FTSE 100 index 38 points lower
Sterling again weakens on political fears
US indices will return most of yesterday's gains
14.00: US indices tipped to open considerably lower
US indices seem to earn back much of yesterday's earnings when trading starts quickly.
That could explain why the FTSE 100 slipped into afternoon trading, although it has recently risen to a reduction of 38 points (0.5%) at 7,316.
Scattered odds suggest that the Dow Jones will open 172 points lower at 25,690, while the S&P 500 looks to give 18 points at 2,858.
12.30 pm: Blue chips go south
The Footsie traveled south in the afternoon, after threatening to return to the same level in the morning session.
The index of leading shares in London fell by 32 points (0.4%) to 7,322 after it was officially confirmed that the talks between the government and the Labor Party about a Brexit proposal to be submitted to parliament have been abandoned.
I wrote to Theresa May to say that talks about finding a compromise agreement before leaving the European Union have gone as far as they could.
The increasing weakness and instability of the government means that there can be no confidence in the ability to perform. pic.twitter.com/H27qxDleaB
– Jeremy Corbyn (@jeremycorbyn) May 17, 2019
"The pound was further milled away on Friday, the Brexit talks between the parties finally ended when Jeremy Corbyn claimed in a letter to the prime minister that they had gone" as far as possible & # 39 ;, "Connor Campbell reported.
"Although the writing has been hanging on the wall for a while, confirmation that the previously extended Brexit olive branch between Labor and the Tories has now been withdrawn is still a blow to the pound. One of the major bottlenecks was the approaching departure of Theresa May and the doubts that the willingness of the future prime minister, whoever that may be, evokes & # 39; to fulfill any compromise agreement & # 39 ;.
"After the news, the pound fell 0.3% against both the dollar and the euro. That brings cable to US $ 1,275 – a level that was last seen more than 4 months ago – while the euro level dropped to a new low of three months with € 1,142, "he added.
A little bottom fishing reinforced PLC (), Burberry PLC () and (), all of which had been given a bit of a coating yesterday – the first two after trading updates and the last in sympathy with PLC (), which issued a profit warning on Thursday.
39.2 p (2.1%) of yesterday's losses, Burberry 22.5 p (1.2%) and () 10.8 p (1.4%).
The news has no better day for Thomas Cook, with Citigroup effectively saying the shares are worthless.
READ Thomas Cook shares continue to dive as Citigroup lowers the rating to & # 39; sell & # 39; and to lower the target price to 0p
Thomas Cook sahres dizzy with 33% after Citigrpuo warning https://t.co/q9GCYltfLG
– Grauniad Newspepar (@grauniad_news) May 17, 2019
PLC () appeared to frighten Thomas Cook's shareholders that life after near-death is possible, while £ 375 million was raised to boost the balance.
shareholder to vote against the chairman https://t.co/2iN2W7CGvP
– City A.M. (@CityAM) May 17, 2019
The move was welcomed by the Regulation Authority (PRA).
"Metro Bank is profitable and still has sufficient capital and liquidity to serve its current customer base," Metro reassured its customers.
The shares in Metro increased by 101.5 p (19%) to 638 p.
In other countries, shares rose 13.52p (0.5%) to 2.545.02p after the Dutch shareholder group Follow this agreed to remove resolution 22 from the list of decisions that shareholders will vote on at the forthcoming annual general meeting.
The resolution called on Shell to set and publish targets that are in line with the objective of the Paris Climate Agreement to limit global warming to well below 2 degrees.
11.00 am: sham consultation between the government and the opposition about the end of the Brexit
Labor has withdrawn from the cross-party Brexit talks, putting the pound sterling even lower on the foreign exchange markets.
The talks between the government and the opposition party were generally seen as a sham, but anyway, the Footsie is delighted and nearly wiped out the morning's losses.
The index with the highest shares fell by 7 points (-1%) to 7,436.
Jeremy Corbyn, the leader of the Labor Party, said in a letter to the Prime Minister, Theresa May, that the talks were "constructive," but "we have not been able to bridge any important policy gaps between us."
Corbyn also referred to the May Government's "increasing weakness and instability" which raised doubts as to whether something that had been agreed during the discussions would be honored by its successor.
The pound fell below US $ 1.28 for the first time since February and is trading around US $ 1.2760, more than a third of a cent on the day.
A weak exchange is generally considered good for most Footsie companies.
9.45 am: Brexit fears falling back on the London market
Investors have had enough of caring about the deteriorating trade relations between the US and China and have therefore returned to the old state of indignation about Brexit.
The FTSE 100 fell by 25 points (0.3%) to 7,329 because traders felt that a hard Brexit is more likely now that the prime minister, Theresa May, has encountered an obligation to state her departure date.
"The fact that Theresa May will set its end date after the Bill Agreement of the Inclusion Agreement at the beginning of June means that: a) conversations between different parties have been almost fully ended, and b) the United Kingdom may be confronted with a hard-liner Brexit Premier, especially if the European elections are expected to go ahead next week, "Connor Campbell said.
Hearing a v credible source in the Tory 1922 commission that @grahambradymp is & # 39; seriously considering & # 39; to run to PM. Astonishing. Is there someone with less charisma in British politics?! #brexit # EUElections2019 @bbclaurak @IanDunt
– Charlie Pownall 诺 保 诺 (@cpownall) May 17, 2019
After a drop of US $ 1.28 on the prospect of a tough Brexit – or else the thought of Bojo the Bozo getting his trotters under counter in Downing Street 10 – the pound sterling dropped from about a fifth of this morning to US $ 1,2778.
Still no date for #May to go then. Only another abstract promise. Know that she is waiting for membership of each individual Brexit Tory to expire, so the only people who can vote for a new leader are Tory Remainers. https://t.co/LCtwaQIeMW
– Suzanne Evans (@ SuzanneEvans1) May 16, 2019
A weak exchange rate is normally good for the footsie, what with its abundance of large dollar earners, but the lift today has not been enough to push the index into positive territory.
Part of this is due to a negative reaction to the egg of a pastor of a statement from the accounting software giant PLC ().
The company said the cloud-based offering is performing better than expected, but its old school software and software-related services (SSRS) and processing revenues are falling faster than expected.
The net result is that the expectations for the full annual turnover remain unchanged.
The shares fell by 13.4 p (1.8%) to 724.6 p in mid-morning deals.
Thomas Cook shares another swat … of 10%
Citi price target reduced to 0 to cause damage.
Let Fosun come
– Neil Wilson (@marketsneil) May 17, 2019
8.45 am: weak start for Footsie
The ghost image of BoJo haunted the trading spaces of the Mile while the FTSE 100 opened 25 points lower at 7,328.82.
The prospect of a tough Brexit loomed after former foreign secretary Boris Johnson fought less than a nanosecond for the announcement of his leadership candidate for Tory.
This, after Prime Minister Theresa May was effectively shown the door by the men in gray suits from the 1922 committee of the Conservative Party on Thursday.
Johnson & # 39; s advance to the role of PM could see the UK quit the EU on or before October 31 without having a departure agreement – a prospect that brought the skids to market but had a greater impact on the pound sterling , that took nine days of streak losses with cable trading under US $ 1.28.
"After having seen the pound trade in a limited range of US $ 1.30 for a while, while keeping it all quiet in front of the Brexit, markets are again praising greater political uncertainty," said Neil Wilson of Markets.com .
easyJet (), an increase of 4.2%, flew higher after a better-than-expected start to the financial year.
On the downside, there was a second day of sharp losses for investors in (), which fell nearly 8% after internet giant Amazon picked up a share in rival.
But there was a relief rally in shares in (), which rose 17% higher after the challenger bank had collected £ 375m (£ 25m more than requested) in just three hours.
Proactive news headlines:
() Investors will be pleased with the latest positive results from the company's 11.765% proprietary Horse Hill oil project. In a statement, the largest listed stakeholder () of the project (which has a 50.635% majority stake in Horse Hill) provided information about the production test program in Horse Hill and told investors that a test to build up a week's pressure (PBU) was successful.
Out of home virtual reality company PLC () has won a $ 500,000 contract that will deliver three exclusive compelling experiences for the Dutch entertainment group, iP2Entertainment.
() increased gold production by more than 51% in the nine months to March, helped by an 11% increase in the Barberton Mines complex. However, the gold mining company based in South Africa added that it has decided not to reopen the Royal Sheba mine in Barberton as a stand-alone project.
Film insurance and service group (LON: FFI) will produce the underlying profit this year at the lower end of the indicated range. "Underlying EBIT is within, but at the end of the range from US $ 7.5 mln to US $ 11.5 mln." FFI recorded an underlying EBIT of US $ 6m in the half year to September.
() raises USD 10 million in new capital to support his participation in an expected triple horizontal drilling program in Australia. New shares are priced at 14 p each and the expectation is that the shares will be taken up by institutional investors.
PLC () said field operations in the Kisinka copper-cobalt project in the Democratic Republic of Congo are complete, taking the samples during the process being prepared for analysis. In all 23 employees, including two geologists and five technicians, collected earth from 663 termite mounds that will be assessed using X-ray fluorescence spectrometry technology to determine copper and cobalt levels.
() aims to expand its footprint in Cameroon this year, as it is aware of the strategy at its AGM.
(), the AIM-traded company focusing on the development of its CS Pozzolan-Perlite Project in Nevada, USA, said a new presentation, given by its chairman, Patrick Cheetham, later today at the inaugural annual symposium of the Natural Pozzolan Association in Wickenburg, Arizona, has been added to its website. https://www.sunriseresourcesplc.com/
PLC () (OTCQB: NQMLF), the mineral processing, exploration and mining company, has issued 1,367,521 new ordinary shares at a price corresponding to a price of 6.5 pence per share for payment settled with shares related with an extension of the repayment debt by three months.
6.32 am: FTSE expected to earn some profit back
The FTSE 100 was expected to return part of yesterday's profit, as fears of a firm return to Brexit would continue to haunt London.
Spread odds of gambling point to London & # 39; s index of leading stocks that are about 27 points lower at 7,326, after having gained 57 points yesterday and closing at 7,353.
US benchmarks had a good day on Thursday, with the Dow Jones achieving 215 points to finish at 25,863 and the S&P 500 rising 25 points to close at 2,876.
The picture is more mixed this morning in Asia, with the Nikkei 225 in Japan with 229 points at 21.296 and the Hang Seng index in Hong Kong with 209 points at 28.068.
In today's news world, the results of the Easyjet PLC () are without a doubt the main order of the day.
Investors are hoping for some more positive news in the first half of Friday after last month's dismal update tumbled the stock.
The budget company warned of a loss of £ 275 million in the first six months of the financial year, partly due to a sharp rise in fuel costs.
Uncertainty of the Brexit has not helped, although it has been going on for a few months now, it is interesting to see whether it has been a boost or a burden.
"The group cannot determine how Brexit can disrupt the industry, or how much it has to pay for the fuel that fills the tanks, but it can help protect the bottom line by controlling more manageable costs," said stock analyst George Salmon.
"The underlying costs of Easyjet per seat have increased resolutely, so it would be encouraging to see that the group can stop that trend or even reverse it."
The outlook will also be closely monitored and the market will hope that Easyjet still expects sales per seat to increase in the second half after a 7.4% drop in the first half.
Major events expected on Friday:
interims: (), easyJet PLC (LON: EZY), PLC ()
Trading updates: PLC (), Afarak PLC (Q1) (), Jersey Electricity PLC ()
AVA: (), PLC (), ()
Economic data: US University of Michigan consumer confidence index
Around the markets:
Pound: US $ 1,291, a decrease of 0.05 cents
10-year-old calf: yields 1.075%
Gold: US $ 1,287 per ounce, an increase of 80 cents
Brent crude oil: US $ 72.81 per barrel, an increase of 18 cents
Bitcoin: US $ 7,318.40, US $ 430.68
The pound fell to a five-month low against the dollar and went into a ninth day of decline against the euro when it did not resolve deal concerns, as Theresa would agree to announce the departure date.
The Bank of England has lashed out with the Brussels regulators who claim to present incorrect and conflicting views of future UK regulations in an attempt to convince international banks to leave the country.
The American owners of Asda, Walmart, reported an error in quarterly revenue after confirming this week that they are considering a stock market launch for the supermarket.
The EU is jeopardizing around 35,000 British jobs and £ 150 million in exports by plowing forward with a ban on palm oil, Malaysia has warned.
Long recovery in the global real estate market from the financial crisis may come to an end amid slowing growth, high prices and rising risks, investment bank UBS has warned.
Thomas Cook's share plummeted nearly 15% after the record revealed half-yearly losses of £ 1.5 billion.
The Serious Fraud Office has blocked the £ 12 million property of four men in the center of the collapse investigation of the London Capital & Finance investment company.
Telecoms group BT has to spend £ 500 worth of shares on each of its employees while the chief executive tries to restore morale.
BHP is faced with a huge legal claim after the Brazilian mine flood left 19 dead.
Troubled secured a £ 375 million rescue credit yesterday by issuing new shares at 500 p per share, nearly 90% less than the 4040 p peak it hit last March.
Lloyds Chairman Lord Blackwell has paid £ 6.2 million from the bank's boss, who says he has a & # 39; difficult & # 39; job.
, RBS and the Japanese MUFG received a fine of EUR 258 million from the European Commission after an investigation found that traders were conspiring with lenders to share information about customers' foreign exchange orders and prices.
The British Steel owners and lenders have agreed to make new funds available to the company to prevent the collapse, despite the government's rejection of its request to participate in the rescue operation.
Airbus is considering purchasing the production site in the Belfast wing after the Canadian company said it was looking for a buyer for the struggling factory.
Mr Nice's first store opened its doors on Thursday in London's Soho district and sells everything from first-class bath bombs and face creams to hoodies.
Waitrose aims to triple the size of its online business to £ 1 billion a year after the end of its partnership with Ocado.
The booming online retail chain Boohoo refuses to allow union officials to discuss employee recognition months after the founder told MPs that she was open to union representation.
Remortgaging levels bounced when the number of households withdrew equity in March increased by 9% compared to last year due to historically low borrowing costs.
KPMG UK intends to shake its arm of control by establishing a new executive committee responsible for the performance and risk management of the division.
Angela Ahrendts, the former retail chief of, and one of the highest paid managers, has joined the board of Airbnb since she left the tech giant.
The Competition and Markets Authority should investigate home builders about the mis-sale of thousands of leaseholds following a turnaround by the competition watchdog, under pressure from ministers.