Yahoo Finance FTSE 100 Live 18 July: Frasers hails ‘break-out year’ as shares jump, wage growth at 5.7%
Wage figures today dealt another blow to fading hopes of an August interest rate cut.
Earnings growth of 5.7% was published alongside an unchanged 4.4% unemployment rate.
Meanwhile, Frasers Group and Dunelm starred in today’s FTSE 350 after they posted robust updates.
FTSE 100 Live Thursday
Earnings growth sticks at 5.7%
Frasers shares surge after results
Dunelm upbeat on summer sales
FTSE 100 ends higher but its rally wanes as US stocks stutter
17:01 , Michael Hunter
London’s main stock market index ended with gains for the day, but its advance cooled in afternoon trade as New York markets struggled.
The FTSE 100 closed up over 17 points at 8204.89, a rise of 0.2%. It had been as high as 8267.78, but the rally cooled as Wall Street struggled after weak-looking jobs data.
Retailers Frasers Group made the best single gain of the day, up over 9% or over 76p to 897p after it kept profit guidance at the top of its forecast range.
Heavily weighted mining stocks were among the laggards as the outlook for economic growth looked cloudier, not least with a cooling US jobs market.
Tech stocks rebound in New York but lacklustre jobs data makes for a mixed morning
15:21 , Michael Hunter
Bargain hunters snapped up tech stocks in the US, helping power a rebound on the Nasdaq Composite after its drop during the previous session.
The tech-heavy index rose by almost 100 points to 18080.02.
But a chilly reception for jobs data held back the broader S&P 500, which rose 20 points to 5658.75.
New applications for unemployment benefits were up by more than expected – by 20,000 to 243,000 – in another sign of a cooling jobs market as the wait for an interest rate cut goes on.
US stocks set to rise as tech stocks look ready to bounce back from sell-off
13:17 , Michael Hunter
Wall Street’s S&P 500 is expected to bounce higher in opening trade, with tech stocks expected to recover after their sharp drop over the previous session.
The broad New York stock index is on course to rise 9 points in opening trade, taking it to 5647.50.
TSMC, the semiconductor firm, was rallying in prw-market trade after its quarterly profits beat forecasts.
It was among the tech stocks that led the previous session’s selling on worries about tighter export controls in the US.
City Spy: caffeine addicts should prepare for cost rises
13:07 , Simon Hunt
Every outlet on Fleet Street seems to have had its say over the price hikes at Pret A Manger in recent months: the Standard, Telegraph, FT, Bloomberg…take your pick. If Pret was looking to reassure its members that it’s keeping prices low, today’s announcement may well have gone down like a cup of cold macchiato.
The sandwich chain said today it would undertake a major overhaul of its Club Pret coffee subscription scheme. From September, the subscription price will go down from £30 to £5 – but instead of getting five free daily coffees, members will now only get them half price.
Is this a saving for members? The short answer is it depends how much you like coffee. Spy has crunched the numbers based on the Pret down the road from Standard towers. It turns out if you’re a true caffeine addict and are using up all five free coffees daily, ordering cappuccinos, the new scheme would cost you an eye-watering £260 more per month, or more than £3,000 extra per year. Ouch.
Of course, even the most dedicated Pret fans are unlikely to visit its stores that often. But even if they drank one coffee a day, the monthly cost will still more than double to £67. Indeed, only if you drink fewer than one coffee every two and a half days are you making a saving – not nearly enough to sate Spy’s fix.
AJ Bell cheers new investors
11:23 , Simon Hunt
Record highs for global stock markets helped drew in new investors at broker AJ Bell, it revealed today, boosting the value of assets it controls and sending its own shares higher.
The Manchester-based investment platform had almost 530,000 customers by the end of the third quarter, having added 25,000 in the three months to the end of June, up 13% year-on-year.
Assets under administration at the platform rose by almost a fifth to £83.7 billion. Net inflows hit £1.7 billion.
Michael Summersgill, AJ Bell’s CEO, said: “”Recent stock market performance has boosted confidence amongst … customers, resulting in higher levels of dealing activity in recent months, with international dealing activity being particularly strong.”
The firm’s own shares rose by over 18p to 415p.
FTSE 100 rallies, AJ Bell shares jump 6% on strong update
10:32 , Graeme Evans
The FTSE 100 index is up 0.7% or 56.90 points to 8244.36, with BP back in favour after a gain of 1.5% or 6.7p to 459.4p and Unilever ahead by another 57p to 4518p.
Former BHP takeover target Anglo American chipped in with a rise of 32p to 2307p after maintaining 2024 guidance for copper and iron ore output.
Other strong performers included private equity firm 3i, up 3% or 86p to 3154p after another robust quarter for its Action discount retail chain.
SSE also rose 12p to 1848p as favourable weather conditions led to a 60% year-on-year increase in renewables output in the first quarter.
In the FTSE 250, Premier Foods rose 1.4p to 172.8p after “standout” performances by Mr Kipling, Nissin and The Spice Tailor helped sales up 5.3% in the June quarter.
AJ Bell shares jumped 6% or 22.2p to 419.2p after it finished the June quarter with 528,000 customers, up 13% on last year and 5% over the previous three months.
It said that stronger investor sentiment meant higher levels of dealing activity in recent months, with international trading particularly strong.
Net inflows were 55% higher than the same period last year at £1.7 billion, helping to drive assets under administration in the platform business to a record £83.7 billion - up 20% on last year.
Chief executive Michael Summersgill said: "We enter the final quarter of our financial year with strong momentum.”
Frasers hails ‘break-out year’ as shares jump
10:14 , Simon Hunt
Shares in retail giant Frasers jumped as much as 10% to 900p today as the Sports Direct owner forecast a big jump in profitability.
The firm, which also owns the Evans Cycles and House of Fraser brands, said its adjusted pre-tax profits for the year to April 2025 could rise to as much as £625 million, a jump of around £80 million from the previous year after delivering ‘synergies’ from automation and the integration of recent acquisitions.
The share lift means Frasers’ stock is now back to where it was in January after a difficult start to the year which saw it put designer brands platform Matches Fashion into administration less than three months after having acquired it.
Frasers posted revenues of £5.5 billion in the year to end April, around 1% lower than last year and around 4% short of market estimates according to Bloomberg data.
Retail sports sales at the Mike Ashley-owned business declined the sharpest, down 3% to £2.9 billion, while its ‘premium lifestyle’ segment declined 1%.
TSMC forecasts sales surge on demand for chips in AI
09:31 , Simon Hunt
The world’s largest contract chipmaker today said its third-quarter sales could jump by as much as a third as a slump in demand for consumer electronics was more than offset by a surge in the use of semiconductors in artificial intelligence.
Taiwan-based Apple and Nvidia supplier TSMC said its revenues for the three months to end September were set to come in at as high as $23.2 billion (£17.9 billion), compared to $17.3 billion a year ago.
Despite the rosy forecasts, the company’s shares have taken a 5% knock over the past two days after remarks by Republican candidate for the US presidency, Donald Trump, that Taiwan should pay the US for its defence.
Plans to redevelop HSBC's Canary Wharf site revealed
09:12 , Simon Hunt
Plans for the largest-ever conversion of an office skyscraper were unveiled today as designs were laid out for a reimagined 8 Canada Square, the current global headquarters of HSBC.
Proposals for the Canary Wharf site, which is wholly owned by the Qatari sovereign wealth fund, show big chunks being taken out of the existing building, to be replaced by open-air terraces and new leisure and entertainment spaces in an overhaul that could cost as much as £800 million.
If approved, construction would commence in 2027 following the expiry of HSBC’s lease, with a target of 2030 for completion. HSBC plans to exit Canary Wharf in a move to a smaller site in the City that was previously the head office of BT.
It’s hoped the designs will chart a course for business districts seeking to repurpose sites into mixed-use developments amid declining demand for large office spaces.
Dunelm, Qinetiq and AJ Bell star in FTSE 250, Frasers leads FTSE 100
08:31 , Graeme Evans
Frasers Group shares have jumped 9% or 72p to 893.5p after the Sports Direct owner reported adjusted profits growth of 13.1% to £544.8 million, at the top end of the company’s guidance range.
This year’s estimate is for a figure between £575 million and £625 million.
The jump came in a much improved session for the FTSE 100 index, which climbed 73.29 points to 8260.75. JD Sports Fashion benefited from its rival’s update as shares rallied 1.8p to 118.45p.
Other strong blue-chip stocks include private equity firm 3i, which rose 3% or 86p to 3154p following another strong quarter for its Action discount retail chain.
The FTSE 250 index lifted 51.04 points to 21,144.38, led by Dunelm after the homewares retailer said full-year profits are likely to be slightly better than current City forecasts.
Its shares rose 6% or 62p to 1168p, ahead of defence and security products firm Qinetiq and investment platform AJ Bell after their updates sent shares 3% higher.
Mr Kipling demand boosts Premier Foods
08:00 , Graeme Evans
Premier Foods today said Mr Kipling, Nissin and The Spice Tailor were standout performers as sales rose 5.3% in the quarter to the end of June.
Grocery revenue increased by 7.1% in the quarter while sales of sweet treats were 0.4% higher at £59.9 million amid strong demand for products including Mr Kipling brownie bites.
New categories revenue increased by 68% thanks to Ambrosia porridge pots and Angel Delight ice-cream.
Chief executive Alex Whitehouse said: “We expect to see more volume led branded sales growth in the coming quarters, further progress overseas and our expectations for the full year remain unchanged."
Dunelm sounds upbeat note on summer sales despite wet weather
07:59 , Michael Hunter
Homewares retailer Dunelm dispelled some of the gloom over the high street today, after such a wet summer.
The 180-store chain said it had “a good summer sale period in June”. and that customers were also “buying full priced lines”.
Nonetheless the weather did reach one area.
Outdoor furniture “saw softer sales”, it said, but otherwise “sales growth was fairly consistent across our categories in the quarter,
Sales in the fourth quarter rose 5% to £399 million. For the full year, they were up 4% to £1.7 billion.
Full-year profit was likely to “ be slightly ahead of current market expectations”, it said, of around £200 million.
Unemployment rate holds at 4.4% and rise in average earnings stick at 5.7%
07:23 , Michael Hunter
There are more sticky-looking numbers on wages and jobs this morning, that will be closely watched by the Bank of England as the wait for an interest rate cut goes on.
Wages data showed average earnings rose 5.7% in May, in line with the last reading as well as forecasts.
It added to a feeling that stubbornly high numbers within the mix on inflation would make action on rates likely later in the summer rather than at the BOE’s August policy meeting. Service sector inflation looked sticky yesterday.
The UK’s unemployment rate was steady at 4.4% in May, in line with the previous reading and City expectations.
But the number of people out of work and on benefits rose by more than forecast in June, The number of new claimants hit 32,300, more than the 23,400 predicted.
Frasers sales slip, missing estimates
07:22 , Simon Hunt
Retail giant Frasers saw profits dive and sales decline in the year to end April, results just out show.
The Sports Direct owner posted revenues of £5.5 billion, around 1% lower than last year and around 4% short of market estimates according to Bloomberg data.
Retail sports sales at the Mike Ashley-owned business declined the sharpest, down 3% to £2.9 billion, while its ‘premium lifestyle’ segment performed better.
Overall profit before tax slumped 21% to £507 million.
FTSE 100 seen higher after Dow Jones record, tech stocks slump
07:08 , Graeme Evans
The Nasdaq last night closed 2.8% lower and the S&P 500 index fell by 1.4% after semiconductor stocks were hit by a warning of tighter China trade curbs.
The threat of greater intervention by the Biden administration meant Nvidia slid 7% and AMD by 10% in a session of mixed fortunes for US investors.
In contrast to the tech sector, the Dow Jones Industrial Average rose 0.6% to set another record high above 41,000.
Futures markets are pointing to a steadier session for US markets later today, while the FTSE 100 index is forecast to add another 41 points to 8229 after edging into positive territory yesterday.
The pound was at a one-year high of $1.30 just before today’s unemployment and earnings figures, while a barrel of Brent Crude traded at $85.48.
Recap: Yesterday's top headlines
06:43 , Simon Hunt
Good morning from the Standard City desk.
Companies kept a close watch on the King’s Speech yesterday – an early test of whether the new Labour government is as pro-business as chancellor Rachel Reeves has claimed in her bid to woo the City over the past year.
A few proposals hint that a fresh slew of regulation could be on the way: changes to employment rights and zero-hour contracts, more security measures at performance venues, more rules on AI and a rethink on the way sports clubs are structured.
But all of these measures feel more like tinkering and will surely be dwarfed by a subject of greater economic heft: planning reform. Labour has said that “planning decisions for major infrastructure will now be made nationally rather than locally to stop projects being tied up in years of red tape.” It is no understatement to say that this could be the single most consequential reform that the government makes over the next five years.
Levelling-up Secretary Angela Rayner has already signalled her preparedness to get stuck in, last week unveiling a review into two proposals to build data centres in London’s commuter belt which had been blocked by local authorities.
Overturning these two planning decisions alone could be worth several billion pounds to the UK economy. Add up various major projects dotted across the country and it is easy to see how this could run into the hundreds of billions of pounds. The British Private Equity and Venture Capital Association reckons there is some £145 billion in private capital ‘dry powder’ ready to be deployed over the next five years.
Big businesses say that when they choose where to build their next factory or plant, the tedious strictures of the planning system puts them off the UK. Let’s hope the new government chops these down to size and goes for growth.
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Here’s a summary of our top headlines from yesterday:
Nationwide poised to shove through several controversial measures at AGM, including plan to allow CEO and CFO 3x their salary in bonuses up from 1x now. Directors will push though deal to buy Virgin Money for £2.9bn without a member vote.
Rate cuts coming: Inflation at 2%, bang on target for second straight month, sets up Bank of England for September cut in interest rates.
HSBC hires CFO Georges Elhedery as new boss, a succession that may surprise the City.
Reckitt's baby formula sales to take hit after tornado hits warehouse.
Cirata, Formerly WANdisco, raises £5 million in fundraise after reputation dogged by revenue recognition scandal last year.
GitLab, a U.S. provider of cloud-based software development tools whose investors include Google parent Alphabet, is exploring a sale after attracting acquisition interest, according to Reuters.
