International Public Partnerships reports steady performance, Wall Street hits new record highs

London open

The FTSE 100 is expected to open one point higher on Monday, having closed up 0.07% on Friday at 8,287.30.

Stocks to watch

International Public Partnerships reported steady portfolio progress between July and November on Monday, emphasising capital recycling through £40m in realisations and share buybacks totaling £38m. It reaffirmed its 2024 dividend target of 8.37p per share, a transition to quarterly dividend payments from 2025, and a stable yet slightly impacted net asset value per share due to macroeconomic factors. Operationally, it noted the successful repair of East Anglia One OFTO, progress on infrastructure investments such as BeNEX’s rail expansion, and strategic divestments in line with or above valuation expectations.

China-exposed companies will be in focus, after the country’s manufacturing sector grew at its fastest rate in five months in November, according to data from Caixin and S&P Global. The manufacturing PMI rose to 51.5, up from 50.3 in October and ahead of the 50.5 consensus forecast. This was the second straight month of expansion, helped by the highest rate of growth in foreign orders since February 2023.

Newspaper round-up

There is “no route to net zero” that ignores the real concerns of businesses, a cabinet minister has warned, as the government prepares to reduce financial penalties handed to car makers not selling enough electric cars. Ministers are also looking at how cheaper loans could be introduced to help people buy an electric vehicle (EV), after a wave of job losses and closures in which carmakers blamed the onerous fines they were facing. – Guardian

Fears of a global trade war have risen after Donald Trump threatened to impose 100% tariffs on countries in the Brics group if they create a new currency to rival the US dollar. Writing on his social media platform, Truth Social, on Saturday, Trump declared that he would also act if they supported another currency to replace the dollar. – Guardian

The billionaire former co-owner of Asda is on the verge of striking his first deal since breaking up the business empire built with his brother. Zuber Issa has lined up financing to pursue a deal for Petrogas Group, the UK arm of Irish forecourt giant Applegreen. It would mark Mr Issa’s first takeover since his decision to carve up EG Group, the petrol forecourt empire that he ran alongside his brother Mohsin for 20 years. – Telegraph

The boss of Stellantis has resigned after overseeing a sharp drop in car sales, as the Vauxhall owner struggles with the shift to electric vehicles. Carlos Tavares stepped down from his role as chief executive of the world’s fourth-largest carmaker on Sunday, with his departure accelerated following a split with the board. - Telegraph

The water regulator has blamed Moody’s, the credit rating agency, for stoking the industry’s financial crisis by not calling out operators such as Thames Water when they took on unsustainable debt. Ofwat has reproached Moody’s for certifying Thames Water’s debt as investment grade until recently, despite evidence of a fall in shareholder support and the group’s poor performance over a long period. – The Times

US close

US stocks rose on Friday with the Dow and S&P 500 both setting new record highs with trading volumes low in a shortened trading session.

Despite the closing bell ringing early on account of Black Friday – trading on the New York Stock Exchange finished at 1300 ET – the Dow finished 0.4% higher at 44,910.65, while the S&P rose 0.6% to 6,032.38.

The Nasdaq, meanwhile, gained 0.8% to 19,218.17 as the tech-heavy index closed in on all-time highs made two weeks ago.

The positive finish capped a strong November for US stocks, with the Dow in particular putting in its strongest monthly performance of the year (+7.5%).

The 10-year US Treasury yield dropped 8.9 basis points to 4.175% on Friday, continuing its decline after hitting a four-month high of 4.45% two weeks ago.