Thursday, 21st September: Making a firm statement at the very bottom of the FTSE 250 today was management and solutions firm Capita, down a hefty 14.5% at 551p during the early hours of trading. September seems to be the groups’ star-crossed month, as it was only the same time last year the share price dropped an even larger amount by almost 27% to 696p after they released their interim results and profit warnings, which consequently lead to being demoted from the FTSE 100 earlier this year. This year, the group reported a 26% fall in pre-tax profit for the first half of 2017, but remain hopeful as they’ve highlighted plans in cost-cutting and debt-reduction as a bid to recoup what was lost from the damage which has occurred and prevent a third year of drastic share price crash.
The Fed’s meeting yesterday suggested that interest rates are due another hike before the end of 2017, but for now will remain unchanged. More than half of the officials in the meeting voted that the “appropriate” benchmark interest rate should be 0.25 percentage points higher than what it currently is. In addition to this, plans to shrink the £3.09 trillion in holdings of US Treasury Bonds and mortgage backed securities will also commence next month.
The South Korean president’s approval rating has been hit again, this time by his decision to send £5.93m worth of aid to those in need in North Korea. The aid will be sent in the form of nutritional products for children and pregnant women, as well as vaccines and medicinal treatments. UNICEF’s regional director declared that they estimated approximately 200,000 children are suffering from acute malnutrition on the Korean peninsula, and that the recent tensions do not affect their aid policy to citizens in the North.
By the end of the day, the FTSE 100 was trading slightly lesser as sterling grew stronger. GBP/USD was around 0.64% higher at $1.3578, the highest it has been since the Brexit palaver last year. The FTSE 100 closed 0.11% lower at 7263.90.