Good morning. Yesterday Europe’s cross-continental STOXX 600 index closed at its highest level of the year, following a strong performances across several indices. The FTSE 100, however, failed to hold off the pressure from several heavy sinkers, closing the day down 0.24pc.
5 things to start your day
1) Revolut shocks rivals with plan to hire 3,500 new employees and expand worldwide: While rival digital banks have spent years tweaking their products and corporate culture before launching overseas, Revolut seems to have focused on one main objective: growth.
2) Are falling house prices a sign Boris Johnson should be wary of a general election? For the country at large, the prospect of a third general election in four years is up there on the joy list with a lengthy session of root canal surgery. But Boris Johnson wants one, and he’ll probably get it before long. Should he be careful what he wishes for?
3) Investors are getting twitchy about Elizabeth Warren making it to the White House: The Massachusetts Senator is not only rapidly eclipsing Sanders on the party’s left flank, but moving in on Joe Biden – taking the lead in one poll and slashing his once insurmountable lead in several others.
4) Plans to radically hike the minimum wage could force businesses to go bust and hit jobs for young workers, industry groups have warned. Sajid Javid, the Chancellor, launched plans to hike the minimum wage from £8.21 now to £10.50 over the next five years.
5) Neil Woodford’s troubled Patient Capital Trust isscrambling to extend a lifeline from its lender after plunging to a £232m loss. Patient Capital is locked in talks with US bank Northern Trust over extending a loan agreement which it has used to borrow £111m for investing in stocks, and is considering axing Mr Woodford as manager.
What happened overnight
Asian share prices ticked up on Tuesday as some investors clung to hopes that the fourth quarter will bring progress in resolving the United-States trade war that’s cast a shadow over the global economy.
Japan’s Nikkei rose 0.74pc while MSCI’s broadest index of Asia-Pacific shares outside Japan inched up 0.24pc and Australia’s benchmark by 0.25pc.
Chinese markets will be shut for a week, starting on Tuesday, to mark 70 years since the founding of the People’s Republic of China.
US stock futures rose 0.35pc in Asia, a day after the S&P 500 gained 0.5pc.
Meanwhile, Australia’s central bank lowered the cost of borrowing, slashing interest rates for the third time this year amid fears about the flagging domestic economy.
The Reserve Bank of Australia announced it had cut rates by another 25 basis points to 0.75pc, a decision that brings the country’s interest rates to a historic new low.
Coming up today
Greggs has suffered from performing too well recently: judging by some analysts’ reports, and the share price reaction to its latest results, there’s a sense that the FTSE 250 bakery chain’s increasing swagger is priced into its shares. Not so, said UBS analysts last month, saying the company – whose vegan sausage roll become a blockbuster hit – “is well positioned to drive like-for-like growth given slowing competitor openings, increased investment in strategic initiatives announced with first-half results, and leading value perception”.
Full-year results: Ferguson, James Halstead, Revolution Bars Group, SCS Group
Interim results: Next Fifteen Communications
Trading statement: Greggs, Renew Holdings