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FTSE 100 Live: Stocks to slide after hot inflation print

Published 17/01/2024, 07:27
© Reuters.  FTSE 100 Live: Stocks to slide after hot inflation print
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Proactive Investors - BP (LON:BP) names Murray Auchincloss permanent CEO.

Back to company news for a moment and BP PLC has confirmed the news that broke on Tuesday evening that interim chief executive Murray Auchincloss has been given the job on a permanent basis with immediate effect.

Auchincloss has been interim CEO since September 2023 after the shock departure of Bernard Looney.  

BP said the appointment followed a robust and competitive search process and included a range of candidates, including external to bp. 

For his part, Auchincloss said: "It's an honour to lead bp - this is a great company with great people.”

He said its strategy “from international oil company to integrated energy company, or IOC to IEC - does not change. I'm convinced about the significant value we can create.”

FTSE 100 seen sharply lower after hot inflation print

The FTSE 100 is expected to open sharply lower after stronger-than-expected UK inflation figures and disappointing data from China.

Spread betting companies are calling London’s blue-chip index down by around 98 points after closing down 36.57 points, 0.5%, at 7,558.34 on Tuesday.

In London, the Consumer Prices Index rose by 4.0% in the 12 months to December, up from 3.9% in November, and the first time the rate has increased since February, according to figures from the Office for National Statistics.

On a monthly basis, CPI rose by 0.4% in December,, the same rate as in December 2022.

City analysts had expected the annual rate to fall to 3.8%.

Core CPI (excluding energy, food, alcohol and tobacco) rose by 5.1% in the 12 months to December, the same rate as in November while the CPI services annual rate increased from 6.3% to 6.4%.

The core reading was expected to drop to 4.9% with the services reading predicted at 6.1%.

The ONS said the largest upward contribution to the figures came from alcohol and tobacco while the largest downward contribution came from food and non-alcoholic beverages.

Elsewhere, Chinese equities on the mainland and in Hong Kong opened down following the release of official housing data for December, highlighting weak sentiment due to an ongoing property downturn.

This followed falls in the US on Tuesday after a leading Federal Reserve official said interest rates cuts, when they come, need to be done carefully, and there was no need to rush.

Read more on Proactive Investors UK

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