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Glencore pushes FTSE 100 lower on poor payouts and earnings drop
Mining giant Glencore (-6%) is giving HSBC (LON:HSBA) a run for its money as Wednesday's biggest faller as the FTSE 100 (down 71 points) continues to fall behind 2023 levels.
Mark Crouch, analyst at eTore, said: "Glencore investors will be trying to dig out the positives from this morning’s update. The company has seen earnings halve from a year earlier and investor payouts have also taken a hit, with a halt being placed on buybacks and no plans for a special dividend.
“There was some encouraging news for investors, Glencore's $6.9 billion acquisition of a 77% interest in Canadian company Teck's steelmaking coal business highlights the strength of the balance sheet and is a reminder that the mining giant is no stranger to economic uncertainty and remains on the hunt for profitable opportunities.”
Glencore profits dropped by three-quarters in the year just ended as coal and metal prices fell and trading income was also reduced.
Revenues in 2023 were 15% lower than a year ago at US$217bn, while profits from its production arm were down by 52% and in trading by 46%.
Petrol prices to rise as Red Sea attacks continue
Motorists are facing a hike in prices at petrol pumps due to the Houthi attacks on shipping in the Red Sea, the RAC has warned.
Costs to fill an average family car are up by about £2 this month so far with the price of petrol up 3.2p on average to 143.4p per litre and diesel by 4p to 152p.
Prices remain well down from the start of 2024, when petrol was around 157p, noted the motoring organisation.
Crude has been trading above US$80 a barrel for most of the past month and this is starting to deed trough into pump prices as higher priced stocks reach refineries, it added.
On Wednesday, Brent Crude was trading at around US$82 a barrel, down around 0.4%.
BT Tower to be made into a hotel
London’s iconic BT Tower is to be sold to MCR Hotels through a £275 million deal as the UK gradually shifts away from analogue communications technology.
BT announced the sale of the grade II listed building in Fitzrovia, London on Wednesday, explaining its role of housing aerials was no longer needed as the country heads to an “all-digital future”.
“We’ve been immensely proud to be the owners of this important landmark since 1984,” BT property director Brent Mathews said.
“It’s played a vital role in carrying the nation’s calls, messages and TV signals, but increasingly we’re delivering content and communication via other means.”
MCR, which owns around 150 hotels, will purchase the building from BT over the coming years as its communications equipment is gradually removed, with the site ultimately being converted into accommodation.
King Charles banknotes to be used in June
King Charles banknotes are set to be issued from June 5 2024 onwards, according to the Bank of England.
A portrait of the King will feature on all four notes.
No other changes to the design are planned, meaning security features will also remain the same.
Notes with Queen Elizabeth will remain in circulation, with new versions only being printed to replace worn-out ones or to meet an overall increase in demand.
Today we have announced that banknotes featuring the portrait of King Charles III will be issued from 5 June 2024. For more information on the King Charles III banknotes see here: https://t.co/oBPgbpbXmf pic.twitter.com/hb9jFnBX4M— Bank of England (@bankofengland) February 21, 2024