Proactive Investors -
- FTSE 100 up 14 points
- Lloyds outdoes profit expectations
- Gold passes US$2,750
8.31am: Sellafield clean-up costs surging
The Sellafield nuclear waste dump's clean-up is expected to cost £136 billion, leaving questions over the site’s “value for money”.
Britain’s public spending watchdog said on Wednesday that efforts to fix buildings at the state-owned Cumbrian site had been gripped by delays and ballooning costs.
“We cannot yet say that [owner] the Nuclear Decommissioning Authority and Sellafield are achieving value for money,” the National Audit Office said in a report.
Though progress had been made in removing the likes of the most hazardous waste for the first time, work needed to be done to build new storage and upgrade ageing facilities before Sellafield is eventually decommissioned in 2125, the report found.
Costs of decommissioning Sellafield were expected to hit £136 billion as a result, marking a £21.4 billion, or 18.8%, increase on the last forecast in 2019... Read more
8.01am: Lloyds' profit outdoes expectations
Lloyds Banking Group PLC (LSE:LON:LLOY) has unveiled stronger-than-expected profit for the third quarter.
The black horse bank reported pre-tax earnings of £1.8 billion, slightly down from £1.9 billion the previous year but surpassing analysts' predictions of £1.6 billion.
The UK’s largest mortgage lender maintained its performance outlook for 2024, citing increased customer financial confidence despite economic challenges.
Absent from the update was an increase in charges related to a Financial Conduct Authority motor finance review... Read more
7.56am: Reckitt posts drop in revenue
Reckitt Benckiser (LON:RKT) Group PLC (LSE:RKT, ETR:3RB) has reported a drop in sales for the third quarter as revenue from its nutrition wing slumped.
Like-for-like revenue declined by 0.5% to £3,46 billion during the quarter, the consumer goods firm said, or by 4.0% on an international reporting standards basis.
Though sales across Reckitt’s hygiene and health wings picked up by 2.1% and 3.2% respectively, revenue from nutrition products fell 17.4% on a like-for-like basis.
This was primarily due to a £100 million supply-related hit from the Mount Vernon tornado in July, Reckitt said, “which reflects a better-than-expected recovery of inventories”.
Foreign exchange headwinds over the year so far had also dealt a 3.9% hit, with this offset by a 0.4% growth in like-for-like sales.
“Our [third quarter] delivery is in line with our guidance at the half year,” chief executive Kris Licht commented.
“Our categories are resilient, our brands are strong and we are now seeing a more balanced algorithm for growth”... Read more
7.27am: Gold passes $2,750 for first time
Gold breached the US$2,750 mark for the first time on Wednesday morning, continuing a record-breaking run which has seen the yellow metal repeatedly hit new highs this week.
Having climbed as high as US$2,753 earlier on, spot gold was trading at US$2,752 on Wednesday morning for a 0.66% daily gain.
Tensions in the Middle East, uncertainty around next month’s US election and further looming cuts to interest rates globally have buoyed the yellow metal most recently.
This is despite strengthening by the dollar over the week so far and increasing bond yields, which had risen to 4.23% for US 10-year treasuries come Wednesday morning.
“Non-gold friendly developments are being offset by haven bids and the ‘risk’ of a Republican win in the upcoming elections,” Saxo Strategy analysts commented.
This has stoked “concerns about looser fiscal policy, which may deepen the deficit and rekindle inflation”.
7.13am: FTSE 100 seen lower again
Futures had the FTSE 100 falling by 12 points to 8,335 on Wednesday morning, placing London’s blue chips on course for a third day of declines.
Fresnillo PLC (LSE:LON:FRES) and miners have so far enjoyed gains over the week in spite of wider falls on the index as gold and silver prices have been boosted as attention turns to next month’s presidential election in the US.
Gold continued its record-breaking streak into Wednesday, topping the US$2,750 an ounce mark for the first time, while silver gained a further 1.5% to reach US$34.74.
Overnight, Asian markets largely climbed, with Hong Kong’s Hang Seng index adding 1.2% as Japan’s Nikkei was among the few to fall.
Back in London, attention on Wednesday turns to trading updates from the likes of Lloyds Banking Group PLC (LSE:LLOY) and Reckitt Benckiser Group PLC (LSE:RKT, ETR:3RB).