Mixed fortunes for metal extractors on miners' Wednesday
London open
The FTSE 100 is expected to open 26 points higher on Wednesday, after closing down 0.01% at 7,150.34 on Tuesday.
Stocks to watch
Mining giant BHP Billiton posted its operational review for the half year to 31 December on Wednesday, with record production achieved at Western Australia Iron Ore, and total iron ore production of 118 Mt - a 4% rise year-on-year. The FTSE 100 company also saw an increase in metallurgical coal production - up 1% to 21 Mt - though all other sectors were softer, with energy coal down 4% to 14 Mt, copper reducing 7% to 712 kt, and petroleum production falling 15% to 106 MMboe.
Fresnillo said it achieved record production of gold and silver production in 2016, even though the miner experienced some delays in implementing its turnaround plan. It confirmed record yearly silver production of 50.3m ounces, including silverstream, in the 2016 calendar year, up 7.1%, compared to the previous year and in line with guidance, mainly due to the start of of the first phase of production at the San Julian mine in Mexico. The FTSE 100 firm also delivered record annual gold production of 935.5k ounces, an increase of 22.8% and ahead of guidance, due to reduced gold inventories at Herradura and an an improved average speed of recovery at the Noche Buena site.
Chilean copper giant Antofagasta enjoyed a strong fourth quarter performance and kept cash costs for the year below its guided level. The final quarter of 2016 saw copper production 205,500 tonnes, up 13.8% versus the previous quarter to lift production for the full year to just under 710,000 tonnes, 12.5% higher than the prior year.
Newspaper round-up
Last-ditch proposals to overhaul the way the Link cash machine network operates have been tabled in a bid to avert charges for bank customers withdrawing money at thousands of ATMs. A number of ideas have been put forward in an effort to head off a breakup of the 70,000-strong network amid fears that if banks and building societies drop Link, thousands more machines could be forced to charge for withdrawals. - Guardian
The price of some toys could rise by up to 15% as a result of the plunging pound, manufacturers have warned. Lego and the producer of Peppa Pig merchandise are among the companies to have announced price rises recently. Natasha Crookes, spokeswoman for the British Toy and Hobby Association (BTHA), said most UK toy makers, who typically design products in Britain but have them manufactured and imported from east Asia, had managed to contain price rises until now. – Guardian
Businesses across the EU are reeling from the "shockwaves" sent by Theresa May when she announced the UK will leave the single market, the CBI's director general has warned. Carolyn Fairbairn told an audience of French businesses in London that they should unite with British companies to stand up for continued links with the EU post-Brexit. – Telegraph
The world is becoming a more corrupt place but the UK remains one of the “cleanest” nations, despite last week’s record-breaking fine for Rolls-Royce after it admitted bribery spanning decades. Britain has been ranked the 10th most honest nation by watchdog Transparency International, which conducts an annual survey analysing corruption levels worldwide. – Telegraph
Services associated with clearing euro-denominated securities will be forced to leave London, costing the City up to 85,000 jobs as a result of Brexit, a former head of the Swiss central bank has warned. Philipp Hildebrand, chairman of the Swiss National Bank from January 2010 to January 2012, told a conference in Dublin yesterday that it was “very clear” that core financial functions such as clearing would leave London once the UK withdrew from the European Union. – The Times
Royal Bank of Scotland mistreated businesses because it was rushing to meet the terms of its taxpayer bailout in 2008, a claim lodged in the High Court has alleged. Stuart Wall is suing RBS for up to £400 million, alleging that the bank’s Global Restructuring Group caused the demise of his Opal Property Group, which collapsed into administration in 2013. – The Times
US close
US stocks closed in positive territory on Tuesday, with the S&P 500 and Nasdaq reaching record highs as traders waded through a raft of corporate earnings.
The S&P 500 rose 0.7% to 2,280.07 points, the Nasdaq gained 0.9% to 5,600.96 points and the Dow Jones Industrial Average advanced 0.6% to 19,912.71 points.
Oil prices rose with West Texas Intermediate up 0.67% to $53.11 per barrel and Brent crude up 0.23% to $55.36 per barrel.
In currency markets, the dollar recovered from heavy losses in the wake of President Donald Trump’s protectionist inauguration speech.
The greenback rose 0.18% against the pound, 0.29% versus the euro and 0.97% versus the yen.
Trump on Tuesday met with the bosses of the largest automobile manufacturers in the US, including Mary Barra of General Motors, Mark Fields of Ford and Sergio Marchionne of Fiat Chrysler. The new President told the chief executives that environmental regulations are "out of control" and vowed to make it easier for the companies to open assembly plants in the US.