Tuesday 7 August 2018

Company news, markets and financial talking points, available from 8am Monday to Friday

Banks say Trump's trade war could kill bull market

Donald Trump’s trade war with China and the European Union could kill the nearly decade-long Bull Run in equity markets, banks have warned. After HSBC became the latest global company to admit fears over tariffs, UBS said the East-West conflict has reached a "tipping point". It advised investors to move their money out of "cyclical stocks".

Heatwave bonanza can't stem sales slump

A "bonanza" of retail sales failed to boost overall shop data in July, reports the BBC. Sales in stores open at least a year rose by 0.5% compared with 1.1% in June, according to data from the British Retail Consortium. Although the heat prompted people into splashing out on fans, food and drink, the temperatures have put people off off browsing in shops.

Pint is 'unaffordable' as pub closures continue

A new study has found that most people in the UK believe a pint of beer in a pub is unaffordable. The research by the Campaign for Real Ale found 56% of 2,000 adults thought a pint was too much, and only one in four respondents said prices were about right. Meanwhile, the BBC reports that pubs are continuing to struggle, with 18 closing a week in the UK.

Pound's fall could hit holidaymakers hard

Tourists could be in for a more expensive holiday thanks to a sharp drop in the value of the pound. According to exchange company Travelex, travellers are currently being offered $1.26 for each pound, after the currency fell to its lowest level against the dollar for around 11 months. Economic consultancy Capital Economics has warned that the pound is likely to plummet further as fears of a "no deal" Brexit grow.

Indra Nooyi steps down from Pepsi at 62

Indra Nooyi is stepping down from Pepsi at the age of 62, notes the Financial Times. With sugary fizzy drinks in decline in North America for the best part of two decades, Nooyi sought to shift PepsiCo’s focus towards juices, teas and sports drinks. Ramon Laguarta, who will replace Nooyi when she steps down in October, has worked at PepsiCo for the past 22 years.

Quote of the day… Buffett and the case for bears

"Evidently he thinks that shares are too pricey. That’s no surprise. In February he said there was nothing to buy at a sensible price. And share prices are higher now than then." Patrick Hosking of The Times on Warren Buffett and the case for the bears.

THE NUMBERS... AT 0651 GMT

FTSE 100: up +0.06 to 7,663.78
Dow Jones: up +0.16 to 25,502.18
Dax: down -0.14 to 12,598.21
Cac 40: down -0.03 to 5,477.18
Nikkei: up +0.59 to 22,639.94
Hang Seng: up +0.98 to 28,091.74
US dollar: buys €0.8651 and £0.7724
Sterling: buys $1.2943 and €1.1197

Oil: $73.96 +0.21