Wednesday November 25 2015
Get the latest news from The City at 8am, plus a US business update landing at 4pm
Mark Carney says that UK interest rates are likely to remain low "for some time". UK rates have been at 0.5% since March 2009. The Bank of England governor said that "even with limited and gradual rate increases it still will be a relatively low interest rate environment". The Canadian's comments came as he spoke to MPs on the Treasury Committee.
George Osborne’s spending plans will include billions of pound in cuts and new funds for housebuilding, says the BBC. The chancellor’s autumn statement and spending review will detail £20bn of cuts to Whitehall budgets and £12bn to welfare. Police chiefs are bracing for cuts of up to 25% and have warned the attacks in Paris should force the chancellor to think again.
Thomas Cook has made its first annual profit for five years, reports the Financial Times. Buoyant European consumers helped its pre-tax profit in the year to September 30 improve to £19m. This is a significant turnaround in fortunes for the group which suffered a £115m loss during the previous 12 months. Having come close to collapse in 2011, the group not been profitable on a pre-tax level since 2010.
Shell has won the backing of Qataris for its BG takeover, notes The Times. Sovereign wealth fund the Qatar Investment Authority, which holds a stake of up to 2% in the Anglo-Dutch group and is a shareholder in BG, is reported to be “fully supportive” of the proposed transaction, which was announced in April. The deal is awaiting clearance from Chinese and Australian officials.
Rolls-Royce’s new boss has warned that senior job losses will form part of £200m in annual cost cuts. Warren East, joined the company in July, said another succession of profit warnings was possible, as he set out plans to revive the engine-maker. The company was at a “turning point” but there were “things that are wrong and need fixing,” he said. This would include “streamlining senior management”.
FTSE-100: down -0.45 to 6277.23
Dow Jones: up +0.11 to 17812.19
Dax: down -0.25 to 10933.99
Cac-40: down -1.41 to 4820/28
Nikkei: down -0.39 to 19847.58
Hang Seng: down -0.25 to 22531.95
US dollar: buys €0.93730 and £0.66210
Sterling: buys $1.50990 and €1.41560
Oil: $45.97 up +2.5