Weekly review

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Sharecast News | 29 Mar, 2019

London's FTSE 100 ended the week 71.6 points higher at 7,279.19.

London's FTSE 100 ended the week 71.6 points higher at 7,279.19.

Equity view

Tesco is launching on Monday a trial to remove plastic packaging from fruit and veg in its aim to cut down on plastic pollution.

Shares in Majestic Wine slumped on Monday as the company said it was rebranding under the name Naked Wines as it focuses on its online business, releasing capital from its retail and commercial operations.

Sports Direct has criticised Debenhams, after the beleaguered department store refused to sell billionaire Mike Ashley its Danish business.

The Shell brand entered the home energy market on Monday, as the company rebranded its First Utility acquisition as ‘Shell Energy’, sweetening the transition by switching all of its British residential customers to 100% renewable electricity

BP announced on Tuesday it will commit $100m to a fund for projects aimed at reducing greenhouse gas emissions from its Upstream oil and gas operations.

Ferguson reported a strong first half but the plumbing specialist cut its full-year guidance as growth has "moderated" in its markets.

Investors marked down shares of Carnival after the cruise line operator cut its guidance for full-year earnings per share, blaming higher fuel costs and headwinds in currency markets for the shortfall.

Samsung Electronics surprised markets after warning that first-quarter earnings would come in below expectations.

Apple’s long-awaited services update included a television streaming service, a virtual games arcade, a 'Spotify for news' and a titanium credit card but failed to wow investors and analysts.

Uber has acquired rival Careem for $3.1bn in its latest move to expand to the Middle East, it announced on Tuesday.

Barclays International and Barclays Bank Plc head Tim Throsby has decided to leave, Barclays said on Wednesday, as it announced a series of leadership changes to "capitalise on its strengths as a diversified consumer and wholesale bank".

Lloyd's of London suffered another year of losses in 2018 - albeit smaller than the previous year - as it took a hit from a number of natural disasters but said it had seen "green shoots of improvement".

Sports Direct boss Mike Ashley has proposed a possible 5p-per-share takeover offer of Debenhams as long as the department store group immediately appoints him as its chief executive and cancels its current refinancing plans.

Shares in Deutsche Bank slipped on Thursday following reports that the bank is considering raising as much as €10bn as part of ongoing merger negotiations with smaller rival Commerzbank.

Icelandic low-cost airline WOW Air has become the latest victim of the tough trading conditions in European aviation, ceasing its operations and stranding thousands of passengers.

Debenhams said on Thursday that it had achieved the requisite level of consent from its bondholders to carry out the next stage of its refinancing plans, which it has warned could lead to shareholders being wiped out.

The Renewables Infrastructure Group announced on Thursday that the fundraising undertaken under the initial placing, initial open offer, initial offer for subscription and intermediaries offer it announced on 7 March had successfully completed.

Ride-hailing company Lyft received a warm welcome as it debuted on Nasdaq on Friday, with its initial public offering priced at $72 a share for a debut valuation of $24bn.

CVS Group's shares shot upwards on Friday after the company said that its full-year results were set to outstrip expectations following a jump in sales over the first eight months of its financial year.

Glencore has arranged more than $14bn of bank loan agreements including oversubscribed short-term facilities of almost $10bn.

Debenhams has secured £200m of cash from its lenders but said it remained open to Sports Direct making a takeover offer or underwriting a rights issue or a loan of its own.

Economic news

Theresa May clung to power on Monday and prepared for another key week of Brexit votes in parliament after averting a halfhearted Tory party coup over the weekend.

The government is not planning to table a third 'meaningful vote' on its Prime Minister Theresa May's Brexit deal due to a continued lack of support.

Sterling rallied on Tuesday, on speculation that hard-line Brexiteers were starting to come around to Theresa May’s withdrawal deal.

The financial regulator is proposing changing affordability assessments as part of package of measures aimed at helping so-called mortgage prisoners.

Theresa May hopes to bring her Brexit deal back for a third 'meaningful vote' this week after receiving promises of support if she agrees to quit.

House of Commons speaker John Bercow appears to have blocked Theresa May's attempts to pass her Brexit deal through Parliament, stating that no meaningful vote could take place without significant changes to the proposal.

The pound sank to its lowest point in the week on Thursday as investors and analysts struggled to see a clear way forward for Brexit after a confusing night in Westminster and as the government planned a new vote on Friday.

The Independent Group of MPs announced on Friday that they will register formally as a political party, named Change UK, with former Conservative MP Heidi Allen taking the role of interim leader.

UK consumer confidence did not worsen in March despite mounting uncertainty as the original Brexit deadline loomed, a survey showed.

MPs voted down Theresa May’s withdrawal agreement by 344 votes to 286 on Friday, raising the possibility of a long delay to Brexit and perhaps a general election.

International events

US justice department special counsel Robert Mueller concluded that US President Donald Trump did not collude with Russia during the campaign of the 2016 general elections, but did not exonerate him from allegations that he might have obstructed justice.

A former US Federal Reserve chair has played down the prospect of America being hit by an imminent recession, after heavy falls in government bond yields rattled markets.

Europe’s top leaders told President Xi Jinping on Tuesday at talks held in Paris they wanted a fairer trading relationship with China.

US oil stockpiles jumped unexpectedly last week, as net imports increased slightly and refinery rates declined.

America's shortfall in trade on goods and services with the rest of the world saw a massive drop at the start of 2019, amid a sharp decline in purchases from abroad.

China has made "unprecedented" proposals to Washington on various issues, including the forced transfer of technology, Reuters reported, citing a US official, and Washington might be open to removing some of its tariffs on Chinese goods.

Donald Trump has called on the Organization of Oil Exporting Countries to up its output, triggering a slide in oil futures.

The number of Americans filing for unemployment benefits unexpectedly fell last week, according to figures from the Labor Department.

European council president Donald Tusk asked the EU Parliament on Wednesday to support the “increasing majority” of British people who do not want to leave the bloc.

Americans remained a bit more cautious than expected on spending at the start of the year, although inflation was slightly better behaved than anticipated too.

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