(Alliance News) - Rishi Sunak is set on Tuesday to launch his bid to become UK prime minister with a pledge to cut taxes – but only once inflation has been brought back under control.
At his campaign launch event on Tuesday, the former chancellor will insist he has a plan to deal with the economic "headwinds" the country is facing, saying it is a matter of "when" not "if" the tax burden starts to fall, PA reports.
He will receive heavyweight support from another ex-chancellor, Lord Lamont, who said Sunak had the courage to take the "tough decisions" needed to deal the "extremely serious" economic situation.
Meanwhile, former foreign secretary Jeremy Hunt is promising to increase defence spending while his fellow contender Tom Tugendhat will set out more details of his economic approach.
Nominations for the election open and close on Tuesday, with candidates requiring the support of 20 fellow MPs to make it onto the ballot – a hurdle some of the 11 hoping to stand may struggle to overcome.
Here is what you need to know at the London market open:
----------
MARKETS
----------
FTSE 100: down 0.4% at 7,168.63
----------
Hang Seng: down 1.2% at 20,882.06
Nikkei 225: closed down 1.8% at 26,336.66
S&P/ASX 200: closed up 0.1% at 6,606.30
----------
DJIA: closed down 164.31 points, or 0.5%, at 31,173.84
S&P 500: closed down 44.95 points, or 1.2%, at 3,854.43
Nasdaq Composite: closed down 262.71 points, or 2.3%, at 11,372.60
----------
EUR: down at USD1.0037 (USD1.0087)
GBP: down at USD1.1870 (USD1.1898)
USD: down at JPY135.45 (JPY137.31)
Gold: down at USD1,733.55 per ounce (USD1,738.10)
Oil (Brent): down at USD105.25 a barrel (USD106.35)
(changes since previous London equities close)
----------
ECONOMICS AND GENERAL
----------
Tuesday's key economic events still to come
1100 CEST Germany ZEW indicator of economic sentiment
1800 BST UK BoE Governor Andrew Bailey speaks at OMFIF event
1630 EDT US API weekly statistical bulletin
----------
The Irish government will face a confidence vote later Tuesday as main opposition party Sinn Fein presses to secure an early general election. The administration in Dublin is confident it has the numbers to win this evening's vote in the Dail. Sinn Fein tabled a motion of no confidence after the Fianna Fail, Fine Gael and Green Party coalition lost its parliamentary majority last week. Fine Gael TD Joe McHugh's decision to relinquish his party whip last week left the government with 79 seats in the Dail – one short of a majority. However, the coalition is confident that McHugh and several other TDs outside of the government will still back the coalition in the vote.
----------
Customers of rural Chinese banks whose withdrawals have been frozen will begin to get some money back Friday, regulators said, after depositors clashed with authorities at a rare protest over the weekend. China's rural banking sector has been hit hard by Beijing's efforts to rein in a property bubble and spiralling debt, in a financial crackdown that has had ripple effects across the world's second-largest economy. Four banks in Henan province froze cash withdrawals in mid-April in the face of regulatory scrutiny into alleged mismanagement, leaving thousands of savers without funds and sparking sporadic demonstrations. In one of the largest such rallies, hundreds gathered Sunday outside a branch of the People's Bank of China in Henan's capital Zhengzhou demanding their money.
----------
Family and friends of assassinated former prime minister Shinzo Abe gathered at a Tokyo temple Tuesday for a private funeral, as mourners outside condemned the leader's "despicable" murder. Abe was shot at close range on Friday while giving a campaign speech in the city of Nara, days ahead of upper house elections that saw his ruling party strengthen its hold on power. The murder suspect, 41-year-old Tetsuya Yamagami, is in custody and has told police he targeted Abe because he believed the politician was linked to an organisation he resented. Although the funeral rites were for family members and close associates only, long lines of people, some dressed in black, came to the Zojoji temple to pay respects to Japan's longest-serving prime minister.
----------
BROKER RATING CHANGES
----------
RBC cuts British Land to 'underperform' (sector perform) - price target 375 (475) pence
----------
RBC cuts Land Securities to 'sector perform' (outperform) - price target 675 (950) pence
----------
Goldman Sachs cuts Great Portland Estates to 'neutral' (buy) - price target 600 (660) pence
----------
COMPANIES - FTSE 100
----------
United Utilities said it has agreed to sell its non-appointed renewable energy business, United Utilities Renewable Energy, to FTSE 250-listed SDCL Energy Efficiency Income Trust for an enterprise value of GBP100 million. United Utilities said it has developed a portfolio of solar, wind and hydro renewable assets since 2014 and noted the UURE unit comprises 69 megawatts of renewable generation assets across 70 sites. Following the sale, the assets will continue to provide long-term green energy to its regulated water & wastewater business, United Utilities Water. Further, United Utilities said the sale allows it to recycle the capital employed in the UURE business back into the next phase of the group's path to net-zero carbon emissions.
----------
COMPANIES - FTSE 250
----------
Trading platform Plus500 said it delivered a strong operational performance during the first half of 2022, supported by its ability to "attract and retain" higher-value customers, despite lower trading volumes across financial markets during the period. For the six months to June 30, revenue was USD511.4 million, up 48% from USD346.2 million last year. Earnings before interest, tax, depreciation and amortisation was USD305.3 million, up 63% from USD187.6 million. Ebitda margin was 60% in the first half, up from 54% a year before. Plus500 added 57,275 new customers during the first half, up from 136,980 customers a year before. However, active customers were 216,928, down from 333,940. Looking ahead, Plus500 said it remains "highly confident" about the performance for 2022, and anticipates that revenue and Ebitda for the current year will be ahead of current market expectations.
----------
Softcat has promoted Chief Financial Officer Graham Charlton to CEO with effect from August 1, 2023. Charlton has been CFO at Softcat for the past eight years, and the company believes he is "the right person to lead the business successfully through the next stage of its growth". Charlton will replace Graeme Watt as CEO who will, in turn, succeed Martin Hellawell as non-executive chair. Hellawell will step down from the role and board upon Watt's succession. Softcat also said a search for a CFO to succeed Charlton has commenced, and it will consider external as well as internal candidates.
----------
COMPANIES - SMALL CAP
----------
Anglo Pacific Group has stuck an agreement to buy a portfolio of mining royalties from South32. Anglo Pacific will pay a fixed amount of USD185 million, plus contingent consideration of up to USD15 million. The fixed amount will include USD47.6 million in initial cash, followed by quarterly cash payments totalling USD55 million. Anglo Pacific also will issue shares worth USD82.4 million, making South32 a 16.9% shareholder. The royalties are over copper and nickel projects, including the West Musgrave project in Western Australia and Santo Domingo in Chile.
----------
Tuesday's shareholder meetings
British Land Co PLC - AGM
BSF Enterprise PLC - AGM
Burberry Group PLC - AGM
Capital Gearing Trust PLC - AGM
Kazera Global PLC - AGM
Sanderson Design Group PLC - AGM
tinyBuild Inc - AGM
Wincanton PLC - AGM
----------
By Tom Waite; thomaslwaite@alliancenews.com
Copyright 2022 Alliance News Limited. All Rights Reserved.
