Yahoo Finance FTSE 100 Live: CBI dismisses ‘a number of people’; Credit Suisse outflows haven’t stopped
Results from collapsed bank Credit Suisse today revealed the scale of the run on assets during last month’s industry turmoil.
The last set of figures before its expected takeover by UBS showed £55.2 billion of assets left the bank during the first quarter of the year.
Meanwhile, it emerged today that UK-listed companies issued 75 profit warnings between January and March, the highest first quarter total since the early stages of the pandemic in 2020.
FTSE 100 Live Monday
Rishi Sunak takes questions from business leaders
Credit Suisse reveals asset outflows
Medica latest private equity bid target
CBI president: We failed to sack sexual harassers
17:35 , Daniel O'Boyle
The president of the scandal-hit Confederation of British Industry (CBI) said the organisation failed to sack those accused of sexual harassment when it should have done so, creating a culture where women were reluctant to come forward with complaints.
Brian McBride, who became president in June of last year, addressed a number of failings at the lobby group as law firm Fox Williams released its report on misconduct at the CBI.
Law firm finds ‘obstacles’ to reporting CBI misconduct
16:46 , Daniel O'Boyle
Law firm Fox Williams has released the summary of its report on misconduct at the CBI.
Fox Williams said that it did not hear evidence that the lobby group’s boardor senior leadership was aware of many of the incidents of misconduct that were raised in an article in the Guardian last month.
However, it said that this was due to the fact that staff did not come forward amid “obstacles to the communication of concerns about employee behaviour from the HR team to the executive committee or to the board level”.
16:36 , Daniel O'Boyle
The FTSE 100 again finished the day almost exactly where it started, moving by less than 15 points from open to close for the fourth straight day.
The index of London blue-chips closed at 7912, which was down by just two points from Friday’s close.
M&G, JD Sports and Burberry were ammong the biggest gainers, while Ocado, Fresnillo and BT were among the losers.
London founders of Getty Images to pocket almost $2 billion from sale to private investor
16:20 , Daniel O'Boyle
The founders of Getty Images are set to pocket almost $2 billion (£1.6 billion) from the sale of their stake in the company after activist investor Trillium Capital said it had made a cash offer to take the company private.
Trillium, which already owns 500,000 shares in the New-York listed business, has offered to buy the rest at $10 each in a deal which values the company at just shy of $4 billion.
US shares start with modest gains
15:29 , Daniel O'Boyle
Shares in US companies have started the day with modest gains, in another big week of reporting on Wall Street.
The S&P 500 is up 0.2% to 4141, approaching its highest point of the year. The Dow Jones is up by 0.1% to 33854.63 while the Nasdaq is level at 12,069.40. First Republic is again among the biggest movers, gaining 7.9% to $15.36.
How to be a CEO podcast: How Atom Bank made the four-day week work, with Anne-Marie Lister
15:06 , Daniel O'Boyle
When you’re rushing to become a CEO, or have the job and are just trying to stay on top of it all, the idea of a day off may be laughable at times.
But securing a fair work/life balance can be an achievement in itself.
How’s this for an idea: A four-day week?
A Lidl in Knightsbridge? Discount supermarket eyes new central London stores
14:39 , Daniel O'Boyle
Lidl has published its longlist of possible sites for new shops, with Mayfair, Westminster and Knightsbridge among the possible locations.
The list includes 247 sites in London and the immediately surrounding areas. While every borough was represented, the list did show Lidl’s ambition for another store in central London.
Currently, Lidl’s Totternham Court Road shop is its only location within two-and-a-half miles of Charing Cross. However, the current list includes 31 sites between the boroughs of Kensington & Chelsea, Westminster, Camden, Islington and the City.
Diptyque heads to New Bond Street for latest London store
14:24 , Daniel O'Boyle
High-end French candle brand Diptyque has agreed a deal to open a new store on London’s New Bond Street.
Diptyque, which also sells perfumes and hand lotions has signed for 5,000 square feet and will trade over three floors at 107 New Bond Street.
The retailer has six stores in the capital, and its next branch sits within a development of four buildings owned by a private Hong Kong investor.
Profits slide at Gymshark
13:22 , Simon Hunt
Profits at Gymshark slid just under 40% in the year to July 2022 as the online sports retailer wrestled with soaring production costs and squeezed consumer incomes.
The Birmingham-based business, which last year opened its first physical store on London’s Regent Street, posted a 38.7% drop in profits as it was forced to slash prices despite a jump in the cost of raw materials and shipping.
Revenues in the year rose 21% to £485 million, led by a 25% jump in turnover in the US to £228 million. Sales growth in the UK was more muted, rising just under 3% to £89 million.
Gymshark said: “Apparel businesses have been hit by rising input costs in their supply chains, including rising raw materials, fuel and labour costs and the impact of increased freights and logistics costs.
“The consumer has had more opportunities to apply discretionary spend to entertainment and travel, but inflation and rising costs are also affecting spending.”
Pubs to pull 62 million pints over Coronation bank holiday
12:42 , Daniel O'Boyle
British pubs will pull 62 million pints over the coronation bank holiday weekend, but the boss of one of the country’s biggest chains warned the future of the sector is “far from certain”.
The British Beer and Pub Association expects 62 million pints to be sold over the weekend, bringing in £71 million for the industry.
Greene King expects 1.8 million to be pulled at its 1,600 pubs, but its CEO Nick Mackenzie said more must be done to protect the sector as it struggles with inflation.
“We must not forget that the future of the Great British Pub is far from certain,” he said.
Italian chain Prezzo to shut 46 restaurants with 810 jobs set to go
12:06
Prezzo is to shut 46 loss-making restaurants after being hit hard by soaring energy and food costs.
The Italian restaurant chain has said about 810 workers are at risk of redundancy as part of the overhaul.
Bosses at the private equity-owned businesses said the cuts, which are part of a broader strategic review, will affect sites where “the post-Covid recovery has proved harder than we had hoped”.
LVMH becomes Europe’s first half-trillion-dollar business
11:13 , Daniel O'Boyle
Luxury fashion and alcohol business Moët Hennessey Louis Vuitton (LVMH) has become Europe’s first business to be worth more than $500 billion, as its share price rose today.
The business, which owns a number of the world’s top high-end fashion brands, has been off to a strong start this year, as easing of Covid rules in China have helped fuel a boom in luxury fashion.
Just under half of LVMH is owned by Bernard Arnault, through a combination of shares owned directly and via other businesses such as Dior. That stake makes him comfortably the world’s richest person.
Thames ‘supersewer’ nears completion as cost climbs to £4.5bn
11:02 , Jonathan Prynn
The huge “supersewer” that will stop the vast majority of discharges of effluent into the Thames is 90% complete and will cost a total of £4.5 billion, an investor report revealed today.
The 15-mile tunnel will start diverting sewage away from the river next year and is expected to be fully operational by 2025 according to Tideway, the company behind the infrastruture. The latest estimate of the final cost is a 2% increase on the previous figure.
FTSE 100 weaker as oil stocks struggle, JD Sports Fashion up 2%
10:28 , Graeme Evans
The FTSE 100 index is struggling today as investors ready for a big week of corporate earnings on both sides of the Atlantic.
Wall Street’s Microsoft and Facebook owner Meta Platforms and Barclays, Unilever and Associated British Foods in the UK are among the heavyweights due to provide insight into current trading conditions and prospects for 2023.
As well as the corporate updates, US first quarter GDP numbers on Thursday will highlight how the rapid tightening in Federal Reserve monetary policy is impacting demand.
With more interest rate rises forecast, the worry is that the world’s largest economy will start shrinking and have a knock-on effect on demand for goods around the globe.
Susannah Streeter, head of markets at Hargreaves Lansdown, said today: ‘’A forecast deterioration in the health of the global economy is weighing on minds, pushing equities lower as investors mull the impact of further punishing rate hikes.”
Oil prices have reflected the uncertain outlook in recent sessions, with last week’s 6% slide for Brent crude futures followed by another dip today.
This put BP and Shell under more selling pressure as the commodities-heavy FTSE 100 index weakened 12.87 points to 7901.26. The biggest top flight fall came from mining giant Glencore, which eased 7.35p to 483.55p after last week’s production update.
With Asia markets also enduring a lacklustre session, there was more pressure on London-listed insurer Prudential. Its shares fell 3p to 1148.5p even though Deutsche Bank backed the Hong Kong-based company with a new price target of 1550p.
They noted that the stock had only risen 2% so far this year, despite the re-opening of the China border and the benefit of a generally stronger equity market.
On London’s blue-chip risers board, an upbeat note from Jefferies ahead of the UK banking results season benefited shares in Lloyds Banking Group as the lender lifted 0.3p to 49.2p.
Retailers also enjoyed a robust session, with JD Sports Fashion up 2% or 3.05p to 168.35p and Next 84p stronger at 6878p.
The UK-focused FTSE 250 index edged up 29.84 points to 19,299.85, led by a rise of 3% or 86p to 2864p for Wizz Air after analysts at Citigroup upgraded the low-cost airline.
UK firms prioritise fintech despite declining valuations
09:48 , Simon Hunt
Financial services firms in the UK are ramping up their focus on fintech with industry experts taking up more and more roles on company boards, new research has found.
At least 28% of UK financial services firms now have FinTech expertise on their board, relative to 19% of peers across Europe more broadly, according to data from the EY Boardroom Monitor shared with the Standard.
More than half (54%) of investors consider FinTech experience to be integral to a financial services company’s investment case.
Chris Woolard, UK fintech leader at EY, told the Standard: “The UK is leading Europe in terms of appointing board directors with FinTech experience.
“Across all sectors however, directors with FinTech experience remain a small minority relative to more traditional professional spheres such as law or accounting, and financial services boards must ensure that they proactively consider the increasing requirement for this skillset.
“By effectively harnessing the potential of digital transformation, the UK financial services industry can take a genuinely world-leading approach, while remaining competitive with disruptors in their sectors.”
The research comes amid a turbulent period for the fintech sector as it wrestles with high interest rates, squeezed margins and a write-down in company valuations.
London-based Revolut, which was valued at $33 billion in a 2021 funding round, last week saw its valuation written down by almost 50% by shareholder Schroders, while embedded finance firm Railsr, which last year neared a $1 billion valuation, was sold for less than £500k last month in an emergency deal to swerve bankruptcy.
Keystone Law CEO says demand for lawyers is easing
09:26 , Daniel O'Boyle
The CEO of law firm Keystone Law said demand for lawyers is cooling off from the “exceptionally high” levels of the post-Covid era, amid a slowdown in City dealmaking.
James Knight said demand for corporate lawyers rocketed after lockdowns ended, which was driving legal salaries up, but this was now coming to an end.
“It’s cyclical,” he said. “It can’t remain red hot forever.
“We haven’t seen the phase where law firms are making redundancies. Maybe we won’t, it’s hard to predict.”
He added that a slowdown in demand could be beneficial to Keystone, as it uses self-employed lawyers whose pay is mostly based on their own fees, so it can fare better when salaries are lower.
The firm reported revenue of £75.3 million for the year to 31 January, up by 8.1%, and profit of £9.2 million, up 6.3%.
Keystone shares dipped by 3p to 465p today.
Rishi Sunak promises to open up procurement to small business
08:44 , Simon Hunt
Rishi Sunak has said he plans to open up governmnent procurement contracts to small businesses by tearing up rules over procurement applications.
“As prime minister I’m focused on creating the right conditions for your business to succeed. I believe the most important thing I can do is listen to businesses big and small,” he said.
The PM also said he had expanded the government’s global talent visa to include AI rules, and would be funding “hundreds if not thousands” of AI courses.
PM calls for regulatory streamlining for life sciences
08:42 , Daniel O'Boyle
The Prime Minister said he wanted to see a more “nimble” regulatory system for life sciences in order to springboard growth.
In response to a question from GlaxoSmithKline CEO Dame Emma Walmsley, Sunak said more simplified regulation was the key to unlocking growth in tech and life sciences.
“We need to look at how we can change our regulatory system, especially after Brexit, so we can be nimble, we can be agile and we can be the first to take advantage of changes,” he said.
FTSE 100 down as miners struggle, ASOS off 4%
08:34 , Graeme Evans
Glencore and BP shares have fallen 2% as fears over the outlook for global demand continue to put pressure on commodity prices.
Anglo American and Shell also dropped by more than 1% to leave the FTSE 100 index 13.96 points lower at 7900.47 in early dealings.
Other fallers included Prudential, which dropped 11p to 1140.5p despite analysts at Deutsche Bank raising their price target to 1550p.
The FTSE 250 index retreated 25.04 points to 19,244.97, with fast fashion group ASOS down 4% or 33.8p to 750.6p. Wizz Air rose 3% or 88p to 2866p.
Rishi Sunak takes questions from business leaders on LinkedIn
08:25 , Simon Hunt
Rishi Sunak is about to begin a live Q&A on LinkedIn with members of the business community, the first of its kind he has hosted as Prime Minister.
Accesso makes $10 million ski resort tech acquisition
08:03 , Daniel O'Boyle
Queueing software provider Accesso technology has acquired Canadian ski resort tech supplier Paradocs for $10 million.
Accesso will pay $9 million in cash and $1 million in shares for the business, which serves 48 resorts in Canada and two in the US.
“Accesso is passionate about serving the ski industry, and incorporating Paradocs’ specific expertise and experience into our offering is a powerful step forward in addressing the unique and evolving technology demands of the burgeoning ski market,” Accesso CEO Steve Brown said.
“Adding this contemporary and powerful solution to our offering supports Accesso’s long-standing commitment to serving as the industry’s premier ski solutions provider.”
FTSE 100 seen lower at start of big results week
07:46 , Graeme Evans
The FTSE 100 index is expected to open slightly lower this morning as attention turns to the start of London’s first quarter results season.
This week will see figures from the likes of Barclays, GSK and Reckitt Benckiser, with Meta Platforms and Alphabet among the tech heavyweights reporting on Wall Street.
The FTSE 100 added 0.2% for a fourth consecutive weekly rise on Friday, but CMC Markets expects the top flight to open 14 points lower at 7900 this morning.
It follows a mixed session for Asia markets, while the price of oil continues to come under pressure after Brent crude futures today dipped 1.5% to $80.48 a barrel.
Medica becomes London’s latest private equity target
07:43 , Daniel O'Boyle
Radiology firm Medica has become the latest London-listed company to be subject of a private equity takeover, agreeing a £269 million deal to be sold to IK Partners.
IK would pay 212p per Medica share, 32.5% more than its closing share price on Friday.
The private equity group, founded in Sweden but now headquartered in London, said Medica would be better able to expand internationally in countries like the US with funding from private markets.
“The board of Medica believes that the offer represents an attractive and certain value in cash today for Medica shareholders which reflects our reputation as a leading, high-quality teleradiology and wider telemedicine provider with a compelling service offering,” Medica chairman Roy Davis said.
“The board of Medica believes that IK Partners is a strong and credible partner for the business and is well positioned to support its next phase of development, including accelerating investment in the company which will benefit our customers and their patients going forward.”
Credit Suisse Q1 outflows revealed
07:30 , Graeme Evans
Collapsed bank Credit Suisse today revealed asset outflows of 61.2 billion Swiss francs (£55.2 billion) for the first quarter.
The run accelerated amid the turmoil triggered by the failures of Silicon Valley Bank in the US towards the end of March.
In its last set of results before the completion of a state-backed rescue by UBS, the bank said: “Credit Suisse experienced significant net asset outflows, in particular in the second half of March. These outflows have moderated but have not yet reversed as of 24 April.”
The bank’s wealth management division reported assets of 502.5 billion francs (£453.1 billion), down from 707 billion francs a year earlier.
Surge in first-quarter profit warnings amid economic uncertainty
07:14 , Simon Hunt
The number of profit warnings at UK-listed companies has soared to 75 between January and March 2023, the highest first quarter total since the early stages of the pandemic in 2020, new research has found.
More than a third (35%) of profit warnings cited delayed, reviewed, or cancelled contracts, up from 21% in the same period in 2022, according to research by EY, as customers paused or cut spending amid volatile and unreliable demand.
Of the 31 companies that have issued three warnings since the start of 2022, 29% have since delisted or are in the process of being sold. This marks a greater-than-average market dropout rate, as typically just one-in-five companies delist within a year of their third warning, most due to insolvency.
Jo Robinson, EY-Parthenon Partner, said: “This economic uncertainty risks prolonging recovery, even as forecasts improve. Many companies may struggle to build momentum as they contend with increased working capital demands and finance costs.
“We would normally expect to see insolvency activity peak nine to twelve months after a profit warning peak, so the coming year will be crucial. While the UK economy appears to be turning a corner, recovery is not guaranteed. Businesses should continue scenario planning and building solid operational and financial foundations to withstand further shocks and capitalise on growth.”
