Yahoo Finance FTSE 100 Live 18 March: Alphabet and Nvidia surge in US, London shares flat as BT slides
FTSE 100 closes flat
Monday 18 March 2024 17:11 , Daniel O'Boyle
The FTSE 100 closed at 7,722.55 today, down less than five points from the open.
Market snapshot
Monday 18 March 2024 15:46 , Daniel O'Boyle
Take a look at the latest market snapshot with the FTSE roughly flat
Market snapshot
Monday 18 March 2024 14:55 , Daniel O'Boyle
Take a look at the latest market snapshot with the FTSE roughly flat
Inflation to fall to 3.5% this week but Bank of England won’t cut interest rates, City markets suggest
Monday 18 March 2024 14:41 , Daniel O'Boyle
Official figures this week are set to show inflation in the UK falling again, to 3.5%, but the City still sees almost no chance of the Bank of England cutting interest rates on Thursday.
Inflation figures will be published on Wednesday morning, just one day before the Bank of England makes its latest interest rates decision. The headline measure of prices, the Consumer Price Index, is expected to show a 3.5% inflation rate, down from 4.0% in January. That would mark the first fall in the rate of inflation since November’s figures. Inflation unexpectedly rose in December and was flat in January.
That figure would also be the lowest inflation rate since September of 2021.
Alphabet shares soar on Apple AI deal reports
Monday 18 March 2024 13:42 , Daniel O'Boyle
Shares in Google parent company Alphabet have jumped in the US on reports that Apple is considering use of Google’s Gemini AI for iPhone features.
Alphabet shares are up 6.7% to $151.62, valuing the search giant at a massive $1.9 trillion. That brings the shares within touching distance of an all-time high.
According to Bloomberg, Apple and Alphabet are “in active negotiations to let Applice license Gemini”.
Nvidia has also surged again, up another 5%.
Ronnie Scott's owners pay themselves £3 million dividend
Monday 18 March 2024 13:05 , Daniel O'Boyle
The owners of London’s most iconic jazz club have paid themselves a £3 million dividend, its latest accounts show, after the venue’s largest shareholders tightened their grip over the ownership of the company.
65-year-old Soho-based Ronnie Scott’s, famed for hosting music legends such as Miles Davis, Nina Simone and Jimi Hendrix, showed signs of a strong recovery after the pandemic, with sales of £14 million in the year to March 2023, a jump of around a third compared to the previous year, while pre-tax profits stood at £3.4 million.
Company filings show Monaco-based millionaire property developer Robert Bourne became a major shareholder in November after acquiring a stake from long-serving 83-year-old director Michael Watt via an offshore entity known as “Jazz Box.”
Bytes Technology in governance crisis as probe accuses CEO of unauthorised trading on more than 100 occasions
Monday 18 March 2024 12:03 , Simon Hunt
The governance crisis at computer software company Bytes Technology took another turn today after an investigation accused its long-serving CEO of unauthorised share trading on more than 100 separate occasions.
Neil Murphy, who oversaw the company’s stock market flotation in 2020, abruptly resigned last month after receiving a request for information over his share dealings by the Financial Conduct Authority.
Murphy had told the board he intended to respond to the watchdog’s request before announcing his immediate departure after confessing to 119 unauthorised and undisclosed trades. His lawyers have since identified a further 15 trades conducted by Murphy on behalf of his wife.
Bytes shares fell as much as 14% after markets opened, wiping nearly £200 million from its market cap. They are down about 20% since Muphy’s departure was first announced.
City Comment: Nationwide members must rise up and stop the ill-judged takeover of Virgin Money
Monday 18 March 2024 11:15 , Simon English
Should Nationwide’s 16 million members be given a vote on its wild, wild, £2.9 billion takeover of Virgin Money?
If mutuality means anything at all, the answer is obviously yes.
If Nationwide truly had confidence in the transaction, it should be sure it could persuade those members of the merits of the deal.
Instead, it is hiding behind the notion that Nationwide has always grown by acquisition, noting that it didn’t ask members to approve the takeover of the puny Portman Building Society in 2007, as if that were remotely comparable.
Manufacturers call for long-term strategy to accelerate growth
Monday 18 March 2024 10:43 , Graeme Evans
Make UK today warned the manufacturing sector will remain flat this year and grow by just half the rate of the overall economy in 2025.
Its largest quarterly report, published with BDO, shows that confidence levels among manufacturers remain robust and that investment and recruitment intentions are holding up.
However, the findings reveal underlying sectoral and regional imbalances with the electronics, aerospace and food and drink subsectors powering ahead.
The South East and Wales are also performing significantly better than other UK regions and nations.
Senior economist Fhaheen Khan said: “While there are clearly external factors at play, the UK economy has a fundamental growth problem which a business as usual policy process simply will not address.
“The next Government of whatever colour must address this fundamental problem as a matter of national urgency, beginning with a long-term industrial strategy which will really shift the dial on the UK’s economic performance.”
Pfizer sale hits Haleon shares, Marshalls down 8% in FTSE 250
Monday 18 March 2024 10:28 , Graeme Evans
Shares in Panadol and Sensodyne firm Haleon fell today after Pfizer announced plans to cut its stake in the consumer healthcare business from 32% to 24%.
The £2 billion disposal follows July 2022’s stock market listing by Pfizer and joint venture partner GSK, when Haleon was priced at 330p a share.
Today the shares were trading at 316.7p, having fallen 5.6p as Pfizer’s stake flooded into the market. GSK has already cut from 14% to 4%.
Elsewhere in the sector, shares in Reckitt Benckiser put back 2% or 97p to 4583p after the Nurofen firm’s slide of 15% on Friday.
Other stocks on the risers board included Ocado, which improved 18.5p to 477.5p as the FTSE 100 index put on 12.15 points to 7739.57.
The performance for the wider London market came amid uncertainty in a week featuring interest rate decisions in Japan, the UK and United States.
Policymakers will be concerned at the latest trends in the oil market, with Brent Crude price at its highest level since late October above $86 a barrel.
That put pressure on low-cost airline easyJet, which fell 0.6p to 529p in its first session back in the FTSE 100 after an absence of more than three years.
Among mid-cap stocks, Marshalls shares tumbled 8% or 24.5p to 266.1p as the pavings specialist reported a 41% slide in annual profits and said its recovery is expected to be “slower and more modest than previously assumed”.
The FTSE 250 index improved 17.70 points to 19,530.61.
More tough times ahead, warns Nightcap
Monday 18 March 2024 10:21 , Simon Hunt
The boss of bar chain Nightcap today said she was braced for more “uncertain and challenging” months ahead as the hospitality sector continues to struggle under depressed consumer demand.
Losses at the Dirty Martini and Cocktail Club operator doubled to £1.8 million, but revenues jumped more than 40% to £33 million after a string of acquisitions.
CEO Sarah Willingham said: “We set out to build a great business at the back end of COVID and the economy has moved through several additional challenges from the energy crisis and rail strikes to interest rates, inflation and cost of living crisis - throwing just about everything at us.
"We expect the second half [of the year] to continue to be uncertain and challenging, but I believe hospitality has gone through the worst of this downturn.”
Shares fell 1.2% to 4.2p.
Reckitt Benckiser among FTSE 100 risers, Aston Martin leads FTSE 250
Monday 18 March 2024 08:44 , Graeme Evans
Reckitt Benckiser shares today showed signs of recovery after sliding 15% on Friday due to a $60 million damages ruling in a US court.
The stock put back 5% or 217p to 4703p, placing the Nurofen and Strepsils firm ahead of Ocado and Rentokil Initial on the FTSE 100 risers board.
One of the biggest declines was by fellow consumer healthcare firm Haleon after Pfizer cut its stake from 32% to 24%.
The FTSE 100 index rose 7.92 points to 7735.34 but the UK-focused FTSE 250 index retreated 33.07 points to 19,479.84.
Currys shares lifted 3% or 1.7p to 58.3p after it upgraded full-year guidance, while Aston Martin Lagonda surged 12.5p to 172p as Jefferies analysts reiterated their Buy recommendation with a 275p target price.
Newly marketed house prices jump by more than £5,000 on average in March
Monday 18 March 2024 08:35 , Daniel O'Boyle
The average price of a newly marketed home jumped by more than £5,000 month-on-month in March, in signs that “we now seem to be past the bottom of the market,” according to a property website.
Across Britain, the typical price tag on a home increased by 1.5% or £5,279, Rightmove said.
The increase pushed the average asking price to £368,118.
Bytes shares tank as investigation reveals unauthorised trading by CEO
Monday 18 March 2024 08:24 , Simon Hunt
Shares in Bytes Technology fell as much as 9% this morning after an investigation accused its long-serving former CEO of unauthorised trading on 119 separate incidents.
In a statement the company said: “The Board of Directors is saddened as well as shocked by Mr Murphy's actions, which it finds hard to comprehend. His actions were entirely at odds with the values of openness, honesty, and transparency.”
It’s the second time a board member has been accused of unauthorised share dealings in the past year following a probe in 2023 over share trades by a non-exec director.
“This revelation came as a shock to the other board members, especially considering the Company's previous investigation during 2023 into an unrelated share dealing disclosure matter which had clearly highlighted to all Board members the importance of absolute accuracy and transparency in all matters related to share dealings by directors.”
Hipgnosis says portfolio value overstated due to 'double counting''
Monday 18 March 2024 08:16 , Daniel O'Boyle
The Hipgnosis music rights fund says the value of its portfolio of hits by artists including Blondie and Shakira is overstated by about 7.6% due to “double counting”.
The fund puts the blame at the feet of Hipgnosis Songs Management (HSM), which manages the portfolio and is led by the fund’s founder Merck Mercuriadis. However, HSM says the fund came up with the measure and HSM was only applying a calculation initially provided by the fund.
HSM said: “It is understandable that the Company’s board wish to improve its reporting and APMs and HSM is fully supportive of this. However, it is disappointing that the Board has sought to incorrectly place blame in the process. We continue to believe that it is in the interest of the Company’s shareholders for the Company and the Investment Adviser to work constructively together.”
Shares in the fund are down 5.5% today to 58.8p.
Currys upbeat on trading as takeover interest ends
Monday 18 March 2024 08:13 , Graeme Evans
Electricals chain Currys today upgraded profits guidance as it sounded an optimistic note on its future as a standalone London-listed firm.
The FTSE 250-listed company which is no longer in an offer period after Elliott Advisors and JD.com ended their bid interest, now expects a surplus for the year to the end of April of at least £115 million.
That compares with previous expectations of between £105 million and £115 million, having enjoyed a trading boost over the peak trading season.
Chief executive Alex Baldock said encouraging momentum in the UK and Ireland had been accompanied by progress in turning around the performance of its operation in the Nordics.
He said: “Both are progressing well, despite still-challenging markets, and we now feel confident to raise this year's profit expectations to at least the top of our previous guidance.
“Stronger trading, selling more of the solutions and services that boost margins and build customers for life, and strong cost discipline have all been important.”
British Land and Royal London in £385m deal to turn Meta office into life science hub
Monday 18 March 2024 07:32 , Daniel O'Boyle
British Land and Royal London have launched a joint venture to turn Meta’s office at Triton Square into "a best in class science and innovation building".
The agreement values the building at £385m.
Meta last year paid £149 million to end its lease early.
The building will include “lab-enabled space as well as the potential to incorporate serviced offices”.
Mark Evans, head of property and commercial development at Royal London Asset Management Property, said: "We are thrilled to join forces with British Land to reposition 1 Triton Square for the science and innovation market. The partnership opportunity aligns with our wider strategy to leverage our platforms in new markets and continue to deliver on our commitment to purposeful investment.
FTSE 100 seen higher as rate decisions loom, Brent Crude above $85
Monday 18 March 2024 07:15 , Graeme Evans
A week featuring interest rate decisions in Japan, the UK and the United States has begun with stock markets trading in positive territory.
The FTSE 100 index is seen 11 points higher at 7742 after Tokyo’s Nikkei 225 surged 2.7% and the Shanghai Composite and Hang Seng index improved.
Japan’s central bank is tomorrow expected to end eight years of negative interest rates before attention switches to the Federal Reserve and guidance on whether traders are right to expect a first cut in borrowing costs in June.
The Bank of England’s latest no-change decision is set to follow on Thursday, the day after the publication of monthly inflation figures.
Policymakers will be concerned at trends in the oil market, with Brent Crude today at its highest level since late October above $85 a barrel.
Recap: Friday's top stories
Monday 18 March 2024 06:38 , Simon Hunt
Good morning from the Standard City desk.
The Competition and Markets Authority (CMA)'s had a busy few weeks. Fresh from looking at vets, the watchdog’s now probing the £2.5 billion tie-up between housebuilders Barratt and Redrow to make a firm which would build about 23,000 houses a year.
And of course it’s been only three weeks since that same regulator published its big report into housebuilding as a whole.
The CMA found evidence of sharing confidential information, but it said the real blame for our housing supply crisis lay at the feet of the planning system.
What was the remedy? Well, the regulator says that “Given the wider policy trade-offs and complexities that are inherent in the design and operation of the planning system, the CMA does not consider it appropriate to make specific recommendations to governments”.
Maybe the watchdog's right that the specifics get too political for a regulator to wade into, but it doesn’t even have to. Just tell local authorities: "You're harming competition, we don’t care how you solve it, just do something.” Then set a deadline, and if there’s not reasonable progress, it can use its statutory powers to take action.
Last year, when the CMA faced criticism from Microsoft, we saw arguments about whether we want a watchdog with teeth to protect consumers or a muzzled one to encourage growth. But what if it could be strong and pro-growth?
Let's set it loose on the planning system.
Here’s a summary of our other top headlines from Friday:
Money flowing out of London stock market at a record pace, new figures show
'Excessive fragmentation': Vodafone in €8bn Italy exit as CEO searches for profits
Controversial Everton bidder 777 Partners sees owning football club as way to snap up sportstech bargains
...And in City Spy:
Who will be the new Entain CEO? Here are the latest odds
