FTSE 100 Live: UK consumer confidence rises, Boots pension deal with L&G, Mothercare sales slide

FTSE 100 live (Evening Standard)

FTSE 100 Live Friday

• Retail boost as confidence improves

• Mothercare sales fall 15%

• L&G takes on Boots pension scheme

FTSE 100 down as BT and Burberry fall

Friday 24 November 2023 09:33 , Graeme Evans

Pushback against interest rate cut speculation fuelled a cautious session today as the FTSE 100 index ended a disappointing week in the red.

London’s top flight dropped 28.07 points to 7455.51, led by BT Group reversing 2.75p to 119.9p and Burberry down 23.5p to 1513p.

The selling came as traders in Europe revised interest rate expectations following the region’s robust updates on economic activity.

The 10-year gilt yield stood at 4.32% this morning, having been near 4% before the Autumn Statement.

Thin volumes following Wall Street’s Thanksgiving holiday and a 2% decline for Hong Kong’s Hang Seng index also impacted the mood.

Retailers enjoyed a stronger session after GfK consumer confidence figures showed greater appetite for major purchases. Beneficiaries included B&Q owner Kingfisher, which put back 1.1p to 215.7p.

The FTSE 250 index fell 48.31 points to 18,432.52, with Dr Martens down 2.2p to 108.3p.

FTSE 100 lower, buyers focus on retail sector

Friday 24 November 2023 08:48 , Graeme Evans

Retail-focused stocks today enjoyed a stronger session after consumer confidence figures showed increased appetite for major purchases.

Tesco shares lifted 2.3p to 282.3p and B&Q owner Kingfisher put back 1.8p to 216.4p, having fallen sharply earlier this week.

Investors also bought Rolls-Royce shares ahead of next week’s strategy update by chief executive Tufan Erginbilgic, with the engines giant up 1.6p to 242.3p.

Thin trading volumes following Wall Street’s Thanksgiving holiday meant the FTSE 100 index drifted 0.3% lower at 7458.47. The FTSE 250 index fell 41.22 points to 18,439.61.

Retail boost as consumer confidence improves

Friday 24 November 2023 07:44 , Graeme Evans

Households appear to have regained some of their appetite for major purchases after GfK’s consumer confidence index improved this month.

The headline reading of minus 24 marks an upturn of six points after October’s sharp decline.

The survey included a 10 point rise in the major purchases sub-measure, providing a boost for retailers looking to benefit from Black Friday and Christmas sales.

GfK client strategy director Joe Staton said: “Despite the acute cost-of-living pressures, many would still like to loosen their purse strings just a little so they can enjoy that feel-good factor we all associate with the festive season.”

Confidence in the economy over the next 12 months improved six points to minus 26. The score relating to personal finances lifted five points to minus three, compared with minus 29 the same month last year.

L&G to take on Boots pensioners in deal covering £4.8 billion scheme

Friday 24 November 2023 07:37 , Michael Hunter

FTSE 100 fund manager Legal & General is taking control of the pension scheme covering past and present employees of the high street chemist chain Boots.

The deal covers the £4.8 billion scheme and secures the benefits of all of the 53,000 retirees and deferred members of it.

L&G said the deal was the biggest of its kind in the UK, where companies have been paying for asset management specialists to take responsibility for often complex and expensive pension schemes.

The size of the payment from Boots to L&G for the transfer was not disclosed. Industry experts and weekend press reports on the deal expected it to involve a fee of around £1 billion.

Boots is owned by US pharmacy Walgreens and offloading the pension obligations of the UK chain will make it easier to sell.

Andrew Kail, CEO, of Legal & General's "Retirement Institutional" business said: "We are continuing to see an unprecedented acceleration in demand in this sector, driven by more pension schemes being closer to buyout than ever before," adding:

"Against this backdrop, we have posted a record year with £13.4bn of global Pension Risk Transfer [business] written to date.

FTSE 100 seen lower, traders revise interest rate bets

Friday 24 November 2023 07:26 , Graeme Evans

European bond yields have risen after traders revised their interest rate expectations due to the region’s latest updates on economic activity.

The 10-year gilt yield stood at 4.25% this morning, having been at 4.06% before the Autumn Statement. The spike came after preliminary figures showed the UK’s composite purchasing managers' index edged into growth territory during November.

Deutsche Bank today reported that traders put the chance of a rate cut by the Bank of England's June meeting at 36% compared with 97% on Monday.

The FTSE 100 index finished Thursday’s session 14.07 points higher at 7483.58 but IG Index expects the top flight to give up those gains when trading resumes today.

The subdued performance follows Wall Street's Thanksgiving holiday and with Hong Kong’s Hang Seng index down by more than 1%.

Mothercare sales slide on Middle East woes

Friday 24 November 2023 07:18 , Simon Hunt

Mothercare sales slid 15% in the six months to end September as it blamed 'difficult trading conditions in the Middle East'.

The baby products retailer posted revenues of £29 million, while pre-tax profits nudged up slightly to £2 million. Debts also increased, from £11.6 million to £15.8 million.

Chairman Clive Whiley said: "These results are testament to our continued drive to preserve the strength of the Mothercare brand in a fast changing retail and macroeconomic trading environment.

"Against significant headwinds in the Middle East, one of our core markets, we are pleased that our business model and disciplined approach to cost has resulted in an increase in profitability for the first half."

Recap: Yesterday's top stories

Thursday 23 November 2023 22:51 , Simon Hunt

Good morning. Here's a summary of our top headlines from yesterday:

• Ofgem lifts energy bills by 5% as wholesale prices rise

• London companies set to miss out on the business rates Autumn Statement giveaway at a cost of more than £500 million

• Hipgnosis Music sues Merck Mercuriadis

• Jet2 says Med bookings for next summer look strong despite wildfires hell and furnace temperatures

• Trevelodge hits record sales and profits on back of events such as Wimbledon and Edinburgh festival

• Virgin Money bad debts jump from £59m to £302m in worrying sings for banks.

• And...why what Hunt didn’t say in the Autumn Statement is more important than what he did