FTSE 100 Live: Shares higher as retail and mining rally, CBI boss Danker sacked
Shares in Marks & Spencer and Next have rallied during an upbeat start to the week for London stocks.
The FTSE 100 index stands 32.29 points higher at 7773.85, with miners including Glencore and Rio Tinto among others doing well after a positive end to Monday’s Wall Street session.
The renewed enthusiasm for UK-focused retail stocks followed a largely reassuring set of industry figures showing overall sales growth remained stable in March.
Next and B&Q owner Kingfisher rose by more than 2% in the FTSE 100, up 118p to 6496p and 7.1p to 252.8p respectively.
M&S shares also rallied to their highest point of the year, lifting another 4.1p to 166.7p during a strong session for the FTSE 250 index. The domestic-focused benchmark gained 0.8% or 153.39 points to 18,950.42, with kitchen supplier Howden Joinery among other stocks in demand after a rise of 17.8p to 670.4p.
The signs of UK economic resilience meant a strong session for the housebuilding sector, particularly in light of the IMF’s prediction for a return to pre-Covid low interest rates.
Taylor Wimpey gained 2.15p to 117.2p and Persimmon rose 24.9p to 1257.9p, with the latter boosted by analysts at Barclays ditching their “underweight” recommendation.
The stronger risk appetite follows Friday’s robust US labour market report, which eased recession jitters but increased the chances that the Federal Reserve will hike interest rates by another 0.25% next month.
Tomorrow’s inflation print will go some way to determining the central bank’s next move, with economists looking for a rate of 5.2% in March as last year’s surge in energy prices after Russia’s invasion of Ukraine drops out of annual comparisons.
First quarter results from US banks including Citigroup and JP Morgan are also likely to have a big bearing on market sentiment later this week.
Shares in Marks & Spencer and Next have rallied during an upbeat start to the week for London stocks.
The FTSE 100 index stands 32.29 points higher at 7773.85, with miners including Glencore and Rio Tinto among others doing well after a positive end to Monday’s Wall Street session.
The renewed enthusiasm for UK-focused retail stocks followed a largely reassuring set of industry figures showing overall sales growth remained stable in March.
Next and B&Q owner Kingfisher rose by more than 2% in the FTSE 100, up 118p to 6496p and 7.1p to 252.8p respectively.
M&S shares also rallied to their highest point of the year, lifting another 4.1p to 166.7p during a strong session for the FTSE 250 index. The domestic-focused benchmark gained 0.8% or 153.39 points to 18,950.42, with kitchen supplier Howden Joinery among other stocks in demand after a rise of 17.8p to 670.4p.
The signs of UK economic resilience meant a strong session for the housebuilding sector, particularly in light of the IMF’s prediction for a return to pre-Covid low interest rates.
Taylor Wimpey gained 2.15p to 117.2p and Persimmon rose 24.9p to 1257.9p, with the latter boosted by analysts at Barclays ditching their “underweight” recommendation.
The stronger risk appetite follows Friday’s robust US labour market report, which eased recession jitters but increased the chances that the Federal Reserve will hike interest rates by another 0.25% next month.
Tomorrow’s inflation print will go some way to determining the central bank’s next move, with economists looking for a rate of 5.2% in March as last year’s surge in energy prices after Russia’s invasion of Ukraine drops out of annual comparisons.
First quarter results from US banks including Citigroup and JP Morgan are also likely to have a big bearing on market sentiment later this week.
KKR to buy 30% stake in $1.4 billion FGS
Private equity firm KKR will buy a 30% stake in communications giant FGS Global from senior employees and major investors such as ad giant WPP.
The deal values the communications firm - formed out of a merger between Finsbury, the Glover Park Group and Hering Schuppener - at $1.4 billion.
WPP will remain a majority shareholder in FGS.
“WPP and FGS Global have built an exceptional communications advisory firm,” KKR partner Philipp Freise said. “Stakeholder engagement is a boardroom issue and we are today establishing a powerful strategic partnership between WPP and KKR to support FGS Global as they continue on their path to building an industry-defining global business.”
Private equity firm KKR will buy a 30% stake in communications giant FGS Global from senior employees and major investors such as ad giant WPP.
The deal values the communications firm - formed out of a merger between Finsbury, the Glover Park Group and Hering Schuppener - at $1.4 billion.
WPP will remain a majority shareholder in FGS.
“WPP and FGS Global have built an exceptional communications advisory firm,” KKR partner Philipp Freise said. “Stakeholder engagement is a boardroom issue and we are today establishing a powerful strategic partnership between WPP and KKR to support FGS Global as they continue on their path to building an industry-defining global business.”
City Comment
Today’s figures showing a dearth of new London stock market floats are plainly concerning.
Initial public offerings are deemed to be the heartbeat of the City, a sign that there’s action in the wider economy and that London retains its status as a reliable place for entrepreneurs seeking capital.
But some context here: for a start floats are down nearly everywhere. EY’s own figures show that global IPO volumes fell 45% year-on-year in 2022 (and deal values by 61%).
So while there’s irritation that the City’s listing reforms aren’t being pushed through fast enough, some of the concern is just Brits doing what we do best — talking ourselves down.
And we have short memories. Post-pandemic, floats were off the charts as cool-sounding businesses such as Darktrace and The Hut Group raised billions.
Mathew Moulding, founder of THG, later said he regretted taking his business public in London. So do we all chief — the stock is now 65p compared with an offer price of 500p.
In fact, tech floats raised £6.6 billion in 2021, most from investors now sitting on very burnt fingers and vowing that they won’t get fooled again. New floats aren’t always good.
If you look beneath the bonnet of the City, at private equity, at the insurance market, at law firms, they are all doing just fine.
Daily moves in the market and fresh stock market floats are sexy, they catch the eye. They are just a small part of what the Square Mile is about, and in the long run a bit of caution here and there always turns out to have been a good thing.
Today’s figures showing a dearth of new London stock market floats are plainly concerning.
Initial public offerings are deemed to be the heartbeat of the City, a sign that there’s action in the wider economy and that London retains its status as a reliable place for entrepreneurs seeking capital.
But some context here: for a start floats are down nearly everywhere. EY’s own figures show that global IPO volumes fell 45% year-on-year in 2022 (and deal values by 61%).
So while there’s irritation that the City’s listing reforms aren’t being pushed through fast enough, some of the concern is just Brits doing what we do best — talking ourselves down.
And we have short memories. Post-pandemic, floats were off the charts as cool-sounding businesses such as Darktrace and The Hut Group raised billions.
Mathew Moulding, founder of THG, later said he regretted taking his business public in London. So do we all chief — the stock is now 65p compared with an offer price of 500p.
In fact, tech floats raised £6.6 billion in 2021, most from investors now sitting on very burnt fingers and vowing that they won’t get fooled again. New floats aren’t always good.
If you look beneath the bonnet of the City, at private equity, at the insurance market, at law firms, they are all doing just fine.
Daily moves in the market and fresh stock market floats are sexy, they catch the eye. They are just a small part of what the Square Mile is about, and in the long run a bit of caution here and there always turns out to have been a good thing.
London will lose “to New York, Hong Kong and Shanghai for years to come” warn City bosses
City figures today warned that London is in danger of becoming a stock market backwater, with big floats now almost certainly heading to rival financial centres such as New York.
There has been concern for months that London shares are unattractive, being shunned by pension funds partly due to unhelpful regulation. A lack of floats has buffeted City revenues.
Alasdair Haynes at Aquis Exchange, a campaigner for reform said: “There is plenty of money waiting in the wings to invest in aspiring and innovative companies. Conditions have to be right. The threat of recession and penal inflation are unattractive to investors. Multi-billion IPOS are likely to be the domain of New York, Hong Kong and Shanghai in the years to come.”
City figures today warned that London is in danger of becoming a stock market backwater, with big floats now almost certainly heading to rival financial centres such as New York.
There has been concern for months that London shares are unattractive, being shunned by pension funds partly due to unhelpful regulation. A lack of floats has buffeted City revenues.
Alasdair Haynes at Aquis Exchange, a campaigner for reform said: “There is plenty of money waiting in the wings to invest in aspiring and innovative companies. Conditions have to be right. The threat of recession and penal inflation are unattractive to investors. Multi-billion IPOS are likely to be the domain of New York, Hong Kong and Shanghai in the years to come.”
CBI sacks Director General Tony Danker, appoints Rain Newton-Smith
The CBI has sacked director general Tony Danker with immediate effect following accusations of misconduct considered to be sexual harassment by a female employee.
He will be replaced by Rain Newton-Smith, former CBI Chief Economist and currently Managing Director, Strategy and Policy, Sustainability and ESG for Barclays.
It follows a string of complaints of misconduct reported at the CBI including an alleged rape and attempted sexual assault, according to reports in the Guardian.
The CBI said in a statement: “The allegations that have been made over recent weeks about the CBI have been devastating.
“While investigations continue into a number of these, it is already clear to all of us that there have been serious failings in how we have acted as an organisation. We must do better, and we must be better.”
The CBI has sacked director general Tony Danker with immediate effect following accusations of misconduct considered to be sexual harassment by a female employee.
He will be replaced by Rain Newton-Smith, former CBI Chief Economist and currently Managing Director, Strategy and Policy, Sustainability and ESG for Barclays.
It follows a string of complaints of misconduct reported at the CBI including an alleged rape and attempted sexual assault, according to reports in the Guardian.
The CBI said in a statement: “The allegations that have been made over recent weeks about the CBI have been devastating.
“While investigations continue into a number of these, it is already clear to all of us that there have been serious failings in how we have acted as an organisation. We must do better, and we must be better.”
March administrations highest since pandemic first hit
The number of companies entering administration in March hit 130, the highest figure since the Covid-19 pandemic hit.
New figures from advisory firm Kroll showed that the rise in administrations continued into March, hitting the highest level since March of 2020 when lockdowns made trading impossible for many firms.
In Q1 of 2023, meanwhile, the number of administrations hit 288, up 34% year-on-year.
Construction and manufacturing were the sectors with the most administrations in Q1.
The number of companies entering administration in March hit 130, the highest figure since the Covid-19 pandemic hit.
New figures from advisory firm Kroll showed that the rise in administrations continued into March, hitting the highest level since March of 2020 when lockdowns made trading impossible for many firms.
In Q1 of 2023, meanwhile, the number of administrations hit 288, up 34% year-on-year.
Construction and manufacturing were the sectors with the most administrations in Q1.
Cineworld court fillings warn it may not be able to stay afloat through restructuring period
New Cineworld bankruptcy documents reveal that it may not remain in business long enough to make it out of Chapter 11.
Cineworld filed for Chapter 11 bankruptcy protection last year, and looked set to exit after agreeing a deal with its creditors, allowing them to take full control of the business with shareholders getting wiped out.
This set a path for the cinema chain to exit bankruptcy proceedings, which it hopes to do in the first half of this year.
Documents filed today in a Texas bankruptcy court, though, revealed that Cineworld could not guarantee that it could stay alive until the plan is complete and it can exit Chapter 11.
New Cineworld bankruptcy documents reveal that it may not remain in business long enough to make it out of Chapter 11.
Cineworld filed for Chapter 11 bankruptcy protection last year, and looked set to exit after agreeing a deal with its creditors, allowing them to take full control of the business with shareholders getting wiped out.
This set a path for the cinema chain to exit bankruptcy proceedings, which it hopes to do in the first half of this year.
Documents filed today in a Texas bankruptcy court, though, revealed that Cineworld could not guarantee that it could stay alive until the plan is complete and it can exit Chapter 11.
Strong start to week for UK shares, M&S up 3%
The FTSE 100 index is 0.7% or 54.90 points higher at 7796.48, with UK-focused stocks at the forefront of the strong session.
Leading risers include housebuilder Persimmon after a 3% or 31.5p gain to 1264.5p, while supermarket Tesco is up 2.75p to 266.85p and Lloyds Banking Group has improved 0.7p to 49.7p.
The domestic-led FTSE 250 index added 0.65% or 124 points to 18,921.96, with Marks & Spencer among those doing well after a rise of 3% or 4.2p to 166.8p.
The FTSE 100 index is 0.7% or 54.90 points higher at 7796.48, with UK-focused stocks at the forefront of the strong session.
Leading risers include housebuilder Persimmon after a 3% or 31.5p gain to 1264.5p, while supermarket Tesco is up 2.75p to 266.85p and Lloyds Banking Group has improved 0.7p to 49.7p.
The domestic-led FTSE 250 index added 0.65% or 124 points to 18,921.96, with Marks & Spencer among those doing well after a rise of 3% or 4.2p to 166.8p.
MJ Hudson warns its shares will soon have little value as it sells remaining business
Troubled consultancy MJ Hudson has agreed to sell “substantially all” of its remaining business after a dispute with auditors led to a collapse in its share price in recent months, and warned its shares woould soon have little to no vallue.
The group - which employed 300 people and had 18 FTSE 100 clients as of last year - will sell its data and analytics and business outsourcing divisions to the Apex Group for £40 million on a debt-free basis. It noted that the group had around £33.7 million in debt and that further funding will be required to pay its creditors.
“While there are a number of potential outcomes, given the level of creditors of the business expected at the point of final completion of the business outsourcing sale, it should be noted that it is highly unlikely that there will be a substantial, or any, amount available to shareholders following payment of all creditors and costs,” it said.
Troubled consultancy MJ Hudson has agreed to sell “substantially all” of its remaining business after a dispute with auditors led to a collapse in its share price in recent months, and warned its shares woould soon have little to no vallue.
The group - which employed 300 people and had 18 FTSE 100 clients as of last year - will sell its data and analytics and business outsourcing divisions to the Apex Group for £40 million on a debt-free basis. It noted that the group had around £33.7 million in debt and that further funding will be required to pay its creditors.
“While there are a number of potential outcomes, given the level of creditors of the business expected at the point of final completion of the business outsourcing sale, it should be noted that it is highly unlikely that there will be a substantial, or any, amount available to shareholders following payment of all creditors and costs,” it said.
ليست هناك تعليقات