(Alliance News) - UK Prime Minister Boris Johnson on Thursday is set for showdown Brexit talks in Paris, hours after French President Emmanuel Macron ruled out making concessions.
The UK government was buoyed on Wednesday after comments by German Chancellor Angela Merkel which seemed to indicate that European leaders could be willing to renegotiate the Withdrawal Agreement in a bid to avoid a no-deal Brexit.
Hosting Johnson at the Chancellery in Berlin, Merkel set Britain a 30-day deadline for coming up with an alternative solution to replace the Irish backstop – a bid to avoid a hard border in Northern Ireland after the UK's exit from the EU by keeping Britain aligned with certain regulations set by Brussels.
But Macron told reporters on Wednesday that the demands to renegotiate the Brexit deal were "not an option".
He said: "We have to help the British deal with this internal democratic crisis but we mustn't be hostage to it nor export it."
The frank comments could make Johnson's trip to the Elysee Palace a dicey affair, with the Conservative Party leader set to meet his French counterpart for lunch on Thursday at his official residence to discuss changing the terms of Britain's exit.
Here is what you need to know at the London market open:
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MARKETS
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FTSE 100: called down 0.4% at 7,177.90
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Hang Seng: down 0.9% at 26,032.40
Nikkei 225: closed up 0.1% at 20,628.01
DJIA: closed up 0.9% at 26,202.73
S&P 500: closed up 0.8% at 2,924.43
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GBP: down at USD1.2113 (USD1.2131)
EUR: down at USD1.1076 (USD1.1097)
Gold: down at USD1,501.56 per ounce (USD1,503.01)
Oil (Brent): firm at USD60.14 a barrel (USD60.75)
(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
US Fed's Jackson Hole economic policy symposium opens
1100 BST UK CBI Distributive Trades Survey
1100 BST Ireland WPI
0830 CEST Switzerland Industrial Production
0845 CEST France New home sales
0915 CEST France Flash PMI
0930 CEST Germany Flash PMI
1000 CEST Eurozone Flash PMI
1330 CEST ECB accounts from last monetary policy meeting
1600 CEST EU FCCI Flash Consumer Confidence Indicator
0830 EDT Canada Wholesale trade
0830 EDT Canada Employment Insurance
0830 EDT US Unemployment Insurance Weekly Claims Report - Initial Claims
0945 EDT US US Flash Manufacturing PMI
0945 EDT US US Flash Services PMI
1030 EDT US EIA Weekly Natural Gas Storage Report
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US Federal Reserve will remain flexible and interest rates will not be on a "preset course" despite persistent risks from trade uncertainty and weak global growth, the central bank said Wednesday. Although the minutes of the Fed's policy meeting late last month showed officials were primarily focused on the risks to the US economy, amid fears about the blowback from President Donald Trump's trade war with Beijing, they stressed that they would keep their options open on their next steps. While they made no mention of Trump's constant attacks on Fed Chairman Jerome Powell, officials said they would be "guided by incoming information and its implications for the economic outlook" and avoid "any appearance of following a preset course," according to the minutes of the Fed's July 30-31 policy meeting. The July rate cut was viewed as "part of a recalibration... or mid-cycle adjustment" and, given the uncertainty surrounding the outlook, the officials "highlighted the need for policymakers to remain flexible and focused on the implications of incoming data for the outlook." However, the minutes showed the central bankers are not unified, with several opposed to cutting rates while a couple favored a bigger cut.
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A hard border on the island of Ireland would make a US-UK trade deal "highly unlikely", the UK prime minister has been warned. The Congressional Friends of Ireland, a group in the US Congress which supports and promotes peace and reconciliation in Northern Ireland, has written to Boris Johnson warning that it will oppose any US-UK trade deal if it risks undermining the Good Friday Agreement. According to the letter: "The US, and the more than 33 million Americans with Irish ancestry, share a genuine interest in the continued success of the Good Friday Agreement and the hard-won peace and prosperity it has brought to so many. That is why we strongly oppose any unravelling of the historic treaty or a return of a physical border on the island of Ireland under any circumstances. "We will oppose any US-UK trade deal if the Good Friday Agreement is undermined."
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US trade policies, including the trade war with China, will shrink US economic output by 0.3 percentage points by 2020, the US Congressional Budget Office said Wednesday. The report by the non-partisan government agency contradicts President Donald Trump's claims that the tariffs imposed on Chinese goods and Chinese retaliatory tariffs are not harming the US economy. "Tariffs reduce domestic GDP mostly by raising domestic prices, thereby reducing the purchasing power of consumers and increasing the cost of business investment," CBO Director Phillip Swagel said in a statement. US GDP growth is projected to slow from 2.5% in 2018 to 2.3% in 2019. Earlier this month, Trump unexpectedly postponed additional punitive tariffs on Chinese imports to December, anticipating adverse effects on consumer shopping ahead of the Christmas holiday.
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BROKER RATING CHANGES
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LIBERUM CUTS ANGLO AMERICAN TO 'SELL' ('HOLD') - TARGET 1500 (2200) PENCE
LIBERUM CUTS RIO TINTO TO 'SELL' ('HOLD') - TARGET 3300 (4500) PENCE
LIBERUM CUTS BHP GROUP TO 'SELL' ('HOLD') - TARGET 1400 (2000) PENCE
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COMPANIES - FTSE 100
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Building materials firm CRH reported interim profit growth and expanded its share buyback programme. Revenue for the first half of 2019 came in at EUR13.22 billion, up from EUR11.94 billion a year ago. Pretax profit rose to EUR707 million from EUR497 million. "On the back of our strategic initiatives, CRH has delivered significant profit growth in the first half of 2019, with a good performance in our heritage business and strong contributions from recent acquisitions," said Chief Executive Albert Manifold. He added: "We are pleased to report that the board plans to continue our share buyback programme with a further tranche of EUR350 million to be completed by year end. This will bring our total share repurchases in 2019 to EUR900 million."
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AstraZeneca said roxadustat has been approved in China for the treatment of anaemia in non-dialysis-dependent patients with chronic kidney disease. AstraZeneca and FibroGen China are collaborating on the development and commercialisation of roxadustat in China. FibroGen China, based in Beijing, is a wholly-owned subsidiary of FibroGen Inc.
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UAE-focused private healthcare firm NMC Health backed its annual guidance after a solid first half. Revenue for the first half of 2019 rose to USD1.24 billion from USD932.0 million, with pretax profit rising to USD140.6 million from USD118.7 million. NMC said it continues to view the future "with confidence" and reiterated its annual guidance. Separately, the company also said it intends to launch a USD200 million share buyback programme.
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COMPANIES - FTSE 250
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Animal genetics firm Genus said Finance Director Stephen Wilson has been promoted to the role of chief executive, with effect from "the close of business" on September 13. Current CEO Karim Bitar in March said he would be stepping down to head up ConvaTec. Wilson's finance responsibilities will be undertaken by Janet Duane, currently financial controller on an interim basis. A search for a permanent replacement finance director has already commenced.
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Gaming firm Playtech set out share buyback plans despite posting a fall in profit. Revenue for the six months to June 30 was EUR736.1 million, versus just EUR436.5 million a year ago. Pretax profit, however, fell to EUR28.0 million from EUR124.2 million after the firm booked EUR108.6 million in depreciation and amortisation charges, versus just EUR60.6 million a year ago. In addition, Playtech recognised a EUR87.4 million fair value gain on equity investments in the year ago period, which fell to just EUR141,000 in the first half of 2019. Playtech halved its interim dividend to 6.1 euro cents from 12.1 cents a year ago but, including a planned EUR25 million buyback, total shareholder returns were up 15% year-on-year for the half.
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COMPANIES - OTHER MAIN MARKET AND AIM
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Ryanair has lost a High Court bid to block strike action by its UK pilots – hours after winning a similar legal move in Dublin. A judge sitting in London on Wednesday rejected an urgent application by the airline for an injunction against the British Airline Pilots' Association. The decision by Justice Lambert came after Ryanair succeeded at the High Court in Dublin earlier on Wednesday in its bid to prevent pilots based in Ireland from going on a 48-hour strike from midnight on Thursday. The airline sought an urgent injunction from the judge in London just hours before the start of threatened industrial action by members of Balpa in a dispute over pay and conditions. After hearing submissions from Ryanair and Balpa, the judge dismissed the various grounds raised by the airline. Strike action by UK Ryanair pilots is due to take place on Thursday and Friday, with a second round of dates in September.
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Thursday's Shareholder Meetings
D4T4 Solutions
Castings
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