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Abrdn, the FTSE-100 asset manager, is in advanced talks to buy Interactive Investor (II) for more than £1.5bn – a deal that will hand it control of one of Britain’s three big DIY stock-picking platforms.

Sky News can reveal that abrdn, headed by Stephen Bird, is in exclusive negotiations to acquire II and hopes to strike a formal takeover deal within the next fortnight.

Abrdn is likely to be forced to confirm the discussions in a stock exchange announcement on Monday morning.

If successfully concluded, the talks will end II’s preparations to join rivals Hargreaves Lansdown and AJ Bell on the London stock market following months of talks about a 2022 flotation.

II has more than 400,000 personal investing clients, positioning it behind only Hargreaves Lansdown by customer numbers in the UK market.

It has made a string of acquisitions of its own, such as the stock-dealing platform The Share Centre, and has about £57bn in assets under administration.

The bold swoop by abrdn which takes it further into direct-to-consumer investing will represent a calculated gamble for Mr Bird, a former Citi executive who joined the asset management group in July 2020.

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He has hinted at a desire to pursue targeted acquisitions which help it to diversify its revenue base across three areas: investment, adviser and personal.

Acquiring II would deliver on that ambition in personal investing, and transform abrdn’s digital capability and consumer appeal, one analyst said on Saturday.

Last month, abrdn bought Finimize, a subscription-based investment tips service – a much smaller deal, but one which nevertheless underlined the group’s pivot towards personal investing-oriented activities.

One area of uncertainty for Mr Bird will relate to abrdn shareholders’ reaction to the II news given his predecessors’ decidedly mixed track record in corporate deal-making.

Investors were left underwhelmed by the £11bn merger of Standard Life and Aberdeen Asset Management in 2017, with the combined group having lost close to half its value since the tie-up was announced that year.

Since then, the co-chief executives of Standard Life Aberdeen – now renamed abrdn – have both stepped down.

Martin Gilbert, the Aberdeen Asset Management founder, has emerged in a large number of City posts, including at the helm of AssetCo, which he has begun using as a consolidation vehicle in the asset management sector, while Keith Skeoch remains chairman of the Financial Reporting Council and Investment Association.

For Mr Bird, however, the transaction may come at an opportune time.

Abrdn has total surplus regulatory capital of about £2bn, having sold another chunk of its stake in India’s HDFC in late September, meaning financing the takeover of II is unlikely to be problematic.

The deal also comes sufficiently early in his tenure as CEO to make a potentially significant difference to the long-term performance of abrdn, which has been hit by large fund outflows during most of the period since the 2017 merger.

Under Mr Bird, the tide has begun to turn, with fee-based revenues and adjusted operating profits recently showing their fastest growth since the company was created in its current form.

He has said he wants to turn abrdn into a simplified and more focused investment management group with far stronger digital capabilities for personal and institutional clients.

Since taking the helm of the company, which now manages more than £530bn for clients, he has jettisoned businesses including Parmenion, a platform servicing independent financial advisers, and a real estate division in the Nordics.

Its rebranding in August – which provoked some derision in the City – would, Mr Bird, said, provide “clarity” and leave it “better-positioned to have impact at scale as a global business”.

Nevertheless, abrdn may have to contend with some discontent from rival fund managers whose products are listed on the II platform.

If the deal goes ahead, it will deliver the certainty of a handsome payday for JC Flowers, II’s biggest shareholder and other investors which include a group of venture capital funds.

JC Flowers engineered the combination of II and TD Direct in 2017, since when the business has grown into an industry powerhouse.

The size of the stake in II owned by Richard Wilson, its chief executive, is unclear, but he is expected to remain in place after the takeover, according to insiders.

Mr Wilson has been a vocal advocate for greater involvement for retail investors in companies’ public share sales, and has spoken repeatedly about the stock market being a natural home for the company.

Earlier this year, II appointed Gordon Wilson, a former Travelport executive, as its non-executive chairman as part of its planning for an IPO.

The latest steps being taken by II towards a public debut come months after a review led by Lord Hill, a Treasury board member, recommended measures to make it simpler for retail investors to participate in IPOs.

Ordinary customers are often frozen out of prominent floats, although the advent and rapid growth of services such as that offered by PrimaryBid have begun to make them more accessible.

JP Morgan is advising abrdn on the talks, while II and its shareholders are being advised by Fenchurch Advisory Partners and UBS.

On Friday, shares in abrdn closed at 255.7p, giving the company a market capitalisation of just under £5.6bn.

Abrdn declined to comment this weekend, while II has been contacted for comment.

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Food inflation highest in almost a year – more to come, industry warns

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Food inflation highest in almost a year - more to come, industry warns

Food inflation has hit its highest level in almost a year and could continue to go up, according to an industry body.

The British Retail Consortium (BRC) reported a 2.6% annual lift in food costs during April – the highest level since May last year and up from a 2.4% rate the previous month.

The body said there was a clear risk of further increases ahead due to rising costs, with the sector facing £7bn of tax increases this year due to the budget last October.

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It warned that shoppers risked paying a higher price – but separate industry figures suggested any immediate blows were being cushioned by the effects of a continuing supermarket price war.

Kantar Worldpanel, which tracks trends and prices, said spending on promotions reached its highest level this year at almost 30% of total sales over the four weeks to 20 April.

It said that price cuts, mainly through loyalty cards, helped people to make the most of the Easter holiday with almost 20% of items sold at respective market leaders Tesco and Sainsbury’s on a price match.

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Its measure of wider grocery inflation rose to 3.8%, however.

Wider BRC data showed overall shop price inflation at -0.1% over the 12 months to April, with discounting largely responsible for weaker non-food goods.

But its chief executive, Helen Dickinson, said retailers were “unable to absorb” the surge in costs they were facing.

“The days of shop price deflation look numbered,” she said, as food inflation rose to its highest in 11 months, and non-food deflation eased significantly.

“Everyday essentials including bread, meat, and fish, all increased prices on the month. This comes in the same month retailers face a mountain of new employment costs in the form of higher employer National Insurance Contributions and increased NLW [national living wage],” she added.

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Five hacks to beat rising bills

While retail sales growth has proved somewhat resilient this year, it is believed big rises to household bills in April – from things like inflation-busting water, energy and council tax bills – will bite and continue to keep a lid on major purchases.

Also pressing on both consumer and business sentiment is Donald Trump’s trade war – threatening further costs and hits to economic growth ahead.

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A further BRC survey, also published on Tuesday, showed more than half of human resources directors expect to reduce hiring due to the government’s planned Employment Rights Bill.

The bill, which proposes protections for millions of workers including guaranteed minimum hours, greater hurdles for sacking new staff and increased sick pay, is currently being debated in parliament.

The BRC said one of the biggest concerns was that guaranteed minimum hours rules would hit part-time roles.

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Inside the Vietnamese factory preparing for the worst since Trump’s tariff threat

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Inside the Vietnamese factory preparing for the worst since Trump's tariff threat

On the outskirts of Ho Chi Minh City, factory workers at Dony Garment have been working overtime for weeks.

Ever since Donald Trump announced a whopping 46% trade tariff on Vietnam, they’ve been preparing for the worst.

They’re rushing through orders to clients in three separate states in America.

Sewing machines buzz with the sound of frantic efforts to do whatever they can before Mr Trump’s big decision day. He may have put his “Liberation Day” tariffs on pause for 90 days, but no one in this factory is taking anything for granted.

Staff have been working overtime
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Staff have been working overtime

Workers like Do Thi Anh are feeling the pressure.

“I have two children to raise. If the tariffs are too high, the US will buy fewer things. I’ll earn less money and I won’t be able to support my children either. Luckily here our boss has a good vision,” she tells me.

Do Thi Anh
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Do Thi Anh

That vision was crafted back in 2021. When COVID struck, they started to look at diversifying their market.

Previously they used to export 40% of their garments to America. Now it’s closer to 20%.

The cheery-looking owner of the firm, Pham Quang Anh, tells me with a resilient smile: “We see it as dangerous to depend on one or two markets. So, we had to lose profit and spend on marketing for other markets.”

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You asked, we listened, the Trump 100 podcast is continuing every weekday at 6am

That foresight could pay off in the months to come. But others are in a far more vulnerable state.

Some of Mr Pham’s colleagues in the industry export all their garments to America. If the 46% tariff is enforced, it could destroy their businesses.

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Doubts US will start making what Vietnam delivers

Down by the Saigon River, young couples watch on as sunset falls between the glimmering skyscrapers that stand as a testament to Vietnam’s miracle growth.

Cuong works in finance
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Cuong works in finance

Cuong, an affluent-looking man who works in finance, questions the logic and likelihood that America will start making what Vietnam has spent years developing the labour, skills and supply chains to reliably deliver.

“The United States’ GDP is so high. It’s the largest in the world right now. What’s the point in trying to get jobs from developing countries like Vietnam and other Asian nations? It’s unnecessary,” he tells me.

But the Trump administration claims China is using Vietnam to illegally circumvent tariffs, putting “Made in Vietnam” labels on Chinese products.

There’s no easy way to assess that claim. But market watchers believe Vietnam does need to signal its willingness to crack down on so-called “trans-shipments” if it wants to cut a deal with Washington.

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Vietnam can’t afford to alienate China

The US may also demand a major cutback in Chinese manufacturing in Vietnam.

That will be a much harder deal to strike. Vietnam can’t afford to alienate its big brother.

Luke Treloar, head of strategy at KPMG in Vietnam
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Luke Treloar, head of strategy at KPMG in Vietnam

Luke Treloar, head of strategy at KPMG in Vietnam, is however cautiously optimistic.

“If Vietnam goes into these trade talks saying we will be a reliable manufacturer of the core products you need and the core products America wants to sell, the outcome could be good,” he says.

But the key question is just how much influence China will have on Vietnamese negotiators.

Anything above 10-20% tariffs would be intensively challenging

This moment is a huge test of Vietnam’s resilience.

Anything like 46% tariffs would be ruinous. Analysts say 10-20% would be survivable. Anything above, intensely challenging.

But this looming threat is also an opportunity for Vietnam to negotiate and grow. Not, though, without some very testing concessions.

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UK-US trade talks ‘moving in a very positive way’, says White House spokesperson Karoline Leavitt

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UK-US trade talks 'moving in a very positive way', says White House spokesperson Karoline Leavitt

Trade talks between the UK and the United States are “moving in a very positive way”, according to the White House.

President Donald Trump’s press secretary Karoline Leavitt spoke about the likelihood of the long-discussed agreement during a press briefing.

In Westminster, there are hopes such a deal could soften the impact of the Trump tariffs announced last month.

Leavitt told reporters: “As for the trade talks, I understand they are moving in a very positive way with the UK.

“I don’t want to get ahead of the president or our trade team in how those negotiations are going, but I have heard they have been very positive and productive with the UK.”

She said Mr Trump always “speaks incredibly highly” of the UK.

“He has a good relationship with your prime minister, though they disagree on domestic policy issues,” she added.

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“I have witnessed the camaraderie between them first hand in the Oval Office, and there is a deep mutual respect between our two countries that certainly the president upholds.”

White House Press Secretary Karoline Leavitt speaks during a press briefing at the White House April 28, 2025. (Francis Chung/POLITICO via AP Images)
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White House Press Secretary Karoline Leavitt said she was positive about a deal. Pic: AP

Chancellor of the Duchy of Lancaster Pat McFadden gave the UK’s position on the talks when speaking to Sunday Morning With Trevor Phillips.

He said there was “a serious level of engagement going on at high levels” to secure a UK-US trade deal.

Mr McFadden is one of the most powerful members of Sir Keir Starmer’s government and a key ally of the prime minister.

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He was careful to not get ahead of developments, however, saying: “I think an agreement is possible – I don’t think it’s certain, and I don’t want to say it’s certain, but I think it’s possible.”

He went on to say the government wanted an “agreement in the UK’s interests” and not a “hasty deal”, amid fears from critics that Number 10 could acquiesce a deal that lowers food standards, for example, or changes certain taxes in a bid to persuade Donald Trump to lower some of the tariffs that have been placed on British goods.

Mr McFadden’s tone was more cautious than Chancellor Rachel Reeves’ last week.

She had been in the US and, speaking to Sky News business and economics correspondent Gurpreet Narwan, the chancellor said she was “confident” a deal could be done.

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‘We’re confident’, says Reeves

But she sought to play down fears that UK standards could be watered down, both on food and online safety.

“On food standards, we’ve always been really clear that we’re not going to be watering down standards in the UK and similarly, we’ve just passed the Online Safety Act and the safety, particularly of our children, is non-negotiable for the British government,” Ms Reeves said.

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