The political situation in the US dominates after Steve Bannon made way – it capped off yet another troubling week for the President
The FTSE 100 index at the close was down 5.10 at 7318.88.
The Dow Jones has dropped 60 points, leaving it barely above 21600 and at its worst price in almost a month.
America is engulfed two major storylines at the moment: namely the US/North Korea tensions and the ongoing chaos of Trump’s domestic agenda, with Steve Bannon the latest high profile casualty of the orange one’s loyalty-free tenure.
Both of the situations are serious enough – one threatening global stability, the other indefinitely delaying Trump’s tax and infrastructure plans – to cast a cloud over the markets.
The US open inspired greater losses in Europe.
The FTSE 100 dropped 20 to 30 points, sporadically dipping below 7300 in the process, while the DAX and CAC more than doubled their initial losses to fall 1.1 per cent and 0.9 per cent respectively.
Major US stock indices were little changed on Wall Street, but some companies were moving on deal talk.
Herbalife jumped 9.3 per cent in early trading Monday after saying it had held talks to be taken private.
Fiat Chrysler rose 4.8 per cent after Chinese SUV maker Great Wall Motors says it is considering making an offer to buy Fiat Chrysler’s Jeep unit.
The Standard & Poor’s 500 index was up 1 point at 2,426. The Nasdaq composite edged up 3 points to 6,220, but the Dow Jones slipped 3 points to 21,671.
Bank of England Governor Mark Carney will be skipping a key summit of top central bankers in Jackson Hole this week, sending a potential successor in his stead.
It will leave Mr Carney as the odd one out among his US and European peers, with Federal Reserve boss Janet Yellen and European Central Bank president Mario Draghi both set to attend the prestigious gathering in Wyoming which runs from Thursday to Saturday this week.
A spokesman for the Bank of England said there was ‘no specific reason’ why Carney was missing out on the annual conference, but stopped short of giving details of the governor’s diary.
Carney will instead send his deputy governor for monetary policy Ben Broadbent, who has become a frontrunner to succeed the central bank boss when he steps down in June 2019.
‘Whenever the governor steps down, Ben Broadbent will be one of the people up for consideration for replacing him’, Samuel Tombs, chief UK economist at Pantheon Macroeconomics, said.
‘That’s still a few years away until the governor gives up his post, and so a lot can change.’
Love it or loathe it, there’s no denying that Mercedes’ latest creation will turn heads wherever it goes.
It’s called the Vision Mercedes-Maybach 6 Cabriolet and it combines the luxury of a superyacht with dazzling super-coupe looks and a drop-top roof.
The four-wheeled cruise-liner concept was revealed this weekend at Pebble Beach as part of this year’s Monterey Car Week in California.
Read the full article here.
Daily Mail and General Trust, publisher of the Daily Mail, is seeking to dispose of its commuter-friendly free title the Metro as part of efforts to ‘streamline’ its business.
First published back in 1999 the Metro is expected to fetch £35million, dovetailing with a strategic review of the public transport distributed title.
According to the Times the sale is being orchestrated by new DMGT chief executive Paul Zwillenberg with the aim of removing distractions from its core activities at the Daily Mail, a process which has already seen it reduce its stake in financial publisher Euromoney to 49 per cent and offload Elite Daily, a video-sharing provider geared toward millennials.
House prices in parts of central England have spiked by more than 9 per cent as ‘mini booms’ ride against the otherwise sluggish growth trend.
Northamptonshire, Derbyshire and Norfolk were identified by property website Rightmove as the ‘hottest markets’, with asking prices in these counties surging annually by 9.1 per cent, 7.9 per cent and 7.4 per cent respectively.
This is almost triple the national average, which has seen a 3.1 per cent annual increase in asking prices. Recent predictions from estate agent Countrywide suggest things will stall even further, slowing to 1.5 per cent as inflation eats into household incomes.
Read the full article here.
The worst performing blue-chips in London come from the financial sector with Provident Financial, RBS and Barclays occupying the bottom 3 slots on the FTSE 100.
Provident Financial, Britain’s largest sub-prime lender, has seen its share price hit a 52-week low today as the firm continues to struggle after what has been a bad few months with profit warnings and staff layoffs.
There are several bright spots, with mining stocks enjoying a green start to the week.
Rio Tinto, BHP Billiton and Glencore are all in positive territory, but some of the earlier gains seen in the trio have been pared back somewhat as the session wears on.
The median pay for chief executives of FTSE 100 companies fell by nearly a fifth over the past year, according to accountancy firm Deloitte.
The UK’s top bosses took home £3.5million this year compared to £4.3million in 2016.
Deloitte said in its remuneration report that government policies introduced to limit bosses’ pay appeared to be working.
French energy giant Total has struck an agreement to acquire the oil division of Danish firm Maersk in a $7.45billion deal.
It will see Total seize control of Maersk Oil’s assets in the UK’s sector of the North Sea, including the Culzean gas field.
Under the terms of the transaction, Maersk will receive $4.95billion worth of Total shares and Total will assume $2.5billion of Maersk Oil’s debt.
Total said the combination with Maersk Oil offers it an ‘exceptional overlap’ of upstream businesses which will increase its competitiveness through growing assets and $400million in annual cost-saving synergies.
The cost savings will be seen ‘in particular by the combination of assets of Total and Maersk Oil in North Sea’.
The deal will give the French firm access to around one billion barrels worth of oil reserves, 85 per cent of which are in OECD countries, including more than 80 per cent in the North Sea.
The Financial Times has reported a small profit for its first year under Japanese ownership, following its debt-fuelled £844million takeover by the publisher Nikkei.
Accounts for The Financial Times Limited, the main operating company, which excludes some overseas businesses, reveal a pre-tax profit of £6.2million for 2016 on revenue of £310.7million.
The FTSE dropped 0.3 per cent after the bell, just about keeping its head above 7300 thanks to its commodity stocks avoiding the downturn seen elsewhere.
Over in the Eurozone the losses were greater despite the euro slipping 0.2 per cent against the dollar.
The DAX and CAC, both of which are down 0.5 per cent to 0.6 per cent, are still somewhat affected by the tragic events in Spain last week, as well as the generally negative tone of trading that seems to have taken hold of the global indices.
Sky News had reported that the merger would be structured as a takeover by Rathbone – which has a £1.4billion market value – of independently-owned Smith and Williamson.
M&A activity has recently stepped up in the asset management sector, including the mega-merger of Standard Life Aberdeen which completed last week.
After a tumultuous 17-day vacation at his golf club in New Jersey, Donald Trump is heading back to the White House.
The First Family looked glum as they walked across the tarmac to board Air Force One at Morristown Municipal Airport yesterday.
Melania still kept her fashion bright as always, wearing a crisp calf-length summer dress with chic yellow pleats.
The bulk of this week’s economic events come later on in the week.
The Jackson Hole Symposium will keep investors, with both Federal Reserve Chair Janet Yellen and ECB President Mario Draghi making an appearance.
The two central banks are on the cusp of announcing measures aimed at reducing monetary stimulus in the coming months, the question is whether they will use this platform to prepare the markets for such a move.