- FTSE 100 up 96 points
- Boris Johnson’s no-confidence motion confirmed
- Aerospace stocks doing well despite airport chaos
The FTSE 100 was up 96 points at 7,629, showing no concern that Prime Minister Boris Johnson is set to face a vote of confidence from the parliamentary Conservative Party.
“Britain Prime Minister Boris Johnson faces distrust in his leadership as tensions rise within the Conservative government. The threshold of 15% of Tory lawmakers has been exceeded, with at least 54 of the 360 lawmakers writing to the chairman of the 1922 committee, Graham Brady, triggering the vote that will take place tonight at 6-8 p.m. ,” reported Victoria Scholar of Interactive Investor.
“Discontent about Partigate, plans to send migrants to Rwanda, as well as plans to rewrite the Northern Ireland Protocol, have eroded his popularity. Although Johnson may have avoided today’s vote, a no-confidence vote has historically been marks the beginning of the end of the prime minister’s time,” he added.
BREAKING: Boris Johnson to face no-confidence motion – Tory MPs just sent ???????? pic.twitter.com/xe4hza3khl
— PippaCrerar (@PippaCrerar) 6 June 2022
Strange as it may sound, with reports of travel chaos at airports, aerospace-related stocks are among those taking Footsy higher.
jet engine developer and manufacturer Rolls-Royce Holdings Plc (LSE: RR.) The company is up 3.7% at 92.4p while holding Melrose Industries Plc (LSE: MRO, OTC: MLSPF), which owns automotive and aerospace engineer GKN, is 4.0% stronger at 138.75p. The latter has announced that it is to sell the Ergotron business to private-equity firm The Sterling Group for £520 million in cash.
9.40 am: Partygate Ring of Confidence
Boris Johnson will face a motion of no confidence on Monday evening as the ‘Partygate’ scandal continues to make headlines despite first coming to the public notice last year.
The violation of the 54-character limit was confirmed by Sir Graham Brady, chairman of the 1922 committee.
Sir Graham said in a statement: “The threshold of 15% of the parliamentary party seeking a vote of confidence in the leader of the Conservative Party has been exceeded.
“As per the rules, voting will take place between 1800 to 2000 today.
The votes will be counted soon thereafter.”
Labor leader Sir Keir Starmer insisted it was in the “national interest” to vote.
He said: “They have lost faith in my view of the country, I think all the evidence I have seen is very clear.
“He doesn’t even have a plan for the country and I think those two things mean that it is in the interest of the nation that he goes.”
Meanwhile, the Chancellor of the Exchequer Rishi Sunak has raised his voice in support of the Prime Minister.
From the vaccine rollout to our response to Russian aggression, the PM has shown the strong leadership that our country needs.
I am supporting them today and will continue to support them as we focus on growing the economy, tackling the cost of living and bridging the backlog of COVID.
— Rishi Sunak (@RishiSunak) 6 June 2022
9.08am: Blue-chip riser
Endeavor Mining PLC (LSE: EDV, TSX: EDV, OTCQX: EDVMF) Blue-chip risers led, up 4.3% to 1,882p, as commodities were boosted by the easing of China’s lockdown.
Melrose Industries Plc (LSE: MRO, OTC: MLSPF) was not far behind, rising 3.9% to 138.6p, when it announced it had agreed to sell its Ergotron unit to the American Sterling Group for £519mln.
8.10 am: Pound jumps on Boris Johnson’s no-confidence motion
In a volatile and volatile few years for the pound over Brexit, war and economic downturn, its value soared after rumors of a no-confidence motion for Prime Minister Boris Johnson.
The no-confidence motion will take place when 54 out of 650 members of parliament write to request re-evaluation of the one who ran the country as a ‘partygate’ scam.
BREAKING: A vote of confidence in Boris Johnson is to be announced this morning, I understand.
I am told that Sir Graham Brady is expected to make a statement to the camera around 8 a.m. that the 54 character limit has been reached.
— Lucy Fisher (@LOS_Fisher) 6 June 2022
The blue-chip index opened 74 points or 1.0% higher at 7,607 on Monday morning, with the FTSE 100 also enjoying rumblings.
7.02am: Footy to Leap
The FTSE 100 was tipped for healthy gains in early trade as the UK returned to normal after a long platinum jubilee weekend.
The financial spread betting firm for Footsy was up more than fifty points compared to last Wednesday’s close of 7,532.
After a roller coaster in the US on Friday with non-farm payroll numbers, Asian markets are setting the tone with recovery in Hong Kong and Japan.
Jeffrey Haley at OANDA said: “Asia is off to a completely organized start to the week.
“China announced further easing of restrictions in Beijing over the weekend, seeing some Asian equity markets and US futures trading in positive territory.
“The other glimmer of relief is that officials in Washington are considering selectively removing tariffs on Chinese imports to aid in the fight against inflation.”
Crude oil prices hit US$120 a barrel on reports this weekend, Saudi Arabia had raised prices for customers in Europe and Asia.
The headlines in Britain this week are likely to be dominated by the rising prospect of a no-confidence motion on PM Boris Johnson.
Most of the action on the stock market and on the economic front takes place at the end of the week.
Results this week on BAT, Wizz Air and Aveva (read more) while inflation will continue to dominate the macro picture with UK, Europe and US numbers on Thursday and Friday.
6.50am: Early Markets – Asia/Australia
Asian shares were mostly bullish on Monday as China’s Caixin Services Purchasing Managers’ Index came in at 41.4, an improvement over April’s reading of 36.2, but still lower than the 50 that separates growth from contraction.
In China, the Shanghai Composite gained 0.92% and Hong Kong’s Hang Seng Index gained 1.32%.
Japan’s Nikkei 225 was trading 0.59% higher while South Korea’s Kospi rose 0.44%.
Australia’s S&P/ASX200 fell 0.52% on losses in the technology sector.