SSE still confident in higher dividend, Severn Trent lifts expectations
London open
The FTSE 100 is expected to open 13 points higher on Tuesday, after closing down 0.92% at 7,118.48 on Monday.
Stocks to watch
In an update on third quarter trading, energy company SSE confirmed it still expected to increase its dividend by at least the same rate as inflation this year and in the future. For the nine months to 31 December, energy consumption was higher due to the weather but the period saw volatile wholesale energy market conditions and relatively dry and still weather during November and December that led to low output of renewable energy.
Water and wastewater company Severn Trent released a trading update for the three months to 31 December on Tuesday, saying that after a “strong operational performance” in the third quarter, it now expected net customer outcome delivery incentive rewards for the full-year 2016-17 to be ahead of previous guidance of £15m. The FTSE 100 firm did caution that there remained two “unpredictable” winter months ahead, though it did anticipate at least meeting or exceeding the level achieved last year, which was £23.2m.
Property management firm British Land’s Mayfair commercial development is 83% let, just four months after its launch in September 2016. The FTSE 100 company’s 51,000 square feet office space at 7 Clarges Street is 83% let after securing terms with Capula Investment, Quantum Pacific and Fortress Investment Group.
Newspaper round-up
Theresa May’s Brexit bill is likely to pass through the Commons without major amendment next week, as Conservative rebels are backing away from supporting changes proposed by Labour or other opposition parties. A band of Tory MPs fighting against a hard Brexit are indicating they have been largely satisfied by the prime minister’s promise of a white paper, which they believe could be published as early as Thursday. - Guardian
The City's top lobby group has performed a dramatic u-turn on Brexit, scrapping its previous campaign to remain in the EU and instead hailing the vote to leave as “unprecedented opportunity” for the UK to develop a powerful new set of trade and investment policies. The TheCityUK group, which represents banks, finance firms and the professional services industry, now believes that Britain’s departure from the EU represents “a once-in-a-generation opportunity” for a strategic re-think of commercial relationships with the rest of the globe. - Telegraph
Consumers have started 2017 with renewed confidence in their personal financial situation but remain concerned about the wider economy, despite record high employment and the UK economy growing faster than any other G7 nation in 2016. The GfK consumer confidence index rose two points in January to reach a balance of -5, having plunged to -12 in July after the Brexit vote. - The Times
The biggest UK regional cities are reporting record levels of construction activity, boosted by new transport links and the rise in popularity of city centre living. Birmingham, Manchester, Leeds and Belfast have all seen a significant increase in development across a number of sectors, according to the latest Deloitte crane survey. - Telegraph
Mastercard has won a £500 million courtroom battle against retailers over its fees - in a blow for consumers who claim they were ripped off. Firms including Next, Debenhams, Morrisons and Topshop claimed they were overcharged on so-called interchange payments paid by shops to credit and debit card issuers when customers buy goods using plastic. - Mail
US close
Following President Donald Trump’s travel ban for arrivals from seven predominantly Muslim countries, US equity markets were on the back foot on Monday as the Dow slipped past the 20,000 mark, the milestone it passed just last week.
Investors were also looking ahead to a busy week that includes a Federal Reserve rate decision and non-farm payrolls.
The Dow Jones Industrial Average fell 0.61% to 19,971.13, the S&P 500 was down 0.6% to 2,280.90 and the Nasdaq 100 shaved off 0.75% to 5,129.33 at the close.
On Friday, Trump put a 120-day hold on allowing refugees into the country, an indefinite ban on any refugees from Syria and a 90-day ban on citizens from Iran, Iraq, Libya, Somalia, Sudan, Syria and Yemen.
The ban also applies to anyone with dual nationality including any of those countries.
Alphabet’s Google, Facebook, and Microsoft were among the companies who criticised Trump’s temporary ban on immigration, and the Nasdaq was at lowest since September during Monday’s session with tumbling technology stock.