Yahoo Finance FTSE 100 closes in on record high amid rate cut hopes
The FTSE 100 closed in on a record high on Friday amid growing hopes interest rate cuts are on the horizon as official data suggested Britain is out of recession.
Britain’s leading stocks rose to highs of 7,960 during trading, taking it within 55 points of the all-time high of just over 8,000 in February last year.
The rally was led by pensions firm Phoenix and followed by NatWest as the prospect of lower borrowing costs supported financial stocks.
It came as Fitch reaffirmed its existing credit rating for the UK and revised its outlook from negative to stable, in a sign of growing confidence in the economy.
Meanwhile, unexpectedly strong retail sales in February boosted hopes that Britain is already out of recession.
Shoppers bought the same amount of goods last month as in January, according to official figures, defying market predictions of a 0.4pc fall.
Meanwhile, the already strong sales figure for January was revised higher to 3.6pc, from 3.4pc. This is the highest figure since the reopening after lockdown in April 2021.
Heather Bovill, of the Office for National Statistics, said: “There was a growth in clothing, which rebounded after recent falls as people invested in the new season’s collections, as well as department stores. However, these were offset by falls in fuel sales, possibly affected by rising prices, and a reduction in food sales.”
Alex Kerr, of Capital Economics, said the better-than-anticipated sales volumes “provided further evidence that a rebound in retail activity, and perhaps the wider economic recovery is underway.”
He said: “The prospect of interest rate cuts and the boost to real household incomes from lower inflation and the 2p cut to national insurance in April suggest the recovery in real consumer spending will continue throughout this year.”
Andrew Bailey, the Bank of England’s Governor, on Thursday said interest rate cuts are “on the way” as inflation falls.
Consumer prices in February were up 3.6pc on the year, marking the smallest increase in almost two-and-a-half years and a significant step towards the Bank’s 2pc target.
Traders in financial markets expect the Bank to make the first cut from 5.25pc to 5pc in May or June.
Read the latest updates below.
06:19 PM GMT
That’s all for today...
Thanks for joining us on the live blog today. Join us again on Monday morning for the latest markets news - but in the meantime, do enjoy the rest of The Telegraph, including some of our latest business articles:
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06:13 PM GMT
Border Force staff at Heathrow Airport vote to strike
Border Force staff at Heathrow Airport have voted to strike in a dispute over shift patterns.
The Public and Commercial Services Union (PCS) said 600 of its members, who carry out immigration controls and passport checks, voted 90pc in favour of strikes.
No dates have been announced for any industrial action, but walkouts could begin as soon as April 8, said the union.
The PCS said its members are angry at planned alterations to their shift patterns that would have a detrimental effect on them and leave nearly 250 without a job on passport control.
If they refuse to accept the new contracts, they would be forced to seek jobs elsewhere in the Home Office, said the PCS.
PCS general secretary Fran Heathcote said:
Our hard-working members in the Border Force are being forced out by a belligerent employer.
The Home Office said:
As the public would expect, our priority is to keep our citizens safe and our borders secure.
We are working closely with Heathrow Airport and have robust plans in place to minimise any delays from planned strike action. We will deploy suitable resources to meet critical demand and support the flow of passengers and goods through our border.
06:00 PM GMT
Vauxhall owner Stellantis to cut US jobs
Stellantis, the carmaker which owns Vauxhall, Fiat and Jeep, has said it will lay off about 400 US workers as it seeks to cut costs, boost efficiency and ramp up electric-vehicle production plans.
It follows two offers of voluntary redundancy to US workers last year, including giving 6,400 US employees a financial incentive to depart in November.
The company said:
As the auto industry continues to face unprecedented uncertainties and heightened competitive pressures around the world, Stellantis continues to make the appropriate structural decisions across the enterprise to improve efficiency and optimise our cost structure.
Both Ford and General Motors have vowed further cost costs and cut some jobs over the last year.
05:54 PM GMT
FTSE 100 closes in on record high amid rate cut hopes
The FTSE 100 edged closer to an all-time high on Friday as investors continued to be buoyed by expectations that interest rate cuts are looming.
The index of the UK’s top 100 stocks hit highs of 7,960 during the day, but did not manage to surpass the 8,000 mark. It came within 55 points of its record.
Andrew Bailey on Thursday said interest rate cuts were “on the way” even as the Bank of England held borrowing costs at a 16-year high for the fifth meeting in a row.
It last reached a record in February last year amid hopes that the UK could skirt a recession and global central banks would halt interest rate hikes.
The FTSE 100 closed 48.37 points higher, or 0.6pc, to 7,930.92 on Friday.
Kathleen Brooks, research director at trading platform XTB, said: “The market rally this week was driven by news that central banks have shifted to a more dovish stance.
“At the Bank of England, Catherine Mann and Jonathan Haskel, the two remaining hawks at the Bank who had been voting for more rate hikes, changed their tune and opted for rates to remain on hold this month.
“The dovish shift in the Bank vote split is seen as a major step towards cutting rates later this year. The market now thinks that the first rate cut will come in June, and that there will be three rate cuts this year.”
Banking and finance stocks were among those helping to pull up the FTSE 100, as well as gains for consumer goods giants including Reckitt Benckiser.
05:54 PM GMT
Apple cuts jobs as it axes plans to design smartwatch displays in-house
Apple is ending a long-term project to develop its own smartwatch displays, according to a report.
Bloomberg said that an in-house R&D project to develop screens with microLED technology has been wound up.
The displays, which could have delivered deliver brighter, more vibrant images, would have been used on future Apple Watches.
Bloomberg said that the cost and complexity of the project ultimately proved too great, and Apple is now cutting dozens of roles working on the project in the US and Asia, according to its sources.
It follows its decision to cancel its self-driving car project.
Apple has been approached for comment.
05:18 PM GMT
Crowdfunded parking app taken over by Dallas rival
A British parking app with 13m registered users has been bought by an American rival after making a profit.
JustPark, which claims to be “the UK’s favourite parking app”, lets people pre-book parking spaces, including on private driveways.
Its founder, Anthony Eskinazi, pitched his idea on Dragon’s Den in 2007 but failed to gain investment.
Instead, the company built up over 15,000 retail investors after appealing to the public on the crowdfunding website Crowdfund.
It also won the backing of private equity firms BMW i Ventures, Index Ventures and LocalGlobe.
According to CrowdCube, the business raised £18.7m from 15,600 investors in crowdfunding between 2015 and 2017.
The buyer, ParkHub, which is based in Dallas, says the combined business will generate a over $1bn (£794m) in booking revenues.
04:55 PM GMT
FTSE 100 closes up
The FTSE 100 was up 0.61pc today. The biggest riser was pensions firm Phoenix, up 8.40pc, followed by NatWest, up 3.04pc. The biggest faller was JD Sports, down 6.28pc, followed by Ocado, down 1.76pc.
The FTSE 250 dipped a smidgeon by 0.09pc. The biggest riser was food manufacturer Bakkavor, up 3.48pc, followed by estate agent Savills, up 3.09pc. The biggest faller was cyber security company Darktrace, down 7.35pc, followed by JD Wetherspoon, down 6.34pc.
04:25 PM GMT
American shares dip as investors ‘take a breather’
American share indexes eased on Friday, but they remained on track for strong weekly gains as investors cheered the Federal Reserve’s rate-easing stance.
Both the S&P 500 and Dow Jones Industrial Average were set for their best weekly performance since mid-December, while the tech-heavy Nasdaq was set to notch its best week since mid-January.
Ross Mayfield, investment strategy analyst at Baird, said:
It’s been a strong week with some good macro drivers in the form of central bank dovishness.
Just a lack of catalyst today allows the market to take a breather, but nothing concerning.
Baylee Wakefield, multi-asset fund manager at Aviva, said “there might be some profit-taking” (i.e. investors selling shares to lock in their gains) as a result of “positive surprises”.
04:11 PM GMT
Strong retail sales raise hopes recession is over
Unexpectedly strong retail sales in February have boosted hopes that Britain is out of recession, writes Eir Nolsøe:
Shoppers bought the same amount of goods last month as in January, according to official figures, defying market predictions of a 0.4pc fall.
Meanwhile, the already strong sales figure for January was revised higher to 3.6pc, from 3.4pc. This is the highest figure since the reopening after lockdown in April 2021.
Heather Bovill, of the Office for National Statistics, said: “There was a growth in clothing, which rebounded after recent falls as people invested in the new season’s collections, as well as department stores. However, these were offset by falls in fuel sales, possibly affected by rising prices, and a reduction in food sales.”
Ms Bovill added that wet weather had depressed in-store sales at many shops, with the online market driven higher as a result.
It comes after a damp February, which broke records for rainfall in some parts of the country. Southern England received 239pc of its average rainfall, making it the wettest February since at least 1836.
In a sign that inflation is easing, the amount spent by shoppers fell slightly by 0.1pc despite people buying the same amount of goods.
The better-than-expected figure adds to growing evidence suggesting that the UK economy has started to recover after falling into a technical recession at the end of last year.
04:08 PM GMT
Wetherspoon shares dip despite profit lift
Shares in Wetherspoon dipped by nearly 8pc after after it released results for the six months to January 28. This was despite announcing higher profits. Our retail editor Hannah Boland has more:
Analysts at Langton Capital said there were questions over consumer spending holding up in the coming months, which could mean some bumps in the round. However, it said the company had “painted a picture of a long-term steady recovery”. Shares remain around 65pc higher than they did at the start of 2023.
Jefferies, meanwhile, said the low relative price and “well-located and well invested premises [means Wetherspoon] will gain market share and benefit from trading down”.
Wetherspoon suggested it could be poised for more openings across the country. Sir Tim said there was the potential for around 1,000 pubs across the UK compared to 814 pubs currently.
He said there was also scope for Wetherspoon to expand existing pubs by adding gardens or taking space in adjacent buildings.
Sir Tim said he was anticipating a “reasonable outcome for the financial year”.
03:57 PM GMT
Market shows more confidence in June US rate cuts
Traders now see a 71pc chance of the first rate cut hitting in June, from 56pc at the start of this week, according to the CME’s FedWatch Tool.
It follows the US Federal Reserve signalling it was still on track for three interest-rate cuts this year, which helped fuel the main three US stock market indexes to reach fresh record closing highs yesterday.
Raffi Boyadjian, lead investment analyst at XM, said:
With summer rate cuts now becoming somewhat more certain and a further recovery in bond yields looking unlikely, policymakers have provided fresh impetus to the bull market.
03:43 PM GMT
Government considers ex-Sainsbury’s and Tesco executive to chair Post Office
The former property director of Sainsbury’s and Tesco has been interviewed for the role of interim chairman of the Post Office, according to a report by Sky.
Neil Sachdev, who currently chairs the Land Registry, is reportedly being considered by Kemi Badenoch, the Business Secretary, to chair the organisation.
Sky said that sources had indicated that the interim role could be converted to a permanent position.
Mr Sachdev has been approached for comment. The Department for Business and Trade declined to comment.
03:26 PM GMT
German football team criticised for lack of ‘patriotism’ as 70-year Adidas shirt deal ends
The German national football team has decided to drop Adidas as its kit supplier, ending the oldest deal of its kind in sport and sparking dismay in Berlin.
Germany’s economy minister Robert Habeck blasted the switch to US sportswear giant Nike for its lack of “patriotism,” adding he “can hardly imagine the Germany shirt without the three stripes”.
He said: “For me, Adidas and black-red-gold always belonged together.”
The collaboration between Adidas and the national team goes all the way back to the 1950s and Germany’s first World Cup success in 1954.
However, the DFB on Thursday said its partnership with Adidas - spanning more than 70 years and four World Cup triumphs - would stop at the end of 2026.
The shock announcement comes just a few months before Germany is set to host the men’s European football championships from June.
That’s all from me today. I’ll hand you over to my colleague Alex Singleton, who will keep you up to speed as you head towards the weekend.
03:07 PM GMT
Standard Life owner Phoenix to cut hundreds of jobs
Britain’s largest pension company is poised to cut hundreds of jobs as part of a new multi-million pound cost cutting drive.
Our reporter Adam Mawardi has the details:
Phoenix Group, which owns Standard Life, has unveiled plans to slash £250m in costs from the company’s balance sheet by 2026.
This includes a new target of saving £125m by simplifying Phoenix’s business and discontinuing unprofitable products.
Andy Briggs, chief executive of Phoenix Group, said: “There will be job cuts as part of this.”
Phoenix, which is the biggest gainer on the FTSE 100 today after announcing the cuts, historically has specialised in buying up old books of life insurance businesses that companies no longer want, which are closed to new customers.
However, the company in recent years has grown its open business arm, which offers long-term savings and retirement products to new customers.
Phoenix will move both divisions into a single operating structure under the revamp. The last cost-cutting drive is designed to allow Phoenix to grow faster by making its products simpler for customers. It will trim Phoenix’s current total costs base of £1.2bn.
02:48 PM GMT
Trump secures £2.8bn lifeline from deal to float Truth Social
Donald Trump is due to be handed a $3.5bn (£2.8bn) windfall as the Republican presidential contender faces a looming deadline to pay a huge legal bill, after his social media company passed the final obstacle to a Wall Street listing.
Our technology editor James Titcomb has the details:
Shareholders in Digital World Acquisition Corp, a listed cash shell, today voted to approve a merger with Trump Media & Technology Group (TMTG), the company behind Mr Trump’s social network Truth Social.
It means TMTG will join the Nasdaq exchange as early as next week. Mr Trump will own a majority of the combined company with a stake worth around $3.5bn.
Mr Trump has until Monday to pay a $454m bond to a New York civil fraud case and authorities could seize his assets if he does not pay. He must pay the bond as he seeks to appeal a ruling that he fraudulently inflated the value of his assets.
While he would not be able to sell his shares for six months, the merger of TMTG and Digital World may buttress Mr Trump’s finances.
The merger had faced late hurdles amid uncertainty over whether Arc Global Investments, Digital World’s largest shareholder, would support the deal. But Digital World secured enough support in a shareholder meeting on Friday.
Shares in Digital World have surged by 145pc this year, a phenomenon believed to be in part due to Mr Trump’s voters buying up the shares as a show of support.
02:32 PM GMT
Michelle Mone PPE company at risk of being shut down by her former lawyers
A PPE supplier with links to Baroness Mone is at risk of being shut down after it was hit with a winding-up petition from its former lawyers.
Luke Barr has the details:
Lewis Silkin has launched a legal claim against PPE Medpro, the company that was awarded lucrative contracts during the pandemic and is now being investigated by the National Crime Agency (NCA).
The City firm previously represented PPE Medpro in a dispute with the Secretary of State for Health and Social Care over defective Covid equipment.
In that case, PPE Medpro has been accused of an alleged breach of contract over claims it provided products that were unfit for purpose, although the company has said it would “rigorously” defend the allegations.
The winding-up petition was filed against PPE Medpro in the High Court on Thursday, with the company now represented by Grosvenor Law.
Read how Lady Mone has been embroiled in controversy.
02:15 PM GMT
Tesla shares plunge as it reduces production in China
Tesla shares dropped in early trading after it reportedly reduced production at its plant in China amid sluggish growth in electric-vehicle sales.
The car maker led by Elon Musk earlier this month instructed employees at its Shanghai facility to lower production of both the Model Y and Model 3 by working five days a week instead of the usual six and a half days, according to Bloomberg News.
The company’s shares dropped as much as 3.8pc. It is already the worst performer in the S&P 500 this year.
It recorded a decline in shipments in the first two months of the year despite overall passenger-vehicle sales in China increasing 17pc from the same period a year ago.
01:52 PM GMT
Iceland sells hot cross buns with tick instead of cross
A supermarket has replaced the traditional hot cross bun decoration with a tick, sparking a backlash ahead of Easter.
Our reporter Alex Barton has the details:
Patrons have threatened to boycott Iceland after it ditched the cross, which is usually made from a flour paste, from some of its buns.
The supermarket is running the trial after research found a fifth of its customers would prefer the buns to have a tick, but the move has provoked anger among Christian groups.
Henrietta Blyth, the chief executive of the charity Open Doors, which works with persecuted Christians around the world, told MailOnline: “The cross is still of huge significance to millions of people in the UK, whether or not they attach meaning to if on a bun anymore.”
It comes amid a rise in novelty hot cross buns.
01:36 PM GMT
Wall Street takes a breather after record rally
The main US stock indexes were subdued at open but still on track for strong weekly gains, as investors cheered the Federal Reserve sticking to its rate-easing stance.
The Dow Jones Industrial Average was flat at the open to 39,774.06.
The S&P 500 was little changed at 5,242.48, while the Nasdaq Composite dropped 14.01 points, or 0.1pc, to 16,387.83.
01:34 PM GMT
Record fall in German house prices as gloom engulfs Europe’s biggest economy
Property prices in Germany have suffered a record fall, deepening the malaise gripping in Europe’s biggest economy.
Average house prices fell by 8.4pc across 2023, official figures show, marking the sharpest fall since Germany’s statistics office started keeping records at the start of the millennium.
The plunge marks the first annual decline in property prices since 2007. Prices have now been falling for more than a year.
Official data showed that property prices fell by 7.1pc in the final three months of 2023 compared to a year earlier. It represents a slight easing after an even sharper decline of 10.1pc in the third quarter.
The most severe housing market crisis in decades has come after the European Central Bank started aggressively raising interest rates from ultra-low levels.
Borrowing costs in the eurozone currently stand at a record high of 4pc, having risen from negative levels in 2022.
German families have also been hit by soaring living costs as wages have struggled to keep pace with high inflation. As a result, demand for housing plunged 37pc last year as fewer people could afford to buy.
01:18 PM GMT
Autonomy struck ‘handshake deals’ with customers to boost revenue, Mike Lynch trial hears
The British tech company Autonomy struck a series of “handshake deals” that involved paying customers to buy its software, a jury in a US fraud trial against the company’s founder Mike Lynch has heard.
Our technology editor James Titcomb has the details:
John Baiocco, an executive at the software company Capax, told a court in San Francisco that Autonomy agreed around 10 deals, worth millions of dollars, which involved the company paying its customers to buy its software.
Mr Lynch and Autonomy’s former finance director, Stephen Chamberlain, are on trial on fraud charges over the £7bn sale of Autonomy to the Silicon Valley giant Hewlett Packard in 2011.
US prosecutors have claimed executives at Autonomy inflated the company’s value with illegal accounting, charges that Mr Lynch and Mr Chamberlain deny.
Read what Mr Baiocco said about the “handshake deals”.
01:05 PM GMT
Gas prices rally amid bargain seeking
Wholesale gas prices are on track for a fourth consecutive weekly gain as the low cost of the fuel triggered bargain seeking.
Europe’s benchmark contract rose as much as 4pc, ending a two-day pullback, reversing declines since the start of the year as a mild winter left record stockpiles relatively untouched.
The recovery in Dutch front-month futures, which are trading above €27 per megawatt hour, comes as demand for liquified natural gas increased around the world as buyers tried to take advantage of the low prices.
Liquified natural gas imports to north-west Europe fell to its lowest level for the time of the year since 2019.
12:46 PM GMT
Will under-fire Ofcom really shut down GB News?
After repeated clashes over impartiality with regulators, GB News is under growing pressure to act.
Our reporter James Warrington has this analysis:
When Nigel Farage sat down with Donald Trump on GB News this week, he promised an exchange of “global significance”.
Yet for many viewers, the interview – filmed in a gilded room in the former US president’s Mar-a-Lago resort – was just the latest example of the cosy insider chats that have become a fixture of the opinionated news channel.
Since its inception in 2021, GB News has repeatedly come under scrutiny for its use of politicians as presenters. Now, that practice appears to be catching up with it.
Ofcom this week found the startup channel had breached broadcasting rules in five programmes hosted by Tory MPs including Sir Jacob Rees-Mogg.
Read how the broadcaster has been put “on notice”.
12:16 PM GMT
Santander boss predicts bank will beat record profits
Santander has said it expects to beat its record high 2023 earnings this year, as it plans to hand out more than €6bn (£5.2bn) to shareholders.
The Spain-based Banco Santander group said it was in the midst of transforming to become a “digital bank with branches”.
The update is being given to investors during its annual general meeting in Madrid.
The bank said it is on track to meet its 2024 targets, having added two million customers this year which is set to boost its income by about 10pc over the first quarter, compared with last year.
It comes after a bumper 2023 for the group which posted a record €11.1bn (£9.5bn) profit, helped by higher interest rates which have pushed up the cost of borrowing.
It resulted in a record amount returned to shareholders through dividends and share buybacks of €5.5bn (£4.7bn).
But Santander said it is confident it could beat that amount this year.
Banco Santander’s executive chairman Ana Botin said: “I am very confident that we will deliver a considerably better performance in 2024 than 2023, which was already a record year, and will meet our 2024 targets.”
11:58 AM GMT
Wall Street poised to slow after record-breaking rally
US stock indexes were subdued in premarket trading but still on track for strong weekly gains as investors cheered the Federal Reserve sticking to plan for three rate cuts this year.
All three main US indexes hit fresh record closing highs on Thursday as chip stocks rallied after Micron Technology’s upbeat forecast.
Traders now see a 70pc chance of the first rate cut hitting in June, from 56pc at the start of this week, according to the CME’s FedWatch Tool.
ING’s FX strategist Francesco Pesole said: “The Federal Reserve sent a rather clear message earlier this week: some resilience in activity data won’t be a barrier to cutting as long as inflation shows downward momentum.”
The blue-chip Dow ended Thursday less than 1pc away from the 40,000-mark for the first time. Along with the benchmark S&P 500, the Dow was on track to its best weekly performance so far this year.
Meanwhile, the tech-heavy Nasdaq was set to notch its best week since mid-January.
Ahead of the opening bell, the Dow Jones Industrial Average was flat, the S&P 500 was down 0.1pc and the Nasdaq 100 was 0.2pc lower.
11:38 AM GMT
LV returns to profit as pensioners seek annuities
Insurance giant LV said it had returned to profit as it kept costs steady last year and higher interest rates saw more customers switch to annuities.
The former friendly society said it had seen pre-tax earnings hit £107m in the year to the end of December, following a pre-tax loss of £145m the year before.
Chief executive David Hynam said fixed term annuities - which pay a regular income in retirement for a specific time - have seen “greater demand” as interest rates remain high.
That is “giving members the certainty they want in retirement”, he said.
LV returned £30m in bonuses to its members as operating expenses came in only slighly higher than the previous year at £109m in 2023.
Mr Hynam said: “Since 2011, we have shared member bonuses of £385m, reflecting our commitment to driving the success of LV so that it can be shared with our members.”.
He said that the company’s outlook “remains positive” and that it has “strong” foundations.
11:18 AM GMT
Russian grain exports face EU tariffs
The European Commission has proposed imposing tariffs on imports of grain from Russia and Belarus to limit Moscow’s ability to wreak havoc on the EU market.
The tariffs are also aimed at denying Russia revenue, because they will effectively suppress exports to the EU, the commission said.
Imports of cereals, oilseeds and derived products from Russia and its Belarus ally represent about 1pc of the overall size of the EU market, with domestic suppliers providing the bulk.
The Kremlin said that Russia has many alternative export markets for its grain other than the European Union.
Kremlin spokesman Dmitry Peskov said it would require the work of experts to determine whether Russia or the EU would suffer more from such restrictions.
11:07 AM GMT
Russia holds interest rates at 16pc
Russia has left its interest rates unchanged at 16pc for the second month in a row as it battles inflation caused by its war in Ukraine.
Drone attacks on energy and industrial infrastructure threatens to put up prices.
Traditionally affordable staples such as chicken may grow pricier as attacks continue on the Belgorod region, a major agricultural area that accounts for 14oc of all of Russia’s livestock and poultry production.
10:45 AM GMT
Bitcoin slumps 10pc from record highs
Bitcoin is on track for one of its worst weeks of the year as it drops more than 10pc from the record highs set earlier this month.
The world’s largest cryptocurrency has fallen more than 4pc this week and is down to $64,858 after hitting an all-time peak of $72,910.82 on March 13.
JP Morgan analysts said bitcoin “still looks overbought” as they predicted the digital token has further to fall before April’s highly-anticipated “halving” event, which will reduce the amount of the cryptocurrency that becomes available.
10:27 AM GMT
FTSE 100 approaches record high as interest rate cuts ‘on the way’
The FTSE 100 has moved closer to its record high set last year after the Bank of England signalled interest rate cuts are looming.
The UK’s blue-chip index gained as much as 1pc in morning trading to hit 7,959.57, putting it within 60 points of its all-time peak of 8,014.31 set in February 2023.
The indexis on track for its second consecutive week of gains, powered by a near 2pc rise on Thursday after the Bank of England said the economy is moving in the direction for interest rate cuts.
Governor Andrew Bailey said interest rate cuts are “on the way” as policymakers held borrowing costs at their 16-year highs of 5.25pc for a fifth straight meeting.
Traders were also boosted by better-than-expected retail sales figures for February, which dodged a predicted fall in a boost to hopes that the UK is moving out of its recession.
10:11 AM GMT
Oil falls after changes to interest rate outlook
Oil prices have edged lower for a third day as changes in the outlook for interest rates boosted the dollar.
Brent crude, the international benchmark, was fractionally down at less than $86 a barrel, having lost nearly 2pc over the previous two days. West Texas Intermediate was around $81.
It comes after the dollar was boosted by a shift in rhetoric from the Bank of England towards interest rate cuts and a surprise reduction in borrowing costs by the Swiss National Bank on Thursday.
A stronger dollar hurts the price of commodities, as it makes them more expensive. The dollar has strengthened even after the Federal Reserve signalled it plans to cut interest rates three times this year.
Han Zhong Liang, investment strategist at Standard Chartered, said: “We expect oil markets to remain tight in the short term, while geopolitical risks are also likely to create some bouts of volatility.”
09:58 AM GMT
Issa brothers switch off EV charging points at Asda in blow for shoppers
The billionaire Issa brothers have switched off more than a hundred electric car charging points across Asda stores in a blow to customers who want to plug in their vehicles while they shop.
Our retail editor Hannah Boland has the details:
New figures from the RAC reveal that Asda has slashed the number of electric vehicle chargers at its supermarkets by more than two thirds to just 46 devices over the past year. It had 165 devices at the start of 2023.
The reduction comes after the supermarket ended a partnership with electric vehicle (EV) charging company BP Pulse. Asda now has working EV chargers on just 2pc of its estates, or 22 shops.
Asda is the only supermarket to have slashed the number of active charging points it has, with others including Tesco and Morrisons investing heavily in the technology.
Read how it comes as Asda struggles under the weight of billions of pounds of debts.
09:39 AM GMT
German business confidence highest in 10 months
German bosses are much more confident than expected in a sign Europe’s largest economy could be heading out of the doldrums, according to a closely-watched survey.
The Ifo Institute’s business confidence index rose to 87.8 last month, ahead of estimates of 86 and its highest level since May last year.
Ifo President Clemens Fuest said: “The German economy glimpses light on the horizon.”
It comes after Europe’s largest economy probably fell into a recession at the end of last year, with the Bundesbank saying on Thursday that it thinks there was a contraction in the first quarter of 2024.
Good Morning from #Germany where the worst seems behind the economy. This is indicated by the Ifo Business Climate Index, which has jumped to 87.8 in March, highest level since June 2023 vs 86.0 expected. Current conditions rose to 88.1 in March from 86.9 in Feb, Ifo business… pic.twitter.com/05m57JHvRX
— Holger Zschaepitz (@Schuldensuehner) March 22, 2024
09:23 AM GMT
Pound falls to one-month low against dollar
The pound has slumped as the Bank of England shifted its rhetoric towards interest rate cuts.
Sterling has dropped 0.5pc below $1.26, having traded above $1.28 earlier this month.
It comes as money markets ramped up bets on interest rate cuts, with derivatives trades implying there is an 80pc chance of the Bank of England reducing borrowing costs by a quarter of a percentage point in June.
09:01 AM GMT
Hallmark: I’ve admired Aston Martin from afar
After the announcement he is joining Aston Martin, Adrian Hallmark said:
Like many working within the ultra-luxury segment, I have admired the continued transformation of Aston Martin’s brand and products from afar and feel honoured to have the opportunity to work with Lawrence, the board and the company’s employees to lead its next chapter.
The transformation of Aston Martin is one of the most exciting projects within the ultra-luxury automotive industry. I am looking forward to continuing the company’s great momentum and utilising my experience and passion to further unleash this iconic brand’s potential and take it to even greater success.
Referring to his departure from Bentley after six years, Mr Hallmark added:
Bentley has had a great influence on me. To redefine luxury mobility for the future with such a strong brand is a task that I took on with full commitment and great pleasure.
The time has now come for me to turn to new challenges. I would like to express warm thanks to the entire Bentley team for all that we have achieved together in the last few years.
08:58 AM GMT
Bentley wishes former boss well as he joins Aston Martin
Volkswagen Group’s Gernot Döllner, who chairman of Audi and responsible for the Progressive Brand Group, which includes Lamborghini, Bentley and Ducati, said:
Adrian Hallmark has achieved a great deal at Bentley. In his six years as chairman and CEO, he has made his mark on Bentley Motors, and along with his team in Crewe has successfully pushed ahead the development of the company.
On the path to carbon-neutral electric vehicles in the luxury segment, he has taken important steps towards the long-term success of the company.
I would like to thank Adrian Hallmark for his significant commitment over the last years and wish him well in his personal and professional future.
08:46 AM GMT
FTSE 100 rises amid hopes for interest rate cuts
The FTSE 100 inched up as investors lapped up the shift in tone from the Bank of England towards interest rate cuts.
The blue-chip index has gained 0.5pc in early trading and was set for its second consecutive week of gains.
It jumped nearly 2pc on Thursday after the Bank of England said that the economy is moving in the direction for interest rate cuts.
Meanwhile, the pound fell to its to its lowest so far this month after data showed UK consumer spending stagnated in February and Bank of England governor Andrew Bailey said rate cuts “were in play” this year.
Phoenix Group jumped 8pc to lead gains on the FTSE 100 after the insurer said it aimed to generate operating cash of £1.4bn and pay down £500m in debt by 2026.
Meanwhile, the mid-cap FTSE 250 index was flat as gains were limited by a 8.9pc fall in Darktrace.
The fall came as a technology growth fund advised by US private equity firm KKR fully exited its investment in the cybersecurity company.
08:35 AM GMT
Aston Martin poaches Bentley boss as chief executive
Aston Martin has poached the boss of Bentley to be its fourth chief executive in four years.
Adrian Hallmark took over as Bentley chief executive in 2018 and increased profits at the luxury car maker 10-fold in the past five years.
Bentley, which is owned by Volkswagen, announced the immediate departure of Mr Hallmark today, saying he is leaving “at his own request and by mutual consent”.
He will join Aston Martin in October, replacing 78-year-old former Ferarri chief executive Amedeo Felisa.
Executive chairman Lawrence Stroll said:
When Amedeo was appointed CEO, I spoke of him leading a new phase of growth and development. Two years on, we have delivered on that promise, as we near completion of our thrilling new product portfolio and move closer to our vision of becoming the world’s most desirable, ultra-luxury British performance brand.
I’d like to personally pay tribute to Amedeo, recognising not just what he has achieved at Aston Martin but throughout his long and distinguished career at the very top of the ultra-luxury automotive industry.
I am pleased that Amedeo will remain in post until Adrian joins and will continue to oversee the launch of our upcoming products, with our breathtaking line-up of new front engine sports cars a fitting legacy to his time leading the company and its product strategy. We look forward to celebrating Amedeo’s contribution to Aston Martin’s recent success before wishing him the very best.
In Adrian Hallmark, we are attracting one of the highest calibre leaders not just in our segment, but in the entire global automotive industry. Complementing our world-class leadership, Adrian will bring to Aston Martin unrivalled experience in both the ultra-luxury and British manufacturing sectors to progress our strategy and continue recent momentum.
Aston Martin shares have climbed 1.6pc in early trading but are down more than 56pc since July last year and by more than 90pc since 2019.
Investors have been worried about the company’s rising debt levels, which totalled £814m this year.
08:19 AM GMT
Aston Martin to hire Bentley boss as chief executive
Aston Martin is reportedly poised to poach the boss of Bentley to be its fourth chief executive in four years.
Adrian Hallmark took over as Bentley chief executive in 2018 and has increased profits at the luxury car maker 10-fold in the past five years.
Bentley, which is owned by Volkswagen, announced the immediate departure of Mr Hallmark today, saying he is leaving “at his own request and by mutual consent”.
It is expected that he will join Aston Martin later in the year, replacing 78-year-old former Ferarri chief executive Amedeo Felisa, according to the Financial Times.
08:09 AM GMT
FTSE 100 opens higher
The FTSE 100 has gained after the Governor of the Bank of England indicated that interest rate cuts are “on the way”.
The blue chip stock index rose 0.2pc to 7,899.95 while the midcap FTSE 250 was down 0.1pc to 19,731.11.
08:04 AM GMT
Wetherspoon profits surge as it moves past woes of lockdown
Pub chain JD Wetherspoon revealed profits rocketed last year as its chairman issued a swipe at the lockdowns that ravaged the hospitality industry during the pandemic.
The company’s pre-tax profits catapulted 682pc to £36m in the year to the end of January, compared to £4.6m in the previous 12 months.
Like-for-like sales jumped 7.4pc in its second full year of trading after lockdowns and were up 15.3pc compared to the same period in 2019.
It reduced the size of its pub estate,selling five pubs, terminating the lease of five pubs and subletting another three. This gave rise to a cash inflow of £3.8m.
Sir Tim Martin, the chairman, said: “The company continues to be concerned about the possibility of further lockdowns and about the efficacy of the government enquiry into the pandemic, which will not be concluded for several years.”
07:46 AM GMT
L&G abandons China expansion as economy stutters
Insurance giant Legal & General has reportedly abandoned plans to expand in China as the world’s second largest economy struggles.
The FTSE 100 company had been planning to apply for a licence from Beijing that would have allowed it to sell offshore products to Chinese investors, according to Reuters.
However, the British insurer, which has £1.2bn of assets under management around the world, has reportedly shelved the plan after cutting its local team from 10 to two people last month.
It comes as China’s economy battles with a deepening China’s property crisis, with house sales plunging and builders cutting back on new developments.
Meanwhile, overnight the yuan fell sharply to a four-month low and Chinese shares plunged.
It comes amid growing market expectations that Beijing needs to roll out more stimulus to stabilise the world’s second-largest economy
However, bank loan growth in China decelerated to its slowest pace on record in February.
07:42 AM GMT
Vodafone and Three bosses say phone market is ‘holding the UK back’
Vodafone and Three have said they will review the CMA’s concerns and will “engage constructively” with the regulator.
Vodafone UK chief executive officer Ahmed Essam said:
Having reached this important milestone, we look forward to working with the independent panel on the phase two process.
By merging our two companies, we will be able to invest £11bn to help the UK realise its ambitions to be a world leader in next-generation 5G technology and increase competition across the industry.
This transaction will create an operator with the scale required to take on BT/EE and Virgin Media-O2, give MVNOs (mobile virtual network operators) greater choice in the wholesale market and is in the wider interests of customers, competition and the country.
Three UK chief executive officer Robert Finnegan said: “The current market structure is holding the UK back, which is not good for customers or competition.
“By creating a third player with the necessary scale to invest, the combination of our two companies will deliver one of Europe’s most advanced networks and move the UK into the digital fast lane, benefiting customers from day one.”
07:39 AM GMT
Vodafone merger with Three to be investigated over fears it will drive up prices
The proposed merger between mobile networks Vodafone and Three could lead to “customers facing higher prices and reduced quality”, the competition watchdog has warned.
The £15bn merger was first announced last summer and would create the UK’s largest mobile phone network.
The Competition and Markets Authority (CMA) launched a formal phase one investigation into the move in January and said on Friday it has concerns over the impact of two of the UK’s four largest mobile firms merging.
Julie Bon, phase one decisionmaker for the case at the CMA, said:
Whilst Vodafone and Three have made a number of claims about how their deal is good for competition and investment, the CMA has not seen sufficient evidence to date to back these claims.
Our initial assessment of this deal has identified concerns which could lead to higher prices for customers and lower investment in UK mobile networks.
These warrant an in-depth investigation unless Vodafone and Three can come forward with solutions.
07:37 AM GMT
Retail sales recovery will continue this year, say economists.
Retail sales are showing signs of recovery as they came in higher than before the Black Friday and Christmas period, which boosts volumes.
Sales volumes were 1.5pc above their October level, suggesting “sales volumes have rebounded since the weakness in the second half of 2023,” according to Capital Economics.
It comes as GfK’s long-running consumer confidence index remained unchanged at minus 21, following a two-point dip in February, with expectations for the general economic situation over the next 12 months increasing by one point to minus 23, which was 17 points better than last March.
It showed confidence in personal finances for the year ahead saw an “encouraging” two-point rise to positive two, which was 23 points higher than this time last year.
Capital Economics assistant economist Alex Kerr said:
Looking ahead, the GfK measure of consumer confidence remained unchanged in March, which points to a 1.4pc quarter-on-quarter rise in sales volumes in the first quarter.
Moreover, the prospect of interest rate cuts and the boost to real household incomes from lower inflation and the 2p cut to national insurance in April suggest the recovery in real consumer spending will continue throughout this year.
07:24 AM GMT
Wet weather hits in-store sales, says ONS
Heather Bovill, head of surveys and economic indicators at the Office for National Statistics, said:
Retail sales were flat in February. There was growth in clothing, which rebounded after recent falls as people invested in the new season’s collections, as well as department stores.
However, these were offset by falls in fuel sales, possibly affected by rising prices, and a reduction in food sales.
Many shops told us that the wet weather hit in-store sales, with online instead seeing a boost.
Senior Statistician at ONS, Heather Bovill explains what the latest Retail Sales figures show us, and how the weather could have impacted this month's results ⬇️
Read the full release ➡️ https://t.co/HiyLeXIpdw pic.twitter.com/jllmhmhY9v— Office for National Statistics (ONS) (@ONS) March 22, 2024
07:20 AM GMT
Retail sales beat expectations as hopes grow for end of recession
Retail sales defied expectations in February and dodged a predicted fall, in a boost to hopes that the UK returned to growth in the first quarter of the year.
The volume of goods bought by shoppers last month flatlined at 0pc, ahead of market predictions of a 0.4pc fall.
Meanwhile, the already strong sales figure for January was revised higher to 3.6pc, from 3.4pc.
Heather Bovill, senior statistician at the Office for National Statistics, said: “There was a growth in clothing, which rebounded after recent falls as people invested in the new season’s collections, as well as department stores.However, these were offset by falls in fuel sales, possibly affected by rising prices, and a reduction in food sales.”
Ms Bovill also highlighted that many shops noted that the wet weather had depressed in-store sales, with online instead seeing a boost.
It comes after a damp February, which broke records for rainfall in some parts of the country.
In a sign that inflation is easing, the amount spent by shoppers fell slightly by 0.1pc despite people buying the same amount of goods.
The better-than-expected figure adds to growing evidence suggesting that the UK economy has started to recover after falling into a technical recession at the end of last year.
A closely watched survey of purchasing managers released on Thursday also suggested the UK grew by 0.25pc in the first three months of the year.
Retail sales saw no growth (0.0%) in February.
Sales increased in clothing and department stores as shoppers bought the new season's clothes, but these were offset by falling food and fuel sales, with prices at the pump rising.
➡️ https://t.co/HiyLeXIpdw pic.twitter.com/64AGFh0EQJ— Office for National Statistics (ONS) (@ONS) March 22, 2024
07:16 AM GMT
Good morning
Thanks for joining us. Retail sales came in better than expected last month in a sign Britain’s economy is moving out of recession.
Sales remained flat in February as food and fuel sellers saw a decline during the month, according to data from the Office for National Statistics (ONS).
However, economists had predicted sales to fall by 0.4pc, down from growth of 3.6pc the month before, the ONS said.
Online sales had grown during the month, especially for clothing, as last month’s wet weather pushed down the footfall of people heading out to the shops.
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What happened overnight
The yuan fell sharply and Chinese shares skidded, dragging down markets broadly in Asia and dampening an equity rally spurred by a surprise rate cut in Switzerland that had investors wagering on who will ease policy next.
Traders also were on high alert as the yen crept back toward multi-decade lows despite jawboning efforts from Japanese government officials to shore it up and the central bank’s historic policy pivot earlier this week.
China’s yuan weakened sharply to a four-month low and breached the psychologically important 7.2 per dollar level. It was last nearly 0.4pc lower at 7.2243.
The fall prompted the country’s major state-owned banks to sell dollars for yuan in an attempt to slow its decline, sources told Reuters.
The yuan has been pressured by growing market expectations that Beijing needs to roll out more stimulus to stabilise the world’s second-largest economy, and by the weaker yen. The state bank buying did little to soothe investors’ nerves.
The mainland blue-chip CSI300 index and Shanghai Composite index each fell 1pc, while Hong Kong’s Hang Seng Index slid 2pc.
Elsewhere, Tokyo’s key Nikkei index ended at another record on Friday after Wall Street stocks also hit fresh highs on optimism about the US economy and Fed policy.
The benchmark Nikkei 225 index was up 0.2pc, or 72.77 points, to end at 40,888.43, while the broader Topix index added 0.6pc, or 17.01 points, to 2,813.22.
In America, US stocks extended their push to record highs yesterday, led by big gains for chipmakers.
The S&P 500 rose 0.3pc, to 5,241.53, and set an all-time high for a third straight day. Three out of every four stocks in the index gained ground.
The Dow Jones Industrial Average gained 0.7pc, to 39,781.37, and the Nasdaq Composite rose 0.2pc, to 16,401.84. Both indexes added to records set a day earlier.
The yield on benchmark US 10-year Treasury bonds was down 0.2 basis points to 4.269pc.
