Date: Thursday 14 Jun 2012
LONDON (ShareCast) - 1630: Today the government detailed how it plans to split retail and investment banking, including increased protection for depositors over other creditors. The White Paper, which lays out how the government will implement the recommendations of the Independent Commission on Banking (ICB), is designed to make banks more resilient and simpler to wind up if they fail. Meanwhile, French finance minister Pierre Moscovici has promised that his country will be able to comply with the 3 per cent deficit-to-GDP (gross domestic product) goal in 2013 without the need to implement large cuts in public spending. In UK companies, BSkyB fell after saying it is paying the FA £2.3bn to broadcast live 116 matches over a three year period. The FTSE 100 closed 17 points lower at 5,467.
1614: UK stocks continue to trade under water despite Wall Street having turned up, although it is worth noting how Barclays and RBS have managed to move into the top spots on the benchmark. That after it has become known that the Chancellor has opted to water down the recommendations of the Vickers report. Shares of Man have passed BskyB on the downside while GKN is seeing selling pressure for a second day. Of interest, Goldman is being cited as saying that they see the Bank of England easing policy in July. Analysts from PIMCO have also gone on record today forecasting much the same for the Federal Reserve. FTSE 100 down 12 to 5,472.
1201: FTSE 100 is down 30 at 5,455, having recovered from an intra-day low of 5,424 hit just before 10:00. Investors have reacted phlegmatically to rising yields at this morning's Italian debt auction. In the mid-cap section, Russia-focused miner Petropavlovsk is sharply higher after updating guidance for 2012.
0932: After swooning late yesterday afternoon commodities producer and trader Glencore is on the slide again this morning, along with its proposed merger partner Xstrata. Concerns persist about the proposed merger, which is dependent on shareholders giving the thumbs-up to an eye-popping package of incentives for top executives at Xstrata. Given the slap in the face shareholders gave to the WPP board yesterday, as they protested at executive pay, there may be trouble ahead for what the combination wags have dubbed 'Glenstrata'. FTSE 100 is down 43 at 5,441.
0839: Whereas the main European equity indices have now turned higher, London stocks are being held back by the drop in BSkyB and BT Group after winning the auction for the rights to air 154 English Premier League football matches starting in the 2013-14 season. Further weighing on the former, analyts at Numis have downgraded its shares to 'add', although Citi has opted to maintain them at 'buy'. Also worth noting, Frances newly elected Government has abruptly suspended licences to drill for oil off the coast of French Guyana in a potentially shattering blow for Shell and Tullow Oil. FTSE 100 down 11 to 5,413.
0759: On the macro-economic front, reports indicate the Chancellor of the Exchequer and the Bank of England are poised to announce a new strategy to ease credit conditions and offer more liquidity to the banking system, perhaps as early as tonight's Mansion House dinner. Four separate insiders from the UK's tripartite financial supervision authorities (HM Treasury, the BoE and the FSA) suggested to the Financial Times (FT) that a shift was underway. On the other side of the channel all eyes will be on Italy´s debt auctions this morning. Several economic reports are expected Stateside this afternoon. Spanish 10-year bond yields hit a new euro-era record this morning at 6.9%.