Proactive Investors -
- FTSE 100 down 2 points
- Wetherspoons' sales pass £2bn
- Oil buoyed by Middle East fears
Carmakers lobby government for EV support
Carmakers have urged the government to support Britain’s electric vehicle industry as sales risk missing a mandated target in its first year, despite steep price cuts from carmakers.
Carmakers are set to collectively offer £2 billion worth of discounts this year to buoy sales of electrics, Industry body the Society of Motor Manufacturers and Traders (SMMT) said Friday.
However, sales still risk missing the government’s new mandated target regardless, which requires 22% of cars sold to be electric, placing manufacturers at risk of fines.
SMMT chief executive Mike Hawes in an open letter, signed by the likes of Volkswagen (ETR:VOWG_p), Jaguar Land Rover, Ford and BMW, called on chancellor Rachel Reeves to use October’s Autumn Budget to unveil measures to aid the market as a result... Read more
Pound set for worst week vs dollar in year
Sterling is on course for its worst weekly performance against the dollar in over a year.
Come Friday morning, the pound had dropped to US$1.3147, following a 1.8% decline since Monday morning.
This left the pound on course for its worst week against the greenback since July 2023.
Comments from Bank of England governor Andrew Bailey on Thursday had weighed on the pound, after he pointed out policymakers could become “more aggressive” on rate cuts if inflation continued to ease.
This saw the pound stoop to a three-year low as heightened fears over further escalations in the Middle East also drove investors to safe haven assets.
British Gas boss hails government carbon capture backing
Chris O’Shea, head of British Gas owner Centrica PLC (LON:CNA), has hailed news the government will pour £22 billion into the UK’s carbon capture and storage sector.
Ministers firmed up the commitment overnight, which will see subsidies offered to support so-called carbon capture clusters in Merseyside and Teesside.
Plans are to ultimately fit carbon capture technology to the likes of factories and power plants in the areas, with emissions then being transported to depleted subsea oil and gas reserves.
“With some of the greatest geological storage potential of any country in the world, Britain has the natural advantages and the pipeline of projects to become a global leader in storage and CCUS,” O’Shea said.
“There is an incredible prize for the country, and our climate, in seeing the first of these projects advance.”
He highlighted Centrica’s plans to convert its Morecambe bay gas fields into the “largest single carbon storage facility in the UK,” alongside efforts to convert the Rough gas facility to store hydrogen.
“We can't wait to work with government on how we now rapidly unlock further investment in these climate-critical technologies,” he added.
Shares in Centrica ticked up 0.2% early on, while Drax Group (LON:DRX), which is located in the eastern carbon capture cluster, gained 1.3%.
Wetherspoons climbs as sales surpass £2bn
JD Wetherspoons ticked up 1.7% early on after reporting full-year sales climbed above £2 billion for the first time.
Like-for-like sales increased by 7.6%, the pub chain reported, while pre-tax profit soared 73.5% to £73.9 million.
Issues of perceived tax inequalities between pubs and supermarkets appeared to be a prominent theme in the results though… Read more
Oil holds gains as Middle East escalation fears weigh
Oil was in sight of US$80 a barrel on Friday morning after holding gains overnight following a boost on fears of further escalations in the Middle East.
At US$77.51, benchmark Brent crude was up 3.5% from Thursday morning and by 8% since Monday.
Prices had not reacted too aggressively to news of Iran’s direct missile strike on Israel earlier in the week, as expectations of surplus supply ahead remained.
This was as markets continued to price in weak demand from China and growing supply from Saudi Arabia later in the year, in turn offsetting concerns related to the Middle East.
However, fresh fears surrounding a response to Iran’s strike by Israel on Thursday appeared to finally weigh on sentiment.
President Joe Biden had alluded to strikes by Israel against Iran’s oil industry.
When asked on Thursday if he would support strikes against oil facilities in the country, which is the world’s seventh largest oil producer, he replied: “We’re discussing that.”
Government firms up £22bn carbon capture support
The government will pump just under £22 billion into Britain's carbon capture and storage sector.
Following reports of the move on Thursday, chancellor Rachel Reeves firmed up the plans overnight ahead of a visit to the northeast alongside prime minister Keir Starmer and energy secretary Ed Miliband.
This will see support offered to so-called carbon capture clusters, including the HyNet scheme at Merseyside and another in the northeast, incorporating Teesside.
Some £21.7 billion worth of government funding will be offered from 2028 for 25 years to subsidise carbon capture at the industrial sites.
Plans are for this captured carbon to then be transported to storage in depleted subsea oil and gas reserves.
BP PLC (LON:BP) and Equinor, which are involved in the eastern cluster, are set to be among firms to provide private investment for the plans, according to Reeves.
“This game-changing technology will bring 4,000 good jobs and billions of private investment into communities across Merseyside and Teesside,” Reeves said.