Last checked at 
(Alliance News) - Stocks in London are called to open slightly higher on Wednesday, despite shock data on the UK economy and pre-interest rate nerves.
All eyes on Wednesday will be on the US Federal Reserve's latest interest rate decision. The latest interest rate decision will be announced at 1900 GMT and a press conference with Fed Chair Jerome Powell follows half an hour later.
Expectations were reinforced after the latest US inflation data landed in line with expectations on Tuesday. According to the Bureau of Labor Statistics, the nation's yearly inflation rate faded to 3.1% in November, in line with consensus, from 3.2% in October.
"Today, we will probably face a satisfied, calm but cautious Powell, who will say that the Fed has done a great job fighting inflation, but that the rates will remain restrictive as long as needed. One dovish tweak could be deleting 'additional policy firming' from the post-meeting communication," said Swissquote Bank's Ipek Ozkardeskaya.
The European Central Bank and Bank of England will then take centre stage and announce their own interest rates on Thursday.
In early economic news, UK GDP fell by 0.3% on-month in October, having risen by 0.2% a month earlier.
On the corporate side, Entain's Chief Executive has stepped down, a week after the company agreed to pay GBP615 million in a deferred prosecution agreement.
Here is what you need to know at the London market open:
----------
MARKETS
----------
FTSE 100: called up 0.1% at 7,551.90
----------
Hang Seng: down 0.9% at 16,232.24
Nikkei 225: closed up 0.3% at 32,926.35
S&P/ASX 200: closed up 0.3% at 7,257.80
----------
DJIA: closed up 173.01 points, or 0.5%, at 36,577.94
S&P 500: closed up 21.26 points, or 0.5%, at 4,643.70
Nasdaq Composite: closed up 100.91 points, or 0.7%, at 14,533.40
----------
EUR: up at USD1.2550 (USD1.2549)
GBP: down at USD1.0783 (USD1.0789)
USD: up at JPY145.80 (JPY145.60)
Gold: down at USD1,975.44 per ounce (USD1,982.30)
(Brent): down at USD72.65 a barrel (USD73.61)
(changes since previous London equities close)
----------
ECONOMICS
----------
Wednesday's key economic events still to come:
11:00 CET EU industrial production
14:00 EST US interest rate decision
14:00 EST US Federal Reserve economic projections
08:30 EST US PPI
----------
The UK economy shrank by more than expected in October, according to figures from the Office for National Statistics on Wednesday. Gross domestic product fell by 0.3% in October from September, having risen by 0.2% in September from August. This was worse than expected. According to FXStreet market consensus, analysts were expecting GDP to fall by just 0.1% in October. In the three months to October, the UK economy was flat compared to the immediately previous period, though 0.7% larger compared to a year before. Services output fell by 0.2% month-on-month in October, having risen by 0.2% in September. Construction output fell by 0.5% after a 0.2% rise in September from August.
----------
BROKER RATING CHANGES
----------
HSBC cuts Anglo American to 'hold' - price target 1,800 pence
----------
JPMorgan cuts WPP to 'neutral' (overweight) - price target 850 (1,170) pence
----------
RBC raises Paragon to 'outperform' (sector perform) - price target 850 (700) pence
----------
COMPANIES - FTSE 100
----------
Entain said its Chief Executive Officer Jette Nygaard-Andersen has stepped down with immediate effect. The company's Non-Executive Director Stella David has been appointed as CEO on an interim basis. David will start this week and will remain in the role until a permanent replacement has been found. Nygaard-Andersen's decision to leave comes after the resolution of HM Revenue & Customs' investigation into the company's legacy Turkish-facing business. HMRC launched in investigation into the global sports betting and gambling company, whose subsidiaries include Ladbrokes Coral and BetMGM, in 2019. Entain faced allegations relating to bribery offences at their former Turkish unit, sold by a management team in 2017. Last week, Entain agreed to pay a penalty plus disgorgement of profit totalling GBP585 million. Additionally, the company will make a charitable donation of GBP20 million and pay GBP10 million towards HMRC's and the CPS's costs, all of which will be provided in four annual instalments from funds it had set aside to cover expected penalties stemming from the case.
----------
COMPANIES - FTSE 250
----------
Volution said that revenue in the four months ended November 30 was about GBP121 million, up 8.0% from a year ago. The designer and manufacturer of energy-efficient indoor air quality systems said organic growth at constant currency was 2.9% and inorganic growth was 7.7%. Looking ahead, Volution said its "strong" start to the financial year, paired with the tailwind from the three acquisitions completed in the calendar year, has given the board confidence in delivering earnings ahead of the current range of market expectations for the financial year. "All three geographic regions grew earnings in the period with the strongest performance coming from our UK residential activities. Both public and private refurbishment in the UK has been supported by greater customer awareness of indoor air quality, and resolution of mould and condensation issues," Volution said.
----------
Workspace said it has entered into a corporate power purchase agreement with Statkraft, a generator of renewable energy, to supply around two thirds of the company's expected electricity demand for the next 10 years. The agreement will take effect from February 1. The flexible workspace provider will take all the electricity generated by a newly constructed solar plant in Devon, it noted. Chief Financial Officer Dave Benson said: "The deal delivers significant value for our stakeholders and underpins the long-term energy security for the group and our customers. As companies increasingly seek work spaces with strong sustainability credentials that run on clean energy, our switch to even higher quality renewable electricity is both commercially attractive and sustainable."
----------
OTHER COMPANIES
----------
Impellam said it has reached a GBP483.2 million takeover with Heather Global and HeadFirst. For each Impellam share, shareholders will be entitled to receive 557.2p in cash and 392.8p in principal amount of loan notes. In addition, Imprellam shareholders will be entitled to receive the interim dividend of 55.9p. Impellam said the terms of the acquisition are "fair and reasonable", and accordingly its directors intend to recommend that shareholders vote in favour of the takeover. HeadFirst Chair Han Kolff said: "This merger will be transformational, building on the complementary strengths of Impellam and HeadFirst. Together we will become a global leader in mission-critical data, tech and engineering talent enabling us to service our customers, suppliers and professionals in an unrivalled manner. There is a very exciting journey ahead with ample opportunities for our teams, leveraging HR tech depth and geographic reach further and faster."
----------
Walgreens Boots Alliance is reviving discussions on a potential exit from its UK drugstore chain Boots, Bloomberg reported, citing people with knowledge of the matter said, nearly 18 months after a sale process was scrapped. The Illinois, US-based retailer has been holding early talks about ways to separate Boots, which could be valued at about GBP7 billion in a deal, according to the report. It is studying a London initial public offering as one possibility, the people said. A Boots stock offering would be a big boost to the London stock market, which has been hit by a steady flow of companies opting to list elsewhere. Walgreens reached a deal in November to offload Boots pension risks to Legal & General, removing a stumbling block that had complicated previous efforts to divest the business.
----------
By Sophie Rose, Alliance News senior reporter
Comments and questions to newsroom@alliancenews.com
Copyright 2023 Alliance News Ltd. All Rights Reserved.
