Yahoo Finance FTSE 100 Live: CBI members will vote on lobby group’s future
The future of the UK’s top business lobby group is in serious doubt as a number of the country’s biggest firms cancelled their membership.
Aviva was the first major firm to quit the CBI this morning, but was soon followed by Phoenix Group, NatWest and John Lewis, among others.
Many more blue chip employers, including BT and PwC, opted to suspend their membership.
“In light of the serious allegations made, and the CBI’s handling of the processes and response, we believe the CBI is no longer able to fulfil its core function – to be a representative voice of business in the UK,” an Aviva spokesperson said. “We have therefore regrettably terminated our membership with immediate effect.”
Elsewhere, retail sales volumes fell by a bigger-than-expected 0.9% last month, figures from the Office for National Statistics showed today.
The decline emerged on the day that a monthly survey by GfK revealed consumer confidence at its highest level in over a year.
The reading is still in negative territory at minus 30, but this represents an improvement of six points on the previous month as Britons have become more optimistic about their personal finance situation over the next 12 months.
The S&P Global / CIPS Flash UK PMI, measuring private sector output, meanwhile, recorded the strongest growth in a year.
FTSE 100 Live Friday
Retail sales fall 0.9% due to bad weather
Private sector grows at fastest pace in a year
Bid battle for Network International after new approach
CBI suspends policy activity until June
Friday 21 April 2023 21:34 , Daniel O'Boyle
The CBI will suspend all policy activity until a June EGM in which its members will vote on its future.
“We want to properly understand from our colleagues, members, experts and stakeholders how they envisage our future role and purpose,” the group said. “As a result, we have taken the difficult but necessary decision to suspend all policy and membership activity until an Extraordinary General Meeting (EGM) in June.
“At the EGM we will put forward proposals for a refocused CBI to our membership for them to decide on the future role and purpose of the organisation. This work and the cultural reform will be the entire and urgent focus of the organisation over the coming weeks.”
Manpower group suspends membership
Friday 21 April 2023 18:22 , Daniel O'Boyle
Workplace solutions business Manpower Group has suspended its membership of the CBI, which appears increasingly unlikely to survive to Monday.
“ManpowerGroup UK is deeply concerned with the serious allegations raised against the CBI and suspends all activity with the business lobby group effective immediately,” a Manpoker Group spokesperson said. “As the investigation is ongoing, we will continue to monitor the situation and will review our membership accordingly.”
Uber becomes latest US tech firm to pause CBI membership
Friday 21 April 2023 18:09 , Daniel O'Boyle
Rideshare service Uberjoins the list of firms pausing CBI membership, alongside felllow Silicon Valley tech firm Meta.
A number of leading UK-based businesses either quit or pauses engagement with the body earlier today, and it appears that the British arms of US tech firms are now following suit.
Uber and Meta both sat on the CBI’s tech council, which was dominated by Uk arms of American firms.
Sage exits CBI
Friday 21 April 2023 17:59 , Daniel O'Boyle
Accountacy tech giant Sage is a further addition to the list of firms quitting the CBI.
The firm has been in touch with the business lobbying body, and will terminate its membership.
Meanwhile, Paddy Power owner Flutter will pause engagement with the body while it reviews its membership.
Meta and Tesco pause CBI membership
Friday 21 April 2023 17:33 , Daniel O'Boyle
The list of firms suspending associations with the CBI has extended to the US tech sector, as Facebook and Instagram owner Meta’s UK arm will pause its embership of the body.
It was a member of the CBI’s tech council, which was dominated by the UK arms of American businesses, while most of the UK’s own best-known tech firms were not members.
Tesco and Sainsbury’s are also among those pausing membership.
British Beer & Pub Association joins list of CBI exits
Friday 21 April 2023 16:51 , Daniel O'Boyle
The British Beer & Pub Association - which represents companies that combine to brew 90% of British beer and own 20,000 pubs - is the latest organisation to suspend its membership of the CBI.
“Following the multiple allegations made against the CBI we have today suspended our membership,” the body said.
It members include Greene King, JD Wetherspoon and Heineken.
Largest CBI trade body component has no plans to exit or suspend relationship
Friday 21 April 2023 16:23 , Daniel O'Boyle
The National Farmers Union - the largest trade body part of the CBI bringing 55,000 businesses- does not have plans to exit or pause its membership, despite the flood of companies doing so.
A spokesperson for the NFU told the Standard that the body there was no change in its membership, although it would continue to monitor the situation.
Top companies continue to quit CBI
Friday 21 April 2023 16:04 , Daniel O'Boyle
Natwest, Virgin Media O2 and BMW have all joined the list of firms quitting the Confederation of British Industry, while a number of other businesses have paused their membership.
“British business needs a strong representative voice. Given the extremely serious allegations made against the CBI, we no longer have confidence that it can fulfil this role at the present time,” a NatWest spokesperson said.
The number of firms confirmed to be terminating their membership today has entered the double-digits, with many more putting any links with the lobbying body on hold.
Kape directors to accept “undervalued” bid from gambling tycoon
Friday 21 April 2023 15:46 , Daniel O'Boyle
The board of ExpressVPN owner Kape Technologies will accept a £1.25 billion takeover offer from Playtech founder Teddy Sagi, despite believing that it undervalues the company.
Sagi already owned half of Kape, and intended to buy the rest to take it private via his investment vehicle Unikmind. However, Unikmind also revealed that, should the bid fail, he would still attempt to take the company private.
With some smaller shareholders agreeing to sell their stakes in the business, Unikmind was set to own almost 60% of Kape. Given this, the independent board members said it was likely to succeed in passing a resolution to take the firm private.
Rather than owning shares in a delisted business which could prove diffcult to offload, the independent Kape directossaid they will instead also agree to sell.
London-listed retailers plan to beef up UK store portfolios in boost for High Street
Friday 21 April 2023 15:10 , Joanna Hodgson
Given all the challenges it has faced in recent years you would be forgiven for assuming that the High Street is in terminal decline. The long-term shift to online shopping, the trauma of the lockdown years, the inexorable rise in rents and energy bills make it seem that the days of bricks and mortar shopping are numbered.
And yet... perhaps it is too soon to bury what is sometimes described as Britain’s favourite pastime.
John Lewis quits CBI
Friday 21 April 2023 14:51 , Daniel O'Boyle
John Lewis has become the latest firm to quit the Confederation of British Industry, after a second former employee of the business lobbying group alleged she was raped while working there.
The retail giant - which also owns Waitrose - joins a list of firms including Aviva and pensons group Phoenix in cancelling its membership.
John Lewis chair Sharon White had been at the CBI’s annual conference last year.
“Due to the further very serious and ongoing allegations made relating to the CBI, we have decided to end our membership with immediate effect,” a spokesperson said.
Rentokil NY shares halted, London share surge
Friday 21 April 2023 14:45 , Daniel O'Boyle
Shares of pest-killer Rentokil were halted in New York ahead of upcoming news, while its London shares have surged.
The firm is now trading at 633.6p, up 3.6%, having gained 9p in the last five minutes.
Rentokil reported its financial results yesterday, with revenue up by 5.9%.
Friday 21 April 2023 14:07 , Daniel O'Boyle
Matthew Ryan, head of market strategy at global financial services firm Ebury, says that today’s PMI figures show that fears of a UK recession are “overblown”.
The figures suggested the UK private sector was on course for growth in Q2, despite many - including the IMF - predicting that the economy would contract and the UK would enter a recession.
“Data out this week has continued to reaffirm our view that fears of a technical recession in the UK this year are overblown,” he said. “This morning’s composite PMI surged to a one-year high 53.9, well above the key level of 50 and not at all consistent with a downturn.
“The data was a bit of mixed bag, with manufacturing struggling while services powers ahead, although investors are clearly more interested in the latter given the far greater importance of the services sector to Britain’s GDP.
“All in all, we’re not seeing signs of a recession any time soon, while UK inflation remains sticky and stubbornly high. This should encourage the Bank of England to stick by its hawkish policy stance at its May meeting, with at least another couple of rate hikes seemingly on the cards.”
New chair at AJ Bell
Friday 21 April 2023 13:59 , Daniel O'Boyle
FTSE 250 investment platform AJ Bell has appointed Fiona Clutterbuck as its new chair.
Clutterbuckk is currently senior independent director of M&G, but will step down when she joins AJ Bell at the start of May.
“I am delighted that Fiona will be joining the Board. Fiona has a wealth of experience in our sector and will be able to support and challenge the executive team whilst leading the Board as we continue to grow the business,” AJ Bell CEO Michael Summersgill said.
Royal Mail pay offer accepted by Communication Workers Union
Friday 21 April 2023 13:44 , Daniel O'Boyle
Royal Mail has revealed details of a proposed deal aimed at ending a long-running dispute over pay, jobs and conditions.
The agreement, reached with negotiators from the Communication Workers Union (CWU), includes later starting times for deliveries, regular Sunday working, a 10 per cent pay rise over three years and a one-off lump sum of £500.
Strong business survey lifts the gloom after disappointing retail sales
Friday 21 April 2023 12:41 , Daniel O'Boyle
Hopes that the economy can ride out surging inflation and a downturn on the High Street were given a boost today by a survey showing business activity at its highest level for a year.
The keenly watched S&P Global/CIPS PMI index rose from 52.2 in March to 53.9 in April, the third consecutive month of recovery. A reading above 50 points to an increase in output and suggests GDP grew during the month.
The index came on the same day as disappointing official retail sales showing a 0.9% fall in March, a dramatic turnaround from growth of 1.1% in February. Economists blamed wet and cold March weather and shortages of fruit and vegetables in supermarkets for the worse than expected data.
EasyHotel invests £4.5m in drive to cut CO2 emissions
Friday 21 April 2023 11:45 , Joanna Hodgson
No-frills accommodation chain easyHotel today outlined plans to invest in solar panels and other upgrades, in a move to slash CO2 emissions across many of its UK sites.
The hotel brand, founded in 2004 by entrepreneur Sir Stelios Haji-loannou, will spend £4.5 million on improving hotel energy efficiency at 12 locations, including in Shoreditch and Croydon. The projects will include the installation of heat pumps and new more efficient air conditioning systems for example.
Following the work, CO2 emissions are expected to fall by 45% by 2025 across all those sites.
The chain added that single use plastic bottles have been removed from all owned and leased hotels with free filtered water fountains installed for guests to refill their own bottles or buy a reusable bottle from reception. Plastic key cards are also being replaced with wooden ones.
Aviva quits scandal-hit CBI
Friday 21 April 2023 10:58 , Daniel O'Boyle
Insurance giant Aviva has become the first major business to quit the scandal-hit Confederation of British Industry (CBI), after a second woman alleged she was raped while working at the business group.
It comes just over a week after CBI boss Tony Danker was sacked over “devastating” workplace misconduct complaints.
According to reports, Danker sent a female employee a barrage of messages, some featuring sexually suggestive language, over more than a year.
Defensive stocks help steady FTSE 100, miners struggle
Friday 21 April 2023 10:13 , Graeme Evans
Commodity jitters fuelled by the prospect of more interest rate rises left London’s band of heavyweight mining stocks under a cloud today.
The uncertain demand outlook pushed Rio Tinto shares 4% or 223p lower to 5219p, while De Beers owner Anglo American and copper miner Antofagasta weakened 2%.
Glencore’s in-line update on first quarter production provided some reassurance but its shares still fell 8.95p to 492.95p in reaction to a falling copper price.
Oil stocks held firm but BP and Shell were lower across the week after Brent crude revisited $81 a barrel to erase gains seen after OPEC’s surprise cut to output.
The commodities downturn reflects anxiety over the prospect of the Federal Reserve hiking rates by 0.25% next month even though the US economy looks to be slowing.
The focus of traders now turns to next week’s results diary that includes 40% of the S&P 500 index as well as blue-chips Barclays, NatWest, Reckitt Benckiser and GSK.
Amid the uncertainty, demand for defensive stocks meant the FTSE 100 index ended a lacklustre week up 2.83 points to 7905.44. British Gas owner Centrica gained 1.1p to 113.85p and BAE Systems stayed in record territory by adding another 11p to 1031.5p.
National Grid neared the top of the risers board with an improvement of 16p to 1146.5p after Deutsche Bank increased its price target.
There was also buying interest in Dowlais after the GKN automotive and powder metallurgy business endured a tough start to stock market life following its demerger from Melrose Industries.
A 21% slide as Melrose shareholders headed for the exit left Dowlais with a £1.6 billion valuation by last night’s close before today’s rise of 5% or 5.4p to 122.6p.
The FTSE 250 index dipped 18.43 points to 19,117.44, with Wizz Air and easyjet down 2% at the end of a positive week for updates in the travel sector.
Sales rocket at O2 shops as Elton John sings his goodbyes
Friday 21 April 2023 10:12 , Daniel O'Boyle
Nine nights of Elton John’s farewell tour helped the O2’s shopping sites report sales well ahead of pre-pandemic levels for the start of this year.
Sales for the first quarter of the year were up 44% from 2019 and performance over the Easter period from 3-14 April were even better, at 56% ahead of 2019.
Elton John’s performances boosted footfall, and the venue took advantage by opening the ‘Farewell Elton at The O2’ store, which sold merchandise for the music legend. Two dates of Ed Sheeran and the three-night Country to Country festival also helped bring punters to the O2.
O2 Entertainment District managing director Janine Constantin-Russell said: “We are thrilled to have experienced yet another standout trading period across Easter half term this year.”
Foreign private equity firms close in on duo of major London deals
Friday 21 April 2023 10:04 , Daniel O'Boyle
A brace of deal announcements today breathed new life into the City’s market for mergers and acquisitions, but also revealed a deepening trend for undervalued Londoncompanies to be snapped up by private equity firms.
Rising fintech star Network International Holdings was at the centre of a fresh, £2 billion offer from a second buyout suitor while smart metering firm Sureserve became the target of a £214 million offer from France.
UK private sector grows at fastest pace in a year
Friday 21 April 2023 09:37 , Daniel O'Boyle
The UK private sector is growing at the fastest rate in a year, according to a closely watched indiciator.
The S&P Global / CIPS Flash UK PMI, measuring private sector output, came to 53.9 in April, up from 52.2 in March. Any figure above 50 represents growth.
The figure for April had been expected to be level with March.
The growth came thanks to the UK’s dominant services sector, with the Services Activity Index coming to 54.9, again the highest in a year. However, mmanudfdacturing slowed down significantly, recording its biggest decline of 2023.
“A further robust rise in new order intakes added to signs of an improving economic landscape,” the report said. “However, there were divergent trends by sector as strong growth in the service economy contrasted with another fall in manufacturing production.”
Miners struggle in flat FTSE 100, Dowlais recovers
Friday 21 April 2023 08:37 , Graeme Evans
The mining sector put pressure on London’s top flight today after declines of 3% for Rio Tinto and Anglo American in early trading.
Glencore, which earlier posted an in-line production update, fell by 1% or 5.9p to 496p as traders reacted to a fall in commodity prices.
The FTSE 100 index stood 1.72 points lower at 7900.89, with top flight newcomer Dowlais the best performing stock as it steadied following an opening day hammering.
The company, which includes GKN’s automotive and powder metallurgy businesses, has been demerged from blue-chip company Melrose Industries. The shares fell 21% yesterday but are up 3% or 3.6p to 120.8p today.
Defensive stocks were also in favour as United Utilities and National Grid both rose 9.5p to 1084.5p and 1140p respectively, while BAE Systems added another 7p to 1027.5p as the defence giant continues to trade at record levels.
The FTSE 250 index fell 13.60 points to 19,122.27, with takeover target Network International up 11% or 40p at the 400p level proposed by a second potential private equity bidder.
Music lovers need to be on their guard against ticket scams, major bank warns
Friday 21 April 2023 08:23
Reports of people being scammed when trying to buy concert tickets have surged, a major bank is warning.
With demand to attend live events soaring after the coronavirus lockdowns, Lloyds said music lovers hoping to see their favourite artists perform live this summer need to be on their guard.
According to the bank’s data, reports of people being scammed when buying concert tickets have surged by 529% over the past year, with victims losing £110 on average.
Oil price under pressure, Asia markets struggle
Friday 21 April 2023 07:41 , Graeme Evans
The Brent crude price is near to $80 a barrel after falling 6% this week as fears mount that higher interest rates will squeeze demand.
The decline, which continued in dealings this morning, means the spike following OPEC’s surprise move to cut output has been wiped out.
Industrial metals such as copper and tin also came under pressure yesterday amid expectations that central banks are poised to announce more interest rate hikes in the coming weeks.
The FTSE 100 index, which has a big commodities focus, is expected by IG Index to open flat at 7898 as a lacklustre week for global markets draws to a close. In Asia, stocks endured a difficult session with the Hang Seng and Shanghai Composite down by more than 1%.
Bid battle breaks out for Network International Holdings with fresh £2 billion offer
Friday 21 April 2023 07:39 , Michael Hunter
London-listed payment services firm Network International Holdings was at the centre of a bid battle this morning after it confirmed it had received a second approach from a would-be buyer.
The company said Brookfield Asset Management was offering 400p per share, more than the £387p on the table from a rival consortium of suitors made up by CVC Advisers and Francisco Partners Management.
The new bid values Network at around £2.2 billion.
Network is focused on the Middle East and Africa and processed payments worth over $42 billion (£34 billion) in 2021 . It previously said it was “minded to accept” the lower offer.
It added today that it “is currently evaluating the Brookfield Proposal with its financial advisers and a further statement will be made in due course,” also describing the approach as “highly preliminary”.
Network’s stock closed at 360p yesterday.
Sureserve set to be snapped up by private equity
Friday 21 April 2023 07:25 , Daniel O'Boyle
Energy and heating services contractor Sureserve is set to be the latest London-listed firm to be snapped up by private equity, having agreed a £214.1 million takeover offer from Cap10.
Cap10 will pay 125p per Sureserve share, 35p more than the contractor’s current share price.
“Cap10 believes that, under private ownership, with the ability to focus on long-term strategic goals and the right access to capital, Sureserve will be able to accelerate its growth significantly both organically and through M&A,” the Sureserve board says.
The deal comes as a number of other London-listed companies have been targets of private equity interest, amid claims that London stocks are undervalued. Network International, The Hut Group and John Wood Group have all been subject of recent bids.
Bitcoin miner Vinanz makes its debut on the Aquis stock exchange
Friday 21 April 2023 07:24 , Simon Hunt
Bitcoin mining business Vinanz is to make its debut on the Aquis stock exchange.
The firm has acquired the Bitcoin mining operations of Gibraltar-based crypto business Valereum, consisting of 20 Bitcoin mining machines and approximately 4.76 Bitcoins. The machines are all installed, and fully operational, and are based in Nebraska, in the US, at one of the facilities provided by a US-based crypto firm, Compass Mining.
In exchange, Valereum is to receive a stake in Vinanz worth £800k based on its listing price of 3p per share.
“Whilst the Company will focus initially on BTC mining, it will also consider mining of other cryptocurrencies, and operations in the DeFi and Big Data space in the future,” Vinanz said.
Consumer confidence recovery continues
Friday 21 April 2023 07:14 , Graeme Evans
Consumer confidence continues to show recovery after a monthly survey by GfK revealed a six point improvement to minus 30 in April.
As energy bills begin to fall, the forecast for personal finances over the next 12 months increased eight points to -13, which is 13 points higher than this time last year.
The major purchase index is up five points to -28 after a rise of four points to the highest level in over a year.
Client strategy director Joe Staton said improvements were seen across the board: “This is the third month in a row that confidence overall has improved; can we look forward to this momentum building for the year ahead?”
Retail sales fall in March as bad weather hits the high street
Friday 21 April 2023 07:10 , Daniel O'Boyle
Bad weather hit the retail sector hard in March, as the ONS today revealed sales fell by 0.9%.
The decline was more than the expected 0.5% dip.
Clothing sales were hit especially hard, falling by 3.2%. However, the less weather-dependent food sales were also down, which retailers said was likely due to the continuing cost-of-living crisis.
ONS director of economic statistics Darren Morgan noted that things looked better over the longer term, as strong sales in January and February mean that for the year retail sales are still up.
“Retail fell sharply in March as poor weather impacted on sales across almost all sectors,” Morgan said. “However, the broader trend is less subdued, as a strong performance from retailers in January and February means the three-month picture shows positive growth for the first time since August 2021.”
