- FTSE 100 finishes 17 points lower
- Wall Street higher ahead of Fed comment and data
- UK construction sector rebounds in February
4.45pm: Commodity prices drag down index
As Wall Street saw some gains across the pond, the UK's blue-chip index was feeling the weight of a disappointing Chinese growth outlook that hurt FTSE mining stocks.
At the close, the FTSE had lost 0.2% to finish at 7,930.
The wider markets appeared relatively upbeat despite upcoming central bank and US employment announcements, says Joshua Mahony, senior market analyst at online trading platform IG.
“US markets have replicated the tentative gains seen in mainland Europe today, with traders remaining unmoved by an underwhelming 2023 growth target from Chinese. The prediction of GDP around 5% represents the lowest target for more than three-decades, quelling hopes of a sharp rebound after a difficult 2022," Mahoney said.
"The RBA kick starts another round of central bank meetings, which is expected to be defined more by the inaction of the BoC and BoJ than the 50-basis point hike expected in Australia. The Bank of Canada lead the way for those hoping to see central banks shift into a period of stability, with trader’s hopeful they can set a precedent that others will follow. Nonetheless, the one-month low seen on the VIX does highlight an upbeat tone heading into a week that will be dominated by central bank and US employment announcements.”
3.50pm: Plenty of action to come
The FTSE 100 remained lower with less than 45 minutes of trading to go on Monday weighed by weakness in predominant dollar-earning constituents, while US stocks extended the strong rally they made on Friday reflecting weakness in the US currency and bonds as traders eye a busy week to come for global monetary policy pointers.
Craig Erlam, senior market analyst, UK & EMEA, OANDA commented: "It's been a calm start to the week as investors weigh up what China's modest growth target means for the global economy and look ahead to a busy few days. Safe to say markets were surprised by the decision to target only 5% growth this year while signaling no significant stimulus to turbo-charge the economic recovery. It may well prove to be a wise decision when you consider how well the country has transitioned from zero-Covid to living with it, while policymakers around the world may also be breathing a sigh of relief.
"One of the upside risks to inflation this year was a turbo-charged Chinese recovery which would drive up demand for a host of commodities from oil to iron ore and as a result prices. So while we may not get the growth boost, we're probably getting something far more valuable."
Erlam added: "It will be interesting to see if this is something that is referenced by central banks over the coming months as they near the end of their tightening cycles and battle what may be proving to be quite stubborn inflation. We may even get a reference to it from Jerome Powell during his testimonies in Congress over the next couple of days.
In reality, these are not the thrilling affairs they are often played up to be. But this time may be different as the Fed is not exactly in anyone's good books after delaying the start of tightening and as a result having to go further in order to get a grip on it. And with the cycle now in such an unclear phase, I'm sure the grilling will be extra intense this time around."
"There's no doubt what the main event will likely be this week though," Erland concluded. "The jobs report on Friday will tell us whether the January data was a blip or something to be more concerned about. No one is expecting a repeat of last month but any indication that the labour market is still red-hot could see a fourth 25 basis point hike be more priced in."
3.30pm: Strikes dampened down
Firefighters have voted to accept an improved pay offer from fire service employers, their trade union said on Monday.
Around 96% of Fire Brigades Union (FBU) members who took part in a ballot voted in favour of the new pay offer, the union said. The turnout for the ballot was 84%.
The pay offer entails a 7% rise backdated to last July and another 5% increase from July this year. The union leadership had recommended the new offer to its members last month, calling it a "significant shift" from a previous offer of just 2%.
"The FBU leadership has been determined not to sugar-coat the offer," FBU General Secretary Matt Wrack said in a statement. "For the current year, 7% is still another real terms pay cut. For the following year, when inflation is forecast to be lower, 5% may amount to a slight increase in real terms pay."
The firefighters had voted in January for a nationwide strike, which would have been their first national walkout on pay since 2003.
In another move dampening down strike issues, ambulance worker strikes planned for this week have been paused in order to hold pay talks with the government.
3.10pm: Coffee break
Starbucks has announced plans to open 100 new stores in the UK over the next 12 months as part of a Europe-wide investment programme, Sky News has reported.
The US coffee chain, which already has just over 1,000 sites in the country, said it was also aiming to complete a refurbishment of its store estate over the next three years as part of the £30mln investment.
The company's announcement will be seen as a firm commitment to its UK business, Sky News said, which is its largest within Europe and which is dominated by franchisees, after it considered a sale last year. The new stores are expected to build on the UK arm's success in Drive Thru and digital channels.
2.50pm: Monday gains on Wall Street
The FTSE 100 index stayed weak as US stocks edged higher at the open on Monday ahead of congressional testimony Tuesday and Wednesday from Federal Reserve Chair Jerome Powell as the benchmark Treasury yield continues to fall.
Around 20 minutes after the market opened, the Dow Jones Industrial Average was up 71, or 0.2% points to 33,462, while the broader S&P 500 and the tech-heavy Nasdaq Composite both gained 0.3%.
Notable stock movers included shares of Apple Inc, which rose more than 2% after Goldman Sachs initiated coverage of the consumer electronics giant with a ‘Buy’ rating and a price target of $199.
In London, around 2.50pm, the FTSE 100 index was down 27 points, or 0.4% at 7,919, holding above the day's low of 7,897.45
2.30pm: Insurance pressures
Proposals to loosen capital rules for insurers will increase the chances of an insurance company failing by 20% in a given year, the Bank of England (BoE) has told UK lawmakers, Reuters reported, reiterating its caution over the government's plan.
Following Britain's departure from the European Union, the Treasury has proposed easing capital requirements for insurers to unlock billions of pounds for investing in infrastructure to boost the economy.
Easing the so-called Solvency II rules inherited from the EU is seen as a key 'Brexit dividend' for the financial sector, and the finance ministry overrode warnings from the BoE, saying policyholders would still be protected. The Bank looked at the impact of the government's plan to ease the risk margin, a capital buffer life insurers must hold to move policies to another insurer in the event of a collapse.
In a letter to parliament's Treasury Select Committee, dated February 22 but published today, BoE governor Andrew Bailey said that "in the round" over a one-year period, the estimated capital release of 14 billion pounds ($16.80 billion) could lead to an increase in the annual probability of failure of approximately 0.1 percentage points.
"This means that over a one-year period... the probability that a life insurance firm would hold sufficient capital to withstand the solvency standard stress level will be 99.4% when compared to the current level – a relative increase in the probability of failure of around 20%," according to Bailey.
If the BoE's proposed reform had gone ahead, which advocated easing the risk margin by less than the government proposes, then "less than half of this increase would have occurred", Bailey added, Reuters noted.
2.15pm: Deutsche does for Reckitt
Reckitt Benckiser PLC shares fell as Deutsche Bank removed the shares from its ‘buy’ list and moved to a ‘hold’ rating, with its target price remaining 6,500p with the stock currently trading at 5,784p, down 1.5%.
Deutsche analyst Tom Sykes said last week’s results came with “what may end up being conservative guidance, however, on paper there is no EPS growth” for the 2023 financial year.
While the second half of the year should see some earnings growth, “there is the risk of a much weaker next cold & flu season and share loss in US infant formula”.
Concerns over these factors are expected by Sykes to hold back any re-rating and with a stronger end to this cold and flu season would make it “more difficult” for the shares.
On the plus side, the analyst noted that Reckitt and other consumer staples companies are getting “cost relief” by passing on inflation to customers “so we are not overly negative, however, we feel there are limited catalysts for a near-term re-rating”
1.30pm: London's movers
A quick look at today’s movers in London.
Risers
Plexus- up 63% to 4.6p
Plexus secured a £5mln order for its proprietary POS-GRIP wellhead equipment and sealing technology for a specialised project application, to be deployed over the next 12 months.
Plexus will supply the equipment, including leak-proof metal-to-metal HG seals for use in a subsea environment, on a rental basis.
Aston Martin- up 14% to 275p
Aston Martin’s shares raced higher on Monday morning, building on last week’s impressive gains and boosted by a strong performance at the Bahrain Grand Prix yesterday.
Although the luxury car maker didn’t outdo expectations when it reported last Wednesday, posting revenues of £1.38bn, up 26%, and a 38% growth in underlying profits to £190.2mln for the year, its shares accelerated and now sit 90% higher so far in 2023.
Clarkson- up 5.4% to 3,485p
Shares rose to a six-month high on Monday morning after its results made a splash, with revenue, profit and dividend ahead of expectations.
The shipping services group said it generated revenue of £603.8mln, up 36% year on year, with profit before tax up 45% to £100.9mln.
Fallers
Fusion Antibodies- down 36% to 30p
Shed over a third of its market value on Monday as it warned that its revenues and earnings for full-year 2023 are now expected to be significantly behind current market expectations, anticipating that revenues will be not less than £2.8mln.
James Fisher- down 4.6% to 372p
James Fisher and Sons, the marine services group, slipped 4% to 374p after confirming the sale of James Fisher Nuclear (JFN).
The sale to Myneration, which is a subsidiary of Rcapital, is part of the company’s “ongoing commitment to rationalise and focus the group’s portfolio.”
Management and staff will remain with the business following the sale, and Rcapital will provide JFN with a £3mln secured revolving credit facility to “fund the growth of the business.”
1.00pm: US markets seen flat
Wall Street is expected to open flat at the start of a new week as investors look to comments from Federal Reserve Chair Jerome Powell for more clues on the Fed’s next step ahead of a key employment report on Friday.
Futures for the Dow Jones Industrial Average (DJIA) were unchanged in Monday pre-market trading, while those for the broader S&P 500 index were marginally higher and contracts for the Nasdaq-100 rose 0.1%.
The main US indices ended higher on Friday following a volatile week as the market digested economic data that pointed to a resilient economy. The DJIA snapped a four-week losing streak to close 1.2% up at 33,391, while the Nasdaq Composite rallied 2% to 11,689 and the S&P 500 jumped 1.6% to 4,046.
“Fed Chair Jerome Powell will give his semi-annual report on monetary policy to Congress on Tuesday and the Senate on Wednesday, markets expect that the Fed Chair will likely stick to the well-worn script regarding progress in the inflation battle but that Fed remain data dependent and as such it is too early to declare victory," TickMill Group market analyst Patrick Munnelly said. "Whilst nascent signs of disinflation are developing, the broader inflation picture remains challenging and well above the 2% mandated target."
Apart from Powell’s comments this week, Friday looms large as the latest non-farm payrolls report falls due, commented Richard Hunter, head of markets at interactive investor.
“Last month’s report rattled investors with a breathtaking addition of 517000 jobs, and a further reduction to the unemployment rate, suggesting that the labour market is starting to show signs of immunity from the hiking cycle.
However, expectations for February are more modest, with a consensus for 225000 jobs to have been added, while investors will also have an eye on any revisions to the previous bumper reading,” Hunter noted.
Back in London and the FTSE 100 is close to its worst levels for the day at 7,901.56, down 45.55 points, or 0.57%.
12.50pm: CBI head to step aside while allegations investigated
The director general of the Confederation of British Industry Tony Danker has stepped aside from the role while the business lobby group investigates allegations relating to his workplace conduct.
The body said he had requested to leave the role while a number of allegations were examined.
They came to light after a previous allegation that was made in January was investigated and "dealt with comprehensively, in line with CBI procedure", it said in a statement.
EXCL: CBI boss Tony Danker has stepped aside amid an investigation into complaints about his conduct - by @Annaisaac https://t.co/YI2JEGSqRh
— Pippa Crerar (@PippaCrerar) March 6, 2023
It continued: "The CBI investigation determined that the issue did not require escalation to a disciplinary process". But it added: "On March 2, the CBI was made aware of new reports regarding Tony Danker's workplace conduct.
"We have now taken steps to initiate an independent investigation into these new matters. Tony Danker asked to step aside from his role as director-general of the CBI while the independent investigation into these matters takes place.
"The CBI takes all matters of workplace conduct extremely seriously but it is important to stress that until this investigation is complete, any new allegations remain unproven and it would be inappropriate to comment further at this stage."
12.40pm: Drax strike in Yorkshire is over
Strike action at the Drax power station in Yorkshire has ended after workers secured a “dramatically improved” pay offer, the Unite union has announced.
Unite says that fresh negotiations have been held after 180 workes held a day’s strike action in February after rejecting an 8% pay increase, below the headline rate of inflation.
Drax has now made a improved pay offer, including back pay, which Unite says is worth 16% to the lowest paid workers.
Workers have accepted this offer in a ballot. Strikes had been scheduled for later this month, and in April.
Unite general secretary Sharon Graham said: "This was an excellent increase for Unite members at Drax, who by showing unity and standing up to their employer secured a vastly improved pay increase."
12.22pm: Moderna to build vaccine centre in the UK
Covid jab maker Moderna has confirmed it will move to the UK and build a vaccine-manufacturing centre after the Government signed a 10-year deal with the company to buy its medicines for the NHS.
The US business said the new Moderna Innovation and Technology Centre at Harwell Campus in Oxfordshire will aim to provide the public with access to mRNA vaccines for a wide range of respiratory diseases.
We’re proud to announce @HarwellCampus in Oxfordshire as the location of our new Moderna Innovation and Technology Centre (MITC) in the UK. This exciting milestone follows finalization of Moderna’s ten-year strategic partnership with the UK government in December 2022. pic.twitter.com/Uf5u0hMrkT
— Moderna (@moderna_tx) March 6, 2023
It said the investment "will create hundreds of jobs", with construction due to begin this year and the facility expected to open in 2025.
Back in the markets and the FTSE 100 has slipped further, now down 47 points, hovering around 7,900.
11.50am: RBC upgrades B&M
Shares in B&M European Value Retail SA (LSE:BME) bucked the weaker market trend as RBC Capital Markets upgraded the stock to outperform with a 550p price target.
The broker raised its 2024 and 2025 pre-tax profit forecasts by 4% to 7% due to expectations of higher, price driven like-for-like sales growth, along with a gradual ramp up in UK space growth.
“Our survey work suggests B&M remains very price competitive, and we feel store standards have become more consistent, with further potential upside here,” RBC commented.
The broker sees potential for France and Heron Foods to generate close to 20% of group sales by 2025 and highlighted an undemanding valuation versus peers with potential for further cash returns.
Shares in B&M rose 1.4% to 495.50p while the FTSE 100 remained on the downside, off 29 points.
11.16am: Eurozone retail sales rose less than expected
Retail sales in the eurozone rose less than expected in January, as household budgets continue to be squeezed by high inflation and rising interest rates.
Retail sales volumes rose 0.3% in January, partly offsetting a revised fall of 1.7% in December, according to data from the European Union's statistics agency Eurostat released Monday.
The reading fell below the 0.5% increase forecast by economists in a poll by The Wall Street Journal.
Euro area #RetailTrade +0.3% in January 2023 over December 2022, -2.3% compared with January 2022 https://t.co/8drpCfNGaf pic.twitter.com/WjLEaqVx5Z
— EU_Eurostat (@EU_Eurostat) March 6, 2023
On an annual basis, the volume of retail sales was down 2.3% in January, Eurostat said.
ING Economics said the “small increase in retail sales in January suggests a weak start to the year for the consumer amid stubbornly high prices.”
“While surveys about the first quarter have been relatively upbeat so far, these sales data don’t give much evidence that a rebound has started. We expect GDP growth in the first quarter to be flat.”
Meanwhile, the FTSE 100 has stabilised at 7,920.31. down 26.80 points, or 0.34%. Its European counterparts are faring better with the Dax up 0.4% and the CAC 40 rising 0.5%.
10.45am: Over half a million UK small businesses at risk due to rising costs
Around 630,000 UK small and microbusinesses are at risk of going bust in the face of rocketing costs and pressures on consumers, according to new research.
Data analysis of 2.3mln British microbusinesses, typically firms with fewer than 10 employees, highlighted increased pressure among small businesses due to skyrocketing costs, such as higher energy bills.
The Venture Forward report, produced by GoDaddy, indicated that the potential collapse of these companies would be a roughly £12bn hit to the economy.
It comes ahead of a key Spring Budget for the prime minister and Chancellor Jeremy Hunt.
However, the research found that fewer than one in five (19%) entrepreneurs said they believe that Rishi Sunk "is acting in the best interests of small and microbusinesses".
10.15am: Jefferies upgrades Tesco and Kingfisher
Shares in Tesco PLC (LSE:TSCO) and Kingfisher PLC (LSE:KGF) rose on Monday benefiting from an upgrade by Jefferies.
The broker put both stocks on its buy list after looking at the impact of ongoing deflation of energy prices on UK retail ratings and forecasts.
Jefferies noted UK consumers have proved resilient in the face of inflation while gas prices have fallen 48% since its last sector update.
“We lift our sector assumptions in both 23/24 and 24/25 by 3% for sales and by 6%/5% for earnings,” the broker said.
Upgrading Tesco to buy, Jefferies said mix pressures should start reducing a little, and its focus on assortment optimisation should help “optimise in-store mix dynamics.”
“Reducing margin pressures in the second half of financial year 22/23 should provide investors with improving confidence on free cash delivery, and with it should come some rerating from a low bar,” the broker felt. Jefferies has a price target of 310p and shares rose 1.2% to 259.35p.
On Kingfisher, despite the overhang from the short-term UK housing outlook Jefferies is encouraged by the promise of Screwfix France and that investor sentiment is low leaving the stock as discount to the rest of the sector. Shares rose 1.1%.
JP Morgan took a less upbeat view on Kingfisher, reiterating an underweight rating.
“We appreciate that Kingfisher is a significantly improved business relative to before the pandemic, not least due to the relative quality of the current management team,” the investment bank said.
“But in light of recent housing market trends, we believe that the risk to the shares lies to the downside.”
JPM has lowered its 2024 and 2025 pre-tax profit forecasts by c.5% to £579mln and £618mln respectively.
Meanwhile the FTSE 100 has slipped to its lows for the day, now at 7,913.76, down 33.35 points, or 0.42%.
9.44am: Construction sector rebounds in February
The construction sector rebounded in February, after two months of decline, according to the latest PMI figures.
The headline seasonally adjusted S&P Global/CIPS UK Construction PMI registered 54.6 in February, up from 48.4 in January and above the neutral 50.0 threshold for the first time in three months. The latest reading was the highest since May 2022.
February’s data highlighted a robust increase in overall business activity across the UK construction sector, thereby ending a two-month period of decline.
The rate of growth was the strongest since May 2022, supported by a marked rebound in commercial work and a positive contribution from civil engineering activity, the report showed.
In contrast, housing activity decreased for the third month running. At the same time, the latest survey pointed to the least widespread supplier delays since January 2020 and a slowdown in input cost inflation.
Tim Moore, Economics Director at S&P Global Market Intelligence said: “"Construction companies appear increasingly confident about the year ahead business outlook, with optimism rebounding strongly from the lows seen in the final quarter of 2022.”
“Softer inflationary pressures and the least widespread supplier delays for just over three years were factors supporting business expectations in February."
9.35am: New car registrations jump 26%
UK new car registrations grew by 26.2% year-on-year in February as 74,441 new cars joined Britain’s roads, according to the latest figures from the Society of Motor Manufacturers and Traders.
The figures show last month, which was the seventh month of consecutive growth, was the busiest February for car sales since 2020, as easing supply chain shortages steered the market closer to pre-pandemic levels.
UK new car market posts seventh straight month of growthhttps://t.co/BYcodag2QE pic.twitter.com/p91BSeQPlK
— SMMT (@SMMT) March 6, 2023
Deliveries to private buyers up 5.8%, while purchases by large fleets jumped 46.2%. Business registrations rose by a mere 0.7%, or just nine cars.
The SMMT reports that hybrid electric vehicles (HEVs) recorded the most significant growth of all fuel types, up 40.0%. HEVs have a fossil fuel engine, which can charge an electric battery which can drive an electric drivetrain.
Petrol sales were 35.8% higher than a year ago, while diesel registrations fell by -7.0%.
Battery electric vehicle (BEV) registrations were up 18.2%, and make up one in six new UK car registrations, while sales of plug-in hybrids (PHEVs) were 1.0% higher.
9.15am: Miners in the red
Mining companies dipped on Monday after the disappointing Chinese growth targets.
China set a modest economic growth target of around 5% for the year, with the nation’s top leaders avoiding any large stimulus to boost a recovery still being weighed down by weak business confidence and an uncertain property market.
Economists had expected a more ambitious target of above 5% following a rebound in consumer and business spending after the end of coronavirus restrictions.
Neil Wilson at markets.com said: “Caution seemed the order of the day across markets early on Monday as China set itself one of the lowest gross domestic product target in many years, hinting to investors that the big reopening boom may not be as positive for the global economy as hoped.”
“Beijing set a target of around 5% growth this year, creating a relatively low bar for the regime to clear. Oil and other industrial commodities slipped on the news, whilst basic resources stocks in London were hit, dragging the FTSE 100 marginally into the red at the open,” he added.
Anglo American was down 3.2%, Antofagasta PLC (LSE:ANTO) slipped 2.5% and Rio Tinto PLC (LSE:RIO) fell 2.2%.
8.53am: Dyson urges Chancellor not to lift business taxes
The Footsie remained around its opening levels in early exchanges with led by falls in mining companies after China issued growth targets that disappointed investors.
At 8.50am the FTSE 100 stood at 7,940.79, down 6.32 points, or 0.080% while the FTSE 250 was at 19,954.98, up 29.21 points, or 0.15%.
Victoria Scholar at interactive investor noted: “The FTSE 100 is lagging broader gains across Europe to start the week, trading just shy of the flatline. Miners like Anglo American, Antofagasta and Rio Tinto are languishing towards the bottom of the UK index after China issued a modest growth target of 5% for its economy this year.”
Susannah Streeter, head of money and markets, Hargreaves Lansdown suggested: “Financial markets are set for some choppy trade early this week as investors search for a fresh sense of direction.”
That direction may come later in the week when Fed chair Jerome Powell addresses Congress and US non-farm payrolls figures are released.
The Budget is also on the horizon as well in the UK and entrepreneur Sir James Dyson has urged the government not to lift taxes on businesses, claiming that a double tax grab will hurt the economy.
In a letter to Jeremy Hunt, seen by The Sun, Dyson warned the chancellor of the “unintended consequences” of hiking corporation tax and bringing in a new global levy on multinationals agreed by the OECD.
Big pre Budget intervention from Sir James Dyson: https://t.co/OyiPAC5tMA
— Harry Cole (@MrHarryCole) March 5, 2023
Dyson, who has criticised Rishi Sunak’s administration before, told Hunt that the government has “done nothing but pile tax upon tax on to British companies.”
He reminded the chancellor that pharmaceuticals firm AstraZeneca recently chose to build a US$360m advanced manufacturing factory in Ireland, not the UK, and cited ‘discouraging’ UK tax rates.
Elsewhere, and Tesco PLC (LSE:TSCO) (up 1.1%) and Kingfisher PLC (LSE:KGF) (up 1.1%) benefited from an upgrade by Jefferies to buy from hold.
8.15am: FTSE edges lower in early exchanges
The FTSE 100 made a subdued start on Monday with little major economic or corporate news to provide direction.
At 8.15am London’s lead index was down 4.01 points at 7,943.10 while the FTSE 250 was at 19,944.51, up 18.74 points, or 0.094%.
Investors will be eyeing US non-farm payrolls figures on Friday while the chair of the Federal Reserve Jerome Powell will appear before the US Congress tomorrow.
"Looking at the latest set of data, the U-turn of easing inflation and last month's blowout jobs figures, we don't expect to hear anything less than hawkish from Powell. But it's always possible that a word like 'disinflation' slips out of his mouth, and that we get a boost on risk," said Swissquote Bank's Ipek Ozkardeskaya.
On a quiet day of corporate news WANdisco became the latest the company to say it was looking at an additional listing in the US although it stressed it remained committed to the AIM market. Shares rose 1.1%.
Shell’s new boss told The Times that the US was a more attractive proposition for energy investment than the UK.
Wael Sawan told the paper that the UK government should look to recent actions in the US, such as the Inflation Reduction Act, which gives a US$369bn subsidy package to encourage domestic green investment.
Sawan said he would "think twice" about further oil investment, citing "more attractive" propositions, such as the US Gulf of Mexico. Shares opened 0.2% higher.
AstraZeneca PLC (LSE:AZN) noted positive high-level results from an analysis of the ongoing Destiny-PanTumor02 phase II trial for Enhertu. Enhertu, or trastuzumab deruxtecan, met the target for objective response rate and showed a durable response across multiple HER2-expressive advanced solid tumours in heavily pretreated patients. Enhertu is being jointly commercialised by Astra and Daiichi Sankyo. Shares were little changed.
Shipping services company Clarkson reported a sharp rise in annual earnings, driven by a strong performance in its broking division. Investors liked the update marking shares up by 2.4%.
Pre-tax profit for the 2022 calendar year came in at £100.1mln, compared with £69.1mln a year earlier. The total dividend was lifted to 93p a share from 84p.
One early faller was Reckitt Benckiser which was downgraded to hold from buy by Deutsche Bank. The German bank left its price target unchanged at 6,500p. “We feel there are limited catalysts for a near-term re-rating,” the broker said. Shares fell 1%.
Heading the other way was B&M European Value Retail SA, up 1.1%, as RBC upgraded to outperform with a 550p price target.
7.38am: Shell's new boss says US more attractive for investment than the UK
Another company reported to be considering a US listing was oil major, Shell PLC (LSE:SHEL, NYSE:SHEL). Today, its new chief executive Wael Sawan said the US is more attractive for energy investment than the UK.
In an interview with The Times on Monday, Sawan said that the UK government should look to recent actions in the US, such as the Inflation Reduction Act, which gives a US$369bn subsidy package to encourage domestic green investment.
Sawan said he would "think twice" about further oil investment, citing "more attractive" propositions, such as the US Gulf of Mexico.
Recent developments in the UK such as ad-hoc interventions, delays to planning, and a lack of clarity over subsidies are likely to hinder Shell's goal to invest £25bn in the UK over the next decade, he said.
Sawan also cited the energy profits levy, which raised the tax rate in the North Sea to 75% from 40%.
The levy is "fundamentally disincentivising the investment in new supplies which are critical if you want to build energy security for the long term”, Sawan told The Times.
7.24am: WANdisco confirms plans for US listing
WANdisco PLC, the data activation platform, confirmed on Monday it is looking at an additional listing for its shares in the US.
The firm was responding to recent press speculation.
“As a dual UK and US headquartered technology company, WANdisco has long-stated its intention to consider an additional listing of its ordinary shares in the United States,” the company said in a statement.
“The company can confirm that it is in the early stages of proactively exploring this option,” it added.
But WANDisco confirmed it remains committed to London's Alternative Investment Market and to maintaining its current UK AIM listing.
The news comes hot on the heels of a disappointing week for the London market with ARM Holdings confirmed its IPO would be in the US while CRH said it was moving its main listing to the US.
7.05am: Slow start expected on Monday
The FTSE 100 is expected to open little changed on Monday as investors look ahead to an appearance before the US Congress by the chair of the Federal Reserve tomorrow.
Spread betting companies are calling the lead index up by one point.
Michael Hewson at CMC Markets said: “As we look ahead to this week the main focus, apart from Wednesday’s ADP, and Friday’s payrolls report, will be on Fed chair Jay Powell’s testimony to US lawmakers tomorrow and Wednesday where he is likely to be quizzed on how he sees the US economy in light of recent strong data, and what measures the Fed might feel inclined to take if the data continues to come in strong.”
In Asia on Monday, the Nikkei 225 index in Tokyo closed up 1.1%. In China, the Shanghai Composite was down 0.3%, while the Hang Seng index in Hong Kong was up 0.3%.