Yahoo Finance FTSE 100 Live 15 April: Index closes lower after approaching record, Goldman profit surprise, UK jobs in focus
Oil prices are lower amid a calm reaction by financial markets to events in the Middle East.
The FTSE 100 has slipped from record territory but Wall Street markets are pointing higher after Friday’s big sell-off.
In today’s corporate developments, car dealership business Inchcape has sold its UK arm while recruitment firm Page Group has posted an update.
UK unemployment highlights busy day tomorrow
Monday 15 April 2024 17:22 , Daniel O'Boyle
UK unemployment and wages data will be the most-watched release tomorrow, but there’s plenty else about:
Results
Billington
Gresham Tech
Next 15
Ashtead Technology
Trading updates
B&M
Robert Walters
QinetiQ
Petra Diamonds
Moneysupermarket
Oxford Instruments
LVMH
US Banks
Morgan Stanley
Bank of America
Economics
7am - UK employment (February)
Canada inflation
China GDP
City Comment: Take all but £100 out of your Nationwide account, say rebel members
Monday 15 April 2024 17:18 , Simon English
Have Nationwide members got a change of forcing a vote on the building society’s controversial £2.9 billion takeover of Virgin Money?
Absolutely not, say its highly paid advisers, which include Goldman Sachs. An organisation famous for its support of mutuality (clears throat, straightens tie).
The folks fighting for the vote are at least imaginative. Their latest wheeze is to ask supporters to withdraw all but £100 from their Nationwide deposit accounts.
FTSE 100 closes down 0.4%
Monday 15 April 2024 16:50 , Daniel O'Boyle
The FTSE 100 closed lower today at 7965.53, despite a brief moment above the 8000 mark.
London’s top flight was near a record close in the mid-afternoon, before falling as the US stock rally underwhelmed.
Fresnilllo and BP were among the top fallers, after big gains for both on Friday.
Take all but £100 out of your Nationwide account, say rebel members
Monday 15 April 2024 16:37 , Simon English
Have Nationwide members got a change of forcing a vote on the building society’s controversial £2.9 billion takeover of Virgin Money?
Absolutely not, say its highly paid advisers, which include Goldman Sachs. An organisation famous for its support of mutuality (clears throat, straightens tie).
The folks fighting for the vote are at least imaginative. Their latest wheeze is to ask supporters to withdraw all but £100 from their Nationwide deposit accounts.
That’s enough to leave them as members, but would put an awful lot of pressure on the board if enough people did it.
Campaign organiser, Mikael Armstrong, said:
“It’s clear from Nationwide’s response to the campaign that they don’t care about members’ legitimate concerns. They are not following the law and aren’t abiding by their own rules that are binding on the society. Management appear only motivated by greed and have lost touch with what keeps them in work - working for the benefit of their customers, the members and owners of the society. We therefore suggest supporters of the campaign hit them where it hurts most - their pockets.”
Nationwide has not responded to a request for comment.
Another question, and answer, from the rebel members:
Can members vote on the deal even though Nationwide board and management have so far ruled this out?
“Yes. The rules of the society stipulate that members can bring a Special General Meeting (SGM) provided enough members request this. Section 14 of the rules outlines the arrangements.
At a SGM, members can put forward a resolution to a vote of the members in attendance. The intention of the campaign is to call a SGM and pass a binding resolution at the meeting that states: “the takeover of Virgin Money must not proceed without the approval of a majority of Nationwide members.”
This would mean that if Nationwide wants to proceed with the takeover, it would need to hold a ballot of all eligible members. The deal could then only proceed if a majority of members support it.”
Whether they are right or not, Mr Armstrong and co are plainly an irritant to the board of Nationwide. Good.
Blackstone nears deal to buy former Britishvolt gigafactory site
Monday 15 April 2024 16:02 , Daniel O'Boyle
Private equity giant Blackstone is proposing to snap up the former site of collapsed firm Britishvolt in Northumberland, with plans to build one of Europe’s largest data centres.
The proposed deal by receivers will firmly end any faint prospect of an electric car battery factory being built on the site.
Britishvolt had proposed to build a £3.8 billion gigafactory on the site in Blyth, before the company collapsed early last year.
Market snapshot: FTSE 100 near record again
Monday 15 April 2024 15:00 , Daniel O'Boyle
Take a look at our latest market snapshot, as the FTSE 100 edges higher, and has records in sights again.
Goldman profits beat expectations
Monday 15 April 2024 14:25 , Daniel O'Boyle
Goldman Sachs’ profits jumped by 28%, beating expectations, as the US investment banking giant appears to be getting back on track.
The strong figures, following a solid Q4 last year, will help secure the job of under-fire boss David Solomon.
Net income came to $4.13 billion
Hometree pledges renewable energy boost after BlackRock deal
Monday 15 April 2024 14:08 , Daniel O'Boyle
Hometree, the London based energy firm, has secured funding from BlackRock to buy up renewable energy and heat pump installers.
Funds managed by BlackRock, the US investment giant run by Larry Fink, have committed £15 million to the project, an amount that could rise to £100 million, sources say.
Hometree says it aims to make heat pump installation, boiler care and replacement as easy as booking an Uber.
Tesla eyes major job cuts according to industry news site
Monday 15 April 2024 13:33 , Daniel O'Boyle
Elon Musk’s Tesla is bracing for a major round of layoffs after an industry website reported looming cuts, citing an email to staff from the state-of-the art electric car firm’s billionaire founder and chief executive.
Electrek reported that more than 10% of Tesla’s global workforce could go, after the firm has been preparing for a reduction in headcount for months. The news site said that the cuts could even reach a fifth of Tesla’s staff. Electrek quoted the email as saying:
“We have done a thorough review of the organization and made the difficult decision to reduce our headcount by more than 10% globally. There is nothing I hate more, but it must be done. This will enable us to be lean, innovative and hungry for the next growth phase cycle.”
Market snapshot: FTSE edges back
Monday 15 April 2024 13:12 , Daniel O'Boyle
The FTSE 100 is still down for the day, but has made mup much of its early losses
City Comment: Early interest rate cuts? Not until wage growth slows down
Monday 15 April 2024 12:51 , Daniel O'Boyle
The fog of war is making it particularly hard to read prospects for the economy at the moment.
Three key sets of UK figures — jobs, inflation and retail sales — should in theory clear some of that away this week, but I suspect that by Friday the outlook will be just as murky as ever.
If City scribes are right, the labour market will continue to soften, inflation will come down again, possibly to as low as 3%, and retail sales will be less than stellar.
Eighties riverside tower to be converted to luxury flats after £40 million sale
Monday 15 April 2024 11:56 , Daniel O'Boyle
An eighties riverside office block with some of the most spectacular views in central London is to be converted into luxury apartments after being sold for £40.8 million.
Westminster Tower on Albert Embankment and overlooking the Houses of Parliament is being bought by developer London Square from property investment company CLS.
The building comes with planning permission to create 25 apartments, three penthouses and recreation areas. It could be worth a total of £150 million when completed. The conversion will create three new storeys.
CLS boss Fredrik Widlund said: "We remain focused on having the highest quality, sustainable, modern offices in our locations. “
Inchcape still committed to London listing despite £346m UK retail arm sale
Monday 15 April 2024 11:05 , Daniel O'Boyle
Car distribution firm Inchcape reaffirmed its commitment to the London Stock Exchange even as it sold its UK dealerships to a US firm for £346 million, leaving it with no remaining British operations.
The firm sold its UK dealerships to focus on distribution - the step between the manufacturer and dealer, which includes marketing, pricing and warehouse management. These operations, it said, offer higher margins.
In the UK, the brands Inchcape works with, like BMW and Toyota, handle their own distribution. As a result, the business will now have no UK operations, instead mostly focused on emerging markets in Latin America and Asia.
€15bn CVC unveils Amsterdam IPO plans
Monday 15 April 2024 09:43 , Daniel O'Boyle
The private equity giant that owns Lipton Teas and a stake in the Six Nations revealed plans today for the biggest European IPO by valuation since 2022 in Amsterdam.
Luxembourg-based CVC plans to raise at least €1.25 billion in the float, which would value it at around €15 billion. That would make CVC the biggest company to IPO in Europe since Porsche in 2022.
The long-awaited listing has been repeatedly delayed as market uncertainty made IPOs rare. But mainland Europe’s IPO market has recovered this year, Swiss skincare firm Galderma listed last month at a €13 billion valuation, while Athens International Airport and perfume retailer Douglas AG are among the other multi-billion-euro firms to float. Galderma shares are up 17% since the float.
Market snapshot: FTSE 100 lower
Monday 15 April 2024 09:12 , Daniel O'Boyle
Take a look at the latest market snapshot as the FTSE 100 loses much of Friday’s gains.
Schillings launches global alliance to deal with "weaponised" reputation issues
Monday 15 April 2024 08:50 , Simon English
LONDON law firm Schillings today unveiled a “strategic alliance” with rivals in the US and Australia as it moves to offer clientsglobal access to reputation and privacy services.
City firm Schillings, known for advising some of the richest and most powerful people in the UK, is linking up with Clare Locke in Americaand Giles George in Australia.
Schillings said: “In a world in which reputation is being increasingly weaponised, this move comes as a coordinated response to the riseof complex and multifaceted reputational risks. Privacy threats, smear campaigns, and the spread of mis- and disinformation, demand ever-moresophisticated solutions.”
David Imison, Chief Executive of Schillings said: “When it comes to reputation, privacy and security, the stakes have never been higher.This new partnership will deliver an unrivalled set of global capabilities to our clients.”
The alliance is partly a response to what the firms called “polarised politics and media” which create “existential challenges” for clients.
Schillings launched a communications business in September 2023 to sit alongside its more traditional legal and security arms.
Oil stocks lead FTSE 100 lower, BAE and Rio Tinto rally
Monday 15 April 2024 08:42 , Graeme Evans
Shares in BP and Shell have given up some of their recent gains to stand 13.7p and 41p lower at 525.4p and 2896p respectively.
Other fallers in London’s top flight included Vodafone, which dropped 0.7p to 66.5p, and drinks group Diageo with a decline of 22.5p to 2761.5p.
The FTSE 100 index fell 31.99 points to 7963.59, despite BAE Systems and Rio Tinto offering support with gains of 6.5p to 1325p and 61p to 5436p respectively..
The FTSE 250 index fell 41.04 points to 19,680.20, but facilities management firm Mitie jumped 6% or 6.4p to 118p after its year-end update showed record revenues and operating profit.
Record £573m paid out in weather-related home insurance claims in 2023 – ABI
Monday 15 April 2024 08:14 , Daniel O'Boyle
Home insurance claims for weather-related damage reached a record £573 million last year, according to the Association of British Insurers (ABI).
This was over a third (36%) higher than in 2022, when the total was £421 million.
The rise was largely fuelled by the succession of storms, including Babet, Ciaran and Debi, according to the association, whose records on weather-related domestic claims go back to 2017.
Chair of B&Q owner Kingfisher is leaving
Monday 15 April 2024 08:01 , Michael Hunter
The chairman of Kingfisher, the owner of the B&Q home improvement chain, is leaving the job after seven years, it said today.
Andrew Cosslett “decided not to stand for re-election” the FTSE 100 firm, it said today.
He will go at the annual general meeting in June and will be replaced by Claudia Arney, an existing non-executive director.
Cosslett is a former chief executive of Intercontinental Hotels and has had a long run of major roles at big-name firms, including a 14-year career at Cadbury Schweppes, having also worked for Unilever. He was also CEO of Fitness First and has been chair of Rugby Football Union.
Kingfisher has issued a string of profit warnings,, caught up in a wider slowdown caused by slowing house markets amid rising interest rates. There is a link between people sprucing up their homes for sale and carrying out rennovations when they move and demand in the sector.
Cosslett said; “ I am proud to have been able to play my part and am delighted to now pass the baton onto Claudia whose skills and judgement will be key in ensuring the good progress continues. I leave the company with great confidence in its future.”
Claudia Arney said: “ look forward to continuing to support our great management team in our mission of making home improvement accessible to everyone.”
Recruitment firm Page Group says temporary jobs outperforming permanent hiring but both slow down
Monday 15 April 2024 07:46 , Michael Hunter
FTSE 250 recruitment firm Page Group said today that temporary jobs remain more popular with hirers than permanent positions, as sentiment in the employment market “remains subdued”.
The conditions come “as candidate and client sentiment remains subdued reflecting the general macro-economic uncertainty in most of our markets,” the £1.5 billion firm’s CEO Nicholas Kirk said.
He added that “permanent recruitment was more impacted than temporary across all of our markets, as clients continue to seek more flexible options.”
In the first quarter, group operating profit fell almost 13% to almost £220 million. The contribution from its UK operations was down by almost a fifth.
FTSE 100 seen lower, oil price steady amid Middle East worries
Monday 15 April 2024 07:29 , Graeme Evans
Oil prices are lower this morning but gold remains near a record following Iran’s drone attack on Israel..
Brent Crude fell 0.4% to $90.15 a barrel and gold stood at $2358 an ounce, a rise of 0.6%.
The pound, meanwhile, is below $1.25 at its lowest level since November after demand for the dollar picked up on geopolitical uncertainty and elevated US interest rate outlook.
The FTSE 100 index is forecast by IG Index to open about 30 points lower at 7965, having risen 0.9% in Friday’s session to within 20 points of a closing bell record.
The S&P 500 index fell by about 1.5% after a poor session for banks in the wake of first quarter results by JPMorgan and Citigroup.
The Nikkei 225 fell 0.9% this morning and the Hang Seng index is down by about 0.7%.
Inchcape sells UK retail arm
Monday 15 April 2024 07:29 , Daniel O'Boyle
Car dealership business Inchcape has agreed to sell its UK operations to US-based Group 1 Automotive, in the latest sign of outside interest in a London-listed car dealer’s operations.
The sale will allow Inchcape to focus solely on its distribution arm instead of retail car sales. It said that £100m of the proceeds will be returned to shareholders through a buyback and the rest used to invest in future growth.
Duncan Tait, Group Chief Executive of Inchcape, said: “As we continue to deliver on our strategic ambition of becoming the leading global distribution partner to our OEM partners worldwide, this transaction represents a significant step along that journey.
“Our UK Retail business is a high-quality business, with an experienced and high-performing management team, and has been an important part of the Group’s growth. With our active international expansion into higher value distribution activities, the strategic importance of the UK retail operations has become limited. The Board has therefore concluded it is the right time for a new owner to take this business forward.”
It comes after UK-listed dealership Lookers was bought last year, while Pendragon sold its dealerships arm to focus on tech.
Recap: Yesterday's top stories
Monday 15 April 2024 07:12 , Simon Hunt
Good morning from the Standard City desk.
Well, there was certainly a big dollop of of feelgood Friday around in the City at the end of last week. Perhaps it is the very long overdue arrival of proper spring weather.
Growth in February may only have been 0.1% but that did not stop the equity markets gambolling around like new-born lambs in a field.
The FTSE 100 finally got its act together to make that push through the 8000 mark and it seems only a matter of time before new all-time highs are set.
Even Grant Fitzner, the sobersides head of economics at the Office for National Statistics, was indulging in wild talk of “moderate optimism” about the outlook for growth over the next few months. Steady there, Grant.
Let’s hope, like the Spring sunshine, this is not all brought to an end by a return of chillier winds. There is a long way to go before economic summer can be declared, and this week has been a reminder of how fickle markets can be.
It is just two days since the Fed dismayed the doves with a worse than expected CPI inflation figures that sent the Dow into a tailspin and economists scrambling back to their desktop abacuses to recalibrate their interest rate forecasts.
Who knows what next week will bring? It is a big one for UK economics with inflation, jobs and retail data to be published between Tuesday and Friday. Consumers are starting to get slightly better off but until interest rates start to fall decisively — probably towards the end of the year and into 2025 — they will remain grumpy.
~
Here’s a summary of our top stories from Friday:
Oxford Street revival continues with huge new three storey NBA flagship near Oxford Circus
More than 1000 Nationwide members sign petition asking for a say on Virgin Money takeover
FCA warns motor insurers for flood of claims and complaints as biggest financial services consumer redress scandal since PPI looms
...And in City Spy...
