23rd Aug 2024 07:47
(Alliance News) - Stocks are called to open higher on Friday, amid news that Ofgem is increasing is price cap and households are set to see higher bills over winter.
The average household energy bill in England, Scotland and Wales is to increase by 9.5% from October after Ofgem said it was increasing its price cap as households approach the winter months.
Eyes remained on the Jackson Hole symposium, where the market will hear from central bankers including US Federal Reserve Chair Jerome Powell.
Investors will hoping Powell signals an interest rate cut will occur at the Fed's next meeting in September.
Here is what you need to know at the London market open:
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MARKETS
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FTSE 100: called up 0.4% at 8,321.60
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Hang Seng: down 0.4% at 17,566.50
Nikkei 225: closed up 0.4% at 38,364.27
S&P/ASX 200: closed down slightly at 8,023.90
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DJIA: closed down 177.71 points, 0.4%, at 40,712.78
S&P 500: closed down 0.9% at 5,570.64
Nasdaq Composite: closed down 1.7% to 17,619.35
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EUR: up at USD1.1123 (USD1.1110)
GBP: up at USD1.3112 (USD1.3091)
USD: down at JPY145.52 (JPY146.08)
GOLD: up at USD2,494.20 per ounce (USD2,478.64)
OIL (Brent): down at USD77.22 a barrel (USD77.38)
(changes since previous London equities close)
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ECONOMICS
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Friday's key economic events still to come:
16:00 BST UK Bank of England Governor Andrew Bailey speaks
08:30 EDT US building permits
10:00 EDT US new home sales
US Jackson Hole Economic Policy Symposium
10:00 EDT US Federal Reserve Chair Jerome Powell speaks
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The average household energy bill is to increase by 9.5% from October after Ofgem said it was increasing its price cap as households approach the winter months. The regulator announced it is hiking its price cap from the current GBP1,568 a year for a typical household in England, Scotland and Wales to GBP1,717, adding around GBP12 a month to an average bill. However, it is around GBP117 cheaper than the cap in October last year, which was set at GBP1,834. Ofgem said rising prices in the international energy market, due to heightened political tensions and extreme weather events, was the main driver behind the decision. Jonathan Brearley, the chief executive of Ofgem, said: "We know that this rise in the price cap is going to be extremely difficult for many households. Anyone who is struggling to pay their bill should make sure they have access to all the benefits they are entitled to, particularly pension credit, and contact their energy company for further help and support."
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As red, white and blue balloons streamed onto a Chicago stage and people danced in the aisles, Kamala Harris waved to supporters and basked in the crowd's adulation after the speech of her political life. As she accepted her party's nomination in the US presidential race on Thursday, nearly every sentence Harris uttered was greeted with raucous cheers, her voice reverberating around the packed auditorium. Thirteen of those words, delivered early in the speech, electrified the house: "I accept your nomination to be president of the US of America." The Democratic Party has leaned hard on saying the convention was meant to be about bringing the "joy," and attendees seemed to respond to the call.
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Harris pledged Thursday to get a Gaza ceasefire and said as US president she would stand with Ukraine and not "cozy up" to dictators like her Republican opponent Donald Trump. "Now is the time to get a hostage deal and a ceasefire deal done," the vice president told supporters at the Democratic National Convention as she accepted the party's presidential nomination. Harris said that she and President Joe Biden "are working to end this war such that Israel is secure, the hostages are released, the suffering in Gaza ends and the Palestinian people can realize their right to dignity, security, freedom and self-determination." US support for its ally Israel in the conflict against Hamas in Gaza has become one of the most divisive issues in the Democratic Party, and at times has threatened to overshadow the party's attempt to unite against Trump.
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Japan's consumer prices remained flat on-year in July, internal affairs ministry data showed Friday. The country's consumer price inflation rate remained at 2.8% in July, unchanged from June. Japanese core inflation was slightly higher in July, with prices rising 2.7% on-year compared with 2.6% the month before. The core Consumer Price Index reading, which excludes volatile fresh food prices, was in line with market expectations. Increases in the cost of electricity and gas, processed food and car insurance premiums were among the areas contributing to the uptick, the ministry said in a statement. While price increases at the petrol pump slowed, that was offset by rising electricity and natural gas fees, the ministry added.
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BROKER RATING CHANGES
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Berenberg starts Smiths Group with 'hold' - price target 1,850 pence
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RBC raises Barratt Developments target to 575 (550) pence - 'sector perform'
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RBC raises Mobico Group price target to 70 (65) pence - 'sector perform'
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COMPANIES - FTSE 250
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Hiscox named Senior Independent Director Colin Keogh as interim chair. The Bermuda-based insurer announced the news following the death of Jonathan Bloomer earlier this week. Bloomer and his wife Judy died in Monday's sinking of the Bayesian yacht off the coast of Sicily. On Thursday, Chief Executive Officer Aki Hussain said: "We are deeply shocked and saddened by Jonathan and Judy's tragic deaths. Our deepest sympathies go out to their family and friends at this devastating time... His deep experience across our industry and in the broader business arena, combined with his personal values, made him both an excellent chair and a person I was proud to know and work with."
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Direct Line Insurance said during its half year results preparation, a miscalculation has been identified within the company's audited Solvency II own funds for the year ended 2023. This miscalculation arose in the Solvency II treatment of the whole account quota share reinsurance arrangement, and in particular the translation of the reinsurance debtors between IFRS and Solvency II own funds. This miscalculation has no impact on the IFRS figures, it noted. Correcting for the miscalculation, the solvency capital ratio at year end 2023 was 188%, which was above the Direct Line's risk appetite range of 140% to 180%. The previously reported solvency capital ratio was 197%. "The group has taken action to strengthen the control environment in relation to the specific area where the miscalculation occurred," Direct Line said.
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OTHER COMPANIES
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MOH Nippon, which just started trading in London on Monday, said loss from operations narrowed to GBP162,660 in the year ended April 30 from GBP248,175 a year earlier. Pretax loss narrowed to GBP213,398 from GBP248,175. During the year, the company has signed a conditional term sheet to acquire, via reverse takeover, a Japan-based crowdfunding services platform, Minnadeooyasan-Hanbai Co. Non-Executive Chair Aamir Quraishi said: "As a special purpose acquisition company, we were delighted to succeed during the year in identifying, in MOH, an excellent target for acquisition and to enter an agreement where the offer price represented a 25% premium to our prevailing share price. With the acquisition having completed post year end, we are excited to embark on this new phase and we are now working to execute the company's growth strategy, leveraging the board's considerable experience and networks to develop the existing business and explore significant opportunities in cold-chain logistics." MOH Nippon is the first Japanese company to trade in London since 2000.
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Ofwat confirmed actions for Thames Water, in order to remedy its licence breach in losing its investment grade credit ratings. This follows a public consultation and includes four elements. It includes the appointment of an independent monitor to report on the company's progress, including against its transformation plan; developing and delivering a suitable operational business plan to achieve turnaround; taking the steps required to deliver an equity raise; and new non-executive director board appointments. Ofwat noted that these commitments will remain in place until the company regains two investment grade credit ratings.
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By Sophie Rose, Alliance News senior reporter
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