Business information reside: FTSE 100 near file excessive as inventory markets open
The FTSE 100 closed just short of a new record high yesterday, but Wednesday brings a new set of factors which may sway investor sentiment, including Rachel Reeves detailing her spending review, which is expected to included £5bn in cuts.
Final results are due from the likes of Revolution Beauty – under the microscope with Frasers recently – while overnight markets in Asia reacted by pushing higher after another day of trade talks in London between Washington and Beijing.
Further reaction is expected to the news of the FCA giving the Pisces stock market for private companies the go-ahead, while speculation around the Bank of England preparing to lower interest rates once more next week also arose following lowered employment data and slowing salary growth.
Here’s all the latest news around business, money and the stock markets today:
US-China trade talks reach agreement “in principle”
Two days of talking in London has seen Washington and Beijing reach an agreement of sorts over a trade truce.
The US and China have agreed “in principle” over a framework and how to implement it.
That led to Asian markets rising overnight, the Hang Seng up 0.77% and the Nikkei 225 rising 0.55%.
US commerce secretary Howard Lutnick said: “The idea is we’re going to go back and speak to President Trump and make sure he approves it. They’re going to go back and speak to President Xi and make sure he approves it, and if that is approved, we will then implement the framework.”
What is Pisces? What you need to know about new UK stock market
A new type of stock market will open in the UK later this year, allowing investors to trade shares in privately-owned companies — as opposed to those that are publicly owned and listed, for example on the London Stock Exchange (LSE).
Referred to as Pisces — which stands for a Private Intermittent Securities and Capital Exchange System — the first trading could begin on the new stock market in the next few months after the Financial Conduct Authority (FCA) approved the rules around it.
The FCA hopes the move will support the UK economy by giving more choices to the investment community and attracting new funds for growing businesses.
Although Pisces has already officially launched, trading cannot begin until companies who will act as operators start their platforms, which are subject to licences.
With more companies choosing to stay private for longer, the new trading system was created to give investors access to businesses they otherwise could not fund, and to allow those holding shares in private businesses the chance to cash out.
That can be as a result of shares being given as part of an employment package, for example, or by being an investor in an earlier round of private fundraising — which isn’t always accessible to private investors.
Evri tie-up with DHL’s UK parcel arm being probed
Evri’s deal to merge with rival DHL’s UK parcel arm is being investigated by the UK competition watchdog as the tie-up promises to create one of the UK’s largest delivery firms.
The Competition and Markets Authority (CMA) said it will look into whether the deal could “result in a substantial lessening of competition” in the postal delivery sector.
It is initially gathering comments on the tie-up, with a deadline for submissions of June 25, before formally launching its investigation.
FTSE 100 and European markets open positively
The FTSE 100 has opened slightly in the green this morning, up 0.2 per cent thanks to a few of the financials starting strongly. Lloyds, Standard Chartered and Prudential lead the way, the latter up 2.3pc.
On the continent, France’s CAC 40 and Germany’s DAX are both up around 0.16pc, with the Euro Stoxx 50 basically flat.
Wednesday business watchlist: Rachel Reeves, Revolution Beauty and more
Here’s a run-down of the headline events worth watching out for across the coming hours.
Wednesday financials are coming from (among others) Frontier Developments, Ibstock, Worldwide Healthcare Trust and Revolution Beauty.
The latter is notable as Frasers owner Mike Ashley has signalled that if a bid is forthcoming for Revolution Beauty, it will be an all-cash offer.
Its market value is now around £20m after a big slump this year.
Rachel Reeves’ spending review is the big focus of businesses and taxpayers alike today too – that’s coming at 12.30pm with a Treasury briefing sometime after 1pm.
We’ll also bring you the latest on currency exchanges, commodities and of course how the major markets are doing.
FTSE100 to open just shy of record high
On Tuesday, the FTSE 100 closed at 8853.08p – just shy of the all time high set in March, of 8871.31p.
The index did push beyond that mark during the day, before falling back somewhat in the late afternoon.
Perhaps today will be see the new high ushered in – but there’s lots to digest across the day before that’s the case.
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