Centrica replacing variable tarriff with fixed-term options, Wizz Air announces massive Luton expansion

London open

The FTSE 100 is expected to open 18 points lower on Monday, having closed down 0.08% at 7,380.68 on Friday.

Stocks to watch

British Gas owner Centrica will replace its standard variable tariff with new fixed-term tariffs as it called on the government, energy regulator and industry to make several to "create a market that works for everyone". Costs of the government's social and environmental policy should be borne by all suppliers, energy policy costs should be paid via general taxation and the roll-out of smart meters needs to quickly be made more efficient, Centrica said, among seven measures it asked Ofgem and the government to make.

Tritax Big Box announced on Monday that it has exchanged contracts to acquire a logistics facility at Harlow Logistics Hub, Edinburgh Way, Harlow, let to Wincanton Holdings and Industrial Tool Services, for total consideration is £44.4m to be funded from equity. The FTSE 250 firm also announced that it has exchanged contracts to acquire two separate, modern logistics facilities from a single vendor for a combined purchase price of £43.86m, also funded from equity, in Nottinghamshire and Cumbria.

Eastern Europe-focussed low cost airline Wizz Air announced a massive expansion at its Luton base on Monday, with the addition of four Airbus A320 aircraft to its fleet there by June 2018. The FTSE 250 company said the allocation of four more Airbus A320 aircraft, each equipped with 186 seats, would bring the total number of aircraft in its Luton fleet to five, with a combined value of $500m.

Newspaper round-up

Ministers are expected to sign off an improved financial offer to the European Union today that Downing Street hopes will unblock the Brexit negotiations. Theresa May will lay out her plans at a meeting of cabinet ministers, including the Leave supporters Boris Johnson, Michael Gove and David Davis. If the proposals are approved, she will present them on Friday to Donald Tusk, the European Council president. - The Times

British shoppers could spend less on Christmas for the first time since 2012, as a fall in real wages and continuing economic uncertainty put a brake on celebrations. A slump in spending on Christmas getaways, as well as cutbacks on clothing and household goods, are expected to result in a 0.1% dip in UK spending during the key shopping period of November and December, according to research compiled by IHS Markit for Visa, the card provider. - Guardian

Britain’s aerospace exporters will warn parliament on Monday of a crippling £1.5bn-a-year headwind if ministers fail to agree urgent new customs and regulatory deals with the EU. Adding to pressure for the government to come clean about its long-term Brexit strategy, the industry will also provide written evidence to the Commons business select committee that the uncertainty is already forcing it to look at moving jobs abroad. - Guardian

Germany was plunged into political crisis last night by the collapse of coalition talks that could trigger fresh elections and put Angela Merkel’s future on the line. Mrs Merkel’s attempts to create a four-party government failed when the pro-business Free Democrats walked out shortly before midnight after repeatedly clashing with the left-wing Greens. - The Times

The government is under pressure to change the law to tackle bogus self-employment and protect workers in the gig economy after a report published on Monday by two influential parliamentary committees. The work and pensions select committee and the business, energy and industrial strategy (BEIS) committee have prepared draft legislation intended to close the loopholes that allow “irresponsible companies to underpay workers”. - Guardian

House building is the “number one priority” in the Budget and the “powers of the state” will be used to force construction numbers up to 300,000 per year, the Chancellor has promised. The green belt will stay intact but other parts of the planning system will be reformed in an effort to get more permissions granted - and to force more landowners with planning permission to get on and build. - Telegraph

US close

Wall Street went into the weekend before Thanksgiving Day slightly lower, with analysts continuing to mull developments regarding Russia's alleged involvement in the US presidential election.

By the closing bell, the Dow Jones Industrial Average was 0.43% or 100.12 points lower at 23,358.24, alongside a 0.26% or 6.79 point dip on the S&P 500 to 2,578.85 while the Nasdaq Composite ended down by 0.15% or 10.50 points at 6,782.79.

However, despite Friday's losses the NYSE's advance/decline ratio was at nearly 2.0.

Oanda analyst Craig Erlam said: "Strong gains yesterday left US equity markets back within touching distance of record highs and while that will have given some investors’ confidence that the recent stumble has passed, an inability to hold onto these today still leaves markets vulnerable to a broader pull-back. A failure to make a new high is typically another warning that the trend is weakening, especially coming after a month in which it has fallen into a sideways trend, rather than continuing its gradual ascent.

"Slow progress on tax reform in the US and reports that Robert Mueller has issued a subpoena to the Trump campaign in relation to the Russia probe are two other things that are being blamed for the more risk averse tone but I think in reality, neither of these would have had such an impact a month ago and it’s probably more a reflection of a less bullish investor."