Yahoo Finance FTSE 100 Live: Index closes above 8,000, Centrica profits top £3 billion, RELX results
FTSE closes above 8000 for first time
Thursday 16 February 2023 16:39 , Daniel O'Boyle
The FTSE 100 finished the day at 8012.53, a sixth consecutive end-of-day record and the first time it closed above 8000.
After crossing 8000 for the first time yesterday, the index started the day strongly, powering past 8000 to peak at 8,044.99, a new record.
However, slow afternoon trading amid higher-than-expected US producer price inflation send the FTSE below 8000, before a late rally took it back over the milestone.
Yesterday, the FTSE closed at 7997.83.
Krept: ‘Don’t be afraid to pitch your business to anyone’
Thursday 16 February 2023 16:25 , Lucy Tobin
As one half of hip-hop duo Krept & Konan, rap star Krept is best known for tracks like Don’t Waste My Time — and it’s a mantra the entrepreneur has taken into his business life. Alongside selling out the O2 Arena, Krept’s start-ups include Croydon restaurant Crepes & Cones, and a skincare range for infants, Nala’s Baby.
Krept says he learnt to hustle growing up on a council estate in Gipsy Hill, where he sold supermarket drinks, sweets and crisps in the playground to make money.
Now he and Sasha Ellese Gilbert, co-founder of Nala’s Baby, are tackling one of the toughest issues for founders right now — finding funding — at SME XPO, the Evening Standard’s two-day event for ambitious business founders and decision-makers in April.
Gambling firm 10Bet had no staff to review late-night harmful betting
Thursday 16 February 2023 15:53 , Daniel O'Boyle
Betting operator 10bet will pay a £620,000 regulatory settlement after the Gambling Commission, after an investigation found the company did not review alerts for potentially harmful gambling until it was too late.
The gambling regulator began a review of 10bet’s activities in September 2021. This review found that the business did not employ dedicated compliance staff to monitor safer gambling alerts overnight. Instead, customers who showed signs of harm late at night were “manually reviewed the following day”.
Irish hotel group targets Arsenal fans with new £44.3m property
Thursday 16 February 2023 15:38 , Daniel O'Boyle
Ireland’s largest hotel operator is to target football fans coming to London for Arsenal matches, having acquired a new hotel less than a mile away from the Emirates Stadium for £44.3 million.
Dalata Hotel Group - which owns the Maldron chain of hotels in Ireland - has acquired a property on the Seven Sisters Road from its developer Tide Development.
The property is Dalata’s 18th in the UK, but the first to carry the Maldron brand name.
FTSE back below 8000
Thursday 16 February 2023 15:13 , Daniel O'Boyle
The FTSE fell back bellow 8000 this afternoon, despite this morning’s strong start.
Early trading today suggested the FTSE may remain above 8000, but a dip after this morning’s US price data brought the index back below 8000.
The FTSE closed at 7997.83 yesterday, meaning its streak of record end-of-day figures could come to an end.
Producer price inflation increased by 6.0% in the 12 months to January, which - like the Consumer Price Index - was down from December but above expectations.
WeWork turns first profit since listing amid strong London recovery, but falls short of estimates
Thursday 16 February 2023 14:48 , Simon Hunt
New York-based office-sharing business WeWork has turned its first profit since its public listing in 2021 amid a recovery of its London office portfolio, but fell short of analyst estimates.
The firm said pre-tax earnings for the current quarter would be in the range of breakeven to a $25 million loss, a significant recovery from the $283 million loss it made a year ago.
But revenue for the three months to December came in at $848 million, below the $874 million estimated by City forecasters, according to Refinitiv data.
WeWork shares fell 6% to $1.63 in the minutes after the opening bell on Wall Street.
US stocks slide after stronger than expected producer price data
Thursday 16 February 2023 14:36 , Simon Hunt
Stocks slumped in the opening minutes of trade on Wall Street after stronger-than-expected producer price data raised fears of further interest rate rises by the Federal Reserve.
The Nasdaq Composite dropped 174.28 points, or 1.44%, to 11,896.31 at the opening bell, while the Dow Jones slid 0.40% and the S&P 500 opened lower 0.79%.
Producer price inflation increased 6.0%, lower than the 6.5% in December. Economists had forecast the PPI climbing 0.4% and rising 5.4% year-on-year.
Nestle reveals tumbling net profits as prices hiked for shoppers
Thursday 16 February 2023 12:48 , Simon Hunt
KitKat and Nescafe coffee maker Nestle has revealed its net profits tumbled by 45% as cost inflation led the global food and drink giant to hike up the prices of its products.
The Switzerland-headquartered company, which owns some of the world’s biggest food brands, said its net profits fell to 9.3 billion Swiss francs (£8.4 billion) in 2022, down from 16.9 billion Swiss francs (£15.2 billion) in 2021.
The decline comes despite the group pushing up the prices of its products by 8.2% throughout the year.
City voices: Why won’t Sunak act to save our car-makers from crashing?
Thursday 16 February 2023 12:04 , Daniel O'Boyle
“Ford is cutting one in five jobs in Britain”, “UK car production collapses to lowest for 66 years”, “Nissan warns costs must fall to make cars in the UK”, “Britishvolt hopes for last-minute rescue bid” …
These are all recent headlines.
With the British car trade facing oblivion, Chris Blackhurst writes that Rishi Sunak needs to do more than turn up to picture opportunities, don a hard hat, grin and utter platitudes.
Buybacks and record profits energise FTSE 100’s climb as investors chase income stocks
Thursday 16 February 2023 10:49 , Michael Hunter
More big payouts for shareholders and fresh profit records helped power the FTSE 100 above the 8000-points today, in a broad rally taking it higher than it has ever been.
The main London stock index added almost 50 points to 8045.0, a gain for the day of 0.6%. It entered the previously uncharted territory late in the previous session, but was unable to close there. Bumper earnings from the owner of British Gas and news of more upbeat earnings and share buybacks elsewhere kept investors buying.
Laith Khalaf, head of investment analysis at stockbroker AJ Bell, said: “The UK stock market is home to a lot of companies that pay dividends as part of their DNA, so it’s a great place for income-seekers.
“With growth looking thin on the ground in the coming year, investors may well be tempted by the one-in-the-hand of dividends compared to two-in-the-bush of capital gains.”
Centrica topped the leaderboard, with buyers undeterred by talk of windfall taxes and political outrage as its 2022 earnings tripled to a record over £3 billion, fuelled by high gas prices after Russia’s invasion of Ukraine. The stock added over 5p to 103.4p. It also pledged a £300 million payout for investors, on top of its existing £250 million buyback.
Standard Chartered, the London-listed bank focused on Asia, was up 14p to 743p after announcing plans to return £1 billion to investors alongside a 28% rise in profits of over $4 billion, helped by rising interest rates at central banks. The company has been at the centre of takeover speculation, with First Abu Dhabi Bank linked with a potential offer after a cooling off period following its recent decision not to proceed with a bid.
RELX, the business information group, gained 87p to 2535p on plans to payout £800 million after its profit rose 15% to £2.7 billion. The gains came after the company’s pivot to more sophisticated analytical and decision making tools.
Indivior, the FTSE 250 pharmaceutical company, slumped 252p to 1702p after it swung to a loss of $95 million for 2022 after earmarking $290 million to pay for litigation in the US over allegations it sought to delay competitors to its best-selling drug Suboxone, used to treat addiction.
FTSE 100 races past 8000 -- more to come
Thursday 16 February 2023 10:18 , Simon English
THE FTSE 100 powered through the historically significant 8000 mark today as investors bet that the future for both the global economy, and the UK, may be far rosier than pessimists fear.
London’s premier share index briefly passed 8000 in late trading yesterday, but could not hold it.
But today the FTSE was up another 40 points at 8038, to yet another record high.
While many of the companies in the FTSE have big international arms and earnings in dollars, there was still a strong showing from companies that are solely or mostly UK affairs.
Ocado was up 13p to 648p, Next up 76p at 6891p, and BT added 2p to 140p.
The more clearly UK focussed FTSE 250 moved up 65 points to 20,2370, but remains well below 2021 highs.
It comes after another week of generally encouraging news with the Consumer Prices Index measure of inflation falling faster than expected to 10.1% in January. Investors now expect only one more hike in interest rates to a peak of 4.25%. GDP data last week also showed that the UK narrowly averted recession in the second half of last year and the Bank of England now thinks than any downturn this year will be shallower and shorter than previously feared during the post mini-Budget chaos of last Autumn,
Housebuilder MJ Gleeson hails recovery in reservations
Thursday 16 February 2023 10:17 , Simon Hunt
A January bounceback in reservation rates at affordable housebuilder MJ Gleeson came as the latest sign of from the turmoil caused by last year’s mini-Budget of the short-lived government of Liz Truss
It reported doubling in net reservations in the last four weeks, bouncing back from the lows seen before Christmas, although it added that they were below typical seasonal levels.
Gleeson cut its target for completions in the year ahead to a range between 1,650 and 1,850 homes as it reported half-year profit before tax of £16.1 million, down 35%. The average selling price rose 16% to £186,400.
Chief executive Graham Prothero told The Standard that leads, levels of visits to sites and website traffic was “massively up”, but there was a reluctance to reserve property.
“We’re not being confronted with customers challenged with affordability, it’s more about getting the confidence to convert,” he said.
“We are seeing the banks settling down and getting more competitive with each other again, which is good. We could do with the headlines getting a little bit more positive … the underlying data doesn’t support some of the more negative predictions that we see.”
‘We are here to steal your workers’: Londoners to be offered new life Down Under
Thursday 16 February 2023 10:04 , Michael Hunter
The Australians are coming to London – and they want to take Britons back with them to solve a shortage of key workers Down Under.
Teachers, police officers, nurses and doctors are among the targets of government officials from Western Australia who have over 30,000 job vacancies left open by a booming economy. And they are not shy about their intentions.
“We are here to steal your workers,” said Paul Papalia, the police and defence industry minister, who will lead a delegation that arrives in the UK on February 25.
Airbus delivers 661 aircraft in 2022
Thursday 16 February 2023 09:13 , Daniel O'Boyle
Airbus brought in €58.8 billion (£52.2 billion) in revenue for 2022, as travel continues to recover from the Covid-19 pandemic, but supply chain issues still hamper production.
The aerospace business sold 661 commercial aircraft during the year, up from 611 in 2021, despite what CEO Guillaume Faury called “an adverse operating environment that prevented our supply chain from recovering at the pace we expected”.
Pre-tax profit came to €5.6 billion, up 16% from last year. Following the results, Airbus upped its dividend to €1.80 per share.
In 2023, Airbus expects to deliver 720 commercial aircraft, which had been its initial target for 2022, and make a €6 billion profit..
Earlier this week, Air India announced it would purchase 250 Airbus planes in a deal worth more than £50 billion.
Airbus shares are up 2..3% so far today in Paris to €121.73.
Aldi to recruit another 400 staff in London
Thursday 16 February 2023 09:10 , Simon Hunt
Budget supermarket Aldi has said it is on the hunt for another 400 workers in London as its rapid expansion across the capital continues.
The German-owned firm said it is looking for people of all levels of experience to fill roles across the region, with salaries of up to £63,000.
The move is part of the firm’s wider national expansion plans, which will also see the recruitment of 540 new staff across 11 regional distribution centres.
Giles Hurley, Chief Executive Officer of Aldi UK, said: “Demand for Aldi has never been higher [and] it’s more important than ever that we are making it even easier for more people to shop with us – including by opening dozens of new stores.
“Our success is dependent on the amazing work that colleagues do, day in and day out, and we’re looking forward to welcoming thousands more colleagues to Team Aldi throughout 2023.”
Boohoo sets easier performance targets in plan that could net £50 million for boss
Thursday 16 February 2023 08:30 , Daniel O'Boyle
Fast fashion brand Boohoo has launched a new performance plan for its senior management team, after determining its previous incentive targets were so hard to reach that the plan had “no value”.
Boohoo - which appointed Molly-Mae Hague as the creative director of its PrettyLittleThing brand in 2021 - has seen its share price halved in the last year, opening at 45.6p today. Shares are down 88.5% since hitting an all-time high in June 2020.
As a result of this decline, Boohoo said its existing incentive plan for management had “no value”, as its targets had become too hard to reach. In its 2020 management incentive plan, shares had to reach at least 500p, more than 10 times their current level, for any incentives to be granted.
Under the new plan, management can receive rewards if Boohoo shares hit 95p, with further incentives up to 395p per share.
If shares hit 395p, the total value of the plan will be £175 million, with CEO John Lyttle receiving £50 million.
‘Serious issues’ for Home REIT as company explores putting itself up for sale
Thursday 16 February 2023 08:20 , Simon Hunt
Further signs of the precarious state of Home REIT emerged this morning after the firm warned of ‘serious issues’ facing its future and said it was exploring putting itself up for sale.
The property company, which provides sheltered housing for homeless people said it had identified ‘serious challenges in rent collection’ for December 2022 and January 2023, with only 23% of rent collected in the the quarter ending November 2022.
More than two-thirds of Home REIT’s portfolio is in need of refurbishing, the company warned.
Lynne Fennah, Chair of the Board, said: “We recognise the serious issues facing the Company and are examining all options to preserve shareholder value, and the interests of all stakeholders.”
FTSE 100 opens above 8,000 points in broad rally led by Centrica after record profits
Thursday 16 February 2023 08:08 , Michael Hunter
London’s FTSE 100 broke back above the 8000 points mark in opening trade have passed the milestone for the first time during the previous session, before slipping below it by the close.
Centrica, the owner of British Gas, led a broad rally as the index added 34 points to 8032.0, a rise of 0.4%.
Shares in the energy company were up over 5p to 103.4p, making it the biggest gainer in percentage terms, up 5%. Bumper profits and a £1 billion payout to shareholders helped Standard Chartered rally 11p to 740p, up 2%.
“Tough macroeconomic climate” could boost MoneySupermarket in 2023
Thursday 16 February 2023 07:48 , Daniel O'Boyle
MoneySupermarket is preparing for the increased business that a “tough macroeconomic climate” will bring, after revenue and profit grew in 2022.
The price comparison company’s revenue was up by 22% to £387.6m thanks to “strong performance in money and travel channels”.
Insurance was MoneySupermarket’s largest source of revenue, thanks to “improving trends in market switching volumes” within car insurance. Travel was the fastest-growing segment, but revenue here was still only around half of pre-pandemic levels.
Pay boom for CEO at Standard Chartered
Thursday 16 February 2023 07:36 , Simon English
Standard Chartered, the Asian focussed City bank, today unveiled a new $1bn share buyback as profits jump 15% to $4.8bn.
CEO Bill Winters sees pay rise from £4.7 million to £5.3 billion for the year, while CFO Andy Halford also did well, up by £400,000 to £3.4 million.
Winters said: “We continue to make significant progress against the five strategic actions outlined last year, and we remain confident in the delivery of our financial targets. We are upgrading our expectations, and are now targeting a return on tangible equity approaching 10% in 2023, to exceed 11% in 2024, and to continue to grow thereafter”.
RELX earnings jump amid strong sales of analytics tools
Thursday 16 February 2023 07:30 , Simon Hunt
FTSE 100 IT business RELX reported a better-than-expected 10% jump in earnings to 102p amid strong sales of its analytics software.
The firm is proposing a full year dividend of 54.6p per share, an increase of 10%.
RELX spent £443 million completing nine acquisitions in the year.
Chief Executive Officer, Erik Engstrom, said: “The improving long-term growth trajectory is being driven by the ongoing shift in our business mix towards higher growth analytics and decision tools that deliver enhanced value to our customers across market segments.”
Centrica profits top £3 billion as British Gas owner breaks earnings record
Thursday 16 February 2023 07:24 , Michael Hunter
Record profits at the parent company of British Gas will add to pressure for a windfall tax on the energy sector and highlight the controversy over the company’s use of pre-paid meters for vulnerable customers.
Soaring gas prices after Russia’s invasion of Ukraine helped annual profit more than triple to £3.3 billion for 2022, beating the previous record of £2.7 billion set in 2012.
FTSE 100 expected to push further above 8000 in opening trade
Thursday 16 February 2023 07:00 , Michael Hunter
London’s main stock market index is expected to make further progress above 8000 points in opening trade, with attention turning back to the energy sector, with annual earnings due out from Centrica, the parent of British Gas.
There is also corporate news due from Moneysupermarket.com, the price comparison website and RELX, the business information provider.
According to opening calls from CMC Markets, the FTSE 100 will rise 20 points to 8018, having slipped back under the 8000-point mark by the close of the previous session. It hit the milestone for the first time during Wednesday’s session. It was helped by a weaker pound and relief at a drop in core inflation data, that excludes the impact of food and energy costs.
Recap: Yesterday’s top stories
Thursday 16 February 2023 06:45 , Simon Hunt
Good morning. Here’s a summary of our top stories from yesterday.
The FTSE 100 crossed the 8000 barrier yesterday, after a strong afternoon session. The index of top London-listed companies has repeatedly broken records this month, after crossing 7900 on 3 February. It achieved end-of-day records on each of the previous four days of trading, and came within four points of 8000 on Tuesday.
Beleaguered airline Flybe will be wound down and its remaining 25 employees made redundant after administrators said the “complexities” of a sale prevented them from finding a way to save the ailing carrier.
Jes Staley, the Barclays CEO forced to stand down in the wake of investigations into his relationship with Jeffrey Epstein, got nearly £2.3m from the bank last year. Over his 12 month notice period he got £2 million in salary. There were also other benefits, such as pension and repatriation costs for moving back to the US.
Coming up today we have:
Final results from Relx
Final results from Centrica
Interim results for MJ Gleeson
US Jobless claims
