FTSE 100 went into reverse as economists predicted more interest rate rises are on the way after an unexpectedly strong showing from the UK economy in 2021. The index was down 62 at 7,609 in early trades.
Britain’s economy grew by a better than forecast 7.5% in 2021 even with a contraction in December due to omicron. Economists expect the solid number to spark more rate rises from the Bank of England.
Beer sales in pubs though took a hammering last year as drinkers stayed home on Covid fears. Nearly 1.5bn less pints were sold in British pubs compared with 2019.
British American Tobacco said 2021 was a “pivotal year” in its transformation into non-tobacco products, as its New Categories business saw soaring revenue growth and narrowing losses. The company also announced that it will return £2bn to its shareholders through a share buyback in 2022.
Tesla shares fell 3% overnight after the electric car manufacturer was sued by the state of California's civil rights agency over allegations of racial discrimination at its Freemont factory over a number of years. The state’s Department of Fair Employment and Housing (DFEH) said it had filed a lawsuit that alleged the company operated a “racially segregated workplace”.
Among the small caps, Galileo Resources rose 12% as it confirmed receipt of £2.4mln from the sale of the Glenover deposit and royalties of £86,000 from Star Zinc. It was the first royalty payment from Star with more to come shortly said the junior..
High-flying i3 Energy has outlined details of its planned Phase One, US$47mln, capital programme for 2022. Seven wells (five net) will be drilled across its portfolio - including the Central Alberta, Marten Hills & Marten Creek, and Simonette areas – targeting 2,450 barrels oil equivalent of addition production.