A slow start to the week with US shares barely moving: the Dow was up just 0.08% at 4pm at 21,432.44 while the Nasdaq wasn’t much livelier, up 0.23% at 6,167.16. Not a lot of market-moving data around though there may be some glimmerings from Fed chair Janet Yellen midweek after she reports to Congress on monetary policy.
That flatness was reflected by both the euro and sterling, down -0.12% and -0.20% at $1.1387 and $1.2863. However things were a tad more exciting in euro-land with the Dax up +0.60% to 12,462.
In the UK, the FTSE 100 ended at 7,370.03, up just 19 points. Schroders and BAE Systems were the biggest risers, up 2.15% and 2.02%. However Shire and Next were down 3.19% and 1.94%.
- UK FTSE 100, 7,370.03 +0.26%
- Dow 21,418.21 +0.02%
- S&P 500 2,426.36 +0.05%
- Nasdaq 6,157.86 +0.08%
- Nikkei 225 20,080.32 +0.76%
- DAX 12,452.72 +0.53%
- CAC 40 5,174.84 +0.58%
- Gold 1,209.00 -0.06%
- Oil WTI 44.07 -0.36%
Carillion shares plummet on profits warning
As reported this morning, the shock resignation of Carillion boss Richard Howson precipitated a sharp sell-off in shares of the outsourcing operator, falling 35% after the opening bell. Some of the order fall-off appears Brexit-connected.
Howson had been chief exec for five years at Carillion but will stay on behind the scenes to ease the way for temporary replacement Keith Cochrane, ex Stagecoach and Weir Group.
Dividends meanwhile are cancelled. The stock had been massively shorted by hedge funds, including BlackRock and Thunderbird Partners, pessimistic about the company’s cashflow and prospects. Before the end of trading Carillion stock was down 39.04% at 117.10p.
BMW pension deal for UK workers
UK workers at BMW car plants have put an end to threatened strike action after agreeing a deal on pensions. A defined contribution pension scheme replaces the previous final salary scheme.
Originally BMW offered transitional payments of around £7,000 but in the end the German car giant tripled the offer, following union pressure on behalf of Mini and Rolls-Royce workers. Earlier in the year up to eight 24-hour strikes were threatened.
BMW initially thought it could railroad its pension changes through, said Unite officer Fred Hanna, commenting on the deal. “It’s testament to the resolve of Unite members and their solidarity that the carmaker was forced to more than triple these payments and give additional guarantees.”
Breaking news: Brent crude climbs 0.98% to $47.17. Shares in Abercrombie & Fitch fall to 17-year low after the US apparel retailer abandons sale ambitions.