Much scrutiny will be directed at July’s Consumer Prices Inflation data this morning (9.30am). CPI was 2.6% in June after hitting 2.9% in May. A sizeable rise for July could mean an earlier-than-expected Bank of England rate rise, as well as a possible jump in the value of sterling.
However as Westminster business resumes with more Brexit negotiation scrutiny, the pound remains under pressure, as do UK wages (wage growth being at 2% – employment data follows tomorrow).
Asian stocks continued the come-back theme in trading today with the Nikkei up more than 1.3%. This was supported yesterday by chunky gains from European stocks as the North Koreans move away – for the moment – from firing missiles at Guam.
The lower risk sentiment boosted the dollar though overnight sterling was up 0.07% at $1.2964 while the euro slipped under the $1.18 threshold to $1.1790. Gold was also sharply down to 1,274, a -0.78% slip, following last week’s sharpest gains for several months.
- UK FTSE 100 7,353.89 +0.60%
- Dow 21,993.71 +0.62%
- S&P 500 2,465.84 +1.00%
- Nasdaq 6,340.23 +1.34%
- Nikkei 225 19,792.73 +1.31%
- DAX 12,165.12 +1.26%
- CAC 40 5,121.67 +1.20%
- Gold 1,280.90 -0.74%
- Oil WTI 47.62 +0.06%
Hargreaves Lansdown sees AUM rise; Sainsbury's-Nisa talks stall
Asset management giant Hargreaves Lansdown claims a 28% climb in assets under administration for the last 12 months to £79.2bn while the client count is up by 118,000 to 954,000. The dividend rises 20% to 29.0p.
“There are considerable challenges for people in the current saving and investment environment but there are also opportunities,” said chief exec officer Chris Hill in a statement this morning.
It's suspected that Sainsbury’s Nisa negotiations have hit the buffers, at least for the moment. The proposed £130m takeover of the wholesale group by Sainsbury's has much governance overlap with Tesco’s Booker merger.
Sainsbury’s will be watching the Competition and Markets Authority/Tesco findings closely, though much of this detail and CMA feedback won’t emerge till the autumn. The value of the Tesco deal is rather bigger at an estimated £3.7bn. It’s also thought that Nisa has begun talks with the Co-op also, reports the Guardian.
Commuters brace for new RPI train fare hike
An offshoot of the soon-to-be-unveiled ONS inflation figures is a rise in UK train fares. UK train fares are linked to July’s Retail Price Index inflation levels. It’s thought this number will come in at 3.5% this morning, stoking further commuter frustration.
The RMT union yesterday claimed that rail fares have climbed 32% in the last eight years in contrast to a 16% climb in earnings.
Breaking news: Germany's Federal Statistics Office claims the German economy climbed 0.6% in the second quarter of 2017. This figure is slightly lower than anticipated. Wood Group and Amec Foster Wheeler have agreed to sell off some assets to free up the chance of a merger being approved by the Competition and Markets Authority.