Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  London Stock Exchange  >  GlaxoSmithKline    GSK   GB0009252882

GLAXOSMITHKLINE

(GSK)
  Report  
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsOfficial PublicationsSector newsAnalyst Recommendations

Markets edgy ahead of Fed rate decision and UK inflation data – business live

share with twitter share with LinkedIn share with facebook
share via e-mail
0
12/19/2018 | 03:33am EDT

block-time published-time 9.22am GMT

Santander fined over probate and bereavement failures

Newsflash: Banking group Santander has been fined £32.8m by the UK financial watchdog, for a frankly shocking failure to handle the accounts and investments of deceased customers properly.

The Financial Conduct Authority has imposed the penalty, after concluding that Santander had often failed to do the right thing when a customer died.

Failings in its probate and bereavement processes meant that Santander sometimes didn’t transfer money to beneficiaries for several years.

According to the FCA, there were weaknesses in Santander’s systems which:

  • reduced its ability to effectively identify all the funds it held which formed part of a deceased customer’s estate;
  • resulted in it failing to effectively follow-up on communications with deceased customer representatives which increased the likelihood of probate and bereavement cases not being closed; and
  • led to it ineffectively monitoring open probate and bereavement cases to allow it to determine whether cases had progressed to closure.

The FCA is also unhappy that Santander didn’t come clean about the problems.

In a stern rebuke, it says:

Santander did not notify the FCA of the nature or extent of the issues it faced, including the numbers of potentially affected customers and assets, and was selective in the information it provided.

Accordingly, Santander’s conduct fell below the standards of openness and cooperation expected of an authorised firm.

enltrAt least Santander is consistent. Treated regulator as shoddily as it did bereaved customers. Tried to hide failings. pic.twitter.com/0aqqorVcnr

James Coney (@jimconey) December 19, 2018

block-time published-time 9.09am GMT

Italian bonds and stocks are rallying this morning, on relief that Rome has reached a peace deal with Brussels over its budget.

Last night, the Italian Treasury announced it had reached a “a technical agreement with EU officials” which could avoid an “excessive deficit procedure” being launched against the eurozone’s third-largest member.

Last week, Italy proposed cutting its planned budget deficit for 2019 to 2.04% from 2.4% of gross domestic product. That might keep it within EU rules -- and compares favourably with France’s aims...

enltrFrench Finance Minister Le Maire says French deficit next year will be 3.2% of GDP. #awkward

Michael Hewson ???? (@mhewson_CMC) December 19, 2018

Any deal still needs the approval of European commissioners, who meet later today. Plus, any budget changes would need to be passed by the Italian Senate.

But the markets are already excited, sending the Italian FTSE MIB up 1.5% this morning.

enltrItalian stocks rise 1.5% and bond yields fall to September levels after press announces budget deal.

The European market seems less excited about it. pic.twitter.com/0xyxS4nBSw

Daniel Lacalle (@dlacalle_IA) December 19, 2018

block-time updated-timeUpdated at 9.13am GMT

block-time published-time 8.44am GMT

World stock markets have a decidedly edgy feel this morning, as investors wait for the Fed’s rate decision.

China’s Shanghai Composite index has fallen by 1%, amid ongoing anxiety about trade relations with the US. Japan’s Nikkei has dipped by 0.6%.

European shares are more positive; with the Stoxx 600 up around 0.2%.

The FTSE 100 is bouncing back from yesterday’s selloff, up around 0.35%. GSK are leading the way, as investors hail its break-up plan.

block-time published-time 8.13am GMT

GSK shares leap on break-up plan

Boom! Shares in pharmaceutical giant GlaxoSmithKline have soared by 5% at the start of trading, after it surprised the City with a break-up plan.

GSK has agreed to spin off its consumer healthcare business in a £10bn joint venture with rival Pfizer.

GSK, whose consumer brands include Sensodyne and Panadol, will have a controlling stake in the partnership of 68% and Pfizer will own 32%.

The FTSE 100 drug maker said that within three years of closing the deal, it will demerge and float the consumer health business, splitting GSK into two distinct businesses – one focused on consumer and the other on pharmaceuticals and vaccines.

block-time updated-timeUpdated at 8.19am GMT

block-time published-time 8.08am GMT

Investors around the globe will be watching Fed chair Jerome Powell tonight, when he explains tonight’s interest rate decision.

Shares could soar, or slide, depending on the guidance that Powell gives for future rate hikes in 2019. Ditto the dollar.

Naeem Islam of Think Markets explains:

Market participants widely expect the statement to be somewhat dovish and the markets believe that going into 2019, the Fed isn’t going to be this aggressive because of the tighter financial conditions. Mr Powell is likely to indicate two or maximum three rates hikes in 2019. For investors, one to two rate hikes would be considered more dovish to neutral but two to three rate hikes would be aggressive because the economic indicators have started to flash warning light with respect to any aggressive monetary policy.

In terms of trading the event, aggressive tone by the Fed would be negative for the equity market and the sell-off may become intense. The Dow Jones may take a nose dive and the move could in the range of 300-500 points. However, a dovish statement could support the equity markets and it would restore some confidence so investors expect about 150-250 points move for the Dow on the back of this.

block-time published-time 7.53am GMT

Introduction: US Federal Reserve to set interest rates tonight Federal Reserve Chairman Jerome Powell Photograph: Cliff Owen/AP

Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.

To hike or not to hike, that is the question facing America’s central bankers today.

The Federal Reservehad been certain to raise interest rates at its final meeting of 2018 today, in line with its policy of normalising monetary policy and tackling inflation.

But Donald Trump has thrown clouds of uncertainty over the Fed, by repeatedly urging the Fed to leave interest rates alone.

After several stinging tweets, the markets now reckon there’s a 25% chance that the Fed won’t hike at tonight’s monetary policy meeting:

enltrI hope the people over at the Fed will read today’s Wall Street Journal Editorial before they make yet another mistake. Also, don’t let the market become any more illiquid than it already is. Stop with the 50 B’s. Feel the market, don’t just go by meaningless numbers. Good luck!

Donald J. Trump (@realDonaldTrump) December 18, 2018

enltrIt is incredible that with a very strong dollar and virtually no inflation, the outside world blowing up around us, Paris is burning and China way down, the Fed is even considering yet another interest rate hike. Take the Victory!

Donald J. Trump (@realDonaldTrump) December 17, 2018

enltrSo great that oil prices are falling (thank you President T). Add that, which is like a big Tax Cut, to our other good Economic news. Inflation down (are you listening Fed)!

Donald J. Trump (@realDonaldTrump) November 25, 2018

But central bank independence is important. So despite Trump’s best efforts, the Fed will probably push US borrowing costs up again tonight (while bracing for another Twitter blast), to 2.5%.

But the Fed will also update the markets on its plans for 2019, and many investors predict it will slash its forecasts for future rate hikes.

Jasper Lawler of London Capital Group explains:

The market is pricing in a 72.3% probability of the Fed hiking today. This would be the fourth-rate hike for 2018. However, the real concern for the market is what comes next. With growing fears over the health of the global economy, the markets simply don’t think the US economy can handle higher rates.

Traders will be watching for dovish signs, such as the dropping of the phrase “further gradual rate rises” from the statement and a softening of the dot plot from three hikes to at most two. In short, if the Fed must hike today, and they will struggle to justify not hiking on current US economic strength; then it will need to be a dovish hike to prevent the US equity markets dumping once more. The dollar has traded lower across the week in anticipation of a dovish hike.

Such a dovish hike might calm market nerves, after a turbulent few months.

enltrThe Powell Fed is aiming to reclaim discretion, distancing itself from straitjackets like R-star, the words "gradual increases in the target range," and -- eventually -- the dot plot. This is a stylistic change, but markets hear DOVISH and price less than two hikes through 2019. pic.twitter.com/jE9vrlHy87

Robin Brooks (@RobinBrooksIIF) December 13, 2018

Earlier this week the US stock market fell to a 14-month low, while Britain’s FTSE 100 closed at a two-year low last night.

Related: Growth fears drive FTSE 100 to two-year closing low - as it happened

Also coming up....

New UK inflation figures will also show how the cost of living changed last month in Britain. Economists predict that consumer prices rose by 2.3% last year, down from 2.4% in October.

It could confirm that retailers have been slashing prices in recent months, in an attempt to persuade shoppers to part with some cash.

The agenda
  • 9.30am GMT: UK inflation data for November
  • 11am GMT: UK retail sales figures for November
  • 7pm GMT: US Federal Reserve interest rate decision
  • 7.30pm GMT: Fed chair Jerome Powell’s press conference

block-time updated-timeUpdated at 8.11am GMT

1199 2018-12-22T08:00:00Z true 2018-12-19T08:00:49Z false false 2018-12-19T09:22:27Z true UK theguardian.com

https://gu.com/p/a8jxy false true https://media.guim.co.uk/0417fa8a15b31eeec9f0b873df707f5ee93b8fcc/0_142_3500_2100/500.jpg false en Newsflash: Banking group Santander has been fined £32.8m by the UK financial watchdog, for a frankly shocking failure to handle the accounts and investments of deceased customers properly. The Financial Conduct Authority has imposed the penalty, after concluding that Santander had often failed to do the right thing when a customer died. Failings in its probate and bereavement processes meant that Santander sometimes didn’t transfer money to beneficiaries for several years. According to the FCA, there were weaknesses in Santander’s systems which: reduced its ability to effectively identify all the funds it held which formed part of a deceased customer’s estate; resulted in it failing to effectively follow-up on communications with deceased customer representatives which increased the likelihood of probate and bereavement cases not being closed; and led to it ineffectively monitoring open probate and bereavement cases to allow it to determine whether cases had progressed to closure. The FCA is also unhappy that Santander didn’t come clean about the problems. In a stern rebuke, it says: Santander did not notify the FCA of the nature or extent of the issues it faced, including the numbers of potentially affected customers and assets, and was selective in the information it provided. Accordingly, Santander’s conduct fell below the standards of openness and cooperation expected of an authorised firm. Italian bonds and stocks are rallying this morning, on relief that Rome has reached a peace deal with Brussels over its budget. Last night, the Italian Treasury announced it had reached a “a technical agreement with EU officials” which could avoid an “excessive deficit procedure” being launched against the eurozone’s third-largest member. Last week, Italy proposed cutting its planned budget deficit for 2019 to 2.04% from 2.4% of gross domestic product. That might keep it within EU rules -- and compares favourably with France’s aims... Any deal still needs the approval of European commissioners, who meet later today. Plus, any budget changes would need to be passed by the Italian Senate. But the markets are already excited, sending the Italian FTSE MIB up 1.5% this morning. World stock markets have a decidedly edgy feel this morning, as investors wait for the Fed’s rate decision. China’s Shanghai Composite index has fallen by 1%, amid ongoing anxiety about trade relations with the US. Japan’s Nikkei has dipped by 0.6%. European shares are more positive; with the Stoxx 600 up around 0.2%. The FTSE 100 is bouncing back from yesterday’s selloff, up around 0.35%. GSK are leading the way, as investors hail its break-up plan. Boom! Shares in pharmaceutical giant GlaxoSmithKline have soared by 5% at the start of trading, after it surprised the City with a break-up plan. GSK has agreed to spin off its consumer healthcare business in a £10bn joint venture with rival Pfizer. GSK, whose consumer brands include Sensodyne and Panadol, will have a controlling stake in the partnership of 68% and Pfizer will own 32%. The FTSE 100 drug maker said that within three years of closing the deal, it will demerge and float the consumer health business, splitting GSK into two distinct businesses – one focused on consumer and the other on pharmaceuticals and vaccines. Investors around the globe will be watching Fed chair Jerome Powell tonight, when he explains tonight’s interest rate decision. Shares could soar, or slide, depending on the guidance that Powell gives for future rate hikes in 2019. Ditto the dollar. Naeem Islam of Think Markets explains: Market participants widely expect the statement to be somewhat dovish and the markets believe that going into 2019, the Fed isn’t going to be this aggressive because of the tighter financial conditions. Mr Powell is likely to indicate two or maximum three rates hikes in 2019. For investors, one to two rate hikes would be considered more dovish to neutral but two to three rate hikes would be aggressive because the economic indicators have started to flash warning light with respect to any aggressive monetary policy. In terms of trading the event, aggressive tone by the Fed would be negative for the equity market and the sell-off may become intense. The Dow Jones may take a nose dive and the move could in the range of 300-500 points. However, a dovish statement could support the equity markets and it would restore some confidence so investors expect about 150-250 points move for the Dow on the back of this. Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business. To hike or not to hike, that is the question facing America’s central bankers today. The Federal Reserve had been certain to raise interest rates at its final meeting of 2018 today, in line with its policy of normalising monetary policy and tackling inflation. But Donald Trump has thrown clouds of uncertainty over the Fed, by repeatedly urging the Fed to leave interest rates alone. After several stinging tweets, the markets now reckon there’s a 25% chance that the Fed won’t hike at tonight’s monetary policy meeting: But central bank independence is important. So despite Trump’s best efforts, the Fed will probably push US borrowing costs up again tonight (while bracing for another Twitter blast), to 2.5%. But the Fed will also update the markets on its plans for 2019, and many investors predict it will slash its forecasts for future rate hikes. Jasper Lawler of London Capital Group explains: The market is pricing in a 72.3% probability of the Fed hiking today. This would be the fourth-rate hike for 2018. However, the real concern for the market is what comes next. With growing fears over the health of the global economy, the markets simply don’t think the US economy can handle higher rates. Traders will be watching for dovish signs, such as the dropping of the phrase “further gradual rate rises” from the statement and a softening of the dot plot from three hikes to at most two. In short, if the Fed must hike today, and they will struggle to justify not hiking on current US economic strength; then it will need to be a dovish hike to prevent the US equity markets dumping once more. The dollar has traded lower across the week in anticipation of a dovish hike. Such a dovish hike might calm market nerves, after a turbulent few months. Earlier this week the US stock market fell to a 14-month low, while Britain’s FTSE 100 closed at a two-year low last night. Also coming up.... New UK inflation figures will also show how the cost of living changed last month in Britain. Economists predict that consumer prices rose by 2.3% last year, down from 2.4% in October. It could confirm that retailers have been slashing prices in recent months, in an attempt to persuade shoppers to part with some cash. The agenda 9.30am GMT: UK inflation data for November 11am GMT: UK retail sales figures for November 7pm GMT: US Federal Reserve interest rate decision 7.30pm GMT: Fed chair Jerome Powell’s press conference 7051 false false Traders work on the floor of the New York Stock Exchange last night. Federal Reserve Chairman Jerome Powell

Copyright © 2018 theguardian.com. All rights reserved., source Guardian Online

Stocks mentioned in the article
ChangeLast1st jan.
GLAXOSMITHKLINE 0.61% 1637 Delayed Quote.9.12%
LONDON CAPITAL GROUP HOLDINGS PLC 0.00%End-of-day quote.0.00%
PFIZER -0.22% 36.83 Delayed Quote.-15.62%
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on GLAXOSMITHKLINE
09/12GLAXOSMITHKLINE : FDA Approves GlaxoSmithKline's Nucala For Children Ages 6-11 W..
DJ
09/12GLAXOSMITHKLINE : Nucala is the first biologic approved in the US for six to 11-..
BU
09/12GLAXOSMITHKLINE : ViiV Healthcare - Stigma and mental health challenges remain b..
AQ
09/10LONDON STOCK EXCHANGE : JD Sports leads FTSE 100 higher, rate cut hopes support
RE
09/09UK bluechips give up gains as sterling strengthens
RE
09/05LONDON STOCK EXCHANGE : Strong sterling knocks FTSE 100 despite trade lull
RE
09/05PERRIGO : Buys Prevacid U.S. OTC Rights From GlaxoSmithKline
DJ
09/04UK Plc's discount steepens as political crisis over Brexit deepens
RE
08/29AstraZeneca lupus drug shows promise after set-back last year
RE
08/28AstraZeneca respiratory business gets boost from three-drug inhaler results
RE
More news
Financials (GBP)
Sales 2019 32 621 M
EBIT 2019 8 791 M
Net income 2019 4 781 M
Debt 2019 23 209 M
Yield 2019 4,91%
P/E ratio 2019 17,0x
P/E ratio 2020 16,5x
EV / Sales2019 3,18x
EV / Sales2020 2,94x
Capitalization 80 523 M
Chart GLAXOSMITHKLINE
Duration : Period :
GlaxoSmithKline Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends GLAXOSMITHKLINE
Short TermMid-TermLong Term
TrendsBearishBullishBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus HOLD
Number of Analysts 23
Average target price 1 762,33  GBp
Last Close Price 1 627,20  GBp
Spread / Highest target 35,2%
Spread / Average Target 8,30%
Spread / Lowest Target -7,20%
EPS Revisions
Managers
NameTitle
Emma Walmsley Chief Executive Officer & Executive Director
Philip Roy Hampton Non-Executive Chairman
Simon Paul Dingemans Chief Financial Officer & Executive Director
Karenann K. Terrell Chief Technology & Digital Officer
Hal V. Barron Executive Director & Chief Scientific Officer
Sector and Competitors
1st jan.Capitalization (M$)
GLAXOSMITHKLINE9.12%99 990
JOHNSON & JOHNSON1.34%341 878
ROCHE HOLDING LTD.12.28%234 825
MERCK AND COMPANY7.36%210 028
PFIZER-15.62%203 709
NOVARTIS16.65%198 073