Yahoo Finance FTSE 100 Live: Blue-chips fall just short of 8000, but index sets another closing record
The FTSE 100 index has moved to the brink of the 8000 threshold amid more signs of economic resilience.
The UK’s unemployment rate today remained at 3.7% but figures showing the strongest wage growth outside the pandemic also fuelled fears that Bank of England interest rates will need to keep rising.
Meanwhile, holidays giant TUI today recorded a quarterly loss of 153 million euros (£135.3 million) but stuck to full-year guidance amid “encouraging booking momentum” across both winter and summer seasons.
Read more on the UK jobs market figures
FTSE 100 Live Tuesday
Wage growth fuels rate rise fears
FTSE 100 surges to new record
US inflation figures due later
Big morning for UK markets tomorrow with 8000 within reach
Tuesday 14 February 2023 16:45 , Daniel O'Boyle
With the FTSE within touching distance of 8000, the news that sends it over the top could easily be tomorrow morning.
After US inflation in January exceeded expectations, investors will be hoping to see a sharper decline in price rises in the UK when the ONS announces the latest Consumer Prices Index update.
Barclays will also kick off a week of financial results from top banks, which are expected to report combined profits of more than £40 billion.
Asset management giant Hargreaves Landsdown will also be among those reporting tomorrow.
FTSE closes at record 7954
Tuesday 14 February 2023 16:31 , Daniel O'Boyle
The FTSE 100 set a closing record for the fourth consecutive day, finishing today at 7954.
While the FTSE appeared to have a serious shot of breaching 8000 this morning, it fell just short with a peak of 7995.87 at 9:00 this morning.
A smaller-than-expected decline in US inflation meant the index of blue-chip companies dipped in the afternoon, but the end-of-day figure of 7954 was still higher than yesterday’s record close. The FTSE has now achieved a record-high cllose for four straight days.
FTSE approaches 8000 again as US stocks have strong start
Tuesday 14 February 2023 15:34 , Daniel O'Boyle
The FTSE 100 once again moved within 10 points of 8000, as US shares started the day strongly despite higher-than-expected inflation.
The S&P 500 is up 0.4% to 4151, while the Dow Jones ticked up slightly to 34298 and the Nasdaq grew by 0.4% to 11399.
That helped the FTSE recover from its afternoon dip, rising beyond 7990 as the close of trading approaches.
FTSE approaches 8000 again as US stocks have strong start
Tuesday 14 February 2023 15:31 , Daniel O'Boyle
The FTSE 100 once again moved within 10 points of 8000, as US shares started the day strongly despite higher-than-expected inflation.
The S&P 500 is up 0.4% to 4151, while the Dow Jones ticked up slightly to 34298 and the Nasdaq grew by 0.4% to 11399.
That helped the FTSE recover from its afternoon dip, rising beyond 7990 as the close of trading approaches.
FTSE dips after US inflation announcement
Tuesday 14 February 2023 14:31 , Daniel O'Boyle
The FTSE 100 has declined this afternoon after US inflation was higher than expected.
The Consumer Price Index came to 6.4%, down from 6.5% in December but above projections.
The smaller-than-expected fall increased the pressure on the US Federal Reserve headed by Jerome Powell to further increase US interest rates.
A lower figure may have pushed the FTSE above 8000, having been within 30 points of the threshold for almost the entire day. However, with inflation instead running higher than expected, the FTSE declined to 7955.58.
That figure, though, still means the index is on for a fourth consecutive record close.
US inflation comes in higher than expected
Tuesday 14 February 2023 13:36 , Daniel O'Boyle
Prices in the US were up 6.4% year-on-year in January, down from December but higher than economists predicted, the latest Consumer Price Index data has shown.
Prices rose 0.5% on a month-on-month basis, which was also above projections.
Economists at Deutsche Bank had expected a 0.4% month-on-month and 6.2% year-on-year increase in prices.
Core inflation - which excludes energy and food - was 5.6%.
Lost working days from last year’s strike action hits three-decade high
Tuesday 14 February 2023 13:17 , Daniel O'Boyle
The number of working days lost to strikes hit the highest level for over three decades last year, official statistics revealed on Tuesday.
Britain has suffered a wave of industrial action over the past 12 months with rail workers, postal workers and nurses walking out in disputes over pay fuelled by inflation and the cost of living crisis.
In its latest snapshot of the UK labour market, the Office for National Statistics (ONS) said nearly 2.5 million working days were lost to industrial action last year, the highest since 1989 when 4.1 million days were lost due to walkouts by rail workers and coal miners. The figure for December alone saw a near doubling from 467,000 to 843,000 days driven by striking transport, health and postal workers.
Darren Morgan, ONS director of economic statistics, said: “The number of working days lost to strikes rose again sharply in December. Transport and communications remained the most heavily affected areas, but this month there was also a large contribution from the health sector.”
Strikes are back, but it’s still not like the Eighties
Tuesday 14 February 2023 12:50 , Jonathan Prynn
Over the past winter it has felt that scarcely a day has gone by without one or other — and on bad days several — vital public services being hobbled by industrial action.
Today’s figures from the ONS show that days lost to labour disputes last year ran at their highest since 1989.
But we are not yet back to the days of prolonged labour strife of a generation ago, Jonathan Prynn writes in today’s City Comment.
All eyes on US inflation data
Tuesday 14 February 2023 11:43 , Daniel O'Boyle
Investors around the world will be paying close attention to the US Consumer Price Index, with January data to be released later today.
Year-on-year inflation is expected to decline to 6.2%, having been 6.5% in December. A larger-than-expected decline in inflation would likely encourage the Federal Reserve to take a more dovish approach to interest rates, while if price rises persist, further hikes may be in store.
With the FTSE 100 still hovering just below 8000, good news could push the index of top London-listed companies beyond a major milestone.
The January figures will be released at 1:30pm GMT.
Capital is star location for TV and film giants
Tuesday 14 February 2023 11:28 , Michael Hunter
London’s status as a major draw for the biggest names in TV and film was highlighted today by strong results from the production company behind a string of blockbuster hits including Apple TV+’s Slow Horses, which was shot across the capital at locations such as Regent’s Park and Smithfield Market.
Facilities by ADF said it expected annual revenue of over £30 million and earnings of almost £8 million from services such as providing the vehicles used on location by cast and crew. Its string of hits also included Netflix’s The Crown and the BBC crime drama hit Happy Valley.
The streaming wars between subscription TV giants Netflix, Apple+ and Disney have sparked a showbusiness boom in which London has often played a starring role. Facilities by ADF bought London-founded Location One in 2022 for an initial £6 million.
Vodafone jumps 4% on Liberty stake, FTSE 100 higher
Tuesday 14 February 2023 10:09 , Graeme Evans
Vodafone shares rose 4% today after Liberty Global, which owns half of Virgin Media 02 as well as stakes in ITV and Formula E racing, revealed it had spent £1.2 billion on a 4.9% holding.
Liberty’s boss Mike Fries called the move an “opportunistic and financial investment”, having seen Voda’s shares fall out of favour in the past couple of years. The US media company is not seeking a seat on the board or considering a takeover.
Investors heeded Liberty’s undervalued message today by snapping up shares in the blue-chip stock, which rallied 3.6p to 97.6p. Unloved Vodafone had been as low as 83p in December, the same month Nick Read was ousted as chief executive.
The stake-building triggered interest in other telecoms stocks today as BT Group jumped 4% or 4.9p to 139p and Airtel Africa lifted 2.2p to 126p.
The momentum came during an unexpectedly strong session for European markets as traders cheered the latest signs of economic resilience as well as the recent downward move for wholesale gas prices.
The FTSE 100 index, which closed last night at a record 7947, moved within four points of the 8000 threshold before settling 0.4% or 35.41 points stronger at 7983.01.
It was a similar story for the mid-cap FTSE 250 index, which improved 49.70 points to 20,174.22, thanks to strong performances by a number of UK-focused stocks.
Low-cost airline easyJet lifted 4% or 16.9p to 487.1p after Deutsche Bank said the UK’s improved outlook left the shares looking cheap. Replacing its “sell” recommendation with a buy rating, the bank upped its price target to 580p.
Shopping centre owner Hammerson and pubs chain JD Wetherspoon also featured on the risers board with gains of half a penny to 30.3p and 10.5p to 521.5p respectively.
Cineworld’s shares were also in demand, improving another 0.2p to 5.2p after takeover speculation yesterday sent the debt-laden cinema chain up 18%.
Is the trend of early retirement reversing?
Tuesday 14 February 2023 10:09 , Daniel O'Boyle
The tide of early retirement might finally be turning in the UK, according to today’s employment report.
Economist Simon French notes that inactivity for those aged between 50 and 64 dipped slightly in Q4 of 2022. However, it is still well above pre-pandemic levels.
FTSE continues to edge towards 8000
Tuesday 14 February 2023 09:22 , Daniel O'Boyle
The FTSE 100 edged towards 8000 this morning, but dipped again after getting within five points of the threshold.
The index hit an all-time high of 7995.87, within toching distance of a major milestone after repeatedly setting record highs in recent weeks.
However, a slight decline to 7980.57 means investors will have to wait a little longer - possibly until US inflation statistics are released later today - to see the FTSE finally break through the 8000 barrier.
FTSE 100 near 8000, upgrade boosts easyJet
Tuesday 14 February 2023 08:30 , Graeme Evans
A stronger-than-expected performance today pushed the FTSE 100 index to the brink of the 8000 threshold, with London’s top flight up 30.65 points to 7978.25.
Coca-Cola HBC led the rally with a gain of 4%, just ahead of a 3% rise for Flutter Entertainment as the gaming firm revealed it is looking at a potential US listing.
Vodafone shares added 0.8p to 94.8p after Denver-based Liberty Global last night revealed it has taken a near 5% stake in the mobile phone giant.
The domestic-focused FTSE 250 index rose 60.07 points to 20,184.59 after today’s employment and wage figures showed more signs of resilience for the UK economy.
TUI shares rose 5.05p to 176.25p after its first quarter results, while easyJet lifted 14.6p to 484.8p as Deutsche Bank switched from a sell to buy recommendation alongside a new price target of 580p.
Paddy Power owner Flutter considers US listing
Tuesday 14 February 2023 08:11 , Daniel O'Boyle
Paddy Power and Sky Bet parent company Flutter Entertainment will consult its shareholders on a possible US listing, as it continues to increase its focus on the American sports betting market.
The US has been a resounding success for Flutter in recent years. The Paddy Power owner acquired fantasy sports platform FanDuel for $158 million in 2018, just before a US Supreme Court ruling set the stage for states to rapidly legalise sports betting.
While other betting companies have struggled to turn a profit in the US as they buy expensive ad spots, FanDuel was the first US operator to be profitable and overtook PokerStars as Flutter’s biggest brand last year. By 2021, its value was more than 100 times Flutter’s initial purchase price.
Flutter said a secondary US listing - where it would trade on a US exchange but continue to have its shares primarily traded in London - would enhance its profile in the US and provide it with access to new US investors.
In addition, it said the US secondary listing could be a first step towards a primary listing, which would allow it to be a part of US stock indices such as the Dow Jones.
“The board appreciates that this is an important topic for shareholders and intends to consult extensively before deciding whether to put forward a formal resolution for approval,” Flutter’s board said.
Coca Cola HBC shares climb 4%
Tuesday 14 February 2023 08:09 , Simon Hunt
Shares in drinks bottler Coca Cola HBC climbed 4% to 2,020p after markets opened this morning.
The firm reported a 28% jump in reported net revenue to 9.2 billion euros. But net profits slid 24% to 415 million euros amid a surge in energy and input costs.
The company also said it took a 100 million euro impairment charge from a restructuring of its Russian entity in the first half of 2022. This cost was partially reversed in the second half of the year, bringing the net impairment for the year to just shy of 60 million euros.
FTSE 100 at record, US inflation key to progress
Tuesday 14 February 2023 07:50 , Graeme Evans
The FTSE 100 index posted a record close of 7947 last night, but further progress towards 8000 may have to wait until this afternoon’s US inflation figure.
Traders will be hoping further signs that inflationary pressures are easing will mean the Federal Reserve is able to relax its monetary policy approach after last year’s run of outsized interest rate hikes.
Deutsche Bank economists expect headline CPI to rise 0.4% in January, the fastest monthly pace since October.
However, the very strong inflation readings in the first half of last year mean that the year-on-year measure is expected to fall from 6.5% to the lowest figure since October 2021 at 6.2%.
Ahead of the release, CMC Markets expects the FTSE 100 to open four points higher at 7951.
Plus500 beats expectations as pandemic-era traders stick around
Tuesday 14 February 2023 07:44 , Daniel O'Boyle
Trading platform Plus500’s profits grew to $453.8m, as pandemic-era stock traders stuck around in 2022.
Plus500 noted that this figure was “well ahead” of consensus estimates from the start of the year.
Revenue came to $832.6m, up 16% from last year
The trading platform’s revenue and profit growth was largely due to customers who signed up during the pandemic sticking around, as 87% of its revenue on its core over-the-counter products came from traders who had been around for more than a year.
“Plus500 continues to outperform, delivering an excellent set of results in 2022, well ahead of market expectations at the beginning of the year,” chief executive David Zruia said. “Our performance was again driven by Plus500’s unique proprietary technology stack proposition, which underpins our on-going ability to attract and retain higher value customers over the long term.”
Wage growth surge fuels rates rise pressure
Tuesday 14 February 2023 07:28 , Graeme Evans
The inflationary pressures revealed in today’s official wage figures will force the Bank of England to consider a further 0.25% hike in interest rates at its meeting next month.
Growth in average total pay including bonuses was 5.9%, while annual growth in regular pay excluding bonuses was 6.7% in the October to December period for the strongest growth rate outside of the pandemic.
Total pay in real terms fell by 3.1% and 2.5% for regular pay, among the largest falls in growth since comparable records began in 2001.
ING economist James Smith said: “Backward revisions to UK regular pay growth help explain today's above consensus reading.
“Still, there's no sign here that wage growth is at a peak as some surveys have hinted. A quarter percentage point March rate hike looks likely.”
Record bookings at Tui as consumers seek sun
Tuesday 14 February 2023 07:27 , Simon English
TRAVEL GIANT Tui pared losses in the last six months and says booking are booming as German and UK holiday makers seek summer sun.
The Anglo-German business flew into trouble during Covid, like most of the industry. It took loans of e4 billion and was bailed out several times by the German government, money it has been seeking to pay back.
Today it said debts sit at e5.3 billion (£4.7 billion), up from e5.1 billion a year ago.
The better news is that sales are up by e1.4 billion to e3.8 billion (£3.4 billion) in the half year to December. The company still made a loss of e153 million, but that’s half as bad as last time. The travel sector normally makes losses in winter and the bulk of profits in the summer.
Sales are presently above pre-pandemic levels as consumers try to catch up on missed holidays. There have been record online booking days lately in both the UK and Germany.
Tui has recently lost its crown as the number one travel player in the UK to Jet2.
Sebastian Ebel took over as CEO last October, replacing Friedrich Joussen. He was previously CFO.
Amigo swerves £73 million fine as FCA concludes enforcement action
Tuesday 14 February 2023 07:25 , Simon Hunt
Amigo Loans has dodged paying a £73 million fine after the UK financial regulator found it was not in a position to pay it.
The fine was based on the Financial Conduct Authority’s investigation into failures in the group’s historic lending practices and complaints’ handling processes. The FCA “recognised that any penalty would cause Amigo serious financial hardship and would have threatened the Company’s ability to meet its commitments to redress creditors,” Amigo said.
Danny Malone, Chief Executive of Amigo, said: “I would like to apologise again to any customers impacted for the past failings in lending practises that occurred during the period 2018-2020.
“As a new Board and management team, we fully accept the lessons that needed to be learnt for the future and our focus remains on rebuilding a business that delivers better outcomes for customers, backed by stronger lending controls and a better culture.”
Recap: Yesterday’s top stories
Tuesday 14 February 2023 06:50 , Simon Hunt
Good morning. Here’s a summary of our top stories from yesterday:
The billionaire Playtech founder and owner of Camden Market, Teddy Sagi, has bid to acquire the remainder of cybersecurity business Kape in a deal that values the company at £1.25 billion.
EY has resigned as the auditor of MJ Hudson having ‘lost trust and confidence’ in management.
Heathrow Airport is “back to its best” having recorded the busiest start to the year since before the pandemic, with more than 5.4 million passengers travelling through in January.
A skills crisis has seen 65% of London firms struggling to fill vacant posts.
Lower income brackets have to commute as top earners work from home, a new study by the Office for National Statistics has found.
Mulberry packs its bags and exits Bond Street after suffering from the loss of tax-free shopping for foreign tourists.
