- FTSE 100 advances 29 factors to 8150
- Shell hundreds up new buyback after earnings impress
- Standard Chartered leads risers after huge beat
10.27am: BHP’s AAL-Team
A crack crew of BHP (LSE:BHP, ASX:BHP) executives have flown to South Africa to attempt and woo “government officials, regulators and local shareholders” of Anglo American PLC (LSE:AAL) forward of a possible larger bid.
This is a report from Bloomberg, the place the folks aware of the matter, say this AAL-team has already begun these talks.
They are “explaining the detail” of the $39 billion takeover bid that Anglo rejected.
Shares in Anglo are unmoved this morning.
10.13am: FTSE in limbo after Fed provides with one hand, takes away with the opposite
European shares are “in limbo” after the Fed assembly final evening, says market analyst Kathleen Brooks at XTB.
“The key occasion this week was the Fed assembly. It was much less hawkish than anticipated, with a charge hike explicitly dominated out.
“The market response was blended, a pointy drop decrease in Treasury yields, which has prolonged into Thursday, a weakening of the greenback, particularly vs the yen and a better gold value, though gold is slipping this morning.
“The focus will now shift to Apple outcomes tonight and the Non-Farm Payrolls report for April that’s scheduled for Friday.
“European shares are blended on Thursday, because the inventory market nonetheless can’t pinpoint when rates of interest within the US might be cut.
“The FTSE 100 is bucking the global trend, but European stocks may have been knocked by the slightly weaker final readings of Eurozone manufacturing PMI.”
The Fed view from Russ Mould at AJ Bell is that chair Jerome Powell “gave with one hand and took away with the other from a market perspective”.
While the Fed stored charges on maintain as anticipated, Powell “largely dismissed any thought they could rise from the present ranges regardless of inflation proving extra cussed than hoped. However, he did warn charges would keep larger for longer.
“He tried to reassure on the dangers of stagflation – a slowing economic system and rising costs on the identical time – arguing he didn’t see the ‘stag’ or the ‘flation’. However, he, like different central bankers, mentioned inflation can be transitory in 2021 so his monitor file on predictions isn’t precisely unblemished.”
9.31m: OECD sees more healthy world economic system
More particulars on the brand new OECD economic forecasts, which included a downgrade on the UK’s anticipated development, however “signs that the global outlook has started to brighten”, although the thinktank says development stays modest.
“The impact of tighter monetary conditions continues, especially in housing and credit markets, but global activity is proving relatively resilient, inflation is falling faster than initially projected and private sector confidence is improving,” the twice-yearly global economic healthcheck states.
Softer outcomes are actually seen in lots of superior economies, particularly in Europe, offset by robust development within the US and many rising market economies, with India, Indonesia and China’s development high of the charts.
The UK forecast was downgraded to 0.4% from 0.7% within the November report, with a rebound of 1% development in 2025.
This is slower than the UK’s Office for Budget Responsibility newest forecast, which tasks 0.8% development this 12 months and 1.9% in 2025.
While total inflation is continuous to average, the OECD expects Britain’s development charge to be dampened by persistent value rises within the companies sector and shortages of expert employees that push up wages in lots of sectors.
For the US, actual GDP is projected to develop 2.6% in 2024 and 1.8% in 2025.
The OECD expects the Fed to start financial coverage easing within the second half, although a delay to charge cuts is among the “downside risks” to the expansion forecast, in addition to the imposition of extra commerce restrictions (presumably following the presidential election).
9.09am: FTSE firmly on entrance foot
The Footsie is extra firmly on the entrance foot now, rising 0.5% and heading in direction of the intraday highs from earlier this week.
This is regardless of the the UK’s economic outlook having worsened this 12 months, based on the Organisation for Economic Cooperation and Development (OECD).
UK development is forecast to develop solely 0.4% this 12 months, down from November’s forecast of 0.7%.
It’s a blended scene wanting throughout Europe, with Milan and Madrid additionally in inexperienced as continental markets reopen after the May Day public holidays, whereas Frankfurt is slightly below flat and Paris is within the pink
Europe largest firm, Novo Nordisk (NYSE:NVO), is down 2.4%.
8.40am: Some ideas on StanChart
Standard Chartered PLC (LSE:STAN) first-quarter outcomes this morning have lifted the shares to a six-month excessive, up 6% right this moment and over 20% larger than when CEO Bill Winters known as the financial institution’s share value “crap” earlier this 12 months.
Was an unorthodox technique from the StanChart CEO, however one which seems to have paid off pic.twitter.com/9CsNxuEo9p
— Michael Brown (@MrMBrown) May 2, 2024
The outcomes offered a “fitting end” to London’s blue-chip banking season, based on market analyst Richard Hunter at Interactive Investor, ending what has been a largely optimistic quarterly reporting season for the banks.
“Despite the headwinds of its exposure to China and the real estate sector in particular, where its presence remains a blessing and a curse, the group’s general exposure to Asia has offset any immediate concerns,” Hunter says.
“The numbers themselves have for the most part sailed past expectations, largely driven by strong business activity and higher interest rates in many of the markets in which it operates.”
While web curiosity revenue grew 5% to $2.4 billion non-interest revenue leapt 37% to $37% to $2.7 billion, with notable contributions from every of its important items.
With StanChart saying that round two-thirds of the $1 billion share buyback programme had now been accomplished, Hunter says: “all things being equal could lead to a further buyback announcement at the half-year results”.
8.26am: The main blue-chip movers
A significant enhance for the blue-chips is Standard Chartered PLC (LSE:STAN), up over 6% after first-quarter revenue delivered a major beat to consensus expectations, primarily pushed by better-than-expected non-interest revenue development.
“While this included the benefit of some notable items relating to the revaluation of the Egyptian pound and Ghana hyperinflation, it was still comfortably ahead of expectations,” mentioned analysts at Shore Capital.
Shell PLC (LSE:SHEL, NYSE:SHEL) is up 0.6% after its earnings additionally got here in larger than City estimates and it loaded up one other $3.5 billion share buyback.
“Shell has beaten expectations by a reasonable margin, despite the impact of lower gas prices during the first quarter. Earnings are up, costs have fallen, and the oil and gas major has brought debt down too – all in all, it’s a solid set of numbers,” mentioned Stuart Lamont, funding supervisor at RBC Brewin Dolphin.
Smurfit Kappa Group plc (LSE:SKG) is up nearly 4% after its earnings rose and it reported continued enhancements in field demand in Europe and the Americas.
Flutter Entertainment PLC (LSE:FLTR) is up over 1% after shareholders yesterday voted overwhelmingly in assist of a transfer of its important itemizing from London to New York.
Elsewhere, Melrose Industries PLC (LSE:MRO, OTC:MLSPF) is down 1.7% after reporting a powerful begin, as anticipated, with expectations for the 12 months unchanged.
8.16am: FTSE opens larger
The FTSE 100 has opened larger, because it has all week, however the query is that if it could actually sustain the positivity.
In the opening trades, the index rose round 30 factors to 8152 however is already retreating from that degree.
It was related for the FTSE 250 which jumped 100 factors to 20,020 however has now fallen flat.
7.57am: Novo Nordisk (NYSE:NVO) ramping up manufacturing of weightloss drug
Another huge firm saying outcomes right this moment is Europe’s greatest, Novo Nordisk (NYSE:NVO), the maker of diabtes/weightloss medication Wegovy/Ozempic, with the Danish large saying it is ramping up manufacturing after affected person numbers quadrupled within the US.
First-quarter gross sales of 65.35 billion Danish krone beat forecasts of DKK 63.75 billion, together with nearly DKK 35 billion from the drug, with earnings of DKK 31.85 billion additionally got here in larger than DKK 29 billion expectations.
Full 12 months gross sales are seen rising 19-27% at fixed trade charges, which could disappoint with the present market forecast just below 26%.
7.42am: Takeover talks for Revolution Bars
Revolution Bars Group PLC is in talks about being taken over by rival hospitality agency Nightcap PLC (AIM:NGHT).
A spread of potential transactions, together with an all-share supply, have been mentioned, Revolution has mentioned in a press release this morning.
This shouldn’t be a part of Revolution’s formal gross sales course of, unveiled in early April, the struggling bar operator added, with Nightcap having till May 30 to desk a suggestion.
7.36am: Shell unloads new share buyback as earnings beat forecasts
Shell PLC (LSE:SHEL, NYSE:SHEL) has unveiled a brand new $3.5 billion share buyback because it reported larger first-quarter earnings and money move than anticipated.
Adjusted earnings from the oil supermajor got here in at $7.7 billion for the primary three months of 2024, which was down 10% 12 months over 12 months however up 6% from the ultimate quarter of 2023 and higher than the $6.25 billion common analyst forecast.
Compared with the fourth quarter of final 12 months, revenue was boosted by decrease working prices, larger margins from crude and oil buying and selling, and larger refining margins, partly offset by decrease LNG buying and selling margins and tax actions.
Adjusted earnings per share of $1.20 had been likewise down 5% on a 12 months in the past, however beat the City consensus of $0.97.
The enterprise generated $9.8 billion of free money move, up from $6.9 billion in This autumn, whereas web debt was lowered to $40.5 billion from $43.5 billion.
Having accomplished the $3.5 billion share buyback introduced at its final outcomes, the corporate introduced one other of the identical dimension that is anticipated to be accomplished by the point of half-year outcomes.
For the second quarter, adjusted earnings are anticipated to be a web expense (a loss in different phrases) of about $400-600 million, and a round $1.7-2.3 billion for the complete 12 months 2024. This excludes the affect of forex trade charge and honest worth accounting results.
7.16am: FTSE bounce-back anticipated after Fed stands pat
The FTSE 100 is anticipated to bounce again with a powerful begin on Thursday after final evening’s US Federal Reserve assembly noticed a blended market response.
Spread-betters are calling London’s blue-chip index up 35 factors, after it completed down 22.89 factors at 8,121.24.
Overnight, following the Fed resolution to not elevate charges however to announce a tapering of different tightening measures was adopted by US inventory indices first spiking larger earlier than then largely falling into losses.
The S&P 500 and Nasdaq Composite closed the session down by 0.3%, whereas the Dow Jones completed up 0.2% and Treasury yields fell.
“Fed Chair Jerome Powell argued in his post-FOMC press conference that, despite the stickiness of inflation in recent months, additional interest rate hikes were still ‘unlikely’,” mentioned Capital Economics’ Paul Ashworth.
“Moreover, while he admitted that the strong start to the year means it will ‘likely to take longer to gain the confidence’ that inflation was moving down to a sustained 2% pace, he was careful not to rule out rate cuts later this year either.”
This morning in London now we have outcomes from Shell, Melrose, Hiscox, Reach, Smurfit Kappa, Spectris and Standard Chartered.
A fast look exhibits Shell’s earnings of $1.20 per shares is above the $0.97 consensus forecast.
