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Investors broke Germany’s electoral deadlock in the wake of the FTSE 100 index and other European markets opening up.

A weekend without major developments on the Evergrande debt crisis added to the mood, as oil prices continued to rise amid global supply fears. Brent crude was trading at nearly $ 79 a barrel, helping BP and Royal Dutch Shell shares to rebound 2%.

Rolls-Royce rose 4% – continuing a recent rebound – as the British company unveiled a major deal to power the US Air Force’s B-52 bombers.

The pound, meanwhile, held up against the US dollar despite seeing many gas pumps run dry as panic buying took hold.

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FTSE ends positively – fair

The FTSE 100 closed in the green, but narrowly. The London index of major stocks ended up 12 points to 7,063, a gain of 0.17%.

Here are the main stories of the day:

• Rolls-Royce shares peaked in 18 months after the engine manufacturer announced a 30-year agreement to supply engines to the US Air Force’s B-52 fleet and sold Spanish company ITP Aero for £ 1.45 billion. The shares closed 11.3% higher.

That’s all about us today. Good night see you tomorrow.

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Oil prices continue to rise

European markets are expected to open higher despite yesterday’s inconclusive German general election result.

The prospect of a three-party coalition led by the SPD came as no surprise, meaning investors remain focused on events in China and various crises in the global supply chain.

Michael Hewson, chief market analyst at CMC Markets, expects the FTSE 100 index to open 42 points higher at 7,093.

Asian markets started the week in the spotlight, helped by the lack of major developments regarding the future of heavily indebted Chinese real estate company Evergrande.

The price of oil continues to rise, with Brent crude rising more than 1% to exceed $ 79 a barrel as traders continue to worry about supply constraints.

Jeffrey Halley of Oanda warned: “With OPEC + struggling to meet current production targets and US shale production returning to a snail pace from last year, global energy problems are expected to continue. as winter approaches the northern hemisphere. “

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Aldi achieves record annual sales, expects massive hiring surge

Aldi intends to create another 2,000 jobs in the UK next year as the grocer grows following record sales.

The company, now Britain’s fifth largest supermarket, plans to invest £ 1.3 billion over the next two years (2022-2023) to increase its share of the UK grocery market.

Aldi plans to expand in UK

/ aldi united kingdom
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Not just a supply shock

Jim Reid of Deutsche Bank said: “The whole debate right now is about supply shocks and it is not inconceivable that things could get very complicated on this front in the weeks and months to come. “

He said it was wrong to focus on the fact that this is simply a supply shock, as authorities have massively boosted demand, in some cases more than would have been the case. without Covid.

Reid added: “If the authorities hadn’t reacted so aggressively, we would have ample supply for demand and a lot of deflation. Remember the negative oil prices at the start of the pandemic. “

He warned that the risk of policy error on the part of central bankers is high: “The problem with forward guidance is that markets demand to know now what they could do in the coming months and quarters, this which leaves them a bit exposed in times of uncertainty. “

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The engine case lifts Rolls

A significant boost for Rolls-Royce with the award of a major contract by the US Air Force was one of the highlights of a quiet start to the week for London news.

Shares rose another 4% to 138.34p to continue their recent rally as Rolls said the US-made F-130 engine will power the B-52 for the next 30 years.

Rolls has a long history of supplying electricity to US military customers, having delivered thousands of engines to the US Air Force over more than 70 years.

The British company will build and test the F130 engines at its plant in Indianapolis, Indiana, after the recent completion of a $ 600 million investment in the manufacturing campus.

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BP shares up 2%

Shares of BP and Royal Dutch Shell rose 2% to leave the FTSE 100 index 55.92 points higher at 7,107.40.

The pair’s strong start to the week reflects a Brent crude price above $ 79 a barrel, after rising for five consecutive sessions due to a tight supply.

Rolls-Royce was the biggest gain after jumping 4%, while Prudential added 36p to 1,428p after pricing its £ 2 billion fundraiser in Hong Kong.

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Post-election blockade

The German election produced a much closer result than the opinion polls predicted, with the SPD winning the most votes just ahead of the CDU / CSU bloc.

Coalition negotiations are expected to take weeks, if not months, which means many of the most extreme policy proposals from all sides are likely to be watered down.

UBS believes that the most important development for financial markets will likely be greater regulatory, fiscal and political concentration aimed at making Germany smarter, greener and more digital.

The bank added: “We would likely see renewables developers, automakers turning to electric vehicles, semiconductors, renewables operators and industrials as the sectors most likely to benefit. . “

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Grant Thornton fined £ 2.3million for Patisserie Valerie audits

Grant Thornton was fined £ 2.3million and a severe reprimand for his failure to spot the fraud in Patisserie Valerie’s books.

The Financial Reporting Council (FRC) said it fined Grant Thornton and reprimanded him for “serious breaches” over several years as part of his work to audit Patisserie Valerie’s books. The auditor was originally awaiting a £ 4million fine but it was reduced after the firm admitted to wrongdoing.

Grant Thornton’s chief audit executive David Newstead was also fined £ 150,000, a severe reprimand and banned from performing high-level audits for three years.

“This decision notice sets out numerous violations of the relevant requirements over three separate audit years, demonstrating a serious lack of competence in the conduct of the audit work,” said Claudia Mortimore, Deputy Executive Advisor of the FRC.

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Looks great: Revolution Beauty posts higher sales in the first half of the year

The newly created Revolution Beauty recorded sales growth of 35% in the first half of the year, ahead of the peak sales season which has just started.

The AIM-listed makeup brand, which floated at 160p per share in July, said revenue reached £ 78million in the six months to August 31.

Revolution Beauty is listed on AIM

/ Beauty Revolution

Read the full story here.

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Oil giants push FTSE higher

Brent crude hit a three-year high at nearly $ 80 a barrel today, increasing inflationary pressure on the UK economy and adding to the turmoil for embattled motorists.

The price of Brent rose 1.2% to $ 79.01 and has now risen for five straight sessions, driven by the global economic recovery and the shortage of natural gas which has instead driven demand for oil.

Goldman Sachs today raised its year-end forecast for Brent crude from $ 10 to $ 90 a barrel as it also seeks to account for a continued production hit from Hurricane Ida.

The outlook for higher prices has helped BP and Royal Dutch Shell shares to improve by 2%, with the latter now trading at its highest level since the March 2020 pandemic.

Their performance supported a resolute performance of the FTSE 100 index, which climbed 19.36 points to 7,070.84. European markets were also higher after the German election yielded a much closer result than opinion polls predicted.

Coalition negotiations are expected to take weeks, if not months, which means many of the most extreme policy proposals from all sides are likely to be watered down.

Evergrande’s debt issues also remain in the background, although the lack of major developments over the weekend sparked some Asian-focused equity purchases.

They included insurer Prudential, which rose 2% after revealing that it planned to raise around $ 2.4 billion following the pricing of new shares in its Hong Kong fundraiser.

The biggest increase in the session came from Rolls-Royce who unveiled a major deal with the US Air Force to power the B-52 bomber for the next 30 years. Stocks have risen over 20% in recent days and are up another 7% or 9.5p to 142.04p, an 18-month high.

The improving global travel outlook behind Rolls’ recent resurgence is also helping British Airways owner IAG, which added 4% or 7.6p to 183.2p today.

The FTSE 250 index was up 32.3 points to 23,641.09, with Cineworld still in recovery mode after jumping 8% or 6.3p to 77.8p.