Market Buzz
Market buzz: Challenger banks rise, analysts quarrel over BoE rate hike
1527: With the poor outturn for the UK first-quarter GDP on the back of Mark Carney’s recent comments, Oxford Economics has joined along with those saying they no longer expect the BoE to hike interest rates next week.
Monday newspaper round-up: Russian oligarchs, Hermes, T-Mobile, Sainsburys/Asda
Labour has called on ministers to toughen the scrutiny and regulation of City flotations as a matter of urgency following the controversial $7bn (£5bn) London flotation of En+, a Russian metals group controlled by oligarch Oleg Deripaska. The shadow chancellor, John McDonnell, called on the chancellor, Philip Hammond, to introduce serious measures against oligarchs and consider “tightening initial considerations around listings” after the US said it would introduce economic sanctions against the Russian billionaire.
Sunday newspaper round-up: UK growth, Sainsbury-Asda, bookies, Capita, Apple
Traders fear the pound is about to come under further selling pressure amid mounting evidence that the economy is grinding to a halt. An ominous new survey, published today by the CBI, suggests that the first quarter’s dismal growth figures are the start of a prolonged economic slowdown rather than a weather-related blip. - Sunday Times.
Market buzz: Pound plunges on GDP slowdown, Koreas shake
1700:Close Stocks finished the session and the week sharply higher, boosted by equally large falls in the value of Sterling.
Friday newspaper round-up: North/South Korea, Trump, Persimmon, Whitbread
The leaders of North and South Korea have vowed to “write a new chapter” in their peninsula’s troubled history at the start of a summit that has raised hopes for a resolution over Pyongyang’s nuclear and ballistic missile programmes. On a bright spring morning Kim Jong-un and his South Korean counterpart, Moon Jae-in, reached across a simple concrete slab marking the border between their countries and shook hands for more than 20 seconds. - Guardian.
Market buzz: Barnier slaps down City's Brexit hopes, Draghi downs the euro
1830:Close A stinging rebuke for the City of London from the EU's chief negotiator Michel Barnier, trashing Mark Carney's claim that bloc needs the square mile's financial services industry and tells Brits to stop "pleading" for mutual recognition and make do with 'equivalence' like Wall Street instead.
Thursday newspaper round-up: Brexit, trade, Unilever, water
David Davis has been accused by Brussels of engaging in “fantasy” politics after he claimed that an EU trade deal could be ready for ratification by March next year. The Brexit secretary told MPs yesterday that the government intended to have a political trade partnership deal in place by October, and that it could be turned into a legal treaty in time for Britain’s official EU departure date. - The Times.
Market buzz: Trump's UK trip pencilled in, Twitter dumped after calling a top
1646: The FTSE rallied a little towards the close but still finished down 46. 08 points or 0. 62% at 7,379. 32.
Wednesday newspaper round-up: Brexit, banks, food, Capita, fracking
The City will maintain access to European markets after Brexit if British regulations are similar enough to its own, the vice-president of the European Commission has said. Valdis Dombrovskis said that UK banks probably could use a system of equivalence to secure EU access after Britain leaves the bloc. However, he warned that Brussels had a “unilateral and discretionary” say over whether regulation would be strong enough. - The Times.
Market buzz: US stocks slide as UST yields hit 3.0%, FTSE holds on
1639: London's blue chips remains in the black at 7,425. 40 on Tuesday, avoiding a late lurch lower as US markets open in the red amid the rise in Treasury note yields.
Tuesday newspaper round-up: Alphabet, Mirror, whistleblowing
Google owner Alphabet shrugged off mounting concerns over privacy on Monday to report an 84% rise in profits for the last quarter. The results eased concerns that investment in new ventures beyond its core search business was undermining Alphabet’s outlook. There also were no immediate signs that rising global privacy concerns would affect profits. – Guardian.
Market buzz: Pound falls to five-week low, Deutsche Bank upgrades UK
1700:Close Company-specific news and broker talk was the main driver of individual moves in stocks at the start of the week against a backdrop of a sharp move higher in Gilt yields, at both the short and long-ends of the curve.
Monday newspaper round-up: Customs union, cyber attacks, luxury brands
Theresa May could face a cabinet revolt on a customs union as peers prepare to inflict more defeats on the government over the EU withdrawal bill in a key week for the future of the UK’s relations with Europe. Amid Brexiter threats of a leadership challenge, the former cabinet minister Nicky Morgan, who chairs the Treasury committee, said party rebels should be careful what they wished for. – Guardian.
Market buzz: Top flight index boosted by pound weakness
1700:Close Britain's top-flight index pushed higher on Friday, boosted by weakness in the pound on the back of 'dovish' remarks overnight from BoE Governor Mark Carney himself.
Friday newspaper round-up: Workers' rights, WPP, tech crackdown
The World Bank is proposing lower minimum wages and greater hiring and firing powers for employers as part of a wide-ranging deregulation of labour markets deemed necessary to prepare countries for the changing nature of work. A working draft of the bank’s flagship World Development Report – which will urge policy action from governments when it comes out in the autumn – says less “burdensome” regulations are needed so that firms can hire workers at lower cost.
Market buzz: BoE's job "done" says BoA, Philip Morris gets smoked
1700:Close Stocks finished the session higher, led by Shire amid news that US rival Allergan had joined the fray for the rare-disease specialist, tabling a counter-offer to that from Japan's Takeda.
Thursday newspaper round-up: Housing, Porsche, Bank of England, oil
Rogue landlords should have their properties confiscated by local councils, according to a cross-party report from MPs into Britain’s private rented sector. Current financial penalties are “meaningless” in deterring the worst, criminal offenders among landlords, according to the housing, communities and local government committee. - Guardian.
Market buzz: Miners jump on sanctions concerns, nickel and aluminium fly
1700:Close A weaker-than-expected reading on UK consumer prices saw the pound fall back and the Footsie jump, but with buying very much concentrated on the Basic Resources space.
Wednesday newspaper round-up: M&S, WPP, KPMG, over-55 homeowners
Marks & Spencer is to close its distribution centre near Warrington, putting 450 jobs at risk. The decision brings the total number of job losses at M&S this year to more than 1,300. In January, M&S said it was closing 14 stores, affecting nearly 500 jobs. The retailer also ditched its Neasden distribution site in London, putting a further 380 jobs at risk. – Guardian.
Market buzz: Global growth speeding or slowing?
1635: After a year of strong growth and relatively tame inflation, investors have been caught off guard recently as growth momentum appears to have slowed while inflation is picking up in parts of the world, but today the IMF forecasts an acceleration of global GDP growth into 2018.