Closing summary
The FTSE 100 index is having a good day, rising 1.1% or 85 points to 7,755. The Italian market is also 1.1% ahead while the German and French indices have gained 0.7% and 0.5% respectively.
On Wall Street, stocks are also rising, with the Nasdaq up 1.2%.
Inflation ticked higher across the US last month, rising at an annual pace of 3.2%, up slightly from 3.1% the previous month.
Economists had expected a reading of 3.1%. Policymakers at the Federal Reserve are working to bring inflation down to 2%. On the month, the index rose by 0.4% in February. This was also up slightly from 0.3% the previous month.
The so-called “core” consumer price index, a closely watched measure of inflation which removes volatile food and energy costs, slipped from an annual rate of 3.9% in January to 3.8% last month – but this was also higher than expected.
The strength of this reading is likely to test confidence that the Fed, which aggressively increased interest rates in a bid to reduce inflation, could soon begin cutting them.
Shelter costs like rent, airline fares, motor vehicle insurance and the price of clothes all rose last month, according to Tuesday’s report from the labor department, driving the headline inflation indices higher.
Some grocery prices decreased, however, including dairy products and fruit and vegetables.
Unemployment rose and wage growth slowed in the three months to January as the UK labour market showed signs of weakness, reflecting a broader slowdown in the economy.
The unemployment rate rose unexpectedly to 3.9 in January from 3.8% in December according to the Office for National Statistics, while annual average wages growth including bonuses fell to 5.6% from 5.8% in the previous month.
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Thank you for reading. We’ll be back tomorrow. Take care! – JK
Manchester United's wage bills rises, reports record revenues and £774m debt
Manchester United posted record revenues for the October to December quarter as it participated in the Champions League – while the football club’s early exit from Europe will only show up in future financial results.
The club made revenues of £225.8m in the three months to December, up 35% from a year earlier, “driven primarily by UEFA Champions League participation benefit and continued strong Matchday momentum with record attendance for all teams”.
United’s wage bill rose by 23% to £95m, mainly because of its participation in the Champions League this season, compared to the Europa League last year. However, it dropped out of the Champions League in December after a home defeat to Bayern Munich.
The company reported a net profit of £20.4m for the quarter, up from £6.3m a year earlier, its latest financial results showed. Losses in the first half, the six months to December, narrowed to £5.3m from £20.2m.
United announced the completion of the minority investment by the British billionaire Sir Jim Ratcliffe. Ratcliffe, the owner of the Ineos chemicals group, spent just over £1bn to buy a 25% stake in the club in December, and pledged a further $300m investment in infrastructure at Old Trafford – of which $200m (£157m) has been received so far.
The results show no dividends were paid to its majority owners, the Glazer family.
United also revealed its total borrowings amounted to £774m at the end of last year – $650m (£507m) in long term debt, relating to the Glazers’ buyout, and a revolving credit facility of £267m.
Cliff Baty, chief financial officer, said:
We delivered strong revenues during the first half of the fiscal year and have reiterated our guidance for record revenues for the full fiscal year. This is an exciting time at Manchester United following the completion of Sir Jim Ratcliffe’s investment, and we are all focused on working together with our new co-owners to drive the club forward and deliver success on the pitch.
