The Market Close - Bank of England signals upcoming rate rise - Collins Sarri Statham Investments

Today's Closing Update

U.S. Shares dropped as investors continued to brace for higher interest rates and grapple with a recent pickup in volatility.

European shares fell, as investors waded through the latest batch of corporate earnings.

Debenhams said it is planning to potentially cut 320 store management roles as part of a ongoing restructuring process. The clothing and homewares retailer intends to redeploy staff affected by the cuts “where possible” and was currently consulting with staff. In total, the 320 roles would represent around a quarter of all of Debenhams store management roles.

The Bank of England decided to stand pat on rates on “Super Thursday” as widely expected, but hinted at somewhat earlier- and deeper-than-expected rate hikes. The central bank raised its near-term growth projections, citing strengthening global growth, and forecast inflation to remain above 2% target over the forecast horizon. At the rate-setting meeting, the Monetary Policy Committee, governed by Mark Carney, unanimously voted to maintain the benchmark rate at 0.50%. The bank had previously raised its key rate in November 2017, which was the first hike in a decade.

A rising wage bill for players has cut into the latest quarterly profits from Manchester United. For the three months to 31 December the club made an operating profit of £28.7m, down 23% on the same period in the previous year. Wages, which make up half of the clubs costs, rose 9.4% to £69.6m. Players were paid more because Manchester United was back in the UEFA Champions League, but that also meant higher income from TV. Broadcasting revenue was £61.6m, up 17% on the previous year, with total revenue for the quarter up 3.8% to £163.9m.

Twitter has reported its first quarterly net profit helped by a rise in video advertising sales. The news sent the price of Twitter shares surging 26% in pre-market trading in New York. That was despite the number of people using the social network coming in below expectations. Twitter’s previous failure to make a profit had confounded investors given its widespread use and popularity among celebrities and politicians. Net profit was $91.1m (£65m) in the fourth quarter of 2017, compared with a loss of $167.1m for the same period a year ago.

The North Sea’s Forties pipeline system that carries 40% of crude oil has begun flowing again after a short halt, the second in two months. “The start-up of the Forties Pipeline System is now underway following the successful resolution of an issue on Feb. 7 with a feed control valve,” owner Ineos said in a statement.

Oil Prices touched their lowest in six weeks after data showed U.S. crude output had reached record highs and the North Sea’s largest crude pipeline reopened following an outage.

Gold Prices edged higher, with a slight pullback in the dollar and some weakness in the U.S. stock market giving prices enough support to try for their first gain in five sessions.

Market Close

Market	Index	Change	% Change
UK 100	7,170.7	-108.7	-1.5%
UK 250	19,327.7	-364.0	-1.9%
GER 30	12,260.3	-330.1	-2.6%
FRA 40	5,151.7	-104.2	-2.0%
U.S. 30	24,479.55	-413.80	-1.7%
U.S. 500	2,652.7	-29.0	-1.1%
OIL (BRENT)	64.56	-0.95	-1.5%
GOLD	1,316.76	-1.63	-0.1%

UK Risers & Fallers

Company	Price	Change	% Change
WPP	1301	+39.5	+3.1%
Just Eat	803.6	+16.2	+2.1%
Beazley	560	+29	+5.5%
Ashtead	1955	-101	-4.9%
DCC	6740	-335	-4.7%
Sophos Group	512.5	-108.5	-17.5%

Reported Economic Data

Time/Date	Previous	Forecast	Outcome
12.00pm: U.K. BOE Inflation Report	–	–	–
12.00pm: U.K. MPC Official Bank Rate Votes	0-0-9	0-0-9	0-0-9
12.00pm: U.K. Monetary Policy Summary	–	–	–
12.00pm: U.K. Official Bank Rate	0.5%	0.5%	0.5%