Tag: UK economy

  • FTSE 100 Opens Flat at 10,670 Ahead of ECB Decision; Brent Crude Holds Above $100

    FTSE 100 Opens Flat at 10,670 Ahead of ECB Decision; Brent Crude Holds Above $100

    The FTSE 100 opened flat at 10,670.04 ahead of a European Central Bank decision, as a US Treasury announcement on bond buybacks failed to impress. Brent crude futures rose 0.09% to USD 101.3 per barrel. US West Texas Intermediate (WTI) advanced 0.22% to USD 96.26 per barrel.

    Sterling traded at USD 1.3354 on Thursday, falling from USD 1.3548 at the time of the London equities close on Tuesday. Versus the euro, it fell to EUR 1.1641.

    Gainers & Losers

    On the upside, Whitbread climbed 1.98% to 2,366p. Compass Group advanced 1.87% to USD 31.10, while Aberdeen Group gained 1.53% to 252.40p. JD Sports Fashion rose 1.21% to 80.60p, Fresnillo added 1.08% to 3,082p, and ICG increased 0.94% to 1,943p.

    On the downside, Associated British Foods fell 9.31% to 1,832p. Computacenter declined 2.99% to 5,035p, while Endeavour Mining dropped 1.39% to 4,605p. Rio Tinto slipped 0.84% to 7,538p, Lion Finance Group lost 0.74% to 13,350p, and Games Workshop Group edged 0.51% lower to 17,480p.

    Q1 Recorded 7% Sales Increase

    Currys reported like-for-like revenue growth of 7% in Q1, with UK and Ireland sales up 6% and the Nordics up 9%. The retailer said it is “comfortable with market consensus” and left full-year guidance unchanged. Despite this, shares in the group fell 1.3%. Recurring Services revenue continued to grow, with flexpay adoption up 30 basis points year-on-year to 23.6% and iD Mobile subscribers rising 16% to more than 2.7 million.

    In the Nordics, sales growth was led by white goods and mobile, supported by continued momentum in new categories, B2B and Services, with market share gains in most countries against soft comparatives.

    KKR Acquired Eleco

    Private equity firm KKR has snapped up construction software provider Eleco in a deal that values the company at around GBP 208 million. The takeover gives shareholders GBP 235 per share, representing a 74.7% premium over the previous day’s closing price. Investors holding just over 45.2% have already pledged support for the takeover, which is expected to close in early 2027.

    THG Recorded Revenue Rise

    Ecommerce company THG posted a 7% rise in revenue in the first half of the year after a boost in sales in both its beauty and nutrition divisions. The company said revenue across the group was GBP 828.7 million in the period, up 7.2% year on year and above guidance of 6.5%. THG Beauty, which includes brands like Lookfantastic and Cult Beauty, delivered 5.9% revenue growth while THG Nutrition sales rose 9.2%.

    Global Market View

    In the US, the Dow Jones Industrial Average dropped 405.41 points, or 0.77%, to end at 52,380.66. The S&P 500 shed 0.48% to close at 7,636.36, while the Nasdaq Composite fell 0.64% to 26,253.34. In Asia on Thursday, Tokyo’s Nikkei 225 advanced 0.2% to 65,270.95, while China’s Shanghai Composite fell 0.43%. Hong Kong’s Hang Seng declined 1.26%, and South Korea’s Kospi declined 0.25%. In India, both the Nifty 50 and the Sensex rose by 0.03% and 0.047%, respectively.

    Also Read: Stock Market Update: Nifty 50 Opened 0.06% Higher, Sensex Fell 21.69 Points Amid Rising Oil Prices

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  • FTSE 100 Opens Lower Amid Mixed UK Jobs Data and Falling Oil Prices

    FTSE 100 Opens Lower Amid Mixed UK Jobs Data and Falling Oil Prices

    The FTSE 100 opened 22 points lower at 10,502 on Tuesday as investors weighed a proposed 10-day US-Iran ceasefire against fresh attacks in the Strait of Hormuz. Stronger-than-expected UK jobs data and lower June public borrowing offered a mixed picture for markets.

    Market Overview

    Brent crude futures fell 0.54% to $88.74 per barrel, while US West Texas Intermediate (WTI) declined 0.19% to $82.32 per barrel. Sterling strengthened to $1.3446 early Tuesday, up from $1.3418 at the London equities close on Monday. Against the euro, sterling rose to 1.1767 from 1.1755 a day earlier.

    Gainers & Losers

    On the upside, Babcock International Group surged 6.65% to £11.07, Antofagasta advanced 3.58% to £35.89, and BAE Systems gained 3.17% to £19.35. Endeavour Mining climbed 3.15% to £35.32, while Fresnillo rose 2.89% to £25.28. Glencore also added 2.19% to £5.23.

    On the downside, Games Workshop Group fell 1.44% to £198.50, London Stock Exchange Group declined 1.31% to £87.28, and Unilever slipped 1.19% to £45.84. Diploma lost 1.02% to £72.95, Admiral Group dropped 1.51% to £35.22, and Next edged 0.61% lower to £147.90.

    UK Unemployment Declines

    UK unemployment fell to 4.9% in the three months to May, down 0.1 percentage points on the quarter and below the 5% forecast, the Office for National Statistics (ONS) reported Tuesday. Employment rose by 148,000 in the quarter, well above analysts’ estimate of 80,000, pushing the employment rate to 75.1%. Average weekly earnings grew 4.3% year-on-year, just shy of the 4.5% forecast, while pay excluding bonuses rose 3.4%, in line with expectations.

    Private-sector regular pay growth was 2.9%, compared with 5.5% in the public sector. Vacancies fell by 7,000 to 712,000 in the second quarter.

    MHA’s Pre-Tax Profit Rises

    Professional services firm MHA posted double-digit revenue growth in its first year as a London-listed company. The group’s pre-tax profit jumped 11% to £39 million as revenue grew 12% to £251 million. Over the past year, listed client fees surged 16%, driven largely by 15% organic growth within that client base. Since its IPO, MHA has completed two key acquisitions: Baker Tilly South-East Europe and MS UAE in the Middle East. The firm aims to double its current size, targeting annual revenues of over £500 million.

    Key Fiscal Target Missed

    Official data on Tuesday showed the current budget deficit exceeded forecasts from the Office for Budget Responsibility (OBR). The ONS reported that borrowing to fund day-to-day public sector spending was £11.8 billion in June, around £1.3 billion above the OBR’s estimate. Government borrowing was slightly lower than expected at £16 billion in the month, though total borrowing in the current financial year reached £57.6 billion. Public sector debt was higher than the same point last year at 94.9% of GDP.

    Global Market View

    In the US, the S&P 500 fell on Monday as oil prices advanced, dropping 0.19% to close at 7,443.28. The Nasdaq Composite lost 0.05%, and the Dow Jones Industrial Average fell 307.16 points, or 0.59%. In Asia, Tokyo’s Nikkei 225 rose 3.26% to 66,232.19, while China’s Shanghai Composite advanced 1.79%. Hong Kong’s Hang Seng fell 0.094%, and South Korea’s Kospi gained 3.56%. In India, both the Nifty 50 and the Sensex fell by 0.33% and 0.41%, respectively.

  • FTSE 100 Edges Higher as Brent Crude Drops; Bailey Rules Out Rate Cut, Currys and Halma Post Gains

    FTSE 100 Edges Higher as Brent Crude Drops; Bailey Rules Out Rate Cut, Currys and Halma Post Gains

    The FTSE 100 traded 24.96 points higher near 10,503 on July 2, buoyed by dovish commentary from central bankers at the Sintra forum, which offset pressure from declining oil prices linked to progress in US-Iran talks. Brent crude futures fell 0.78% to $71.01 a barrel, while US West Texas Intermediate (WTI) declined 0.74% to $68.07 a barrel.

    Gainers & Losers

    On the upside, Compass Group rose 2.47% to $32.82, Tesco advanced 2.29% to £469.80, and AstraZeneca gained 1.70% to £14,090. Babcock International Group moved up 1.65% to £1,017.50, Sainsbury’s added 1.63% to £336, and GSK climbed 1.53% to £1,959.50.

    On the downside, RELX declined 2.20% to £2,308, Spirax Group slipped 1.62% to £6,675, and Computacenter fell 1.27% to £4,358. Next moved lower by 1.23% to £14,515, Diploma eased 0.84% to £7,125, and Rio Tinto edged down 0.69% to £7,048.

    Andrew Bailey Says Interest Rate Cut Off the Table

    Bank of England Governor Andrew Bailey stated that an interest rate cut is “off the table at the moment,” the clearest signal yet that borrowing costs are likely to stay elevated. “There was an expectation that we would cut rates this year,” he said. “That was off the table in March, and it’s off the table at the moment.” Bailey backed the Monetary Policy Committee’s decision to hold rates at 3.75% in June.

    Currys Revenue Rises

    Tech retailer Currys reported a 3% uptick in UK and Ireland revenue, reaching £5.4 billion, after outperforming the market through increased AI technology sales and the launch of new gaming devices. In the Nordics, revenue increased 12%. Profit before tax climbed 29% to £153 million, which included £34 million in restructuring costs. The group’s omnichannel sales strategy contributed 33% of UK sales. The board declared a final dividend of £2.25, bringing the full-year dividend to £3, and initiated a £50 million share buyback programme.

    Halma Unveils £55 Million Deals

    Halma announced nearly £55 million worth of acquisitions this morning, buying two firms to strengthen its position in specialist health markets. The tech group purchased Dutch digital platform itemedical for £20 million to expand its hospital workflow management offering, and Swedish firm Naslund Medical for £34 million. CEO Marc Ronchetti said the firms operate in areas with “long-term growth drivers and provide a strong platform for continued innovation and international expansion.”

    Global Market View

    In the US, Wall Street closed lower: the Nasdaq fell 0.7%, the S&P 500 declined 0.2%, and the Dow Jones lost 14 points (0.03%). In Asia, South Korea’s Kospi fell 7.89% to 7,648.09, Japan’s Nikkei 225 dropped 2.47% to 68,733.15, and Taiwan’s TAIEX dipped 0.58%. India’s Nifty 50 and Sensex both rose 0.57% and 0.62%, respectively.

  • FTSE 100 Opens Lower at 10,493 as Cautious Sentiment, BoE Inflation Warning, and Corporate News Weigh

    FTSE 100 Opens Lower at 10,493 as Cautious Sentiment, BoE Inflation Warning, and Corporate News Weigh

    The FTSE 100 opened more than 4 points lower at 10,493 on July 1, as cautious investor sentiment marked the start of a new quarter. Fresh commentary from Bank of England Governor Andrew Bailey on the inflation outlook added to the subdued mood. Meanwhile, Brent crude futures rose 0.40% to $73.24 a barrel, and US West Texas Intermediate (WTI) gained 0.40% to $69.78 a barrel.

    Gainers & Losers

    On the upside: Babcock International Group rose 3.13% to £981.60, Sainsbury’s advanced 1.47% to £324.50, BAE Systems gained 1.44% to £1,870.50, and IG Group Holdings moved higher by 1.38% to £1,843. Melrose Industries added 1.37% to £481.40, while Tesco climbed 1.20% to £464.20.

    On the downside: Associated British Foods declined 3.27% to £1,921, Fresnillo slipped 1.79% to £2,692, Lion Finance Group fell 1.32% to £11,180, and Games Workshop moved lower by 1.20% to £21,340. Rio Tinto eased 0.77% to £7,067, while London Stock Exchange Group edged down 0.59% to £8,114.

    BoE Governor Commentary

    Bank of England Governor Andrew Bailey told CNBC that the Bank “would have been back at our 2.0 target around about April, May time,” calling the fact that it hasn’t been “hugely frustrating.” Asked by CNBC’s Sara Eisen if the delay was “all because of the war,” Bailey replied, “I think so, yes.” UK inflation stands at 2.8% and is expected to rise toward 3.2% later this year due to lagged energy-price effects. “It’s going to take longer,” Bailey said of the return to target, pointing to a softening economy and soft labour market as reasons the MPC can afford patience.

    BP Deputy Chief Quits

    BP’s deputy chief executive Carol Howle quit her job after just months into the role, the energy giant confirmed late yesterday. HR vice president Kerry Dryburgh is also leaving after 16 years. Albert Manifold was infamously dismissed as chairman by the board last month, less than a year into his role over “serious concerns” about his behaviour. Manifold has hit back disputing the allegations.

    NatWest Acquires Evelyn Partners

    NatWest says it expects to lift fee income by about 20%, improve returns, and increase its exposure to the UK wealth market after completing its £2.7 billion acquisition of Evelyn Partners yesterday. The lender said the deal creates the UK’s biggest private banking and wealth management business, with £127 billion of assets under management and administration as of the end of last year. NatWest also expects annual cost savings of about £100 million, though it faces one-off costs of about £150 million to deliver them.

    Topps Tiles Shares Fall

    Topps Tiles shares fell 8% in early trade after its third-quarter update, where its profit target was trimmed. Revenue fell by 1.8% lower than the year prior at £75.6 million. It added that it expects pre-tax profit to come in at around £6.5 million, “well below the already modest growth previously flagged,” according to Adam Vettese, market analyst at eToro. Vettese added, “The market reacted sharply to the combination of softer than expected trading and the profit warning. Although Topps continued to outperform a wider home improvement market that declined around 1.6% and digital penetration rose strongly to 23.3%, these positives were not enough to offset the earnings disappointment.”

    Global Market View

    In the US, Wall Street ended its best quarter since 2020, with the Dow Jones adding 0.3% to a fresh high above 52,300, while the Nasdaq jumped 1.5% and the S&P 500 climbed 0.8%. In Asia, South Korea’s Kospi fell 2.04% to 8,303.41. Japan’s Nikkei 225 rose 0.59% to 70,474.96 points. Taiwan’s TAIEX advanced 1.94%. India’s Nifty 50 and Sensex both rose 0.63% and 0.75%, respectively.

    Disclaimer: This article is provided for informational purposes and does not constitute investment advice. You are responsible for conducting your own research before making any investments.