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Equilibrium's finance and investment news roundup

Our roundup of another eventful week in the finance and investment world includes news of a dip for the FTSE 100 following share drops for BP and Standard Chartered, an announcement by Bank of England Governor Mark Carney that he will stay on in the role for an extra year, claims that the UK manufacturing sector is currently on a firm footing and a warning from the Treasury for businesses to get ready for the introduction of a new £1 coin.

 

BP and Standard Chartered share drops lead to FTSE dip

The FTSE 100 dipped slightly on Tuesday morning following a drop in shares for BP and Standard Chartered. Britain's top share index was down 0.2% after gains made last month, although the index is up more than 11% for the year so far.

BP's shares were down 3.7% after it announced a fall in third-quarter earnings, with its underlying replacement cost profit - or net income - tumbling from $1.8 billion (£1.47 billion) a year ago to $933 million.

Standard Chartered also dropped, by 6.2%, following its announcement of a 6% fall in income in the third quarter of the year compared to the same period in 2015. The Asia-focused lender also warned it could be set to face further compliance problems after the Hong Kong Securities and Futures Commission confirmed it plans to take action against the lender for the part it played in an initial public offering in 2009. 

Mark Carney to stay at BoE an extra year

Governor of the Bank of England (BoE) Mark Carney has revealed he is set to stay on in the role for an additional year, taking him up to the end of June 2019. The announcement means, however, that the Canadian will not be taking up the full eight-year term available to him, which would have lasted until 2021.

In a letter to Chancellor Philip Hammond that has been published by the BoE, Mr Carney said: "I would be honoured to extend my time of service as Governor for an additional year to the end of June 2019."

He explained the decision has been taken so that he can further assist with Britain's exit from the European Union and to "secure an orderly transition to the UK's new relationship with Europe". 

UK manufacturing sector 'on a firm footing'

The manufacturing sector in the UK remained on a firm footing in October, despite the Markit/CIPS Purchasing Managers' Index slowing to 54.3 from the 55.5 recorded in September. Rob Dobson, an Economist at Markit, explained the sector should also return to growth in the fourth quarter. 

It was shown that while a weaker pound served to help exports, it also added to inflation pressures. Additionally, it was revealed that import prices had shown a significant climb in purchasing costs. 

Treasury: Firms need to prepare for new £1 coin

Businesses in the UK have been told they need to start preparing for the introduction of a new £1 coin, which will be brought into circulation in March 2017.

The Treasury has revealed a new website encouraging firms to train staff and adapt their equipment ahead of the arrival of the new coin, which has a new 12-sided design aimed at making forgeries more difficult.

Businesses were warned that all machines that accept cash will have to be updated, with the current coin phased out after a six-month period of transition, during which firms will need to be in a position to accept both the old and new designs.