FTSE 100 Live 08 August: IHG, Abrdn, Glencore post results, shares lower

Music funding fund Round Hill buys 1,200 nation songs
London-listed music funding fund Round Hill Music has purchased the rights to greater than 1,200 songs from nation musicians together with Carrie Underwood, Faith Hill and Tim McGraw.
The agency will purchase the remaining 50% of the rights to the music of Grammy Award-winning songwriter Craig Wiseman and his publishing firm Big Loud Shirt. The songs embrace Underwood’s US top-10 hit ‘Before He Cheats’ and McGraw’s ‘Live Like You Were Dying’.
Round Hill, which has primarily focussed on basic rock to date, mentioned the additions would assist it diversify its portfolio, of which nation now makes up 11%. At the identical time, it mentioned the songs nonetheless have sufficient enduring attraction to suit its funding technique.
CEO Josh Gruss mentioned: “Craig Wiseman and his publishing company, Big Loud Shirt, have produced some of the highest profile, most recognisable and enduring Country music hits of the last three decades, bringing them firmly in line with the song profile of the company’s portfolio.”
Roundhill didn’t reveal the acquisition value for the songs.
IWG boss warns on lack of inexpensive housing after surge in demand for versatile workplace house
The boss of serviced workplaces large IWG in the present day blasted an absence of sound authorities coverage on inexpensive housing because the agency reported a surge in demand for workspace within the suburbs.
Mark Dixon, who based the enterprise in 1989, instructed the Standard: “The affordability of London housing shouldn’t be excellent [and] individuals are fed up with the price of journey.
“You’ll solely get folks again to an workplace in London in the event that they stay shut by.
“It’s about authorities coverage and native London coverage.”
WGO, previously generally known as Regus, in the present day mentioned it had seen an acceleration in demand for workplace house as main employers ditched main head workplaces in favour of smaller, versatile options. IWG mentioned it had signed contracts on 400 new areas within the first six months of the 12 months in a bid to maintain tempo with demand.
Revenue within the first half of 2023 rose 14% to £1.5 billion, whereas gross earnings have been up 37% to £297 million.
Dixon mentioned corporations within the banking and insurance coverage sectors have been amongst these most keen to shift from giant head workplaces to smaller native outposts.
“Companies need flexibility – they don’t know what their business will look like in 5 years’ time,” he mentioned.
London Skyline
/ AFP by way of Getty ImagesKey market knowledge
Take a take a look at in the present day’s market snapshot as Abrdn and China-exposed shares drive the FTSE 100 down.
FTSE 100 in crimson as Glencore shares fall, TI Fluid Systems jumps 21%
The FTSE 100 index is down 18.76 factors to 7535.73, with commodities large Glencore and fund supervisor Abrdn beneath stress after their half-year outcomes.
Glencore fell 12.35p to 444.35p in a weak session for the mining sector after the most recent disappointing replace from China’s financial system. Anglo American additionally misplaced 31.5p to 2169p and Rio Tinto eased 45.5p to 4921p.
The blue-chip fallers board was topped by Abrdn, with a decline of 5% or 12.1p to 206.4p after the Interactive Investor proprietor reported a retreat in belongings beneath administration to £495.7 billion.
The greatest performing inventory within the FTSE 100 was schooling and coursework writer Pearson, which lifted 2% or 18.4p to 862p. Holiday Inn proprietor IHG additionally improved 92p to 5750p on the again of its interim outcomes.
The FTSE 250 index rose 13.49 factors to 18,875.16, with the standout performer being TI Fluid Systems after a results-day rise for shares of 21% or 27.2p to 157p.
Abrdn shares slide as shoppers transfer away from equities
Shares in Abrdn fell as a lot as 6% within the opening minutes of commerce in London because the asset supervisor reported a lack of £169 million coupled with £4.4 billion in internet outflows.
The agency, previously generally known as Aberdeen, mentioned the losses relate to the drop within the worth of listed shares in its portfolios whereas it put the outflows right down to shoppers pulling out of equities in a shift of their “asset allocation moved to debt products and cash in the rising interest rate environment.”
Abrdn warned the “outlook for international markets stays unsure and we’re taking actions to place our Investments enterprise on a greater footing.
“In the brief time period, extra headwinds come up from altering consumer demand and preferences.”
H&T plans to open extra pawn outlets amid excessive demand
Pawnbroker H&T mentioned it has plans to open a lot of new outlets amid excessive demand for its companies within the cost-of-living disaster.
Profit was up by 31% to £8.8 million. The group mentioned the financial setting means there may be “an opportunity for significant growth” going ahead.
“We anticipate continued strong demand for our core pawnbroking product as the impact of inflation on the consumer increases the need for small-sum, short-term loans at a time when supply of credit is more constrained than has been the case for many years,” it mentioned.
To taker benefit of the excessive demand, H&T hopes to extend its retailer property from the present 273.
“We have a list of locations where we would like to open new stores,” the enterprise mentioned. “Further openings are planned for the remainder of the year and beyond, with the capital investment of a new store being relatively modest and an expectation that new stores will become profitable, on a run-rate basis, no later than their second year of operation.”
H&T can be rising its on-line presence.
Earnings droop at mining large Glencore amid ‘normalising’ commodity markets
Mining and commodities multinational Glencore mentioned in the present day that its markets have been “normalising” because it reported a droop in income and earnings, led by a drop in vitality costs.
The FTSE 100 firm reported a drop of three-fifths in earnings of $6.3 billion and a a 20% slide in income of $107 billion.
Gary Nagle, CEO, described the efficiency as “healthy”, saying it got here “against the backdrop of a normalisation of commodity market imbalances and volatility, primarily across the energy spectrum”.
IHG revenue nearly doubles as UK rebound continues
InterContinental Hotels Group’s earnings rocketed 89% to $567 million (£444 million), as areas just like the UK continued to develop from robust comparatives on high of the post-pandemic rebound in Asia.
Despite the UK’s earlier enjoyable of the final Covid-19 restrictions which means IHG confronted a more durable comparable within the nation, income per out there room was nonetheless up 18%. That was largely due to a 22% improve in London, after now-departed CFO Paul Edgecliffe-Jonhson instructed the Standard in February that there was “still room” for an additional rebound within the capital.
The sharpest progress although, was in China, the place income greater than doubled as anticipated.
New CEO Elie Malouf, who took over from Keith Barr after he left for the US on the finish of June, mentioned: “I’m honoured to take over as IHG’s group CEO and excited to look forward with our proficient groups and house owners all world wide to an vital subsequent chapter of progress. Our groups have delivered robust ends in the primary half, with monetary efficiency, resort openings and signings all considerably above prior 12 months comparisons.
“Travel demand is very healthy, with RevPAR improving year-on-year across all our markets and exceeding 2019 pre-pandemic peaks for four consecutive quarters. In the Americas and EMEAA regions, leisure demand has remained buoyant and business and group travel continued to strengthen, while in Greater China, demand has rebounded rapidly.”
China import figures disappoint, Wall Street rallies
China in the present day recorded its steepest month-to-month decline in imports since January because the nation’s post-lockdown restoration reveals extra pressure.
July’s year-on-year fall of 12.4% was a lot worse than the 5% forecast amid the weakening of home demand. The 14.5% droop in exports additionally represented the largest drop since February 2020, a determine that in contrast with the anticipated 12.5%.
Hong Kong’s Hang Seng index fell 2% and the Shanghai Composite by 0.4% this morning, regardless that the commerce figures will make stimulus measures by China policymakers extra doubtless.
The fall for Asian markets got here regardless of a strong handover from Wall Street after the S&P 500 index ended a run of 4 successive declines with an increase of 0.9%.
The Dow Jones Industrial Average lifted 1.2% and the Nasdaq Composite by 0.6%, with futures markets pointing to a flat begin in the present day.
The FTSE 100 index closed 9.88 factors lower yesterday and is predicted by CMC Markets to open in the present day’s session down eight factors at 7546.
Morning refresh: What you should know to begin the day
Good morning from the City desk of the Evening Standard.
UK home costs fell once more in July, in line with mortgage lender Halifax. But these falls got here in at a slower tempo than within the month earlier than, in indicators the market has proven resilience amid the surge in rates of interest.
In the broader financial system although, there have been indicators companies have been pushing the pause button.
Business brokerage Christie Group issued a revenue warning after it complained that enterprise house owners have been dithering on signing off offers amid wider uncertainty (its shares sunk 24%), whereas recruitment agency Page Group mentioned it had minimize tons of of workers from its workforce because it bemoaned “lower levels of both candidate and client confidence resulting in delays in decision making,” with employers choosing non permanent as a substitute of everlasting hires.
Whatever the reason for corporations pushing pause, it’s arduous to see how the sluggish UK financial system will get some wind in its gross sales and not using a resumption in decision-making confidence.
Overnight within the US, shares in Peter Thiel-founded Palantir fell as a lot as 10% in after-market buying and selling on Wall Street earlier than recovering shortly thereafter, because the agency mentioned its full-year income would fall nearer the underside finish of earlier steerage. The tech large was bullish on its prospects for capturing a surge in demand for AI merchandise.
“The scale of the opportunity that lies ahead has increased significantly in recent months. And we intend to capture it,” CEO Alexander Karp mentioned.
Here’s a take a look at a few of our different headlines from yesterday:
This morning we’re anticipating outcomes from international resorts chain IHG, asset supervisor Abrdn and mining large Glencore.
Annual home value progress turned damaging for the primary time since 2012 in May, in line with Halifax (Gareth Fuller/PA)
/ PA Archive