FTSE opens higher
The FTSE stared the day strongly, up over 0.50%, pulled higher by a stronger close in the US market and positive company news including Investec’s spin off plans.
Investec on the rise on spinoff plans
Investec PLC shares powered 10% higher after the banking group announced it would spin off and separately list its asset management business in the next 12 months. The move is part of the restructuring process triggered by the departure of current chief executive Stephen Koseff. The new company will be listed in both London and Johannesburg and will keep at its helm the current chief executive of the asset management business Hendrik du Toit. Du Toit will also briefly become the joint chief executive of the whole group in October when Koseff steps down. Investec’s asset management unit has 109 billion pounds in clients’ assets under management.
BoE’s Carney warns of Brexit-induced financial crisis
Sterling is holding steady against the dollar this morning, trading up 0.16%, but is nudging down against the euro 0.05% following a stark warning from the Bank of England’s Mark Carney. In a special meeting with the cabinet Carney said that a chaotic no-deal Brexit could create a financial crisis on the scale of 2008, trigger a decline in house prices of between 25% and 35% and see the pound weaken further. It remains to be seen if the warning provokes any reactions within the top echelons of UK politics who seem to be more embroiled in a political power struggle than finding ways of leaving the EU in an orderly fashion.
JD Weatherspoon
The hot British summer helped pub owner JD Weatherspoon grow its pre-tax profit year on year by 4.3%. The group had a reasonable revenue increase in September but expects that higher wages, taxes and interest costs will make a dent in its profits. To maintain its current profit levels the group will have to grow sales in the coming financial year by 4% and in September those sales grew by 5.5%. Like other UK retailers, pub owners and restaurants Weatherspoon will have to face the fallout from Brexit and potentially higher interest rates later this year.
CFD and forex trading are leveraged products and can result in losses that exceed your deposits. They may not be suitable for everyone. Ensure you fully understand the risks. From time to time, City Index Limited’s (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material. As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed
Recommended Content
Editors’ Picks
EUR/USD clings to recovery gains near 1.0850 ahead of Fedspeak
EUR/USD trades in positive territory near 1.0850 on Friday following a four-day slide. China's stimulus optimism and a broad US Dollar correction help the pair retrace the dovish ECB decision-induced decline. All eyes remain on the Fedspeak.
GBP/USD pares UK data-led gains at around 1.3050
GBP/USD is trading at around 1.3050 in the second half of the day on Friday, supported by upbeat UK Retail Sales data and a pullback seen in the US Dollar. Later in the day, comments from Federal Reserve officials will be scrutinized by market participants.
Gold at new record peaks above $2,700 on increased prospects of global easing
Gold (XAU/USD) establishes a foothold above the $2,700 psychological level on Friday after piercing through above this level on the previous day, setting yet another fresh all-time high. Growing prospects of a globally low interest rate environment boost the yellow metal.
Crypto ETF adoption should pick up pace despite slow start, analysts say
Big institutional investors are still wary of allocating funds in Bitcoin spot ETFs, delaying adoption by traditional investors. Demand is expected to increase in the mid-term once institutions open the gates to the crypto asset class.
Canada debates whether to supersize rate cuts
A fourth consecutive Bank of Canada rate cut is expected, but the market senses it will accelerate the move towards neutral policy rates with a 50bp step change. Inflation is finally below target and unemployment is trending higher, but the economy is still growing.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.