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(Alliance News) - Japanese car maker Nissan Motor is to build a new electric model and huge battery plant in the UK in a massive boost to the automotive industry, PA reports Thursday.
More than 1,600 jobs will be created in Sunderland and an estimated 4,500 in supply companies under an investment of GBP1 billion.
More than GBP420 million will be invested in building a new-generation all-electric vehicle.
The news was warmly welcomed by the UK government and unions representing workers in Sunderland.
Nissan said its Electric Vehicle Hub will be a world-first EV manufacturing ecosystem.
The car-maker will partner with Envision AESC, a global company in battery technology, and Sunderland City Council.
There will be three interconnected initiatives bringing together electric vehicles, renewable energy and battery production, which Nissan said sets a blueprint for the future of the automotive industry.
UK Prime Minister Boris Johnson said: "Nissan's announcement to build its new-generation all-electric vehicle in Sunderland, alongside a new gigafactory from Envision AESC, is a major vote of confidence in the UK and our highly skilled workers in the North East.
"Building on over 30 years of history in the area, this is a pivotal moment in our electric vehicle revolution and securing its future for decades to come."
Here is what you need to know at the London market open:
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MARKETS
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FTSE 100: up 0.8% at 7,095.41
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Hang Seng: Hong Kong market closed for Special Administrative Region Establishment Day
Nikkei 225: closed down 0.3% at 28,707.04
DJIA: closed up 210.22 points, or 0.6%, at 34,502.51
S&P 500: closed up 0.1% at 4,297.50
Nasdaq Composite: closed down 0.2% at 14,503.95
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EUR: down at USD1.1843 (USD1.1856)
GBP: unchanged at USD1.3812
USD: up at JPY111.17 (JPY110.94)
GOLD: up at USD1,777.57 per ounce (USD1,764.86)
OIL (Brent): down at USD74.81 a barrel (USD75.02)
(changes since previous London equities close)
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ECONOMICS AND GENERAL
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Thursday's Key Economic Events still to come
181st OPEC meeting via videoconference
0955 CEST Germany manufacturing purchasing managers' index
1000 CEST EU manufacturing PMI
1100 CEST EU unemployment
0930 BST UK CIPS-Markit manufacturing PMI
2000 BST UK BoE Governor Andrew Bailey speech at Mansion House event
0830 EDT US jobless claims
0945 EDT US manufacturing PMI
1000 EDT US ISM manufacturing PMI
1000 EDT US construction spending
1030 EDT US EIA weekly natural gas storage report
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The Chinese manufacturing sector expanded at a weaker pace in June, with firms recording slower increases in both output and new orders, survey results from IHS Markit showed. The headline seasonally adjusted purchasing managers' index edged down to 51.3 points in June from 52.0 in May. This figure is still above the 50.0 point mark, with anything above denoting expansion.
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The Japanese manufacturing sector also recorded weaker expansion in June amid supply chain disruptions, IHS Markit said. The headline au Jibun Bank Japan manufacturing PMI dipped to 52.4 points in June from 53.0 in May. This was a fifth consecutive monthly improvement in the health of the sector, though the pace of the expansion was the softest since February.
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Ireland's manufacturing sector sustained its historic growth in June, as the country's economy continued its strong rebound following the easing of Covid restrictions, IHS Markit said. The headline AIB Ireland manufacturing purchasing managers' index reading was 64.0 points in June, a hair lower from May's all-time high of 64.1. "It is the third consecutive month that the index has been above 60. Thus, activity in the sector is clearly picking up strongly as economies re-open following the easing of Covid restrictions in Ireland and elsewhere over the second quarter of the year," Oliver Mangan, AIB chief economist, said.
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The EU's ambassador to the UK has hit back at criticism from the UK, saying Brussels has turned its rules and regulations "upside down" to ensure the Northern Ireland Protocol can work. Joao Vale de Almeida made his comments a day after a three-month "truce" was agreed in the post-Brexit "sausage war" which has blocked unfrozen British sausages and minced meat from being sent to Northern Ireland since December 31. Vale de Almeida rejected accusations that the EU has been inflexible or "legalistic" over the Northern Ireland deal, citing the extension to a protocol grace period for chilled meats, and concessions to smooth protocol barriers for medicines, guide dogs, livestock and car insurance. But he also said the bloc will insist on the full implementation of the protocol, which keeps Northern Ireland subject to almost 300 EU rules and creates an Irish Sea border for goods from Britain.
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BROKER RATING CHANGES
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CREDIT SUISSE RAISES LEGAL & GENERAL TO 'OUTPERFORM' (UNDERPERFORM) - PRICE TARGET 370 (170) PENCE
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CS RAISES STANDARD CHARTERED TO 'NEUTRAL' (UNDERPERFORM) - PRICE TARGET 457 PENCE
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BERENBERG RAISES ASCENTIAL TO 'BUY' ('HOLD') - TARGET 485 (240) PENCE
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JEFFERIES RAISES SOUTH32 TO 'HOLD' ('UNDERPERFORM') - TARGET 170 (140) PENCE
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COMPANIES - FTSE 100
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Sportswear retailer JD Sports Fashion bowed to shareholder pressure over its corporate governance, splitting its chair and CEO roles. JD Sports said trading in the immediate period after the reopening of non-essential shops in England was encouraging in the UK as both existing and new consumers to the company's product ranges. Consistent with other retailers, it said, store footfall remains fragile with online traffic at elevated levels. Looking ahead, JD said it is on track to deliver pretax profit before exceptional items for the financial year ending in January 2022 at an increased level of "no less than" GBP550 million. It posted pretax profit before exceptional items of GBP421.3 million in financial 2021. JD Sports, which has been under fire over its corporate governance practices, said it will divide the current roles of executive chair and CEO before its next annual general meeting and a comprehensive process will commence shortly. JD Sports is holding its 2021 AGM on Thursday. Last month, JD defiantly responded to a media report about the position of Executive Chair & Chief Executive Peter Cowgill, saying it would not split the CEO role from that of chair. Cowgill has been executive chair of JD since 2004 and assumed CEO responsibilities in 2014.
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Associated British Foods reported a rise in third quarter revenue, driven by growth from its Primark clothing chain. For the three months that ended June 19, total revenue at constant currency was up 47% to GBP3.65 billion from the same time last year. Third-quarter revenue in the Grocery division was up 2% to GBP2.71 billion, up 10% in the Agriculture arm to GBP391 million, and up 21% in the Sugar unit to GBP406 million. AB Foods said like-for-like sales for the quarter at Primark were 3% ahead of the comparable period two years ago when sales were at pre-Covid levels. The Ingredients unit saw revenue edge up 3% from a year ago in the third quarter to GBP376 million, while revenue in the Retail arm, which houses Primark, tripled from a year ago to GBP1.6 billion in with the reopening of all stores and the opening of seven new stores.
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Industrial software firm Aveva outlined new financial targets to 2026. Aveva said it has had a good start to financial 2022, achieving 10% revenue growth in the first two months of the financial year on an organic constant currency basis. In addition, Aveva set new five-year financial targets to the year ending March 31, 2026. Aveva, which is holding a capital markets day on Thursday, is targeting a revenue compound annual growth rate of around 10% over the period. The company said its revenue growth will be supported by revenue synergies relating to its OSIsoft acquisition, which are expected to be at least USD100 million in 2026. Aveva also targets an adjusted operating profit margin of at least 35% in 2026.
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Thursday's Shareholder Meetings
3i Group PLC - AGM
Abcam PLC - GM on new remuneration policy
C&C Group PLC - AGM
DP Aircraft I Ltd - AGM
EJF Investments Ltd - AGM
JD Sports Fashion PLC - AGM
McKay Securities PLC - AGM
Trainline PLC - AGM
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By Tom Waite; thomaslwaite@alliancenews.com
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