Yahoo Finance FTSE 100 Live 7 May: Index closes up 100 points at yet another record high, BP profits down, FRC fines
The momentum for London’s FTSE 100 index is continuing in a session that has also featured BP quarterly results.
The oil giant’s profits came in lower than a year ago but the decline failed to prevent another big return of cash to shareholders.
Across the London market, blue-chips remain in demand as the FTSE 100 index today traded above the 8300 mark for the first time.
FTSE 100 Live Tuesday
BP posts lower quarterly profit
FTSE 100 tops 8300
Audit firms get LC&F fines
Wetherspoons results tomorrow
Tuesday 7 May 2024 17:22 , Daniel O'Boyle
Wetherspoons will be the highlight tomorrow morning, before Arm results in the US
Results
Brighton Pier, Boohoo, Alliance Pharma
Trading updates
JD Wetherspoon, OSB, Direct Line, Renishaw, Arm Holdings
US Results
Airbnb
Economics
KPMG jobs report
US crude oil inventories
FTSE 100 closes up 100 points
Tuesday 7 May 2024 16:45 , Daniel O'Boyle
The FTSE 100 closed up almost exactly 100 points today at 8,313.67, another record high.
London’s top-flight broke the 8300 mark for the first time today and peaked at 8334, an intraday record.
It’s up almost 500 points in the last three weeks.
Market snapshot: FTSe 100 up 100 points
Tuesday 7 May 2024 15:37 , Daniel O'Boyle
Take a look at our market snapshot on another great day for London shares
The blinkered Bank of England has missed the economic warning signs. It needs to cut interest rates now
Tuesday 7 May 2024 14:21 , Daniel O'Boyle
Amid his countless legal battles, Donald Trump has stirred even more controversy, this time among economists. If re-elected as President of the United States he has stated he will impose a tariff of at least ten per cent on all goods entering the country. What is more, his supporters have told critics of his proposals that they are not inflationary.
Tariffs are paid by firms in the importing country which increases costs for them. They may choose to absorb these costs themselves or pass them onto consumers in the form of higher prices.
Whether or not we should consider tariffs as inflationary in the traditional sense is in many ways irrelevant.
But it does raise an interesting question for policymakers at the Bank of England: What is it exactly that causes inflation?
Early Easter and bad weather contribute to drop in spring retail sales figures
Tuesday 7 May 2024 13:13 , Daniel O'Boyle
A rebound in the UK’s construction industry has picked up pace with activity rising at the fastest rate in more than a year, despite a persistent slump in housebuilding.
The latest S&P Global construction purchasing managers’ index (PMI) scored 53.0 in April, up from 50.2 in March, and the highest level since February last year.
It also surged past the expectations of analysts who had predicted a score of 50.4 for the month.
P&O Ferries boss admits paying workers £4.87 per hour
Tuesday 7 May 2024 12:21 , Daniel O'Boyle
The boss of P&O Ferries has admitted to paying the firm’s workers as little as £4.87 per hour, nearly two years on from a scandal which saw it branded “pirates” for laying off hundreds of staff without notice.
Peter Hebblethwaite repeatedly told MPs on the Business and Trade Committee that P&O’s workers were not being exploited, while resisting calls for an independent investigation into the company’s employment practices.
The chief executive, who admitted he could not live on £4.87 per hour, also revealed he earned £508,000 including a bonus of £183,000 last year.
WeWork rival IWG keeps switch to US accounting standards under review as it mulls New York listing
Tuesday 7 May 2024 11:28 , Daniel O'Boyle
One of WeWork’s biggest rivals has said it continues to review a potential switch to US accounting standards in the latest sign that a listing in New York is on the cards.
UK-based serviced office business IWG said adopting US GAAP “remains under evaluation”, adding that a final decision would be taken “in the coming months” as the firm weighs whether to ditch its London-listing in search of higher valuations in the US.
The firm, which has more than 4,000 office locations worldwide, has already begun reporting its results in US dollars instead of pound sterling.
Ocado and JD Sports higher as FTSE 100 tops 8300, FTSE 250 up 1%
Tuesday 7 May 2024 10:22 , Graeme Evans
The handover from Monday’s strong Wall Street session today helped London’s FTSE 100 index advance deeper into record territory, up 91.21 points at 8304.70.
Rate-sensitive Ocado rose by 14.4p to 370p, while US-focused JD Sports Fashion, Rentokil Initial and Flutter Entertainment were all up more than 2%.
Their gains came after the S&P 500 rallied more than 1% on revised bets on when Federal Reserve might loosen monetary policy.
Other strong FTSE 100 stocks included Marks & Spencer, which improved 5.5p to 263.8p, and Barratt Developments after a gain of 5.3p to 484p.
In a session when defensive healthcare companies struggled, AstraZeneca added 42p to 12,092p as City firm Berenberg raised its price target to 13,000p.
The FTSE 250 rose 216.99 points to 20,381.53, while AIM-listed games developer Frontier Developments gained 5p to 270p thanks to improved profits guidance.
Construction returns to growth despite new housebuilding decline
Tuesday 7 May 2024 09:37 , Daniel O'Boyle
The UK construction sector recorded its strongest growth in over a year in April, despite a new setback for housebuilding, according to an influential business survey.
The S&P Global UK Construction PMI survey reading for April was 53.0, well ahead of March’s 50.2, or the expected figure of 50.4. Any figure above 50 represents growth. The expansion was driven by strong performance in commercial building and infrastructure.
However, housebuilding returned to decline, after March figures showed the sector was stable for the first time in more than a year,
Tim Moore, Economics Director at S&P Global Market Intelligence, which compiles the survey, said: "The construction sector consolidated its recent return to growth in April, with total industry activity rising at the fastest pace for 14 months amid an ongoing recovery in order books. Demand was boosted by greater confidence regarding the broader UK economic outlook. Commercial construction outperformed in April and civil engineering also provided a solid contribution to overall growth.
"Lacklustre market conditions in the house building segment continued to weigh on activity. The latest survey pointed to the fastest reduction in residential building work since January, although the speed of the downturn remained much softer than in the second half of 2023.”
Revolution Bars 'in talks with 32 parties' on sale
Tuesday 7 May 2024 08:54 , Daniel O'Boyle
Revolution Bars is in talks with 32 suitors as it hopes to find a buyer that could rescue the flagging student haunt operator.
The business launched a formal sale process last month, as it struggled with a slowdown in demand from its core customer base of young people.
Today the business revealed that 42 parties were invited to take part in the formal sale process, and 32 have agreed to do so. In addition, Dirty Martini owner Nightcap - which is not part of the formal sale process - says it is “ exploring all options” in regard to buying part or all of Revolution.
While the sales process goes on, Revolution is also launching a restructuring plan, which would lead to it closing 18 bars, and cutting hundreds of jobs.
The business said: “The board welcomes the interest of all parties in the group and its businesses and is open to exploring all options that may deliver a superior outcome to the restructuring plan.”
Revolution shares gained 9% to 1.8p this morning, leaving the business valued at £7.8 million.
Market snapshot as FTSE 100 surges
Tuesday 7 May 2024 08:31 , Daniel O'Boyle
Take a look at our market snapshot as the FTSE 100 surges past the 8300 mark.
FTSE 100 sets new record after 1% jump, M&S shares up 3%
Tuesday 7 May 2024 08:20 , Graeme Evans
Buoyant trading conditions have continued after the long weekend to leave the FTSE 100 index up 1.1% or 88.87 points at a record 8302.36.
Among strongly performing stocks, British Airways owner IAG rose 3% or 5.1p to 183.75p and Flutter Entertainment lifted by 365p to 16,070p.
UK property or retail companies also fared well as Barratt Developments added 9.6p to 488.3p and Marks & Spencer rose by 3% or 6.7p to 265p.
BP shares were 1.9p higher at 512.3p after its first quarter results, a performance that lagged rival Shell with a gain of 1.5% or 44.5p to 2903p.
Defensive stocks were out of favour as healthcare firms Smith & Nephew and Haleon led a shortened fallers board. The FTSE 250 index rose 159.42 points to 20,323.96.
Average house price could be £61,500 higher by end of 2028, forecast suggests
Tuesday 7 May 2024 08:19 , Daniel O'Boyle
A house price growth forecast has been revised upwards, based on an improved economic outlook.
Across Britain, property values are expected to have increased by just over a fifth (21.6%) on average by the end of 2028, revised from a previous forecast of 17.9%, Savills said.
The revised forecast could mean the average house price grows by £61,500, from £285,000 in 2023 to £346,500 by 2028.
Audit watchdog issues fines for London Capital failure
Tuesday 7 May 2024 07:43 , Simon English
The audit watchdog today issued sanctions over the collapse of London Capital & Finance, a now insolvent fund that took money from nearly 12,000 investors.
The executive counsel of the Financial Reporting Council dished out punishments to Oliver Clive and Co and its partner Emma Benjamin, PricewaterhouseCoopers and Jessica Miller, Ernst & Young and its partner Neil Parker.
All three were hit with fines in relation to one of the City’s most long running scandals and “severe reprimands” for audit failures.
PwC is the most eye-catching punishment, a punishment of £7 million discounted to £4.9 million for “admissions and early disposal”.
All three individual accountants got fines of £20,000, £105,000 and £47,250 respectively.
A court earlier heard that LC&F was a “Ponzi” scheme where money raised from UK investors was spent on horses, diamonds and membership of Annabel’s nighclibt.
London Capital raised £237 million from investors, promising returns of 8% a year. It failed in 2019 leading to criminal and regulatory probes.
The FRC said this morning: “The failures included multiple contraventions of fundamental requirements affecting key areas of the financial statements. The most significant issue was the failure to obtain an adequate understanding of the nature of LCF’s business and the company’s internal controls, and to apply sufficient professional skepticism in that regard. PwC resigned as LCF’s auditor in October 2017 .”
BP sticks with multi-billion dollar investor payout plans as first quarter profits miss City forecasts
Tuesday 7 May 2024 07:36 , Michael Hunter
BP, the UK’s second-biggest oil major, stuck with its plans to return cash to shareholders today, even as its quarterly profit fell and missed City forecasts.
For the first quarter of the year, underlying replacement cost profit fell to $2.7billion, from $2.9 billion in the fourth quarter and almost $5 billion in the same period a year ago. It was expected to be $2.9 billion.
Oil and gas prices on global energy markets were lower in the period
BP will keep the pace of its share buy back at $1.75 billion for the quarter, and repeated its commitment to return $3.5 billion in the first half of the year.
Murray Auchincloss called the numbers “resilient”, and pointed to cost-cutting plans:
“Oil production was up ... We are simplifying and reducing complexity across BP and plan to deliver at least $2 billion of cash cost savings by the end of 2026.”
FTSE 100 seen near 8300 after US markets rally
Tuesday 7 May 2024 07:21 , Graeme Evans
The FTSE 100 index is set for another record position after the S&P 500 index last night closed 1% higher and the Nasdaq lifted by 1.2%.
Among the Magnificent Seven, Nvidia jumped 4% and Meta Platforms by 3% after Friday’s weak jobs report boosted US interest rate cut hopes.
The FTSE 100 index closed at 8213 on Friday and is forecast to rise by at least 1% to above 8300 as traders catch up developments after the long weekend.
As well as the strong session on Wall Street, European markets also traded in positive territory yesterday.
In commodities, Brent Crude is at $83.45 a barrel with gold at $2319 an ounce.
Time to Act to float on Aquis
Tuesday 7 May 2024 07:19 , Daniel O'Boyle
Energy transition engineering business Time to Act is to float on the Aquis exchange, in a rare UK IPO.
The business, which made a profit of £1.9 million last year, hopes to raise £1 million.
It said raising the money will help the company “de-risk growth and “support its strategy of coupling organic growth and acquisition”.
Executive chair Chris Heminway said: "Today marks a pivotal moment for Time To Act as we embark on the next phase of our journey to address opportunities in the energy transition supply chain.
“Our decision to float on the AQSE Growth Market underscores our commitment to fostering innovation in this sector and developing engineering-led solutions for a cleaner, greener world.”
It comes amid a dearth of UK listings this year.
Data from Mergermarket for the Evening Standard last week showed the London Stock Exchange’s main market was outside the top 20 stock exchanges for money raised by IPOs this year.
Halifax: House prices edge up in April
Tuesday 7 May 2024 07:10 , Daniel O'Boyle
UK houses prices edged up in April, according to the country’s biggest lender Halifax.
The average home now costs, £288,949, up less than £200 from March.
The slight rise is in contrast with figures from Nationwide, which showed house prices slipping in April.
Halifax Head of Mortgages Amanda Bryden said: “This reflects a housing market finding its feet in an era of higher interest rates. While borrowing costs remain more expensive than a few years ago, homebuyers are gaining confidence from a period of relative stability.
“Activity and demand is improving, evidenced by greater numbers of mortgage applications so far this year, while at an industry level mortgage approvals have reached their highest point in 18 months.”
Recap: Friday's top stories
Tuesday 7 May 2024 06:51 , Simon Hunt
Good morning from the Standard City desk.
The London markets were closed yesterday, but US stocks jumped to complete their best three-day rise so far this year amid renewed hopes of rate cuts in the near future.
Colorado-based Palantir was a notable exception -- with its stock falling as much as 7% after its guidance came in lower than market expectations. The tech firm said it expects second-quarter revenue to fall between $649 million to $653 million.
Here’s a summary of our top headlines from Friday.
More trouble for London Stock Exchange as new figures show it dropping out of the top 20 global IPO destinations of 2024, having raised only as much money as Kazakhstan’s stock market
Trainline sees opportunity as operators plan to launch on Eurostar’s London-Paris route next year - profits double to £48m as mainland Europe success continues
IHG says it will get a $25m profit boost this year as it devotes less money to its fund to support franchisees. Revenue per room up 2.6% globally, 2.4% in UK as prices remain “robust”
Diageo appoints Coca Cola finance chief Nik Jhangiani as new CFO
Asda refinances £3.2 billion of debt at higher interest rates
And in City Spy -- why the PR industry may have an AI problem
