Yahoo Finance FTSE 100 Live: Shares up despite US uncertainty, IMF predicts weakest global growth since 1990
The UK housing market continues to show resilience after mortgage lender Halifax today reported an average property price rise of 0.8% in March.
On an annual basis, house prices were 1.6% higher than a year ago, slowing from 2.1% in February and the weakest rate of annual growth since October 2019.
Prices have fallen markedly since June 2022’s annual peak of 12.5%, although Halifax said the latest figures pointed to relative stability in the housing market so far in 2023.
FTSE 100 Live Thursday
House prices up 0.8% in March
Shares stronger despite US uncertainty
World Chess joins stock market in £40m IPO
US shares down
15:22 , Daniel O'Boyle
Shares have dipped on Wall Street this morning, after larger-than-expected jobless claims.
The Dow Jones is down 0.2% to 33409, while the S&P 500 also fellby 0.2%, to 4081. The Nasdaq initially fell by 0.8%, but recovered and is now down by 0.3% at 11958.
The Bureau for Labor Statistics annnounced today that there were 228,000 jobless claims last week, more than the expected 200,000.
IMF expects weakest growth since 1990
14:05 , Daniel O'Boyle
The International Monetary Fund (IMF) said that global growth over the next three years will come to just 3 per cent, the lowest figure since 1990.
In a speech in Washington DC, managing director Kristalina Georgieva said growth in the medium term would be well below the 21st-century average.
“This makes it even harder to reduce poverty, heal the economic scars of the Covid crisis, and provide new and better opportunities for all,” she said.
City comment: Summer may still be chilly for the British economy
13:48 , Daniel O'Boyle
The UK economy has entered the second quarter of 2023 — and the new financial year — in far better shape than might have seemed possible six months ago in the turbulent aftermath of Kwasi Kwarteng’s mini-Budget.
Recession has thankfully been avoided, unemployment has remained at close to record lows, consumer spending has proved resilient, the pound is one of the year’s strongest performing major currencies, and the stock market has recovered from its Silicon Valley Bank-induced fit of the vapours. It could all be a lot worse.
Tentative start expected on Wall Street
13:24 , Daniel O'Boyle
US stocks are set for very little early movement today as the country awaits key jobs data.
The S&P 500 and Dow Jones Index are both set to rise by less than 0.1%, according to futures markets, with investors tentative ahead of tomorriow’s non-farm payrolls report and today’s unemployment stats.
Research yesterday from ADP suggested a significant slowdown in the labour market in March,, after many months of stronger-than-expected figures.
London house prices to ‘fall 10 per cent by autumn’ as interest rate rises send mortgage payments soaring
13:19 , Daniel O'Boyle
London home owners were today warned of a 10 per cent slump in property prices by the autumn as higher interest rates send mortgage payments soaring.
Leading City forecaster Samuel Tombs, chief UK economist at research firm Pantheon, said the capital is particularly vulnerable to a slump because London buyers have to take on such large loans to scramble on the property ladder.
In a UK Housing Watch analysis of the market he said prices nationally would fall eight per cent “peak to trough... with the bottom coming in the autumn”.
Helical warns of shortage of top quality London office space until 2030
13:07 , Daniel O'Boyle
Property company Helical today warned that the chronic shortage of high quality new or refurbished office space in central London will last “for the rest of this decade.”
In a trading update the company said “for well located, highly sustainable offices with good amenities, which are essential in attracting and retaining the top talent, is enabling landlords with the best buildings to command premium rents.”
Amazon faces another competition probe
12:46 , Daniel O'Boyle
The Competition and Markets Authority (CMA) has launched an investigation into Amazon’s £1.4 billion acquisition of Roomba maker iRobot, marking the second time in two days that authorities have raised competition concerns about the tech giant.
The monopolies watchdog will look into whether the deal will result in a “substantial lessening of competition within any market or markets in the United Kingdom for goods or services”.
Ofcom said it would refer Amazon’s cloud computing arm, alongside Microsoft, to the CMA yesterday for making it too difficult for customers to switch cloud provider.
Women bear brunt of cutbacks as pay gap worsens at UK tech giants
12:09 , Simon Hunt
The scale of UK tech’s gender problem was laid bare today after an Evening Standard analysis found a large swathe of the sector’s biggest names have recorded an increase in their gender pay gap over the past year.
Just one out of a sample of ten of the largest firms had successfully narrowed their pay gap, the analysis suggests, in signs women have borne the brunt of the fallout from budget cutbacks and staff layoffs in the sector over recent months.
Fintech giants Atom Bank and Zopa were among the worst performers of those analysed by the Standard, posting increases in median pay gaps to almost four times the UK average, at 36% and 37% respectively.
Monzo – which previously had a below-average median hourly pay gap of 4%, has seen it more than double in the past year to 9%.
Payments firm GoCardless saw its gap widen from 20% to 24%, while Thought Machine, a £2.2 billion online banking platform, has failed to file a gender pay report by the statutory deadline, government records suggest.
The average median wage difference by gender in the UK is 9.4%.
Westminster bids to clean up ‘laundromat for dirty money’ reputation
11:30 , Jonathan Prynn
Westminster council bosses today launched a fresh initiative to rid London of its reputation as one of the leading dirty money laundering havens of the world.
The Labour-controlled authority has teamed up with major West End business organisations New West End Company and Heart of London Business Alliance as well as campaign group the Fair Tax Foundation in a new front to counter the capital’s London laundromat image as a place where properties and businesses can be used to recycle money “of questionable origin” with impunity.
FTSE 100 rallies, TUI shares jump 10% on bookings optimism
10:30 , Graeme Evans
Recession jitters ahead of a hotly-anticipated report on the state of the US jobs market failed to keep investors on the sidelines today.
The FTSE 100 index rose by a better-than-expected 35.85 points to 7698.79, even though the usually market-moving non-farm payrolls report is out tomorrow and is likely to provide a big steer on whether US policymakers can pause interest rate hikes.
Wall Street is now 50-50 on whether the Federal Reserve’s May meeting will see another rise after this week’s economic updates added to America’s recession fears.
London traders will have to wait until Tuesday to react to the US jobs report, but the delay failed to prevent them taking new positions as stocks including BT Group and Barclays rallied by 2%. Betting company Entain topped the risers board, up 27.5p to 1281.5p.
The FTSE 250 index also improved 43.46 points to 18,644.88, led by a big jump for travel company TUI after it reported encouraging booking trends ahead of the Easter holiday.
Chief executive Sebastian Ebel said: “We anticipate capacities to be close to pre-pandemic levels, we expect a good summer 2023."
Shares surged 10% or 56.4p to 613.6p.
Ukraine-based iron ore pellet producer Ferrexpo also lifted 6p to 116.6p after it reported that output doubled in the first quarter, reflecting the restart of a second pelletiser line as electricity supplies improved.
Elsewhere, THG shares got a much-needed boost as the e-commerce company’s Ingenuity platform unveiled a major client win that will see it provide website services for the AllBeauty.com and Fragrance Direct brands of retailer Maximo.
The 10-year partnership is expected to mean an additional £150 million a year of merchandise value. Broker Liberum said: “This is a positive sign which shows that the shift in Ingenuity strategy to focus on bigger clients is starting to bear fruit.”
THG shares rose 2.5p to 66.2p, still a far cry from the 500p seen when the Hut Group business founded by entrepreneur Matt Moulding joined the stock market in 2020.
On AIM, Gear4Music shares fell 5.5p to 82.5p after it said cost-of-living pressures had caused customers to defer spending on discretionary items such as musical instruments.
The weaker demand during February and March means earnings for the year just ended will now be between £7.3 million and £7.7 million, down from £11 million the year before.
Tech job squeeze hits Robert Walters
10:10 , Simon English
A DROP off in tech jobs hit returns at Robert Walters, the City recruitment firm where the eponymous founder is soon to step down after record profits last year.
With Microsoft, Google and the rest hacking back thousands of jobs, Robert Walters warned there has been a “slower start” to the year.
Income was up 4% in the quarter to March at £102.4 million.
For last year, revenue had passed £1 billion leading to profits of £55.6 million, as Walters said he would move on after 38 years.
Today it reported “muted” activity in London and other regions across the UK, as firms face pressure from continued high levels of inflation.
The firm also said that UK technology recruitment was knocked by a continued “drip-feed of lay-offs across the industry”, which have included thousands of jobs being axed by Amazon, Meta and Google’s parent firm Alphabet.
Walters said: “It is worth noting that recruitment market fundamentals such as vacancy levels and salary inflation remain relatively robust.”
He added: “As reported with our recent year-end results, the market uncertainty we experienced in the latter stages of last year has tipped over into the first quarter of 2023.
“Our businesses in Europe, the Middle East and South America held up relatively well whilst Asia Pacific and the UK experienced single digit dips in net fee income albeit against tough and record prior year comparatives.”
Most finance bosses no longer highly uncertain about future outlook
09:56 , Daniel O'Boyle
The majority of UK CFOs no longer expect a high level of uncertainty over the future of their businesses, according to the Bank of England.
The Bank’s monthly Decision Maker Panel survey - which asked 2,403 finance bosses about their future outlook - found that 47% believed the level of uncertainty was either high or very high, down from 53%.
Inflation expectations for this time next year also eased, by 0.1 percentage points to 5.6%. Three-year-ahead expectations were slightly up, though.
Guinness Partnership and Countryside join forces for £400 million Tolworth redevelopment
09:21 , Daniel O'Boyle
Housebuilders the Guinness Partnership and Countryside Partnerships have formed a joint venture for a £400 million housing project in Tolworth.
The two companies will jointly deliver Phase Two at Signal Park, a £400m redevelopment plan.
“This is a fantastic scheme to be delivering in collaboration with The Guinness Partnership,” Countryside Partnerships CEO Steven Teagle said. “We look forward to working together to provide a diverse mix of new housing tenure for Tolworth.
“As a partnerships-based business with a track record of delivering successful large-scale schemes, we are committed to building highly collaborative relationships with our partners and stakeholders.”
Mining stocks lead FTSE 100, Ferrexpo up 3%
08:32 , Graeme Evans
Commodity-focused stocks have given a lift to the FTSE 100 index, with London’s top flight up by a better-than-expected 0.4% or 30.75 points to 7,693.69.
Anglo American shares are at the top of the risers board after a gain of 2%, with Glencore, Shell and Rio Tinto up by around 1%.
It was a mixed session for housebuilding stocks despite today’s robust monthly house price figures from mortgage lender Halifax. Barratt Developments fell 6.5p to 445.4p but Persimmon added 11p to 1215p.
The FTSE 250 index improved 46.68 points to 18,648.10, led by a 3% rise for Ukraine-based iron ore pellet producer Ferrexpo.
Its output doubled in the first quarter after an improvement in the supply of electricity enabled the restart of a second pelletiser line.
FCA shuts down WealthTek over “serious” failings
08:11 , Daniel O'Boyle
The FCA today ordered investment manager WealthTek to be shut down, after finding “serious regulatory and operational issues”.
The City watchdog said it took “urgent steps” to appoint interim managers to take over the firm, while police in Northumbria arrested a man because of these concerns, which it did not outline.
The FCA said it later interviewed the individual under caution.
“The FCA is in close contact with the firm and the interim managers regarding the fair treatment of customers and further information will be made available by them in due course,” the regulator said.
Gear4Music taking “decisive action” as inflation hits musical instrument sales
07:47 , Daniel O'Boyle
Musical instrument shop Gear4Music is taking “decisive action” to keep the company funded after its profits fell in the 12 months to 31 March.
The group’s sales came to £152 million, up slightly, but its profit will fall between £7.3 million and £7.8 million, down from £11 million last year.
It blamed the drop on inflation, which has made customers less willing to buy non-essentials like musical instruments.
As well as the unspecified decisive actions, Gear4Music announced the launch of a second-hand trade-in system.
Recession fears hit US shares, FTSE 100 seen flat
07:43 , Graeme Evans
US recession fears meant Wall Street closed lower last night, with the S&P 500 index down 0.3% in its first back-to-back decline in over three weeks.
The Nasdaq also lost 1% despite the chances of further interest rate hikes by the Federal Reserve appearing to recede as the US economy begins to slow.
The next Fed meeting is in May, with Deutsche Bank today reporting that Wall Street futures now put the chance of a rate hike at 47% compared with 70% earlier in the week. The change reflects a cooler labour market, as well as this week’s lacklustre PMI releases on economic activity.
Markets are likely to remain in risk-off mode ahead of Friday’s US non-farm payrolls data, with CMC Markets forecasting the FTSE 100 index will open three points lower at 7660.
World Chess checks in to London market with £40 million IPO
07:26 , Simon Hunt
World Chess is to join the London main market today in a move that is set to value the company at £41.7 million.
The firm, which has offices are in the landmark Royal Exchange building, organises a number of global chess championships in London and New York and plans to take chess into the mass market through its new commercial approach to chess competitions by introducing new products and concepts into the sport.
CEO Ilya Merenzon said: “The completion of our IPO comes at an exciting time for chess.
“The number of players and spectators of the sport is growing and with this new commercial opportunities are opening up. Using our public profile and position as a public company, we are well-placed to capitalise on these opportunities and grow World Chess.”
House prices up 0.8% in March, London prices flat year-on-year
07:20 , Graeme Evans
The average house price increased by 0.8% in March, following on from the 1.2% rise seen in February as the property market continues to show signs of resilience.
Mortgage lender Halifax added that the annual rate of house price growth slowed to 1.6%, which compares with 2.1% for the previous three months in a row and the 2022 peak of 12.5% seen in June.
The typical UK property now costs £287,880, with house prices up in all UK regions last month though the annual rate of growth has slowed in most areas. Average house prices in London are up very slightly on this time last year, with the typical property now costing £537,250.
Halifax said the latest figures continue to suggest relative stability in the housing market at the start of 2023.
Kim Kinnaird, director of Halifax Mortgages, said: “The principal factor behind this improved picture has been an easing of mortgage rates.
“The sudden spike in borrowing costs that we saw in November and December has now been largely reversed, and while rates remain much higher than the average of the last decade, across the industry a typical five-year fixed rate deal (75% LTV) is down by more than 100 basis points over the last few months.”
US tech firm Fadel to list on AIM market in boost to London’s tech credentials
07:01 , Simon Hunt
A small New York-based software company is to list on London’s AIM market today in a boost to the exchange’s tech credentials.
Fadel Partners, which provides royalty management software to the likes of Pearson, L’Oreal and Marvel Entertainment, is set to join the exchange today under the ticker FADL with a market cap of around £30 million.
The move is a rare example of a US-based tech company choosing to list on public markets in the UK and stands in contrast to a number of UK-based firms who have said they are mulling a New York listing in recent weeks.
CEO Tarek Fadel said: “The successful completion of our IPO represents the beginning of a new chapter and this investment will allow us to expedite our growth strategy to scale alongside the rapidly expanding digital content and IP market and to capitalise on the significant opportunity available to us.
“We believe that AIM is a natural fit for FADEL as it has a proven track record for helping technology companies achieve their growth ambitions.”
Recap: Yesterday’s top stories
06:50 , Simon Hunt
Good morning. Here’s a summary of our top stories from yesterday.
UK regulator Ofcom said it would refer the cloud market to the UK competition watchdog after uncovering what it called “concerning practices” by key market players Amazon and Microsoft during an investigation.
Japanese global food company Toridoll has unveiled a £93.4 million takeover deal for the London-founded restaurants business behind The Real Greek and Franco Manca brands.
The UK’s new car market has grown for eight consecutive months, figures show. Some 287,825 new cars were registered last month, up 18.2% on March 2022, the Society of Motor Manufacturers and Traders (SMMT) said.
Ministers have called off meetings with the Confederation of British Industry (CBI) over allegations of sexual misconduct at the business group.
