Member Article

Marcus Agius returns as Bob Diamond quits

The FTSE 100 was set to open 0.3% higher from its previous close on Monday with property stocks following the FTSE’s gains. Good results were announced by St. Modwen Properties plc (LSE: SMP), the UK’s leading regeneration specialist, publishing a rise in net asset value per share of 5% and getting a boost with demand for new homes in London and two of London’s largest development projects – Elephant & Castle and New Covent Garden Market.

Shares in Barclays (BARC.L) were still volatile after Bob Diamond resigned as chief executive officer this morning, following claims he had a role in the in rate-fixing scandal. With immediate effect, Marcus Agius, who resigned yesterday (Monday), will return as full-time Chairman and will lead the search for a new CEO for the bank. Nevertheless Bob Diamond could receive a payout of between £20m and £30 million. After originally falling, Barclays Group PLC Shares rose quiet strongly in mid-morning from its opening share price of 163p to 174.40p and fell again during the afternoon, and closed down 0.8 points (-0.47%) lower.

After factory prices among the countries using the euro fell more than expected (0.5%) from April economists speculated about an imminent interest rate cut, by the ECB (European Central Bank) on Thursday. The ECB has never cut its interest rate under the record low of 1% but according to policymakers “there is nothing to stop them doing so” in order to help the euro-zone.

Energy bench markets recover from their slide on Monday. Especially Brent crude Oil, which rose back above $100 (+3.50%) and hit its highest level since May. Gold prices gained as well, jumping 1.2% ($19.34) to $1,618.40 per ounce with Silver in conjunction, climbing by $0.67 (2.4%) to $28.24.

Equity markets replicated the positive results on the energy bench markets closing up 0.83% at 5687 (FTSE 100),respectively up 1.26% at 6578 (German DAX).

This was posted in Bdaily's Members' News section by James .