Future lifts expectations for full-year, Imperial Brands appoints Inchcape CEO to its top job
London open
The FTSE 100 is expected to open 35 points higher on Monday, having closed down 1.3% at 7,286.01 on Friday.
Stocks to watch
Imperial Brands said it had appointed Inchcape chief executive Stefan Bomhard to its top job, replacing Alison Cooper who stepped down on Monday with immediate effect. Cooper in October said she would step down as chief executive, but this would now be with immediate effect. Imperial added that Matthew Phillips had stepped down as chief development officer and board director with immediate effect.
Magazine and media company Future updated the market on its trading for the four-month period ended 31 January on Monday, reporting that it had continued to see “strong momentum” in the year-to-date, growing its audience numbers within the media division. The FTSE 250 company said that underpinned “strong” organic revenue growth, which together with improved conversion of higher margin revenues in both e-commerce and digital display advertising, was benefitting its trading results. It said it now expected the outcome for the full year to be “materially ahead” of current market expectations, despite some uncertainty in the macro-economic environment.
Newspaper round-up
The slowdown in Britain’s productivity growth over the last decade is the worst since the start of the Industrial Revolution 250 years ago, a dismal track record that is holding back gains in living standards across the country. Research from academics at the University of Sussex and Loughborough University shows that the productivity growth slowdown since the 2008 financial crisis is nearly twice as bad as the previous worst decade for efficiency gains, 1971-1981, and is unprecedented in more than two centuries. – Guardian
Britain’s energy regulator has said it will change how it governs the industry to help meet the government’s climate targets, after coming under fire for failing to prioritise the climate emergency. The regulator published a wide-ranging climate action plan on Monday, which aims to help get 10m electric vehicles on our roads by 2030 and support a fourfold increase in offshore wind generation, while protecting homes from rising energy bills. - Guardian
Japanese car manufacturer Nissan could invest further into Britain in the event of a hard Brexit as part of a bold plan to win market share from its rivals. The company has drawn up plans to pull out of mainland Europe should a deal between the UK and EU lead to tariffs on car exports. Nissan believes it can account for a fifth of the entire car market in the UK. – Telegraph
Netflix faces growing scrutiny of its tax affairs in Britain amid claims it generated more than £1 billion in revenues from its UK subscribers last year. The American streaming company may have made annual pre-tax profits of £68.5 million on revenues of £1.08 billion from its British customers in 2019, according to analysis by Tax Watch. This would result in a tax liability of £13 million if the profits were declared here, the think tank estimated. – The Times
South Western Railway will be formally asked this week to explain to Grant Shapps, the transport secretary, why he should not sack it from the commuter network based at London Waterloo. Just days after Mr Shapps renationalised Northern rail, stripping Arriva of its franchise, the owners of South Western Railway (SWR) have been told to submit a bid to the Department for Transport to stay in the job. If the plans of SWR’s operators - FirstGroup and MTR of Hong Kong - fall short, Mr Shapps will nationalise the business and hand the keys over to the operator of last resort, a subdivision of the transport department which is taking over at Northern next month. – The Times
US close
US stocks closed sharply lower on Friday as investors continued to monitor and assess the potential economic impact of the fast-spreading Wuhan coronavirus.
At the close, the Dow Jones Industrial Average was down 2.09% at 28,256.03, while the S&P 500 was 1.77% weaker at 3,225.22 and the Nasdaq Composite saw out the session 1.59% softer at 9,150.94.
The Dow closed 603.41 points lower on Friday after closing higher in the previous session when stocks were buoyed by a solid rally late in the session despite the World Health Organisation declaring the Wuhan coronavirus a global emergency.
On Friday, the Chinese National Health Commission revealed that the number of confirmed cases of the virus had risen to 9,692, while the death toll had reached 213.
That followed the World Health Organisation's declaration of a global health emergency overnight, citing concerns about the pneumonia-like virus's continued spread to other countries.
The move was necessary in order for the United Nations health agency to mobilise both financial and political support to stem contagion.
Also in focus, the United Kingdom officially exited the European Union at 2300 GMT on Friday - marking one of the most dramatic political and economic shifts in modern-day Europe.
Britain immediately entered into a "transitional period" wherein it remains a member of both the single market and customs unions as it looks to strike a long-term free trade deal with the bloc.