Yahoo Finance FTSE 100 Live: Blue-chips finish higher, Jamie Dimon warns on 'stickier' inflation than markets expect as JPMorgan posts record profits
FTSE closes higher while Bitcoin sinks
16:51 , Simon Hunt
The FTSE 100 is up around 0.5% at the end of the day's trading session in London.
Meanwhile, the price of Bitcoin has fallen more than 5% amid a wobbly start to the launch of crypto ETFs in the US.
Here's a last look at your key market data:
Flutter and 888 set to report results amid US listing and takeover rumours
15:48 , Simon Hunt
Two of the UK’s biggest gambling companies will present a set of results next week as they both potentially go through periods of big change.
FTSE 100 listed Flutter, which owns Paddy Power and Betfair, will put forward its last trading update on Thursday before its shares start trading in New York, something it hopes can help the company tap into funding from the US market.
Meanwhile, its London rival 888 is reportedly batting away approaches from potential suitors and will update markets on Wednesday with its full-year results.
Analysts are expecting 888 to report revenue of £1.71 billion and adjusted pre-tax profit of £26 million during the year.
City Spy: Now's your chance to invest in the world's deepest underground boozer
15:29 , Simon Hunt
Some claim that City drinking culture is dead and buried — in reality it’s just gone underground.
London’s deepest licensed bar -- and quite possibly the deepest in any city in the world -- is on its way to Holborn, as part of the reopening of the tunnels known as the Kingsway Exchange. Built as air raid shelters in 1940, the tunnels were later used by MI6 and the Public Records Office to store secret papers, and for the Cold War era telephone exchange.
The bar promises to be one of the swankiest in the capital. CEO of the project Angus Murray, a former president of Macquarie, is sure to be well-acquainted with the tumbler-shaped exigencies of City grandees. On a site visit, Spy was shown the old 1970s bar, above, that staff once used. Helpfully, a life-size cut-out of James Bond with a martini was installed to give it an air of sophistication.
And why not add a side order of shares to your tipple? London Tunnels today announced its plans for a London IPO -- confirming a scoop the Standard ran last month.
The firm is seeking to raise £30 million on the London Stock Exchange in a public offering that would value the company at £123 million.
US banks rise amid JPMorgan profits and Citi cutbacks
14:54 , Simon Hunt
Stocks made gains in the opening minutes of trading in New York as investors upped their bets on Fed rate cuts following a faster-than-expected fall in producer prices.
Banks led the pack, with JPMorgan rising on record profits while investors bet Citi's job cuts would boost margins.
Meanwhile, United Airlines shares have sunk more than 5% amid reports it and rivals have cancelled more than 1600 flights in the US amid concerns over winter storms.
Here's a look at how the markets are moving:
Just Eat forks out $3.5m fine
14:41 , Simon Hunt
Just Eat's US subsidiary Grubhub is to pay a $3.5 million fine after it was accused of overcharging restaurants during Covid.
The Office of the Attorney General of Massachusettes said the firm failed to comply with a fee cap brought in during the pandemic that prevented Grubhub and other third-party delivery service platforms from charging fees to restaurants exceeding 15% of an order’s restaurant menu price.
Stephen Clark, President and CEO of the Massachusetts Restaurant Association, said: "While the dark days of the pandemic are behind us, the impacts are still being felt across the restaurant industry.
"Delivery, especially third-party delivery, is not going away. Restaurants and third-party delivery companies will need to continue to work collaboratively to survive and grow. We thank the Attorney General for her efforts in bringing this to a resolution.”
Banking giant Citi could cut hundreds of London jobs as it aims to reduce headcount by 20,000
14:13 , Daniel O'Boyle
US banking giant Citi is set to cut 20,000 jobs - including potentially hundreds in London - in a massive cost-cutting program after racking up huge losses last year.
The banking giant said it would reduce its headcount by about 20,000 - from its current 200,000 to around 180,000 - over the “medium term”. It will spend as much as $1 billion this year paying severance to ex-employees, after severance costs of $1.5 billion last year.
The bank did not provide a geographical breakdown of the job cuts, but it employs around 9,000 people in London. Its London staff are based out of the 200-metre-tall Citigroup Centre skyscraper in Canary Wharf. If the cuts are proportional across Citi’s offices, it is likely that around 900 staff in London would lose their jobs.
Wall Street stocks to fall
13:34 , Daniel O'Boyle
US stock futures are lower, despite strong results from giants JPMorgan Chase and Blackstone, today, as Wall Street reacts to the air strikes in Yemen.
Dow Jones futures are down 0.5% to 37734, while S&P 500futures are down 0.3% to 4799. Nasdaq futures are down 0.4% to 16897.
Premarket fallers include Tesla and Riot Platforms, while a number of phramaceutical firms are among the risers.
Lunchtime snapshot: Burberry sinks as JD pares back losses
13:04 , Simon Hunt
Burberry shares have sunk more than 7% after a profit warning while JD Sports shares have rallied to recover some of the huge falls the stock made last week.
Here's a look at your key market data.
JPMorgan posts record annual profits
12:35 , Simon Hunt
Profits at JPMorgan hit a record $50 billion in 2023 as the US bank was bolstered by rising interest rates.
The firm forecast net interest income of as much as $90 billion in 2024. That helped push shares up as much as 2% in pre-market trading in New York.
CEO Jamie Dimon said: "Our record results in 2023 reflect over-earning on both NII and credit, but we remain confident in our ability to deliver very healthy returns even after they normalize."
Dimon said the US economy continues to be resilient, but warned: "It is important to note that the economy is being fueled by large amounts of government deficit spending and past stimulus...this may lead inflation to be stickier and rates to be higher than markets expect."
Red Sea: Why is it important to trade and could crisis increase prices?
12:21 , Simon Hunt
The UK and US have launched “targeted strikes” against Houthi rebels in Yemen after weeks of attacks on international shipping in the Red Sea.
Prime Minister Rishi Sunak said the UK will “always stand up for freedom of navigation and the free flow of trade” after conducting the strikes overnight.
The Suez Canal is crucial for transporting energy, commodities and consumer goods.
About 30% of all global container shipping passes through the gateway between the East and the West, with it being particularly used to transport goods from Asia and east Africa to Europe.
About half of ships travelling through the canal via the Bab-el-Mandeb strait are containerised goods, while it is also used heavily by oil tankers from the Persian Gulf.Shipping firms having to reroute means sending vessels around Africa’s Cape of Good Hope, which is more than 6,000 kilometres longer and can add between 10 and 14 days to journey times.
City Comment: 'Dismal' growth? Maybe, but at least it means your mortgage is getting cheaper
11:32 , Simon English
The TUC today lambasts “dismal” economic growth that is hurting living standards.
The union group is right in a way. GDP has been going nowhere especially useful for ages, down a bit here, up a bit there.
General Secretary Paul Nowak said: “This year begins with another set of dismal growth figures.”
There’s not a great deal to argue with there, although the Tories have had to deal with some fairly severe headwinds of which Covid is only the most obvious.
Here’s the thing though, with inflation now falling, those dismal economic growth figures give the Bank of England room to cut interest rates.
London jobs market weakens at fastest pace since 2020
11:24 , Daniel O'Boyle
London's job market weakened at the fastest pace since 2020, according to new figures that the capital's business leaders said are a ‘clear message to the Chancellor’.
The KPMG and REC London labour market pulse check, supported by BusinessLDN, showed vacancies falling for the tenth consecutive month. But the decline accelerated in December, with a pulse reading of 47.0, which is weaker than the rest of the UK. Any reading below 50 represents decline while any figure above 50 represents growth.
The number of candidates available for work also increased for the 12th month in a row. Permanent placements were down, but not as sharply as in December.
Could AI kill us? Inside Google DeepMind
11:04
Everyone laughed politely when I asked whether AI might, in the end, kill us all — everyone apart from one researcher from a US-based thinktank who told me that, as a pessimist, he believes there is about a “20 per cent chance that AI poses an existential threat to life.”
“That’s a smaller percentage than you used to say,” an eminent professor from Stanford University quipped, “outlooks have improved?”
“Well, just as long as people are afraid, fear is healthy."
The night before November’s AI Safety Summit was due to take place at Bletchley Park, Alexandra Jones was invited to a drinks event hosted by Google DeepMind, one of the world’s largest and most influential AI companies.
FTSE 100 up as European markets rally, NatWest and Rightmove higher
09:53 , Graeme Evans
Builders, banks and retailers powered the FTSE 100 index today as much-needed economic optimism swept through European markets.
Traders welcomed the UK’s GDP surprise and remarks of European Central Bank president Christine Lagarde that the 'hardest and worst bit' on inflation was likely over.
Europe’s leading benchmarks put on 1% and the FTSE 100 lifted 0.8% or 59.98 points to 7636.57, recouping losses seen after yesterday’s hot US inflation reading.
The rally came despite the deteriorating Middle East situation, with Brent Crude up 2% to $79.05 a barrel after last night’s US-led attacks on Houthi targets.
London’s big risers included NatWest after a jump of 3p to 214.7p, discounter B&M up 9.6p to 564.4p and property portal Rightmove, ahead 10.4p to 560.2p.
House builders fared well after affordable homes specialist Vistry upped 2023 profits guidance. Its shares added 22p to 989.5p as the FTSE 250 surged 172.81 points to 19,280.74.
The biggest FTSE 100 faller was Burberry, down 7% or 100p to 1260.5p after it cut profit guidance due to slower luxury demand.
UK 'teetering on the edge' of recession... but will it fall in?
09:41 , Daniel O'Boyle
Rob Morgan, chief investment analyst at Charles Stanley, says: “Provided December’s figure is positive, which is a realistic expectation, the UK will have teetered on the edge of recession without falling in.
“However, much will depend on activity around the festive period, and it may be that Black Friday discounting brought forward more Christmas spending than usual.”
Shell tops ranking of most expensive fuel station brands
09:28 , Daniel O'Boyle
Shell fuel stations are typically the most expensive in the UK, new figures show.
The British oil and gas company’s branded UK forecourts charged an average of 142.6p per litre for petrol and 151.2p per litre for diesel on Thursday, according to analysis by motoring research charity the RAC Foundation.
That is more than all other major retailers.
Housebuilders lead FTSE 100 rally, Trustpilot up 4%
08:58 , Graeme Evans
The FTSE 100 index has put back most of yesterday’s losses, with housebuilders Taylor Wimpey and Barratt Developments and retailer JD Sports Fashion among several stocks up 2%.
Today’s blue-chip rise of 0.7% or 53.15 points 7629.74 followed the UK’s strong GDP reading for November and a relaxed response to yesterday’s 3.4% US inflation figure.
Other stocks on the risers board included NatWest, which cheered 3.3p to 215p, and Primark owner Associated British Foods with a gain of 35p to 2289p.
The FTSE 250 index improved 0.9% or 168.72 points to 19,276.65, with the technology-focused pair of Future and Trustpilot up 4%.
Housebuilder Vistry lifted 3% or 25.5p to 993.05p after it reported that 2023 adjusted profits would be ahead of guidance given in October, at a level similar to the previous year’s £418.4 million.
Bank 'will be comfortable holding rates'
08:51 , Daniel O'Boyle
Sophie Lund-Yates, lead equity analyst, Hargreaves Lansdown, says: “The UK’s economy squeezed out a small drop of economic juice in November, with month-on-month GDP rising to 0.3%, from minus 0.3% in October. This could be a sign that people were getting ready for Christmas early, and all eyes will now be on how December itself shaped up, once consumers had potentially emptied their wallets on Black Friday deals.
"A sluggish metabolism has become the new norm for the UK as higher interest rates and deep-rooted productivity problems continue to bite. The lack of meaningful movement, in theory, adds weight to hopes that the Bank of England will be comfortable holding interest rates where they are, but there are unfortunately some more hoops to jump through before that becomes a certainty. Inflation’s moving in the right direction but still isn’t where it needs to be, and that’s a major blocker to looser monetary policy being allowed through."
Market snapshot: Oil rises
08:25 , Daniel O'Boyle
Take a look at today's market snapshot, with Brent Crude rising back towards $80 after the latest developments in Yemen.
Burberry shares slide after profit warning, FTSE 100 rallies
08:22 , Graeme Evans
A profit warning by luxury goods group Burberry today sent its shares down by 9% or 117p to a fresh multi-year low of 1243.5p.
The company reported a 7% decline in revenues to £706 million for the 13 weeks to 30 December, meaning that operating profits for the year to 30 March will now be in the range of £410 million to £460 million.
The “further deceleration in our key December trading period” follows Burberry's warning in the autumn that it would miss targets if trading conditions did not improve.
Chief executive Jonathan Akeroyd said today: “We remain confident in our strategy to realise Burberry's potential and we are committed to achieving our £4 billion revenue ambition."
Burberry’s latest slide in valuation came as the FTSE 100 index posted a stronger-than-expected performance, up 0.8% or 63.43 points to 7640.02.
'Economic hokey cokey' goes on as GDP rises
07:52 , Daniel O'Boyle
Nicholas Hyett, investment analyst at Wealth Club, said: “The UK continues its economic hokey cokey in November, with 0.3% growth in GDP following a 0.3% fall in October.
"With weakness in travel and hospitality, there is evidence that the cost of living crisis continues to squeeze consumers. But, high tech service industries seem to be picking up the slack, and even manufacturing is showing some signs of life, with its first positive growth since June 2023. It's an economic muddle, albeit with some promising signs."
Vistry beats expectations in sign housebuilding gloom may be ending
07:50 , Daniel O'Boyle
Developer Vistry beat expectations in 2023, in a boost to the housebuilding sector that was battered by rate hikes last year.
Vistry, which announced this year it would focus only on affordable housing, said profit should be roughly level with last year’s £418.4m, defying expectations of a decline.
Total completions slipped to 16,124, but Vistry said this meant it was “significantly outperforming” rivals.
CEO Greg Fitzgerald said: “"The Group had a strong run into the year end and I'm pleased to report that adjusted profit before tax for FY23 is anticipated to be ahead of guidance. Our FY23 performance has demonstrated the resilience of Vistry's unique Partnerships model.
“Looking ahead, working with our highly valued partners we are committed to increasing the delivery of much needed homes across the country, and in the fourth quarter have continued to secure exciting new developments that reflect our high return, asset-light partnerships model.
Our forward sales of £4.5 billion is up 12.4% on prior year and positions us well to deliver a step-up in total completions in FY24 and make progress towards our medium-term targets and the return of £1bn of capital to shareholders."
Fitzgerald is set to also take on the role of chair.
London Tunnels firm confirms intention to float
07:40 , Simon Hunt
The firm behind the opening of the secret WW2 tunnels in central London has today laid out its plans for an IPO on the London Stock Exchange, confirming previous reporting by the Standard.
London Tunnels Plc plans to raise £30 million at a valuation of £123 million. The firm said it had already raised £10 million from investors privately.
Angus Murray, Chief Executive Officer of The London Tunnels, commented: "The Admission of The London Tunnels to the London Stock Exchange offers both UK and International investors a chance to support, while owning part of, this unique irreplaceable heritage and cultural attraction located in Central London.
"We envisage The London Tunnels achieving the same iconic status in London as the London Eye."
'Temporary factors' boost GDP
07:29 , Daniel O'Boyle
Ruth Gregory, deputy chief UK Economist at Capital Economics, notes that November’s GDP was affected by a number of ‘temporary factors’.
“Two temporary factors appear to have contributed to the rise. First, the 0.4% m/m rise in services output had a lot to do with a fewer number of strikes in the health, transport and TV/film production sectors,” She said. “Second, Black Friday discounting appears to have bolstered wholesale and retail activity by 0.5% m/m.
“Consumer-facing services output rose by 0.6% m/m. Equally, though, some of the 0.2% m/m fall in construction activity in November was probably due to the unseasonably wet weather. And the return to growth in November was also driven by a 0.3% m/m increase in manufacturing output which resulted in a 0.3% m/m gain in industrial production.”
FTSE 100 seen higher as Nikkei 225 extends run, Brent Crude rises
07:20 , Graeme Evans
The price of Brent Crude today rose 2% to $79 a barrel as oil markets responded to the deteriorating situation in the Middle East.
Despite last night’s US-led attacks on Houthi targets, Asia markets posted a steady performance while the FTSE 100 index is forecast to open 33 points higher at 7609.
Japan’s Nikkei 225, meanwhile, added another 1.5% to set a new 34-year high.
The mood was helped by a large drop in China producer prices and a bigger-than-expected rise in the country’s export growth figure for December.
Traders have also taken a relaxed view of yesterday’s US inflation reading of 3.4%, which appears to have dashed hopes of a March interest rate cut.
The leading US benchmarks closed broadly flat as attention turns to this afternoon’s release of weaker quarterly earnings figures from banking giants JPMorgan Chase, Bank of America, Citigroup and Wells Fargo.
'Awful lot of pressure' on next GDP reading
07:19 , Daniel O'Boyle
With GDP rising by 0.3% in November, attention turns to December's figures.
Richard Carter, head of fixed interest research at Quilter Cheviot, says: “The UK economy grew by a modestly positive 0.3% month-on-month in November, up from the unexpected 0.3% contraction seen in October. This uplift in November is just enough to bring the UK economy back to flat growth over these two months, but it leaves an awful lot of pressure on the December figures as even a slight downward turn would result in the UK entering a technical recession after Q3 GDP was revised down to a fall of 0.1% at the end of last year.
“This morning’s figure shows just how precarious the situation is for the UK economy and piles yet more pressure onto the Bank of England to cut interest rates. The Bank has managed not to tip the UK into a recession to date, but it is looking increasingly likely that its luck may be coming to an end.
UK heads away from recession as GDP rises in November
07:11 , Michael Hunter
Official economic numbers just out show that the UK's faltering economy is at least heading away from recession, with growth in November.
But the numbers continued to look stagnant as the struggle for robust rates of expansion continued.
The gross domestic product for the month rose 0.3% month-on-month, turning round from a contraction of the same margin at the last reading.
On a year-on-year basis it rose 0.2%, from a drop of 0.1% last time.
The turnaround was led by a better showing in the dominant services sector. Its output was up 0.4%. Construction lagged, with a fall of 0.2%.
It was a better showing than forecast. City experts had expected a year-on-year contraction of 0.1% and a month-on-month fall of 0.3%. That would have left the economy on course for recession when numbers for December were released, providing a wider reading for the fourth quarter.
Today's data, from the Office for National Statistics mean the country is moving away from the technical definition of a recession – two consecutive quarters of economic contraction – after shrinking in the third quarter.
Nonetheless, such low growth rates are seen by economists as little different to modest contractions. November's number fits with the established pattern, recently described by Simon French, chief economist at broker Panmure Gordon as "a “series of random numbers trending around zero.”
Today, Joshua Mahony at Scope Markets called November's "reversal of the worrying decline" seen in October as "welcome", adding:
"This 0.3% growth figure represents the best monthly performance in five months, easing fears of a interest rate driven contraction for the UK economy."
Recap: Yesterday's stories
06:41 , Simon Hunt
Good morning from the Standard City desk.
The impossible almost happened yesterday. For years Apple has been by far the most valuable listed company in the world.
But when markets opened on Wall Street, the Californian tech giant was surpassed by its Washington-based rival Microsoft. Apple shares sunk on fears of weaker iPhone demand, while Microsoft's shares have risen sharply over successive months amid hopes of its AI capabilities.
By the time markets closed, Apple had edged ahead again. Microsoft's stock closed 0.5% higher, giving it a market value of $2.859 trillion, while Apple shares closed 0.3% lower, giving the company a market cap of $2.886 trillion. Either way, Apple's years of dominance look at risk of coming to an end.
Here's a summary of our other top headlines from yesterday:
More colleagues on the shop floor and a full Christmas dinner for just £2.09 each helped Tesco to a strong festive trading period according to chief executive Ken Murphy. Sales in the third quarter rose 7.3% while Christmas sales rose 6.4% --a bit lower than arch rival Sainsbury reported yesterday. But Tesco ups profit guidance to £2.75bn.n Concerns over Suez supply situation
Cybersecurity firm Darktrace ups guidance after revenues jump by a quarter (an ES share tip)Trouble on the dealer floor:
FCA says it is to "review historical motor finance commission arrangements and sales across several firms."
Premier Inn owner Whitbread says it continues to outperform its budget hotel rivals, making an extra £6 per room in the UK after 11% growth in three months to 30 November
Estate agent Savills saw "a significant reduction in profits for the year", but believes "peak uncertainty" has passed
Consumer review site Trustpilot ups guidance and buys back £20m in shares after strong
Christmas period.£1.9 billion deal to create the UK's fourth biggest real estate investment trust as London Metric buys LXi.
