Yahoo Finance FTSE 100 live: Thames Water responds to administration reports; shares climb higher
Blue-chip shares are trading higher today as London sentiment benefits from a strong Wall Street handover.
Today’s session includes small-cap updates from accessories brand Mulberry and Coppa Club owner Various Eateries.
The focus on short-to-medium dated gilts and mortgage prices also continues after yields surged even further yesterday afternoon.
FTSE 100 Live Wednesday
Thames Water in administration threat - reports
Mulberry warns of tourist tax hit to UK
Revolution Beauty shares rise amid Boohoo row
End-of-day snapshot
Wednesday 28 June 2023 16:52 , Daniel O'Boyle
Take a look at all the key market data as trading closes in London.
FTSE closes at 7,500.49
Wednesday 28 June 2023 16:37 , Daniel O'Boyle
The FTSE 100 closed at 7,500.49 today, up 0.5%.
Sage was the biggest riser, with Sainsbury’s and CRH also near the top.
On the other hand, Ocado was the biggest faller as Amazon dismissed takeover rumours. the delivery company’s shares are still significantly up from before a potential takeover was first reported, though.
Short-dated gilt yields, meanwhile, eased significantly, after two-year yields hit 5.3% in the morning.
Bank needed to make ‘strong move’ after inflation report, says governor
Wednesday 28 June 2023 16:11 , Daniel O'Boyle
Decision makers had to make a “strong move” as they sat down and studied a surprisingly bad inflation report last week, the governor of the Bank of England has said.
Andrew Bailey said he thought it was better to increase interest rates from 4.5% to 5% in one go, a so-called 50 basis point (bps) increase, rather than to hike it in two steps.
The Bank hiked rates last Thursday, a day after the Office for National Statistics revealed that Consumer Prices Index inflation had only fallen to 8.7% in May, compared to the 8.4% that had been expected.
Halifax, Nationwide, HSBC and TSB all raise mortgage prices yet again
Wednesday 28 June 2023 16:09 , Daniel O'Boyle
Four of the UK’s biggest mortgage lenders upped their residential prices yet again today, in the latest sign of mortgage mayhem.
Halifax, HSBC and TSB have all upped their rates with effect from today, while Nationwide will bring in higher rates from tomorrow, as lenders adjust to the Bank of England’s latest 50-basis-point rate hike and the further interest rate increases that appear certain to come.
Halifax, the UK’s biggest mortgage lender, upped its fixed rates for both direct and broker deals by 0.3 percentage points. That brings its rate for a five-year fixed-rate mortgage at 75% loan-to-value to 5.39%.
Brexit is putting London’s ‘global tech hub’ status at risk, $1bn venture capital fund partner warns
Wednesday 28 June 2023 15:18 , Daniel O'Boyle
A partner in a brand new $1bn venture capital fund has warned that London risks losing its status as a global tech hub as Brexit has made attracting talent “substantially more difficult”.
Gareth Jefferies, partner at RTP Global, announced a new fund today that will offer $1 billion to tech startups, with a particular focus on AI, enterprise software, fintech, e-commerce and edtech.
The fund will invest $660 million in early-stage firms, plus $340 million in “breakout” companies within RTP’s portfolio. Previous investments include cybersecurity firm DataDog, delivery business DeliveryHero and payments app Cred.
Shareholder group calls for removal of Nanotech firm Nanoco’s entire board
Wednesday 28 June 2023 14:31 , Daniel O'Boyle
A group of investors in nanotechnology firm Nanoco has called for a shareholders’ meeting to remove the firm’s entire board, after what they described as “serious corporate governance issues”.
The group, led by Tariq Hamoodi, owns around 5% of the business and aims to remove chief executive Brian Tenner, finance boss Liam Gray and chairman Christopher Richards, as well as three other board members.
They claim the board of Nanoco - which makes 10-atom-thick lights used for screens - is acting in the interest of the firm’s top shareholder, Swiss bank Lombard Odier, and former major investor Richard Griffiths, rather than shareholders as a whole. Griffiths is a City veteran, having founded stockbroker Evolution Group.
City comment: The energy crisis is easing. But Britain’s water crisis is just beginning
Wednesday 28 June 2023 13:33 , Jonathan Prynn
The events at Thames Water are nothing short of jaw-dropping.
There is no public service more fundamental to daily life than the supply of water, but today a Cabinet minister was forced to reassure Londoners that their taps will not run dry.
Yet on a regular basis that is exactly what does happen when another catastrophic leak restricts or halts the supply of water to households.
Thames Water says it ‘continues to maintain strong liquidity position'
Wednesday 28 June 2023 12:58 , Daniel O'Boyle
Thames Water has responded to the morning’s reports, noting it is in a good liquidity position and that it is still working with shareholders on funding.
It said: “As envisaged in June 2022, Thames Water received the expected £500 million of new funding from its shareholders in March 2023 and is continuing to work constructively with its shareholders in relation to the further equity funding expected to be required to support Thames Water’s turnaround and investment plans.
“Ofwat is being kept fully informed on progress of the company’s turnaround and engagement with shareholders.
“Thames Water remains focused on delivering for its customers, the environment and stakeholders.
“Thames Water continues to maintain a strong liquidity position, including £4.4 billion of cash and committed funding, as at 31 March 2023.”
Gilt yields ease
Wednesday 28 June 2023 12:50 , Daniel O'Boyle
Gilt yields eased today after early rises, with the two-year gilt now yielding 5.13%, now almost 15 basis points from the early afternoon.
Gilt yields surged yesterday and reached even higher today, creating even more mortgage fears. But investors bought bonds again, bringing yields back to last week’s levels.
Take a look at all the key market data.
Thames Water crisis puts privatised industry’s future in doubt
Wednesday 28 June 2023 12:17 , Daniel O'Boyle
The strained finances of the entire privatised water industry were under scrutiny today after it emerged that ministers are drawing up emergency plans for a temporary renationalisation of Thames Water if it can no longer afford to meet its debt repayments.
The company, which supplies water to a quarter of the British population including almost all of London, is the most heavily indebted in the UK with gearing of about 80%.
It is also under political and public pressure to step up its investment in infrastructure to reduce leaks and pollution of rivers.
Banks have ‘questions to answer over interest rate rises for savers’
Wednesday 28 June 2023 11:44 , Daniel O'Boyle
Banks have questions to answer about how quickly interest rate rises are being passed to savers, a Cabinet minister has said.
Work and Pensions Secretary Mel Stride acknowledged there are “questions to be asked” after months of the Bank of England steadily increasing interest rates in a bid to tackle inflation.
The Bank last week raised interest rates from 4.5% to 5%, triggering fresh misery for struggling mortgage holders.
Manolo Blahnik Group to step into Mayfair HQ
Wednesday 28 June 2023 10:45 , Joanna Bourke
Manolo Blahnik Group, the luxury shoemaker, has revealed it will have a new London HQ after buying a Mayfair property.
Kristina Blahnik, chief executive of the firmsaid: “The unique opportunity to make this investment marks an important milestone for our company as we set to move our headquarters to an iconic Georgian building in Mayfair.”
Read more HERE
Sage jumps 4% after upgrade, Admiral shares in reverse
Wednesday 28 June 2023 10:25 , Graeme Evans
Sage shares tdoay jumped or 4% or 36p to their highest level in over two decades at 909.4p, fuelled by JP Morgan analysts backing the business software firm to reach 1100p.
The FTSE 100 company, which started from a Newcastle pub four decades ago, is now worth more than £9 billion compared with £20 million when it listed in 1989.
Today’s City upgrade came after an update in May revealed further strong progress as Sage rolls out cloud-based accounting services to more SME business customers.
The 20%-plus surge in Sage’s valuation during 2023 mirrors the recent outperformance of technology and growth stocks in the US, where the likes of Meta Platforms and semiconductor firm Nvidia added another 3% on Tuesday night.
Some of this momentum was lost after the closing bell, however, amid reports that the Biden administration is planning to further tighten exports of AI chips to China.
The strong performance of Sage today contributed to the FTSE 100 lifting 28.81 points to 7490.27, with Vodafone also 1.3p higher at 74p.
Elsewhere. car insurer Admiral dropped 4% or 78p to 2060p after JP Morgan placed it on “negative catalyst watch”. And housebuilder Persimmon weakened half a penny to 1044.5p as Deutsche Bank downgraded its price estimate to 1000p.
The revision from 1212p reflects worries that Persimmon's exposure to first time buyers means it will be at the sharp end of the current mortgage squeeze. The builder’s valuation is now its lowest in a decade, having fallen 40% since last summer.
The FTSE 250 index rose 127.56 points to 18,182.40, with shares in cruise ship operator Carnival up another 30p to where they were before Monday’s sell-off at 1136p. Wizz Air also rose 77p to 2872p after RBC revealed a 3900p target.
ProCook goes off the boil as shoppers cut back on kitchenware
Wednesday 28 June 2023 09:47 , Michael Hunter
Hard-pressed consumers are cutting back on spending on kitchenware, according to an update out today from saucepans to mixing bowls retailer ProCook.
Founder and CEO, Daniel O’Neill, called the economic backdrop “one of the toughest I have experienced in my career”, adding: “Customers and colleagues have felt the squeeze on disposable incomes.”
Annual revenue fell almost 10% and it lost £0.2 million, turning round from a profit of almost £10million a year ago.
The sign that kitchen spending is cooling follows hotter numbers from Boots and Primark this week.
The Bank of England has increased rates 13 times in a row to fight inflation.
Revolution shares jump in re-listing
Wednesday 28 June 2023 09:09 , Simon English
Revolution Beauty shares soared this morning as the stock resumed trading in the midst of a bruising row with leading shareholder Boohoo.
The retailers have been in fierce dispute for weeks, with Boohoo claiming Revolution’s board is not fit for purpose.
Today Boohoo, which owns a near 27% stake, said it has “serious concerns” about the board’s conduct at an AGM yesterday.
Nearly three quarters of investors including Boohoo voted to oust the cosmetic firm’s three most senior directors. They were immediately reinstalled by the remaining director Jeremy Schwartz, in a move that seemed designed to antagonise Boohoo.
As of today, the CEO remains Bob Holt, the chairman is Derek Zissman and the finance chief is Elizabeth Lake.
Earlier Revolution had to delay its full-year results. When they finally emerged, they detailed the award of share options to the directors.
The shares jumped 34% to 27p today. Which leaves Boohoo’s stake worth about £25 million, nicely up on the £15 million they first cost.
The shares were suspended in September in the midst of an accounting probe.
Revolution Beauty said Boohoo’s stance is “nothing short of value-destructive, opportunistic and self-serving”.
One City observer said: “If this was happening at a large company rather than an AIM-listed minnow it would be front page news.”
Boohoo said it can’t see “how such a board can claim to be acting in the best interests of shareholders, and is instead self-serving”.
Boohoo wants Alistair McGeorge and Neil Catto to be appointed as new directors.
Another shareholder meeting will be held later in the summer.
Sage leads FTSE 100 recovery, Carnival shares up 3%
Wednesday 28 June 2023 08:34 , Graeme Evans
A strong handover from Wall Street ensured the FTSE 100 index opened higher today, with London’s top flight up 27.27 points at 7488.73.
Sage set the pace with a rise of 3% or 30.4p to 903.8p, leaving the accountancy software firm trading at a fresh multi-year high. Other risers included JD Sports Fashion and Vodafone following share price gains of just under 2%.
The fallers board was topped by car insurer Admiral with a drop of 31p to 2107p, while consumer healthcare firms Haleon and Reckitt Benckiser were priced 1% lower.
The FTSE 250 index rallied 97.64 points to 18,152.48, led by cruise ship operator Carnival following a rise of 3% or 35p to 1115.5p.
Today’s snapshot as shares open higher
Wednesday 28 June 2023 08:32 , Daniel O'Boyle
Take a look at all the key market data as the FTSE 100 rose upon opening today.
Two-year gilt yields also rose further, now up half a percentage point from the levels reached in the immediate aftermath of last year’s mini-Budget.
Mulberry bags group sales growth but warns of tourist tax hit to UK
Wednesday 28 June 2023 08:06 , Joanna Bourke
Mulberry chief executive Thierry Andretta has said there is “no doubt” the loss of VAT-free shopping is weighing on the handbag maker’s UK performance, as the company posted annual results.
The accessories brand recorded revenue growth of 4% to £159.1 million in the year to April 1, but sales here slipped to £87.7 million from £88.5 million.
In contrast its Asia Pacific arm saw sales improve 3% and the wider international sales rose 12%.
Read more HERE.
Coppa Club owner warns on profits
Wednesday 28 June 2023 07:23 , Daniel O'Boyle
Coppa Club and Nocio owner Various Eateries warns its profits will be lower than expected as food, energy and labour costs, plus strikes, have a bigger impact than anticipated.
It said that sales will still be in line with expectations, but that it anticipates a hit of between one and three percentage points on its profit margins.
It said: “The board is continuously reviewing costs and implementing measures to mitigate this shortfall.”
Chair Andy Bassadone said: "A squeeze on margins of this scale is unprecedented in my thirty-five years’ experience in the hospitality industry.
“Even though we were anticipating a significant downturn, the actual rise in input costs has been much higher and far more sustained than the industry anticipated.
“In addition to the discipline we are exercising in relation to new openings referred to above, we continue to focus rigorously on the cost structure and operational efficiency and will adapt the way we operate in this environment.”
FTSE 100 seen higher after strong Wall Street session
Wednesday 28 June 2023 07:23 , Graeme Evans
Shares in Meta Platforms and Tesla rose more than 3% yesterday as the growth and technology sector led a strong session for Wall Street.
The tech-focused Nasdaq Composite finished 1.65% higher, ahead of a 1.1% rise for the S&P 500 index and 0.6% for the Dow Jones Industrial Average as investors welcomed encouraging figures on new home sales and durable goods orders.
Some of the momentum was lost after the closing bell, however, as the Wall Street Journal reported that the Biden administration is considering further tightening the exports of artificial intelligence chips to China.
Semiconductor firm Nvidia fell back 3% in after-hours dealings, wiping out the gains seen in regular trading.
This afternoon’s focus will be on the European Central Bank’s Sintra conference and any guidance on the interest rate outlook by the heads of the Federal Reserve. ECB, Bank of Japan and Bank of England.
Asian equity markets are mixed this morning, with CMC Markets expecting the FTSE 100 index to follow yesterday’s 0.1% rise by adding 19 points to 7480 at the opening bell.
Government plans for Thames Water administration: reports
Wednesday 28 June 2023 06:58 , Daniel O'Boyle
The Government is considering plans to put Thames Water into administration, according to reports.
Sky News said ministers are concerned about the water supplier’s £14 billion worth of debt. As a result, they are considering a “special administration regime”, to temporarily nationalise the company, which has 15 million customers in and around London.
The report emphasised that the talks are at a “preliminary stage”, and said they involve Department for Environment, Food and Rural Affairs (DEFRA), Ofwat and the Treasury.
Thames Water CEO Sarah Bailey quit with immediate effect on Tuesday afternoon, just hours before the reports emerged.
Atr the time, she said: “It has been an honour to take on such a significant challenge, and a privilege to serve Thames Water’s dedicated and inspirational colleagues.”
UBS’s Credit Suisse job cuts could begin in coming weeks
Wednesday 28 June 2023 06:43 , Daniel O'Boyle
UBS is making preparations to lay off more than half of Credit Suisse’s workforce, according to reports, following the shotgun marriage of the two Swiss banking giants agreed in March.
UBS agreed to aquire Credit Suisse, which was on the edge of collapse, three months ago and the deal closed earlier this month. From the moment it was announced, job cuts were expected, with thousands of London jobs seen as “at-risk”.
A report in Bloomberg claims that these cuts are now set to happen in three rounds, starting next month, and more than half of Credit Suisse’s 45,000 employees could go.
Yesterday’s top stories
Wednesday 28 June 2023 06:39 , Daniel O'Boyle
Good mroning, here is a selection of yesterday’s top stories:
Odey Asset management has suspended its flagship fund, Odey European, after a number of investors attempted to cah out in the wake of sexual assault allegations against its founder Crispin Odey
Boots is the latest retailer to report strong sales in recent weeks, joining Next, Primark and JD Sports, in a boost for the high street but a potentially concerning sign on inflation
The boss of Dexter’s, one of London’s top estate agents, says the firm “continues to be confident” in the property market in London, despite the ongoing mortgage chaos
