Companies, Markets and Finance
Company news, markets and financial talking points, available from 8am Monday to Friday
The Bank of England will raise interest rates despite external threats to the UK economy, Mark Carney has told MPs. The governor said the MPC’s “next move in policy is going to be an increase” to Bank Rate, after it agreed to disregard poor conditions elsewhere. “The discussions we’ve been having as a committee have been about the pace, timing and degree of tightening,” said Carney.
The US economy was stronger in the third quarter of the year than first estimated, reports The Guardian. Thanks to a surge in business and consumer spending, the economy enjoyed an annual growth rate of 3.9% between July and September – higher than the previous 3.5% estimate. The news indicates that the world’s largest economy bounced back from a shock contraction at the beginning of 2014.
Apple’s market capitalisation reached a record-breaking $700bn yesterday, reports the Financial Times. Robust iPhone sales and anticipation of new products has powered the tech giant’s shares to more than double the point at which Tim Cook took the reigns. Its market value also stands far ahead of Microsoft and Google, both of which are currently valued below $400bn
It will take a generation to completely reform the “toxic” culture of UK banks, says a new study. Cass Business School and new financial services think-tank New City Agenda found that while banks had made some progress following a "litany of scandals", complaints are continuing to rise. Lenders have received 20.8m complaints since the financial crisis.
“I still think we should buy them. He is on your schedule for Dec 15 or 16 - we will need to sell him.” A tweet, seemingly intended as a private DM, from new Twitter chief executive raises speculation the firm is to buy the Justin Bieber Shots app.
Mortgage lending has fallen as the house market begins to cool, says Nationwide. The building society says its net mortgage lending, which takes account of loans being repaid, fell by £2bn to £3.6bn in the six months to the end of September, while gross mortgage lending dropped £1bn to £12bn. This reduced its market share from 15.4% to 12%. Banks including Santander and Lloyds are returning to lending.
FTSE-100: up +0.02 to 6731.14
Dow Jones: down -0.02 to 17814.94
Dax: up +0.77 to 9861.21
Cac-40: up +0.32 to 4382.31
Nikkei: down -0.14 to 17383.58
Hang Seng: up +1.17 to 24122.58
US dollar: buys €0.80200 and £0.63670
Sterling: buys $1.57060 and €1.25980
Oil: $78.05 down -2.1