FTSE 100 loses 5.12 to 7,487
UK manufacturing PMI rises more than expected
Next and Standard Chartered slump after Q3 updates
Mining shares rally
FTSE 100 turned negative into the close as traders got jittery ahead of the interest rate decision from the UK central bank tomorrow.
Footsie closed down 5.12 at 7,487 as the pound waivered against the Euro and the US dollar, up 0.06% against the former, but down 0.12% against the latter American currency.
The mood is the bank will lift rates for the first time in a decade, bolstered by data, which showed UK manufacturing activity expanded more than expected in October.
The FTSE 250, more UK company focused, closed up over 100 points to stand at 20,328.
Brent crude and gold made gains and big, diversified miners peppered the FTSE 100 leader board.
"Anglo American, Rio Tinto, BHP Billiton and Glencore are all in demand today after the Chinese manufacturing sector kept growing. The Caixin survey of Chinese manufacturing had a reading of 51 in October, in line with expectations, and no change from the September report," noted analyst David Madden, at CMC Markets.
Top gainer though was Paddy Power Betfair plc (LON:PPB), which added 4.47% to 8,049.28 after it unveiled an increase in third quarter revenue, driven by growth in Australia and the US, and said it expects to reach its adjusted operating profit target for the year.
The big loser was usually the High Street angel Next (LON:NXT), which plunged 9.14% to 4,471p, after a trading update did not instil confidence ahead of the key Christmas period.
The fashion retailer again lifted its full year profit guidance and reported third quarter sales growth but warned that its performance has been “extremely volatile” and highly dependent on the weather.
3.55pm: Investors cautious ahead of BoE rate decision
The FTSE 100 wavered in afternoon trading as investors exercised caution ahead of Thursday’s interest rates decision by the Bank of England.
The Bank is widely expected to raise interest rates but the main focus will be on the outlook for future hikes. Expectations for a rate increase were cememted after UK manufacturing data beat forecasts.
Following a batch of strong US data, including ADP private payrolls and US manufacturing figures from ISM and Markit, the pound has reversed gains against the dollar.
The US data was seen to support bets for an interest rate increase by the Federal Reserve in December. The Fed announces its latest decision tonight but is expected to stand pat.
In company news, Next shares plunged after warning it could see a weak fourth quarter as trading has been volatile and dependent on the weather.
Marks & Spencer declined on a negative read-across from Next’s results.
Standard Chartered was under the cosh as higher expenses and flat revenues overshadowed growth in third quarter profit that exceeded estimates.
Mining shares continued to rally as prices of gold, silver, copper and platinum jumped.
Paddy Power Betfair gained after reporting an increase in third quarter revenue, driven by growth in Australia and the US, and said it expects to reach its adjusted operating profit target for the year.
Smurfit Kappa shares rose as it said it expects to meet full year market forecasts.
Meanwhile, oil prices eased back despite data from the Energy Information Administration showing a bigger-than-expected decline in weekly US crude inventoris. Crude inventories fell by 2.4 million barrels in the week to 27 Octobery, compared with analysts’ expectations for a decrease of 1.8 million barrels.
Brent crude fell 0.5% to US$60.59 per barrel and West Texas Intermediate edged down 0.3% to US$54.21 per barrel.
3.30pm: Cable slips back after strong US data
The pound has erased earlier gains against the dollar as the greenback received a boost following a strong batch of US economic data.
Sterling is down 0.11% versus the dollar at US$1.3268. Versus the euro, is up just 0.04% at €1.1410.
“This reaction was assumedly related to the hawkish-tinge of the day’s data, with investors hoping the Federal Reserve tees up a December rate hike with this evening’s statement,” said Connor Campbell, financial analyst at Spreadex.
“Despite the pound losing its lustre against both the dollar and the euro – thanks to a combination of the former’s pre-Fed strength and more generalised jitters ahead of tomorrow’s BoE rate vote – the FTSE couldn’t muster any momentum this Wednesday afternoon. The retail sector continued to give the index a headache, with Next’s 8% plunge also leading Marks & Spencer and Associated British Foods 4% and 2% lower respectively.”
Evening Market Comment: Dollar starts to climb ahead of Federal Reserve meeting... https://t.co/nf46sIRowp
— Connor Campbell (@ConnorSpreadex) 1 November 2017
2.50pm: ISM manufacturing report still 'strong' despite miss, says ING
The ISM manufacturing index fell more than expected but it is still a “very strong report”, according to ING.
“New orders are still at incredibly good levels (63.4 versus the 50 break even level) and production also stayed above 60. Meanwhile employment only dipped modestly (to 59.8 from 60.3),” said ING’s chief international economist James Knightley.
He added: “Together with a good ADP employment report showing 235,000 jobs added, it bodes well for Friday’s payrolls figure which we expect to exceed 300,000. Indeed, the ISM report suggests 83% of manufacturers are seeing employment growth right now.”
2.15pm: US manufacturing data mixed
US manufacturing activity expanded further in October as output and new orders rose, according to Markit.
Markit’s final reading on the purchasing mangers’ index for the US manufacturing sector was raise to 54.6 from previous estimate of 54.5, compared to 53.1in September. Economists had expected the reading to remain unchanged.
Separately ISM’s US manufacturing index fell to 58.7 in October from 60.8 in September, missing forecasts of 59.5 but still above the 50 reading that indicates an expansion.
ISM Manufacturing PMI disappoints, fades 2.1 points to 58.7 in October (f/c 59.5). Downside misses have been rare in the past 24 months. pic.twitter.com/ZvcSi9KwgG
— Jeoff Hall (@JeoffHall) 1 November 2017
1.30pm: US stocks rise ahead of Fed interest rate decision
US stocks have opened in positive territory after strong corporate earnings and ahead of the Federal Reserve’s interest rate decision.
The Dow Jones Industrial Average rose 101 points, the S&P 500 increased 9 points and the Nasdaq edged up 26 points.
Shares in Estee Lauder Companies are higher after it gave an upbeat outlook and its first quarter results beat market expectations.
Clorox also rallied on first quarter revenue that exceeded forecasts.
Looking ahead, the Federal Reserve releases its interest rate decision with analysts’ expecting no change to its policy until December. The focus will be on any hints in its statement about future rate hikes.
“With it already being considered a forgone conclusion that US interest rates will be left unchanged in November, and with no press conference scheduled by Janet Yellen, today’s FOMC meeting could be a snoozer,” said Lukman Otunuga, research analyst at FXTM.
“Although the lack of excitement precipitated by a press conference by Yellen and no new quarterly economic projections may put a cap on the spice, investors are likely to devote much of their attention to gleaning fresh insights on the Federal Reserve’s tightening plan.
“Looking beyond the FOMC statement this evening, Trump will be back in the spotlight on Thursday, as he appoints the next head of the Federal Reserve. With Trump expected to appoint Jerome Powell, who is seen as a dove, it will be interesting to see how the Dollar reacts.”
1.00pm: Private payrolls rise more than expected
ADP’s private payrolls report revealed US employers added 235,000 jobs in October, beating market expectations of 200,000.
It followed a downwardly revised 110,000 job additions in September.
The report comes ahead of the highly-anticipated US non-farm payrolls data on Friday. Economists expect non-farm payrolls rose 310,000 in October after falling 33,000 a month earlier.
12.30pm: Oil prices jump as OPEC data confirms committment to supply cuts
Oil prices have risen to the highest level since mid-2015 after data showed OPEC’s October output fell by 80,000 barrels of oil per day (bpd) to 32.78 million bpd.
Brent crude rose 0.83% to US$61.45 per barrel around the midday mark after reaching a session peak of US$61.70 earlier, its highest since July 2015.
US West Texas Intermediate crude increased 1.0% to US$54.93 per barrel.
OPEC improved its compliance to pledged supply cuts at 92%, up from 86% in September. Russia is also widely expected to keep to the deal to reduce oil production by 300,000 bpd from 11.247 million bpd reached in October 2016.
Oil prices were also supported by data from the American Petroleum Institute on Tuesday, which showed US stockpiles declined by 5.09 million barrels last week.
Data from the Energy Information Administration is due later today.
12.00pm: FTSE 100 higher as BoE rate decision looms
The FTSE 100 rose 16 points to 7,509 as the pound strengthened after better-than-forecast UK data cemented expectations for an interest rate hike by the Bank of England on Thursday.
Markit’s UK manufacturing PMI rose more than analysts’ had estimated, sending the sterling up 0.12% versus the dollar to US$1.3299 and up 0.23% against the euro to €1.1431.
Nationwide’s report on UK house prices also beat forecasts, but it came with a warning that pressure on household incomes from rising inflation is weighing on confidence.
Mining shares were among the biggest risers on the FTSE 100, including Anglo American (LON:AAL), Glencore International (LON:GLEN), BHP Billiton and Rio Tinto, as metal prices jumped.
Paper packaging company Smurfit Kappa gained as it reported a drop in third quarter pre-tax profit but said it expects full year earnings to meet market forecasts.
Paddy Power Betfair jumped after reporting an increase in third quarter revenues and raising its full year earnings forecast.
On the downside, Next was the top faller as it warned that its sales performance has been “extremely volatile” and highly dependent on the weather.
Standard Chartered slumped despite reporting a doubling in pre-tax profit for the third quarter as analysts said the growth was driven by a decline in provisions for bad loans rather than growing income significantly.
11.30am: Outlook for UK manufacturing sector 'mixed'
The further expansion in UK manufacturing activity in October was supported by a pick-up in new orders but the outlook for the sector remains mixed, said Howard Archer, chief economic advisor to the EY ITEM Club.
“Domestic conditions look challenging despite October’s pick-up in orders,” Archer said.
“Increased prices for capital goods and big-ticket consumer durable goods, weakened consumer purchasing power, and economic and political uncertainty threaten to hamper manufacturers.
“Businesses’ willingness to invest and buy capital goods is being tested by extended lacklustre UK economic activity as well as Brexit uncertainties.”
Oct #UK #manufacturing PMI showing healthy growth & higher #price pressures reinforces strong expectations of Thurs #BOE #rate hike to 0.50%
— Howard Archer (@HowardArcherUK) 1 November 2017
11.00am: Wetherspoon releases 500,000 beer mats in support of Brexit
JD Wetherspoon has lent its support to Brexit once again – this time by placing 500,000 beer mats in its pubs with a “hard-hitting” message to parliament.
The pub operator said the beer mats include messages calling on Theresa May, Jeremy Corbyn, Vince Cable and MPs to “stop messing about and endorse Wetherspoon’s three point manifesto”.
The group’s manifesto states that the UK should unilaterally grant rights of citizenship to legal EU immigrants, get rid of import taxes the EU currently charges on food from outside the bloc and stop its weekly £200mln payments to the EU.
"Wetherspoon calculates that it will save an average of 3.5 pence per meal and 0.5 pence per drink if we leave the EU and abolish food import taxes in March 2019 - similar savings are likely to be made on meals consumed inside or outside the home in the UK ,” said chairman Tim Martin.
He said remarks by Sainsbury’s chairman David Tyler that imported food prices could rise 22% without a deal in the EU were “highly misleading” and that parliament has the power to reduce prices “at a stroke” when the UK exits the EU in March 2019.
“The EU imposes huge taxes on food imports from the rest of the world. World Trade Organisation rules, contrary to the urban myth, allow the U.K. to follow free trade champions like New Zealand, Australia and Singapore, which have drastically reduced or eliminated these taxes,” he said.
The beer mats will be placed at the company’s 895 pubs in England, Scotland, Wales and Northern Ireland.
#JDW Wetherspoon boss Tim Martin is banging the Brexit drum again...This time with 500,000 beer mats! pic.twitter.com/8NdinhBMrY
— Tom Howard (@proactivetom) 1 November 2017
10.30am: UK manufacturing PMI beats expectations
UK manufacturing activity expanded more than expected in October, adding to bets the Bank of England will raise interest rates on Thursday.
The Markit/CIPS purchasing managers’ index for the manufacturing sector rose to 56.3 from 56.0 in September, beating expectations of 55.9 and above the 50 level that indicates an expansion in output.
#UK manufacturing makes positive start to final quarter despite
rising price pressures. #PMI posts 56.3 in Oct'. https://t.co/Ycfn7CYnKV pic.twitter.com/8T5MNWUyTf
— Markit Economics (@MarkitEconomics) 1 November 2017
The pound is up 0.15% versus the dollar to US$1.3302 and up 0.26% against the euro to €1.1435.
“October’s Markit/CIPS manufacturing survey will reassure the MPC (Bank of England’s Monetary Policy Committee) that the economy is coping relatively well with the prospect of imminently higher interest rates,” said Samuel Tombs, chief UK economist at Pantheon Macroeconomics.
9.40am: UK house prices rise to three-month high, Nationwide reveals
UK house prices rose to a three-month high in October, according to Nationwide.
The average price of a home in the UK in October was £211,085, marking a 2.5% increase on the previous year and a 0.2% rise on the month before.
It followed September's 2.0% year-on-year gain and 0.2% month-on-month increase.
Growth continued to be supported by low mortgage rates, healthy rates of employment and a shortage of homes, but pressure on household incomes from rising inflation has been weighing on confidence, said Robert Gardner, Nationwide’s chief economist.
8.40am: FTSE gains despite Next slump
The FTSE 100 kicked the new month off on the front foot with the index of blue-chip shares aping rises on Wall Street overnight to advance 28 points to 7,518.85.
This was in spite of the drag exerted by Next (LON:NXT), which lost 6% in the wake of its latest trading update.
Spreadex’s Connor Campbell called it an “ugly, ugly morning” for the group, which has endured something of a roller coaster 2017.
“The clothing retailer had seen a remarkable resurgence in the last few months, rocketing more than 35% from its lows,” he explained.
“That’s because the company had been gradually revising its full year sales forecasts, with the usually bearish Lord Wolfson claiming he was ‘more confident’ in the firm’s outlook.
“Well, that (admittedly mild) positivity came back to haunt next this Wednesday.”
For while third-quarter total sales grew 1.3%, this was at a far slower pace predicted by City analysts. Next also warned of the “extremely volatile” sector landscape.
On the up was Indivior (LON:INDV), the ‘druggie’ that helps druggies kick drug addiction. The catalyst for its 10% share surge? Well, it was US regulatory approval for a once-a-month injection for people with opioid addiction.
The stock price surge goes some way to counter-balancing the sell-off seen in early September when it emerged that the company’s Suboxone product for addiction could come under copycat competition.
That bombshell knocked £1bn from the value of the firm. However, in the past two months the share price has slowly crept back to 410p, or just 6p below where it was before the bad news broke.
Indivior has fought a decent rear-guard action as the market tuned into the potential of the one-a-month drug formulation.
Proactive news headlines:
Mining company investor Cadence Minerals PLC (LON:KDNC) is to restructure its balance sheet to free up capital for new lithium assets. Cadence added it is already at an advanced stage of reviewing several early stage lithium projects, which can be developed and produce cashflow faster than a typical lithium carbonate deposit.
Thor Mining PLC (LON:THR) chairman Mick Billing said high-cost exploration is no longer a key activity for the company as he set out plans to fast-track its key tungsten and copper projects. Part of the programme for the coming months is a review of the open-cut ore reserve at Molyhil, its tungsten and molybdenum deposit in Australia’s Northern Territory.
Richland Resources Ltd’s (LON:RLD) Capricorn sapphire operations were hindered by mine rehabilitation, ahead of the upcoming wet season, nonetheless, the company believes it remains “well positioned”. “Each Capricorn Sapphire gemstone ensures quality, environmental best practice under Queensland and Australian mining law and both safe and ethical operational practices,” said Bernard Olivier, Richland chief executive.
Challenger Acquisitions Limited (LON:CHAL) said it has received £250,000 from the previously announced £1mln unsecured convertible note facility due on 8 June 2019. The group said in total £600,000 has now been received from this facility, with the funds received to be used for general working capital purposes and to support the company in its review of projects to complement its US$3mln equity interest in the New York Wheel Project.
OptiBiotix Health PLC (LON:OPTI) has signed a profit sharing agreement with a division of Premier Foods, which will manufacture and distribute the breakthrough weight-loss product, SlimBiome. The deal is with Knighton Foods, a supplier of powdered products to supermarkets and High Street coffee houses.
Bango PLC (LON:BGO) has expanded its presence and business development activity in South Korea, increase payment opportunities for digital, physical and Internet of Things (IoT) services across the region. The AIM-listed mobile payments company announced that, to lead these opportunities, it has appointed Alex Oh as Country Manager, South Korea, whose 25 year career includes technical leadership at Samsung, Dilithium Networks and Comverse and most recently in the field of media streaming devices.
Corero Network Security PLC (LON:CNS) is clearly doing something right after one of its early customers renewed its contract for the third consecutive year. The renewal with the unnamed digital enterprise client is worth over US$200,000 and will see Corero continue to supply its SmartWall Threat Defense System.
Renewable energy specialist Active Energy Group PLC (LON:AEG) has raised £1.75mln as it looks to accelerate the international commercial roll out of its CoalSwitch biomass fuel.
Banking software specialist Lombard Risk Management PLC (LON:LRM) said challenger bank has signed up to take its AgileREPORTER service for 10 years.
Greencoat UK Wind PLC (LON:UKW) has acquired an 80% stake in five wind farms in the Peterborough area for £98mln. The stake has been acquired from EDF Energy Renewables. The wind farms have, in total, 47 Senvion 2.05 megawatt MM82 turbines.
Echo Energy PLC (LON:ECHO) has unveiled the details of its latest transaction which sees it acquiring a 50% stake in onshore Argentina. The company is taking stakes in four licences (Fracción C, Fracción D, Laguna de los Capones and Tapi) spanning some 11,153 square kilometres within the prolific Santa Cruz province.
Oracle Power PLC (LON:ORCP) has provided details on its deal with state-backed Chinese groups to advance its coal assets in Pakistan. A formal deal with Sichuan Provincial Investment Group Co. Limited (SCIG) and PowerChina International Group (PowerChina) is now expected to be signed in November, the company told investors.
Stratex International PLC (LON:STI) has suspended its shares ahead of a shareholders meeting to determine whether to go ahead with a merger with Aussie-listed Crusader Resources (ASX:CAS). The AIM-listed gold miner is facing opposition from a number of dissident shareholders, two of whom have proposed an alternative plan to merge with the company's African joint venture partner Thani Stratex.
6.45am: A pinch and a punch
It maybe a pinch and a punch for the first of the month but investors seem to be in an upbeat mode.
After rising just 5 points to 7,493 yesterday, the FTSE 100 was expected to open almost 20 points higher this morning, judging by spread betting quotes.
Irrational exuberance may be tempered somewhat by the fact that the US central bank makes its announcement on interest rate rises later today and the Bank of England makes its crunch decision tomorrow.
The impending decision from the Federal Reserve did not stop US indices making their seventh successive monthly gain in October, though that could be because the consensus seems to be that the Fed will stand pat.
In fact, there is more speculation about who will replace Janet Yellen as chair of the bank.
The Dow Jones Average rose 28 points to 23,377 while the S&P 500 put on 2.4 points at 2,575. Both indices were put in the shade by the tech-heavy Nasdaq Composite, which advanced 29 points to 6,728.
Heading towards the close of trading, Asian markets were generally firmer.
In Tokyo, the Nikkei 225 was 408 points to the good at 22,420 while in Hong Kong, the Hang Seng was 232 points heavier at 28,477.
Back home, the macroeconomic scene will see Nationwide release its UK house prices index, which is expected to show a small acceleration from last month, and the Markit manufacturing purchasing managers' index (PMI), which is expected to be little changed.
As for company news flow, fashion retailer Next and emerging markets-focused bank Standard Chartered both release trading updates, while we could get an early reaction from Paddy Power Betfair to yesterday's preliminary government ruling on fixed odds betting terminals.
Significant announcements expected
Trading updates: Next PLC (LON:NXT), Paddy Power Betfair PLC (LON:PPB), Standard Chartered PLC (Q3) (LON:STAN), Just Group PLC (Q3) (LON:JUST)
Interims: Apax Global Alpha Limited (Q3) (LON:APAX), Smurfit Kappa Group PLC (Q3) (LON:SKG)
Economic data: BRC shop price index; UK manufacturing PMI; US ISM manufacturing; US construction spending; Federal Reserve US rate decision
Around the markets
- Sterling: US$1.3268, down 0.11%
- 10-year gilt: yields 1.345%
- Gold: US$1,277.05, up 0.44%
- Brent crude: US$60.59, down 0.53%
Business headlines
The Times
Airbus admits it broke US corruption rules: Corruption allegations hanging over Airbus have spread to America, with the European aircraft giant admitting that it has violated US compliance rules.
Conflicts of interest begin at home for accountancy regulator: Stephen Haddrill, chief executive of the Financial Reporting Council, is married to the senior civil servant who has responsibility for the accountancy regulator, according to a newly posted register of conflicts of interest.
Affordable homes are lost in legal loophole, claims Shelter: House-builders are exploiting a legal loophole to get out of building thousands of affordable homes across the country every year, Shelter has claimed.
Cancer drug boost for AstraZeneca: Attempts to revitalise the drugs pipeline at AstraZeneca PLC were given a boost yesterday when a potential blockbuster cancer drug was given fast-track approval by US regulators.
Fibre broadband bill could reach £6 billion: The cost of rolling out full-fibre broadband to up to 10 million homes could cost £6 billion, Openreach said yesterday, raising the prospect of higher bills.
Divorce sparks split in Marriott dynasty: A scion of the Marriott dynasty claims that he was ordered to step down from a senior position at the company or be exposed as a drug abuser after embarrassing the family by announcing his divorce — something that is strongly discouraged in Mormonism.
Marketing cuts by consumer giants hit WPP figures: Falling spending on marketing, especially by global consumer goods companies, has forced the world’s biggest advertising group to reduce revenue forecasts for the third time this year.
Ask and you will find a buyer, discovers Carillion: Carillion has raised £13.8 million by selling its majority stake in a property developer focused on northern England.
The Independent
Peugeot car ad banned for condoning dangerous driving by depicting man reading text message at the wheel: An ad for Peugeot has been banned for showing a driver reacting to reading a text message on the car’s built-in dashboard screen.
BA cabin crew staff accept pay rise after bitter dispute: A bitter dispute between some British Airways cabin crew and management has ended after almost a year. Cabin crew members of the Unite union working for BA’s mixed fleet unit at Heathrow have accepted a pay deal by a majority of five to one.
FCA drops US$9 trillion bond-rigging probe: The Financial Conduct Authority has closed a two-year investigation into possible manipulation of the US$9 trillion (£6.7 trillion) agency bond market, according to people with knowledge of the situation.
Fintech firm R3 and world’s biggest banks build blockchain-based payments system: Fintech firm R3 and 22 of the world’s biggest banks have together developed an international payments system that would allow existing central bank currencies and any new digital ones to be transacted via the blockchain, R3 said on Tuesday.
UK growth forecast slashed by leading think tank: The National Institute of Economic and Social Research has slashed its UK GDP growth estimates for this year and next year on the back of downgraded productivity forecasts.
RBS should accept independent findings that it systematically treated customers badly, FCA boss says: The boss of the UK’s financial regulator has told MPs that it’s “unfortunate” that RBS has refused to accept the findings of an independent review arguing that the bank is guilty of systemic inappropriate treatment and causing financial distress to customers.
Financial Times
Clariant seeking merger partners after Huntsman deal collapses
Rockwell Automation rejects takeover bid
Vinyl record revival gains pace as Sainsbury’s launches record label
Under Armour cuts outlook dramatically
Kellogg sees surprise return to sales growth
Royal Bank of Scotland is shopping its offshore Lombard loans around for £200 million
The Daily Telegraph
Fintech firm MarketInvoice joins rush into business lending: Fast-growing fintech company MarketInvoice is launching a business lending service, after advancing over £1.6 billion to UK firms through invoice finance over the past six years.
Bookies gearing up to try to limit damage in 12-week Government consultation on FOBTs: Maximum stakes on controversial fixed odds betting terminals are likely to be at least halved on the back of a long-awaited gambling industry review but firms will have a chance to limit the damage.
Imagination shareholders back takeover after Canyon Founder charged with insider trading in US: Canyon Bridge Capital’s takeover of Imagination Technologies has received shareholder approval, just hours after the Chinese-backed equity firm’s Founder was charged with insider trading in the US
Standard Chartered re-jigs top team as retail banking boss leaves: FTSE 100 giant Standard Chartered has re-jigged its management team as its head of retail banking heads for the exit.
Property tycoon Vincent Tchenguiz faces damages claims from Grant Thornton over Kaupthing case: Property tycoon Vincent Tchenguiz is to face multi-million pound damages claims from Grant Thornton after settling a £2.2 billion legal claim involving the firm this week.
Short-termism risks paralysing the UK’s industrial strategy, report warns: MPs and other decision makers must change their short-termist attitudes or risk paralysing the UK’s industrial strategy, according to a major report released on Wednesday.
The Guardian
Westpac says phone calls between traders not about rate rigging: Westpac has accused the corporate regulator of taking phone calls between its traders out of context because “it’s the best Asic can do” to try and prove allegations of rigging the bank bill swap rate.
Banks need Brexit transition deal by end of year, warns FCA chief: Banks could start to make irreversible moves to transfer staff from London to rival cities in the EU unless there is clarity over Brexit by the end of the year, the Financial Conduct Authority chief executive has told MPs.
Burberry’s designs are undone as Christopher Bailey bows out: Burberry’s well-paid bosses never quit their jobs, they “transition” out of them. Under the long chairmanship of Sir John Peace, the word has been obligatory at the fashion house and is designed to encourage the impression of smooth corporate progress towards greater conquests.
Brexit vote has cost each household more than £600 a year, says NIESR: British households are each more than £600 a year worse off following the vote to leave the European Union, according to one of the UK’s leading economic forecasting bodies.
Big energy firms make £1 billion profit despite loss of millions of customers: The UK’s biggest energy companies made a profit of £1 billion last year and have increased their profit margins in recent years despite losing millions of customers to challenger firms, according to Ofgem – the Office of Gas and Electricity Markets.
Daily Mail
Royal Mail posts a 5.6% share fall due to concerns over strikes and firms slashing the amount of letters they send: A bitter stand-off with unions and declining letter volumes hung over Royal Mail yesterday as its shares took a battering.
Lloyds tried to gag HBOS fraud victims: Bank demanded they sign secrecy deals to receive compensation: Victims of a huge fraud were pressured into signing gagging agreements by Lloyds Bank, fuelling claims of a cover-up.
Now BP wants to start selling us electricity: Oil giant could supply commercial and industrial firms: BP has unveiled plans to become an electricity supplier for businesses. The oil giant is exploring plans to sell electricity to UK commercial and industrial firms – in a potentially major push into a new sector.
Travelodge plan to team up with councils to develop hotels on disused land: Budget hotel chain Travelodge wants to team up with 210 local authorities as part of a local regeneration scheme.
Just Eat lifts sales outlook following success of its new Canadian business but UK order growth slows down: Online food delivery firm Just Eat lifted its sales outlook today after continued success of its Canadian business helped third quarter revenues higher.
Daily Express
Single malt exports up as value of Scotch whisky boosted to £1.8 billion: Demand for single malts boosted the value of Scotch whisky exports 3.4% to £1.8 billion in the first half of the year.
Ten Lifestyle eyes up raising £40 million by floating on UK’s junior AIM market: A tech firm that provides concierge services to the wealthy is to raise up to £40 million by floating on the UK’s junior AIM market.
City AM
Food prices still rising as retailers pass on costs: Grocery prices continued to rise last month as supermarkets passed on higher costs to consumers.
London Stock Exchange welcomes EU supervision for some clearing services - but others should be treated differently: The London Stock Exchange Group (LSE) has welcomed heightened supervision from the EU of some clearing services but dug in its heels over plans to force the industry to move away from the UK
BHP Billiton and Vale have been given an extension for Samarco settlement talks: FTSE-listed miner BHP Billiton and Brazil’s Vale have been granted an extension to resolve huge legal claims surrounding the Samarco dam collapse in 2015.
Two new mine acquisitions are set to boost AIM-listed gold miner Avesoro Resources: AIM-listed gold miner Avesoro Resources has agreed to buy two producing mines in Burkina Faso in a “transformational” move for the company.
Anglo American’s new chairman is set to face shareholder questions: The new chairman of Anglo American will face shareholder calls for clarity on the company’s direction when he starts the job tomorrow.
International Airlines Group PLC (LON:IAG) boss Willie Walsh says several airlines will struggle this winter: The chief executive of British Airways owner IAG said today there could be more turbulence ahead for the aviation industry after the collapse of Monarch, and Air Berlin and Alitalia’s troubles.
PPHE Hotel Group’s (LON:PPH) shares up as London’s tourism boom boosts revenue: Shares in Park Plaza hotels owner PPHE group were up 1.4% today after the company released a cheery trading update, buoyed by strong growth in London.
Chemicals maker Croda International PLC (LON:CRDA) leads the FTSE 100 risers after sales jump: Croda, which makes ingredients for products including shampoo and paints, said an improved sales trend that started in the first half of the year continued in the third quarter, with constant currency sales up 4.4%.