Good morning. The FTSE 100 will open in red as bond sales continue to ignite inflation concerns and weigh on equity markets.
It comes after Chancellor Rishi Sunak on Wednesday announced the first corporate tax hike in nearly half a century as the government seeks to repair public finances.
5 things to start the day
1) First corporate tax hike in nearly 50 years to raise more than £ 17bn: The 25% increase will not take effect until April 2023, while the new “super-deduction” will give companies an incentive to invest in new equipment.
2) Amazon first opens a cashless supermarket in the UK: The West London store is the latest move from the online retailer to the UK food market and may herald a larger attack on supermarkets.
3) The bank of the steel magnate Gupta has forced to pay the deposits: Regulators have told Wyelands Bank to reimburse all retail customers after a cash injection by Mr Gupta.
4) Google will stop selling web ads based on your browsing history: The world’s largest digital advertiser says the proliferation of web tracking has led to “erosion of trust” and privacy issues.
5) Sainsbury’s reduces 500 jobs and 650 at risk: He said any savings would be invested in its core food operations, with plans to create a simpler, more agile and efficient business.
What happened overnight
Asian equities fell on Thursday, following a drop on Wall Street, while another rise in bond yields upset investors who worry higher inflation could cause central banks to raise very low interest rates.
Japan’s Nikkei 225 lost 1.9 points against 29,004.41 and Hang Seng in Hong Kong fell 2.5 points to 29,129.81. Australia’s S & P / ASX 200 lost 1.1 points against 6,742.90.
The Shanghai composite index fell between 1.9 and 3,509.58. Investors anticipate that the policies outlined during the annual session of the National People’s Congress, a mostly ceremonial legislature that meets Friday, may point to a tightening of monetary and government stimulus.
Kospi, South Korea, lost 1.5% after the central bank reported that the economy contracted in 2020 for the first time since 1998.
It will arrive today
Corporate: Galliford Try, Manchester United (Provisional results); Admiral Group, Alliance Trust, Aviva, Chemring Group, Coats, Entain, Hunting, John Laing, Meggitt, Melrose Industries, Morgan Advanced Materials, Rathbone Brothers, Rentokil Initial, Schroders, Spire Healthcare, Tyman, Vesuvius, Vistry, William Hill (Full year)
Economy: New SMMT vehicle registrations, PMI construction (UK), retail sales, unemployment (euro area), jobless claims, factory orders (WE)