Monday, December 11: the FTSE 100(+0.80%) was buoyed by both banking and mining stocks on a day with limited news hitting the wire. Banking stocks were lifted ahead of an expected US rate rise in the US, and better-than-expected new rules for the sector. HSBC(+2.12%) moved up the highest, as it also received a boost from the US DoJ’s lifting of its deferred prosecution agreement over anti-money laundering controls. A higher copper price came on the back of trade data from China, the world’s top metals producers, as it beat forecasts. This lifted Antofasgasta, BHP Billiton, and Rio Tinto by a touch over 2% each.
Jefferies became the latest in a long line of brokers to downgrade Talktalk(-9.13%) to ‘Underperform’ noting it is on track to miss EBITDA guidance for the full year. The broker has deemed its fixed low-price plans initiative an unconvincing experiment which has done little to stem customer churn, prompting the broker to downgrade EBITDA expectations to 3% below consensus.
The most recent report on the state of the UK economy indicates Brexit will cost the City 10,500 jobs on “day one” according to accountants EY. The job tracker compiled by the accountants, which counts announcements to the end of November, found that the number of roles likely to be affected had fallen from 12,500 a year ago. However, it also concluded that the jobs being affected were not just in the “back office”, but “front office” staff which deal directly with clients. Major firms are starting to present contingency plans for all eventualities, including a “hard” Brexit, after instruction from the Bank of England.
Across Europe, indices were mixed at the close with the FTSE 100 +0.80%, the DAX 30 -0.23% and the CAC 40 -0.23%.