FTSE 100 Live: UK inflation in focus after index closes up 0.2%, Unilever leads risers after shake-up
As many as 7500 Unilever jobs are to go after the consumer goods giant unveiled a restructuring alongside plans to spin-off its ice cream division.
Other companies in the spotlight today include Wickes, Trustpilot, DFS Furniture and Close Brothers, which is dealing with the impact of a FCA review of motor loans.
In a busy week for central bank decisions, Japan ended its negative interest rate policy following the first increase since 2007.
Meanwhille, the FTSE 100 is steady today.
FTSE 100 Live Tuesday
Marmite maker Unilever to cut 7500 jobs
Japan ends negative rates policy
Close Bros braced for car loans impact
UK inflation moves into focus
Tuesday 19 March 2024 17:28 , Daniel O'Boyle
Here’s what’s in store tomorrow. The latest UK inflation figures will be especially closely watched ahead of this week’s Bank of England meeting, and are expected to show the pace of price rises falling to 3.5%.
Results
Prudential, Computacenter, Eurocell, FDM Group, Kenmare Resources, Ceres Power
Trading updates
Investec
Economics
7am UK inflation
6pm US Fed rate decision
UK PMIs (March)
Japan inflation
Banks
Heads of UK banks appear before the Treasury Committee
Read more on this week’s inflation figures here
FTSE 100 closes at 7,738.30
Tuesday 19 March 2024 16:37 , Daniel O'Boyle
The FTSE 100 closed at 7,738.30, up 0.2% for the day.
Unilever was the top riser, as it announced a major shake-up including 7500 job cuts and an ice cream spin-off.
Big fallers included Reckitt and Fresnillo.
The index was as low as 7700 just in the late morning before rallying.
Market snapshot: FTSE 10 up
Tuesday 19 March 2024 15:57 , Daniel O'Boyle
Take a look at the latest market snapshot with the FTSE 100 now up for the day following an afternoon rally
‘Pent-up demand’ will drive 2025 housing market boom, Mortgage Advice Bureau says
Tuesday 19 March 2024 15:15 , Daniel O'Boyle
The mortgage market is already in the “early stages” of recovery, and “pent-up demand” could lead to a boom in homebuying in 2025, according to the country's biggest broker the Mortgage Advice Bureau.
The firm today revealed the impact of the aftermath of Liz Truss’s disastrous mini-Budget and the Bank of England’s repeated rate hikes, as new lending tumbled by 21% to £19 billion last year. The buy-to-let sector was hit hardest, with new lending to landlords cut in half.
Mortgage holders and house hunters eye looming inflation data before Bank of England interest rate call
Tuesday 19 March 2024 14:29 , Daniel O'Boyle
Inflation is back at the top of the agenda tomorrow, in the last set-piece release of economic data before the Bank of England’s decision on interest rates on Thursday.
It is also one of the most significant. The consumer price index for February is expected to fall for the first time since November, coming down to 3.5% year-on-year from 4%. It stayed stuck last month after a shock rise in December.
Experts at HSBC expect a “broad-based” drop in prices, but one “likely to be particularly forceful in restaurants and clothing, helping deliver material declines in both core goods and services inflation.”
Ted Baker ‘calls in administrators’ in latest UK fashion collapse
Tuesday 19 March 2024 13:33 , Daniel O'Boyle
The parent company of Ted Baker is set to call in administrators for its UK business in the latest British fashion sector collapse, according to reports.
Sky News is reporting that “hundreds of jobs” are at risk as No Ordinary Designer Label looks to bring in insolvency specialists from Teneo.
The Telegraph had reported last month that the business was close to collapse, and was considering briging in Teneo for restructuring.
Harvey Nichols to axe dozens of jobs in head office overhaul
Tuesday 19 March 2024 12:08 , Daniel O'Boyle
Harvey Nichols has launched a major shake-up of its operations, with plans to cut dozens of head office jobs.
The historic department store chain said less than 5% of workers are at risk of redundancy as result.
It understood this will affect around 60 London-based employees, subject to a consultation process.
Market snapshot: FTSE 100 lower
Tuesday 19 March 2024 11:47 , Daniel O'Boyle
The FTSe 100 has lost some ground in late-morning trading.
Take a look at our latest market snapshot:
City Comment: Who cares if Elon Musk’s using ketamine? It’s better than another dull CEO
Tuesday 19 March 2024 11:19 , Simon English
How much are investors entitled to know about the mental health/medication issues of the CEOs in whom they place so much trust?
The question arises after Elon Musk, the genius inventor and bored billionaire, told a reporter he uses ketamine.
To you and I ketamine sounds terribly serious. Something used by teenagers with no better sense and vets who need to sedate horses.
The Tesla founder says he is “almost always” sober when he posts on X, the former Twitter platform he bought for $44 billion and no obviously good reason, a while back.
Trustpilot shares continue strong run, FTSE 100 flat
Tuesday 19 March 2024 10:28 , Graeme Evans
A five-star earnings report today ensured Trustpilot kept up its run as one of this year’s best performing FTSE 250 stocks.
The consumer reviews platform lifted another 6% or 11.6p 216.8p, taking it closer to the debut price of 265p in its £1.1 billion stock market float of 2021.
The shares were as low as 65p last July, but have since rallied after a series of earnings upgrades culminated in today’s better-than-expected haul of $16 million (£12.6 million).
Chief executive Adrian Blair today hailed 2023’s strategic progress as he highlighted confidence in another year of mid-teens constant currency revenues growth.
Trustpilot was joined at the top of the FTSE 250 by PureTech Health as the biotherapeutics company revealed plans to return $100 million (£78.9 million) to shareholders.
The money comes from its remaining stake in Karuna, the schizophrenia treatment business it helped to found and which Bristol Myers Squibb bought for $14 billion (£11 billion) yesterday.
Elsewhere in the FTSE 250 index, Crest Nicholson slid 8% or 18.8p to 205.2p after its in-line trading update revealed a potential £15 million hit from build defects on some legacy projects completed prior to 2019.
And high-yielding Diversified Energy Company, which is focused on natural gas assets in the United States, fell 42p to 881.5p on plans to rebase its dividend.
The FTSE 250 index declined 40.25 points to 19,446.28, while the FTSE 100 index drifted 2.91 points to 7719.84 as traders awaited interest rate decisions in the UK and US.
On today’s blue-chip fallers board, Reckitt Benckiser dropped another 150p to 4425p and Vodafone remained under pressure after a decline of 0.7p to 66.7p.
Crest Nicholson shares tumble as it warns of 'build defects'
Tuesday 19 March 2024 10:20 , Daniel O'Boyle
Shares in housebuilder Crest Nicholson tumbled this morning as it set aside £15 million to fix “build defects” on its London homes.
Crest said the defects - at four sites within its regeneration and London arms, which closed in 2019 - will be fixed over the next three years. It put aside £15 million to cover the costs, but has appointed consultants “to provide greater assurance” on that figure.
Investec analyst said the decision to bring in consultants was “unnerving”.
Shares slide by 8.5% to 205p, taking nearly £50 million of the housebuilder’s market value.
Crest Nicholson expects to build between 1,800 and 2,000 new homes this year, with around two thirds of those coming in the second half. Sale prices are expected to be flat on 2023.
Mortgage market in 'early stages' of recovery, Mortgage Advice Bureau says
Tuesday 19 March 2024 10:07 , Daniel O'Boyle
The mortgage market is already in the “early stages” of recovery, and “pent-up demand” could lead to a boom in homebuying in 2025, according to the country's biggest broker the Mortgage Advice Bureau.
The firm today revealed the impact of the aftermath of Liz Truss’s disastrous mini-Budget and the Bank of England’s repeated rate hikes, as new lending tumbled by 21% to £19 billion last year. The buy-to-let sector was hit hardest, with new lending to landlords cut in half.
But the Bureau was optimistic on the future, especially 2025. Boss Peter Brodnicki says could be a “catch-up year” as people who have held off on buying a home because of high interest rates finally make the purchase.
Diageo appoints ex-BP exec as new chairman
Tuesday 19 March 2024 09:31 , Simon Hunt
Spirits maker Diageo has appointed former civil service boss Sir John Manzoni as its new Chairman.
The Gordon’s, Smirnoff and Guinness maker said Manzoni was appointed for his “outstanding track record of leadership” and will take on the new role in February 2025.
Manzoni spent more than 20 years at oil and gas giant BP, rising to become chief executive for refining and marketing at BP until 2008. An internal investigation cleared him of "serious neglect or intentional misconduct” after an explosion at BP’s Texas City refinery in 2005, in which 15 people were killed and 170 were injured, but said he should have taken more steps to consider and mitigate the risks long before the disaster occurred.
In 2014 Manzoni was appointed the first ever chief executive of the UK civil service, a role which he held till 2020.
He was appointed Knight Commander of the Order of the Bath (KCB) in 2020, for public service.
Manzoni will succeed Javier Ferrán, who has served on the board since 2016.
DFS shares slide on guidance cut, but Wickes looks more resilient
Tuesday 19 March 2024 09:24 , Simon Hunt
DFS today warned consumer demand has “weakened significantly” as the sofa retailer revealed a cut in its dividend.
The Doncaster-based business said it had seen a 16% drop in order volumes in the first two months of the year, causing it to slash its profit and revenue forecasts by £20 million and £60 million respectively.
DFS warned that those forecasts could be further impacted if issues in the Red Sea shipping route were not resolved, leading to prolonged delivery times.
Its interim dividend was cut to 1.1p from 1.5p per share. DFS shares fell 7% to 105p.
Turnover at kitchen and bathroom retailer Wickes appeared more robust today, with its 2023 sales broadly consistent with the previous year, but there were also signs that the market was beginning to soften.
CEO David Wood said the firm’s bespoke design and installation service had seen subdued demand, but that this had been offset by stronger demand from tradesmen.
“We can still see that people are motivated to modernise and improve their homes, but they’re just doing that with a more economic overlay,” Wood told the Standard.
Market snapshot
Tuesday 19 March 2024 09:17 , Daniel O'Boyle
The FTSE 100 is close to flat today, with Unilever the top riser
Take a look at today’s market snapshot:
Unilever shares up 5% in steady FTSE 100, Trustpilot higher
Tuesday 19 March 2024 08:30 , Graeme Evans
The restructuring plans of Unilever were backed by investors today as shares topped the FTSE 100 index with a rise of 5% or 204p to 4015.5p.
Stronger miners Rio Tinto and Anglo American also helped London’s top flight, which recovered from a weak start to stand 4.31 points higher at 7726.86.
On the fallers board, Reckitt Benckiser dropped 140p to 4435p and Vodafone remained under pressure after a decline of 0.7p to 66.7p.
In the FTSE 250 index, Trustpilot rose 9.8p to 215p on annual results but Crest Nicholson dropped 10.4p to 213.6p after its AGM trading update.
Diversified Energy Company, the high yielding FTSE 250 company focused on the acquisition, production and retirement of natural gas assets in the United States, fell 40p to 883.5p following annual results.
Marmite-to-Dove maker Unilever to cut 7500 jobs under £14m CEO's restructuring plan
Tuesday 19 March 2024 08:18 , Daniel O'Boyle
Unilever shares are up 5.3% today, bringing its market cap back above £100 billion, as the firm announced big job cuts and the spin-off of its ice cream arm.
That brings the shares close to where they were a year ago.
Unilever today said its ice cream business is run differently to most of its other divisions and so should be run under a “different ownership structure”.
While it said it had not made a final decision on the best path for the ice cream division, Unilever said the “most likely” option was a demerger.
AstraZeneca in another billion-dollar deal
Tuesday 19 March 2024 07:59 , Daniel O'Boyle
AstraZeneca has made its second billion-dollar acquisition in a matter of days, buying cancer treatment maker Fusion Pharmaceuticals for $2 billion.
Fusion develops radioconjugates, which deliver radiation therapy directly to cancer cells in a more targeted treatment than chemotherapy.
Susan Galbraith, Executive Vice President, Oncology R&D, AstraZeneca, said: “Between thirty and fifty per cent of patients with cancer today receive radiotherapy at some point during treatment, and the acquisition of Fusion furthers our ambition to transform this aspect of care with next-generation radioconjugates.
“Together with Fusion, we have an opportunity to accelerate the development of FPI-2265 as a potential new treatment for prostate cancer, and to harness their innovative actinium-based platform to develop radioconjugates as foundational regimens.”
It bought French rare disease drugmaker Amolyt Pharma last week.
Close Brothers says preparing for impact of car loans probe is of "paramount importance"
Tuesday 19 March 2024 07:40 , Michael Hunter
Close Brothers has said bracing for the impact of the probe into hoe car loans were sold in the UK is of “paramount importance”.
One of the most historic names in the City, the bank has already cancelled its dividend to set aside cash for potential payouts.
The scrutiny on the industry from the Financial Conduct Authority in one of the biggest actions from regulators since the payment protection insurance paybacks.
Close said:
“The FCA's review of the motor finance industry is ongoing and it would be premature to predict the outcome or estimate the potential impact on the group. The Board however recognises the paramount importance of preparing the group for a range of outcomes from this review.:
The statement came as Close reported a sharp rise in profit before tax for 2024, of £94 million, up from £11.7 million a year earlier.
But it called the FCA probe into car loans as a source of “significant uncertainty”.
The probe follows customer complaints over the industry, where car dealers were being offered larger commissions for more expensive financing arrangements. That led to some people being sold higher interest loans than ones they could have secured.
Lloyds set aside £450 million for potential payouts last month.
Close Brothers Motor Finance provided around 100,000 customer loans last year and has over 5,000 motor dealer partners from small independent garages to large multi-franchised dealerships.
Marmite maker Unilever to cut 7500 jobs
Tuesday 19 March 2024 07:22 , Daniel O'Boyle
Consumer goods giant Unilever is set to cut as many as 7,500 jobs as its new CEO brings in a massive restructuring program after warning that the Cornetto-to-Dove behemoth’s 2023 results were disappointing.
It will launch “a comprehensive productivity programme,” to save €800 million over the next three years. A total of 7,500 roles, mostly based in offices, will be affected
Japan ends long run of negative rates, FTSE 100 seen lower
Tuesday 19 March 2024 07:17 , Graeme Evans
Japan’s first interest rate hike in 17 years failed to derail the Nikkei 225 today, with Tokyo’s leading benchmark 0.7% higher by the close.
The Bank of Japan’s change in short-term rate to between zero and 0.1% ended eight years in negative territory, a move widely predicted by economists.
Elsewhere, policymakers in Australia kept the country’s base rate unchanged at 4.35% ahead of decisions by the US Federal Reserve tomorrow and Bank of England on Thursday.
A rally by technology stocks meant the S&P 500 rose 0.6% and the Nasdaq Composite by 0.8% last night, but the strong handover from Wall Street failed to prevent a weaker session for China-focused markets.
The FTSE 100 index closed five points lower last night and is forecast by IG Index to open down by 31 points to 7691. Brent Crude, meanwhile, is trading at its highest level since November after another rise to near $87 a barrel.
Recap: Yesterday's top stories
Tuesday 19 March 2024 06:42 , Simon Hunt
Good morning from the Standard City desk.
Should Nationwide’s 16 million members be given a vote on its wild, wild, £2.9 billion takeover of Virgin Money?
If mutuality means anything at all, the answer is obviously yes.
If Nationwide truly had confidence in the transaction, it should be sure it could persuade those members of the merits of the deal.
Instead, it is hiding behind the notion that Nationwide has always grown by acquisition, noting that it didn’t ask members to approve the takeover of the puny Portman Building Society in 2007, as if that were remotely comparable.
One of Nationwide’s functions is to mop up smaller, struggling building societies, to take on the other mutual’s assets, protecting them from the avaricious banking sector.
That is one of the many reasons why, if you were going to get emotionally attached to a financial business, Nationwide would be the only one.
It has been a force for good, a permanent brake on rival banks since 1884.
That status is severely at risk by its move to takeover a business that used to be called Northern Rock (yes, that one).
Here’s a summary of our top stories from yesterday:
Computer software firm Bytes, market value £1.4bn, said it is "shocked and saddened" after investigation reveals CEO's secret unauthorised trading on 119 separate occasions.
Failed takeover: Currys optimistic on future as standalone London-listed firm after two bidders pull out - ups profit guidance to £115m
British Land and Royal London to turn Meta office at Triton Square into "a best in class science and innovation building" - the agreement values the building at £385m. Meta had paid £149m last year to cut lease short
Music rights fund Hipgnosis says the value of its portfolio of hits by artists including Blondie and Shakira had been overstated by about 7.6% due to double counting
CEO of bar group Nightcap warns on "uncertain and challenging" few months ahead as losses widen but adds: "hospitality has gone through the worst of this downturn."
Ronnie Scotts owners pay themselves £3m dividend, filings show, as 83-year-old owner Michael Watt sells up to mysterious offshore entity called 'Jazz Box'
An electric vehicle business backed by David Beckham and championed by Sir Keir Starmer has put its commercial arm into administration after production setbacks
