Yahoo Finance FTSE 100 Live: London blue-chips close slightly higher, Vodafone and Ocado shares surge
Ocado and Vodafone shares are sharply higher in a session when the wider FTSE 100 index has struggled for momentum.
The recovery for the mobile phone giant’s valuation follows a reassuring trading update, while shares in the grocery warehouse technology stock jumped 10% thanks to the end of a long-running patent dispute.
The mood is more cautious elsewhere as traders await corporate earnings and key interest rate announcements in the US and Europe.
FTSE 100 Live Monday
Ryanair posts Q1 profit of £573m
Slowing private sector fuels recession worries
Ocado and Vodafone shares rally in FTSE 100
FTSE 100 closes slightly up
Monday 24 July 2023 16:39 , Daniel O'Boyle
The FTSE 100 closed up by 0.19% today at 7,678.59.
The index fell in early trading, and despite a recovery on the back of PMI data it was in negative territory again at lunchtime. But shares rallied after US markets opened.
Ocado was the tp riser after annouhncing a £200 million settlement from its #robot wars’ lawsuit with Autostore, while Vodafone and BT were also big gainers.
Beazley and WPP were the biggest fallers.
Shares gain on Wall Street
Monday 24 July 2023 15:49 , Daniel O'Boyle
Wall Street shares are higher as markets await the Federal Reserve’s latest decision this week. Defence contractor Haliburton is among the biggest risers, while Estée Lauder is a top faller.
Primark launches ‘click and collect’ in London
Monday 24 July 2023 14:53 , Daniel O'Boyle
Fast fashion giant Primark has launched ‘click and collect’ services in Greater London, expanding its trial for childrens’ clothes to 32 stores in and around the capital.
Customers will now be able to select children’s clothing online and pick it up in store at locations such as Hackney, Hammersmith, Oxford Street and both Westfield shopping centres. Primark noted that the launch comes” just in time for the back-to-school season”.
It also noted that the launch means that customers will now be able to pick up items that might only be available at the largest primark stores at a much wider range of sites.
US futures flat as Fed decision looms
Monday 24 July 2023 13:56 , Daniel O'Boyle
Wall Street futures are close to flat, ahead of the Federal Reserve’s meeting this week.
Dow Jones futures are up 0.1% to 35418, while S&P 500 futures are up 0.1% to 4571.00. Nasdaq futures, conatining some of the most rate-sensitive stocks, are up 0.2% to 15567.75.
Cinema chain AMC, which has been the subject of a “meme-stock” buying spree from retail investors looks to be the biggest riser with shares up more than 36% as its boss Adam Aron revealed the company has filed a revised petition for a stock conversion plan.
Rishi Sunak says he does not want to ‘hassle’ families with net zero targets
Monday 24 July 2023 13:23 , Daniel O'Boyle
Rishi Sunak has said he does not want policies tackling the climate crisis to heap “hassle” or extra costs on to families as he seems set to water down efforts to win over voters.
The Prime Minister said he wants to act in a “proportionate and pragmatic” way that does not “unnecessarily” affect lives as he comes under pressure from the right of the Tory party.
He insisted on Monday that reaching net zero is “of course” important to him, following accusations he is “uninterested” in the environment.
City comment: Soundbites won’t solve London’s housing shortage
Monday 24 July 2023 11:50 , Jonathan Prynn
Another day, another bid to unpick the Gordian knot that is the housing shortage in London.
Today Housing Secretary Michael Gove unveiled his own plans to unleash a “housebuilding boom” in the capital, a prize that has eluded three Mayors and umpteen holders of one of the least secure ministerial jobs in Whitehall.
Today’s soundbites are all well and good and certainly an overhaul of the moribund planning system would be a valuable — if scarcely votegarnering — achievement.
City backers pile into windfarm at mouth of Thames
Monday 24 July 2023 10:56 , Jonathan Prynn
CITY investors have snapped up a 25% stake in the huge London Array offshore windfarm in the Thames Estuary in a deal valuing it at almost £2.9 billion.
Specialist green funds managed by Schroders Greencoat paid £717 million for the stake to Danish renewable energy company Ørsted.
The 630 MW London Array was the biggest offshore windfarm in the world when it was commissioned in 2013 with 175 turbines capable of generating enough electricity to power 500,000 homes.
The other owners are German utility giant RWE (30%), Canadian investment group CDPQ (25%) and Abu Dhabi green energy company Masdar (20%). It is operated by RWE from the Port of Ramsgate.
The lead investor Greencoat UK Wind is a listed renewable infrastructure fund, which already has holdings in 46 operating UK wind farms with net generating capacity of 1652MW.
Ørsted CFO Daniel Lerup said: “We’re very pleased to have found a strong new owner for our remaining minority interest in London Array.” The deal is scheduled to complete at the end of July
Prudential and Burberry struggle in subdued session, Ocado rallies
Monday 24 July 2023 10:23 , Graeme Evans
Ocado shares were given another lift today as investors cheered a long-awaited deal to end the company’s “robot wars” patent case.
The grocery warehouse technology stock has now more than doubled in value since sliding to the brink of FTSE 100 relegation in early June.
Today’s rise of 9% or 62.2p to 749.2p followed the weekend disclosure that Ocado and Norway’s AutoStore had settled their three-year intellectual property dispute. Ocado will receive £200 million and the two companies will be free to commercialise their patent portfolios.
The fast-tracking of Ocado shares came in a session when investors were otherwise content to be on the sidelines at the start of a busy week for earnings on both sides of the Atlantic.
The US Federal Reserve and European Central Bank are also due to increase interest rates by another 0.25%, but traders will be more focused on this week’s guidance from policymakers over whether the moves represent the peak of the cycle.
Ahead of these developments, the FTSE 100 index edged 3.57 points higher to 7667.30 and the FTSE 250 index by 47.06 points to 19,247.51.
Asia-focused stocks were among those under pressure after Hong Kong’s Hang Seng index slumped by more than 2% due to ongoing fears over the China economy.
Big fallers included Prudential, which declined 22.5p to 1021.5p, and the luxury goods group Burberry after a drop of 44p to 2200p.
In the mining sector, Anglo American fell 21p to 2368p and Rio Tinto by 16p to 5124p after analysts at Credit Suisse cut their price target on both companies.
Top performing stocks in the FTSE 250 included pork, poultry and convenience foods supplier Cranswick, which jumped 72p to 3416p after announcing a stronger-than-expected start to its financial year.
The East Yorkshire-based company, which employs 13,700 people at 22 sites in the UK, said revenues rose 14.7% amid resilient demand in the 13 weeks to 24 June.
There was also further support for Royal Mail owner International Distributions Services after Peel Hunt removed its “sell” recommendation. Shares continued their recent recovery to stand 3.3p higher at 267p.
M&C’s MacLennan to retire
Monday 24 July 2023 09:58 , Simon English
THERE was a shake-up looming at the top of the advertising trade today when M&C Saatchi said chief executive Moray MacLennan will retire at the end of September.
His chair Zilah Byng-Thorne will take on his duties while a search for a permanent replacementbegins
Byng-Thorne, the former boss of Future, only arrived as chairman in June.
MacLennan can take significant credit for coming to the rescue of a business that was in the mire when he got the top job three years ago.
M&C, founded by brothers Maurice and Charles, is perhaps the best-known name in UK advertising and a close confidante of the Conservative Party down the years.
It is best known for the 1978 “Labour Isn’t Working” campaign that played on fears of rising unemployment. The slogan was designed by a business then called Saatchi & Saatchi.
That led to complaints from Labour’s Denis Healey that the Tories were “selling politics like soap-powder”.
M&C was set up in 1995 by partners including MacLennan.
In 2019 M&C had to admit its own accounts weren’t working either. A review by PwC found accounting errors of towards £12 million due to errors that went back to 2014. Then chief executive David Kershaw and other executives quit.
A probe by the Financial Conduct Authority followed, as did a contentious takeover by by tech entrepreneur Vin Murria, who had become the biggest shareholders with a 12.5%.
Then chairman Gareth Davis always said the all-share offer did not reflect the firm’s future potential. Internally, there was significant opposition to Murria’s bid, with questions about the “cultural” fit of the deal.
MacLennan was paid £1.4 million last year including a bonus of £650,000. After 28 years with the business he also holds shares worth many millions.
He will also get paid for another 12 months while on gardening leave.
MacLennan said: "It has been a rare privilege to work for three decades with people I respect and like, creating work that has had an extraordinary impact on the world. M&C Saatchi is well set for the future and now is the right time to make way for fresh energy and ideas. Thanks to all past and present, and to those in the future who I know will keep the M&C Saatchi flame burning bright."
M&C shares rose 2p to 150p
Slow July private sector growth ‘reignites recession worries’
Monday 24 July 2023 09:38 , Daniel O'Boyle
Private-sector growth in the UK in July fell to its lowest rate in six months, in the latest sign that the Bank of England’s rate rises are beginning to slow the economy down and could potentially tip the country into recession.
The S&P Global /CIPS Flash PMI came to 50.7 for the month, well below the expected 52.3 and June’s 52.8. However, that still remains above 50, the threshold that separates growth from decline.
Manufacturing declined again, with a reading of 46.5, down from 48.1 in June. The dominant service sector, meanwhile continued to grow but more slowly with a reading of 51.5.
But there was good news on inflation, as growth in prices charged hit its lowest total in two-and-a-half years.
Chris Williamson, chief business economist at S&P Global Market Intelligence said: “The UK economy has come close to stalling in July which, combined with gloomy forward-looking indicators, reignites recession worries.
“July’s flash PMI survey data revealed a deepening manufacturing downturn accompanied by a further cooling of the recent resurgence of growth in the service sector.
“An upside to the deteriorating growth and demand picture is a further cooling of inflationary pressures. Manufacturing prices are falling at an increased rate and service sector inflation is continuing to moderate. Although ongoing upward wage pressures mean service sector price growth remains elevated, the survey data signal further, potentially marked, falls in consumer price inflation in the months ahead.”
S4 Capital shares slump
Monday 24 July 2023 09:22 , Simon English
SIR Martin Sorrell’s S4 Capital suffered its latest setback with a brutal warning about how tech clients are cutting back spending amid fears about the wider economic climate.
Last year S4 had to twice delay its annual results after auditors PwC said it was “unable to complete the work necessary”, an outcome Sir Martin called “unacceptable and embarrassing”.
He pledged to restore investor confidence in the business he founded after leaving FTSE 100 giant WPP in acrimonious circumstances.
Today S4 said: “Net revenue in the second quarter was below budget with May and June in particular, reflecting the challenging macroeconomic conditions and clients, especially those in the technology sector, remaining cautious and very focussed on the short term.”
S4 hinted at job cuts, noting a “disciplined approach” to costs “including headcount and discretionary costs”.
The target for sales growth was slashed from 2-4% to 6-10%.
The shares fell 17%, 23p, to 115p which leaves the business valued at £652 million.
For the longer term, S4 is more optimistic saying it continues “to see longer sales cycles, particularly for larger transformation projects”.
Vodafone nears merger proposal with Three, unveils new CFO
Monday 24 July 2023 09:05 , Simon Hunt
Vodafone is on the cusp of submitting a proposal to the regulator for its blockbuster merger with Three, its boss said today as the telecoms giant brought in a new CFO.
Chief executive Margherita Della Valle, who unveiled the deal last month, said she had “started engaging” with the Competition and Markets Authority, adding: “We expect to file our draft merger notice in the next few weeks.”
The deal is set to be completed in the second half of next year and would make the combined company the biggest telecoms operator in the UK. But the proposal is likely to face intense regulatory scrutiny after a previous deal between O2 and Three was blocked by the CMA.
Della Valle promised the merger would lead to thousands of new roles being created but said of the scale of potential job cuts ahead that it was “far too early for these calculations.”
It comes as Vodafone today said it would be getting a new CFO, Luka Mucic, who will join in September. Mucic is currently finance director of German software multinational SAP. He replaces Della Valle, who has transitioned to the role of CEO following the departure of Nick Read last year.
Vodafone posted like-for-like sales growth of 3.7% to 10.7 billion euros in the three months to the end of June, as a dip in service revenues in Germany, Italy and Spain was offset by 5.7% growth in the UK, thanks in part to bumper price rises.
Vodafone shares rose 3.8% to 76.31.
New Matalan boss blames “unseasonal” Spring weather for slowdown
Monday 24 July 2023 09:01 , Daniel O'Boyle
The new boss of Matalan blamed “unseasonal weather” for a slowdown in sales as its profits plunged in the Spring.
Revenue slipped by 8% to £263.6 million in the three months to 27 May, leading profit to fall by almost 90% to £2.1 million.
CEO Jo Whitfield, who joined in March from the Co-op, said “Unseasonal weather delayed a refresh of wardrobes for early Spring creating a tough start to the season.”
However, there were signs of recovery at the start of summer, as sales grew by 5.5% in June amid soaring temperatures.
Whitfield added: “We are creating a much stronger Matalan, building on the assets the business has already around brand, customer loyalty and an engaged set of colleagues that want the business to thrive.”
Big gains for Vodafone and Ocado, FTSE 100 lower
Monday 24 July 2023 08:26 , Graeme Evans
Vodafone shares are 4% higher after chief executive Margherita Della Valle reported a stronger service revenue performance across “almost all of our markets”.
First quarter revenues were 3.7% higher than a year earlier on an underlying basis, driven by growth of 5.7% in the UK. With the company also appointing a new finance director, shares rallied 2.6p to 76.1p.
The recent upturn continued for Ocado shares, which jumped 10% or 72.5p to 759.5p after Saturday’s announcement that it had settled a long-running patent dispute with Norway’s AutoStore.
The FTSE 100 index drifted 17.91 points to 7645.82 at the start of a busy week of corporate earnings and monetary policy decisions.
The FTSE 250 index was broadly unchanged at 19,202.39, with the pork, poultry and convenience foods supplier Cranswick up 72p to 3416p after announcing a stronger-than-expected start to its financial year.
Market snapshot as shares open lower
Monday 24 July 2023 08:24 , Daniel O'Boyle
Take a look at today’s market snapshot as shares sllipped this morning, with one of the year’s top performers in Rolls Royce the biggest faller so far.
Cranswick to beat expectations as consumers trade down to sausages
Monday 24 July 2023 08:20 , Daniel O'Boyle
Supermarket sausage maker Cranswick is set to beat expectations as customers trade down to cheaper meats.
Revenue for the three months to 24 June was up 14.7% year-on-year, thanks to strong performances for its UK fresh pork, convenience and gourmet products.
The business also said that its costs were still rising, but at a slower rate.
“Whilst the board remains cautious about current market and wider economic conditions, the outlook for the current financial year ending 30 March 2024 is now expected to be ahead of its previous expectations,” it said.
Shares are up 3% to 3,446p today.
Ocado shares rally after £200 million win from legal fight
Monday 24 July 2023 08:17 , Simon Hunt
Ocado shares got a lift this morning after the online grocer said it had ended its legal fight with AutoStore, pocketing £200 million in the process.
The company had undergone a years-long legal battle the Norwegian firm in a bid to protect against what it saw as a breach of its patents, fighting cases in the UK, the US and Germany. The cases centred around AutoStore’s two new products, its Blackline robot and a software product called Router, which Ocado said infringed its patented intellectual property.
Ocado said: “We are entirely confident in the integrity of our Intellectual Property portfolio and the disciplined approach we have taken to build our capabilities and the Ocado Smart Platform over the past twenty years. We will always vigorously protect our intellectual property.”
Ocado shares jumped 12% to 769p.
MoneySupermarket expects strong profit growth despite mortgage slowdown
Monday 24 July 2023 07:53 , Daniel O'Boyle
MoneySupermarket’s profits are set to come in at the top end of its guidance as customers look to switch insurance plans amid “rising insurance premiums and the squeeze on consumer finances”.
That growth in insurance helped to offset a slowdown in mortgages, which have been impacted by skyrocketing interest rates. As of Friday, the average 2-year fixed residential mortgage rate was 6.80%.
The comparison business made £213.8 million in revenue, up 11%, in the first six months of the year, despite a slowdown in its money segment that includes mortgages.
“The continued strategic progress and measures we are taking to drive growth, gives the board confidence the group will be towards the upper end of market expectations for the year,” it said.
The group also said that one in six UK adults, or 9 million people, get Martin Lewis’ weekly tips email, as they look for solutions to the cost-of-living crisis. Earlier this year, it launched a MoneySavingExpertGPT chatbot.
Ryanair profits take off as travellers take back to the skies after shock from Ukraine war
Monday 24 July 2023 07:36 , Michael Hunter
Profits at Ryanair soared as getaways over the Coronation weekend and a strong Easter powered a strong first quarter, at the low-fare airline .
The Irish budget airline, which flies in an out of London Stansted, reported profit of €663 million (£573 million ) for the first quarter, up from €170 million from a year earlier, when Russia’a war in Ukraine kept travellers at home.
Over 50 million people flew with the company in the 12 weeks to the end of June, leaving it on course to keep its crown as Europe’s biggest airline by passenger numbers. The proportion of seats sold, or load factor, hit 95%, up from 92%. Revenue hit €2.6 billion, up 40%.
It continued to call “urgent reform” of what it calls Europe’s “inefficient air-traffic control” system, with strikes once again threatening to cause summer disruption. Michael O’Leary, chief executive of the company, said:
“In May we submitted a petition to the European Commission, signed by over 1 million of our customers, calling on the EU to protect ‘overflights’ during national ATC strikes. We believe this would reduce flight delays, cut flight times, and unnecessary CO2 emissions.
“Over the past 6 months, French air traffic control alone, has held 60 days of strikes, during which the French government. used minimum service laws to protect local/domestic flights while disproportionately cancelling overflights. We, and our customers, call on the European Commission President, Ursula von der Leyen, to protect the single market for air travel and minimise the impact of air traffic control strikes on EU citizens.”
Big week for interest rates and earnings, FTSE 100 seen lower
Monday 24 July 2023 07:23 , Graeme Evans
The FTSE 100 index is set for a lacklustre session ahead of interest rate meetings by policymakers in the United States and Europe.
The Federal Reserve is expected to raise rates by another 0.25% on Wednesday, with commentary from chair Jerome Powell on whether this marks the top of the tightening cycle likely to be significant.
On Thursday the European Central Bank is expected to announce a 0.25% Increase to 3.75%, which some economists think might represent the peak for rates as inflation begins to fall back.
In addition, the resurgence of the tech sector will be tested this week as Microsoft, Alphabet and Meta Platforms are among the mega caps due to report results.
Asia markets have started the week in mixed fashion, with Tokyo’s 225 Nikkei up more than 1% but Hong Kong’s Hang Seng index 2% lower as traders fret over the performance of China’s economy.
IG Index expects the FTSE 100 index, which rallied last week to finish Friday’s session at 7663, to open about 0.1% lower.
Recap: Friday’s top stories
Monday 24 July 2023 06:58 , Simon Hunt
Good morning. Here’s a summary of our headlines from Friday:
Retail sales declined 1% year-on-year in June, a smaller fall than expected in a reality check for hopes than inflation was set to fall rapidly.
Public sector net borrowing hit £18.5 billion in June, the first time debt was higher than economic output for over 60 years.
Bankrupt crypto firm FTX sued its former CEO Sam Bankman-Fried and other senior execs in a bid to recoup as much as $1 billion.
