FTSE 100 Live: Gilt yields surge again on Gaza fears but shares close ahead, oil above $90
Closing market snapshot
Monday 16 October 2023 17:04 , Daniel O'Boyle
Take a look at our end-of-day market snapshot as the FTSE 100 closed ahead.
FTSE closes up 0.4%
Monday 16 October 2023 16:39 , Daniel O'Boyle
The FTSE 100 closed at 7,630.63 today, up 0.4%, as mining stocks rose despite continued global political uncertainty.
London’s top flight started the day ahead and despite briefly falling into negative territory, quickly returned above 7600.
Fund giants St James’ Place and Hargreaves Lansdown were two of the biggest gainers, alongside Next.
Ocado was again the biggest faller.
How to be a CEO with Richard Joseph: From 'Gremlinesque' mistakes to global success
Monday 16 October 2023 16:04 , Daniel O'Boyle
Twenty years ago Richard and his twin brother Anthony Joseph set up their company, Joseph Joseph, with an idea to revolutionise tasks in the home.
Simple things like making better chopping boards for the kitchen, ironing boards that fold, and all sorts of ways to tidy up those kitchen drawers.
Of course, not everything worked out.
Yet, even with a few missteps here and there, Richard’s now CEO of a company that made a pre-tax profit of 20 million pounds last year, with 75% of their sales coming from outside of the UK.
Listen to the How to be a CEO podcast here
US stocks higher, Man United shares fall
Monday 16 October 2023 15:13 , Daniel O'Boyle
All of the major US stock indices rose this morning, but shares in Manchester United plummeted after reports over the weekend that Shekh Jassim is withdrawing his bid for the club.
Shares in the football club plunged by 11.8% to $17.61, their lowest level since November 2022, when they first surged on reports of a potential takeover.
Jassim and Ineos founder Sir Jim Ratcliffe spent much of the year in a bidding war for the club, but both deals have now fallen apart. Ratclliffe is set to buy a 25% stake in Man united, however.
Take a look at all of our US market data below
US stocks to rise
Monday 16 October 2023 14:27 , Daniel O'Boyle
Wall Street shares are set to rise today ahead of a big earnings week, according to futures markets.
Dow Jones futures are up 0.6% to 34,033.00, while S&P 500 futures are up 0.5% to 4,380.25. Nasdaq futures are up 0.4% to 15,185.25
DX Group reopens 10 former Tuffnells depots after administration deal
Monday 16 October 2023 14:22 , Daniel O'Boyle
DX Group has reopened 10 more former Tuffnells depots after buying them from administrators for the rival delivery firm this summer.
The Slough-based company struck a deal to rescue 15 Tuffnells Parcels Express sites and 250 staff in June.
Sheffield-based Tuffnells hired administrators from Interpath Advisory after it saw intensified pressure on its cash flow and failed in efforts to secure emergency funding.
Market snapshot: Gilt yields keep rising
Monday 16 October 2023 13:10 , Daniel O'Boyle
Take a look at our market snapshot as gilt yields surge further amid fears over the impact of events in Gaza on energy prices.
City Comment: World economies hold their breath for next moves in Gaza
Monday 16 October 2023 13:01 , Daniel O'Boyle
As the full might of Israel’s military forces amass on the border with the Gaza Strip, the world is holding its breath.
How the next few weeks play out once the Israel Defense Forces (IDF) do roll in as they seek to root out Hamas potentially has profound implications for the global economy. So far the market reactions to the unfolding tragedy since the massacres last week have been relatively modest.
Oil and gas prices are up, but not dramatically so — certainly compared with the aftermath of Russia’s invasion of Ukraine. Stock markets appear to be in “wait and see” mode, and bonds have already had their big sell-off, though for very different reasons.
Google added 1300 staff to UK workforce in 2022
Monday 16 October 2023 12:25 , Daniel O'Boyle
Google added more than 1,300 employees to its UK headcount in 2022 in signs it was ramping up its workforce ahead of a move into its mega new Kings Cross headquarters next year.
The tech giant’s UK headcount increased 23% in 2022 to just over 7,000, including around 400 new roles in sales and marketing and over 600 new R&D jobs.
Turnover for the year rose slightly on a pro-rata basis to £2.6 billion, but profits fell by more than half to £283 million.
Barclays submit £1bn Telegraph offer - Sky
Monday 16 October 2023 11:58 , Daniel O'Boyle
The Barclay family has submitted a new blockbuster £1 billion bid to regain control of the Telegraph, according to a report from Sky News.
The deal would value the newspaper well ahead of expectations, and involves financing from Abbu Dhabi-based investors, the report claims.
The Barclays prepared a bid for the newspaper last monnth, which was rebuffed.
Receivers seized the Telegraph on behalf of Lloyds Banking Group in June, over a debt dispute dating back 15 years. They brought in bankers at Goldman Sachs to help conduct a sale.
Market snapshot with FTSE 100 up again
Monday 16 October 2023 11:42 , Daniel O'Boyle
The FTSE 100 is up again after its initial gains disappeared, with mining stocks continuing to lead the risers.
However, bond yields continued to climb.
Take a look at our key market data.
Markets fear Israeli invasion of Gaza will push oil price over $100 a barrel
Monday 16 October 2023 11:26 , Daniel O'Boyle
Energy prices stayed high and stock markets around the world remained febrile as investors eyed the global political situation with nerves.
Talk that gold could pass $2000 and oil could hit $100 a barrel is making markets cautious.
A brutal sell off in global bond markets that had begun even before the Hamas attack on Israel has continued with traders concerned that interest rates will have to keep rising to deal with inflation that could follow higher energy costs.
Rightmove records weakest October for asking price increases since 2008
Monday 16 October 2023 10:41 , Daniel O'Boyle
This year saw the weakest month of October for house sellers’ asking price growth since the 2008 financial downturn, according to a property website.
Across Britain, the average new seller asking price increased by 0.5% (£1,950) month-on-month in October, to reach £368,231, Rightmove said.
Newly-advertised properties typically increase at this time of year, as the autumn selling market gets under way.
Ocado downgrade hits shares, Cerillion up 8%
Monday 16 October 2023 10:09 , Graeme Evans
This summer’s hot streak for Ocado shares continues to fade after the grocery technology stock was hit by another City downgrade today.
The M&S retail partner fell 4% or 20.7p to 510.1p, a level that contrasts with over 950p when talk of Amazon bid interest triggered a buying frenzy in July.
The latest downtrend in the wild ride for Ocado shareholders came as analysts at Barclays cut their stance to “underweight” with a new lower price target of 430p.
The move comes a month after a similar downgrade by counterparts at BNP Paribas Exane caused Ocado shares to lose a fifth of their value in one session.
The technology stock posted the biggest fall in today’s blue-chip session, with the FTSE 100 index down by 12.17 points at 7587.43. The FTSE 250 index lost 36.42 points to 17,417.80.
Sentiment remains fragile, particularly with earnings figures due later this week from major US companies including Goldman Sachs, Tesla, Netflix and Procter & Gamble.
On Friday, strong results by JPMorgan Chase were overshadowed by chief executive Jamie Dimon’s warning that the world may be facing the most dangerous time in decades.
The defensive positioning of investors meant shares in Imperial Brands lifted 13.5p to 1725p, while Shell added 28p to 2750p as Brent Crude traded above $90 a barrel.
Small cap stocks in demand included green energy firm ITM Power after it announced plans for an “accelerated, asset-light” entry into the US market.
The Sheffield-based company, whose electrolyser systems are used in the generation of green hydrogen, rose 3% or 2.4p to 71.6p.
Cerillion, the AIM-listed provider of software for billing, charging and customer relationship management, jumped 8% or 90p to 1150p after it said annual profits will be “meaningfully ahead” of the City’s forecast £14.3 million.
With its pipeline of new customers growing, the London-based company expects to make further progress in the 2024 financial year.
Liberum upped its price target to 1400p and said shares had been unfairly treated after a profit warning by Spirent Communications led to fears of slower demand from telecoms customers.
The broker said: “Today’s trading update demonstrates that these fears are mis-placed.”
Key market data as early FTSE gains fade
Monday 16 October 2023 09:26 , Daniel O'Boyle
The FTSE’s gains this morning quickly disappeared, with the index falling back below 7600.
Take a look at our key market data:
Retail and mining stocks lift FTSE 100, Hipgnosis Songs down 15%
Monday 16 October 2023 08:31 , Graeme Evans
The FTSE 100 index is 9.98 points higher at 7,609.58, aided by the mining sector after gains of 1.5% for shares in Rio Tinto and Anglo American.
Frasers Group also performed well, up 14p to 815p alongside an improvement of 108p to 6962p for high street bellwether Next.
United Utilities improved 2.2p to 1002p after Jefferies raised its price target to 1200p, but Ocado dropped 4% or 19.8p to 511p on the back of Barclays lowering its recommendation to “underweight” with a new estimate of 430p.
The FTSE 250 index lifted 38.79 points to 17,493.01 but among individual midcap stocks Hipgnosis Songs Fund slumped 15% or 11.1p to 62.8p after announcing it would no longer pay an interim dividend.
Hipgnosis shares plunge as it pulls dividend
Monday 16 October 2023 08:14 , Daniel O'Boyle
Shares in music investor Hipgnosis tumbled this morning after it withdrew its divided, as it now sees a much lower-than-expected windfall from an upcoming US Copyright Royalty Board decision on streaming royalties.
The fund had expected royalties of $21.7 million from a board decision to up the amount services like Spotify must pay to artists or rights-holders for music streamed between 2018 and 2022. Hipgnosis owns the rights to many of the most-streamed songs over this time period, by artists such as Shakira, Ed Sheeran and Coldplay.
But now, it expects only $9.9 million. The reduced income caused the fund to pull its dividend, which sent shares down by 15% to 62.8p. Hipgnosis said it had to withdraw the dividend in order to stay within certain cash requirements for its loans.
The fund founded by Merck Mercuriadis and Chic guitarist Nile Rodgers said it still expects to pay future dividends.
Ashley’s Frasers ups stake in Boohoo again
Monday 16 October 2023 07:39 , Simon Hunt
Mike Ashley’s Frasers group has upped its stake in Boohoo yet again, filings show.
The retail conglomerates stake in the fashion brand has been increased from 13.4% to 15.1%. The purchase comes at a time when Boohoo’s shares are at an all-time low, below their 2014 IPO price.
Frasers’ share in the company has increased rapidly since it declared a 5% shareholding back in June.
Last week, Frasers also increased its shareholding in Boohoo rival Asos to 10%.
Podcast network Audioboom to return to profit after slashing minimum creator pay
Monday 16 October 2023 07:33 , Daniel O'Boyle
London-listed podcast network Audioboom said that its efforts to slash minimum payments to creators should help it return to profit in the final quarter of this year.
The business had been struggling amid a decline in ad revenue and the loss of popular true crime podcast Morbid, with revenue falling by 20% to $45.8 million (£37.6 million). But it said revenue is set to rebound to $19 million this quarter.
At the same time, the company has been ”vastly reducing our exposure to minimum guarantees” to podcast creators, with restructured contracts. Thanks to those lower costs, Audioboom expects a return to profit this quarter.
CEO Stuart Last said: “I would like to thank our partners for continuing to support the Company through a more challenging period than we had expected, I am confident about our prospects for 2024 and I am pleased to maintain our expectations for record revenue performance next year.”
FTSE 100 seen higher, US earnings in focus
Monday 16 October 2023 07:14 , Graeme Evans
Brent Crude is trading above $90 a barrel amid fears that an escalation of the conflict in the Middle East will impact global oil supplies.
The geopolitical backdrop also knocked stock markets in Asia on Monday, with the Hang Seng down 0.9% in Hong Kong and the Nikkei 255 off 2.2% in Tokyo.
The FTSE 100 finished 0.6% lower after heavy selling on Friday afternoon but CMC Markets expects London’s top flight to open 26 points higher at 7625.
The S&P 500 index and the Nasdaq fell 0.5% and 1.2% respectively at the end of last week, although futures markets are pointing to a steady start later.
The Dow Jones Industrial Average proved to be the exception on Friday after better-than-expected results by JPMorgan Chase boosted sentiment.
The US bank earnings season continues tomorrow with the release of figures from Goldman Sachs and Bank of America, while Tesla, Netflix and Procter & Gamble are among other companies due to report this week.
Recap: Friday’s top stories
Sunday 15 October 2023 22:38 , Simon Hunt
Good morning. Here’s a summary of our top stories from Friday:
Bumper Wall Street bank results highlight the yawning gulf between New York and London
CMA finally waves through Microsoft’s $69 billion takeover of Call of Duty gaming giant Activision after concessions
Easyhotel sees doubled revenues helped by big sports events such as Premier League clashes and Snooker World Championships
US buyers in prime London at decade high with one in ten sales in Kensington going to Americans, says Knight Frank
Inner London sees biggest rises in motor insurance premiums with 61% rise to record average £1500, according to Confused.com figures
And...Jeremy Hunt’s bleak warning on the state of the UK economy
