Yahoo Finance FTSE 100 Live 9 April: Blue-chips close a little lower as aerospace struggles, £150m private equity takeover
The FTSE 100 is trading slightly higher in a session featuring trading updates by BP and Imperial Brands.
The improved performance comes with gold and oil prices still at elevated levels.
BP shares rose to their highest level in five months but tobacco firm Imperial struggled for momentum after its update.
FTSE 100 Live Tuesday
BP shares rally after update
Tech firm Gresham backs US takeover
Talk TV losses jump 60%
Tesco results and US inflation tomorrow
17:59 , Daniel O'Boyle
Here’s what’s in store tomorrow, with Tesco results in the morning and US inflation figures in the afternoon.
Results
Tesco
M&C Saatchi
Futura Medical
Epwin
Economics
1.30pm US inflation
7pm Fed Reserve minutes
Bank of Canada rate decision
FTSE 100 closes at 7,934.79
16:36 , Daniel O'Boyle
the FTSE 100 closed down 0.1% today at 7,934.79.
London’s top flight remains close to record territory, less than 100 points below its highest ever close.
Miners made up most of the risers as gold continued to climb - with Fresnillo on top again. Aerospace firms were among the big fallers.
US stocks fall
16:19 , Daniel O'Boyle
Wall Street shares are lower today ahead of tomorrow’s key inflation reading.
The S&P 500 is down 0.5% at 5,175.30. while the Dow Jones is down 0.6% at 38,657.50. the Nasdaq is down 0.3% at 16,204.59.
Big fallers include Nvidia and Super Micro Computer, which have been two of the biggest success stories of 2024.
Moderna leads a biotech-heavy risers’ board.
AI can be ‘sword and shield’ against misinformation, Sir Nick Clegg says
16:15 , Daniel O'Boyle
Artificial intelligence (AI) can be a “sword and a shield” against harmful content, not just a tool to spread it, Sir Nick Clegg has said.
The former Liberal Democrat deputy prime minister is now the head of global affairs at tech giant Meta, the parent company of Facebook, Instagram and WhatsApp.
Speaking during an AI event at Meta’s London offices, Sir Nick said that while it was “right” to be “vigilant” about generative AI being used to create disinformation to disrupt elections, he said AI was the “single biggest reason” Meta was getting better at reducing the spread of “bad content” on its platforms.
FTSE 100 sinks
15:48 , Daniel O'Boyle
The FTSE 100 has sunk into negative territory this afternoon, taking a sharp turn after approaching record territory near lunchtime.
London’s top flight is down 0.2% at 7,925.19.
Aerospace and defence firms lead the fallers, with BAE, Melrose and Rolls-Royce all down.
Market snapshot: FTSE 100 steady
15:14 , Daniel O'Boyle
Take a look at the latest market snapshot with the FTSE 100 flat
Wildwood owner Tasty plans to shut 18 more restaurants
14:53 , Daniel O'Boyle
The restaurant firm behind the Wildwood chain has revealed plans to shut a raft of sites as part of a major restructuring.
Tasty, which also runs sites under Dim T brand, said it plans to exit around 20 loss-making restaurants after a “challenging” start to the year.
The restructuring plan would see the group shut 18 of these restaurants, with two of these sites already closed to customers.
Google’s Gemini AI to help write and narrate ads for marketing behemoth WPP
13:05 , Daniel O'Boyle
Google’s Gemini AI will narrate ads, write voiceover scripts and mock up products for London marketing behemoth WPP, in a huge collaboration that could see Google’s robots working on ads for companies like Coke and Nestle.
WPP - the parent company of a number of the world’s best-known ad firms, such as Ogilvy, Wunderman Thompson and VMLY&R - said the partnership with Google focuses on “four innovative use cases”.
Those are integration of Google’s “creative studio”, which allows for more brand content and guidelines to be used for prompts; improved content optimisation to predict how successful a campaign will be before it launches; use of AI to create “hyper-realistic” images of products; and AI narration, including scripts written by Gemini.
Gold prices touch new all-time high
12:58 , Daniel O'Boyle
The price of gold has hit a new all-time high as investors continue to drive a rally of the typically “safe haven” precious metal.
The spot price of gold hit highs of about 2,365 US dollars (£1,864) per ounce on Tuesday morning, surpassing previous record highs touched earlier this month.
It means the value has jumped by about 13% since the start of the year.
HSBC exits Argentina nursing $1 billion in losses
12:10
HSBC moved to conclude another South American misadventure today when it sold its troubled Argentinian arm for $550 million, leaving a loss of $1 billion.
The sale to Grupo Financiero Galicia will also lead to nearly $5 billion of currency losses due to the weakness of the Argentine peso.
This sale follows a far greater disaster in Mexico more than ten years ago when HSBC was found guilty of money-laundering for Mexican cocaine gangs, moving $7 billion out of Mexico and into the US.
Green light for one of world’s tallest student skyscrapers in Stratford
11:10 , Daniel O'Boyle
University housing provider Unite has received the green light for a 41-storey student skyscraper in Stratford, among the tallest buildings of its kind in the world, as providers seek to build up to solve the capital’s dramatic shortage of dedicated student digs.
The tower at Meridian Square, which will host almost 1000 students, is set to complete in 2028. It’ll top out higher than the current tallest student building in the world, Nido Spitalfields, but a building currently underway in Leeds, set to complete in 2026, is set to be even taller. It will be a centrepiece in Stratford’s fast-changing timeline, rivalling Manhattan Loft Gardens and the Stratford Yards North Tower for the title of the tallest building in Newham.
BP among risers in stronger FTSE 100, Imperial Brands steady
10:16 , Graeme Evans
BP shares are at their highest level in five months after the oil giant today put investors on standby for another robust set of results.
As well as pumping more oil in the first quarter of the year, the BP reported slightly higher gas output in a performance that reassured the City.
BP’s guidance ahead of results on 7 May helped shares lift another 2% or 8.9p to 518.8p, meaning they’ve now risen more than 10% in the past month.
A Brent Crude price above $90 a barrel has fired up investor interest, although today’s update also revealed the impact of lower natural gas prices.
The rest of the FTSE 100 risers board had a familiar look, with Mexico’s Fresnillo up another 4% or 25p to 581p after gold stayed in record territory at $2358 an ounce.
Fellow miners Rio Tinto, Anglo American and Antofagasta were also up by 2% as the FTSE 100 index recovered a weak start to stand 12.08 points higher at 7955.55.
The commodity stocks were joined by Halma, which lifted 2% or 53p to 2302p after Barclays analysts upgraded the safety technology firm to “overweight” with a 2650p target.
On the fallers board, the dismal run for Ocado shares continued with a decline of 3% or 11.3p to 363.8p. The grocery warehouse technology business has lost almost a fifth of its value so far this month.
Elsewhere in the FTSE 100, shares in Imperial Brands edged up 2p to 1734.5p as the Lambert & Butler and Blu business stuck to profit growth targets.
Helix Exploration gives AIM vote of confidence
09:53 , Daniel O'Boyle
The bosses of Helium firm Helix Exploration gave a vote of confidence to the City’s small cap markets today, as the firm became one of 2024’s rare London floats today.
Despite operating in the US, the firm opted for the City for its listing. Chair David Minchin said: “London is the natural home for resource focused stocks.
“It’s the type of investor that the AIM attracts. Both high net worth investors and institutions understand both the risks and opportunities.”
The shares were trading at 10.8p this morning, a little ahead of their 10p IPO price.
Demand for Helium has surged in recent years, as the inert gas is used for the production of crystals necessary for chip manufacturing.
Minchin said: “Helium is a lot more than squeaky voices and party balloons.”
Warpaint London adds some sparkle to its stock after record-breaking sales
09:30 , Michael Hunter
Shares in Warpaint London are looking good after the cosmetics brand said it would beat forecasts after record sales.
Famed for its W7 brand, named after its home postcode in the capital, it told investors that strong trading continued into this year, after a sparkling run to the end of 2023.
The firm was founded in 1992 by entrepreneurs Eoin Macleod and Samuel Bazini, who had both run market stalls selling cosmetics directly to the public on London street markets. Together, they built up a business now worth £320 million and remain as managing director and CEO respectively.
First quarter sales neared £24 million, up almost 30% year-on-year. Margins were also better. Warpaint said “2024 is now expected to be ahead of the market's current expectations”.
Among its best sellers are “Bronze Chic bronzing balm”, “Legend Foundation” and “Hot Shot Lip Plumping Gloss”.
Shares rose 42p to 417p, up 11%.
Gresham becomes latest firm to quit the London Stock Exchange
09:00 , Simon Hunt
Gresham Technologies today became the latest firm to quit the London Stock Exchange after it recommended an offer to be bought by US private equity firm STG.
The software firm said it had reached a deal to be acquired for 163.75p per share, a premium of 27% on yesterday’s closing share price, in a deal which values the company at just under £150 million. That remains well down on the listed value of the company at the beginning of last year.
Gresham cited poor liquidity and low trading volumes on the stock market as one of its motivations for quitting the exchange. “This low level of liquidity can make it challenging for Gresham Shareholders to monetise their holdings in the market should they so wish,” the company said.
The firm also said remaining a public company would mean “its competitive advantage in global financial markets is likely to be impacted over the medium to long term” because its private software rivals were “free from the constraints and requirements of the public markets and backed with substantial financing.”
California-based STG, which also owns TV and media editing software business Avid and survey software SuveryMonkey, said the deal was an opportunity to combine Gresham with its portfolio company, Alveo, which it acquired in January 2023 with the aim of “building a global and differentiated enterprise data management and governance platform.”
BP produces more oil while gas and low carbon falters
08:55 , Michael Hunter
BP said today it pumped more oil in the first quarter of the year, while output of gas and low carbon energy was only “slightly higher”.
The £86 billion company also said that “realisations in the gas and low carbon segment” are “expected to have an adverse impact in the range of $0.2-0.4 billion”, relating in part to lower natural gas prices on wholesale markets.
Its shares opened up 5.6p to 515.4p, a rise of 1%
Miners and BP support FTSE 100, Ocado shares down 2%
08:36 , Graeme Evans
The FTSE 100 risers board had a familiar look this morning, with the stronger gold price helping Mexico-based Fresnillo up another 11.5p to 567.5p.
Chile-based copper and gold miner Antofagasta also added 30p to 2245p while Anglo American improved by 19.5p to 2174.5p.
Other risers included BP, which lifted 4.6p to 514.5p after its first quarter trading update. On the fallers board, Ocado dropped 2% or 7.3p to 367.8p and Imperial Brands slipped 6p to 1726.5p despite unchanged results guidance.
The FTSE 100 index recovered from a weak start to stand 2.22 points lower at 7941.25, while the FTSE 250 index retreated 44.72 points to 19,809.86.
Talk TV losses jump 60% to £54 million in 2023
07:59 , Simon Hunt
Losses at Talk TV widened to £54 million in the year to July 2023, its latest accounts show, in signs of the difficult financial state the broadcaster found itself in before deciding to cease broadcasting on linear television.
The loss at the ‘Piers Morgan Uncensored’ and ‘Independent Republic of Mike Graham’ producer increased by nearly 60% or £20 million on the previous year, while turnover rose by £4.5 million over the same period, in signs advertising revenue was unlikely to cover the costs of running the TV station.
By July Talk TV had racked up liabilities of £95 million owed to its parent company, News Corporation.
Last month, TalkTV announced it will be taken off air in the summer and move online, it has been announced, weeks after Piers Morgan left his daily show on the channel.
Unite Students reservation rate a little behind last year, but still historically high
07:54 , Daniel O'Boyle
Demand for space at Unite Students’ properties is tracking a little behind last year but remains at historically high levels, as the FTSE 100 firm revealed it had received planning permission for two new properties including one in London.
The firm said its properties were 86% full for next year, down from 90% last year. It said demand from international students “remains robust” despite recent visa rule changes.
Joe Lister, Unite Students Chief Executive Officer, said: “Student demand is strong for the 2024/25 sales cycle, reflecting the continued appeal of our fixed-priced, all-inclusive offer and a growing shortage of high-quality student homes. Together with our alignment to the UK's strongest universities, this supports a positive outlook for rental growth for the 2024/25 academic year and underpins our property valuations.
“We continue to progress the delivery of our record £1.3 billion development pipeline, securing planning approvals on two schemes in London and Bristol. These projects will deliver much needed new student homes in two of the UK's strongest university cities.”
Lambert & Butler and Gauloises maker Imperial Brands stands by targets on ‘strong’ tobacco pricing
07:52 , Michael Hunter
Imperial Brands stood by its existing profit growth targets today, helped by what it called “strong tobacco pricing”.
The maker of Lambert & Butler and Gauloises cigarettes is eyeing adjusted operating profit growth in “the low single digits.
It generates more of its revenue in the second half of the year, but it said in the first half, tobacco profits were up. The target also strips out the impact of currency markets. Imperial also said today that exchange rates were taking a toll.
“At current exchange rates, translation foreign exchange is expected to be a c. 5 per cent headwind on first-half adjusted operating profit and a c. 3.5 per cent headwind on full-year adjusted operating profit,” it said,
Strong performances in Europe and the Americas “more than offset” a softer performance in Africa, Asia and Australasia as well as Central and Eastern Europe
The £15 billion company is one of the biggest dividend payers on the FTSE 100. Its full-year results are due in May.
Flat start for FTSE 100 after subdued US trading, oil above $90
07:16 , Graeme Evans
A downbeat US session means London’s FTSE 100 index is expected to follow Monday’s 0.4% improvement with a fall of about 2.5 points to 7940.
The S&P 500 index finished broadly flat last night as Wall Street traders stayed on the sidelines ahead of tomorrow’s monthly inflation reading.
The release of the consumer prices figure comes with the probability of a June interest rate cut by the Federal Reserve now seen at just 52%.
Trading was more positive for Asia markets after the Nikkei 225 rose 1% and the Hang Seng index by 0.75%.
On commodity markets, the gold price stayed near record territory at $2346 an ounce and Brent Crude traded at $90.58 a barrel.
Recap: Yesterday's top stories
06:46 , Simon Hunt
Good morning from the Standard City desk.
It was perhaps inevitable that after the failed experiment of appointing a former Whitehall mandarin and industry regulator as its boss, John Lewis would seek out a nuts-and-bolts retailer to replace her as its new chairman.
And they do not come much more nuts and bolts than Jason Tarry. Until his departure just a few weeks ago he had spent his entire 33-year career at Tesco since joining as a graduate trainee in 1990.
For the last six years he was running the UK supermarket business that is at the heart of Britain’s biggest retailer. The fact that he quit when he could have easily run down the clock as a Tesco lifer suggests that he had his eyes on a much bigger career prize.
Now arguably the most prestigious job in retailing — a post only previously held by five men and one woman — has come his way.
Although the term of the incumbent Dame Sharon White does not end until February, Tarry will step into the role in September in a sign of the urgency of the challenges facing John Lewis and its sister firm Waitrose.
Mr Tarry will have the shortest of honeymoons before diving into his in-tray. His top priority will inevitably be restoring the margins and profitability that the business was once renowned for after three years of losses and only a modest return to the black last year.
~
Here’s a summary of our other top stories from yesterday:
Microsoft to open huge AI hub in Paddington in major boost to London’s status as AI centre of excellence
Oil price falls back below $90 as Israel withdraws some troops from Gaza - but gold hits a new all time high
Cream bun chain Cake Box to open 20 new stores as it raises profit expectations
Clearbank looks to buy a bank in the US as it eyes global expansion
And...Huge lateral apartment goes on sale for £27 million at Old Park Lane site of building that first housed the Elgin Marbles in London for £27 million
