Yahoo Finance FTSE 100 Live: Index breaks 8000, UK inflation falls, Barclays results
The FTSE 100 crossed the 8000 barrier today, after a strong afternoon session.
It is the first time the FTSE has crossed a new multiple of 1000 since 2015, when it surpassed 7000 for the first time.
Earlier this morning, the UK’s inflation rate today fell by more than expected to 10.1%, compared with 10.5% the previous month, but shares were down in early trading.
An afternoon rally - as the pound declined against the dollar and euro - toook the FTSE beyond 8000.
FTSE 100 Live Wednesday
Inflation rate falls for third month in row
Barclays profits fall, £2.3m for ex-boss Staley
Mining giant Glencore reveals record profit
FTSE 100 passes 8000. What does it mean for you?
Wednesday 15 February 2023 17:01 , Simon English
What is the FTSE 100?
An index of the biggest 100 companies listed in London, which is owned and run by the London Stock Exchange.
The index began in January 1984 at the base level of 1000. Many of the companies in it are internationally focussed.
The US equivalent is the Dow Jones, which is even narrower than the FTSE 100 as a measure of wealth. It simply tells us how the biggest 30 companies in the world’s richest economy are faring. Usually pretty well.
Critics of it have said the index we really need is the Dave Jones. How is Dave doing?
Is the FTSE 100 passing 8000 good? For whom?
Richard Hunter at interactive investor says: “The number means little. However, the FTSE100 has been an investment destination over the last year, given its defensive qualities, some inflation-proof stocks, a reliable dividend yield and overseas earnings, where the strength of the US Dollar against Sterling has made those revenues more valuable on repatriation. During 2022, when markets were under severe pressure the FTSE100 managed to eke out a gain of 0.9% and, at 8000, is (would be) ahead by over 7% in the year to date. In addition, the upside in the market is a boost to the general wealth effect and the potential spending on goods and services which future disposals and proceeds can be put to.”
FTSE closes just short of 8000
Wednesday 15 February 2023 16:51 , Daniel O'Boyle
The FTSE’s initial spell above 8000 didn’t last long, as it closed at 7997.83 today,
Though it peaked at 8003.63, the FTSE quickly dropped back into the 7990s.
However, this was still a new end-of-day high. That means the FTSE has finished with a record close for five consecutive trading days.
Another record high, but not 8000 yet
Wednesday 15 February 2023 15:27 , Daniel O'Boyle
The FTSE broke another all-time record as it hit 7998.0, but it still remains just short of the elusive 8000 mark.
The afternoon rise in the blue-chip index took it ahead of yesterday’s 7995.87.
The latest rally comes as the value of sterling dips against other major currencies. The value of the pound declined by 1.8% today to $1.20. The pound was also down against the Euro, to €1.12.
FTSE creeps back towards 8000
Wednesday 15 February 2023 15:10 , Daniel O'Boyle
The FTSE 100 again threatened to break through the 8000 mark, rising to 7991.43.
While the index had been stable almost all day, investor sentiment picked up in the afternoon.
Yestday, the FTSE got within four points of 8000.
Flybe to be wound down as “complexities” prevent rescue deal
Wednesday 15 February 2023 14:31 , Daniel O'Boyle
Flybe will be wound down and its remaining 25 employees made redundant after administrators said the “complexities” of a sale prevented them from finding a way to save the ailing carrier.
Administrators David Pike and Mike Pink from Interpath Advisory said that there was “significant interest from a number of credible parties”, but it was not possible to get a deal over the line “in the available timeframe”.
As a result, the administrators will now attempt to sell specific rights, interests and assets that belonged to Flybe.
Signs of hope on inflation despite slow price falls
Wednesday 15 February 2023 13:27 , Jonathan Prynn
The inflation supertanker can seem agonisingly slow to turn.
Another slight fall in the annual CPI rate to 10.1% in January is progress for sure but the headline figure is a mere percentage point below the October peak.
And at the supermarket checkouts and in the energy bills coming in for January the cost-of-living crisis feels as intense as ever.
Yet there are good reasons to think the worst of the firestorm may well be over as winter turns to spring, Jonathan Prynn writes.
UK fintech investment drops dramatically in 2022
Wednesday 15 February 2023 13:02 , Daniel O'Boyle
UK fintech investment plummeted in 2022, according to new figures from KPMG.
Total investment in UK fintechs was $17.39 billion for the year, down by 56% from 2021.
The decline was especially dramatic in the second half of the year, with only $5.6 billion in investment.
“Despite the drop in both value and volume, it was a strong year for the UK fintech industry,” Karim Haji, UK and EMA head of financial services at KPMG, said. “The UK is a major global player, with investment in UK fintech only behind that of the US and Australia.”
FTSE up slightly at midday
Wednesday 15 February 2023 12:12 , Daniel O'Boyle
The FTSE was up slightly from yesterday’s close at noon today, at 7961.93.
Fashion brand Burberry and bottling company Coca-Cola HBC were the day’s top risers. On the other hand, Barclays shares tumbled 10% after its disappointing results this morning.
With the FTSE hovering right around yesterday’s end-of-day figure, a fifth consecutive record close could be on the cards.
Babcock wins £400 million contract for Skynet UK military satellites
Wednesday 15 February 2023 11:21 , Daniel O'Boyle
London-headquartered aerospace and defence giant Babcock International has won the £400 million contract to operate the Ministry of Defence’s Skynet satellite system.
The contract starts in March and will last six years. The first Skynet satellite launched in 1969 and its sixth phase is set to launch in 2025.
The system helps facilitate UK military communications.
“We are delighted to have been chosen to support this world-leading technological safeguard,” said Babcock CEO David Lockwood. “Skynet enables vital communications to the UK armed forces wherever they are.”
In total, the Ministry of Defence is expected to invest £6 billion on Skynet 6.
Freefall on wholesale gas market keeps pressure on energy companies to cut prices
Wednesday 15 February 2023 10:50 , Michael Hunter
The drop in the price of gas on wholesale energy markets has taken the price to levels last seen in at the end of 2021, piling further pressure on utility companies to cut household bills.
The London benchmark for the commodity closed under 130p a therm this week for the first time since Russia’s invasion of Ukraine, leaving it significantly under the peak around 850p hit in August at the heigh of supply fears due to the war.
Such high prices moved quickly through to household bills and became the main cause of the cost of living crisis and the wave of interest rate rises that have lifted the cost of mortgages and rents. They provoked an unprecedented government intervention to cap typical bills and also drove record, multi-billion pound profits for gas and energy companies.
Calls for the lower prices to be passed on are likely to grow in volume into the anniversary of the war at the end of this month. Energy costs remained a major part of consumer price inflation data out today, which slipped back to 10.1% from 10.5%, a small decline leaving it in double digits.
The core CPI data, which excludes food and energy, came in at 5.8%.
Dunelm rises on dividend cheer, FTSE 100 flat
Wednesday 15 February 2023 10:25 , Graeme Evans
Dunelm shares today rose 14.4p to 1183.4p after the homewares chain included £111 million of dividends alongside interim results.
Comparisons with last year’s strong trading meant interim profits fell 16.6% to £117.4 million, although this was ahead of some forecasts amid gains in market share.
The performance and health of Dunelm’s balance sheet means boss Nick Wilkinson has declared a 7.1% increase in the interim dividend to 15p a share alongside a special award of 40p. The payments are due to be made on 11 April.
Dunelm shares have enjoyed a strong run since declining to 659p last summer. Broker Peel Hunt, which has a price target of 1375p, said: “Medium-term growth prospects remain compelling, as do shareholder returns.”
Dunelm’s performance came during a tepid session for the FTSE 250 index, which edged up 70.13 points to 20,088.36. Other retail risers included Pets at Home, which lifted 5.8p to 375.8p after analysts at Berenberg upped their target price to 430p.
The FTSE 100 index was less than point lower at 7953.16 as uncertainty over further interest rate rises clouded optimism about a soft landing for the global economy.
On AIM, shares in recruitment firm Gattaca fell 9% as the specialist in science, technology, engineering and mathematics (STEM) roles said permanent hiring had shown signs of weakness since the turn of the year.
Chief executive Matt Wragg said: “We are conscious of softening in some external sectors, and permanent is likely to be impacted by a level of restraint around hiring, shifting candidate sentiment and, as such, slightly longer hiring cycles.”
Despite this, Wragg continues to see demand for STEM skills in core sectors and believes the shortage of candidates will play to his company’s strengths. For the six months to 31 January, he said revenues are expected to be 5% higher at £22.7 million.
The shares dropped 8p to 82.5p, but house broker Liberum has kept its target at 110p.
Barclays profits tumble, Staley row with FCA continues
Wednesday 15 February 2023 09:40 , Simon English
Jes Staley, the Barclays CEO forced to stand down in the wake of investigations into his relationship with Jeffrey Epstein, got nearly £2.3m from the bank last year.
Over his 12-month notice period he got £2 million in salary. There were also other benefits, such as pension and repatriation costs for moving back to the US.
Staley left following an investigation by the Financial Conduct Authority into how he had characterised his links to the notorious sex offender.
Staley always insisted he had been clear about having known and done business with Epstein, but that he knew nothing of his other activities.
The FCA report claimed Staley had not been entirely upfront. Staley is fighting the FCA report. Other monies perhaps owed to him by Barcalys are suspended. The full amount is hard to calculate but runs into many millions.
The annual report today said: “Pending further developments in respect of the regulatory and legal proceedings… no further remuneration decisions have been made with regards to his deferred share and LTIP awards which remain suspended.”
At the time of his departure, the bank said: “The board is disappointed at this outcome. Mr Staley has run the Barclays Group successfully since December 2015 with real commitment and skill.”
HL boss: I’m proud of the business I am handing over
Wednesday 15 February 2023 09:12 , Simon English
Departing Hargreaves Lansdown boss Chris Hill today served up a strong set of results that might calm the ire of co-founder Peter Hargreaves.
The outspoken Brexit tycoon made a scorching attack on the strategy of HL under Hill, saying the board “indulged in completely unnecessary irrelevant programmes” that just served as a distraction.
“It’s hardly surprising the shares have collapsed,” he added.
For the half year HL saw assets up 2.3% to £127 billion, while profits jumped 31% to £198 million. The dividend is also up neatly to 12.7p, which ought to please Mr Hargreaves.
It took on 31,000 new customers taking the total to 1.77 million.
End of lockdowns and price rises boost Heineken sales
Wednesday 15 February 2023 08:43 , Daniel O'Boyle
Heineken toasted the end of covid-19 lockdowns in 2022 as revenue grew by 21.2% to €28.7 billion, while price increases and the rise of its Birra Moretti brand also helped UK sales.
In the UK, net revenue was up by almost 20%, thanks to “the partial recovery of the on-trade, premiumisation and pricing,” while Birra Moretti became the country’s leading premium beer by value.
Globally, the brewing giant sold 25.69 billion litres of beer during the year. If poured into a container with the dimensions of a typical pint glass, the vessel would be easily the tallest structure in the UK at 509 metres.
Profit for Heineken was down year-on-year, but it noted that this was because its 2021 figures were boosted by remeasurement of the fair value of the 46% stake it held in India’s United Breweries Group before it acquired a majority shareholding that year.
Barclays and Glencore lead FTSE 100 lower, Hargreaves Lansdown surges
Wednesday 15 February 2023 08:20 , Graeme Evans
The 8000 threshold has fallen from view after a weaker-than-expected start to the session for the FTSE 100 index today.
London’s top flight dropped 22 points to 7931.85, driven by a 7% slide for Barclays after its £500 million buyback disappointed investors.
The stock fell 14.3p to 173p and caused shares in rivals Lloyds and NatWest to fall by 2% ahead of their own results in the coming days.
There was also an underwhelmed reaction to results from mining giant Glencore, which fell 3% or 13.8p to 502.10p. However, investment platform Hargreaves Lansdown jumped 5% or 49.6p to 997.4p in the wake of its half-year figures.
Dunelm sales improve 5%
Wednesday 15 February 2023 08:18 , Joanna Bourke
Sales at homeware chain Dunelm have been boosted by customers buying goods such as warmer bedding to help lower energy bills.
The FTSE 250 retailer, which has 179 stores, saw sales increase 5% to £835 million in the first half to December 31.
Pre-tax profit declined 16.6% to £117.4 million, due to inflationary impacts and a tough comparison: a year earlier there was bumper trading after all lockdown restrictions were fully lifted.
Chief executive Nick Wilkinson said: “We are all learning to live in a new, complex and rapidly evolving economic reality. Recognising this, our focus has been on ensuring that we continue to offer outstanding value to our savvy customers through a proposition which is committed to quality, at the right price, across an expanding range of relevant products. We believe that this is why we have continued to grow our sales, customer numbers and market share.”
Wall Street steady despite US rate rise fears, FTSE 100 seen flat
Wednesday 15 February 2023 07:57 , Graeme Evans
Hopes of a soft landing for the US economy ensured the S&P 500 index closed last night’s session broadly unchanged, even though yesterday’s hotter-than-expected inflation print of 6.4% raised the risks of more interest rate hikes.
Deutsche Bank noted today that it was only two weeks ago that the rates peak was being priced at around 4.80% and the December contract at 4.30%.
Strategist Jim Reid said: “Last night we closed at 5.27% for the July contract and 5.07% for December, both fresh highs for the cycle and up 7.3 basis points and 14.9 basis points on the day.”
However, a recent blockbuster jobs report has contributed to a more robust picture for the US economy than had been expected at the start of the year. This helped support the S&P 500 last night and meant the FTSE 100 remained in record territory at yesterday’s close, albeit down from the peak of 7996 seen earlier on Tuesday.
CMC Markets today expects the FTSE 100 index to open three points lower at 7950.
Inflation rate beats forecasts but still in double digits
Wednesday 15 February 2023 07:41 , Graeme Evans
Inflation eased for the third straight month to 10.1% in January, dropping from 10.5% in a fall that beat City forecasts for 10.3%.
The annual rate for the Consumer Prices Index published by the Office for National Statistics comes a day after the headline rate of inflation in the United States dropped to 6.4% from 6.5% the previous month.
Both sets of figures are unlikely to ease speculation about the need for further interest rate rises, particularly with labour market conditions still tight and the global economy proving to be more resilient than had been expected in the autumn.
Wealth Club investment analyst Nicholas Hyett said: "Is inflation still problematically high or is it now coming under control?
“You could argue for either, or even both, a sign of the confused picture for inflation at present. It won’t make life easier for the policymakers, and raises questions around the future course of interest rates in particular.”
Soaring energy prices help Glencore to record £28 billion profits
Wednesday 15 February 2023 07:30 , Daniel O'Boyle
Mining behemoth Glencore said “the unprecedented developments in global energy markets” helped lift its profits to a record $34.1 billion (£28.2 billion) in 2022.
Profit was up by $12.8 billion, as income from both its mining and commodity sales arms grew by more than 50%.
Glencore is the latest London-listed business to report several billion dollars more in profit as energy prices soared following Russia’s invasion of Ukraine. Oil giants BP and Shell combined to bring in almost £60 billion in profit.
The business reported $226.0 billion in revenue, up by 26%.
Barclays posts £7bn profit, ups dividend
Wednesday 15 February 2023 07:29 , Graeme Evans
Barclays today reported an annual profit of £7 billion, including a surplus of £1.3 billion in the final three months of 2022.
The figures are lower than in 2021 after Barclays made annual credit impairment provisions of £1.2 billion, whereas it released bad debt cover the previous year.
The total dividend for 2022 of 7.25p a share is up from 6p the year before and includes a 5p full year award. Barclays intends to launch a share buyback of up to £500 million, bringing the total for 2022 to £1 billion and a total capital return equivalent to about 13.4p a share.
Chief executive C. S. Venkatakrishnan said: “We are cautious about global economic conditions, but continue to see growth opportunities across our businesses through 2023."
Annual revenue at Kering tops €20 billion, but fourth quarter sales decline
Wednesday 15 February 2023 07:26 , Joanna Bourke
Gucci-owner Kering has recorded group sales of €20.4 billion for last year, up 15%, and 9% higher on a comparable basis, but fourth quarter sales declined.
The French luxury goods group, which is led by François-Henri Pinault and also behind brands such as Alexander McQueen and Saint Laurent, said total sales in the final three months of 2022 fell 2%.
On a comparable basis the fourth quarter drop was 7%, “with mixed performances” across brands and regions.
The chief executive said: “All our Houses posted record revenues and contributed to higher operating income in 2022. But these good performances were not uniformly up to our ambitions and potential.”
Although annual revenue at Gucci rose, 8% as reported and 1% on a comparable basis, it saw a 14% comparable tumble in the fourth quarter. It said it was significantly affected by the situation in China, where Covid-19 disruptions took place, during the period.
More to follow...
Fintech unicorn Checkout.com forges payments deal with NewDay
Wednesday 15 February 2023 07:22 , Simon Hunt
Fintech unicorn Checkout.com has strengthened its grip on the UK payments market after signing a deal with NewDay, the fifth-largest card issuer in the UK processing £6 billion consumer credit products annually.
NewDay has close to five million customers in the UK, providing credit products for leading merchants such as AO.com, Argos and John Lewis. The deal, which is already live, sees NewDay process its card processing through the Checkout.com platform.
The new partnership will see NewDay streamlining its payment process, operations and reporting.
Recap: Yesterday’s top stories
Wednesday 15 February 2023 06:46 , Simon Hunt
Good morning. Here’s a summary of yesterday’s top stories:
The scale of misconduct by Amigo Loans was laid bare today after the Financial Conduct Authority said it would have imposed a £73 million fine, were it not for the poor financial state the subprime lender was in. It follows a months-long investigation by the watchdog, which found the firm had poorly-designed IT systems with flaws in its assessment of affordability and creditworthiness.
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.
