(Alliance News) - Stocks in London are called to open higher on Wednesday, as Labour prepares to debut key policy focuses in its first King's Speech.
Speaking ahead of Wednesday's State Opening of Parliament, Prime Minister Keir Starmer said: "Now is the time to take the brakes off Britain. For too long people have been held back, their paths determined by where they came from, not their talents and hard work."
With more than 35 bills expected, Wednesday's speech will be one of the chunkiest in recent history, second only to 2022 when the government put forward 38 bills including several that were carried over from the previous year.
One of the measures expected in Wednesday's speech is a commitment to major planning reform to address what Labour sees as a major block to building both houses and vital national infrastructure.
In early corporate news, HSBC named current Chief Financial Officer Georges Elhedery as its new chief executive, starting 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 0.1% at 8,176.90
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Hang Seng: up 5.37 points at 17,731.32
Nikkei 225: closed down 0.4% at 41,097.69
S&P/ASX 200: closed up 0.6% at 5,667.20
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DJIA: closed up 742.76 points, or 1.9%, at 40,954.48
S&P 500: closed up 35.98 points, or 0.6%, at 5,667.20
Nasdaq Composite: closed up 36.77 points, or 0.2%, at 18,509.34
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EUR: up at USD1.0902 (USD1.0884)
GBP: up at USD1.2983 ( USD1.2957)
USD: down at JPY157.91(JPY158.57)
Gold: up at USD2,466.00 per ounce (USD2,463.64)
(Brent): down at USD83.49 a barrel (USD83.89)
(changes since previous London equities close)
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ECONOMICS
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Wednesday's key economic events still to come:
11:00 CEST eurozone CPI
08:30 EDT US building permits
09:15 EDT US industrial production
10:30 EDT US EIA crude oil stocks
09:35 EDT US Federal Reserve Governor Christopher Waller speaks
14:00 EDT US Fed's Beige Book
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The UK consumer price inflation remained at the Bank of England's target after nearly three years of loftier readings, numbers on Wednesday showed. According to the Office for National Statistics, the rate of yearly consumer price growth was unchanged at 2.0% in June. The same rate was registered in May, fading from 2.3% in April. The reading was in-line with the FXStreet-cited consensus. On a monthly basis, consumer prices grew 0.1% in June, compared to 0.3% in May. Meanwhile, separate data showed UK producer prices declined at a slower pace on-year last month than they did in May. Producer input prices declined 0.4% annually in June, the decline easing from a revised fall of 0.7% in May. On a monthly basis, producer input prices declined 0.8% in June, following a revised fall of 0.6% in May.
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Labour will "take the brakes off Britain" when it unveils its first King's Speech on Wednesday, Keir Starmer has said. The new government is set to present a "packed" legislative agenda focused on improving living standards by driving economic growth, the first of the UK prime minister's five "missions for national renewal". The address – the first Speech from the Throne under a Labour government for 14 years – is expected to contain more than 35 bills and draft bills with an emphasis on improving transport, creating jobs and accelerating the building of houses and infrastructure as Labour seeks to escape Britain's recent cycle of low growth.
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The German Cabinet is set to approve its long-contested 2025 budget on Wednesday, after weeks of wrangling over finances, reported DPA. The draft, negotiated by the coalition leaders - Chancellor Olaf Scholz of the Social Democratic Party, Economy Minister Robert Habeck of the Greens, and Finance Minister Christian Lindner of the pro-business Free Democratic Party - calls for a total budget of EUR480.6 billion - slightly less than this year. Lindner is planning new loans totalling EUR43.8 billion, the maximum allowed by Germany's strict rules against ordinary budget deficits, known as the debt brake, which is enshrined in the country's constitution. The Cabinet is also expected to approve a supplementary budget for the current year. The coalition plans to take on around EUR11 billion in additional debt. The debt brake will nevertheless be adhered to, as it allows the federal government to take on higher loans due to the weaker economy.
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As Republicans approved their policy platform at the party's national convention, a more radical shadow manifesto led by figures close to Donald Trump has raised fears for the future of American democracy. Project 2025 has been characterised by opponents as an authoritarian, right-wing wish list. Its 887-page "Mandate for Leadership" sets out how to replace thousands of federal workers with ultra-conservative loyalists should Trump prevail against Democratic President Joe Biden in November. It calls for a makeover of almost every function of the federal government, reshaping its numerous agencies to centralise power in the White House and push policy to the right on everything from abortion to immigration. "We are in the process of the second American Revolution, which will remain bloodless if the Left allows it to be," Heritage Foundation president Kevin Roberts said in early July, adding: "We're in the process of taking this country back."
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BROKER RATING CHANGES
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Royal Bank of Canada cuts Legal & General to 'sector perform' (outperform) - price target 245 (295) pence
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Berenberg raises IntegraFin price target to 400 (390) pence - 'buy'
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Jefferies raises Wise price target to 986 (872) pence - 'buy'
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COMPANIES - FTSE 100
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HSBC Holdings' Chief Financial Officer Georges Elhedery will take over as chief executive in September, the bank has announced. Elhedery will succeed Noel Quinn in the role after Quinn announced his retirement from the bank in April. Elhedery joined HSBC in 2005 and was appointed to the board and as chief financial officer in January 2023. He succeeds Quinn, who announced his retirement from the bank unexpectedly after an "intense" five years in the role. HSBC Chair Mark Tucker says: "I am delighted to confirm Georges as the next HSBC group chief executive. He is an exceptional leader and banker who cares passionately about the bank, our customers, and our people. He has a track record of leading through change, driving growth, delivering simplification, containing costs and brings a strong focus on execution."
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COMPANIES - FTSE 250
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Mitie Group has bought ESM Power, an electrical engineering business specialising in grid and power connections, for a maximum consideration of GBP8.5 million. This is comprised of an initial payment of GBP5.5 million, and performance-linked deferred payments of up to GBP3 million over two years. Completion is expected on July 31. Managing Director Mark Caskey says: "We are delighted that the ESM Power team will be joining Mitie. This acquisition strengthens our position as a leading provider of power connections in the UK, offering our customers a comprehensive range of design, delivery and maintenance capabilities to support their decarbonisation and asset resilience objectives."
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By Holly Beveridge, Alliance News senior reporter
Comments and questions to newsroom@alliancenews.com
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