|Day's range||7,211.33 - 7,334.19|
|52-week range||6,536.50 - 7,803.50|
FT subscribers can click here to receive Market Forces every day by email. Trade-sensitive sectors, or those with complex global supply chains, are feeling the heat as the sun shines brightly in London today.
Marks and Spencer has suffered a heavy blow to profits from the costs of its restructuring programme, just as it hits shareholders with a steeply discounted rights issue to fund half of Ocado’s food retail business. The high-street stalwart took a £439m hit from exceptional costs in the year to March 31, mainly from store closures, more of which are planned this year.
U.S. equities sank Monday as the fallout from the White House’s moves against Chinese telecom giant Huawei battered technology shares and stoked trade jitters. The S&P 500 Index dropped for the second straight session, with semiconductor stocks among the biggest laggards, and the tech-heavy Nasdaq 100 Index saw its biggest decline in a week. Ten-year Treasury yields rose before a slew of U.S. data this week as well as Federal Reserve policy-meeting minutes on Wednesday.
FTSE 100 chief executives received pension contributions of 25 per cent of pay last year, compared with an average of about 6 per cent for employees, according to a report published on Tuesday by actuarial consultants Lane Clark & Peacock. Nine of the companies were contributing more than 35 per cent of pay to CEO pensions, including Tui, Standard Chartered and Ashtead.
When Vodafone cut its dividend by 40 per cent last week, it joined a growing number of FTSE 100 groups that have inflicted pain on shareholders. In February, Marks and Spencer, another stock popular with retail investors, said it would drop its payout by the same amount. In both cases the cuts marked a stark shift in policy: M&S had not cut its payout in a decade, while Vodafone had held off for almost 20 years.
Australian Federal Elections go the way of the Aussie Dollar, with Brexit, EU elections, stats, and trade war chatter in focus in the week ahead.
The U.S – China trade war continued to grip the markets and, while the China economy showed cracks, U.S stats impressed.
Targeted capital allocation has enabled On The Beach to expand its market share, despite the general cooling, writes Tom Dines. Adjusted pre-tax profits were up 14 per cent in the six months to March, on revenue growth of 41 per cent, but management warned that the “ongoing uncertainty” arising from Brexit meant trading in the background market was 10 per cent weaker in 2019. It also launched Classic Package Holidays, an online booking portal for travel agents to complement its growing business-to-business offering, which kicked off with the acquisition of Classic Collection Holidays last August.
Britain’s National Grid has warned there would be “significant” legal challenges if a future Labour government were to renationalise UK electricity and gas networks at below market value. John Pettigrew, ...
Tui, the Anglo-German tour operator, has reported widening losses for the first half of its financial year as it struggles to keep up with shifts in consumer booking trends and the effect of the Boeing 737 Max groundings. The losses come at a time when travel companies are fighting for customers in an increasingly tight market. Tui has twice this year warned on profits, but on Wednesday maintained its current full-year guidance.
Colm Lauder, analyst at Goodbody, said a 6.4 per cent decline in net asset value per share was the largest since 2009 in the depths of the financial crisis. “While British Land is posting declines at a rate not experienced since the bottom of the last market cycle, the balance sheet remains in a robust and flexible position,” he added. The drop echoes that posted on Tuesday by the company’s larger rival Land Securities.
Equity markets rebounded in Tuesday trading but trade concerns are still present and dragging on sentiment.
U.S. and Chinese trade negotiators will spin their wheels on more “constructive” talks and further scheduled meetings, accomplishing little until markets “motivate” them to reach a deal. Think of what happened in the fourth quarter when the financial markets used their “veto” over monetary policy. As Federal Reserve officials talked more and more about raising interest rates and reducing central bank’s balance sheet assets, markets grew more and more uncomfortable.
Shareholders at Standard Life Aberdeen, the £569bn UK asset manager, have protested against the pay of a senior executive in one of the biggest revolts at a FTSE 100 company this year. Prior to the meeting, influential proxy advisers Glass Lewis and Institutional Shareholder Services had voiced disapproval of the pay increase and one-off recruitment award, saying they should reflect performance and take the form of phased increases.