Today’s edition features:
- Prospex Oil & Gas (PXOG.L)
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The FTSE-100 finished yesterday’s session 0.09% higher at 7,544.09, whilst the FTSE AIM All-Share index was up 0.21% at 1,021.75. In continental Europe, the CAC-40 finished 0.69% lower at 5,382.91 whilst the DAX was down 0.72% at 13,215.79.
Last night in New York, the Dow Jones closed 0.15% lower at 24,754.75, the S&P 500 fell 0.32% to end at 2,681.47 and the Nasdaq eased by 0.44% to 6,963.85.
In Asian markets this morning, the Nikkei 225 was recently up 0.14% at 22,900.55 but the Hang Seng was off by 0.04% at 29,243.00.
In early trade today, WTI crude was 0.33% higher at $57.75 per barrel and Brent was up 0.16% at $63.90 per barrel.
Brexit: UK plans to soften impact on European banks
The Bank of England is to unveil plans allowing European banks to operate in the UK as normal post-Brexit. The BBC has learned that banks offering wholesale finance – money and services provided to businesses and each other – would operate under existing rules. It would apply even in a “no deal” scenario, the Bank is due to announce later on Wednesday. It means EU banks operating through branches can continue without creating subsidiaries – an expensive process. The difference between branches and subsidiaries is something all of us might have hoped not to care about ever but it is significant – so please bear with me. Branches offer an easy way for banks to move money around their international operations, but present the risk that in the event of a financial crisis, funds are quickly repatriated to the foreign bank’s headquarters – leaving customers of the UK branch out of pocket. Subsidiaries are forced to hold their own shock-absorbing capital which can’t cut and run – they essentially become UK companies. Changing from a branch to a subsidiary could cost billions for a bank like Deutsche Bank, for example, which employs 9,000 people in the UK. Currently, banks based anywhere in the EU can sell services to anywhere else in the EU thanks to an instrument known a financial services passport.
Source: BBC News
Prospex Oil & Gas (PXOG.L, 0.58p) – Speculative Buy
Prospex has announced the successful completion of the Podere Maiar 1d well onshore Italy. Two gas reservoirs have been intersected (C1 and C2) and a total of 11m have been perforated to balance flow rates and long term production potential. Of the two reservoirs C2 is judged to be the most significant.
Our view: More good news from Prospex. The well is on gas, completed for production, and we look forward to flow tests in January.
Beaufort Securities acts as a corporate broker to Prospex Oil and Gas plc
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