(Alliance News) - London's FTSE 100 is called to open a touch higher at the start of the week, while the dollar lost some ground, following Donald Trump's pick to lead the US Treasury.
"The appointment of Scott Bessent as Treasury Secretary is seen as a market-friendly move, with investors interpreting it as a sign that President-elect Trump might adopt a more measured approach to tariffs and fiscal policy. Bessent's influence is expected to bring nuanced economic strategies to the forefront, potentially easing concerns over abrupt policy shifts," SPI Asset Management analyst Stephen Innes commented.
"Equities and Treasuries bounced, and the dollar took a gentle dip, all in response to the appointment, which for today is being heralded as a masterstroke, hopefully promising a new era of stability and sagacity in a Trump Whitehouse."
Attention then turns to US data as an abbreviated trading week across the Atlantic progresses. The personal consumption expenditures inflation gauge is released on Wednesday, as it the latest initial jobless claims reading. Before that, there are Federal Reserve meeting minutes on Tuesday.
US markets are closed on Thursday for Thanksgiving. They re-open for a shorter trading day on Friday.
In early UK corporate news, miner Anglo American and fish farming company Benchmark Holdings announced disposals. DIY retail chain operator Kingfisher trimmed the top of its profit outlook range, as sales last month were hurt by pre-budget caution on both sides of the English Channel.
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 8,271.98
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Hang Seng: down 0.4% at 19,160.91
Nikkei 225: up 1.3% at 38,780.14
S&P/ASX 200: up 0.3% at 8,417.60
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DJIA: closed up 426.16 points, 1.0%, at 44,296.51
S&P 500: closed up 0.4% at 5,969.34
Nasdaq Composite: closed up 0.2% at 19,003.65
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EUR: higher at USD1.0470 (USD1.0394)
GBP: higher at USD1.2588 (USD1.2511)
USD: lower at JPY154.28 (JPY154.87)
GOLD: lower at USD2,667.24 per ounce (USD2,703.04)
(Brent): higher at USD74.53 a barrel (USD74.46)
(changes since previous London equities close)
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ECONOMICS
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Monday's key economic events still to come:
09:00 GMT UK Bank of England Deputy Governor Clare Lombardelli speaks
10:30 GMT UK Bank of England Monetary Policy Committee member Swati Dhingra speaks
13:30 GMT US Chicago Fed national activity index
15:30 GMT US Dallas Fed manufacturing index
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Seasonal work in the run-up to Christmas has boosted the jobs market in the UK in recent weeks, according to new research. Around 23,000 Christmas jobs are on offer in sectors including retail, catering, hospitality and construction, said jobs site Adzuna. The total number of vacancies fell slightly in October and at a much lower rate than earlier this year, said the report. Average advertised pay has increased for five months in a row to over GBP39,000, while there are two jobseekers for every vacancy, according to Adzuna. It added that for the first time in more than a year, sales assistants were the most in-demand job on Adzuna's site, taking over from warehouse work. There is also a strong demand for social care workers. Andrew Hunter of Adzuna said there had been a "challenging" start to the year for job vacancies. "The second half of the year has shown signs of recovery and resilience. This October, we saw the first positive six-month change in vacancy numbers. "Driven by preparations for the busy Christmas shopping season, sectors like trade and construction and retail are ramping up hiring."
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Manufacturers are set to increase their level of investment in artificial intelligence in the next year, research in the UK suggests. Make UK said its study found that AI is increasingly being used across manufacturing, with benefits including increased efficiency and productivity. One in four of the 150 companies surveyed said they were using AI as part of their efforts to decarbonise, such as by reducing waste and emissions. Nina Gryf of Make UK, said: "AI and automation are driving dramatic change in speeding up manufacturing processes and elsewhere in companies. "Their potential to drive economic growth and reshape industries is becoming increasingly clear, and the manufacturing sector and its factories of the future have a central role to play. "While the uptake of such technologies is increasing, the UK needs a step change in the use of automation otherwise it risks missing out on vital transformative productivity gains."
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Russia is prepared to launch a series of cyber attacks on Britain and other Nato members as it seeks to weaken support for Ukraine, a senior Cabinet minister will warn in a major speech this week. Moscow will "not think twice" about exploiting defence gaps to target UK businesses, and allies must "not underestimate" the threat it poses, Chancellor of the Duchy of Lancaster Pat McFadden will say. McFadden will also warn that cyber interference enables Russia to "turn the lights off for millions of people" and represents the "hidden war" it is waging against Kyiv, as first reported by the Sunday Telegraph. In a speech to the Nato Cyber Defence Conference at Lancaster House, the minister is expected to say: "Military hard-power is one thing. But cyber war can be destabilising and debilitating. With a cyber attack, Russia can turn the lights off for millions of people. It can shut down the power grids. This is the hidden war Russia is waging with Ukraine." He will add: "Given the scale of that hostility, my message to members today is clear: no one should underestimate the Russian cyber threat to Nato. The threat is real. Russia is exceptionally aggressive and reckless in the cyber realm."
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BROKER RATING CHANGES
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Jefferies raises Barratt Redrow to 'buy' - price target 507 pence
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Morgan Stanley raises 3i Group to 'overweight; - price target 4,069 pence
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COMPANIES - FTSE 100
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Anglo American said it has struck a deal to sell its remaining steelmaking coal portfolio, netting USD3.78 billion. The miner said it will sell the business to Peabody Energy. Coupled with the USD1.1 billion sale of its roughly 33% stake in the Jellinbah is a joint venture, it expects to net about USD4.9 billion from the disposal of its steelmaking coal business. The portfolio being sold to Peabody consists of coal mines in Australia. Peabody is to pay USD2.05 billion in upfront cash. There is a USD725 million deferred cash consideration and the potential for up to USD550 million in a price-linked earnout. In addition, there is another possible USD450 million cash portion hinging on the reopening of the Grosvenor mine. Anglo American suspended output at the Queensland asset in June "following an underground coal gas ignition incident". Chief Executive Duncan Wanblad said: "The sale of our steelmaking coal business is another important step towards delivering the strategy that we set out in May to create a world class copper, premium iron ore and crop nutrients business." The CEO added: "All the transactions to deliver our portfolio transformation are well in train - the demerger of Anglo American Platinum is expected by mid-2025 and we have seen strong interest in our nickel business with the sale process well progressed. We expect De Beers to follow, recognising its unmatched industry and brand position and good progress in working with stakeholders to position the business for long term success as we work toward separation for value. We are well progressed with the delivery of USD1 billion of cost savings and have detailed plans in place to deliver at least an additional USD800 million in pre-tax recurring cost benefits on a run-rate basis from the end of 2025 as we progress the portfolio transformation."
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B&Q and Screwfix owner Kingfisher trimmed the top end of its profit guidance range, as it grappled with a "weak market and consumer in the UK and France" last month. Kingfisher said sales in the third-quarter ended October 31 fell 0.6% on-year to GBP3.22 billion. On a like-for-like basis at constant currency, they were 1.1% lower. It reported "solid underlying trading in August and September" but tougher conditions in both the UK and France in October, "impacted by uncertainty related to government budgets in both countries". Nonetheless, sales were in line or ahead of the market "for all our key banners". UK & Ireland sales rose 1.2% on-year on a reported basis during the third-quarter, and were 0.4% on a like-for-like, constant currency basis. France sales fell 6.4% on a reported basis and 4.3% like-for-like. In France, Kingfisher owns the Castorama and Brico Depot brands. CEO Thierry Garnier said: "All our banners in the UK, France and Poland performed in line or ahead of their respective markets, with particularly strong market share gains at Screwfix. We continued to see improved volume trends in our core categories, supported by repairs, maintenance and existing home renovation. As expected, sales of our 'big-ticket' categories remained soft, although we are seeing early signs of improvement." In the three weeks to November 23, the early weeks of its final-quarter, like-for-like sales are down 0.5% on-year, though this is an "improvement versus the exit rate" of the third-quarter. Looking to full-year, Kingfisher now expects adjusted pretax profit of GBP510 million to GBP540 million, the top end of the range clipped from GBP550 million, a decline of up to 10% from GBP568 million. The CEO added: "Looking towards next year, recent political and macroeconomic developments have layered incremental uncertainty onto the near-term outlook in our markets. And so we continue to focus our energy on what we can control - delivering further market share gains through our key strategic priorities, and managing our retail prices, costs and cash effectively."
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COMPANIES - FTSE 250
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ITV's boss has been mulling with advisers a possible separation of a unit, Sky News reported on Saturday, while possible bidders are in early talks about teaming for a tilt at buying all or parts of the FTSE 250 listing. Sky, citing television industry sources, reported that CVC Capital Partners and a "major European broadcaster" are among those that are mulling over the merits of making a bid to acquire ITV. The European broadcaster is believed to be Television Francaise SA, which operates the TF1 TV channel in France. Sky News sources also stated that All3Media and Mediawan are possible suitors for the ITV Studios production arm. Mediawan is a production company but also distributes third-party and in-house content. Sky News, citing one source, said that work on bids are not yet advanced enough to require a disclosure under UK stock market rules. Sky News also reported that ITV Chief Executive Officer Carolyn McCall has spoken to the company's financial advisers about a possible demerger or form of separation of its two main business units.
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OTHER COMPANIES
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Benchmark Holdings said it has struck a deal to sell its genetics business for GBP260 million. The sale of the unit, whose services include breeding programmes in the aquaculture market, means the fish farming technology company can focus on its Advanced Nutrition and Health units. The genetics business has been sold to Novo Holdings, an investment entity responsible for managing the assets and the wealth of the Novo Nordisk Foundation. Novo Holdings is the controlling shareholder of Bagsvaerd, Denmark-based drugmaker Novo Nordisk, Benchmark noted. Novo Holdings will pay GBP230 million upfront, and there is a GBP30 million additional contingent consideration. Benchmark CEO Trond Williksen said: "I am pleased to announce this agreement to sell our genetics business to Novo Holdings. The transaction will unlock significant value and enable us to return capital to shareholders." The proceeds will "reduce leverage and return capital to shareholders".
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Hummingbird Resources said its Kouroussa gold mine in Guinea has reached commercial production. The asset's four-week trailing average production has increased to around 1,900 ounces, with an average selling price during that stretch of USD2,473 per ounce. That is below the spot gold price due to an existing hedging contract due to conclude before the end of the first-quarter. "This four-week trailing average production figure is below the previously announced target of approximately 2,000-2,500 oz per week primarily due to a lower-than-expected mill feed grade, resulting from a shortage of high-grade ex-pit ore caused by ongoing mining capacity constraints. However, during this period, all major equipment has proven capable of operating at or above design levels on a consistent basis, demonstrating Kouroussa's ability to sustain commercial operations," Hummingbird added. "With commercial production now achieved, Hummingbird remains focused on improving mining operations performance, plant throughput and feed-grade to reach steady-state production in the coming months." Kouroussa is expected to produce at an average of 100,000 ounces per year of its six-year mine life.
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By Eric Cunha, Alliance News news editor
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