Ggood morning.
On a busy business results morning, there are two standout winners.
Shell and British Gas owner Centrica both jumped in profits over their most recent quarter as they benefited from rising energy prices following Russia’s war in Ukraine.
The companies split the loot with investors, with Shell announcing a new $6 billion share buyback. That follows $8.5 billion in share buybacks in the first half of the year.
Centrica, meanwhile, is restarting its dividend for the first time since the start of the pandemic.
The payouts could spark political anger as they come on the heels of the windfall tax targeting oil and gas producers’ profits.
5 things to start your day with
1) UK bets the house on European energy Wholesale gas and electricity prices on both sides of the Channel are at record levels
2) Courts gain power to award damages in Bitcoin Relocation would mean damage could reflect large value swings of digital currencies
3) Facebook suffers sales drop for the first time as advertising slows Parent company Meta warns against cuts in hiring and spending plans
4) Federal Reserve raises interest rates sharply to beat inflation US decision increases pressure on Bank of England to push rising prices harder
5) Saudi prince invests £190m in Britain’s largest pension provider Saudi royal Alwaleed bin Talal Al Saud has taken a stake of just over 3 pc in Phoenix Group
What happened overnight?
Asian stocks posted tentative gains this morning as investors noted a possible slowdown in the pace of US rate hikes, reassuring bond markets and sending the dollar to the yen’s three-week low.
As expected, the US Federal Reserve raised interest rates by 75 basis points, but noted some easing in recent data.
Just the hint of a less aggressive Fed was enough to push MSCI’s widest index of Asia-Pacific stocks outside Japan by 0.5 pc. to push up. Japan’s Nikkei added 0.3 percent and South Korea 0.9 percent. Chinese blue chips reinforced 0.6 pcs.
coming today
- For Business: Diageo (annual results); Airtel Africa, Alliance Trust, Anglo American, BAE Systems, Barclays, Centrica, FDM Group, Greencoat UK Wind, Hammerson, Inchcape, Indivior, ITV, National Express, Rathbone Brothers, Relx, Rentokil, Schroders, Scottish American Investment Company, Segro, Shell, Smith & Nephew, St James’s Place, Vesuvius, Weir (interim); AVEVA, BT, CMC Markets, CVS Group, Discoverie Group, Evraz (trading update)
- Economy: GDP (US), unemployment claims (US), consumer confidence (EU), business environment (EU)