Yahoo Finance FTSE 100 Live 8 May: Bank of England in focus after index surges to close at another record
A fresh record for the FTSE 100 index and trading updates by JD Wetherspoon and Informa today provided more cheer for investors.
Loss-making fashion chain Boohoo and the insurer Direct Line fared less well in the City, having also reported this morning.
The Bank of England’s two-day policy meeting is underway, with Sweden’s central bank today cutting interest rates.
FTSE 100 Live Wednesday
FTSE 100 sets another new high
Wetherspoon upbeat as sales boom
Direct Line motor volumes fall
Bank of England in focus tomorrow
Wednesday 8 May 2024 21:06 , Daniel O'Boyle
The Bank of England will take centre stage tomorrow, while ITV will be among the most-watched companies reporting results.
Results
3i
Airtel Africa
Trading updates
ITV
John Wood
Rathbones
Derwent London
Balfour Beatty
IMI
Harbour Energy
Economics
12am: Bank of England rate decision
RICS Residential Market Survey
China trade data (April)
Yet another record close
Wednesday 8 May 2024 16:37 , Daniel O'Boyle
The FTSE 100 closed at yet another record today, finishing the day up 0.5% at 8,354.05.
It hit a new intraday high of 8364 in the mid-afternoon.
Top risers included airlines IAG and EasyJet, while Ocado and Phoenix were among the big fallers.
The FTSE 100 has now gained almost 550 points since 16 April.
John Wood Group rebuffs takeover offer from Dubai-based rival Sidara
Wednesday 8 May 2024 16:23 , Daniel O'Boyle
Engineering firm John Wood Group said it has turned down a £1.42 billion buyout offer by Dubai-based rival Sidara on Wednesday.
The FTSE 250 firm, which provides oilfield and engineering services, said in a stock market update that it had rejected the offer because it “undervalued Wood and its future prospects”.
The offer of 205p per share represented a 35.5% premium on Wood’s closing price when it was made on April 30.
Energy bosses call for ‘progressive social tariff’ on bills amid price hikes
Wednesday 8 May 2024 15:02 , Daniel O'Boyle
The bosses of Centrica and E.On have called for sweeping reforms to how consumers’ energy bills are calculated in the wake of price hikes in recent years.
Chris O’Shea, chief executive of British Gas owner Centrica, called for a so-called social tariff, which would see the industry and the Government subsidise reducing bills for low-income households.
The measure would see the abolition of standing charges, which are applied daily, regardless of how much energy the customer uses, and are used to cover the cost of supplying energy to homes and businesses.
Market snapshot: FTSE fades but still up
Wednesday 8 May 2024 13:51 , Daniel O'Boyle
The FTSE 100’s gains have faded a little, but it’s still up for the day
Savile Row tailors' fury at Westminster recommendation to block new apprentice academy scheme
Wednesday 8 May 2024 13:23 , Daniel O'Boyle
The head of the Savile Row tailors’ association today said he was “shocked and horrified” by Westminster council officers’ recommendation to reject plans to demolish an empty police station and replace it with a new building that would include an academy for apprentice tailors.
Mark Henderson, chair of Savile Row Bespoke and a former chair of Royal warrant holder Gieves & Hawke, said the proposed office, restaurant and affordable tailoring workspace scheme from Czech developer CPI Property would revitalise the northern end of one of the world’s most famous addresses
TSB to shut 36 bank branches and cut 250 jobs amid digital shift
Wednesday 8 May 2024 12:41 , Daniel O'Boyle
Banking group TSB has said it is closing 36 branches and cutting 250 jobs across the business.
The job cuts will be in the fraud operations department of the bank, central operations and staff who work at the branches earmarked for closure.
The latest round of branch closures will start in September, and continue through to May next year.
Brewdog boss quits
Wednesday 8 May 2024 12:10 , Daniel O'Boyle
Brewdog boss James Watt announced today that he is stepping down from the top job at the brewer he founded in 2007.
Watt, who owns 21% of Brewdog, will stay on as a director, while chief operating officer James Arrow moves to the CEO role.
In a LinkedIn post, Watt said: “After 17 fantastic years as chief executive, I have decided to transition into a new role in the business, one of ‘captain and co-founder.”
Boohoo leaves City doubting recovery plan as losses grow to £160 million
Wednesday 8 May 2024 12:09 , Daniel O'Boyle
Fast fashion firm Boohoo left the City in doubt about its recovery plan this morning, as losses ballooned to £160 million and sales slid by double digits across all regions.
The online retailer, which also owns Debenhams and the PrettyLittleThing brand, reported a £160 million loss for the year to 29 February, up 70% on last year.
Revenue was down 17% to £1.46 billion, which the business said came "as group performance continued to be impacted by a difficult macroeconomic environment".
Yorkshire Building Society gives savings accounts ‘customer friendly’ names
Wednesday 8 May 2024 11:06 , Daniel O'Boyle
Yorkshire Building Society has renamed a range of savings accounts to make them more “customer friendly” by spelling out more clearly what they do.
The new names are the Easy Access Saver, Easy Access Isa, the Everyday Saver and the Everyday Isa.
The Society said the changes to its easy access deals aim to support customers in choosing accounts to meet their needs.
FTSE 100 higher despite pressure on BP and mining stocks
Wednesday 8 May 2024 10:28 , Graeme Evans
BP shares are under fresh pressure after yesterday’s poor reaction to first quarter results, falling another 2% or 10.65p to 493p.
Today’s decline, which follows Brent Crude’s latest price retreat to $82 a barrel, has come despite the support of UBS analysts.
They reiterated a 600p price target amid confidence in BP’s 2025 earnings targets.
The City bank is also a fan of British Gas owner Centrica, arguing the energy supplier’s shares should be trading at 170p. The widely-held stock improved 1.4p to 132.5p.
Other FTSE 100 risers included easyJet, which put back 9.8p to 520p, as the airline sector recouped losses seen yesterday. British Airways owner IAG added 5p to 182.4p.
Informa, the host of London Tech Week and owner of academic publisher Taylor & Francis, also enjoyed a strong session.
Its shares jumped 21p to 852.4p following a 50% increase in this year’s buyback programme to £500 million, a decision fuelled by recent trading at the upper end of guidance.
The fallers board featured Rio Tinto, Antofagasta and Glencore, while telecoms stocks BT Group and Vodafone retreated 1.3p to 104.1p and 0.8p to 67.1p respectively.
The FTSE 100 index peaked at fresh record of 8353 before settling 0.3% or 28.34 points higher at 8342.01.
AB Inbev beats forecasts despite boycott
Wednesday 8 May 2024 10:04 , Michael Hunter
Brussels-listed brewing behemoth AB Inbev showed thatit was able to shrug off the conservative boycott of its Bud Light in the US, as its overall beer volumes beat forecasts.
That trend held in its main markets in North America.
Nonetheless, volumes fell there overall, albeit not by as much as predicted. They were down by over 9% in the US in the firstquarter.
The year-long boycott followed a social media promotion campaign featuring transgender woman Dylan Mulvaney in a move designed to make the brand more inclusive.
The backlash was supported by prominent far-Right politicians.
Analysts said today the impact of the boycott was easing.
Shares in the world’s biggest beer maker, which also makes Corona and Stella Artois, were up almost 5% in Brussels.
Another biotech firm quit the London Stock Exchange
Wednesday 8 May 2024 09:25 , Simon Hunt
A small Oxford-based biotech company today became the latest firm to quit the London Stock Exchange after complaining that its shares were being undervalued.
Oxford Cannabinoid Technologies, a clinical stage biopharmaceutical company which develops cannabinoid medicines said the decision to delist was taken following a strategic review into how to best promote the growth of the business.
It follows the exit of a number of other British biotechs in recent weeks after Manchester-based C4X left in March and Cheshire-based RedX departed in April.
CEO Clarissa Sowemimo-Coker said: "The UK capital markets are facing particularly challenging times and many biopharma businesses like ours are re-evaluating whether it is the right home for them.
“These market conditions compromise our ability to deliver on our core mission - bringing help to people living with debilitating conditions. We anticipate that as an unlisted company, a far larger pool of capital may be available to us, and therefore it is right for us to make this change."
Oxford Cannabinoid shares fell 63% to 0.13p following the announcement. The stock is down 90% over the past year.
Market snapshot with FTSE at another record
Wednesday 8 May 2024 09:00 , Daniel O'Boyle
Take a look at the latest snapshot as the FTSE rises above the 8350 mark
Direct Line hit by £33 million in weather claims but stands by cost savings target
Wednesday 8 May 2024 08:40 , Michael Hunter
Direct Line revealed that adverse weather led to payouts of £33 million in the first quarter, but said it was “confident” it would reach its £100 million cost savings target.
The plan was put in place as the Bromley-based firm fended off a £3.1 billion bid from Belgium’s Ageas.
The approach followed a turbulent 2023 for Direct Line, which issued a profit warning and axed its dividend in January that year. It led to the sudden departure of its chief executive, Penny James.
Her permanent replacement, Adam Winslow, said today:
“I am confident that with the new leadership team in place, we can deliver run-rate annualised cost savings of at least £100 million by the end of 2025 and a net insurance margin, normalised for weather, of 13% in 2026.”
Gross written premiums were up 15% year-on-year, with what the FTSE 250 company called “strong growth in Motor, Home and Commercial” lines.
Its Motor volumes were lower due to “continued repricing” of its book in that part of the business.
Rising costs of car repairs and delays in supply chains have hit the industry over the last couple of years and contributed to Direct Line’s 2023 turbulence.
Sweden's central bank cut rates
Wednesday 8 May 2024 08:34 , Daniel O'Boyle
Sweden’s Riksbank has become the latest western central bank to cut interest rates, as it reduced its base rate to 3.75%.
It says it expects to cut twice more this year.
Economists believed a cut was more likely than not, but far from certain.
The move follows the Swiss National Bank, which in March became the first to cut after the 2022-23 cycle of tightening. The reductions will boost hopes that the European Central Bank and Bank of England can cut rates soon.
Informa leads way as FTSE 100 sets new record, Centrica upgraded
Wednesday 8 May 2024 08:34 , Graeme Evans
The FTSE 100 index set a fresh record of 8350 in early dealings today, extending the run that’s lifted London’s top flight by about 8% this year.
Top performers in today’s session included the business information group Informa, which rose 3% or 25.6p to 857p after upping its buyback programme alongside improved guidance for annual results.
British Gas firm Centrica also put on 2p to 133.1p after UBS analysts switched to a “Buy” recommendation with 170p target price.
BP shares remain under pressure, slipping another 10.1p to 493.5p after yesterday’s first quarter results and a further drop in oil prices.
Miners Rio Tinto and Glencore also retreated but their performances failed to prevent the FTSE 100 index settling 35.27 points higher at 8348.94.
The FTSE 250 index held firm, up 17.25 points at 20,430.33, amid positive reactions to updates by financial services business OSB Group and the pub chain JD Wetherspoon.
Direct Line Insurance fell 2.8p to 185.9p on the back of its quarterly results.
Pubs boom in post pandemic outbreak of "breakdancing" says Wetherspoon's boss
Wednesday 8 May 2024 07:41 , Simon English
The Great British Pub is back, says no less an authority than the founder and chairman of JD Wetherspoon.
Tim Martin, now Sir Tim, says sales have recovered from the gloomy pandemic days and that profits for the year will be at the top of City expectations.
In a statement to the City today he said: “ Traditional ales, which were very slow in the aftermath of the lockdowns, are increasing momentum, with Abbot Ale, Ruddles Bitter and Doom Bar showing good growth, as indeed are ales from the many small and micro brewers with which we trade. The gods of fashion have smiled upon Guinness, previously consumed by blokes my age, but now widely adopted by younger generations.”
The ebullient Martin added: “Sales of Lavazza coffee are also increasing. Free refills are thought to be responsible for spontaneous exhibitions of breakdancing among retired customers.”
His remarks come days after Heineken said it would spend nearly £40 million on re-opening 62 pubs and sprucing up other “tired” locals. The lager maker owns 2400 pubs through its Star pubs arm.
Boohoo losses grow amid 'difficult macro-economic environment''
Wednesday 8 May 2024 07:31 , Daniel O'Boyle
Losses at fast fashion retailer Boohoo swelled to £160 million in the year to 29 February, but the business says it is making progress in getting back to profitability.
Revenue was down 17% to £1.46 billion, which the business said came "as group performance continued to be impacted by a difficult macro-economic environment".
Boohoo has been making efforts to increase its gross margins, which rose by 1.2 percentage points to 51.8%. However, a number of exceptional items, which Boohoo said were “, reflective of the action taken as part of the group's cost reduction programme”, meant losses increased by almost 70% to £160 million.
Boohoo shares closed at 35.2p yesterday, down 5.8% for the year to date, and down more than 90% from their 2020 peak.
FTSE 100 seen higher as earnings dent Nikkei 225, Brent crude at $82
Wednesday 8 May 2024 07:20 , Graeme Evans
The strong run by the FTSE 100 index is set to continue after London’s top flight jumped 100 points or 1.2% to a record close of 8313.67 last night.
Futures trading is pointing to a rise of about 15 points at today’s opening bell, a performance aided by another robust showing for US markets.
The S&P 500 index improved for a fourth session in a row as the recent fall in oil prices continues to support global hopes that inflation is being tamed.
Brent Crude was this morning trading 1% lower at $82.61 a barrel, down from $92 when Middle East tensions were at their height in mid-April.
Stock markets in Shanghai and Hong Kong were slightly lower this morning, while the Nikkei 225 fell 1.5% amid disappointment at the earnings updates of major companies including Nintendo.
Recap: Yesterday's top stories
Wednesday 8 May 2024 06:40 , Simon Hunt
Good morning from the Standard City desk.
Pressure is mounting on the Bank of England for the first interest rate cut of the post-pandemic era. But City experts are betting that the wait for action in Threadneedle Street will continue this week – at least for now.
Millions of mortgage holders, house hunters, borrowers and savers will be watching closely, on Thursday at noon, when the next interest rate announcement is due.
The BOE’s official base rate has been at a 15-year high of 5.25% since last August, when its Monetary Policy Committee ended a run of 14 consecutive hikes in its fight against runaway inflation.
Now the consumer price index is heading towards the BOE’s 2% target – it fell to 3.2% in March – the days of double-digit rises seen in the aftermath of Vladimir Putin’s invasion of Ukraine are moving further back.
And with economy struggling to grow, calls for a cut have been getting louder. But at the same time, there have been signs of stubbornly sticky aspects to inflation, not least in pay data. That has led the BOE to repeat its signals that its base rate will stay higher for longer.
In turn, City traders have pared back their bets on the timing of the BOE’s first cut. There is some speculation that it could come in June, but consensus forecasts are for September.
It is seen as unlikely that this week will be the turning point, as MPC members, led by BOE Governor Andrew Bailey, seek to avoid revving up inflation again as they loosen monetary policy to kickstart the economy.
But some are urging for an immediate rate cut and have warned of the danger of delay.
Here’s a summary of our top stories from yesterday:
FRC issues £9 million fines to PwC and Ernst & Young over audits of failed investment firm London Capital & Finance which is still being investigated for fraud
Flats back in fashion after four years says Halifax as high mortgage rate force first time buyers to favour smaller properties
BP Q1 profits falls to $2.7 billion after energy prices soften
Struggling Revolution Bars says it is talking to 32 potential suitors in formal sale process
IWG says it continues to mull switching to US accounting standards as it weights a New York listing
