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Thursday update

DB Live: Bank adds £100bn for economy; markets fall

4.45pm: London close

Stocks in London eased back amid concerns over a second wave of virus outbreak, while the pound fell after the Bank of England’s interest rate decision.

The FTSE 100 index closed down 29.18 points, or 0.5%, at 6,224.07.

4pm: Competition chief steps down

Andrew Tyrie, chairman of the Competition and Markets Authority, will step down in September, just over two years after taking up the role.

Mr Tyrie, a former senior Conservative MP and chairman of the Treasury Committee, said: “On taking the role, I was asked by the government to map out a route to a new type of competition authority, one better equipped to understand and respond to what most concerns ordinary consumers: penalties for loyal customers, price discrimination against vulnerable consumers, the difficulties faced by millions in getting good deals online, among them.

“We’ve reoriented the organisation to listen and act on consumer concerns more quickly and effectively. In responding, the CMA has shown a remarkable and unprecedented capacity to develop an emergency role.”

12.50pm: Dates set for reopening economy

Face coverings will be mandatory on public transport from next Monday, shops and factories can open from 29 June.

However, no date set for pubs and restaurants to reopen and Nicola Sturgeon says the two-metre rule still remains. She has asked advisers to look at possibly reducing that to 1-1.5m in certain situations.

Full story here

12.35pm: Sturgeon announces lockdown easing

Nicola Sturgeon confirms that Scotland will move into the next stage of lockdown.

Noon: More Bank support

Bank of England

The Bank of England will inject an additional £100 billion into the UK economy to help tackle the impact of the coronavirus.

The Bank’s Monetary Policy Committee (MPC) voted to keep interest rates at a record low of 0.1%.

The FTSE 100 index was trading 50 points (0.8%) lower at 6,203. Sterling is off its lows, trading at $1.2510 against the dollar, down 0.3%, and at €1.1128 versus the euro, also down 0.3%.

10.15am: Biotech seeks funding

Scottish biotech firm Invizius, which has developed a technology aimed at reducing long-term side effects and health complications from dialysis treatment, is seeking Series A funding after undergoing promising safety trials.

Full story here

9.10am: Breweries open for home deliveries

A number of craft breweries have been able to reopen as a result of a surge in demand for home deliveries of beer during lockdown.

Full story here

9am: BioQuarter consultation

Edinburgh BioQuarter has launched an online community consultation with the intention of developing a new mixed-use neighbourhood, as part of ambitious plans to create the City’s Health Innovation District. 

new fly-through of the proposed development shows the latest design phase of the masterplan to the local community, with the consultation seeking feedback on how the site will evolve over the next decade and beyond.

8.15am: London open

London stocks fell in early trade amid growing fears about a second wave of coronavirus infections, and as investors looked ahead to the latest policy announcement from the Bank of England.

The FTSE 100 was down 34 points (0.54%) at 6,219.65.

Tesco, Aviva, National Grid and SSE were among the early gainers, while Carnival, Taylor Wimpey and Barratt Developments were lower.

7am: Taylor Wimpey eyes land

Taylor Wimpey

Taylor Wimpey has raised £522m from a placing of shares, subscription and retail offer announced on Wednesday night and is expected to make a move to acquire land.

Full story here

National Grid hit

National Grid warned investors that its results for the current financial year would take a hit due to lower levels of energy use during the pandemic lockdown, and higher levels of ‘bad debt’ from customers in the US.

The energy networks giant, which runs Britain’s energy system and operates gas networks in the US, reported a pre-tax profit of £1.75bn for last year, down 5% from the previous year.

A final dividend of 32p has been recommended to bring the full-year payout to 48.57p, up 2.6%, in line with its policy to increase in line with the UK retail price index.

John Pettigrew, chief executive, said the financial impact of Covid-19 will be “largely recoverable over future years” and that the company anticipates “no material economic impact on the Group in the long-term”.

Ted Baker

Fashion chain Ted Baker has raised £105 million in a new issue of shares.

6am: Markets – Bank meets to consider interest rates

The Bank of England’s monetary policy committee is expected to keep interest rates unchanged at 0.1% when it makes its latest announcement at noon.

Some members of the MPC have called for an extension of quantitative easing, with some economists suggesting a new round of QE could be on the cards to help support the economy and share prices.

The asset purchase facility is likely to be increased by £200bn over the course of the summer, according to one source.

Hearts and Partick claiming compensation

The SPFL is facing a multi-million-pound compensation claim by Hearts and Partick Thistle should a joint court action fail to overturn their relegations.

Full story here

Stock Markets

The FTSE 100 is tipped to start the session about 55 points lower as global stock benchmarks continue to fret over rising infection in parts of China and the United States.

In Asia, Japan’s Nikkei was 0.42% lower and Hong Kong’s Hang Seng was down 0.36% while the Shanghai Composite was more positive, rising 0.19%.

On Wall Street, the Dow Jones closed down 170 points or 0.65% and the S&P 500 was 0.36% easier.

The tech-focused Nasdaq ended the session up 0.15%.



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