Proactive Investors -
- FTSE 100 down 46 points at 7,634.
- Rolls-Royce (LON:RR) to expand submarine arm.
- Attention turns to Wednesday's Spring Budget.
US stocks called lower
The Dow Jones is expected to open lower in a mixed start for Wall Street on Monday as investors gear up for a heavy week of macroeconomic news.
Futures had The Dow Jones Industrial Average at 39,041 on Monday morning, down 101 points, while the S&P 500 was seen 5 points lower at 5,140.
The Nasdaq Composite is expected to open in the green meanwhile, with the index sitting 16 points higher at 18,347 in futures trading.
In the US, key jobs data is due to be released on Friday, though Wednesday’s Spring Budget in the UK and interest rate decision by the Bank of Canada, followed by the European Central Bank’s own call on Thursday will give traders lots to mull over before then.
“All that matters to the market, it seems, is the timing of the first rate cut and how far they expect to go with policy easing,” Finalto analysts commented.
Rolls-Royce submarine arm to add jobs on back of AUKUS deal
Rolls-Royce is to add some 200 jobs in its submarine division as it prepares to fill new orders under a partnership between the UK, US and Australia.
Based in Cardiff and Glasgow, the roles will centre around the likes of engineering and cyber security, according to Rolls-Royce, which builds power units for the UK’s nuclear submarines.
They will add to the division’s 4,000-strong workforce as it looks to fill orders through the AUKUS deal, which will see the UK and US aid Australia in acquiring nuclear submarines for the first time
“From our commitments to maintaining the UK’s nuclear deterrent through our deliveries into the Dreadnought programme, to increased demand as a result of AUKUS, this is a time of unprecedented growth for our business,” Rolls-Royce Submarines president Steve Carlier said.
“To help us succeed we want to attract the brightest and best from across the UK to help us build a better world with nuclear.
“The work secured from recent announcements will see us support UK and Australian submarines well into the second half of this century, so there has never been a better time to join our industry.”
Rolls-Royce climbed 0.75% to 377.60p on the news.
Spring Budget stamp duty cuts on the cards - analyst
Landlords and developers will unlikely “see much in their favour” in Wednesday’s Spring Budget as Jeremy Hunt looks to attract votes from the masses faced with high rents and mortgage rates, ASK Partners chief executive Daniel Austin has said.
“We hope to see a long-term plan for new homes, including social housing, however, we expect we will see more short-term fixes,” he commented ahead of the statement.
A stamp duty holiday or reprieve may be among the tools Hunt uses to attract votes from buyers, Austin forecast.
Developers will likely be hoping for eased regulation on building at brownfield sites, meanwhile, he said.
“The government will be faced with a challenge - striking a balance between trying to increase housing supply and therefore affordability by supporting developers and private landlords, but appealing to voters who do not want to see greenfield development.
“The planning system remains hotly political and as a result, landlords and developers are unlikely to see much in their favour.”
Vertu Motors gains as second-hand car market steadies
Vertu Motors (LON:VTU) shares ticked up 1.6% after reassuring investors that used car prices had now normalised following hefty falls since October.
“We are back to a sensible used car market,” the car dealer's chief executive, Robert Forrester, said in a call after the firm reported on Monday.
For the five months to January, the AIM-listed firm reported a 7.8% increase in like-for-like revenue, after successfully increasing used-vehicle stock-turn and reducing inventory to “adjust for the changing market”.
Net debt for the year to February will come in lower than expected at £60 million to £65 million as a result, Vertu said.
This was as the new car market in the UK contracted overall, Vertu added, leaving manufacturers offering the likes of discounts to stimulate demand.
Shares climbed 1.6% to 68.60p.