A big deal for a FTSE 100 company

We’ll take a look at France, after the collapse of prime minister Francois Bayrou’s government, in a moment.

But first, news of a big deal for a FTSE 100 company.

Anglo American, the mining firm, had been at the centre of takeover interest for many years.

But it has moved to end that saga by announcing a merger with Teck Resources, a Canadian rival.

Under the terms, Anglo will own about 62.4% of the newly combined company.

It will be called Anglo Teck. Crucially for the UK, it will continue to have its primary stock market listing in London though it will be headquartered in Canada.

Anglo shares were up 7% in early trading as a result of the deal and leading tentative gains on the FTSE 100.

The index was 0.2% up at 9,242.

Across the Channel, markets are calm in France despite the political turmoil of the night before.

It was confirmed after markets in Europe had closed that Bayrou was to formally resign this morning after losing a confidence vote in the National Assembly that was tied to his plan for £40bn of budget cuts.

It leaves France in political limbo again, with President Emmanuel Macron under pressure to agree new parliamentary elections.

A succession of minority governments have toppled in recent years, with Macron supporters unable to get crucial legislation past a split Assembly.

The CAC 40 was 0.6% up this morning, recovering some losses of recent weeks, and French government borrowing costs were stable, as was the euro.

The calm could easily be replaced if no way forward is found and investors start to question the country’s ability to operate effectively.