Yahoo Finance FTSE 100 Live: 'Incident' halts trading in many London stocks, blue-chips unaffected but still close down 1.2%
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The London Stock Exchange said an '"incident" has caused it to suspend trading in a number of shares.
While the suspension mostly affected small-cap stocks, some bigger names have also had trading halted.
The FTSE 100 - which contains no affected stocks - fell further today amid continued fears over the conflict in Israel and Gaza, as well as the prospect of higher-for-longer interest rates.
Rentokil and Rightmove both lost more than 10%, with the King's ratcatcher blaming difficulties in the US for lower-than-expected profits, while Rightmove shareholders were spooked by US firm CoStar's acquisition of rival OnTheMarket.
FTSE closes down 1% - no blue chips affected by 'incident'
16:38 , Daniel O'Boyle
The FTSE 100 closed at 7,499.53 today, down more than 1%, as gilt yields surged to the highest levels in decades.
Two different firms in London's top flight saw their shares tumble by more than 13%: Rentokil closed down 17.2% and Rightmove down 13.5%.
The risers board was led by Spirax-Sarco.
Trading of a number of stocks remains halted, but the London Stock Exchange Group noted that none of the affected firms are members of the FTSE 100 or 250.
Many shares suspended after 'incident'
16:18 , Daniel O'Boyle
Trading in a number of London stocks has been suspended after an unspecified 'incident'.
The London Stock Exchange halted trading in a number of smaller stocks, as well as a few larger firms like Asos and Deliveroo, at around 3:10 p.m.
"We are undertaking immediate analysis and will provide further updates," the London Stock Exchange Group said.
It added: "FTSE 100, FTSE 250 and IOB securities are operating as normal.
"London Stock Exchange confirms there will be no further continuous trading in affected securities.
"Further information on Closing Auction status for the impacted stocks will be cascaded shortly. "
City Voices: Higher pay demands might just tip us into recession
15:59 , Daniel O'Boyle
Markets, consumers and quite possibly the Bank of England may breathe a sigh of relief this week as UK inflation holds steady at 6.7% and UK wage growth shows signs of slowing, albeit marginally.
Markets were fearing another rise in the average earnings index, which measures the change in salaries in the past month.
A rise would suggest UK employees are demanding more compensation for their work. However, the Office for National Statistics (ONS) said on Tuesday that average total pay rose 8.1% in August, down from 8.5% the previous month.
Despite that, average wage growth is still close to record highs in the UK. So while data this week might suggest the BoE hold its rate-hike lever steady, wage pressure continues to stand in the face of its commitment to bring inflation down to its 2% target. So why all the fuss about wage growth?
US shares steady after yesterday's fall
15:20 , Daniel O'Boyle
Wall Street stocks are close to flat this morning, after a sharp fall yesterday.
The S&P 500 is down by less than a single point at 4,313.78, while the Dow Jones dipped by 0.2% to 33,587.9. The Nasdaq is up 0.3% to 13,351.9.
One big gainer, however, has been Netflix, which has seen its shares soar by 16.5% to $403.22 after its results last night.
City Comment: London tourism is booming! Raise a glass to... Kwasi Kwarteng?
14:08 , Daniel O'Boyle
At last! A dividend from Kwasi Kwarteng’s otherwise catastrophic mini-Budget just over a year ago.
Figures today from the Office for National Statistics show Americans pouring into London in near record numbers during the April to June quarter.
They’re spending big too. Over the three months, visitors from North America (let us not forget the Canadians) splurged £1.339billion on the capital’s hotels, restaurants, shops and attractions, close to double the £797 million of the pre-pandemic second quarter of 2019.
London Stock Exchange struggles, LSEG doesn't
13:16 , Simon English
Like much of the rest of the City, the London Stock Exchange has been hit by low market growth and a dearth of new flotations.
But the wider group, now mostly a data and analysis business, is doing well. It made another £750 million of share buybacks in the third quarter, taking the total to £1.5 billion since August last year.
The revenue from data, up 7.2% at £1.3 billion, vastly outstrips the money made from equities, down 9% at £55 million.
Neil Shah, Executive Director at Edison Group, said: “The London Stock Exchange Group is seemingly on track to hit the high end of their 2023 growth forecasts. This optimistic outlook is bolstered by their robust advancements in the data and analytics sector, an area where they’ve notably established reliability.”
The LSEG is at the heart of government moves to bolster London’s attractiveness for floats.
Critics say this will help the LSEG’s foreign shareholders more than the capital.
Shares rose 36p to 8110p today.
Long gilt yields surge to highest in decades
13:09 , Daniel O'Boyle
30-year gilt yields have surged again to new 25-year highs amid continued global uncertainty.
The 30-year gilt, a key indicator of the stability of the British economy and historically one of the safest assets on the planet, now yields 5.08%, its highest return since 1998.
The 10-year gilt yield is also close to 15-year highs, at 4.7%.
Netflix increases price of some subscriptions in the UK
12:54 , Daniel O'Boyle
Netflix has confirmed it is raising the price of some of its subscription plans in the UK.
The streaming giant said the price of its basic, ad-free subscription would rise from £6.99 a month to £7.99, while its premium subscription would rise from £15.99 to £17.99.
The rise comes as the US firm revealed it had added 8.8 million subscribers between July and September – more than expected – partly driven by its scheme to crack down on password sharing.
Occupancy levels climb at flex workspace firm The Office Group
11:36 , Daniel O'Boyle
Workspace provider The Office Group has said occupancy has returned to pre-pandemic levels across its estate, in a sign that some employer efforts to lure staff back into town more regularly are gaining traction.
The firm, which merged with competitor Fora in September last year and offers flexible office lease terms often used by companies seeking room to grow, operates from 72 buildings across the UK and Germany, with 59 of the sites in London. These include Liberty House in Regent Street and One Lyric Square in Hammersmith.
Average occupancy across buildings open for a year or more rose 7% in the first half to June 30, and now stands at an average of 91% across those sites, comparable with levels seen before Covid struck in February 2020.
Greta Thunberg joins climate protest outside JP Morgan
10:39 , Daniel O'Boyle
Greta Thunberg has joined a protest outside JP Morgan demanding the bank stops funding fossil fuels.
Along with the group Fossil Free London, the Swedish climate activist stood outside the entrance in Canary Wharf on Thursday morning.
They moved to block the entrances of the bank by sitting on the pavement chanting “oily money out” and waving yellow flags and banners.
FTSE 100 down another 1%, McBride shares up 21%
10:20 , Graeme Evans
The FTSE 100 index is down by more than 1% for a second successive session. driven by a combination of fears over the Middle East conflict and prospect of higher-for-longer global interest rates.
The latest fall of 87.06 points to 7500.94 follows a bleak session in New York and for investors in Asia, where the Hang Seng index closed 2.5% lower.
Meanwhile, demand for safer haven assets kept the gold price near a three-month high of $1950 an ounce as the US dollar also strengthened.
Susannah Streeter, head of money and markets at Hargreaves Lansdown, said: “A wary mood is spreading as the Middle East crisis looks increasingly intractable, while a high-interest rate environment looks set to stay for longer.”
On London’s blue-chip fallers board, packaging firm Mondi slid 6% or 82.5p to 1250.5p as it said market demand remained soft. However it added that weaker average selling prices have largely been offset by lower input costs and cost controls.
Other stocks under pressure for a second session in a row included Taylor Wimpey, which dropped another 1.9p to 105.1p.
One sector in demand was car insurance, with Admiral up 33p to 2464p and midcap Direct Line Insurance ahead 4p to 161.15p. This followed a reassuring update by Sabre Insurance, whose shares jumped 5.5p to 155.5p as it said it had increased prices at a level to cover high ongoing inflation.
The FTSE 250 index fell 109.83 points to 17,293.63, with Tate & Lyle down 3% or 20p to 625p among the biggest fallers as Barclays cut its price target to 760p.
The stand-out performance of the London session came from McBride, which jumped 21% or 7.1p to 39.75p as strong demand for own-label cleaning and hygiene products left first quarter earnings £8 million ahead of internal forecasts.
Spire Healthcare in £74m mental health acquisition
09:51 , Daniel O'Boyle
Private health provider Spire Healthcare tapped into the growing demand for mental health services today with a £74m acquisition of Vita Health Group.
Vita offers mental health care and physical therapy for pain, two areas that have been rapidly growing in recent years. It is expected to post revenue of £100 million next year, with underlying profits of £10 million.
Justin Ash, Chief Executive of Spire Healthcare, said: “Vita addresses two of the main reasons for long-term illness and absence from work in the UK: mental health issues and back and joint pain. This acquisition complements our existing business and aligns well with our strategy of developing new services and moving into adjacent markets.
“The addition of Vita means that we are now able to meet people’s physical and mental health needs. Vita fits closely with the services we offer to corporate customers and gives us a good springboard for future growth. With its outstanding patient feedback, strong track record in winning contracts and proven management team, Vita is an excellent addition to our business and I look forward to welcoming our new colleagues to Spire.”
Hollywood Bowl plans major expansion
09:16 , Simon Hunt
Hollywood Bowl is preparing to increase the number of venuesit operates by more than half as it marked another year of solid growth.
The Hemel Hempstead-based business, which now runs 80 sites,said it now plans to open a further 15 in the UK by 2026 with the opportunity toadd another 30 to its estate in Canada.
Sales for the year to end September rose 11% to £215 millionwhile the firm said earnings were set to come in ahead of market expectations.
CEO Stephen Burns said: “It has been fantastic to see somany families in our centres. We’ve got a really healthy pipeline of sites. We’llopen at least four new centres this year and we’re confident we’ll have a couplemore to add to the list in the next few months.”
Shares rose 3% to 241p.
FTSE 100 under pressure, Rightmove down 9%
08:36 , Graeme Evans
The FTSE 100 index has followed yesterday’s 1.1% loss by dropping another 0.7% or 58.59 points to 7529.41, reflecting worries over the Middle East conflict and a protracted period of elevated global interest rates.
Rentokil Initial led the blue-chip fallers board, down 11% or 63.6p to 531.2 after it said its US business will not match expectations for this year due to near-term market uncertainty.
Rightmove also fell 9% or 49.4p to 526p amid the threat of greater competition after rival property portal OnTheMarket agreed a takeover by US property group CoStar.
Updates by London Stock Exchange and packaging group Mondi also left their shares down by 1% and 4% respectively.
A shortened risers board included car insurer Admiral, up 19p to 2450p following a reassuring trading update by All-Share listed Sabre Insurance.
The FTSE 250 index fell 0.6% or 109.18 points to 17,294.28, with Direct Line Insurance the best performing mid-cap stock after a rise of 3% or 5.25p to 162.35p.
Oxford Nanopore shares jump on billionaire investor
08:16 , Simon Hunt
Shares in Oxford Nanopore jumped 15% this morning after it reported a new billionaire investor.
The British biotech firm said it had received a £70 million investment from bioMérieux, owned by the french billionaire Merieux family, with the intention to increase its stake further to 3.5% over time.
"Through this partnership and this investment, the two companies intend to leverage Oxford Nanopore's ground-breaking nanopore-based IVD solution and bioMérieux's IVD expertise in R&D, Regulatory, Medical and Market Access," Oxford Nanopore said.
The Merieux family of biologists are descendants of Marcel Mérieux, an assistant to Louis Pasteur in the 19th century.
Hipgnosis fund considers kicking out Mercuriadis-led team
08:02 , Daniel O'Boyle
Hipgnosis Songs Fund’s board is considering kicking out Merck Mercuriadis to put somebody else in charge of managing its collection of hits by artists from Barry Manilow to 50 Cent.
The fund faces a crucial vote on its future, with a vote on the continuation of the fund set for 26 October. Ahead of that vote, its board has now launched a strategic review, which will consider a change in its management arrangements as one of many options.
The board said it had considered severing its agreement with Mercuriadis’ Hipgnosis Songs Management, which runs the fund, but that doing so without a new team in place would trigger a default. Instead, it will launch a review on a range of outcomes, including new management.
Rentokil warns on US business
07:46 , Michael Hunter
Rentokil Initial has warned that its US business will not reach its expectations this year, due to "near-term market uncertainty".
Shares in the FTSE 100 constituent fell over 77p to 517p in opening trade, a drop of almost 13%.
The pest control company is in the process of integrating the American firm Terminix into the group, having bought it in a deal worth £4.5 billion. It said the combination plans were on course today.
But it also warned that signing up new US customers was more difficult - "new residential customer acquisition was challenged by the macroeconomic backdrop", it said.
That means "the region's full year performance is anticipated to be marginally below our previous expectations", it added.
Rentokil said the overall group performance was "good". Revenue rose almost 60%, thanks to mergers and acquisitions. It made 31 "bolt-on" deals in the nine months to the end of September, buying firms with revenues of around £86 million.
It expects cost savings of $60 million this year as Terminix is consolidated into the company.
Netflix shares boosted by subscriptions surge, Tesla lower
07:32 , Graeme Evans
Netflix shares are set for a strong session after the streaming giant last night said it added 8.8 million new subscribers for higher-than-expected revenues growth of 7.8% in the third quarter.
Despite a challenging summer for the industry due to the combined writers and actors strikes, the US-based company lifted its operating margin guidance to the top end of its previous 18% to 20% expectations.
The strongest quarterly subscriber growth since 2020 follows a crackdown on account sharing and the launch of an ad-supported membership tier.
Shares closed 3% lower yesterday, but the release of the figures after the closing bell triggered a 13% rise in after-hours dealings.
Hargreaves Lansdown analyst Sophie Lund-Yates said: “The market reaction generated from these results is a sigh of relief, but Netflix needs to keep pushing hard to keep eyes on screens if the upswing is going to be maintained and built on.”
Tesla shares, meanwhile, fell 5% in response to the electric vehicle maker missing Wall Street’s quarterly sales and earnings estimates.
Asia stocks mirror Wall Street weakness, FTSE 100 seen lower
07:17 , Graeme Evans
The FTSE 100 index is set to remain in the red after leading US benchmarks closed yesterday’s session sharply lower, with the S&P 500 index down 1.3%.
The escalation of the Middle East conflict and a rise in the 10-year Treasury yield on expectations that US interest rates will stay high for longer contributed to the tech-led Nasdaq Composite falling 1.6%.
Yesterday’s unchanged UK inflation print of 6.7% put pressure on London shares, with Persimmon down 6% and Taylor Wimpey 4% lower as traders worried another Bank of England rate rise is on the cards.
The FTSE 100 index closed 1.1% lower, while the rates speculation pushed the 10-year gilt yield above 4.6% for the first time since early this month.
Asia stocks have tracked Wall Street lower this morning to leave the Hang Seng index down 2% and the Nikkei 225 off 1.7%. CMC Markets expects the FTSE 100 to open 26 points lower at 7562.
Brent Crude is trading 0.45% lower at $91.09 a barrel, while gold remains near to its highest level in three months at $1945 an ounce.
Recap: Yesterday's top stories
Wednesday 18 October 2023 23:06 , Simon Hunt
Good morning. Here's a summary of our top headlines from yesterday:
Sticky inflation unchanged at 6.7% in September increasing risk of interest rate hike in November. Business rates set to go up £1.7 billion next Spring
Oil price jumps $2 on latest Gaza tragedy
Britain’s biggest housebuilder Barratt Developments sees 40% slump in forward sales as higher mortgage rates bite
Vape maker Supreme drops bright packaging and names such as “Peach Dream” and “Sweet Strawberry” to deter underage vaping
Kin & Carta digital consultancy becomes latest quoted company to depart the London public markets through £203 million private equity takeover
Whitbread profits soar 44% as Premier Inn bookings jump 15% in first half of the year
Just Eat upgrades profit guidance amid stronger UK sales
William Hill owner 888, with 500 staff in Israel where it was founded, sees no impact from current crisis on its operations. Still expects profits to plunge on new safer gambling rules and punter-friendly football results
Crypto survey find UK market is bigger than France and Germany combined
