Yahoo Finance FTSE 100 Live 6 February: Index closes up 0.9% with BP topping risers
BP’s new boss Murray Auchincloss unveiled more share buybacks today, despite the oil giant's lower profits of $3 billion (£2.4 billion) for the final quarter of the year.
In today’s other corporate developments, UBS fell to a quarterly loss of $279 million (£222 million) amid the "first phase" of its integration of Credit Suisse.
Measures to support stability meant the Hang Seng index jumped 4.1% today but the prospect of a longer wait for interest rate cuts has dampened risk appetite elsewhere.
FTSE 100 Live Tuesday
BP results and buybacks boost shares
UBS posts loss and steps up cost cuts
China stock markets stage big rally
FTSE 100 closes up 0.9%
Tuesday 6 February 2024 16:38 , Daniel O'Boyle
London's top flight closed up 0.9% at 7,681.01 today, in one of its strongest days of 2024.
The index was boosted by hopes of stimulus in China, as well as strong results from BP. The oil supermajor was the top riser, with China-exposed stocks like the Prudential and Antofagasta also near the top.
Pearson, BT and Entain were the biggest fallers.
What is the CBI? Police 'not able to progress' with nearly all misconduct claims
Tuesday 6 February 2024 16:08 , Daniel O'Boyle
Police say they are "not able to progress further criminally" with 11 claims of serious misconduct at the Confederation of British Industry (CBI).
City of London Police were looking into allegations including sexual assault, but reportedly said they were now examining only one.
Sky News reported that the CBI understood that this did not relate to a current member of staff or the organisation itself.
New home registrations fell by 44% in 2023, industry figures show
Tuesday 6 February 2024 15:33 , Daniel O'Boyle
The number of new home registrations plunged by 44% last year compared with 2022, according to figures from an industry body.
Across the UK, the National House Building Council (NHBC) recorded 105,449 registrations, down from 189,009 in 2022.
Private sector registrations were hardest hit, falling by 53% compared with the year.
The rental and affordable sector saw a shallower decline, with registrations down by 22% on the previous year.
BP boss disagrees with calls to drop climate plan and pledges cash for investors
Tuesday 6 February 2024 14:50 , Daniel O'Boyle
The new boss of BP has said he disagrees with those calling for the company to ditch plans to cut oil and gas production as he promised big new shareholder handouts on the back of a surprisingly high profit.
In his first full outing in the job Murray Auchincloss appeared to back the legacy of his predecessor Bernard Looney, who promised to make the oil major a greener company.
Mr Looney’s plan had sparked criticism from some investors, worried that it might reduce the amount of money the firm can make for them.
'Ask Jez is the order of the day' on NatWest retail sale
Tuesday 6 February 2024 14:36 , Daniel O'Boyle
Susannah Streeter, head of money and markets, Hargreaves Lansdown, says there are still many unanswered questions on the upcoming NatWest retail share sale.
She says: ‘’The government is gearing up to launch the highest-profile public share offer since the Royal Mail IPO more than a decade ago. With confirmation from UK Government Investments (UKGI) that the sale of NatWest shares could happen as early as June, it’s clear it’s all systems go to get the process off the ground.
"The hope is that retail investors will be enthused about the opportunity to own shares in the bank, which was taken over by the government at the height of the financial crisis, and has been sold back to institutional investors, bit by bit.
"Exactly how the share scheme would be run is still a source of speculation. It’s likely there will be more details laid out by Jeremy Hunt, the Chancellor in the Budget on 6 March. There are some clues from the shelved Lloyds plan. Speculation at the time was that people would have had the option to apply for between £250 and £10,000 worth of shares, and a discount of around 5% would then have been applied. It’s also still unclear what the share sale will mean for existing investors, and whether there may be another form of rights issue run alongside with a discount to reward holders.
"Galvanizing interest among ordinary investors in owning slices of company is hugely welcome, given that retail investors are often left out of high-profile IPOs. The government clearly wants to reignite the interest the ‘Ask Sid’ British Gas campaign of the 1980s appear to spark. Boosting understanding of how investment can drive long term returns for investors, and also highlighting the opportunities on the London markets. But with so many unanswered questions surrounding the sale, Ask Jez is more the order of the day."
US stocks to edge up
Tuesday 6 February 2024 14:23 , Daniel O'Boyle
US stocks are set for some slight gains when trading opens on Wall Street, according to futures markets.
Dow Jones futures are up less than 0.1% to 38,487.00, while S&P 500 futures are up 0.2% to 4,969.50. Nasdaq futures are also up 0.2%, to 17,743.00.
Big data giant Palantir is set to be among the top risers, with shares in Peter Thiel’s firm set to jump by more than 20% after it announced its results this morning.
Last two dedicated 'Veggie Pret' sites in London to convert back to standard stores
Tuesday 6 February 2024 14:00 , Daniel O'Boyle
The last two dedicated vegetarian branches of Pret a Manger in London are to revert to regular branches of the sandwich chain eight years after the concept was launched.
The Veggie Pret outlets on Broadwick Street in Soho, the site of the original pop-up, and Great Eastern Street in the City will convert on 19 February. A third branch in Manchester will follow suit on 26 February.
The move marks the end of what started as an experiment in summer 2016 and grew to a peak of 10 sites with their distinctive green facias, almost all in London.
Aston Martin Lagonda looking for new boss: report
Tuesday 6 February 2024 13:14 , Daniel O'Boyle
Aston Martin Lagonda is looking for its fourth boss in as many years, according to a report.
Chair Lawrence Stroll has contacted other high-end automotive bosses to replace 77-year-old Amedeo Felisa, the report from Bloomberg claims.
Felisa oversaw a surge in the James Bond carmaker’s share price that allowed the firm to return to the FTSE 100.
Today, the shares are down 6.2p to 177.5p.
Advertising watchdog calls out former Love Islander over social media posts
Tuesday 6 February 2024 13:09 , Daniel O'Boyle
Former Love Islander Tasha Ghouri has been called out by the advertising watchdog for failing to properly label her ads on social media.
The Advertising Standards Authority (ASA) said it had added Ghouri to its non-compliance webpage after finding that she had been routinely posting ads and not correctly labelling them.
The ASA launched the webpage in 2021 to specifically name influencers who were breaking the rules around disclosing any posts that were ads, and had either failed to provide assurances that they would do so in future or subsequently reneged on an assurance.
NatWest share sale could be in June at the ‘very earliest’
Tuesday 6 February 2024 12:47 , Daniel O'Boyle
The sale of shares in NatWest to everyday investors could happen as soon as June, a Government-owned company has said.
The retail offer was first announced by Chancellor Jeremy Hunt during his autumn statement last year, as the Government leaps forward in its efforts to fully offload its stake in the bank.
UK Government Investments (UKGI), which is owned by the Treasury, said it is currently in the process of working with advisers to carve up a plan for the share sale.
Energy firms must pay customers £30 if five-day switch deadline missed
Tuesday 6 February 2024 12:29 , Daniel O'Boyle
Energy suppliers will soon have to pay customers £30 if they fail to complete their switch to another firm within five days.
Ofgem said switching rates continued to increase each month, and it wanted to “empower” customers to take control of their energy bills.
As part of an energy supplier’s licence, a firm has to switch a customer’s electricity or gas supply within five working days from the date of the request.
City job cuts are here, but the Square Mile will evolve once again
Tuesday 6 February 2024 11:37 , Jonathan Prynn
It seems fairly certain that we are in the early stages of what will be a significant jobs shake-out in the City. It has been coming.
There is only so long that employers can justify holding on to six — or seven — figure-earning bankers when business stops coming through the door. The offices and trading floors of many City firms must have been miserable places last year as the IPO and M&A droughts stretched on for long months and the stock market did little better than tread water.
Now they will be quieter ones too.
Alumasc revenue and profits rise despite wider construction headwinds
Tuesday 6 February 2024 10:56 , Daniel O'Boyle
Sustainable building products firm Alumasc saw profits tick up despite a wider slowdown in the construction sector in the six months to 31 December.
Profits rose to £5.6 million, as revenue increased by 6.4% to £47.8 million. That came despite the fact that the construction sector as a whole declined at about the same rate as Alumasc’s revenue growth as higher interest rates hit builders.
Boss Paul Hooper told the Standard: “It’s been an encouraging half year where we’ve outperformed the underlying construction market.”
He sees headwinds continuing for the sector in 2024, but a recovery in 2025.
Renishaw shares up 14% as market conditions improve, FTSE 250 higher
Tuesday 6 February 2024 10:28 , Graeme Evans
The standout performance in the FTSE 250 came from high-precision metrology and healthcare technology group Renishaw after its shares jumped 14% or 474p to 3910p following half-year results.
The Gloucestershire-based firm reported a 23% fall in adjusted profits to £56.5 million but improved market conditions left full-year guidance 3% higher than City forecasts in the range of £122 million to £147 million.
The FTSE 250 rose 27.91 points to 7640.77, with Fidelity China Special Situations and Asia Dragon Trust both 3% higher.
Electronics manufacturing business discoverIE led the fallers board, down 4% or 28p to 738p after it reported a 4% decline in sales against tough comparatives in the four months to 31 January.
Asia stocks boosted in stronger FTSE 100, Rolls-Royce picks up pace
Tuesday 6 February 2024 10:27 , Graeme Evans
China’s efforts to shore up stock market confidence today boosted London’s FTSE 100 index amid strong trading by several Asia-focused shares.
The buying of blue-chips including Prudential, HSBC and Rio Tinto followed a rebound of 3% for the Shanghai Composite and 4% for Hong Kong’s Hang Seng index.
The latest interventions in China, which come after a turbulent start to the year for investors, included the support of a state-backed fund and reports of a meeting between President Xi Jinping and financial regulators. A crackdown on short selling is also in place.
In London, Prudential was the biggest beneficiary as shares rallied 3% or 25.8p to 843.6p on a potential recovery for one of its key savings and investment markets.
The Pru was only beaten by BP as London’s top flight advanced 1% at one stage, before settling 24.23 points higher at 7637.09 as risk appetite was dampened by the prospect of a longer wait for interest rate cuts.
Other stocks on the front foot included HSBC after a rise of 10.2p to 629.4p, while Rio Tinto added 36p to 5385p on potential support for the world’s second largest economy.
The session also saw Rolls-Royce click back into gear after a cautious start to 2024. In a performance more in keeping with last year’s 221% rally, the engine giant’s shares today surged 8.1p to 317.5p.
On the fallers board, gambling group Entain dropped 2% or 16.4p to 973.4p after Barclays removed its “overweight” recommendation. A price downgrade by the same City firm also impacted Pearson, leaving the education publisher 2% or 20.2p cheaper at 948.4p.
Government 'asleep at the wheel' over claims of Iran sanction busting, MP warns
Tuesday 6 February 2024 10:09 , Daniel O'Boyle
The Government was accused on Tuesday of being “asleep at the wheel” after claims that Iran has been using two UK banks to divert money around the world, evading sanctions out of premises in Belgravia.
Iran’s state-controlled Petrochemical Commercial Company (PCC) used a web of front companies in Britain to discreetly move hundreds of millions of dollars via accounts at Lloyds and Santander UK, according to documents seen by the Financial Times.
Both PCC and its subsidiary PCC UK have been under US sanctions since November 2018. But in that time, the documents were said to show the Iranian entity continuing to operate out of an office in Grosvenor Gardens near Buckingham Palace, using a web of front companies in Britain and elsewhere.
BP shares rally, powered by capital return plans
Tuesday 6 February 2024 09:59 , Michael Hunter
BP's move to double down on offering bumper paydays for investors is energising its stock this morning, helping to the top of the London stock market leaderboard.
The rally also comes after profits fell from record levels by less than the City had expected.
BP made £11 billion for 2023 according to the key industry measure, known as underlying replacement cost profit, or $13.8 billion, down from $27.7 billion a year ago.
The UK’s fifth most valuable company announced a $1.75 billion payday for investors via a new share buyback. It also outlined further plans for $3.5 billion more in the first half of 2024.
Shares added 6% to 479.3p, a rise of 25p.
Murray Auchincloss – BP’s new chief executive, called 2023 "a year of strong operational performance", adding: “We are confident in our strategy, on delivering as a simpler, more focused and higher-value company, and committed to growing long-term value for our shareholders."
He also told a webinar for City analysts held after the results were published that he favoured "simpler guidance to help the market."
Auchincloss was confirmed in the job last month having taken over in September after the sudden departure of his predecessor. Bernard Looney left after failing to fully inform the company’s board over personal relationships with colleagues.
But the news of fresh gains for investors despite falling profits stoked a different sort of controversy, over the industry’s priorities. BP also said it expected production of oil to rise this year, while output from environmentally friendly energy sources will be lower.
Joseph Evans, at the Institute for Public Policy Research, said: “BP has decided to prioritise its shareholders over investing in the green transition”.
There was praise for the payouts in the City. Richard Hunter at Interactive Investor pointed out that “oil majors remain an important constituent of many standard portfolios given their cash generation and high levels of shareholder returns.”
Market snapshot: FTSE 100 still up, but gains fading
Tuesday 6 February 2024 09:57 , Daniel O'Boyle
Much of the FTSE 100's early gains have slipped away, but the top-flight index is still firmly up for the day.
Check out the latest market snapshot.
Mortgage market finally returning to pre-pandemic levels, Virgin Money says
Tuesday 6 February 2024 09:40 , Daniel O'Boyle
The mortgage market is finally returning to pre-pandemic levels, Virgin Money said today, after more than a year of subdued activity.
The bank revealed that lending was flat in the three months to 31 December at £72.8 billion, with mortgage lending dipping slightly. The business says it took a “disciplined approach to trading” as mortgage rates soared last year.
But amid hope that the Bank of England would cut interest rates soon, the market improved. Virgin Money said there were “early signs” activity in January that is now “back to 2019 levels”.
'Worst could be behind' construction sector, despite another decline
Tuesday 6 February 2024 09:34 , Daniel O'Boyle
The UK construction sector remains in decline, but the worst may be over, according to a closely watched survey.
The S&P Global UK Construction PMI came to 48.8 for the month, which still means the sector is in decline, as it is below the 50 mark, but is up from 46.8 in December and is the best figure since August 2023.
House building continued to fall significantly, but again this was at a slower pace than past months.
Tim Moore, Economics Director at S&P Global Market Intelligence, which compiles the survey said: "UK construction companies seem increasingly optimistic that the worst could be behind them soon as recession risks fade and interest rate cuts appear close on the horizon.
“The prospect of looser financial conditions and an improving economic backdrop meant that business activity expectations strengthened to the highest for two years in January. Moreover, there were again signs that customer demand is close to turning a corner as total new orders fell to the smallest extent for six months”
Futura rises on erectile dysfunction product launch
Tuesday 6 February 2024 09:04 , Daniel O'Boyle
Futura Medical shares are up 37% today as the pharmaceuticals business said it made its first meaningful revenues last year after the launch of a non-prescription erectile dysfunction treatment.
The business made £3.1 million in revenue, having secured FDA approval in the US for Eroxon, its first major product.
For 2024, Futura has secured consumer healthcare giant Haleon as a distribution partner for the product with a $4 million upfront payment.
CEO James Barder said: “I am incredibly proud to report that we have delivered on the three key objectives that we set out in 2023: achieving regulatory approval in the US; progressing commercial discussions by securing a standout distribution partner in Haleon for the largest consumer healthcare market in the world and reporting our first meaningful revenues.
“The delivery of this progress, alongside the fact that we have an award-winning product, has given us a robust and broad platform to build upon in the year ahead.”
Shares rose by 10.3% to 38p
BP and Asia-focused stocks lead FTSE 100 rally, Renishaw up 4%
Tuesday 6 February 2024 08:40 , Graeme Evans
BP shares have jumped 6% in the FTSE 100 index after the oil giant’s results beat expectations and it announced a further big buyback of shares.
The rise of 28.05p to 482.2p means BP shares are trading above where they started the year, despite this year’s downward trend for oil prices.
The FTSE 100 rose 72.55 points to 7685.41, aided by a recovery for commodity and Asia-focused stocks after the overnight rebound for the Hang Seng index and Shanghai Composite.
Prudential lifted 3% or 26p to 843.8p and Rio Tinto improved 82p to 5431p.
The FTSE 250 index rose by a more modest 0.3% or 61.68 points to 19,080.23, led by a results-day rally for engineering technology firm Renishaw. Shares lifted 4% or 140p to 3576p.
Market snapshot: FTSE jumps on China stimulus hopes
Tuesday 6 February 2024 08:26 , Daniel O'Boyle
Markets are off to a strong start after renewed hopes of Chinese stimulus.
Take a look at our latest market snapshot.
Nintendo ups forecasts on strong Switch sales
Tuesday 6 February 2024 08:09 , Daniel O'Boyle
Nintendo has upped its profit forecasts as it sees stronger-than-expected sales of its Switch console this year.
The video gaming giant now sees sales for the year to 31 March coming to 1.63 trillion yen (£8.74 billion), up from 1.58 trillion, and profits rising to 510 billion yen.
The business said: “For hardware, by continuing to convey the appeal of Nintendo Switch, we try not only to put one system in every home, but several in every home, or even one for every person. Another objective is to continually release new offerings so more consumers keep playing Nintendo Switch even longer and we can maximize hardware sales.”
Super Mario Bros. Wonder and The Legend of Zelda: Tears of the Kingdom were among the most successful game launches of the year.
UBS increases cost cuts -- jobs at risk
Tuesday 6 February 2024 07:38 , Simon English
UBS fell to a loss of $279 million (£222 million) in the final quarter of last year as it began the "first phase" of integration with Credit Suisse.
It is aiming for cost cuts of $13 billion, up from the $10 billion previously expected.
That controversial deal brokered by the Swiss government last year came after dramatic losses at Credit Suisse's investment banking arm.
Today UBS CEO Sergio Ermotti said: "2023 was a defining year in UBS's history....as we move to the next phase of our journey, we will focus on restructuring and optimising the combined businesses."
Thousands of City jobs will go. Credit Suisse has -- or had -- 5000 UK staff mostly at Canary Wharf while UBS has 6000 mostly at Broadgate in the City.
To placate investors, UBS said today it will buy back up to $1 billion of shares and reinstate a dividend in May.
Globally, UBS said it has cut headcount by more than 3000 in the last quarter. It said the merger of UBS and Credit Suisse should be completed by the end of the second quarter of 2024.
Ermotti added: " While our progress over the next three years will not be measured in a straight line, our strategy is clear. With enhanced scale and capabilities across our leading client franchises and improved resource discipline, we will drive sustainable long-term growth and higher returns."
BP says oil production to rise this year, renewable energy to fall
Tuesday 6 February 2024 07:29 , Michael Hunter
BP said today that it expects fossil fuel production to increase this year, while output from more environmentally friendly energy sources will be lower.
Revealed within its annual results for 2023, the update is likely to stoke controversy over carbon emissions and moves toward renewable energy. The update came out alongside news of a further $3.5 billion payout for investors in the year ahead.
The company said:
"BP expects underlying production from oil production & operations to be higher and production from gas & low carbon energy to be lower."
It also said payouts relating to the oil spill in the Gulf of Mexico in 2010 would be "around $1.2 billion" during 2024.
Asia markets rebound despite poor US session, FTSE 100 seen higher
Tuesday 6 February 2024 07:14 , Graeme Evans
The Hang Seng index has rebounded 4% and the Shanghai Composite by 3.2% amid hopes that China will roll out measures to help stabilise markets.
The rapid improvement in Hong Kong puts back the losses seen since 25 January as the volatile period for investors in the region continues.
Meanwhile, the prospect of a longer wait for interest rate cuts kept US investors on the sidelines yesterday as the S&P 500 index finished Monday’s session 0.3% lower.
The leading benchmark had been down 0.8% at one point after strong services sector figures reduced the pressure on US policymakers to cut rates.
Deutsche Bank reported this morning that investors now see a 17% chance of a March cut and 113 basis points of cuts by the December meeting, the lowest so far in 2024.
The FTSE 100 index fell 2.68 points yesterday and is forecast by CMC Markets to open 23 points higher at 7636.
BP's annual profits halve for 2023 but investors get fresh payout
Tuesday 6 February 2024 07:06 , Michael Hunter
BP has reported a sharp drop in as lower oil and gas prices pull earnings down from record levels across the industry.
The key industry measure, underlying replacement cost profit, halved to $13.8 billion, or £11 billion. Annual profit attributable to shareholders was $15.2 billion (£12.11 billion)
The first set of annual figures under new CEO Murray Auchincloss also include a $1.75 billion payday for investors via a new share buyback. It also said shareholders would get a further $3.5 billion in buybacks in the first half of 2024.
For the fourth quarter, profit fell to $371 million from $4.9 billion in the preceding three months and $10.8 billion in the same part of 2022.
For 2023 as a whole, BP paid out almost $8 billion in share buybacks and lifted its ordinary dividend by 10%.
Auchincloss called 2023 "a year of strong operational performance", adding: "We are confident in our strategy, on delivering as a simpler, more focused and higher-value company, and committed to growing long-term value for our shareholders."
Recap: Yesterday's top stories
Tuesday 6 February 2024 06:46 , Simon Hunt
Good morning from the Standard City desk.
News that Jeremy Hunt has asked the Office for Budget Responsibility (OBR) to run the rule over the abolition of VAT-free shopping for foreign tourists should not come as a great surprise.
It did not get much attention at the time, but in the Commons debate that followed the Autumn Statement in November the Chancellor promised Tory MP Sir Geoffrey Clifton-Brown, leader of the Scrap the Tourism Tax campaign, that “we are looking again at the numbers”.
The ending of the perk always had a strong anti-London flavour to it at a time when shoring up the northern red wall after Boris Johnson’s 2019 election victory was the only game in town.
By handing responsibility from the Treasury to the OBR Hunt can take the tricky politics out of the decision.
It remains to be seen what the OBR comes up with but the anecdotal evidence suggests a massive shift in tourist spending from London to Paris and Milan over the past three years.
There seems little doubt that pragmatic Hunt is preparing a tourist tax off-ramp that will allow him to please backbench Tory and Fleet Street critics while presenting the U-turn as in the interests of UK plc as a whole, not just the capital.
Here's a summary of our other top stories from yesterday:
CMC Markets to lay off 200 staff to save £21 million a year in latest City cull
Hipgnosis board seeks personal indemnity from Mercuriadis over litigation
British EV maker Arrival files for administration, putting 400 jobs at risk
Kurt Geiger enjoys most profitable month in its history as December sales surge 15%
Former Revolution Beauty boss Adam Minto agrees to pay the company £2.9 million in legal settlement
Southend Airport owner Esken in new warning about its future
