Daily Business Live

UK ‘may miss inflation target’; R-R chairman; AMTE CFO quits


5pm: FTSE lower

The FTSE 100 closed at 7,081.01, down 14.08 (0.20%) but well off its low for the day.

Danni Hewson, AJ Bell financial analyst, said: “Inflation is once more the name of the game even if the latest US figures aren’t due out until tomorrow.

“All London indices closed in the red unable to shake off early tremors set off by a big rise in producer prices in China and comments from the Bank of England’s outgoing chief economist.

“Andy Haldane told LBC (see below) it was “hard to find anything whose price isn’t going up at the moment.

“Some of the biggest gains on the FTSE 100 and 250 came from travel stocks after a double dose of good news. First the EU has given the go ahead to vaccine passports and secondly the US has eased travel restrictions for 61 countries.

“Whilst the status quo remains for UK travellers, two more pieces of the international jigsaw have fallen into place, raising hopes that the summer might not be a complete loss for companies like Tui which closed up 3.27% and EasyJet which finished 1.99% higher.”

1.30pm: Menzies Distribution acquisition

Menzies Distribution has acquired a West Lothian logistics and supply chain services business.

Full story here

8.30am: Market slips on inflation worries

Bank of England

Bank of England chief economist Andy Haldane warned this morning the UK could “overshoot” its 2% inflation target for longer than planned.

Speaking on LBC radio this morning Mr Haldane said there are “punchy pressures on prices” across the UK economy.

Higher inflation “would not be good news” for the cost of living, doing business in the UK, or the government, as the cost of borrowing would go up, he added.

The FTSE 100 slid 28 points to 7,067.10, with the latest Chinese data adding to the concerns.

Markets are likely to remain uncertain ahead of the latest US inflation numbers on Thursday.

On the corporate front, Rolls-Royce added 0.31% to 111.74p after appointing Anita Frew as a non-executive director and chairman designate (see below).

7am: CMA investigates airlines

The Competition and Markets Authority is investigating whether British Airways and Ryanair have broken consumer law by failing to offer refunds for flights customers could not legally take.

Full story here

7am: Orcadian pursues IPO

Orcadian Energy, the North Sea focused, oil and gas development company, is seeking admission of its shares to the Alternative Investment Market to raise gross proceeds of c.£5 million to progress its assets.

Full story here

7am: Rolls-Royce hires chairman

Rolls-Royce says Anita Frew will succeed Sir Ian Davis as chairman on 1 October.

Ms Frew is currently chairman of Croda, the science, technology and chemicals group, and a non-executive director of BHP Group, a global resources company.

Until recently she was the deputy chairman and senior independent director of Lloyds Banking Group and has also held chair and board roles in companies in industrial, engineering and utilities sectors.

Rolls-Royce also announces the appointment of Mike Manley as a non-executive director.

7am: AMTE CFO leaving

AMTE Power, the Scottish developer and manufacturer of lithium-ion and sodium-ion battery cells for specialist markets, said Adam Westcott, chief financial officer is leaving to take up another role.

Mr Westcott will continue in his current position for the next six months and assist in an orderly hand-over once a new CFO has been appointed.

Kevin Brundish, CEO of the Thurso-based company, said “Adam has been made an offer by another business which he wants to pursue.

“He has been instrumental to the corporate development of AMTE and especially so in the recent completion of our successful IPO. We are grateful to Adam and we wish him well in the future.”

Global markets

The FTSE 100 was expected to open lower on as macroeconomic issues spread caution among traders.

Inflation around the world once again emerged as the dampener on sentiment.

There was a mixed performance on Wall Street, with the Dow Jones Industrial Average closing down 0.09% while the S&P 500 was 0.02% higher and the Nasdaq rose 0.31% .

But Japan’s Nikkei 225 was down 0.33% while Hong Kong’s Hang Seng fell 0.16%.

The pound was relatively flat against the dollar at $1.415.

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