Yahoo Finance FTSE 100 Live 17 January: Gilt yields jump as blue-chips suffer worst trading day in months
Frasers' Asos ownership hits 25%
17:27 , Simon Hunt
Mike Ashley's Frasers Group now owns a quarter of Asos, new filings show.
The retailer upped its stake to 25% from 24% previously. It has been gradually buying up shares over recent months.
So far, Frasers has not indicated it plans a takeover of the firm.
Lenders including Santander continue to cut mortgage rates despite shock inflation rise
17:08 , Daniel O'Boyle
Lenders continued to announce cuts to their mortgage rates today, even as higher inflation means the Bank of England is less likely to cut its base rate soon, with Santander and Coventry Building Society among those reducing prices today.
Santander, one of the “big six” high street lenders, announced fixed rate reductions of up to 0.45%, coming into effect tomorrow. However, it also withdrew certain first-time buyer exclusive rates.
Elsewhere, Skipton and Coventry building societies cut rates as well.
FTSE closes down 1.5%
16:38 , Daniel O'Boyle
The FTSE 100 closed at 7,446.29, recovering some ground late in the day but still finishing down more than 100 points.
It was a 1.5% fall for London's top flight, the steepest of the year. The index is now down 275 points this year and at its lowest point since November.
A truncated risers list was led by IMI. rate-sensitive stocks like Ocado and Persimmon were among the fallers.
FTSE closes down 1.6%; bond yields jump most in nearly a year
16:38 , Simon Hunt
Today was a day of records -- not necessarily good ones.
The FTSE 100 closed down just shy of 1.6% lower, wiping nearly £40 billion from the exchange in one of its worst days in months.
That came on the back of an unexpected rise in inflation to 4% -- the first rise since February last year.
That news pushed up UK gilts, with the 10-year yield rising some 18 basis points, the single biggest daily jump since February.
Karim Fatehi MBE, Interim Chief Executive of the London Chamber of Commerce and Industry (LCCI), said: “The surprise rise in inflation for December 2023 will cause concern for many businesses that are already battling high operating costs, particularly in London. LCCI’s latest economic survey highlighted that inflation remains the number one concern for London businesses.
“The rise will likely cause consumers to tighten their purse strings in the first instance, which in turn will have a detrimental effect on the retail, hospitality, tourism, and travel sectors in London."
Here's a last look at your key market data:
Manchester United in profit warning because of early Champions League exit
14:51 , Daniel O'Boyle
Manchester United shares slipped in early trading in the US, after the club warned on profits because of its early Champions League exit.
The board of Man United said the club’s early exit from the Champions League proved costly. United were knocked out in the group stage, finishing bottom - meaning no Europa League football either - after conceding 15 goals in six games.
Missing out on the lucrative television revenue that comes with Champions League knockout matches, Manchester United’s underlying profits are now expected to be between £125 million and £150 million. They were previously expected to fall between £140 million and £165 million.
US stocks dip on rate prediction re-adjustment
14:38 , Simon Hunt
US shares joined the UK equities fall in the opening minutes of trade on Wall Street as investors recalibrated their rate cut expectations after stronger-than-expected retail sales.
The S&P 500 index fell by 0.68% while the Nasdaq sunk 1.5% after the opening bell.
Shares in JetBlue fell 3.1% and Spirit Airlines fell 15% after a merger deal between the two was blocked by a judge on competition grounds.
Elsewhere, shares in Charles Schwab fell around 7% after the investment bank missed earnings targets, while Manchester United shares fell by nearly 1% after the English club cut its earnings forecasts.
US retail sales rise fastest in three months
14:04 , Simon Hunt
US retail sales rose the fastest in three months in December, beating analyst expectations to grow 0.6%.
Car sales saw the strongest growth, rising 1.1%, while clothing, merchandise and e-commerce also performed well.
The figures suggest a solid performance by retailers in the run-up to Christmas, with robust consumer spending. The news prompted some investors to lower their rate cut expectations, prompting treasuries to fall.
Property investor appetite for warehouses forecast to improve after tough 2023
13:40 , Daniel O'Boyle
Warehouses were not immune from headwinds hurting commercial property last year, with the amount spent on UK industrial real estate down by 27% on pre-pandemic levels.
Property agent Cushman & Wakefield said the market has been impacted by higher debt costs and a "detachment" between buyers and sellers over acceptable pricing.
Transactions of warehouse properties totalled £6.4 billion in 2023 according to the firm's preliminary data, which is down from £14 billion in the prior 12 months and below the £8.8 billion pre-pandemic five-year average.
Lunchtime update: FTSE extends losses
13:03 , Simon Hunt
Midway through the day's trading session in London, blue-chip shares have fallen further still, with the index now down around 125 points to 7,433.
The FTSE 250 is down further too, dropping around 1.8%, while the euro has made gains against the pound.
Here's a look at your key market data.
City Comment: The 'Mortgage price war' might be coming to an abrupt halt
11:28 , Jonathan Prynn
What is really going on in the London housing market?
Today’s figures from the Land Registry were a bit of a shocker. The 6% fall in prices in the year to November is the sharpest annual rate of decline since August 2009, when the economy was still in the grip of the post-Lehman Brothers economic deep freeze.
Both October and November saw chunky monthly falls of above 2%, adding up to £26,000 slashed off the average price of a home in the capital in just 61 days.
Inflation figures are a 'wake-up call'
11:03 , Daniel O'Boyle
Victoria Clarke, UK chief economist at Santander CIB, said: “The rise in inflation delivers something of a wake-up call for investors who have been considering the BoE ‘home and dry’ on getting inflation sustainably back to target. The rise in services CPI provides a reminder that the underlying, more domestically driven elements of inflation could be slow to return to BoE policy-consistent rates.”
Service inflation 'will trouble Bank of England policymakers'
10:24 , Daniel O'Boyle
Danni Hewson, head of financial analysis at AJ Bell, says: ““People know prices are still rising, you can’t do your weekly shop without accepting that, but the moment at the checkout when the cashier tots up the damage had begun to feel a little less overwhelming.
“Even those who aren’t glued to the news on their phones throughout the day will have gleaned that the situation in the Red Sea is something that might have a tangible impact on everyday life.
“But that disruption wasn’t captured by these figures, other factors were at play in December.
“One is a UK quirk – the impact of increased duty on tobacco products created the lion’s share of last month’s hike.
“But it’s the uptick in service inflation which will trouble Bank of England policy makers.
“That’s the sticky bit that will make the last few percentage points harder to whittle away.
“The UK isn’t alone, other countries including the US have found themselves in the same situation, and it seems the path to that hoped for ‘soft landing’ will have a few detours.”
Prudential and Standard Chartered in FTSE 100 slump, Keller up 2%
10:21 , Graeme Evans
China’s economy added to the strain on global markets today as the Hang Seng index and London’s Asia-focused stocks endured heavy selling.
A fourth quarter GDP reading of 5.2% missed estimates while the country registered its weakest annual growth rate in three decades excluding pandemic years.
Hong Kong’s Hang Seng tumbled 3.7% and the Shanghai Composite by 2.1% amid no apparent respite from China’s property debt and consumer demand worries.
Asia’s sell-off exacerbated the higher-for-longer interest rate fears of US and European markets, with the FTSE 100 index down 1.6% or 124.47 points to 7,433.87.
Big fallers included insurer Prudential following a decline of 4% or 29.6p to 775.6p, while Standard Chartered lost 3% or 16.2p to its lowest level in a year at 573p.
The China sales focus of Aston Martin Lagonda meant the car maker reversed 7.2p to 190.3p, with Fidelity China Special Situations also 4% lower in the FTSE 250 index.
The mid-cap benchmark fell 1.8% or 355.57 points to 18,837.75, although there were some pockets of cheer for mid-cap investors.
They included ground engineer Keller, which rose 17p to 847p after forecasting 2023 profits significantly ahead of City hopes. The upgrade follows a much improved performance in North America.
Shares in construction firm Galliford Try rose 7p to a multi-year high of 248p as the All-Share company revealed an order book worth £3.7 billion amid better-than-expected trading. Broker Peel Hunt upped its price target to 300p following the update.
On AIM, Hornby shares rallied half a penny to 16p as the models and collectibles business reported 5% sales growth in its Black Friday and Christmas quarter.
Urban Logistics says demand for warehouse space outstrips supply
10:20 , Joanna Bourke
Warehouses investor Urban Logistics has observed a more active occupational market in recent months, it said today.
The FTSE 250 company said: “Demand for space continues to outstrip supply in the company's specialist sub-sector of last mile, last touch delivery of essential goods in urban locations.”
Since October 1 it has completed seven lease events and it added that two further leases are either in solicitors' hands or under offer.
House prices fall 6% in London
09:46 , Daniel O'Boyle
The average UK house price decreased by 2.1% in the 12 months to November 2023, the largest annual fall since 2011, after a 0.8% month-on-month drop, according to Land Registry data.
The average house price now £285,000.
In London, the decline was even sharper, at 6%.
Nick Leeming, Chairman of Jackson-Stops, said: “The figures published today suggest a frosty end to the year with buyers putting their searches on hold in order to see how mortgage rates would react as inflation fell once again. 2023 was defined by mortgage affordability pressures and a shift from immense competition, towards a smaller, more committed buyer pool.”
Pound jumps on 'higher for longer' speculation
09:37 , Daniel O'Boyle
The pound is up to $1.2665 today, after falling yesterday.
Analysts at Clear Treasury said: “Sterling has received an initial bounce despite the poor release, as has been the theme for some time, any signal central banks will have to leave interest rates higher for longer – the respective currency strengthens as investors search for yield.”
Brick group Ibstock says full year revenue set to drop 21%
09:34 , Joanna Bourke
Ibstock, the UK’s biggest brick manufacturer, today said full year sales are set to be down by a fifth and that residential construction markets are expected to remain subdued in the near-term.
The company, which counts housebuilders and builders merchants as customers, expects revenue for 2023 to be 21% lower at £405 million. Trading in the final quarter was in line with what the group had anticipated. The shares fell 4.8p to 138.2p.
Chancellor: Inflation does not fall in a straight line
09:27 , Daniel O'Boyle
Commenting on the rise in inflation today, Chancellor Jeremy Hunt said: “As we have seen in the US, France and Germany, inflation does not fall in a straight line, but our plan is working and we should stick to it.
"We took difficult decisions to control borrowing and are now turning a corner, so we need to stay the course we have set out, including boosting growth with more competitive tax levels.”
'Lukewarm response' to new BP CEO
09:23 , Daniel O'Boyle
Derren Nathan, head of equity research at Hargreaves Lansdown, says: “BP has confirmed overnight speculation that interim CEO Murray Auchincloss, has been appointed to lead the group on a full-time basis. This has been met with a lukewarm response with the shares down 1% at the time of writing. The shares have been drifting whilst the process to appoint a leader has continued, although this also reflects the direction of oil prices.
“Mr Auchincloss certainly has a job to do to restore investor confidence, and close the valuation gap with arch rival Shell, and an even wider gulf with its US peers. Continuity of the existing strategy is no bad thing but the shape of returns from the growing focus on energy transition technologies still needs to be proved.”
888 shares plummet by as much as 13.7%
09:22 , Daniel O'Boyle
888 shares plunged after it revealed profits would be at the low end of expectations today.
Shares were down by as much as 13.7% to 69.9p before recovering slightly. They hit highs of 130p and lows of 50p during a volatile 2023.
Gambling industry analysts Regulus Partners said: “Over the last decade both 888 and William Hill have taken brief respites from endemic underperformance and claimed the beginning of a turnaround.
“With £1.6bn of debt, rising underlying costs, a less forgiving macro-environment, and continued regulatory uncertainty, the combined group now needs a real turnaround to survive, in our view.”
Game maker Frontier Developments getting "back on track" after disastrous 2023
09:09 , Daniel O'Boyle
Video game maker Frontier Developments made a £30 million loss in a “challenging” 2023, but says it’s getting “back on track” as it focuses on the types of games that it’s had success with in the past.
Losses ballooned after a run of major flops, mostly outside of Frontier’s usual wheelhouse of “creative simulation” games, where the player runs an attraction like a theme park.
But the firm announced a reorginisation to get back to basics and cut jobs after a profit warning late last year.
CEO Jonny Watts said: “2023 was a challenging year for Frontier and for many companies across the games industry. The last few months have been a tough period of change for everyone at Frontier, and of course it's been particularly difficult for those people in teams who have suffered redundancies. I'd like to thank everyone for their hard work and patience while we make the necessary changes.
“We are confident that our renewed focus on our world-class CMS games is getting us back on track, and it's pleasing to see the strong ongoing performance of our established portfolio of games, led by Jurassic World Evolution 2 and Planet Zoo. I'd like to thank our players across our whole portfolio for their ongoing engagement and support.”
The shares are up 9% today.
Pub chain M&B warns on further wage inflationary pressure ahead
09:02 , Simon Hunt
The Christmas office party made a comeback in 2023, pub chain Mitchells and Butlers said today, as it cheered a jump in winter trading.
M&B said inflationary pressure had eased off compared to last year but warned it was not over yet, with a near-10% rise in the National Living Wage set to push up staff costs considerably.
The Birmingham-based business, which operates the All Bar One, Harvester and Toby Carvery brands, posted 9% and 7.2% rises in food and drink sales respectively in the seven weeks to last Saturday. It said its full-year sales would be at the top end of market expectations, adding it would continue to grow market share and profitability.
CEO Phil Urban said: “Growth was particularly strong on key dates, with record sales for Christmas day based on 229,000 meals served, supported by strong trading in the run up to Christmas, with the return of work parties and festive gatherings driving sales.”
Shares fell 1.3% to 252p.
Inflation setback, but is it a sign UK avoids recession?
08:37 , Daniel O'Boyle
Michael Browne, chief investment officer at Martin Currie, says “continuing optimism” in the service sector led to today’s inflation setback.
That would be bad news for those hoping for interest rate cuts soon, but it could mean that the UK is more likely to escape an end-of-year recession. A decline in December GDP would likely mean the UK would meet the technical definition of a recession.
“The UKI CPI came in at a surprisingly high figure for December of 0.4% month on month and 4.2% year on year. Whilst this is a setback after the downward surprise in November, the cause is an acceleration in services inflation, in line with the continuing pick up in optimism in the sector as seen from the PMI data. Also rising sharply are travel costs, driven by tube, train and plane ticket price inflation while rentals costs are not yet falling.”
Miners and builders led FTSE 100 retreat, Trustpilot down 4% in FTSE 250
08:37 , Graeme Evans
Leading European benchmarks are more than 1% lower, with the FTSE 100 index down by 98.77 points to 7459.57 and the FTSE 250 index off 254.85 points to 18,938.47.
Big fallers in the top flight included Persimmon and Taylor Wimpey, with the housebuilders down more than 2% on the reduced chances of a near-term cut in UK interest rates.
The increased uncertainty over the UK economy meant NatWest shares lost 4.6p to 204.1p and Legal & General retreated 5.3p to 242.2p.
Copper miner Antofagasta fell 4% or 60.5p to 1561.5p after its production update, while Glencore shed 13.1p to 426.1p on the back of Deutsche Bank removing its “buy” recommendation.
The FTSE 250 fallers board included consumer reviews platform Trustpilot and luxury car maker Aston Martin Lagonda after declines of 4%.
Market snapshot as surprise inflation triggers stock selloff
08:18 , Simon Hunt
Blue-chip shares fell sharply in the opening minutes of trade in London after surprise inflation numbers forced investors to adjust their rate cut forecasts.
Here's a look at your key market data this morning.
UK 'recoupling' with rest of world on inflation
07:54 , Daniel O'Boyle
The UK's inflation rate may have risen, but economist Simon French notes that we are becoming less of an outlier among rich countries.
The difference between the UK CPI and the average of other G20 countries narrowed, as inflation picked up steam across most of the world in December.
But inflation here still remains higher than in most peer nations.
Rate cut predictions pushed back to June or August
07:54 , Simon Hunt
City analysts are now expecting the Bank of England's first rate cut to be in June or August, rather than May, in light of this morning's surprise rise in inflation.
Here's a look at the latest predictions, according to Refinitiv data:
Black friday deals help sales at model train maker Hornby to steam ahead
07:50 , Joanna Bourke
Black Friday deals attracted a flurry of new customers to Hornby, the model train maker set said as it reported a 5% rise in third quarter sales.
The firm, which sells brands such as Scalextric, added that cumulative group sales for the financial year to date are ahead of last year by 6%.
It was helped by a strong Black Friday performance, with more than 50% of all those transactions from first time purchasers. Hornby also said: “We continue to work on responsibly reducing the excessive, historical, inventory position through the remainder of the year.”
FTSE 100 seen 100 points lower amid interest rate uncertainty
07:47 , Graeme Evans
Futures trading suggests the FTSE 100 index is about to open 1.3% or 98 points lower, a deterioration on the decline of about 50 points forecast by IG Index prior to the inflation reading.
Sentiment was already weak after a leading US Federal Reserve policymaker pushed back on Wall Street expectations for a series of rapid interest rate cuts.
The 10 year Treasury yield rose above 4% last night after its largest one-day increase in over two months.
Brent Crude this morning weakened to $77.69 a barrel following the developments, with the pound steady against the dollar at $1.2653.
'Far from clear' Bank can deliver rate cuts market expects
07:37 , Daniel O'Boyle
Melissa Davies, Chief Economist at Redburn Atlantic, disagrees with the commentators who think UK inflation will still fall fast enough for the Bank of England to cut rates soon.
She said: “UK inflation increased in December from 3.9% to 4.0% now that the bulk of the energy price deceleration is behind us. Core inflation stayed steady at 5.1%. Food price inflation continues to moderate but alcohol and clothing inflation rose. “
It is far from clear that the Bank of England’s job is sufficiently done to allow a swift series of rate cuts, as expected by the market. In fact, there are a number of reasons the Bank should hold the line on rates into the second half of the year and then proceed slowly with cuts.
“Wage inflation remains elevated, services inflation is high and sticky, while goods inflation is poised to bounce in the face of renewed supply chain pressures. Moreover, the housing market is reviving in response to falling mortgage rates, and fiscal policy is easing yet again, working against the Bank’s efforts to tame price pressures.”
888 - UK punters spent 18% less on average in 2023
07:34 , Daniel O'Boyle
William Hill owner 888 holdings says UK punters spent 18% less on average this year with the bookie as it implemented a number of the Government’s proposed safer gambling rules.
A series of gambling reforms were announced in the spring, headlined by requirements to perform checks on any customer that deposits more than £125 a month, with more detailed credit-check-like measures for those spending £1,000 a day. The reforms aren’t law yet but operators including 888 have already started to bring them in.
Today, the firm revealed its UK revenue was down 8% in 2023, despite a rise in customers. Average spend per customer was down 18% in the UK.
Elsewhere, the firm took an £80 million hit as it moved away from so-called “grey markets” where gambling is not regulated.
Total revenue was down 8% to £1.7 billion, while underlying profit margins are at the bottom of 888’s 18-19% range, suggesting profits of about £308 million.
Will inflation rise again this month after December increase?
07:30 , Daniel O'Boyle
Capital Economics deputy chief UK economist Ruth Gregory says inflation may rise again in January, but will get back on track in the following months.
Gregory said: "What we hadn’t anticipated was the sharp pickup in alcohol and tobacco inflation from 10.2% to 12.9%. And it is a little concerning that services CPI inflation popped back up from 6.3% to 6.4%. But that’s not too much of a blow as it held onto most of the fall since September from 6.9%, leaving it comfortably below the 6.9% rate the Bank projected at the time of the November Monetary Policy Report. Meanwhile, the further easing from -5.4% in November to -8.4% in December suggests there is no evidence of the rise in second-hand car prices that is supporting inflation in the US.
"Overall, we think that CPI inflation will rise a bit further in January. But favourable base effects will push down inflation in February, March and April. CPI inflation in April will also be dragged down by what is shaping up to be a fall in the Ofgem utility price cap of 10% or more. As a result, we still think that inflation will be below the 2% target by April and the Bank of England will be in a position to start cutting interest rates by June."
BP unveils new CEO
07:23 , Simon Hunt
BP has unveiled its new CEO: Murray Auchincloss.
A long-serving BP employee, Auchincloss became interim CEO in September after Bernard Looney stepped down amid allegations that he was dishonest to the board over past relationships with employees.
Before that, Murray had been BP’s chief financial officer since July 2020, at which time he also joined BP’s board. He had previously served as CFO, deputy CFO and head of business development for bp’sâ¯Upstreamâ¯segment. From 2010-2013 Murray was head of GP’s group chief executive’s office, working directly with Bob Dudley.
The 53-year-old will receive a base salary of £1.45 million as well as a bonus and a cash allowance in lieu of a pension.
Liontrust sees £1.7bn in fund outflows
07:22 , Simon English
The strife in the active fund management sector continued today when Liontrust Asset Management said it had seen clients pull £1.7 billion out of the business in the last quarter.
Star stock pickers Terry Smith and Nick Train recently admitted to similar woes, as they failed to keep pace with markets and clients withdrew funds to cope with the cost of living crisis.
Liontrust CEO John Ions said: "Among the drivers of the net outflows in the last quarter, totalling £1.7 billion, were the ongoing negative sentiment among investors and the current challenges facing active asset managers. These challenges include the fact active managers have never been confronted by such a competitive environment to attract and retain assets as is the case now, both from within and outside the sector."
Ions claims that many shares are now cheap and offer a good opportunity for investors to get into the market at bargain prices.
He has made two big hires.
Mark Hawtin - and his three-strong team - to join in May as Head of Global Growth Equities and Jeremy Roberts to join in April as Head of Global Distribution.
Liontrust says lately its fund performance has improved.
Bag brand Mulberry's sales down amid luxury retail challenges
07:20 , Joanna Bourke
Mulberry Group has not been immune from challenges in the luxury sector in the run up to Christmas, with revenue at the bag maker down 8.4%.
The AIM-listed retailer, which stuck to a full price sales approach, saw the revenue decline most hard in the UK, down 4% in the 13 weeks to December 30.
The sector has faced slowing demand as wealthy shoppers look at the impact of rising inflation and economic uncertainty. More to follow
Asia shares slide as China GDP misses hopes, FTSE 100 seen lower
07:18 , Graeme Evans
European markets are set for another poor session after Wall Street began a holiday shortened week in the red and China reported GDP short of hopes.
The FTSE 100 index closed 0.5% lower last night and is forecast to shed another 53 points to 7505, according to CMC Markets.
In Asia, the Hang Seng index tumbled 4% and the Shanghai Composite lost 2% after China said its economy expanded 5.2% in the fourth quarter.
That’s an improvement on the 4.9% of the previous quarter but below the 5.3% forecast. Excluding the pandemic years, the growth rate for 2023 of 5.2% is the weakest in three decades as the country’s performance is hit by debt fears in the property sector.
On Wall Street, the Dow Jones Industrial Average closed 0.6% lower after Morgan Stanley missed profit expectations and a leading Federal Reserve policymaker cooled expectations on the outlook for US interest rate cuts.
Inflation 'still on course to hit target sooner than Bank expects
07:10 , Daniel O'Boyle
Jeremy Batstone-Carr, European Strategist, Raymond James Investment Services, says: “The ONS’s announcement of December’s inflation data confirms a pause for breath following sharper declines than expected in the two months prior. The monthly headline rate of CPI edged up by 0.4%, the same rate as November, a consequence of retailers increasing prices following the Black Friday sales, but this rise disguises continued falling food prices seen across autumn. Although prices are still rising in aggregate and remain above the Bank of England’s desired 2% target, the general direction of travel indicates that the economy will begin to blossom again as winter turns to spring.
“When the Bank releases its overhauled forecasts, estimates will likely reflect this encouraging trend in domestic price pressures. This data has come too soon to capture any potential upside risk associated with shipping disruptions in the Red Sea, but this will likely be reflected in next month’s figures and will likely make little more than a marginal difference.
“The Bank’s rate-setters will take heart from the strong likelihood that price pressures will continue to subside in the months to come. Energy regulator Ofgem is also expected to deliver a sharp drop in the utility price cap in April, which will ease pressures on British households and may well be sufficient to drive inflation down to target far sooner than the Bank’s current expectations.”
Just Eat orders slip
07:05 , Simon Hunt
Just Eat Takeaway order numbers fell 6% in the UK last year and as much as 16% in Southern Europe as consumers on squeezed incomes pared back their takeaway orders.
Global order numbers fell 9% in 2023, the London-listed firm said today, while gross transaction value, a measure of the total size of orders, declined 6%. Demand in the UK and Northern Europe faired better, with GTV up 5% in the fourth quarter.
Just Eat said its earnings had come in ahead of expectations at €320 million, and the firm had now become cashflow positive.
CEO Jitse Groen said: "We are excited that both our Northern European and UK and Ireland segments have achieved their all-time high quarterly GTV level, showing the strength of our European business.
"At the same time, we have achieved a significant milestone with the Company now becoming free cash flow positive. We are very much looking forward to 2024."
Inflation back up to 4%
07:03 , Daniel O'Boyle
Inflation ticked back up to 4% in December, slightly ahead of expectations.
Economists had expected the rate of price rises to dip to 3.8%.
Core inflation, which strips out food and energy prices, was also ahead of expected at 5.1%, unchanged from November.
ONS Chief Economist Grant Fitzner said: “The rate of inflation ticked up a little in December, with rises in tobacco prices due to recently introduced duty increases.
“These were partially offset by falling food inflation, where prices still rose but at a much lower rate than this time last year.
“Meanwhile, the prices of goods leaving factories are little changed over the last few months, while the costs of raw materials remain lower than a year ago.”
06:39 , Simon Hunt
Good morning from the Standard City desk.
Yesterday, a merger between Panmure Gordon and Liberum was announced.
The surprising thing is not that it has happened, but that it took so long.
Ever since Bob Diamond — the former Barclays chief once dubbed the unacceptable face of banking, but really just a deal maker like many others — rocked up at Panmure in 2018 the talk has been of when he would strike.
The arrival two years ago of acolyte Rich Ricci — bankers called Diamond and Ricci sound like cartoon characters — heightened expectations.
But other possible deals — with Numis and then Cenkos — went to other places. Had Diamond lost his touch?
Today’s all-share merger with Liberum suggests he was just biding his time.
The deal breathes new life into both firms and gives hope to the under-served smaller firms who desperately need what the City has to offer but discover the likes of Goldman Sachs et al find them not worth the bother.
Goldman and co have also been slashing jobs due to a dearth of the big deals on which they thrive.
Panmure Liberum is about growth. It will have 300 staff in the heart of the City and about 250 UK corporate clients.
Those clients suddenly have access to the extensive contacts Diamond and Ricci have built up after all these years.
Moreover, Panmure itself recently turned a profit for the first time in a long while.
We should wish them and their new venture well.
Here's a summary of our other top stories from yesterday:
Spring interest rate cut seen as more likely as wage growth slows to 6.6% in December quarter
Nationwide 'out in the cold', brokers say, as it stays out of mortgage rate price war for now
Vodafone to invest $1,5 billion in AI in tie-up with Microsoft
Ocado passes the one million customers mark after a record Christmas
