Friday, April 26, 2019
Home Business FTSE 100 raises profits, Barclays chairman announces Brexit move bill of up...

FTSE 100 raises profits, Barclays chairman announces Brexit move bill of up to £ 200m

  • The FTSE 100 Index rose 62 points

  • Wall Street opens in positive territory

  • Whitbread presents an additional £ 2bn for share buybacks

4:00 pm: Indicates the Brexit preparatory bill of up to £ 200m

Investment Bank PLC (UK) chairman Gerry Grimstone announced that the bank has spent between GBP 100 and 200 million to bring its operations and personnel out of the UK in preparation for Brexit, according to a Reuters report.

The bank has already relocated its European headquarters and assets of around EUR 200 billion to Dublin last year and has relocated about 50 jobs in investment banking to the German financial center Frankfurt.

The comments followed an acknowledgment by Anne Finucane's Deputy Chair that her own bank had spent $ 400 million preparing Brexit.

In the late afternoon, the Barclays share rose 0.3% to 158.5 pence, while the FTSE 100 rose 62 points to 7.195.

14:45: Wall Street begins in the midst of trading hopes at the top

The major US indices began to appreciate on Wednesday morning as optimism regarding the prospect of a trade break between the US and China continued.

Shortly after opening, the Dow Jones Industrial Average rose 161 points to 25,586, the S & P 500 jumped 14 points to 2,759, and the Nasdaq jumped 43 points to 7,458.

In London, the FTSE 100 rose 57 points to 7,190.

14:10: Whitbread announces further share repurchases in the amount of GBP 2 billion

The owner of the FTSE 100 Premier Inn () has announced a further £ 2 billion share buybacks in an announcement on its capital market day.

Whitbread's £ 3.9 billion last year from the sale of the Costa Coffee chain to Coca-Cola Co (), said it was about repaying £ 2.5 billion to shareholders.

The repurchase of £ 500m began in January and would last until April. The company said it would begin a program to buy back the other £ 2 billion in shares.

The announcement helped boost the stock by 2.5% to 4,883 pence in the afternoons, while the FTSE 100 itself rose 57 points to 7,190.

1:50: US inflation flattens in January as the sharp drop in fuel prices compensates for the increase in other goods

The US consumer price index remained unchanged in January, with sharply lower fuel prices offsetting growth in other areas.

While prices for clothing, rent, medical care and household equipment increased, these were offset by fuel shortfalls, new automobiles and airline tickets.

The cost of living also slowed growth in the last 12 months and dropped from 1.9% last month to 1.6%.

Naeem Aslam, chief market analyst of Think Markets UK, said the data had caused "no real drama" and the numbers would keep the Federal Reserve "out of the picture" for the foreseeable future, as the central bank was already driven by falling inflation rate hike to stop.

In London, the FTSE had increased its profits, rising 38 points to 7,172.

12:30: The US markets are expected to grow as the rally continues

Wall Street is expected to begin its forefoot on Wednesday morning as the wave of optimism over a possible break in US-China trade negotiations continues to flood traders.

Trump's comments around March 2 to raise tariffs on Chinese goods pushed up the major US indices this Tuesday, ahead of a scheduled meeting between a US delegation and Chinese President Xi Jinping on Friday.

It is also likely that there will be a continuation of the transaction, which was signed late Monday to avoid further closure of the US government.

There will also be an expectation of US consumer prices being released at 8:30 am Eastern time.

"The optimism continues to increase, so that there can be a way forward for the trade talks between the US and China, but critically there is still no commitment to be flexible on the deadline for the tariff increase on March 2nd There is a need for some. This is a clear signal if optimism is maintained in the coming weeks, "said James Hughes, chief market analyst at Axitrader.

The FTSE 100 rose 14 points to 7,147.

–Add's Analyst Comment–

11.45 am: FTSE 100 in positive territory at lunchtime, British house prices rise in December

As the morning came to an end, the FTSE 100 had increased its initial win, rising 42 points to 7,175.

House builders were some of the key leaders among the Blue Chips, with PLC (), PLC () and PLC () all traded late in the morning due to renewed hope of a Brexit delay.

Among the highest risers were the packaging companies PLC () and PLC (), as the latter's earnings and dividend increase provided a welcome boost to the stock.

ONS data showed that UK house prices rose 0.2% in December after falling in the last three months. The market continues to be under pressure from a decline in London prices and Brexit uncertainty.

Howard Archer, EY ITEM's chief economic adviser, said the group predicted a price increase of about 2% over 2019 if the UK withdrew from the EU at the end of March as the lower uncertainty could support the market " pick up".

However, he added that house prices could fall by as much as 5% over the course of a year if Brexit's "no deal" failed, "heightened uncertainty and weaker economic activity."

"The basics for homebuyers are still challenging at the moment. Consumers are being confronted with widespread pressure on purchasing power, which is only gradually waning. In addition, activity in the housing market continues to be affected by weak consumer confidence and limited willingness to engage in large transactions. "

10.50 am: Industrial production in the euro area falls for the second time in a row

Industrial production in the euro-zone fell by 0.9% between November and December, the second consecutive month after falling by 1.7% in the previous month.

The statistics agency Eurostat added that industrial production in the 28 EU Member States had fallen by 0.5% over the same period, compared with a decrease of 1.2% in the previous month.

For the whole of 2018, average industrial production increased by 1.1% in the euro-zone and by 1.3% in the EU as a whole.

The largest decreases were recorded in Ireland, Malta and the Netherlands, which fell by 13.4%, 5.2% and 3.2%, respectively, while the highest increases in Denmark, Luxembourg and Latvia were recorded with an increase of 11.6 %, 3.5% and 3.3%, respectively. ,

The region was hit last year by weak global demand and political uncertainty in the form of a Brexit and a budget calculation between the EU bureaucracy and the populist government of Italy.

The FTSE 100 climbed 28 points to 7,161.

10:15 am: UK inflation drops below BoE target of 2%

UK inflation fell to 1.8% in January from 2.1% in December, below the target of 2%.

The National Statistics Office (ONS) said that the biggest contributor to the consumer price index () downtrend comes from electricity, gas and other fuels, whose prices fell between December and January compared to a year ago.

The price decline also coincided with the introduction of an energy price cap by the regulator Ofgem.

However, the decline was partly offset by fares, which declined more slowly than a year ago.

Emma-Lou Montgomery, Deputy Director of Personal Investing at Fidelity International, said that while inflation hit the sweet spot, the data meant that expectations of a rate hike would "probably go to bed" during the year.

"To sum up, recent GDP figures, with productivity declining by 0.4% in December, and ongoing Brexit uncertainty will continue to put the MPC under pressure to keep current monetary policy unchanged."

Analysts at investment bank ING added that while inflation rates would affect interest rates, Brexit's output was crucial, as the uncertainty would at least "keep hiring and investment on hold and hinder growth. In the meantime, the will remains firmly on the edge. "

Shortly after the release of the data, the pound sterling fell 0.05% against the dollar from $ 1.288 and remained below the euro at $ 1.138.

The FTSE 100 rose 30 points to 7,163.

– Add Tweet

9:55 am: IEA says ex-OPEC crude oil production will rise more-than-expected

According to the International Energy Agency (IEA), production growth of non-OPEC oil producers in 2019 will increase more than expected.

The IEA said non-OPEC crude oil supply, led by US shale, will reach 1.8 million barrels per day (bpd) per day of 1.6 million bpd in 2019, while demand growth remains at 1, 4 million bpd remained.

The agency said that despite a decline in production of major producers such as Saudi Arabia, Iran and Venezuela, the markets still delivered a surplus from the second half of 2018, pushing oil prices up $ 63 a barrel.

The production level outside OPEC also meant that demand from the 2019 cartel would be around 30.7 million bpd, less than the 30.8 million bpd block produced in January.

Wednesday morning oil prices rose 1.3% to $ 63.2 a barrel.

The FTSE 100 rose 30 points to 7,163.

8.35 am: Footsie jumps back

After a slow late session on Tuesday, the FTSE 100 opened 33 points with 7,166.14 points. The optimism grew that the US and China could solve their trade stalemate.

"With the ongoing negotiations in Beijing paving the way for the leader on Thursday between Finance Minister Steve Mnuchin and Sales Representative Robert Lighthizer on the one hand and Deputy Prime Minister Liu He on the other, the pressure may have expired after some interesting comments by Donald Trump overnight a bit, "said Connor Campbell, an analyst.

"The Democrats and Republicans' deal to shut down and avoid has yet to be signed, whose announcement on Tuesday was the other major market boost – the president claimed that the US and China would be close to a" real deal. " The plans to raise tariffs on 1 March immediately could be "delayed".

For TUI (), which ended yesterday in the dog house, there was no rest after the impact on the scars of last year's barbecue summer and the weak pound had balanced. This was followed by a sale as the stock lost another 2.8% early on.

On the FTSE 250 it was another heavy day for the spread betting company Plus500 after the profit warning. The shares fell by a further 2.9%.

Rolls-Royce () was up 1.8% as the influential investment goods team upgraded the engine manufacturer's inventory to "outperformance".

Clinigen (LON: CLIN), one of AIM's largest companies, saw its share price surge 12% after agreeing to purchase $ 210 million for the purchase of US cancer rights.

Proactive headlines:

() told investors that it would begin production of the TLP-103C drilling in April with the Tilapia license in the Republic of Congo. The company said in a statement that it would seek production from the upper reservoirs of the TLP-103C by achieving the R2 and Mengo intervals through a double downhole completion.

(LON: CLIN) has entered into a deal that will cost up to $ 210 million to acquire the US rights to a cancer drug from a Swiss giant. The growing Spezialpharma group already sells Proleukin outside America.

Recruiter () posted its highest sales in a decade, when net earnings reached a record. Turnover increased 40% to £ 9.2m in 2018, while losses more than halved to £ 900k.

Edge Ltd () announced that Ginat Wave India Private, an offset maker in India, has received its first major orders with two orders worth a total of $ 900,000 from two different customers. The AIM-listed technology group said the contracts would relate to the delivery of antennas and wiring harnesses.

() has begun drilling at the Black Cat target in the Bailieston gold project area in the Australian state of Victoria.

() has made a name for itself with its innovative new products to combat obesity, heart disease and diabetes in the commercial sector. The latest trading statement revealed that the company signed 18 deals last November over the last 12 months, eight more than in the previous year. And 2019 has begun with a series of new connections around the globe.

Peter Secker, Chief Executive of Bacanora Lithium PLC (), highlighted the rapid progress that continues to drive the Sonora mine project in Mexico. In its interim statement today, the company highlighted that it expects to complete its Sonora project funding package in the second half of the year while driving forward its second lithium project, Zinnwald, which is expected to undergo a feasibility study.

() said earnings per share (EPS) for the second half of 2018 will be higher than in the previous year.

PLC () announced that it generated gross proceeds of £ 131m from the February 1, 2019, placment combined with plans to acquire shares in the Stronelairg and Dunmaglass wind farms from the FTSE 100 listed supply group ().

6.45 am: FTSE 100 ready for a positive start

The FTSE 100 faces an optimistic wave this morning about better prospects for a trade agreement with China and an agreement that prevents a second US government shutdown from yesterday's session on Wall Street.

The spread betting firm IG expects the FTSE 100 to open 31 points higher after only 4 points yesterday at 7,133.

Jasper Lawler, Head of Research at the London Capital Group, said Tuesday that US President Trump said that the deadline for reducing tariffs on Chinese goods on 2 March could be postponed if both sides were close by Ears "are market".

"While there were positive reports on the trade talks, investors became nervous about the deadline, and there was no solid evidence of progress. The negative sentiment wears off and investors are showing that they are ready to put risks on the table. For the sentiment to remain positive, we must see a deal in March. At the moment, however, the markets are ready to let this happen. "

For the shutdown agreement, Lawler added that although Trump did not want so much and missed money for the infamous wall, Lawler added that "the likelihood of a second shutdown was downplayed" and that investors "risked their money Shifting ports and into riskier assets ".

In the US market yesterday, the main indices closed at their highest level this year due to the decommissioning business and renewed trade optimism.

The Dow Jones Industrial Average closed at 25,426 by 373 points, the S & P 500 closed at 2,745 with 35 points and the Nasdaq at 7,415 by 107 points.

The positive attitude towards the potential of a trade between the US and China also affected the Asian markets today. The Japanese Nikkei 225 climbed 283 points to 21,147, while Hang Seng in Hong Kong rose by 316 points to 28,487 points.

In the currency markets, the pound sterling rose 1.2% against the dollar to 1.291 USD and against the euro by 1.1% to 1.149 EUR as traders awaited the latest inflation figures in the UK economy.

"While inflation remains at or around 2%, this is good news for the pound, but the reality is that Brexit is now driving the pound sterling. Inflation data should follow the Brexit headlines, "said Lawler.

Inflation numbers will be the focus of attention on Wednesday as corporate results tick in the background

The UK's main inflation indices will be the biggest gain on Wednesday, especially after British GDP fell to its weakest level since 2012 in the final quarter of 2018 on Monday. The growth of the Brexit effect increased by 0.2% in December, while GDP actually declined by 0.4% in December.

It is expected that the first consumer price index for 2019 will continue the downward trend from December 2018 and possibly reach the 2% target of the Monetary Policy Committee compared to the previous year, which was last reached in early 2017.

There will be Divi Talk in the company diary, while Tullow Oil will publish its full-year results, while Dunelm is expected to get some Christmas overhang as his release comes after a big Christmas.

Important announcements on Wednesday 13th February:

Final: Tullow oil (), SPS ()

Between times: PLC (), (), Holdings PLC ()

Economic data: UK, RPI, PPI, HPI inflation; Inflation in the US

To the markets:

  • Sterling: 1,291 USD, up by 0.2%
  • Brent crude: $ 63 per barrel, up 1%
  • Gold: $ 1,314 an ounce, up 0.6%
  • Bitcoin: $ 3,615, up 1%

City headlines:

  • Daily Mail: Regulators are investigating exploding new claims that Lloyds destroyed small businesses at a profit during the financial crisis.
  • The Daily Telegraph: The second major shareholder, the Dutch hedge fund Farringdon Capital Management, in which 6.2% are involved, has spoken out against the planned rescue agreement in the amount of GBP 480 million.
  • The times: The government rejected Cuadrilla's plans to seek shale gas at a second site in Lancashire for safety concerns, which hit the fracking industry.


Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Must Read