Wealth Management news
Investment market update
Early Trading
UK stocks are expected to open lower this morning following declines in US and Asian markets overnight.
World Markets
UK stocks climbed 0.5% to 5,960 points. BP shares topped the risers, adding almost 4% after crude oil prices stabilised above $30 a barrel, but Shell fell 0.4%. Shares in Sainsbury’s fell 1.4% after it reported a fall in sales over the Christmas quarter.
Most Asian stocks finished lower following a decline in US stocks, however Chinese stocks gained 0.8% reversing an earlier fall of 2.8%. Shares of Samsung Electronics were down 1.1%, despite the tech giant announcing that it would mass-produce Qualcomm’s Snapdragon 820 mobile processors – a big win for its manufacturing business.
US stocks fell after early gains. Microsoft ended the day down 2.2%, having earlier risen 2% after analysts at Morgan Stanley upgraded the stock. Shares in General Motors climbed 0.6% after it raised the size of its share buyback scheme by 80% to $9bn, increased its dividend and raised its profit outlook for 2016.
Headlines
Home Retail Group, which is being pursued by supermarket chain J Sainsbury, is in advanced talks to sell its DIY chain Homebase to one of Australia’s biggest companies for £340m cash. Home Retail said that if the sale is completed it plans to return £200m to shareholders. It also plans to use £75m from a sale for restructuring and deal costs, and £50m would go to the group’s pension scheme.
Anheuser-Busch InBev has pulled in more than $110bn of demand for an upsized $46bn bond deal. AB InBev initially set out to raise $25bn but increased the deal more than 80% to $46bn following heavy demand. The brewer’s offering will help fund its takeover of rival SABMiller.
Energy groups have shelved nearly $400bn of spending on new oil and gas projects since the crude price collapse, pushing back millions of barrels a day in future output from areas including the Gulf of Mexico, Africa and Kazakhstan. Such developments have been hit hardest because of their high break-even prices and heavy upfront capital needs.
Tesco Plc reported a surprise gain in Christmas sales as the UK’s largest grocer fought to resist falling food prices and the advances of discount competitors. UK same-store sales rose 1.3% in the six weeks ended Jan 9.