The euro hit a near-three year high – $1.2092 – earlier today. More than a +15% climb against the US dollar though at 5pm the euro was trading at $1.2041.
The reasons are multiple: the likelihood of a move on tapering from the European Central Bank in October, declining confidence in the chances of an effective Trump administration not to mention the rash of natural disasters now afflicting parts of the US and Caribbean. European 2017 GDP was also reset at the ECB meeting yesterday, lifted from 1.9% to 2.2%.
So the euro looks set on a path to $1.21. The bull run is even more impressive when set against a fairly dismal picture emerging this week from the German economy – imports grew far faster than exports in July, putting pressure on its trade surplus.
So a stronger euro is making its presence felt (Germany also faces challenges to growth, namely skilled labour shortages). US stocks meanwhile remained on the back foot today as Hurricane Irma approached.
The FTSE 100 closed 20 points lower at 7,377 tonight with BHP Billiton the biggest faller, down almost -4%. Antofagasta was also down heavily, along with fellow miners Anglo American and Rio Tinto, more than -3% falls, all three.
- UK FTSE 100 7,377 -0.26%
- Dow 21,826.86 +0.19%
- S&P 500 2,464.56 -0.02%
- Nasdaq 6,382.22 -0.25%
- Nikkei 225 19,274.82 -0.63%
- DAX 12,308.22 +0.09%
- CAC 40 5,113.86 -0.01%
- Gold 1,351 +0.13%
- Oil WTI 48.32 -1.57%
Consolidation pressures build on Trinity Mirror
Trinity Mirror acknowledged it was discussing a Daily Express buy-out this morning. Trinity already publishes the Sunday People and the Daily Record. An Express buy-out would see Trinity take over the publishing interests of Northern & Shell, owned by Richard Desmond.
Desmond paid in the region of £125m for the titles originally but it’s not known how much Trinity Mirror is offering now. There would be clear ideological tensions: the Daily Mirror (Trinity) and Express (Northern & Shell) are directly politically opposed.
Burberry shares boosted but UK pension annuities slip
Burberry shares hit 1,800p earlier today, almost 1% up, after the fashion company was given a lift from Credit Suisse who switched its rating on the stock from Neutral to Outperform.
“Given its heritage with more than 50% of group sales from apparel,” Credit Suisse said, “Burberry is well placed to capitalise on the need for newness in luxury.”
New data from the Financial Conduct Authority reveals the deepening unpopularity of pension annuities. Sales are down -16% in the first six months up to April it says.
"If this trend continues much further,” Tom McPhail of Hargreaves Lansdown told the BBC, “we may not have an annuity market at all and that won't be good for investors."
Breaking news: United Utilities is fined more than £600,000 for raw sewage breaches. Food company Kraft Heinz has named 29-year-old David Knopf as its new chief financial officer.