BusinessNow: Live coverage of financial markets and companies, plus analysis and opinion

For the first time in two years the market has closed weaker for the fifth week in a row.

Stocks closed firmly in the black, but it wasn’t enough to stall the weekly march lower.

• Kiwi chases parity with Aussie
• How Estia boss quit
• BBY chairman was a ‘tyrant’
• Estia shares jump as CEO resigns
• Stocks lift in early trade
• Myer shares overpriced: UBS
• Morgan Stanley tapped for Accolade IPO

Welcome to the BusinessNew blog for Friday, September 16. Australian stocks closed higher but still finished the week in the red.

7.28pm:Deutsche tumbles on $US14bn demand

Deutsche Bank shares took a dive at the European open on Friday, shedding about 8 per cent as the market digested a report by The Wall Street Journal that the US Department of Justice has asked the German lender to pay $US14 billion to settle various US probes into mortgage securities it sold during the financial crisis.

At 7.04am (GMT), shortly after the open, shares were down 8 per cent at €12.09 ($US13.59). Shares underperformed the wider market, which was down 0.3 per cent.

A Frankfurt trader described the amount the Justice Department was asking for as “exorbitant.” He also said the high amount gives the impression that negotiations between the bank and the US Justice Department are only just starting, rather than nearing a settlement. WSJ

7.20pm:How to make the most of new super rules

James Kirby

After almost four months of relentless behind-the-scenes bargaining Australia’s new superannuation rules finally took shape this week as the Turnbull government outlined a broadly popular compromise which every investor now needs to include in wealth planning.

The essential feature of the adjusted plan is the scrapping of a “lifetime cap” on superannuation contributions contained in the May budget which was to be set at $500,000 and was supposed to be backdated from 2007.

In place of this highly contentious idea is a new annual limit on non-concessional (post tax) super contributions of $100,000 a year ... it’s a big change and at a stroke it is going to prompt investors in several new directions.

Optimising contributions over the next 10 months

As Doug Turek, managing director of Professional Wealth suggests: “You have to expect the immediate effect is likely to be a ‘rush’ as wealthier investors move in the final months to June 30, 2017, to make maximum use of existing (after tax) non concessional contributions — so some individuals might be able to put in as much as $540,000 between now and June next year”. The existing annual limits of $180,000 get cut down to the new level ($100,000) per annum from July 1 next year. Read more.

6.38pm: Bank stock weigh in Europe

Banks led declines in early European trade on Friday with the region’s stocks on course to end a rocky week with losses.

The Stoxx Europe 600 dipped 0.2 per cent in the early minutes of trading while the banking sector shed 1.4 per cent. Shares of Deutsche Bank AG were down nearly 8 per cent following reports the U.S. Justice Department proposed the German lender pay $14 billion to settle a set of high-profile mortgage-securities probes stemming from the financial crisis.

Earlier, shares in Japan rose 0.7 per cent. Japanese banks gained after comments from the Japanese banking industry association about the impact of negative interest rates reduced expectations for further rate cuts from the Bank of Japan. Markets in China, Hong Kong, Taiwan, South Korea and Malaysia were closed for the mid-autumn festival. Dow Jones

6.21pm: Twiggy Forrest battles uranium miner

Billionaire Andrew Forrest has launched a new bid to stop a junior uranium explorer coming onto his family cattle station in Western Australia’s Pilbara region.

Mr Forrest lodged an appeal in the WA Court of Appeal on Thursday, challenging a decision paving the way for Tony Sage’s Cauldron Energy to secure exploration tenements within and adjoining Mr Forrest’s Minderoo pastoral station. Mr Sage said his company, which wants the tenements to add to its Yanrey uranium project in the area, deserved a fair go by Mr Forrest, who made his fortune in the mining industry.

“We’ve already spent $13 million on our leases up at Yanrey ... and it’s a shame we have to now spend shareholders’ money on litigation, rather than doing what we want to do,” Mr Sage said. Read more.

5.46pm: Solomon Lew slams both sides of politics

Eli Greenblat

Billionaire rag trader Solomon Lew has blasted politicians for squandering the proceeds of the once-in-a-century mining boom while at the same time running up a huge public debt, and taken special aim at Labor Victorian Premier Daniel Andrews for his steering of the state and ceding the levers of power to his union benefactors.

Introducing Federal Treasurer Scott Morrison at an Australia Israel Chamber of Commerce lunch in Melbourne today, Mr Lew took great pleasure at skewering Mr Andrews and his vindictive attack on voluntary firefighters in the state, which many experts believed kept local Coalition seats safe during the recent federal election that cost Bill Shorten what should have been an assured victory. Read more.

5.00pm:Australia’s first housing “stock exchange”

As new investment models emerge from internet technology and crowd-funding techniques, one significant attempt to allow investors into the residential housing market has captured wide attention

BRICKX, Australia’s first “stock exchange” for residential property, launched earlier this week by Markus Kahlbetzer, the son of one of the country’s richest men, targets younger investors with the opportunity to buy fractions, or “bricks”, of a property for less than $100 a parcel.

But people familiar with the business model have questioned the company’ pricing structure. Mr Kahlbetzer, the son of $800 million agribusiness mogul John Dieter Kahlbetzer, has plunged $3.5m into getting BRICKX up and running.
Michael Roddan

Read more to find out how it works

4.30pm:Solomon Lew blasts politicians

Billionaire rag trader Solomon Lew has blasted politicians for squandering the proceeds of the once-in-a-century mining boom while at the same time running up a huge public debt, and taken special aim at Labor Victorian Premier Daniel Andrews for his steering of the state and ceding the levers of power to his union benefactors.

Introducing Federal Treasurer Scott Morrison at an Australia Israel Chamber of Commerce lunch in Melbourne today, Mr Lew took great pleasure at skewering Mr Andrews and his vindictive attack on voluntary fire-fighters in the state which many experts believed kept local Coalition seats safe during the recent federal election that cost Bill Shorten what should have been an assured victory.
Eli Greenblat
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4.19pm:Stocks see red for fifth week

The Australian sharemarket has seen red for a fifth straight week despite a strong rally through Friday trade.

At the end of the session, the benchmark S&P/ASX 200 index surged 56.8 points, or 1.08 per cent, to 5,296.7, while the broader All Ordinaries index bounded 59.6 points, or 1.12 per cent, to 5,396.7.

Monday’s 2.2 per cent skid prevented the market from a positive week, with the losing run of five weeks the longest such streak in two years.

A run of three straight gains to round of the week has, however, calmed nerves heading into Thursday’s crucial US Federal Reserve policy update.
Daniel Palmer
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3.45pm:Deutsche doesn’t intend to pay $19bn

Deutsche Bank AG says it does not intend to pay $US14 billion ($A19bn) to settle civil claims with the US Department of Justice for its handling of residential mortgage-backed securities and related transactions.

The bank confirmed on Friday in a statement that the Justice Department had proposed a settlement of $US14bn ($A19bn) and asked the German bank to make a counter proposal.

3.14pm:Is REA a buying opportunity?

REA Group has tumbled almost 17 per cent since late July, which has uncovered a buying opportunity, according to Morgans.

09/08/2016 REA CEO Tracey Fellows.

The analysts have upgraded their view on the online property listing company to ‘add’ from ‘hold’, saying shareholders could expect a total return of 10 per cent over the next 12 months.

“The recent share price decline for REA means that the stock is now trading at a substantial discount to our valuation and price target for the first time in many months,” Morgans analysts Ivor Ries and Simon Dumaresq said.

“We believe that the current share price provides a sufficient margin of safety to warrant the upgrade.”

Analysts are leaning slightly positive on REA Group, with Bloomberg showing four ‘buy’ ratings, five ‘holds’ and two ‘sell’ recommendations, with a consensus 12-month price target of $60.82.

The stock last traded up 0.7 per cent for the day at $56.18.

REA Group is owned by News Corp Australia, which is the publisher of The Australian.

2.53pm:Kiwi chases parity with the Aussie

The New Zealand dollar is again flirting with parity with its Australian peer, but one analyst suspects the landmark day is still at least 12 months away.

Throughout much of this week the New Zealand unit has been trading near a 17-month high of A97.5c, leading to speculation it could match the value of the Australian dollar before year’s end, a result never achieved since the currencies were floated in the 1980s.

Traders are understandably cautious on the prospect, however, given the ‘kiwi’ surged as high as A99.78c in April last year, before fading sharply.

While Capital Economics’ Australia and New Zealand chief economist Paul Dales suspects parity might soon come, the recent strengthening of the NZ dollar could weigh its economy down enough to ensure the day does not arrive this year.
Daniel Palmer
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2.35pm:‘I’ve had enough’: how Estia boss quit

Estia Health boss Paul Gregersen quit as CEO by telling chairman Pat Grier he had had enough, caving into investor pressure for his removal on the back of disappointing financial results and a significant slump in the share price.

Mr Grier told The Australian today that Mr Gregersen broke the news of his resignation during a scheduled meeting in Sydney yesterday.

“We had a normal agenda and during the discussions he said he was there to hand in his resignation,” Mr Grier said.

Sarah-Janes Tasker
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2.10pm:Star launches design comp

The Star Entertainment is on track to open the doors to its new $500 million Sydney tower before James Packer opens his casino in the harbour city, with the launch of an architectural design competition.

The Star announced today it had invited three architectural firms, who will be revealed next week, to contest the right to create the new Sydney tower design which, in addition to the hotel and residential components, will include further works to connect the new hotel to the existing casino property. The additional works will include a restaurant and bar precinct.
Sarah-Jane Tasker
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1.55pm:Austal wins US Navy contract

ASX-listed shipbuilder Austal has won a $434 million contract to design and construct two vessels for the US Navy.

The deal is an extension of the Expeditionary Fast Transport (EPF) agreement sealed in 2008, with the two new vessels bringing the total it will supply through the scheme to 12.
Daniel Palmer
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1.15pm:BBY chairman ‘ran firm as a dictatorship’

BBY chairman Glenn Rosewall was “a tyrant who ran the firm as a dictatorship’’ and used the presence of his tennis legend father, Ken, on the board to overcome objections, a court has heard.

Chief executive Arun Maharaj told the court that that Mr Rosewall was a master manipulator of staff, executives, directors and employees, who used his fathers reputation to get his way.

“Because he had Ken on the board, who was a champion, a living legend who was deeply respected.”
Andrew White
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12.55pm:Another McAleese director resigns

Turmoil within transport group McAleese continues to bubble to the surface, with another director resignation meaning a board spill vote will now only be calling for the heads of managing director Mark Rowsthorn and chairman Don Telford.

In a statement to the market, McAleese said non-executive director Warren Saxelby had resigned, following fellow directors Wayne Kent and Kerry Gleeson out the door since McGrath Nicol was appointed as administrator of the troubled group on August 29.

Daniel Palmer
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12.35pm:Stocks look to end week on positive note

A sea of green has swept through local ASX boards as the index looks to finish a painful week on a positive note.

At 12:15pm AEST the S&P/ASX 200 was sitting at an intraday high of 5304 points, a solid 1.2 per cent above where it ended yesterday.

The ASX looks set to end the week on a positive note.

Despite the healthy bounce, which is led by the banks, BHP, Telstra and CSL (pretty much all the big guys), the index looks set to finish the week in the red for the fifth time in a row.

As CMC Markets chief analyst Ric Spooner pointed out this morning, bad US economic news is good news for global markets ahead of next week’s Federal Reserve meeting.

“The solid opening on the Australian market today provides clear insight into how trader thinking is currently dominated by the US Federal Reserve,” Mr Spooner said.

“Disappointing US economic data has been taken to reduce the chances of the Fed lifting its interest rate next week and this has translated into a reason to buy stocks.

“It remains possible that the Fed will surprise markets by looking through short term data and lifting rates next week. However, if the Fed itself is somewhat undecided then recent soft economic data seems likely to tilt the balance of their decision in favour of caution. “

JB Hi-Fi is seeing strong buying on the back of its purchase of The Good Guys; the retailer is up 6.2 per cent today.

Myer is 5.5 per cent higher and Santos has gained 4.6 per cent despite softer oil prices this week.

On the heavy end of the index, the big four banks are up between 1.2 per cent and 1.5 per cent, Telstra has gained 1.6 per cent, CSL is up 1.2 per cent, while BHP is 1.2 per cent higher and Tinto sits flat.

Gold miners are having a rough one – Regis, St Barbara, Northern Star and Evolution are all seeing losses today.

12.20pm:Brace for more market turbulence

From Stephen Bartholomeusz’s column today:

When the open market committee of the US Federal Reserve Board meets next week, what will be most important for financial markets and other central bankers is not what they do but what they say.

Markets have been roiled over the past month by conflicting views about the likely future of US interest rates expressed by various Fed officials, with both the hawks and doves presenting their cases as to why rates should and shouldn’t rise.

While it would appear that the number and conviction of those favouring a rise this year has strengthened, the market is heavily discounting the prospect of a Fed move when the open market committee meets next Wednesday and Thursday.

The odds on a December hike, however, have strengthened and are now a better than even-money bet.
Read more

11.50am:Apartments to come crashing down

From Robert Gottliebsen’s column today:

While Australia debates its interest rate policy, the mass failure of many Chinese buyers to settle on apartment contracts is looming as a much bigger catastrophe than markets are expecting.

This emerged from the comments of a reader to my commentary yesterday on the Sydney and Melbourne apartment markets in the light of a warning by Meriton’s Harry Triguboff (Apartment market ‘sinking fast’, September 15)

One of my readers, who did not allow his full name to be published but used the name “James”, complained that I had grossly understated the problem.

James revealed that he owned and ran a debt and equity funding business that is on the frontline of the apartment settlement problem. His business deals with the developers of the apartment complexes rather than rather than the investors.
Read more

11.25am:APN shareholders back ARM sale

APN News & Media shareholders have backed the planned $36.6 million sale of its Australian Regional Media unit to News Corp.

The poll revealed a near unanimous 99.94 per cent approval from investors.

The deal, announced in June, will see regional newspapers like the Ballina Shire Advocate and Toowoomba’s The Chronicle fall into the hands of News.

In all, the agreement will shift ownership of 12 regional dailies and 60 community mastheads.
Daniel Palmer
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10.59am:JB Hi-Fi shares soar

JB Hi-Fi has burst back onto the market after sitting out much of the week following the announcement it will acquire The Good Guys for $870 million.

Investors pushed the stock as much as 7.9 per cent higher at the open, though it cooled slightly to be 5.8 per cent higher at just after 10:20am AEST.

The broader market had gained 0.8 per cent to 5282 points.

JB Hi-Fi shares are up 5.8% in early trade

It’s worth remembering that JB Hi-Fi shares lost 7.5 per cent in the three sessions prior to its trading halt, so today’s rise hasn’t seen the stock regain that loss.

Some analysts believe the price paid for The Good Guys was a little steep, while others have opted to raise their recommendation on the retailer and applauded the strategic move.

Here’s what the analysts have been saying this week:

UBS (Upgrade to ‘buy’ from ‘neutral’)

“Over the past 12 months the top-four players have consolidated to two, this should reduce competition and drive scope for accelerated share (scale) and margin gains for both JB Hi-Fi and The Good Guys.”

CITI

“While the acquisition was made near the top of the cycle, we think this represents a fair multiple for a rare industry consolidation opportunity.”

Deutsche Bank

“We believe the benefits of this deal have already been priced in and retain a Hold. We believe Harvey Norman is a good way to play the sector given the Good Guys distraction gives it a clean runway to capitalise on the strong conditions.”

Morgans (upgrade to ‘add’ from ‘hold’)

“The combination of these two leading retailers in their respective dominant categories will afford the business considerable scale benefits over time. JBH’s store footprint will increase by 52 per cent to 295 while the group forecasts net annual synergies of $15-$20m over the three-year integration period.”

Goldman Sachs

“While we do not take a view on the likelihood of the deal closing, in terms of strategy we believe this is a logical acquisition for JB Hi-Fi with strategic merits between The Good Guys and its existing business, particularly JB Hi-Fi.”

Ord Minnett (raise to ‘accumulate’ from ‘hold’)

“There are execution risks, especially with the significant number of joint venture partners that are leaving The Good Guys, but we are confident it can be well managed due to the presence of Michael Ford, The Good Guys CEO, the maintenance of separate head offices and cultures, and increasing confidence in JB Hi-Fi management.”

Macquarie is restricted from advising its valuation on JBH.

10.51am:Wiltshire heads to NZ’s Mediaworks

The former long-standing Nine Entertainment chief revenue officer Peter Wiltshire has landed a role as a consultant to New Zealand’s largest independent broadcaster Mediaworks.

It comes as Mediaworks, which owns a portfolio of radio stations and television channels TV3 and Four, appointed Ooh! Media chairman and former Austereo boss Michael Anderson as its chief executive.

Mr Wiltshire departed Nine earlier this year, replaced by Michael Stephenson.
Bridget Carter

10.40am:Estia shares jump as CEO resigns

Investors have welcomed the news of change in the upper reaches of Estia Health’s management, sending its shares up as much as 5 per cent at the open.

Chief executive Paul Gregersen is standing down with immediate effect, with current non-executive director Norah Barlow cast in the role of interim chief executive while the embattled group hunts for a long-term replacement.

At 10.25am (AEST), Estia shares had pared gains in rising 3.2 per cent to $3.19.

Its shares are still down 56 per cent on the year to date.

10.30am:ASX rallies in early trade

The Australian sharemarket has rallied for a third day following a strong bid on stocks during Wall Street trade.

At the 10.15am (AEST) official market open, the benchmark S&P/ASX 200 index jumped 32.1 points, or 0.61 per cent, to 5,272, while the broader All Ordinaries index climbed 35.6 points, or 0.67 per cent, to 5,372.7.

The gains will not be able to drag the market away from a weekly loss, however, given Monday’s sharp 2.2 per cent slump.

Provided stocks don’t gain 1.9 per cent for the session the benchmark will have finished in the red for five straight weeks for the first time in two years.
Daniel Palmer

10.20am:Myer overpriced despite turnaround: UBS

Myer’s transition looks to be in its final stages, according to UBS analysts, who say the focus can finally shift to growth in fiscal 2017.

UBS says Myer is making good progress in the turnaround, but the shares are overpriced.

But that upbeat take only tells half the story, with a solid year for the stock leaving it overpriced and in need of a recommendation cut.

Analysts, led by Ben Gilbert, cut their rating on Myer to neutral from buy and dropped their price target to $1.25 from $1.30, while touting the retailer’s growth potential.

“FY16 was MYR’s 4th consecutive transition year and pleasingly looks to be the last,” Mr Gilbert and his team said.

“Overall we believe MYR is showing some early signs of a turnaround.”

The problems remain around this year’s share price rally and stiff competition.

“We believe management are making good progress in the turnaround, however following a ~15 per cent lift in the share price since May we move our rating to Neutral.

“While we can see upside risk from meeting medium-term targets, risks remain particularly around competition (Big W, Target turnarounds, new entrants), rising costs and overall execution.”

Myer shares have gained 6.7 per cent in the year to date, compared with a 1.1 per cent fall on the broader ASX 200, and last traded at $1.275.

Read today’s feature from Eli Greenblat

10.05am:Morgan Stanley tapped for Accolade Wines

Morgan Stanley is understood to be one of the banks that will be successful in securing a joint lead manager role to float Accolade Wines, according to sources.

It comes as an appointment of two to three joint lead managers for a float of the company is said to be imminent by Accolade’s owner, Champ, and adviser Reunion Capital.

The company is currently subject to a dual track process and the pricing expectations are said to be about $1 billion.

Champ managing director John Haddock has been in Asia sounding out potential buyer interest in the business after it has previously attracted some interest from Chinese buyers, specifically interested in the Australian operations.
Bridget Carter
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10.00am:BBY ‘used a psychic’ for forecasts

BBY chairman and major shareholder Glenn Rosewall used a psychic to provide budget forecasts for the stockbroker and its advisers that he would check against figures from his own finance department, a court has heard.

In an afternoon of extraordinary testimony, former finance and strategy manager April Yuen fought back tears as she described feeling like a “punching bag’’ in the firm and being under “a lot of pressure’’ to delay or withhold payments to creditors after telling them they would be paid.

She told the Supreme Court of NSW that Mr Rosewall had instructed her to leave a column in the firm’s budgets and forecasts for psychic and professed vibrational healer Nevine Rottinger to include her own figures for revenue to be generated by the firm and individual advisers.
Andrew White
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9.20am:Woolies ‘hid’ Masters game plan

In the bitter dispute between retail heavyweight Woolworths and US hardware giant Lowe’s over their exit from hardware chain Masters allegations the Australian group had last month prepared a “game plan” to terminate the venture were aired in court yesterday.

In the Federal Court, Woolworths pushed for the dispute to be handled in a closed arbitration and the US chain alleged it was kept in the dark in the dying days of the Woolworths’ plan to sell Masters’ assets as part of a $1.5 billion fire sale.

Lowe’s, which had earlier blasted Woolworths for “oppressive conduct’’ and acting in “bad faith’’ over the planned shutdown of Masters, zeroed in on events in the lead-up to a meeting of Masters directors ahead of Woolworths’ full-year results last month.
Ben Wilmot
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9.05am:Estia Health CEO steps down

A tumultuous year at aged care company Estia Health has claimed its biggest victim, with chief executive Paul Gregersen standing down with immediate effect, writes Daniel Palmer.

The unexpected decision sees current non-executive director Norah Barlow cast in the role of interim chief executive while the embattled group hunts for a long-term replacement.

Estia chairman Pat Grier said the departure was driven by underperformance from the group over the past 12 months and expressed confidence in Ms Barlow’s ability to begin turning the company around.

The move comes a fortnight after the sudden exit of founder Peter Arvanitis from the board and significant shareholder register, with Estia saying today a search was underway for new directors.
Read more

8.52am:Miners moan as commodities struggle

Resources stocks could drag themselves higher this morning, but, like the rest of the market, a positive weekly finish looks out of the question.

The price of iron ore has now gone eight days without gaining ground.

BHP Billiton’s ADRs point to a 1.4 per cent rise this morning and despite yesterday seeing a 1.4 per cent rise, the miner would still be deeply in the red for the week.

The price of iron ore held flat overnight at $US55.97 – it has now gone eight days without a rise and has lost 5.8 per cent in the period.

Meanwhile the price of oil started the session 0.9 per cent in the hole at $US43.50 and has lost 3.1 per cent in the last three sessions.

8.40am:A rally won’t stall the weekly march lower

Aussie stocks are heading for a rebound at the open, but still look set to notch up a fifth negative week in a row as investor sentiment remains sour ahead of a key Fed decision next week.

Global investors are holding their breath ahead of next week’s Fed decision.

The local SPI200 index is pointing to a 0.6 per cent rise but fair value suggests a 0.8 per cent rally is more likely.

That would make it three positive sessions in a row for the market, but Monday’s $35 billion (2.24 per cent) tumble has a positive weekly result looking out of reach. The S&P/ASX 200 is currently down 1.9 per cent over the four days to 5239.8 points.

CBA did much of the heavy lifting after Goldman Sachs announced a recommendation rise to buy from neutral, saying the bank’s “stabilising returns outlook is not reflected in valuations”.

Stock in the ASX’s largest company saw a 2.3 per cent intraday rally to finish at $71.50.

7.50am: Deutsche asked to pay $US14bn

The US Justice Department has proposed that Deutsche Bank pay $US14 billion to settle a set of high-profile mortgage-securities probes stemming from the financial crisis, according to people familiar with the matter.

The figure, if confirmed, would rank among the largest of what other banks have paid to resolve similar claims and is well above what investors have been expecting.

Dow Jones

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7.00am:Stocks tipped to open higher

The Australian market looks set to open higher, following the positive lead from Wall Street which rose one per cent, thanks to Apple’s strong performance

At 6.45am (AEST) on Friday, the share price index was up 34 points at 5,263.

Apple rose as much as 3.4 per cent, giving the three major US indexes their biggest boost, on news the first quantities of its iPhone 7 Plus had sold out globally.

Locally, no major economic or equities news is expected today.

However, the case between Woolworths and US company Lowe’s over the Australian retailer’s plans for its Masters unit is back in the Federal Court.

In Australia, the market rose yesterday, pulled higher by the big four banks. The benchmark S & P/ASX200 index closed up 12.2 points, or 0.23 per cent, at 5,239.9 points.

The broader All Ordinaries index rose 10.5 points, or 0.2 per cent, to 5,337.1 points.

AAP

6.45am:Dollar higher

The Australian dollar more than half a US cent higher. At 6.35am (AEST), the local unit was trading at US75.12 cents, up from US74.56 cents yesterday.

6.35am: Apple leads Wall St higher

Technology stocks led major US indexes higher, the fourth big move in five sessions.

A sharp rise in Apple shares fuelled the gains across major indexes. Apple climbed 3.4 per cent overnight. Over the past four trading sessions, the company’s stock gained 12 per cent.

The Dow Jones Industrial Average rallied 178 points, or 1 per cent, to 18213. The Nasdaq Composite rose 1.5 per cent.

Dow Jones
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6.30am: BoE holds rates steady

The Bank of England held its benchmark rate steady on Thursday but telegraphed that it still expects to cut it again later this year if the UK economy weakens as officials expect.

The BoE said in a monthly policy statement that the nine members of its Monetary Policy Committee voted unanimously in September to maintain the BoE’s benchmark rate at 0.25 per cent, after cutting it from 0.5 per cent last month.

Dow Jones
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