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FTSE 100 closes 17.5 higher as ITV plc takes podium

Last updated: 17:43 26 Jul 2017 BST, First published: 06:47 26 Jul 2017 BST

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  • FTSE 100 closes at 7,452

  • US stocks open higher; Dow hits new record high

  • ITV top riser throughout the day

  • Fed statement this evening (around 7pm UK time)

FTSE 100 closed the day ahead around 17 points with broadcaster ITV (LON:ITV) the big gainer.

The UK bluechip benchmark closed the afternoon session, up 0.24% at 7,452, while the FTSE 250 closed up 121 points at 19,762.

It comes as traders await a key Fed interest rate decision across the pond and as the oil price rose and sterling gained ground.

At the  time of writing, the pound is up 0.26% against the Euro and up 0.12% against the US dollar.

In the US, where there has been the now familiar deluge of earnings reports, the Dow Jones, S&P 500 and NASDAQ 100 all hit record highs.

On Footsie, ITV plc was top dog, up 2.44% to 180.20p after it hiked the dividend, more than making up for a drop in profits in and revenues, but both of which were in line with expectations.

Its full year guidance remains unchanged with pressures on its advertising income likely to ease in the third-quarter as it its first-half were supported by growth from its production and online businesses.

The FTSE 100-listed firm said its ITV family net advertising revenue (NAR) is expected to fall by around 4% in the third quarter, compared with an 8% drop to £769mln in the half-year to June 30.

On the losing side, drugs giant GlaxoSmithKline plc (LON:GSK) shed 2.55% to 1.545.5p - beaten only to the top loser spot by Paddy Power Betfair plc (LON:PPB)  -  as its new boss Emma Walmsley announced a major overhaul.

More than 30 pre-clinical and clinical programmes will be stopped, divested or partnered out as part of the restructuring designed to improve returns from the pharmaceuticals arm.

3.30pm

The FTSE 100 was out of the blocks quickly this morning as it looked to capitalise on the momentum it started to build in yesterday’s session.

Shortly after the opening bell rang the blue chip index headed up towards the 7,470 level, where it has floated around ever since. It is currently up 27 points, or 0.35%, to 7,462.

ITV boosted by divi hike

ITV plc (LON:ITV) has been the day’s top winner on the Footsie. The broadcaster is currently up by 1.5% to 179p after a hiked dividend more than made up for a drop in profits in and revenues, both of which were in line with expectations.

Property developer Segro PLC (LON:SGRO) was in demand yesterday as the markets cheered yesterday’s interim results and that theme continued into today. Its share price is currently at 529p – a 1% gain.

Catering business Compass Group PLC (LON:CPG) has also been going strong, up 1.4% to £16.22, after its third quarter update showed a 3.9% rise in revenues.

GSK and Paddy Power weigh

One of the many big players reporting some form of results this week is GlaxoSmithKline plc (LON:GSK) which is weighing on the Footsie after posting its second quarter numbers.

Shares are down 2.7% to £15.46 in late afternoon trading following the results announcement (they had been in the black at one point), in which the UK’s largest drugmaker trimmed its full-year earnings guidance.

Elsewhere, Paddy Power Betfair plc’s (LON:PPB) gradual decline over the past few weeks has continued today, with the shares down another 2.4% to £74.40.

The markets have been growing increasingly concerned about the possible effect on new regulations on the bookmaker and the stock has been hit by 15% since the final week of June.

US stocks open in positive territory; Dow sets new record

As was expected, the US markets have made a sprightly start this morning ahead of the Fed’s policy statement later on.

Analysts aren’t expecting Janet Yellen & co to unveil any rate rises or the like just yet, that’s something they think will happen later on in the year.

Aircraft maker Boeing Co (NYSE:BA) posted a strong set of second quarter results making it the top riser on the Dow Jones, which is currently 0.6%, or 120 points, in the black at 21,733.

Earlier in the morning the index set a new all-time high of 21,741.6.

The S&P 500, up 0.1% or 1.8 points to 2,479, and the tech-heavy Nasdaq Composite, up 0.3% or 19.2 points to 6,429, were also in positive territory in early deals.

All eyes will turn to Janet Yellen and the Fed later on this evening though (around 7pm UK time) when she gives the central bank’s views on the US economic progress.

 

2.30pm...Sports Direct verdict: ‘Wishful thinking knows no bounds’

The Telegraph's retail editor Ashley Armstrong tweeted this earlier this afternoon...

 

1.45pm…Lithium producers buoyed by UK petrol/ diesel car sales ban

Lithium miners are in demand today given the news that the UK government will ban the sale of new petrol or diesel cars by 2040.

The metal is a key component in the batteries used in electric cars, demand for which is set to soar in coming years as people move away from diesel and petrol-powered vehicles.

Keith Coughlan, the managing director of European Metals Holdings Limited (LON:EMH), talks to Proactive about gearing up to feed the increased demand.

 

1pm...FTSE on front foot

The FTSE 100 carried over yesterday’s momentum as it got off to a quick start this morning.

The blue chip index has given up some of those early gains so far this afternoon, but it is still 0.35%, or 25 points, higher at 7,460.

ITV, Segro and Compass all higher

ITV plc (LON:ITV) is still the top riser among the big boys, up 2.1% to 180.4p, after it hiked dividend more than made up for a drop in profits in and revenues, both of which were in line with expectations.

Property developer Segro PLC (LON:SGRO) is flying high once again, as the markets continued to cheer yesterday’s interim results. Its share price is currently at 530p– a 1.2% gain.

Catering business Compass Group PLC (LON:CPG) is also on the rise, up 1.6% to £16.25, after it posted a 3.9% rise in third quarter revenues.

GSK and Paddy Power weigh

Among those keeping the Footsie from rising even higher was the UK’s largest drugmaker GlaxoSmithKline plc (LON:GSK), which has shed more than 2% since it released its second quarter results shortly before midday.

It was up before then but is now 1.6% in the red at £15.64, with investors seemingly disappointed that the overhaul might not have gone as far as they would have liked.

Paddy Power Betfair plc’s (LON:PPB) gradual decline over the past few weeks has continued today, with the shares down another 2.1% to £74.60. The markets have been growing increasingly concerned about the possible effect on new regulations on the bookmaker.

Bright open predicted for US stocks; Yellen to take the stand this evening

Looking over to the States, the US markets are set for another bright open as they look to build on yesterday’s gains ahead of the Fed’s statement this evening.

Spread bet firms reckon the Dow Jones will open 50 points in the black at 21,664, while the Nasdaq Composite is seen as 6 points higher at the opening bell to 5,938.8.

The S&P 500 is also tipped for a sprightly start, with quotes hinting at a 2.75 point gain to 2,480.1 at the market open.

“The Dow Jones is set to nudge higher after the bell, keeping it within touching distance of a fresh all-time high” said Spreadex analyst Connor Campbell.

“There’s not exactly much for the Dow or dollar to deal with this afternoon, the deck cleared – well, bar the new home sales reading – for Janet Yellen and co.’s latest statement.”

As for what Yellen might say in her speech, Fed watchers are not expecting the central bank to take any action this month, with another rate rise forecast for later on in the year.

12pm...Is an electricity tax on the horizon?

A quick thought on the government’s decision to ban sales of new petrol and diesel cars by 2040 and it concerns everyone’s favourite thing: tax.

The move will undoubtedly have a positive effect on the environment with fewer gas-guzzling vehicles on the roads, but what about the billions of pounds of fuel duties that the government collects?

Last year just shy of £28bn was raised from fuel duties, around 4% of the total tax take. That’s a large amount of income to give up. Looks like the government will have to find something else to tax…electricity?

11.40am...Only a few months now to spend your old £1 coins...

11.35am...Chancellor's reaction to this morning's GDP data...

11.15am...Fever-Tree boss cashes in £29mln stake

The Fevertree Drinks PLC (LON:FEVR) share price rocketed yesterday after the posh tonic maker upgraded full-year expectations once again following a strong first half.

Perhaps unsurprisingly then, chief executive and co-founder Tim Warrillow has decided to cash in a chunk of his holding worth £29mln.

Fever-Tree said the sale was “in response to demand from institutional investors” and that may be the case, but even if it wasn't, you can’t begrudge a man from making some serious profit from a company he has helped grow from the ground up.

Warrillow’s move today echoes that made by his co-founder Charles Roll earlier this year, when he sold a stake worth £74mln in the AIM-quoted company.

The shares have shrugged off Warrillow’s sale though with Fever-Tree up another 7.5% this morning to £22.10.

That might be because Warrillow and non-executive chairman Bill Ronald, who also cashed in £1mln worth of shares yesterday, have agreed not to sell any more shares without Investec’s permission for at least a year.

10.50am...Mike Ashley wins £15mln court case

'Get the beers in, boys' - Sports Direct International PLC (LON:SPD) boss Mike Ashley has won a £15mln High Court battle against a former business advisor.

Investment banker Jeffrey Blue had claimed that the colourful billionaire and Newcastle United owner reneged on a promise to pay him the multi-million pound sum if Sports Direct’s share price increased as a result of his advice.

Ashley’s argument was that any verbal agreement, if there even was one, would clearly have been “banter” as the two were getting drunk in a London pub at the time.

He might have won the court case, but the billionaire certainly lost some of his reputation after it came out during the trial that he threw up into pub’s fireplace after a few drinks despite claiming to be a “power drinker” (his words, not mine), while he also confirmed he is NOT Obi Wan Kenobi.

10.30am...FTSE's fine form continues into Wednesday

After a miserable Monday, the FTSE 100 got itself back into gear yesterday and that fine form, which saw it recapture all of its earlier losses, has continued into today.

The blue chip index is currently up another 0.6%, or 45 points, to 7,479, with ITV plc (LON:ITV) leading the way.

The broadcaster is currently up 3% to 181.1p after a hiked dividend compensated for a drop in profits in and revenues, both of which were in line with expectations.

Property developer Segro PLC (LON:SGRO) was also flying high once again, as the markets continued to cheer yesterday’s interim results.

In that statement, Segro revealed that the value of its assets had increased by more than 5% as the growth in online shopping is boosting demand for storage warehouses. Shares are up 2.3% this morning to 532p.

The UK’s largest quoted tech company Sage Group PLC (LON:SAGE) was weighing on the FTSE 100, down 3.4% to 676p, as yesterday’s trading update and acquisition didn’t sit well with investors.

On the second tier, Acacia Mining PLC (LON:ACA) continues to feel the wrath of investors after it was hit with a whopping US$190bn (yes, BILLION) tax bill from the Tanzanian government.

The miner has lost almost three-quarters of its value since the issues with the Tanzanian authorities first came to light back in March and it’s down another 10% today to 159.3p

9.45am...GDP grew 0.3% in second quarter

The UK economy grew by 0.3% in the three months to 30 June, according to the latest GDP data from the Office for National Statistics.

That’s in line with what economists had expected and represents a modest improvement on the first three months of the year when gross domestic product (GDP) increased by 0.2%.

In terms of year-on-year growth, the UK economy is 1.7% ahead of where it was this time 12 months ago.

‘Hardly a bounce back’

“Q1 was poor at 0.2%, making Britain the most sluggish G7 economy, and today’s slightly stronger 0.3% GDP reading for Q2 can barely be described as a bounce back,” said UFX.com managing director Dennis de Jong.

“The weaker pound is continuing to drag consumer spending down and it’s hard to see growth gaining any momentum heading into the second half of the year. It’s now just the services sector that is saving the economy from flatlining.”

Pound loses ground but still up on euro, dollar

The pound has been up on the dollar for most of the morning, but it has given up those gains following the release of the GDP data. It is currently broadly flat against the greenback US$1.301.

The data didn’t affect sterling/ euro so much though, with cable still 0.15% higher at €1.12.

As for the blue chips on the FTSE 100, they were slightly buoyed by the economic figures and added to this morning’s gains.

The Footsie is currently up 0.6%, or 43 points, to 7,477.

What next for UK economy?

“Despite lacklustre growth so far this year, there are tentative signs that things might improve in the second half,” said Hargreaves Lansdown senior economist Ben Brettell.

“Last week saw news that retail sales rose ahead of expectations, indicating the consumer may still have some petrol in the tank, though the Bank of England has expressed caution over rising levels of personal debt.

Meanwhile inflation began to recede, which if it continues in the coming months could end the squeeze on real incomes.

Yesterday a CBI survey showed UK factories increasing output at the fastest rate since the mid-1990s, suggesting manufacturing  might make a meaningful contribution to overall economic growth in the third and fourth quarters.”

8.45am...ITV leads the FTSE higher

The FTSE 100 was in fine fettle on a big day for corporate news as it advanced 32 points to 7,466.77 with ITV (LON:ITV) leading the way.

First-half profits from broadcaster and maker of favourites such as Broadchurch and Love Island were in line with City forecasts.

More to the point, the outlook for advertising appears to have improved.

Despite international success with hit dramas such as Victoria, produced by its Studios division, the company still remains heavily reliant on ad income.

Elsewhere, investors apparently didn’t like what the saw from seemingly robust results from engineer GKN (LON:GKN), with the stock marked down 3% as favourable currency movements flattered both the top and bottom lines.

In less than an hour here in the UK we’ll get a measure of how UK PLC is performing with the publication of quarterly GDP figures.   

Once this and the rush of FTSE 100 half-time updates rinses through the system, eyes will turn Stateside with market attempting to second-guess just whether a further hike to US interest rates is imminent.

The widespread belief is the Fed will stand pat once the deliberations of its monthly meeting are complete.

Proactive News Headlines:

Vehicle tracking technology company Quartix Holdings plc (LON:QTX) held first half profits steady, despite a conscious decision to reduce exposure to the insurance market. It remains on track to meet full-year expectations.

WATCH: Quartix buoyed by increase in fleet installations after business rebalancing

OptiBiotix Health plc (LON:OPTI) has reached a significant milestone following the first sales in Germany of a new range of cholesterol-lowering capsules containing its breakthrough LP-LDL technology. It follows the successful registration by partner HLH Biopharma (HLH) of the product, known as Lactobact, which uses naturally occurring strains of bacteria.

WATCH: Milestone for Optiobiotix with first sales in Germany of LPLDL capsules

Beauty and personal care products developer InnovaDerma PLC (LON:IDP) delivered its highest ever monthly revenue in June, thanks in part to strong sales of its ridiculously popular flagship brand, Skinny Tan.

Remote meetings technology company LoopUp Group PLC (LON:LOOP) had a strong first half to 2017, with revenue, earnings and margin strongly ahead of last year.

Kibo Mining PLC (LON:KIBO) told investors it has concluded a “very successful” second round of follow-up meetings with Tanzanian government departments and Tanzanian stakeholders regarding the proposed Mbeya Coal to Power Project (MCPP).

Dotdigital Group plc (LON:DOTD) has appointed Phillip Blundell as its interim chief financial officer and will join the board of email specialist once regulatory procedures have been completed. Blundell previously has been chief financial officer at Eagle Eye Solutions and Intelligent Environments with over 18 years' experience in software businesses.

Minds + Machines Group Limited (LON:MMX) gave an upbeat update on renewal rates in China as well as a progress report on its strategic review. On the latter, investors were told discussions are ongoing with a number of “interested parties” from Asia, North America and Europe.

Secure Property Development and Investment PLC (LON:SPDI) has sold its 65% stake in Delia Lebada, a plot of land in east Bucharest earmarked for residential use, for €2.5mln plus elimination of associated debt.

Midatech Pharma Plc (LON:MTPH) is on track to have its MTD119 liver cancer candidate enter into human trials in 2018 after it completed the pre-clinical programme. The pre-clinical studies demonstrated “potent anti-tumour activity”, with peak reduction in tumour growth more than six-fold compared to the current standard of care, sorafenib, and with improved overall survival.

Range Resources Ltd (LON:RRL) gave investors an update for the quarter ended June 30, with oil production volumes out of Trinidad lower than the preceding three months.

6.45am...quiet open predicted

Despite a strong showing yesterday in the US, London's top-share index is expected to open barely changed.

Spread betting quotes indicate the FTSE 100 will open at around 7,438, up 3 points, after it advanced 57 points yesterday.

Stateside, the S&P 500 rose 7 to 2,477 and the Dow Jones just about bagged a triple digit rise to close at 21,613.

Focus today will be on the US central bank's policy-making committee's meeting, and the prospect of a change in US interest rates, although most pundits agree that the most likely outcome is maintenance of the status quo.

Heading into the last half hour of trading, Asian markets were on a charge, helped by the strength of commodity plays.

Japan's Nikkei 225 was 82 points to the good at 20,037 while in Hong Kong the Hang Seng was 37 points higher at 26,889.

UK stocks may receive a lift today from President Trump's comments that his administration is working to agree a “major trade deal” with the UK.

Second quarter gross domestic product (GDP) data also has the capacity to move markets.

GDP is expected to have grown 0.2% in the second quarter, as it did in the first, which would push year-on-year growth down to around 1.7% from 2.0% in the first quarter.

On the corporate front, announcements are expected from GlaxoSmithKline plc (LON:GSK), ITV plc (LON:ITV), Hammerson PLC (LON:HMSO), Antofagasta PLC (LON:ANTO), Compass Group PLC (LON:CPG) and Marston's PLC (LON:MARS).

Around the markets

  • Sterling: US$1.3020, down 0.06 cents
  • Yield on 10-year gilt: 1.26%
  • Gold: US$1,251.20 an ounce, down US$7.30
  • Brent crude: US$50.55 a barrel, up 35 cents

City headlines

The Times

Private equity firms join forces in bid for Unilever’s spreads

Profits go sharply into reverse at General Motors

Trump’s about turn on Yellen

Slowdown in US shale boosts oil price

Mitsubishi and HICL land wind farm contract

Sage Group looks to the cloud with acquisition of Intacct

Croda leaves investors cold

Mediclinic Boss exits at tricky time

The Independent

John Lewis, BBC and Sony seen as best quality brands in the UK

BMW didn’t get government reassurance ahead of Oxford Mini decision

Guardian Media Group slashes losses to over a third

Amazon announces major London expansion and ramps up video streaming

World’s ‘most useless airport’ finally gets scheduled flight

India won’t allow self-driving cars, says minister

Google parent company sales jump 21% but profits hit by EU fine

Domino’s profits boosted by chocolate pizza and new stores

Tanzania hands Acacia Mining $190 billion bill for unpaid taxes

Michael Kors snaps up Jimmy Choo in multimillion pound deal

Financial Times

Citigroup plans to return at least US$60bn to shareholders in the next three years

Unlikely bedfellows the Guardian and News Corp to forge ahead with plans for an advertising alliance

Adobe's Flash multimedia player to be “sunsetted” in 2020

The Daily Telegraph

Metro Bank launches £280 million fund-raise as lending growth accelerates

Npower teams up with Allianz to power home services push

Virgin Money chief hits back at ‘overblown’ market reaction to house price warning

Merck faces cancer drugs setback ahead of rival AstraZeneca’s landmark trial results

Carillion’s risky road shows the short, sharp shocks of building for the long term

The Guardian

Victims of ground rent scandal demand action on existing abuses

Noel Edmonds increases compensation claim for HBOS fraud to £300 million

Britain to ban sale of all diesel and petrol cars and vans from 2040

Ed Sheeran fever helps drive rise of more than 10% in UK music sales

Netherlands and UK are biggest channels for corporate tax avoidance

Quarter of personal loan applicants ‘seeking half their annual salary’

BMW pledges to build new e-Mini at UK car plant

Sport and sunshine fuel surge in UK supermarket alcohol sales

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