Feb 7, 2023
Numis Sees Signs of a Capital Markets Thaw: The London Rush
(Bloomberg) -- It’s not just London's streets experiencing a big freeze -- its capital markets, too, are locked in a state of inaction. That's hurting companies like Numis, whose bread and butter are primary and secondary offerings. Still, you're starting to see some green shoots, you're not alone: the broker says recent market performance is starting to give some institutional investors a bit of optimism. Something to put a spring in your step, perhaps.
Here’s the key business news from London this morning:
In The City
BP Plc: The energy giant will buy back nearly $3 billion worth of shares and increase its dividend by 10%, despite its fourth quarter net income missing expectations.
- The oil major posted a record profit for 2022, joining its peers by cashing in on soaring oil and natural gas prices
- CEO Bernard Looney said the company would invest an addition $8 billion in each of its energy transition and its oil and gas infrastructure by 2030
- “We are growing our investment into our transition and, at the same time, growing investment into today’s energy system,” Looney added
Numis Corporation Plc: The investment bank saw “very subdued” levels of equity issuance and corporate activity in the first four months of its financial year, saying the timing of a “meaningful recovery” is uncertain.
- They say recent market performance makes for a better “institutional appetite” for share offerings
Rolls-Royce Plc: Projects by the enginemaker and Vertical Aerospace Ltd. are among those that will receive more than £110 million in funding from the UK as part of a push to decarbonize the aviation industry.
UK House Prices: Britain’s housing market stabilized in January, breaking four months of decline, according to data from Halifax, one of the country’s mortgage lenders said.
- Its measure of property prices was unchanged last month after an 1.3% drop in January
Rishi Sunak plans to carry out a mini reshuffle of his cabinet as soon as today, people familiar with the matter told Bloomberg. Sunak will appoint a new Tory chair and officials have also held talks with ministers about splitting up the Department for Business, Energy and Industrial Strategy.
Meanwhile, the Bank of England and the UK Treasury stepped up work on creating a digital currency to sit alongside physical banknotes and sought to allay concerns that the work could threaten the stability of banks.
Danny Blanchflower, a former BOE policy maker, said “collapsing” house prices will push the UK central bank into a rapid pivot toward interest rate cuts.
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Toby Courtauld, the London office landlord known for his skill navigating the 2008 financial crisis, is set to rebuild.
UK retail sales disappointed last month as Britons facing higher household bills reined in their spending after splurging on Christmas festivities.
Finally, European banks will still be allowed to do some clearing in London after 2025, according to the head of the European Union’s top securities regulator.
Homebuilder Barratt Developments Plc is set to update the market tomorrow. Investors will be watching for signs of improving activity after “dire” reservations in the final months of 2022, says Bloomberg Intelligence analyst Iwona Hovenko. Comments about down-valuations of homes by lenders will also be in focus, according to Hovenko.
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