Yahoo Finance FTSE 100 Live: Public sector borrowing hits £22bn in November record
Public sector borrowing soared to £22 billion last month, the highest November figure since monthly records began in 1993.
The figure, which included a £7.3 billion interest bill on Britain’s £2.2 trillion public debt mountain, was much higher than October’s reading of £13.5 billion and compared with City expectations for £13 billion.
The month included the second round of payments under the Energy Bills Support Scheme, which added £1.9 billion to central government expenditure.
FTSE 100 Live Wednesday
Interest costs drive borrowing to November record
JD Sports Fashion shares surge after Nike update
Virgin Orbit gets the green light to begin space launches
Wall Street stocks expected to make gains
Wednesday 21 December 2022 14:16 , Michael Hunter
New York’s S&P 500 was on course to make opening gains after well-received corporate news from Nike helped lift sentiment in the run up to Christmas.
The broad New York index looked ready to rise 30 points to 3880, a gain of 0.8% according to futures trade, which would set it on course for a second say of gains.
Pound back under $1.21 after UK government borrowing breaks record
Wednesday 21 December 2022 12:33 , Michael Hunter
Sterling fell back under $1.21 after the latest data on public finances showed a record level of debt interest on government borrowing in November.
It reached £7.3 billion in the month, up £2.4 billion year-on-year, after the impact of inflation on index-linked gilt payments. Public sector net debt excluding public sector banks was £2.18 trillion at the end of November, or around 86.7% of GDP. That’s an increase of £151.7 billion, or 1.5 percentage points of GDP.
After the numbers came out, the pound took a hit, with City experts saying further pressure was likely .
Francesco Pesole, FX strategist at Dutch bank ING, said: “We continue to see mostly downside risks for the pound in the new year, as a recessionary environment and sensitivity to market instability may cause a return to the $1.15 to $1.18 range. For this festive season, [sterling] may hold around $1.2100 to $1.2250.
FTSE 100 midday movers: Bunzl takes a knock after trading update
Wednesday 21 December 2022 12:13 , Michael Hunter
Shares in Bunzl hit the bottom of the FTSE 100 after the business goods supplier forecast only “resilient” profits for 2023, even as it predicted a rise in revenue.
JD Sports was the biggest gainer as traders read across from an upbeat trading statement from footwear giant Nike. Ocado, so often one of the biggest movers on the index was heading higher today, taking second place on the leaderboard.
JD Sports up 7% on Nike cheer, FTSE 100 higher
Wednesday 21 December 2022 10:20 , Graeme Evans
Shares in JD Sports Fashion have risen 7% after a better-than-expected trading update by trainers giant Nike.
The world’s largest sportswear business reported a 17% surge in second quarter revenues as it made progress clearing excess inventory.
Earnings ahead of forecasts meant Nike’s shares jumped 13% after Wall Street’s closing bell, with a positive read-across for JD shares.
The UK-based company, which started trading from one store in Bury in 1981, generates around 30% of its revenues from North America. This includes from over 100 JD-branded outlets in the United States, as well as the Finish Line and Shoe Palace brands.
Shares have fallen from a record 233p in November 2021, hitting 89p in October on the back of consumer spending uncertainty and exit of long-serving boss Peter Cowgill.
The stock today rallied more than 7% or 8p to 121.4p following the Nike boost. JD was joined at the top of the FTSE 100 risers board by Sports Direct owner Frasers Group, which lifted 3% or 23.5p to 745p.
Other retail-focused risers included Ocado, B&Q owner Kingfisher and B&M European Value Retail as London’s top flight improved 35.02 points to 7405.64.
The housebuilding sector also got a lift after analysts at Liberum said an expected easing in mortgage rates to around 4.5% should mean a pick-up in activity in the spring.
The broker’s top picks include Barratt Developments and Berkeley Group, with shares in the blue-chip pair up 3.2p to 398.1p and 35p to 3775p respectively.
The FTSE 250 index rose 0.8% or 151.38 points to 18,694.14, led by Dr Martens and ASOS as their shares recovered from recent weakness by adding more than 3%. Jupiter Fund Management joined them on the risers board, improving 3.3p to 127.7p.
Virgin Orbit gets the green light to begin space launches in the UK
Wednesday 21 December 2022 09:18 , Simon Hunt
Richard Branson’s Virgin Orbit has been given the green light operate the UK’s first space launch in the latest step on its path to gain a foothold in the global satellite launch market.
The Civil Aviation Authority said Virgin Orbit met the licensing requirements after demonstrating that it had minimised safety risks and environmental standards associated with launch activities.
The license, which allows Virgin Orbit to proceed with its planned inaugural take-off at Cornwall Airport Newquay in the coming weeks, will also make it the first company to launch satellites into space from Europe.
Dan Hart, Chief Executive of Virgin Orbit, said: ”Receiving Virgin Orbit’s range and launch licences takes us one step closer to the first satellite launch take-off from UK soil.
“This is a major milestone for the CAA and represents the successful completion of an enormous effort, which has included the construction of new regulations, new processes and new teams.
The news is a rare boon for Richard Branson’s Virgin Orbit, which has seen its stock plunge over 80% since it went public on the Nasdaq stock exchange last year via a special purpose acquisition company or SPAC. The value of Richard Branson’s share in the company has plummeted some $2.2 billion since the start of the year.
Sports chains lead FTSE 100, Ferrexpo shares up 2%
Wednesday 21 December 2022 08:27 , Graeme Evans
JD Sports Fashion shares top of the FTSE 100 index following last night’s better-than-expected update from US giant Nike.
The UK retail chain’s shares have fallen more than 40% this year, but rallied 6% or 6.4p to 119.65p on raised hopes that its trading performance is better than feared.
The FTSE 100 index stood 15.87 points higher at 7386.49, with Sports Direct owner Frasers Group also up 13.5p to 735p.
Housebuilders rose after a reassuring note on the sector by analysts at Liberum, leading to gains of 18p to 1214.5p for Persimmon and 1.3p to 100.9p for Taylor Wimpey.
The FTSE 250 index lifted 53.32 points to 18,598.08, with Ukraine-based iron ore pellets supplier Ferrexpo up 2% or 2.9p to 164.9p. Despite power interruptions, it said shipments to customers during the fourth quarter have continued at a run rate of about 250 kilo tons a month.
Bunzl forecasts revenue rise and ‘resilient’ profits in 2023
Wednesday 21 December 2022 07:48 , Michael Hunter
Bunzl, the supplier of business goods from hardhats to coffee cups, has forecast a rise in revenue and resilient profit in 2023 after what it called “very strong growth” over the current year.
The FTSE 100 group, which is made up of 150 operating companies in 31 countries, said revenue for 2022 was set to rise by 17% at actual exchange rates, and by 10% on constant currency terms, showing the extent to which it got a helping hand from the relative weakness of the pound. It said inflation was driving underlying revenue growth.
Bunzl said said: “Looking ahead, whilst we see continued uncertainties relating to the macroeconomic environment, at constant exchange rates the group expects revenue in 2023 to be slightly higher than in 2022, driven by both organic growth and previously announced acquisitions, and partially offset by a small impact from a previously announced disposal.”
Its spending on acquisitions reached £280 million in the year.
Nike and FedEx boost US markets, FTSE 100 seen higher
Wednesday 21 December 2022 07:42 , Graeme Evans
US markets broke a four-day losing streak last night and are expected to open higher today after confidence was boosted by earnings updates from Nike and FedEx.
Shares in the sportswear giant rose 13% in after-hours trading, having beaten Wall Street estimates for revenues and earnings. FedEx shares rose 4% after price increases and cost savings offset lower package volumes.
US shares have come under pressure on fears that interest rates will stay high in 2023, fuelled by last week’s updated projections from Federal Reserve policymakers.
European markets have also endured choppy trading due to mounting global recession fears, although CMC Markets is expecting a stronger session today with the FTSE 100 index forecast to open 22 points higher at 7392.
Public finances hit by debt interest surge
Wednesday 21 December 2022 07:30 , Graeme Evans
Government debt interest payments totalled £7.3 billion in November, up £2.4 billion on a year earlier and the highest figure for the month since records began in April 1997.
The increase is largely because of the impact of the recent surge in the retail prices index measure of inflation on index-linked gilts.
The latest borrowing figures also show that public sector total expenditure was £98.9 billion in November, with day-to-day spending of £82 billion being £13.5 billion more than a month earlier.
Central government tax receipts were £51.6 billion, £2.2 billion more than in November 2021.
Public sector net debt excluding public sector banks was £2.18 trillion at the end of November, or around 86.7% of GDP. That’s an increase of £151.7 billion, or 1.5 percentage points of GDP.
Elon Musk to step down as Twitter CEO
Wednesday 21 December 2022 07:28 , Simon Hunt
Elon Musk is to quit as the boss of Twitter after users voted for the owner of the social media giant to step down.
The Tesla boss confirmed his decision to leave in a Tweet in which he said: “I will resign as CEO as soon as I find someone foolish enough to take the job!
“After that, I will just run the software & servers teams.”
Over 10 million Twitter users voted for Musk to step down in an online poll he launched on Sunday, in which he wrote: “Should I step down as head of Twitter? I will abide by the result of this poll.” In a cryptic Tweet he later added: “Those who want power are the ones who least deserve it.”
I will resign as CEO as soon as I find someone foolish enough to take the job! After that, I will just run the software & servers teams.
— Elon Musk (@elonmusk) December 21, 2022
Musk did not say who were the contenders to replace him as Twitter CEO.
Soaring interest debt sends public borrowing to new high in November
Wednesday 21 December 2022 07:28 , Jonathan Prynn
The Government was forced to borrow £22 billion in November, the highest on record for the month, latest official figures show today.
The huge shortfall was largely due to ballooning interest payments on Britain’s £2 trillion public debt mountain. Interest rose to £7.3 billion in November and is forecast to hit £120 billion for the financial year as a whole, according to the Office for National Statistics. About a quarter of outstanding gilts are index linked meaning that the interest payment has gone up in line with hihgher inflation.
