Oil prices have dipped as OPEC output, with the helping hand of Nigeria and Libya, pushed crude levels to more than 32.8m barrels a day according to new research from S&P Platts. At 4pm WTI crude was down more than -1.84% to $48.67 while Brent crude was down -1.74% at $51.51.
OPEC will produce its own figures later on Thursday. It’s not known whether Libya will commit to capping its production output. Its levels are near to peaking, encouraged by production improvement at its biggest oil field, Sharara.
The pound is down -0.21% at $1.3018 against the dollar while the euro is up +0.08% at $1.1792. Against the pound the euro is up +0.31% and a similar amount with the yen. Tonight, the FTSE 100 closed at 7,530.59, up 18 points thanks in part to strong rises from Anglo American, up more than 3% and Rio Tinto, up 2.6%.
The biggest fall was from Paddy Power Betfair, down 4.7% as investors responded to the news that the bookie was taking a punt on UK Worldpay CEO Peter Jackson.
- UK FTSE 100 7,530.59 +0.27%
- Dow 22,092.72 +-0.01$
- S&P 500 2,477.21 +0.02%
- Nasdaq 6,368.32 +0.26%
- Nikkei 225 20,055.89 +0.52%
- DAX 12,245.20 -0.42%
- CAC 40 5,204.18 +0.03%
- Gold 1,263.90 -0.06%
- Oil WTI 49.26 -0.65%
Tesla turns to junk bonds to raise cash
US energy player Tesla says it aims to raise £1.15bn to help fund its new Model 3 mass production car. Tesla is going the high yield junk bond route, news that has not affected its credit rating so far. Model 3 will cost from $35,000; the first cars are expected to be delivered to new owners in the first quarter of 2018.
Tesla shares are up more than 67% year-to-date but it has been a volatile ride en route. The company is burning cash from the manufacturing and production pressure but Model 3 is crucial to the company’s long-term viability.
Not everyone is so impressed. The boss of hedge fund Greenlight Capital, David Einhorn, is short on the stock. "When Apple launched the iPhone, it was immediately profitable," Greenlight said recently. However Tesla is not yet generating money “and Mr. Musk shows little interest in profits,” Einhorn finished.
House prices dip in last quarter – Halifax
More air appears to be leaking out of UK house prices. The Halifax claims that prices between May and July slid -0.2% lower compared to the quarter before. Despite a better UK jobs market – a rise in the employment level by 175,000 in the three months to May – the improvement hasn’t boosted wage growth for many Britons.
“This squeeze on spending power,” said the Halifax, “together with the impact on property transactions of the stamp duty changes in 2016 now being realised, along with affordability concerns, appear to have contributed to weaker housing demand.”
Nationally, house prices in July 2017 are 10% above their August 2007 peak it says. The average house price of £219,266 is £64,603 (42%) higher than its low point of £154,663 in April 2009 claims the mortgage lender.
Breaking news: Japanese telecoms player Softbank is looking hard at investing in Uber and Lyft according to a new report from Reuters. "This is the first time Softbank has publicly indicated an interest in Uber, after having so far put funds into its rival Grab in Southeast Asia and China's Didi Chuxing," said the news agency.