Wall Street last night closed up 135 points higher at 21,144 on confirmation President Trump had taken a baseball bat to the Paris climate deal – a US jobs killer Trump has continually claimed. In Japan the Nikkei 225 has broken beyond the 20,000 barrier for the time since December 2015, helped by better electronics and bank sentiment.
Back in the UK the Labour party’s poll bounce-back means sterling continues to look volatile. The pound is now near a two-month low against the euro at 1.1481. Overnight the GBP/USD pair (at $1.287, 6.50am) came under some resistance as UK construction PMI data loomed (9.30am).
US Non-Farm Payroll numbers arrive later (1.30pm), plus Balance of Trade data – a big day for the US economy on the numbers front, possibly cementing the probability of a US rate rise this month.
- UK FTSE 100 7,543.77 +0.32%
- Dow 21,144.18 +0.65%
- S&P 500 2,430.06 +0.76%
- Nasdaq 6,246.83 +0.78%
- DAX 12,664.92 +0.40%
- CAC 40 5,318.67 +0.66%
- Nikkei 225 20,177.28 +1.60%
- Gold 1,262.30 -0.61%
- Oil WTI 47.97 -0.83%
President Trump claims he’s still willing to re-negotiate the Paris accord on climate change on terms better favouring the US – but any revamped deal is highly unlikely.
Many US tech companies gave strong support to the Paris climate agreement including Facebook, Google and Apple. “Dear President Trump, as some of the largest companies in the US, we strongly urge you to keep the US in the Paris Agreement," they apparently wrote.
During the US election campaign Trump claimed climate change was a hoax invented by the Chinese. Many American companies now fear non-US compliance will limit access to markets for cleaner technologies, and could even expose them to retaliatory measures.
GSK HIV progress
Pharma operator GSK says it has submitted regulatory applications for two HIV medications to the US Food and Drug Administration and the European Medicines Agency (EMA).
The submissions are via GSK’s ViiV Healthcare subsidiary. “We look forward to working with regulatory authorities to bring this new single tablet, two-drug regimen to appropriate people living with HIV,” says the company.
Earlier this year ViiV Healthcare released encouraging results from clinical trials (ViiV is supported by GSK rival Pfizer). There is though competition from a new HIV drug developed by US pharma operator Gilead.
Metro Bank snaps up mortgage bundle
Lastly, Metro Bank is looking to accelerate its loan arm by purchasing a mortgage portfolio from Cerberus European Residential Holdings for £596.7m.
The mortgage bundle consists of approximately 92% buy-to-let mortgages, with the remainder being owner-occupied says Metro Bank.
“The Portfolio complements our existing mortgage book and demonstrates our willingness and ability, helped by our strong deposit growth, to take advantage of opportunities as they arise,” says Metro Bank CEO Craig Donaldson.