FTSE 100 set to open in the red

The FTSE 100 is expected to open its weekly account in the red, taking its cue from Asia’s main markets.

The index of blue chip shares will fall 27 points at the start of trade to 7296.98, according to London’s spread betting firms.

The week’s big news is likely to be generated by the annual meeting of central bankers at the Jackson Hole resort in Wyoming, which kicks off on Thursday.

According to the Guardian, pressure is mounting to bring to an end to the fiscal stimulus packages used to rescue ailing world economies during and after financial crisis.

“After a decade of low-interest rates and bond buying, a process known as quantitative easing, the Jackson Hole summit could be a platform to convince markets they can safely wean the world off cheap money,” the paper.

Michael Hewson, analyst at CMC, doesn’t expect the European Central Bank to add much to the debate with sources close president Mario Draghi insisting he won’t comment monetary policy when speaks later this week.

“This reticence to comment may have something to do with the fact that there appears to some concern on the governing council about an overshoot to the upside for the euro, particularly given the recent weakness of the US dollar,” CMC’s Hewson.

Back here in the UK, the final week of August seems likely to be a fairly busy one for scheduled news from Britain’s big companies. There are updates from miner BHP Billiton, housebuilder and troubled construction group .

  • Pound worth US$1.286

  • Brent crude down 2 cents at US$57.20 a barrel

  • Gold off 70 cents at US$1,290.90 an ounce.

Business Headlines

  • The pace of global dividend growth grew in the second quarter of 2017, thanks to more evenly spread economic growth and a revival in banking sector payouts following years of stress tests that have eroded profitability – FT.

  • is gate-crashing Warren Buffett’s deal to buy US transmission company Oncor, reaching an agreement worth US$9.45bn – FT.

  • Asset managers Union Investment, Erste and Acadian, have banned investments in German carmakers from some of their funds, after an investigation of alleged industry collusion was announced – FT.

  • The European Central Bank may have little choice but to wind down its €2trln bond-buying programme next year — whether eurozone inflation picks up, or not – FT.

  • Snap backer to invest millions in currency unicorn Transferwise – Times.

  • Two out of three bosses at the UK’s biggest companies have not been trained in how to deal with a cyberattack – Times.

  • Fat cats get less of cream as FTSE 100 Chiefs’ pay falls – Times.

  • The Government is preparing to water down plans to curb excessive Executive pay, amid fears of gridlock in parliament and claims that current legislation is “working well” – Telegraph.

  • The Financial Times has reported a small profit for its first year under Japanese ownership, following its debt-fuelled £844mln takeover by the publisher Nikkei – Daily Telegraph.

  • Pension cold-calling ban to include texts and emails in effort to tackle fraud – Guardian.

  • US retailer Walmart plans to use drones to deliver its goods – Daily Mail.

  • Usain Bolt to open Jamaican takeaway chain – Daily Mail.

  • UK firms set for dividend record this year thanks to a bounceback in the mining sector – Daily Mail.

  • Wealth manager has confirmed it is in exclusive talks with smaller financial services provider Smith & Williamson over a possible all-share merger – Daily Mail.

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