UK: Tuesday 26 June 2018

Company news, markets and financial talking points, available from 8am Monday to Friday

Business welcome MPs' vote for third runway

MPs have overwhelmingly backed the government's £14bn plan to expand Heathrow Airport with a third runway, by 415 to 119. The Financial Times says the third runway will be "welcomed by business and deplored by locals". The Airports Commission says that not expanding Heathrow would cost the economy £30bn-£45bn over 60 years. The CBI said the vote "will open the doors to a new era in the UK's global trading relationships". 

Brexit confusion slashes car investment by 50%

Brexit uncertainty means investment in Britain's car industry has fallen by half, according to industry data. The Society of Motor Manufacturers & Traders said that in the first six months of last year, investment in new models and factory improvements totaled £647.4m – but for the same period in 2018 it has fallen to £347.3m. It warned that "conflicting messages" were working "directly against the interests of the UK automotive sector".

Trump livid as Harley-Davidson moves out

Harley-Davidson will move production of thousands of motorcycles outside the United States to avoid import tariffs set by the European Union last week. The manufacturer says the average cost of a motorcycle it exported to the EU had leapt by $2,200 because of the new levies. President Donald Trump said he is "surprised that Harley-Davidson, of all companies, would be the first to wave the White Flag".

Cannabis-based epilepsy drug approved for the US

A treatment for childhood epilepsy developed by a British firm will become the first cannabis-based medicine on the American market. The US Food and Drug Administration has approved Epidiolex, made by GW Pharmaceuticals. It will be launched in the autumn. Provided the European Medicines Agency approves it early next year, the treatment should be available to prescribe by doctors in Britain by the middle of 2019. 

Google criticised for its stance on EU copyright reform

Google has been slammed for its opposition to EU copyright reform, reports the Financial Times. The web giant is urging news publishers participating in its Digital News Initiative to lobby against the proposed changes. But Digital Content Next said it is "outrageous that Google would once again be using a forum it publicly convened to help the publishing industry as a vehicle to lobby on behalf of Google’s own interests and confuse the market".

Quote of the day… Carillion would have blushed at Heathrow leverage

"As things stand today, Heathrow’s use of debt – £13.5bn at the last count – is so extreme that even Carillion’s bosses would have blushed at the leverage ratios." Nils Pratley of The Guardian says the delays on the third runway served Heathrow's owners well.

THE NUMBERS... AT 0711 GMT

FTSE 100: down -2.24 to 7,509.84
Dow Jones: down -1.33 to 24,252.80
Dax: down -2.46 to 12,270.33
Cac 40: down -1.92 to 5,283.86
Nikkei: up +0.11 to 22,363.72
Hang Seng: down -0.31 to 28,872.70
US dollar: buys €0.8533 and £0.7524
Sterling: buys $1.3286 and €1.1337
Oil: $74.71 down -0.02

UK: Tuesday 26 June 2018 UK: Tuesday 26 June 2018 Reviewed by Shahid Karimi on June 26, 2018 Rating: 5

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