The Market Close – Close Brothers finds itself down 6.8% as it warns the economic outlook appears bleak.

Today's Closing Update

U.S. Shares rose, helped by a recovery in technology stocks. UnitedHealth, Apple and IBM contributed the most to gains in the U.S.30. Apple traded more than 1% higher, while Facebook gained more than half a percent.

 

European and U.K. Shares were flat after a selloff in technology shares on Wall Street and as tensions over Korea persisted, while investors were awaiting further clues on whether U.S. interest rates will rise in December.

 

UK mortgage lending remained largely unchanged but consumer credit eased lower last month, according to the latest figures from the banking industry, while businesses began to hold onto more cash in the face of political and economic uncertainty. Approvals for house purchase mortgages from the main high street banks increased to a six-month high of 41,807 in August from 41,644 in July and a nine-month low of 40,424 in June. The consensus forecast was for no change and August’s level was 5.5% below January’s 44.3k, above the post-referendum average of 40.7k and below the previous 10 years’ average of 51.7k.

 

As well as hitting half-year targets, the AA has appointed former Expedia and Uber executive Simon Breakwell its permanent chief executive to “sharpen focus” on the parts of the businesses where there are “most value and future profit opportunity”. The roadside assistance and insurance group generated earnings before interest, tax, depreciation and amortisation of £193m in the six months ended 31st July, a 1% increase on the same period last year, on revenue up 1% to £471m as membership rose modestly to 3.33m from 3.32m.

 

Safestore sealed the £56m cash acquisition of Stork Self Storage, trading as Alligator, that it expects to boost earnings immediately upon completion. The purchase, which the company announced overnight and will be funded from existing group debt facilities, adds 12 mostly freehold outlets to expand Safestore’s portfolio to 146 stores, of which 120 are wholly owned and 26 are in Paris. Alligator’s pro forma EBITDA after rent is currently roughly £4.3m per year on turnover of £7.5m.

 

Close Brothers said that profit for the year rose 13% as profits rose across all three of its divisions, although it warned over the impact of the longer-term economic outlook and Brexit on its customers. In the year to the end of July, operating profit before tax increased to £258.6m from £228.5m, while adjusted operating profit was up 13% to £264.8m. In the securities arm, Winterflood, operating profit was up nearly 50% to £28.1m, underpinned by high levels of retail trading activity throughout the year.

 

It was calm seas for Carnival during the third quarter as stronger demand drove a five per cent improvement in cruise tiket pricing and the company guided towards the upper end of its previous guidance for profits. That was despite the recent hurricanes in the Caribbean. For the three months to 31st August, the cruise ship operator reported an 8% increase in total revenues to reach $5.5bn, which resulted in a nearly 20% jump in adjusted earnings per share to $2.29.

 

Equifax has announced that its chairman and chief executive, Richard Smith, is stepping down with immediate effect. The move comes as Equifax struggles to rebuild its reputation after it emerged earlier this month that the firm had suffered a massive data breach. Data on up to 143 million Americans may have been stolen by hackers between mid-May and July.

 

Oil prices fell after investors took profit following a rally to 26-month highs spurred largely by threats from Turkey to cut crude exports from Iraq’s Kurdistan region.

 

Gold prices eased under pressure from the dollar, with investors booking profits after rising tensions between North Korea and the United States pushed the metal to a one-week high.

Market Close

Market	Index	Change	% Change
UK 100	7,285.7	-15.6	-0.2%
UK 250	19,503.2	-63.2	-0.3%
GER 30	12,595.5	+0.7	+0.0%
FRA 40	5,263.2	-3.9	-0.1%
U.S. 30	22,305.45	+9.36	+0.0%
U.S. 500	2,497.8	+1.1	+0.0%
OIL (BRENT)	58.43	-0.59	-1.0%
GOLD	1,300.41	-10.37	-0.8%

UK Risers & Fallers

Company	Price	Change	% Change
Safestore	424.75	+23.9	+6.0%
NMC Health	2718	+73	+2.8%
Carnival	4865	+127	+2.7%
Card Factory	287.7	-65	-18.3%
Shire	3741.5	-90.5	-2.4%
WPP	1399	-24	-1.7%

Reported Economic Data

Time/Date	Previous	Forecast	Outcome
5:45pm: Fed Chair Yellen Speaks	–	–	–
3:00pm: U.S. CB Consumer Confidence	122.9	119.9	120.4