Investment market update
UK stocks look set to open slightly lower today, following US and Asian markets after they retreated overnight.
Asian stocks fell following movement from Wall Street, as a stronger yen weighed on exporters in Japan and as investors awaited further clues on the pace of the US interest rate rises. Japan’s Nikkei 225 fell 0.9% while Hong Kong’s Hang Seng dropped 0.3%.
US stocks fell in the final minutes of trading, as investors awaited further direction on the health of the economy and prospects for higher interest rates. Monsanto Co. climbed to a 10-month high after Bayer AG offered to buy it for $62 billion. The seed maker’s advance boosted raw-material shares, while Apple Inc. rallied for the third time in four days to bolster the tech group until the final minutes of trading.
UK stocks closed lower, with the FTSE 100 dropping 0.3%.The biggest faller was satellite operator Inmarsat. Shares fell 4% after analysts at Morgan Stanley cut their rating of the company’s shares. Earlier this year it issued a profit warning and shares have fallen by more than 30% this year, leaving the firm facing relegation from the FTSE 100.
Goldman Sachs warned a close lieutenant of retail billionaire Sir Philip Green that the man lining up to buy retail chain BHS had a history of bankruptcy, a parliamentary committee has heard. Anthony Gutman, co-head of UK investment banking at the US investment bank, told a committee of MPs that he met with Paul Budge, the finance director of Sir Philip’s Arcadia Group, in December 2014, to discuss proposals for the sale of the troubled department store chain.
Spotify saw revenues reach €1.95bn over the past year, but the Swedish music streaming platform has still not made a profit. Losses deepened at the industry leader, increasing by 7% from the previous year to €173m. Revenue increased by 80% over the past year, beating the 45% growth rate of 2014 by a wide margin.