- FTSE 100 5 factors higher at 7,699
- BT names Telia’s Allison Kirkby as new chief govt
- Government confirms raft of latest oil and gasoline licences to be granted
4.50pm: FTSE 100 closes higher; US shares up noon
The FTSE 100 completed the day on a excessive notice, rising 5 factors to 7699 as cooling home inflation boosted danger urge for food even as Heineken minimize its 2023 revenue progress forecast.
“While investors broadly expected a cut to (Heineken’s) its guidance, a flat to mid-single digit organic EBIT growth is disappointing,” analysts at UBS mentioned.
Other notable movers included shares of Dr Martens PLC (LSE:DOCS), which climbed greater than 5% after media studies that activist investor Sparta Capital has amassed tens of tens of millions of kilos of the British bootmaker’s stock.
4pm: Oil costs begin week off on entrance foot
Brent crude was up 0.6% to US$85.51 per barrel this afternoon, whereas West Texas Intermediate (WTI) added 1.3% to US$82.57.
This places the commodity on observe for one of the best month-to-month efficiency this yr, thanks largely to greenback weak point.
“Fears that Saudi Arabia will go further and extend their production cuts into September is seeing demand return at the same time as the US economy looks to be faring better than expected,” acknowledged Michael Hewson at CMC Markets UK.
Similarly, gold appears set to reverse June losses, with month-to-month good points of 2.5%, although spot costs nonetheless stay beneath the US$2,000 resistance level at US$1,968.
3.37pm: FTSE 250’s stellar July
Briefly shifting away from the top-tier shares, it’s price stating that the FTSE 250 mid-cap index is on observe for its finest month-to-month efficiency of the yr, or at the least roughly on par with January’s efficiency.
With one hour left of the buying and selling month, the mid-cap index appears prefer it was shut 3.7% higher at 19,182.
In comparability, the FTSE 100 index appears set to shut round 2.4% higher, regardless of hitting an eight-month low throughout the first week.
Top month-to-month movers within the 250 set embody defence firm Babcock including 33% regardless of combined buying and selling outcomes, Domino’s Pizza up 28% on the again of an Uber partnership and Dr. Martens up 26%, having recovered since final month’s revenue tumble.
3.18pm: Looking again on the high movers in July
With July drawing to an in depth, let’s take a look at one of the best performers within the FTSE 100 throughout the month.
Taking high spot is Ocado, which surged 68% higher after posting a uncommon revenue within the first six months of 2023.
Rolls-Royce Group is available in second, including 23.5% after crushing first-half forecasts.
Packaging group Smurfit Kappa, Sports Direct guardian Frasers Group and housebuilder Persimmon spherical out the highest 5.
The FTSE 100 index as a complete appears set to shut round 2.4% higher, regardless of hitting an eight-month low throughout the first week.
Glimpses of a fallback in UK inflation helped to push the index higher since this low level.
2.48pm: FTSE 100 hits intraday excessive
FTSE 100 has added near 20 factors since US markets commenced, bringing the blue-chip index to an intraday excessive of 7,714.
Both Nasdaq and the broad S&P 500 indexes in New York opened higher than anticipated at 0.3% and 0.2% respectively, feeding by to higher costs on London-listed equities.
Top FTSE 100 movers embody Centrica, British Airways guardian IAG, Rightmove and Frasers Group.
Mining heavy hitters Glencore and Angofagasta are additionally surging because of exhibiting on the copper spot market.
2.27pm: Bitcoin caught in a rut
Bitcoin (BTC) has added round 0.6% in in the present day’s trades, with the benchmark cryptocurrency at the moment swapping for US$29,453.
The world’s largest cryptocurrency has didn’t knock above the US$30,000 value level for seven days now, after trending above this value level for many of July.
Without any vital catalysing occasions in current weeks, bitcoin seems to be caught in a rut, with outflows from main bitcoin funding funds beginning to pile up.
The world cryptocurrency market capitalisation is at the moment valued at US$1.19tn, with slightly below 50% attributed to bitcoin’s circulating provide.
Back to footsie, the London blue-chip index is at an intraday excessive of 7,711, or 0.23% higher day on day.
2.08pm: Surge in copper costs sends miners higher
Copper on the London Metal Exchange has reached a five-week excessive of US$8,670 (£6,745) per metric ton, the steel’s finest spot value since June 22.
The surge in copper costs is probably going due optimistic expectations of further stimulus measures from China, prone to increase the demand for important sources.
Consequently, copper is ready to realize its most excellent month-to-month efficiency since January.
Major copper miners have responded effectively. BHP Group Ltd (LSE:BHP, ASX:BHP) has added 0.6% and Rio Tinto PLC (LSE:RIO) 0.4%, whereas Glencore PLC (LSE:GLEN) has steered 1.7% higher to 474.45p.
The wider FTSE 100 index is at the moment sitting 0.1% higher at 7,702.
1.35pm: Here’s a fast recap of the highest risers and fallers on the junior market in the present day
Metals One PLC (AIM:MET1) made a strong stock market debut, with shares rising to a 5% premium to the problem value within the first hour of buying and selling on AIM.
The firm, which has raised £2.2mln as a part of its IPO, is advancing battery steel tasks at brownfield websites in Finland and Norway.
Harland & Wolff Group Holdings PLC (AIM:HARL), the shipbuilding firm, jumped over 17% after it gained a vessel refurbishment contract price as much as £70mln.
Executing a “complex mid-life upgrade” at its drydock in Belfast, the largest within the UK, the corporate will begin work on the contract for 5 months in early 2024, an announcement revealed.
Aptamer Group PLC (AIM:APTA) shares plummeted by 49% following the corporate’s announcement of a £3.6mln fundraising plan which suggests the enterprise is not on the market.
New shares are being purchased for 1p every, a 79% low cost to Friday’s closing value, giving new traders over 84% of the corporate, a specialist in Optimer binders utilized by the life sciences business.
Jadestone Energy PLC (AIM:JSE) tumbled 34% as extra technical issues noticed its Montara area, offshore Australia, shut down once more.
A gasoline alarm was triggered in a water ballast tank over the weekend, Jadestone mentioned, indicating a attainable seepage into adjoining tanks on the floating manufacturing vessel on the web site.
Flowtech Fluidpower (AIM:FLO), the hydraulic and pneumatic part engineer, slumped practically 20% after issuing a full-year revenue warning in a first-half buying and selling replace.
Revenues for the Flowtech division, the arm aimed toward promoting fluid energy merchandise throughout all business markets, dropped by 5.7% year-on-year to succeed in £26.6mln within the first half of the 2023 monetary yr.
1.00pm: US futures level to modest good points on Wall Street
US blue chips are anticipated to push higher on Monday, the ultimate session for July, aiming to consolidate the month’s robust good points.
In pre-market buying and selling, futures for the Dow Jones Industrial Average (DJIA) had been 0.1% higher, whereas these for the S&P 500 additionally rose 0.1%, and contracts for the Nasdaq 100 futures had been up 0.06%.
The blue-chip DJIA is up 3.1% to this point in July and final week posted a 13-day advance that matched the index’s longest streak of good points going again to 1987.
The broader S&P 500 is up 3,0% for the month, on observe for its fifth optimistic month in a row for the primary time since its seven-month streak ending August 2021. The tech-heavy Nasdaq Composite has gained 3.8% month so far, additionally on observe for its fifth straight successful month.
Investor consideration this week will likely be on the July payrolls report, due on Friday, with forecasters anticipating the US economic system to have added 200,000 jobs for the month. Non-farm payrolls elevated by 209,000 in June.
Last week, the Federal Reserve hiked charges to their highest degree in additional than 22 years with a much-anticipated quarter-point hike to snuff out the spectre of inflation, after a pause within the mountaineering cycle at its earlier assembly.
In an announcement after the newest coverage determination, Fed chair Jerome Powell mentioned the central financial institution will make now data-driven selections on a “meeting-by-meeting” foundation.
The company earnings river additionally continues to move. Joshua Mahony, chief market analyst at Scope Markets commented: “Earnings stay a key driver of markets as we transfer by the second quarter, with massive hitters Apple and Amazon sustaining the tech theme this week.
Today sees few main earnings releases of notice, as tomorrow will see extra distinguished names such as Merck, Pfizer, AMD, Caterpillar, and Starbucks report.
“With 51% of the S&P 500 having reported, this marks the halfway point for Q2 earnings season. It has been notable that those initial reports have seen the blended earnings growth rate for Q2 drop to -7.3% (vs 7% expected), despite seeing 80% of the companies outperform estimates.”
12.35pm: Prime Minister backs petrol and diesel ban by 2030
The ban on the sale of latest petrol and diesel automobiles from 2030 stays authorities coverage, the prime minister mentioned in the present day.
Rishi Sunak has been below rising stress from a rump of Tory MPs who’ve known as for the deadline to be pushed again.
But, the PM mentioned it remained a part of his agenda and reiterated his dedication to transition to internet zero in a “proportionate and pragmatic way”.
Echoing Sunak, the power minister Andrew Bowie informed Sky News: “We remain committed to ensuring that more people get access to, are able to buy, are able to drive electric and hybrid cars.”
11.55am: BAT rejects name to relist in US – The Times
The new chief govt of British American Tobacco has rejected calls from a high shareholder to maneuver its major itemizing from London to New York saying relocating was “not a top priority” and a “very simplistic view”.
Rajiv Jain, founding father of GQG Partners, an American-based funding agency, has inspired the FTSE 100 proprietor of Lucky Strike and Dunhill cigarettes to shift its primary itemizing from London, which dates to 1912.
However, Tadeu Marroco, who was promoted from group finance director to the highest job in May following the abrupt departure of Jack Bowles as BAT’s chief govt, told The Times mentioned it’s “very simplistic to attribute the valuation gap to the place where we are listed”.
“I note that there is an overall difference in terms of valuation between S&P 500, for example, and the FTSE 100, but it’s much more related to the sectors that are present in those indices and the weight of those sectors in the first place.”
11.22am: Mobico rises on studies of Eurostar rival
Mobico Group PLC, the bus and rail operator, is one in every of a group of corporations taking a look at launching a cross-Channel practice service to rival Eurostar, in keeping with studies.
Shares jumped 5.5% to 95.80p.
The Financial Times mentioned different events concerned within the discussions embody the Spanish Cosmen industrialist household, which is an investor in Mobico, previously recognized as National Express, in keeping with two individuals with information of the plans.
The new rail service, to be named Evolyn, would begin working between London and Paris by the Channel Tunnel as early as 2025, they mentioned, though remaining particulars have but to be finalised and will change.
The initiative would signify the primary problem to Eurostar’s monopoly of passenger rail site visitors linking London to main cities in Europe together with Brussels and Amsterdam as effectively as Paris.
Analysts at Liberum mentioned: “We would expect any such project to have a lead time of several years.”
They identified the Channel Tunnel has extraordinarily stringent security necessities for trains whereas customised trains would have to be ordered which means a lead time of at the least two years.
“Government co-operation would also be required to facilitate increased customs and border post capacity at all stations used by the potential new services,” the dealer added.
10.45am: Eurozone inflation falls and sees return to progress
The FTSE 100 is buying and selling little modified now after figures confirmed Eurozone inflation fell according to market expectations and that the only foreign money space returned to progress through the second quarter of 2023.
Inflation fell according to expectations to 5.3% in July, in keeping with Eurostat, the EU’s statistical workplace, down from 5.5% in June.
Euro space #inflation at 5.3% in July 2023, down from 5.5% in June. Components: meals, alcohol & tobacco +10.8%, companies +5.6%, different items +5.0%, power -6.1% – flash estimate https://t.co/ZRulqYvik4 pic.twitter.com/sUJi2lTwUX
— EU_Eurostat (@EU_Eurostat) July 31, 2023
But core inflation, which excludes power and meals costs to provide a clearer signal of underlying value pressures, was unchanged at 5.5%, a contact above expectations.
Seasonally adjusted gross home product elevated by 0.3% within the eurozone within the second quarter, in comparison with the primary quarter, forward of the consensus of 0.2%.
Euro space #GDP +0.3% in Q2 2023, +0.6% in contrast with Q2 2022: preliminary flash estimate from #Eurostat https://t.co/n5WsMENWRs pic.twitter.com/jAzDwpeQqC
— EU_Eurostat (@EU_Eurostat) July 31, 2023
ING Economics mentioned the better-than-expected determine was boosted by very robust Irish exercise.
“Without Ireland, growth would have been halved,” it mentioned, including that “looking through the most volatile components, we argue that the economy has remained broadly stagnant.”
10.17am: Lending picks up in June regardless of rising charges – Bank of England
UK lenders permitted many extra mortgages than anticipated in June and internet unsecured lending to customers leapt by essentially the most in over 5 years, figures from the Bank of England confirmed in the present day.
Banks and constructing societies permitted 54,662 mortgages in June, essentially the most since October 2022, and higher than from 51,100 in May, whereas approvals for remortgaging rose to 39,100 from 34,100 throughout the identical interval.
UK Mortgage Approvals Jun: 54.7K (exp 49.0K; prevR 51.1K)
– Net Lending Sec. On Dwellings Jun: £0.1B (exp £0.2B; prev -£0.1B)
– Net Consumer Credit Jun: £1.7B (exp £1.3B; prev £1.1B)
– Consumer Credit (Y/Y) Jun: 7.6% (prevR 7.6%)
— LiveSquawk (@LiveSquawk) July 31, 2023
Net mortgage borrowing by people was £100 million in June, swinging from internet repayments of £100mln in May and file excessive internet repayments of £1.1bn in April.
The efficient rate of interest on newly drawn mortgages, that means the precise rate of interest paid, elevated by an extra 7 foundation factors to 4.63% in June.
“June’s marginal uptick on May shows that people have recalibrated to the new rate environment and are getting on with their lives,” Simon Jones, CEO of investing comparability platform, InvestingReviews.co.uk commented.
The BoE additionally reported a £1.66bn month-to-month improve in internet client lending, the most important such improve since April 2018.
Jones mentioned this “shows the growing reliance on credit as people’s finances are stretched to breaking point.”
9.52am: Dr Martens on the entrance foot
A great begin for iconic bootmaker Dr Martens PLC (LSE:DOCS) which has risen after studies an activist fund supervisor has been constructing a stake within the agency.
Sky News reported that Sparta Capital has quietly amassed stock the FTSE 250-listed outfit and has been partaking with its board in an try to enhance its monetary and working efficiency.
Sparta, which was launched in 2021 by Franck Tuil, a longstanding govt on the distinguished investor Elliott Management, is now understood to be a high ten shareholder within the footwear model.
Dr Martens has seen its valuation droop amid provide chain bottlenecks and a slowdown in US gross sales leaving shares 40% decrease within the final 12 months.
However, it’s a brighter image in the present day and shares are 5.1% to the nice at 153.60p.
Meanwhile, the FTSE 100 is steadily consuming away atearlier losses, now down 7 factors at 7,688.
9.25am: Energy producers higher as PM indicators a whole bunch of latest licences
Shares in North Sea power producers are within the inexperienced in early buying and selling in London, after PM, Rishi Sunak confirmed that a whole bunch of latest oil and gasoline licences will likely be granted within the UK.
Number 10 mentioned a whole bunch of latest oil and gasoline licences will likely be granted off the coast of Scotland to “boost British energy independence” and “reduce reliance on hostile states”.
Ministers count on the present 33rd spherical to award over 100 licences, beginning within the autumn. The spherical was launched in October and in January it was confirmed that 115 bids had been acquired.
Centrica is up 1.7%, Ithaca Energy is 3.5% higher and Harbour Energy 2.2% to the nice.
9.07am: Pearson shares fall again regardless of backing steerage
Pearson PLC (LSE:PSON) has backed full-year steerage after reporting a 5% bounce in half-year gross sales and a hefty bounce in working revenue to £219mln from £148mln.
Assessment & Qualifications gross sales had been up 7% largely pushed by a powerful efficiency in Pearson Vue though Virtual Learning gross sales decreased 15%. Higher Education gross sales had been down 2%, according to expectations.
Andy Bird, chief govt, mentioned: “Our excellent performance in the first half of 2023 means we are confident of achieving our full year expectations.”
Pearson mentioned it was exploring alternatives in utilizing AI to drive additional effectivity and generate further value financial savings.
But shares which initially opened 3% higher fell again and are down down 0.8% at 862.40p.
8.41am: New BT boss the “continuity candidate”
The new chief govt at BT Group PLC (LSE:BT.A), Allison Kirkby, is the “continuity candidate,” in keeping with interactive investor’s head of funding Victoria Scholar.
Scholar defined “having been a non-executive director of BT since 2019, Kirkby has benefitted from first hand insight into the business at board level and as the boss of Swedish telecoms giant Telia, she offers a wealth of experience in the sector.”
“Kirkby is the continuity candidate, with plans to support BT’s existing strategy including cutting costs and its 5G and full fibre roll-out.”
Other points in Kirkby’s inbox together with dealing with French billionaire Patrick Drahi who has bumping up his stake within the telco.
“Investors will be hoping that Kirkby has steer BT’s shares in a more positive direction, having almost halved under Jansen’s watch since 2019,” Scholar mentioned though she famous “the shortage of market response in the present day from the stock suggests shareholders may have some convincing.”
BT shares had been down 0.8% at 123.21p with the FTSE 100 now down 21.62 factors at 7,672.65.
8.15am: FTSE decrease and Marshalls tumbles after warning
The FTSE 100 edged decrease in early exchanges with traders already eyeing Thursday’s rate of interest determination within the UK.
The Bank of England is predicted to lift rates of interest by 25 foundation factors though a heftier improve of 50 foundation level cannot be dominated out.
At 8.15am, London’s blue-chip index was down 13.63 factors at 7,680.64 whereas the FTSE 250 was little modified at 19,114.97.
In the FTSE 250, Marshalls PLC (LSE:MSLH) fell 9% to 251.70p after saying plans to chop 250 jobs after warning efficiency within the second half will likely be beneath its earlier expectations.
In a buying and selling replace for the six months to June 30, the constructing supplies provider mentioned this mirrored the sustained excessive ranges of inflation, rising rates of interest and weak client confidence.
Peel Hunt plans to scale back its 2023 estimates by 24%, and 2024 by 25%. It has minimize its value goal to 310p from 380p however retained a purchase score.
It thinks “management is taking the right actions on the cost base.”
Back to the FTSE 100 and BT Group PLC (LSE:BT.A) shares had been little modified after appointing Telia’s Allion Kirby as chief govt.
Kirby will succeed Philip Jansen who introduced earlier this month he was stepping down.
Pearson was a star performer, rising 3.2% to 897.80p after reporting pre-tax revenue within the six months ended June 30 rose to £236mln from £185mln a yr earlier.
Looking forward, the corporate mentioned that it’s assured in reaching 2023 expectations.
Chief Executive Andy Bird mentioned: “Our wonderful efficiency within the first half of 2023 means we’re assured of reaching our full yr expectations.”
“We have continued to execute effectively operationally and maintained a pointy give attention to delivering efficiencies while positioning our portfolio for long-term progress.”
7.52am: Marshalls axes 250 jobs as warns on earnings
Marshalls PLC (LSE:MSLH) plans to chop 250 jobs after warning efficiency within the second half will likely be beneath its earlier expectations.
In a buying and selling replace for the six months to June 30, the constructing supplies provider mentioned this mirrored the sustained excessive ranges of inflation, rising rates of interest and weak client confidence.
Marahalls expects income for the six months interval of £354mln, up 2% on final yr’s £348mln, however down 13% on a like-for-like foundation.
Adjusted pre-tax revenue is predicted to be round £33mln, down from £45mln final yr.
The agency mentioned the consequence have been delivered towards the backdrop of difficult market situations with persistent weak point in new construct housing and personal housing RMI, that are key finish markets for the group.
Marshalls has closed its manufacturing facility in Carluke, decreased shifts and capability in different services, and a restructuring of its business staff in efforts aimed toward managing money.
The measures are anticipated to save lots of £9mln yearly with round 40% of this profit delivered in 2023.
The 250 job cuts are along with the 150 introduced within the second half of 2022.
7.40am: Banks plan advert blitz to focus on monetary help
Britain’s largest mortgage lenders will this week launch a £5mln promoting marketing campaign to focus on help for cash-strapped prospects.
The marketing campaign, orchestrated by the business lobbying group UK Finance, comes weeks after the signing of a mortgage constitution by main lenders following talks with the chancellor, Jeremy Hunt.
The adverts will urger prospects to ‘reach out’ if they’re struggling assembly their month-to-month repayments.
7.23am: BT strikes swiftly to call Allison Kirby as new CEO
News of a change on the high at BT Group PLC (LSE:BT.A) which has moved swiftly in appointing Allison Kirkby as chief govt who’s taking up from Philip Jansen who introduced he was stepping down final month.
Kirby, who has been president & CEO of Telia, the Swedish digital communications and telecommunications group, since early 2020, will assume the function by the top of January 2024 on the newest.
She moved into the TMT sector in 2010, initially becoming a member of Virgin Media, and was most lately president & CEO of TDC, the most important telecommunications firm in Denmark.
She has been a non-executive director at BT Group since 2019.
Jansen will help the handover till the top of March 2024.
7.00am: Weak begin anticipated in London
The FTSE 100 is predicted to open decrease on Monday after information from China confirmed the manufacturing sector continued to contract.
Spread betting corporations are calling London’s lead index down by round 20 factors after it closed up 1.51 factors to 7,694.27 on Friday.
The official manufacturing buying managers’ index – a key measure of manufacturing facility output – got here in at 49.3, beneath the 50-point mark that separates growth and contraction, in keeping with the National Bureau of Statistics.
But in an effort to spice up the world’s second largest economic system, Chinese authorities introduced contemporary measures to spice up consumption, offering additional help to markets.
In the US on Friday, markets superior as soon as extra after Thursday’s blip as resilient information raised hopes of an financial mushy touchdown.
Back in London, and the early focus will likely be an replace from schooling writer Pearson.
