Markets
Europe
The FTSE-100 finished yesterday's session 0.37% lower at 7,320.75, whilst the FTSE AIM All-Share index was down 0.10% at 1,010.42. In continental Europe, the CAC-40 finished at 5,383.86 whilst the DAX ended the session at 13,045.15.
Wall Street
Last night in New York, the Dow Jones closed 0.29% higher at 24,211.48, the S&P 500 added 0.29% to end at 2,636.98, and the Nasdaq finished 0.54% higher at 6,812.84.
Asia
In Asian markets this morning, the Nikkei 225 was up 1.28% at 22,786.13 and the Hang Seng was 1% higher at 28,585.25.
Oil
In early trade today, WTI crude was 0.02% higher at $56.7 per barrel and Brent was up 0.03% at $62.22 per barrel.
Headlines
CBI: Business needs more Brexit clarity
More clarity on the Brexit transition is needed to stop companies proceeding with contingency plans despite the progress announced on Friday, the CBI has warned. Paul Drechsler, president of the business lobby group, said companies had begun triggering plans months ago. However, more detail could help suspend further action by firms, he said. Sterling was trading higher at just under $1.35 and €1.15 after the announcement in Brussels on Friday. The CBI chief also called for "unconditionality" about the status of EU citizens living in the UK. "It's an important political milestone, but clarity on transition is the most important thing from a business point of view at this stage," Mr Drechsler told BBC Radio 4's Today programme. The Institute of Directors echoed the CBI call for certainty on the rights of EU citizens. Stephen Martin, IoD director-general, said companies urgently needed certainty about the future of EU staff in the UK. "We have grounds to hope now that our members will be able to send their employees off for the Christmas break feeling more comfortable about their status here," he said. "We look forward to further clarity about what the UK's objectives are for that new relationship, as well as a firm commitment on transition in the very near future."
Source: BBC News
Company news
Savannah Resources (LON:SAV, 5.40p) – Speculative Buy
Savannah announced yesterday that commissioning of the pilot processing plant for its bulk metallurgical test work programme at the Mutamba Mineral Sands project in Mozambique is now complete. The 20 tonne per hour pilot will produce bulk samples of concentrate for metallurgical and product testwork as part of the Pre-Feasibility Study (PFS). Savannah holds a 20% interest in the project and has the right, subject to key milestones being met, to earn up to a 51% as stated in the Consortium Agreement signed with Rio Tinto on 11 October 2016. The Consortium is targeting first production in 2020 with an estimated annual production of 456,000t of ilmenite and 118,000t of non-magnetic concentrate over a 30-year mine life. Total resource for the Mutamba project stands at 4.4Bt grading 3.9% THM (total heavy minerals).
Our view: We are encouraged with the pace of development at Mutamba since the Scoping Study released earlier this year. The pilot plant will produce bulk samples necessary for metallurgical test work and final products for test marking. The TiO2 pigment industry continues to gain strength on the back of strong demand for feedstock which should help support current prices moving forward. On aggregate, the Mutamba resource compares favourably with other major African based mineral sand deposits. We look forward to further updates as the project moves through the commissioning phase. In the meantime, we maintain a Speculative Buy rating on the stock.
Beaufort Securities acts as a corporate broker to Savannah Resources Plc