Yahoo Finance FTSE 100 Live 22 March: Index closes highest in over a year and near 8000, pound lower
The FTSE 100 hit its highes tlevel in more than a year today as global stock markets continue to rally on hopes that lower interest rates are within sight.
But consumer confidence and retail sales figures today painted a mixed picture on the UK’s fight to exit recession.
In today’s corporate developments, JD Wetherspoon reported a big rise in half-year profits while another London-listed firm has backed a takeover.
FTSE 100 Live Friday
Buie-chip index extends rally
Retail sales held up by weather
Toilet paper maker in £127.5m takeover
FTSE 100 closes at 13-month high of 7,930.92
Friday 22 March 2024 16:39 , Daniel O'Boyle
The FSTE 100 closed at its highest since March 2023 today, up 0.6% to 7,930.92.
It was up 2.6% for the week.
Friday 22 March 2024 13:54 , Daniel O'Boyle
Nationwide Building Society has apologised to customers after all payments in and out of accounts were delayed on Friday morning.
The building society said there was an issue impacting its Faster Payments system to and from other banks and building societies.
“The issue has now been fixed and queued payments are being processed,” a spokesman for Nationwide said.
Phoenix boss calls for pensions shake-up to boost stock market
Friday 22 March 2024 12:51 , Daniel O'Boyle
Britain’s biggest pension provider today called for a shake-up of regulations to make it easier for funds to invest in UK assets, boosting returns to customers and coming to the aid of a moribund stock market.
Phoenix Group, which looks after £238 billion on behalf of 12 million policy holders, is on the up. It generated cash of £2 billion for the year, up from £1.5 billion.
That frees it up to pay a final dividend of 26.65p a share, up 2.5%, and to promise investors it plans to increase that divi each year. CEO Andy Briggs has been pushing regulators and the Government to incentivise pension funds to invest in UK shares and UK assets in general. On average UK pension funds have just 4% of their assets in UK shares, one reason, say critics, why the stock market is so moribund.
City Comment: Vodafone has changed a lot since its past M&A successes
Friday 22 March 2024 12:16 , Daniel O'Boyle
Vodafone knows a thing or two about mergers. The Paddington-based telco still holds the crown for the world’s biggest-ever M&A transaction, acquiring German rival Mannesman in 1999 in a $183 billion deal (double that in today’s money). Elon Musk’s $44 billion Twitter takeover, or Microsoft’s $69 billion purchase of Activision, concluded last year, look puny by comparison.
Back then, Vodafone was one of the most exciting, most valuable companies in the world — not far off the market cap of Microsoft. It was viewed as a tech stock with a big growth story to tell.
Now? Not so much. It’s a smaller, leaner organisation, and shareholders see it as a utility stock — a company with ageing infrastructure, wrestling with the high costs of maintenance and upgrades.
Market snapshot: FTSE 100 slips back, but still on for 13-month high close
Friday 22 March 2024 11:34 , Daniel O'Boyle
The FTSE 100 has come a little bit off its mid-morning highs, but is still comfortably on course to close at its highest level in more than a year.
City Voices: Why politicians can’t afford to ignore data in their manifestos
Friday 22 March 2024 11:30
Technology is evolving at pace and, used in the right ways, can revolutionise how the state understands and responds to critical challenges. AI and the models that underlie it are complex, and we must ensure that those in positions to legislate - and regulate - understand AI and the data that is its feedstock.
The Prime Minister said recently that lawmakers are trying to “…write laws that make sense for something we don’t yet fully understand”. Put differently, we are building the tracks while driving the train!
Gloom grips the high street as retail sales and consumer confidence falter
Friday 22 March 2024 10:41 , Daniel O'Boyle
There were fresh signs today that the UK may be struggling to get out of recession in a wait-and-see economy, with stuttering high street sales and faltering consumer confidence.
Retail sales for February stagnated month-on-month, coming in bang on zero, although that avoided an overall drop of 0.4% predicted by City experts.
Better clothing sales helped offset a slide in food and fuel, declines that pointed to cost-conscious shoppers cutting back on more expensive essentials.
Then, a highly influential and long running tracker of economic conditions also revealed the lingering sense of uncertainty during a time of recession.
FTSE 100 rally continues, Darktrace stake sale hits shares
Friday 22 March 2024 10:19 , Graeme Evans
A weaker pound today helped the FTSE 100 index to maintain its progress, up another 0.8% or 66.29 points to 7948.84.
The top flight’s rise to a year-high followed a jump of 1.8% after the US Federal Reserve signalled three rate cuts in 2024 and the Swiss National Bank became the first major central bank to cut in this cycle.
With the pound more than 0.5% lower against the US dollar, overseas earning stocks underpinned the latest improvement.
Other strong performers included Lloyds Banking Group, which extended its gains since mid-February to 26% after adding another penny to set a year-high of 52.5p.
JD Sports Fashion led the fallers board after its shares were tripped up by the latest sales guidance of trainers giant Nike.
The Bury-based chain slumped 4% or 5.15p to 111.95p after Nike reversed 6% in dealings following last night’s Wall Street closing bell.
The UK-focused FTSE 250 index rose by a modest 25.70 points to 19,767.01, with JD Wetherspoon down 53p to 743.5p despite a big jump in half-year profits to £36 million.
Like-for-like sales growth has slowed to 5.8% in the past seven weeks but US bank Jefferies reckons the stock is good value based on a 925p target price.
Darktrace topped the fallers board, off 9% or 43.1p to 417.9p after a technology growth fund advised by private equity giant KKR sold its 2.5% stake in a secondary placing worth £82.5 million. Its investment in the AI-focused cyber security firm dated back to 2016.
A second technology growth fund advised by KKR continues to hold an approximate 7.3% interest in the company.
Retail to rebound soon?
Friday 22 March 2024 09:59 , Daniel O'Boyle
Investec’s Ellie Henderson says that while retail sales stagnated and consumer confidence was low, the signs are there for a rebound soon.
She said: “We do expect consumer confidence to break out of its current tight range in the coming months, though, and retail activity to rebound. Even if sales volumes growth was flat again in March, on a quarterly basis retail sales growth would be comfortably positive in the first quarter of the year. This supports our call that the UK economy returned to growth in Q1, a view that is shared with Bank of England Governor Andrew Bailey.”
Market snapshot: FTSE 100 at 13-month high
Friday 22 March 2024 09:40 , Daniel O'Boyle
The FTSE 100 has hit a 13-month high, and is getting close to the 8000 mark again, as it continues to build on yesterday’s gains.
Take a look at the latest market snapshot:
Aston Martin taps Bentley boy as new boss
Friday 22 March 2024 08:58 , Daniel O'Boyle
Aston Martin has tapped Bentley boss Adrian Hallmark to become its fourth CEO in a little over four years.
He’ll replace Amedeo Felisa, who turns 78 this year and had been brought in from Ferrari to turn the James Bond carmaker around after years of struggles.
Felisa led an initial rebound for Aston Martin in his first year in charge, but the stock has slumped since then. It’s down more than 50% since July.
Hallmark has led Bentley since 2018.
Aston Martin chair Lawrence Stroll said: “In Adrian Hallmark, we are attracting one of the highest calibre leaders not just in our segment, but in the entire global automotive industry.”
Blue-chips continue to rally, Darktrace and Wetherspoon lower in FTSE 250
Friday 22 March 2024 08:51 , Graeme Evans
Interest rate optimism continues to drive blue-chip shares after the FTSE 100 index today added another 0.5% or 37.52 points to 7920.07.
The top flight’s ascent towards its highest level in a year follows yesterday’s 1.8% jump, when confidence was boosted by lower rates guidance by the US Federal Reserve.
Savings and retirement business Phoenix Group, whose brands include Standard LIfe and SunLife, led the FTSE 100 index after it announced a new progressive dividend policy alongside annual results. Shares jumped 7% or 35.2p to 523.4p.
Other blue-chip risers included consumer goods groups Reckitt Benckiser and Unilever after their shares rose by about 1%.
JD Sports Fashion led the fallers board, down by 4% or 4.85p 112.25p, as investors priced in last night’s negative Wall Street reaction to quarterly figures by Nike.
The FTSE 250 index was 1.95 points lower at 19,739.36, with JD Wetherspoon among the fallers after its interim results revealed a slower pace of sales growth in recent weeks. The pubs chain dropped 6% or 46.5p to 750p.
Darktrace also shed 9% or 41p to 420p after a US investment firm sold a big chunk of shares in the cyber security business.
Phoenix calls for pension shake-up
Friday 22 March 2024 08:46 , Simon English
BRITAIN’S biggest pension provider today called for a shake-up of regulations to make it easier for funds to invest in UK assets, boosting returns to customers and coming to the aid of a moribund stock market.
Phoenix Group, which looks after £238 billion on behalf of 12 million policy holders, is on the up.
It generated cash of £2 billion for the year, up from £1.5 billion. That frees it up to pay a final dividend of 26.65p a share, up 2.5%, and to pledge to investors that it plans to increase that divi each year.
CEO Andy Briggs has been pushing regulators and the government to incentivise pension funds to invest in UK shares and UK assets in general.
On average UK pension funds have just 4% of their assets in UK shares, one reason, say critics, why the stock market is so moribund.
Foreign pension funds have a much higher stake in their home countries stocks.
“Markets have globalised, so funds have only about 10-20% of their money in UK assets. It used to be more like 70%,” he told the Standard. Other countries incentivise funds to invest more in domestic assets. We need better tax breaks on pensions, titled towards the home market.”
Greater economic stability in the UK would also help, he noted, after several years of turmoil that have seen several changes in Prime Minister and criticism of the Bank of England for mixed messages on inflation and interest rates.
Chairman Nicholas Lyons says more attention needs to be paid to pensions in general given longer life spans.
He said: “The pensions savings gap in the UK is a growing societal problem. As the UK's largest long-term savings and retirement business, we are striving to raise awareness of this problem and advocate for the changes needed to deliver the solutions and help people secure a life of possibilities. We know that people can only save for their retirement if they have access to good work over their longer lives. That is why we are playing a role in promoting good work through Phoenix Insights, working in collaboration with others to influence government policy.”
Market snapshot: FTSE 100 nears 12-month high
Friday 22 March 2024 08:36 , Daniel O'Boyle
The FTSE 100 has risen further today after yesterday’s massive gains, and is now within touching distance of a 12-month high.
Take a look at today’s market snapshot:
Wetherspoon sales and profits surge
Friday 22 March 2024 08:07 , Graeme Evans
Pubs chain JD Wetherspoon has reported a big jump in profits for the six months to 28 January, up to £36 million from £4.6 million the year before.
Total sales were £991 million, an increase of 8.2% as the like-for-like figure excluding changes in the estate improved by 9.9%.
In the last seven weeks to 17 March, like-for-like sales increased by 5.8%.
At the end of the half-year, the company traded from 814 pubs compared with a peak of 955 in December 2015.
In spite of a reduction in the number of pubs, Wetherspoon said total sales are now about one third higher than in 2015 and that sales per pub have increased by about 50% since then.
Examples of recent pub openings include the Captain Flinders near Euston Station, the Stargazer at The O2 and The Star Light at Heathrow Airport.
It believes the company has potential for about 1000 pubs in the UK.
'Vanishing' signs of improvement in consumer confidence warns GfK
Friday 22 March 2024 07:56 , Michael Hunter
A closely watched tracker of economic conditions added to a sense of unease over the UK’s fight against recession today.
GfK’s long running consumer confidence tracker stalled at -21 for March after a two- point decline in February.
But Joe Staton, Client Strategy Director GfK, pointed to “a note of worry this month”:
“Look back to last year and it’s clear the improvements in consumer confidence seen most months since January 2023 have vanished”.
The GfK survey has been running for 50 years. It provides insight into how UK consumers feel about their personal finances and the wider economy, as well as the outlook for the next 12 months.
Bad February weather held back retail sales
Friday 22 March 2024 07:48 , Daniel O'Boyle
Erin Brookes, European Retail and Consumer Lead at Alvarez & Marsal said bad February weather outweighed the advantage of an extra trading day this February.
She said: “January's sales rebound turned out to be short-lived, with sales remaining flat in February. Retailers encountered this stagnation amidst one of the wettest winters on record, despite the advantage of an extra trading day. This emphasises the importance of agile strategies to navigate variable trading conditions. Retailers will also be worried by the decline in consumer confidence last month as they focus on trying to build excitement among their customers for new season collections.”
CMA puts Three-Voda deal into phase 2 investigation
Friday 22 March 2024 07:45 , Simon Hunt
The UK’s competition regulator has put the proposed Vodafone-Three merger into a phase 2 investigation.
In a statement the Competition and Markets Authority said: “The CMA is concerned the deal, which combines 2 of the 4 mobile network operators in the UK, could lead to mobile customers facing higher prices and reduced quality.
“The CMA is also concerned that the deal may make it difficult for smaller mobile ‘virtual’ network operators such as Sky Mobile, Lebara and Lyca Mobile to negotiate good deals for their own customers, by reducing the number of mobile network operators capable of hosting these ‘virtual networks’.”
Consumer confidence stalls in March
Friday 22 March 2024 07:34 , Graeme Evans
GfK’s monthly reading of UK consumer confidence painted a mixed picture today after the overall score stalled at minus 21.
That’s an improvement on minus 36 seen last March but represents a weakening compared with the minus 19 figure recorded in January.
Among the sub-measures, the major purchase index dropped two points to minus 27 and the savings index fell by four points.
On a brighter note, the measure of personal finance expectations over the next 12 months edged into positive territory for the highest score since December 2021.
New season clothing helps high street sales hold steady in February
Friday 22 March 2024 07:29 , Michael Hunter
A rebound in clothing sales helped the sales on the high street hold steady in February, avoiding an overall drop predicted by experts.
Nonetheless, the official data from the Office for National Statistics pointed to stagnant conditions for retailers overall.
The headline number hit zero, defying predictions of a 0.4% fall.
Food sales slowed, as did fuel.
On a year-on-year basis, the number did slip by 0.4%, narrower that expectations of 0.7%
January’s figure was revised to show an eye-catching rise of 3.6%.
Toilet paper maker to be wiped off stock exchange in £127.5m deal
Friday 22 March 2024 07:20 , Daniel O'Boyle
Kitchen roll and toilet paper maker Accrol is the latest company to be bought off the London Stock Exchange as it agrees to a £127.5 million bid from Portuguese firm Navigator.
Navigator will pay 38p for every Accrol share.
Accrol makes Softy facial tissues, Elegance toilet roll and Magnum kitchen paper.
Gareth Jenkins, Chief Executive Officer of Accrol, said: "Accrol has undergone a period of significant transformation and growth over the last four years, investing in fully automating its tissue converting operations to enhance manufacturing capabilities.
“I am proud and grateful to the efforts and commitment of our people. We have grown to become a leading manufacturer of private label, own branded and licensed tissue products to the UK market and have developed broad retail relationships and a robust supply model that enables us to produce great quality and value products.”
FTSE 100 to hold firm after rates-led bounce, Asian markets weaker
Friday 22 March 2024 07:16 , Graeme Evans
The FTSE 100 index is set to consolidate its position at an 11-month high after yesterday’s rates cut optimism fuelled a rally for global markets.
IG Index reports that futures are pointing to a fall of four points for London’s top flight, having jumped 1.9% or 145 points to 7882 by last night’s close.
US markets also closed deeper into record territory after the earlier unchanged guidance by the Federal Reserve for three interest rate cuts in 2024.
The shift in mood accelerated after the Swiss National Bank surprisingly cut rates, becoming the first major central bank to do so in the current cycle.
The S&P 500 index closed 0.3% higher, with one of the biggest downsides being the 4% slide for Apple shares after the Department of Justice filed a lawsuit against the iPhone maker.
Overnight in Asia, the Hang Seng index has fallen by 1.9% and the Shanghai Composite by 1% amid a big drop for technology-focused stocks.
Recap: Yesterday's top stories
Friday 22 March 2024 06:45 , Simon Hunt
Good morning from the Standard City desk.
On Wednesday, the nation nearly fell to its knees after a catastrophe akin to the financial crash sent shockwaves through our towns and cities.
I am of course referring to the saga at Greggs, where for several hours, Brits were denied access to steak bakes and custard doughnuts after a payments IT glitch forced shop closures.
Mercifully, the crisis was resolved forthwith. Panic buying at bakeries and a run on the banks were narrowly averted.
London is blessed with probably the highest concentration of payments fintechs in the world. Hundreds of companies beaver away, lubricating the mechanics of our economy. There are so many tools to choose now, a whole secondary market has evolved known as orchestration, in which firms group together systems from multiple providers on retailers’ behalf.
And we’re streets ahead of everyone else — it’s why, for example, the tube got contactless payments about a decade before the New York Subway (the trains not the sandwiches).
But all this innovation is at risk of stalling. Some say the UK’s financial watchdog, the FCA, has become way more difficult to work with. An FOI by the Standard last year showed that approval rates for e-money licenses sunk to a pathetic 8%. As one CEO put it, it’s less effort to turn someone down than help them thrive.
There are huge risks to this overcautious approach. In the long-run, it will mean we fall behind on technological progress — meaning many more outages like the one at Greggs.
Here’s a summary of our top stories from yesterday:
Next posts record profits of £918m on sales of £5.8 billion to burnish its reputation as best run retailer in Britain. Predicts it will make £960m next year. Simon Wolfson says: "It has been a long time since we started a year in a more positive frame of mind." Says consumers are more confident than for years, rents down, costs down, inflation down.
Direct Line to cut £100 million of costs by end of 2025 after it fended of £3.2bn takeover offer last week - back in profit but only because it sold its brokered commercial arm - new boss says "we need to do more to drive performance"
Public borrowing down year-on-year for fourth straight month, and at four-year low for financial year to date. £11.8bn in Feb 2023 to £8.4bn last month - fall in payments on inflation-linked gilts + frozen tax thresholds helped bring it down
Bank of England holds rates at 5.25% (but for how long?)
Cannes Lions owner Ascential lays out plans for £450m special dividend and a £400m buyback after selling off most of the rest of its business
Figurine retailer Games Workshop ups its dividend taking total for the year to £4.20
Business lender Secure Trust Bank says first BoE rate cut will mark "the beginning of a period of relative economic stability"
