FTSE remains near record peak
|The FTSE 100 has edged back above the 7500 level this morning and remains not far from its all-time high as the index remains well-supported and finding ample buying support on dips. The pound is trading lower across the board with the biggest fall coming against the New Zealand dollar which is higher by almost a percent against sterling.
22 killed in Manchester bombing
A suicide attack last night inside the Manchester Arena has killed at least 22 people and injured a further 59. The explosion occurred at the end of a concert by US singer Ariana Grande and police have said the lone male attacker, who died in the blast, detonated an improvised explosive device. There are still little concrete facts as to who the attacker was, or what his motives were with the Chief Constable of the Greater Manchester police stating that there is a fast moving investigation that is now attempting to establish whether the attacker was acting alone or as part of a network. Whilst the pound is trading a little lower today there hasn’t been a big market reaction to this tragedy with the possible implications that it could have for the upcoming election still to be seen.
RBS rises as Bank seeks to avoid court
One of the best performing stocks in London this morning is the Royal Bank of Scotland, with the share price higher by a little over 2%. Whilst Lloyds Bank has been almost celebrated in recent weeks after finally being returned to full private ownership with a profit recorded for the Treasury, the situation at RBS offers a stark contrast. With both banks being bailed out by the government in the wake of the 2008 financial crisis the Treasury retains a significant stake in RBS and has stated that it would be will likely take a loss on its position. A widely anticipated High Court trial between the bank and disgruntled investors looks set to be adjourned once more with a possible last minute settlement being discussed. The claimants allege they were misled ahead of a £12bn rights issue in April 2008, shortly before the bank’s true perilous position was revealed and the government stepped in to bail them out. Around 87% of number of claimants have already settled out of court, but there remains 9,000 who are pushing hard for a higher level of compensation and if RBS can’t satisfy this then the defendants, including disgraced former CEO Fred Goodwin, will testify under oath.
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