GCIWill the Markets see a Bailey Bounce?
Taking Stock on Thursday 1st February 2024
Will the Markets see a Bailey Bounce?
Companies mentioned on, "Taking Stock" today:
02:45 Shell #SHEL
03:10 Deliveroo #ROO
05:45 Next #NXT
07:20 & 27:00 Venture Life #VLG
07:30 & 25:55 Pets at Home #PETS
08:40 Helium One #HE1
11:15 easyJet #EZJ
12:50 Destiny Pharma #DEST
17:19 Cambridge Cognition #COG
21:58 & 26:33 Baron Oil #BOIL
23:13 Bushveld Minerals #BMN
24:23 Power Metal Resources #POW
24:55 Tekcapital #TEK
30:10 Tertre Rouge #TRA
32:30 & 39:05 Made Tech #MTEC
35:40 CAP-XX #CPX
36:53 Gresham House Energy Storage #GRID
TOP BUSINESS STORIES
Red Sea disruption hits UK manufacturing at start of 2024
British manufacturing started 2024 on a weak footing, recording an 18th consecutive month of contraction as orders fell and disruption to Red Sea shipping delayed deliveries.
The S&P Global Purchasing Managers' Index (PMI) for manufacturing rose to 47.0 in January from 46.2 the month before, a two-month high but below an earlier preliminary estimate of 47.3 which had been the highest since April 2023. Readings below 50 represent a fall in activity.
Shell reports lower profits as energy prices cool
Oil and gas giant Shell has reported lower annual profits due to energy prices falling last year.
Profits were $28.2bn (£22.3bn) in 2023, down from $39.9bn in 2022 which was the company's highest earnings in its 115-year history.
Energy firms made record earnings when oil and gas prices soared in the aftermath of Russia's invasion of Ukraine amid fears of supply problems.
Shell confirmed it paid £106m in UK windfall tax for 2022. A company spokeswoman said the company paid £1.1bn in overall tax in the UK for 2023, of which £371m was taxed under the Energy Profits Levy.
Meanwhile, Shell said it returned $23bn to its shareholders in 2023, and was now increasing its dividend by 4% and beginning a $3.5bn share buyback programme over the next three months.
Jeremy Hunt: Less scope for tax cuts in Budget
Jeremy Hunt has said there is likely to be less scope for tax cuts in the March Budget than there was last autumn.
The chancellor told the BBC he wanted to "lighten the tax burden" to help grow the economy. But he said this had to be done in a "responsible" way.
In last year's Autumn Statement, when the government sets out its tax and spending plans, Mr Hunt announced a cut to the main rate of National Insurance from 12% to 10%.
In January, Mr Hunt repeatedly hinted that he was aiming to cut taxes in the spring Budget.
On Tuesday the International Monetary Fund (IMF) warned the UK against further tax cuts, saying preserving public services and investment implied higher spending than was reflected in the government's current plans.
Labour promise not to raise corporation tax if elected
Labour has pledged not to increase corporation tax if elected, as part of a drive to win business support ahead of the general election.
Shadow chancellor Rachel Reeves said she would cap the tax at 25% but could cut it to boost "competitiveness".
Labour's pledge would provide "stability" to business, who have seen 26 changes to business taxes over the last parliament, she said.
Ms Reeves was speaking at Labour's day-long summit with business leaders.
In a keynote speech, the shadow chancellor said "investment has cratered" in the UK, due 14 years of economic instability under Conservative governments.
Speaking to an audience of FTSE 100 chief executives and international investors, she said: "Be in no doubt, we will campaign as a pro-business party - and we will govern as a pro-business party."
Disclaimer & Declaration of Interest
The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. Vox Markets may receive payment from companies mentioned for enhanced profiling or publication presence. The writer may or may not hold investments in the companies under discussion.