Yahoo Finance FTSE 100 Live 2 May: Index closes at another record, US stocks up ahead of Apple results
Forecast-beating results by Shell and Standard Chartered today boosted their shares during another robust session for the FTSE 100 index.
Shell’s quarterly earnings topped $7 billion while the Asia-focused lender unveiled a surplus of $5.2 billion (£4.1 billion).
Their performances gave a lift to the FTSE 100 index amid a calm reaction to last night’s Federal Reserve interest rates meeting.
Apple beats expectations
Thursday 2 May 2024 23:02 , Daniel O'Boyle
Dan Coatsworth, investment analyst at AJ Bell, comments on Apple results:
“Investors speculated that Apple’s second quarter results would be rotten to the core yet revenue and earnings both exceeded expectations. That’s five quarters in a row it has beaten forecasts.
“The results give the tech giant some breathing space after the market started to question if it had lost its way. However, many of the core problems remain and it has simply bought itself some time rather than found a full solution.
“Apple has been struggling to sustain momentum with iPhone sales, particularly in China where competition has been fierce for handsets. Names like Huawei and Vivo have proved to be difficult names for Apple to beat on the battlefield.”
US stocks up ahead of Apple results
Thursday 2 May 2024 18:53 , Daniel O'Boyle
The S&P 500 is up 0.7% to 5,053.98 in a strong day of trading on Wall Street ahead of Apple’s results.
The iPhone maker has ben the second-worst performer of the ‘Magnificent Seven’ in 2024, and lost its place as the world’s most vlauable company earlier this year.
Quiet day tomorrow
Thursday 2 May 2024 17:57 , Daniel O'Boyle
IHG will be one of the biggest updates on a quiet day tomorrow, while the latest US jobs figures will be closely watched after the surprise GDP slowdown in the world’s largest economy
Here’s what’s in store:
Results
Trainline
Trading updates
Soc Gen, InterContinental Hotels, Mondi
Economics
1.30pm US employment (April)
FTSE closes at record again
Thursday 2 May 2024 16:43 , Daniel O'Boyle
The FTSE 100 closed at another record today, after two straight days of declines, up 0.6% at 8,172.15.
London’s top flight started with modest gains but continued to climb as the day went on.
Standard Chartered and Smurfit Kappa were the top risers. Beazley and Whitbread were among the big fallers.
Royal Mail’s six-day delivery service must continue, says business minister
Thursday 2 May 2024 16:21 , Daniel O'Boyle
Royal Mail’s six-day delivery service must continue, a business minister has said, as the group proposes cuts.
The postal service put forward proposals in April that would see a dramatic reduction in second-class letter deliveries.
Regulator Ofcom is currently consulting on the group’s reforms which are not expected to impact first-class mail.
TikTok and Universal settle music royalties dispute
Thursday 2 May 2024 14:49 , Daniel O'Boyle
Millions of songs will be restored to TikTok after the social media platform settled a dispute with Universal Music Group over royalties.
The end of the row means users will once again be able to make TikTok videos featuring songs from artists such as Adele, Billie Eilish and Ariana Grande, with their return expected in the next two weeks.
Nine new tenants ‘registered for each available rental home in March’
Thursday 2 May 2024 13:19 , Daniel O'Boyle
Around nine new tenants were registered for each available rental home in March as demand continues to outpace supply, according to a property professionals’ body.
Propertymark said the average number of new prospective tenants registered per member branch decreased from 89 in February to 82 in March 2024, indicating that demand is slowing.
The stock of available homes increased marginally, the report said.
Virgin Media O2 adds to its debt pile
Thursday 2 May 2024 11:44 , Simon Hunt
Virgin Media has added to its huge debt pile as it geared up for more infrastructure investment amid a fall in customer activity and a decline in handset revenue in the first quarter of 2024.
The telecoms giant’s total third-party debt and lease obligations rose by more than £1 billion compared to the end of last year to £21.5 billion after it last month issued new €600.0 million and $750.0 million secured loans at interest rates of 5.6% and 7.8% in a bid to refinance existing maturing debt.
VMO2’s total fixed customer base fell by 2,000 customers to 5.8m, while both contract and prepaid mobile customer numbers dropped to 23.5m from 23.9m in the first quarter.
Total revenue fell 0.5% to £2.58bn, which the firm said was driven by a drop in handset revenue that offset growth in its mobile and fixed line service income.
VMO2 has also ramped up its fibre network rollout, hitting the milestone of one million of its ‘nexfibre’ premises in April.
CEO Lutz Schüler said: “While there is much to do in the remainder of the year, we are gathering momentum in accelerating fibre build and marketing the nexfibre footprint, launching new services to enhance and improve customer experience, and progressing wider IT efficiency programmes as we continue our digital transformation.”
Coutts to shift £2bn out of UK in latest blow to London markets
Thursday 2 May 2024 11:16 , Daniel O'Boyle
Royal bank Coutts was caught in a fresh row today after it revealed plans to shift an estimated £2 billion of clients’ funds out of the London stock market into foreign company shares in another blow for the City.
The bank, founded in 1692 and still almost 30% owned by the taxpayer, told clients earlier this week that its “home bias” towards British company shares was an “anachronism” that needed “funadamental change”
The move risks another damaging public row following the “debanking” scandal around Nigel Farage. Details of the former Brexit Party leader’s account were leaked by NatWest CEO Alison Rose to a journalist, leading to her departure.
MoneySupermarket becomes MONY
Thursday 2 May 2024 11:08 , Daniel O'Boyle
Savings platform MoneySuperMarket.com is to change its group name to MONY after agreeing a tie-up with online car market place Auto Trader.
The company, which also owns the Quidco and MoneySavingExpert brands, said the change “reflects how the group has evolved in recent years”.
The new name is the company’s stock market ticker. All its consumer brand names will be retained.
Under the deal with Auto Trader consumers looking for their next car on Auto Trader “will now be able to easily compare insurance quotes on their chosen vehicles through the new integration with MoneySuperMarket.”
Sara Newell, Director of Insurance at MoneySuperMarket, saidit was “delighted to be Auto Trader’s new price comparison partner, helping more drivers find the right insurance at the best price”.
Hugo Boss warns of more 'uncertainty'
Thursday 2 May 2024 10:37 , Daniel O'Boyle
Fashion giant Hugo Boss says it will “remain vigilant” of the “persistently high levels of macroeconomic and geopolitical uncertainty” across the globe, after sales topped €1 billion (£855 million) in the first quarter of the year.
Sales were up 5%, driven by strong performance in the Americas, offsetting weakness in Asia where many high-end fashion brands have struggled lately. The ‘denim-focussed Hugo Blue line, which launched during the quarter, was a particular success.
CEO Daniel Grieder said he was “pleased” by the results “in a volatile market environment”.
But the business warned that further uncertainty is ahead, and that this is “expected to continue weighing on global consumer sentiment”. Earlier this year, Hugo Boss blamed this uncertainty when it said it may not hit its target of €5 billion (£4.3 billion) in sales by 2025.
The shares initially jumped when markets opened in Frankfurt, but quickly slid to €48.38, down 4% from yesterday’s close. That means they have now lost 26.5% in 2024, leaving Hugo Boss valued at €3.4 billion.
FTSE 100 higher as Smurfit Kappa adds 4%, Melrose falls back
Thursday 2 May 2024 10:18 , Graeme Evans
Progress by Standard Chartered and pushback against another US interest rate hike today helped the FTSE 100 index.
US Federal Reserve boss Jerome Powell reported insufficient progress towards the central bank’s 2% inflation goal, but added the next rate move was unlikely to be higher.
Last night’s message that rate cuts have been delayed rather than cancelled set the tone for the FTSE 100 to rise 26.44 points to 8147.68.
Standard Chartered lifted 5% after its strong update, while Asia-focused insurer Prudential rebounded 16p to 721p.
Elsewhere, Smurfit Kappa added 4% or 150p to 3624p after the packaging group reported a “very strong first quarter“ ahead of July’s planned merger with US-based WestRock.
GKN Aerospace business Melrose Industries fell 2% or 13p to 608p despite reporting an 8% rise in quarterly revenues and reiterating recently enhanced profit guidance. Engines maker Rolls-Royce retreated 4.8p to 402.7p.
The FTSE 250 index rose 22.72 points to 19,949.31, with TI Fluid Systems up 2% or 3.4p to 139.8p after reporting a good start to the year.
Precision instruments firm Spectris moved the other way, down 46p to 3226p following softer than expected first quarter trading.
Market snapshot: FTSE 100 higher
Thursday 2 May 2024 09:37 , Daniel O'Boyle
Take a look at the latest market snapshot as the FTSE 100 rises
Revolution confirms talks with Nightcap on rescue deal
Thursday 2 May 2024 08:53 , Daniel O'Boyle
The business behind Dirty Martini and the Cocktail Club is in talks with Revolution Bars over a deal to rescue the struggling student haunt operator.
Revolution confirmed last night’s reports that London bars chain Nightcap was interested in acquiring the business, which is fighting for survival. Revolution closed a quarter of its sites this year and is seeking to raise £12.5 million to stay afloat as it has struggled with a fall in demand among young people.
It said Nightcap was looking at “a range of transactions”, including buying the whole business, but added that there was “no certainty that it will lodge an actual bid. It must decide whether to make a bid by 30 May, per the City Code on takeovers.
Today, Revolution shares rose by 5.2% to 1.5p. That’s still down 70% for the year and leaves the business valued at only £7 million. Nightcap shares lost 3.6% to 4p.
Standard Chartered leads FTSE 100, Shell higher on earnings beat
Thursday 2 May 2024 08:27 , Graeme Evans
Standard Chartered shares have jumped 6% after the lender’s first quarter profit of $5.2 billion (£4.1 billion) came in well ahead of City forecasts.
Its shares rose 43.4p to 738.4p, wrapping up a strong results season for London-listed banking stocks.
The FTSE 100 index rose 22.90 points to 8144.14, with Shell higher after its first quarter earnings of $7.7 billion (£6.1 billion) also beat forecasts.
The oil giant rose 16.5p to 2835.5p, with a seven-week low for Brent Crude offsetting some of the results progress and plans to buy back another $3.5 billion (£2.8 billion) of its shares.
Other risers included packaging group Smurfit Kappa, which lifted 3% or 116p to 3590p after reporting a strong first quarter performance.
The FTSE 250 index rose 4.83 points to 19,931.42, with the shares of precision measurements firm Spectris down 88.3p to 3183.7p amid a softer than expected start to the year.
Shell quarterly earnings above $7 billion and ahead of forecasts
Thursday 2 May 2024 07:42 , Michael Hunter
Shell, the UK’s biggest energy company, revealed a 10% rise in the production of traditional fossil fuels this morning as its first-quarter income beat forecasts at over $7 billion (£5.6 billion)
In its Renewables division, earnings turned positive after as loss in the fourth quarter of last year, with earnings up 6% to $267 million. That came after a drop in operating expenses, although margins also fell.
The £180-billion giant said the overall rise in income “reflected lower operating expenses, higher margins from crude and oil products trading” ... and higher refining margins, partly offset by lower [Liquified Natural Gas] trading and optimisation margins.”
The headline income number was ahead of City forecasts at the UK’s second-biggest company.
Reach hails 'robust performance' despite continued revenue slide
Thursday 2 May 2024 07:34 , Daniel O'Boyle
Mirror and Express owner Reach hailed a ‘resilient performance’ despite revenue declining by another 6.7%, while online page views were down 33%.
The business, like many publishers, was hurt by social media sites like Facebook and X.com ‘deprioritising’ news.
It said “data driven revenue”, which includes affiliate content or pieces written by advertisers, did better and now makes up almost half of digital revenue.
Reach said: “The factors affecting trading in Q1 remain unchanged from those outlined at the full year results with performance continuing to be robust.”
CEO Jim Mullen said: “We have set the business up to succeed - the decision to take cost action early, alongside the continued implementation of the Customer Value Strategy is delivering a growing yield performance and driving results. This gives me confidence that we can continue to navigate current market conditions. With events like the European Football Championships, Olympics and elections round the corner we have the opportunity to generate high levels of interest by entertaining and informing our audiences with brilliant journalism.”
FTSE 100 seen higher amid calm US rates reaction, Brent Crude at $84
Thursday 2 May 2024 07:13 , Graeme Evans
The FTSE 100 index is set for a stronger session after interest rate comments by Federal Reserve chair Jerome Powell failed to unsettled US markets.
Powell said there had been insufficient progress towards the bank’s 2% inflation goal in the first quarter, meaning rates will stay elevated for longer.
The Federal Reserve kept its interest rate in the range of 5.25% and 5.5% but Powell said he did not believe additional increases would be necessary.
The Dow Jones Industrial Average finished 0.2% stronger and the S&P 500 index and Nasdaq fell by 0.3%. Hong Kong’s Hang Seng index rose 2% this morning but other Asian markets have posted mixed performances.
The FTSE 100 index is forecast by IG Index to open about 37 points higher at 8155, having fallen 0.3% in yesterday’s session. Brent Crude is at a seven-week low of $83.99 a barrel and gold at a four-week low of $2314 an ounce.
Recap: Yesterday's top headlines
Thursday 2 May 2024 06:50 , Simon Hunt
Good morning from the Standard City desk.
The UK stock market has had a spring in its step over recent weeks thank goodness. And not before time.
Investors seem to have finally woken up to the value that can be found in the unloved FTSE 100.
But the bigger problem has not gone away.
UK listed equities are all too frequently overlooked, even, or perhaps particularly, by UK pension funds — for a whole variety of reasons that go back to Brexit and beyond.
One important factor is the tech revolution in America.
For the average pension fund pot of £20,000 that is £437 in Microsoft, £420 in Apple, £353 in Nvidia, £286 in Alphabet — the parent company of Google — £218 in Amazon, £168 in Tesla and £151 in Meta.
Yet only 5% of the contributions coming into the Government’s workplace pension scheme Nest are being invested in UK equities, just half the level being ploughed into a handful of US mega-stocks.
It is not an easy nut to crack and the Government would be unwise to start ordering fund managers to pick stocks just because they are home grown.
But the knock-on effects of the long-term under investment in UK plc are profound and play a major role in the economy’s record of lacklustre growth broken only by the occasional unsustainable sugar rush of consumer-driven exuberance.
~
Here’s a summary of our top headlines from yesterday:
Nationwide says property prices dipped in April as higher interest rates hit buyer demand
Next sees sales rise 5.7% ahead of expectations and on track for £1 billion profit next year
Wickes says pandemic era new kitchen installation boom is over with sales down 18%
Aston Martin Lagonda to launch four new models this year in what CEO calls “year of immense product transformation”
GSK ups guidance amid strong start to first quarter with sales and profits up
