of this recovery. We can expect such activity to continue (BP is already being talked of as a target), with benefits not only to the top rainmakers (jargon for dealmakers), but also to those further down the food chain. Apparently, not even the approaching general election and the possibility of UK voting to quit the EU (Brexit) in the next term can dampen spirits.