FTSE 100 Live: Pound falls as Hunt raises taxes at Autumn Statement



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Utilities hit as Chancellor Hunt introduces windfall tax on electricity firms

Utility stocks were lower after Jeremy Hunt announced a windfall tax on electricity generators, alongside and increased levy on oil and gas companies.

There will be a temporary tax of 45% on electricity generators, while the windfall tax on oil and gas firms will go up to 35% from 25%.

SSE, a generator, fell 62p or almost 4% to 1582p. United Utilities fell 12p to 998p, down 1.2%. Centrica lost 1.5% or just over 1p to 86p.

National Grid, which does not generate power but runs the network that distributes it, fell 17p to 994p, a drop of 17p.

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Top rate of tax threshold falls and dividend relief falls

The rate at which people begin to pay the top rate of tax is set to fall, chancellor Jeremy Hunt has said.

The top rate threshold will drop from £150k to £125k, while the dividend allowance will be cut from £2,000 to £1,000.

The capital gains tax exemption will fall from £12,300 to £6,000.

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Pound falls as Hunt outlines independent OBR forecasts on inflation and recession

Sterling fell towards $1.18 as the Chancellor outlined inflation and growth forecasts from the independent Office for Budget Responsibility.

Jeremy Hunt said the OBR said inflation would average 9.1% this year and 7.4% in 2023. GDP, the total size of the goods and services produced by the economy, is expected to contract by 1.4% next year.

The pound fell 0.8% to $1.1811.

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Hunt introduces two new fiscal rules to restore credibility

Jeremy Hunt has said he has introduced two new fiscal rules in a bid to restore the government’s fiscal credibility.

He said: “I also today confirmed two new fiscal rules. The first is that the underlying debt must fall as a percentage of GDP by the fifth year of a five-year rolling period.

“The second, that public sector borrowing, over the same period. Must be below 3% of GDP.

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Hunt rules out changing the Bank of England’s remit

Jeremy Hunt has ruled out changing the remit of the Bank of England.

The chancellor said: “The Bank of England, which has done an outstanding job since its independence, now has my wholehearted support in its mission to defeat inflation and I today confirm we will not change its remit.”

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Hunt warns of ‘international crisis’ as he vows to protect the vulnerable

Jeremy Hunt has warned of an ‘international crisis’ as he vows to protect the vulnerable.

He said: “We are not alone facing these problems but today our plan reflects British values ​​as we respond to an international crisis. We also protect the vulnerable because to be British is to be compassionate.”

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Jeremy Hunt begins speech

Jeremy Hunt has stood up at the dispatch box to begin his Autumn Statement speech,

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Pound just under $1.19, London stocks lower and government debt yields around 3% into fiscal statement

Here’s a snapshot of the current trading across the UK’s major financial assets as the wait for detail on Chancellor Jeremy Hunt’s hotly anticipated, redrawn tax and spending plans enters its final minutes.

From the government’s plans for its energy support plan after April, to independent forecasts on the economy from the Office of Budget Responsibility, there are a host of factors that could move markets. While Hunt is seen as a safe pair of hands after the chaos sparked by the previous “mini”-Budget, investors will be keeping close watch on Westminster.

In the meantime:

  • FX: The pound is down 0.4% at $1.861
  • Stocks: FTSE 100 is down 0.6% at 7309.30
  • Stocks: FTSE 250 is down 0.4% at 19044.92
  • Gilts: The yield on benchmark 10-year government bonds is at 3.181%.
  • Gilts: The yield on 5-year government bonds is at 3.209%.
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Drop in London property valuations hits Great Portland Estates

Great Portland Estates, one of central London’s major landlords, took a hit today from the revaluation of its property portfolio after a turbulent time for the City and the West End.

The FTSE 250 company reported a loss of almost £87 million and acknowledged that property values ​​are under pressure. But it was upbeat on its prospects and the capital’s ability to get through the looming recession.

Toby Courtauld, Chief Executive, said: “Whilst economic challenges may persist in the near term, our experience is that many customers are looking through the downturn in assessing their real estate needs, seeking to trade up to great spaces that are fit for future working. patterns.”

The company is entirely focused on central London and has always highlighted the cyclical nature of its business. Courtauld pointed to its “plan to deliver our £1.1 billion capex program into this shortage and a recovering economy”.

GPE’s shares fell 18p to 526p, a slip of just over 3%.

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Mitie shares up 8%, Ocado leads FTSE 100 lower

Reassurance from outsourcer Mitie that it is more than filling the gap left by the end of profitable Covid contracts helped trigger a surge for its shares today.

The FTSE 250 company, which employs 68,000 people in facilities management and other services, cheered investors with better-than-expected half-year results and improved guidance for an annual operating profit of at least £145 million.

It said contract wins, acquisitions and price inflation meant it had more than replaced the short-term boost from Covid work such as testing centers and quarantine services.

Mitie’s new contracts include the Dungavel and Derwentside immigration removal centres, which helped care and custody revenues to improve 32% on a year earlier.

Shares rose 8% or 6.2p to 80.5p and left Mitie up more than 20% this year, although analysts at Jefferies today highlighted a target price of 99p.

The performance by Mitie, which is handing £10 million to staff through a winter support package, failed to prevent the FTSE 250 index falling 71.89 points to 19,040.51.

The FTSE 100 index drifted 38.51 points to 7321.68, with Spirax-Sarco Engineering among the fallers despite the thermal energy specialist leaving guidance unchanged.

It fell 4% or 550p to 11,035p, while Ocado surrendered more of its recent gains by dropping back 5% or 37p to 689p.

Gaming firm Flutter Entertainment fell 100p to 11,190p after hosting an event in New York to showcase US business FanDuel.

The operation, which has a 42% share of US online sports betting and 18% in iGaming, is on course for profitability in 2023 and is seen by Flutter boss Peter Jackson as an enormous value creation opportunity

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