- Blue-chip index up 12 points at 7,735
- Unilever splits out ice cream business
- Ted Baker goes into administration
16:43pm: Blue chips end day higher
The FTSE 100 closed 15 points higher at 7,738 on Tuesday.
16:02pm: FTSE 100 to edge higher as it nears close
The FTSE 100 is set to close out 12 points higher, having remained subdued for much of the last two days.
Gains from Unilver, up 3%, have led the index for much of the day as investors continue to welcome its plan to spin off its ice cream business and sack around 7,500 workers.
Also lifting 3% was Haleon as it experienced a boost from Pfizer selling £2.4 billion shares overnight, up from the £2 billion initially expected.
Other risers included Rolls Royce, up 2.5%, and British Airways owner IAG, up 2%.
4.5% falls were suffered by both Fresnillo and Reckitt Benckiser, the latter of which has fallen 15% since last week when its baby formula arm was ordered to pay US$60 million in a court case.
Tomorrow may bring slightly more movement in the markets as investors brace for the latest round of inflation data.
Headline inflation is expected to slow from 4% in January to 3.5% in February, while core CPI is predicted to reach 4.6% down from 5.1%.
15:43pm: Harvey Nichols sheds 5% of its workforce
Harvey Nichols, the department store chain, has revealed plans to cut dozens of jobs as it shakes up its head office.
Some 5% of the retailer's total workforce is at risk of being axed, with reports indicating 60 London-based workers will be sacked.
Workers whose roles are impacted by the changes will be offered jobs in other parts of the business, the group said.
Rampant inflation, increases in costs and the cancelling of tax-free shopping for tourists were all cited as reasons for the rejig.
Pearson Poon, Harvey Nichols’ vice chairman, said: “We are taking action to simplify and strengthen our business by optimising our cost structure to operate more efficiently across our support team.
“We are making difficult decisions today to ensure we are well positioned for success in a continuously evolving retail environment.”
15:20pm: Reckitt could spin out baby formula arm as cases mount, says Barclays
Analysts at Barclays believe Reckitt Benckiser could spin out its baby formula division as it continues to face legal cases related to the Enfamil brand.
Shares in the consumer goods group have tumbled since last week, when a US judge ordered the maker of Enfamil to pay $60 million to a mother whose baby passed away, allegedly due to complications from consuming the formula.
Commenting on the matter, Barclays noted that, in its investor call, Reckitt highlighted that all cases named Reckitt’s subsidiary Mead Johnson as a defendant, not the wider Reckitt group.
The bank suggested that spinning out Mead Johnson could be an option down the line.
“We are unaware of what cross indemnities exist, but spinning out Mead Johnson as a separately and presumably US-listed infant formula company, potentially with Reckitt retaining a minority stake, might be one possibility to deconsolidate liability,” said Barclays.
14:50pm: Bank of England "too late" on rate cuts, says Citi
Andrew Bailey and the Bank of England's interest rate-setters have already "left it too late", according to analysts.
Economists at Citigroup believe the Monetary Policy Committee will make a "screeching reversal" as it starts to become clear interest rates have been kept high for too long.
Citi's chief UK economist Benjamin Nabarro said: "The Monetary Policy Committee has in all likelihood already left it too late. Evidence for a tough ‘last mile’ on inflation feels limited.”
Nabarro believes interest rates are two percentage points too high following recent falls in inflation.
14:28pm: Ted Baker appoints administrators
Ted Baker is set to fall into administration as its US owner blamed the Dutch company running the fashion brand's operations in Europe.
Authentic Brands Group, which purchased Ted Baker in 2022, said the damage was caused by AARC, which ran the brand's online and in-store operations in Europe up until January.
Ted Baker stores will continue to stay open and its website will remain active while it undergoes administration proceedings.
John McNamara, chief strategy and transition officer at Authentic Brands Group, said: “We wish that there could have been a better outcome for the Ted Baker employees and stakeholders.
“We remain focused on securing a new partner to uphold and grow the Ted Baker brand in the UK and Europe where it began.”
14:21pm: Bitcoin continues to trade lower
Bitcoin was swapping for $62,800 in mid-afternoon trades, a clean $10,000 below last week’s all-time high and over 7% lower day on day.
The world’s largest cryptocurrency remains under pressure amid a bout of profit taking and cash outflows from the ETF market.
Grayscale’s bitcoin ETF product (GBTC), clocked $643 million of cash withdrawals on Monday, causing a net negative day for the wider bitcoin ETF market, although total net inflows since 10 January remain above $12 billion.
The market has also reacted to derivatives exchange BitMEX apparently suffering a ‘flash crash’ that saw spot bitcoin prices fall as low as $8,900 on the platform.
“Yes, we are investigating potential misconduct by traders on our Bitcoin-USDT Spot market,” BitMEX Tweeted.
“However, this incident had NO impact on our billion-dollar derivatives markets. It did not move mark prices, and no liquidations were triggered by it because our indices are independent and battle-tested.”
13:46pm: FTSE 100 fails to find momentum
London's biggest stocks have remained subdued after lunch, with the FTSE 100 lifting 2 points higher.
Unilever rose 3% and continues to be the index's top riser after it announced it would be spinning off its ice cream business, with 7,500 set to be axed.
Rolls-Royce and Standard Chartered both followed behind with gains of around 1.5%.
Pushing the index lower is Reckitt Benckiser, which slumped by 4% to be down more than 15% in the last five days.
Shares in the consumer goods giant had ticked higher on Monday as investors attempted to capitalise on its slip.
The fall came after it was revealed its baby milk division would have to pay US$60 million to a mother whose premature baby passed away after drinking its Enfamil baby formula.
More than 400 other lawsuits face Reckitt and its rival Abbott.
Other fallers include Fresnillo, down 3.5%, and Airtel Africa, down 2.5%.
13:32pm: US Stocks open lower as Nvidia slips
Wall Street has opened lower on Tuesday as investors take in announcements pouring out of Nvdia's AI conference.
The Dow Jones is flat at 38,786, while the Nasdaq has shed 82 points to 16,021.
The S&P 500 dropped 10 points to 5,138.
Shares in the chipmaker are down 1.5% after it recieved a lukewarm reaction to the launch of its new chip called Blackwell.
Promised to be more powerful than previous chips, Blackwell will be able to power multiple AI-based tasks.
“It is clear from the GTC keynote that despite all that has happened in the last 18 months, Nvidia believes we are still early when it comes to unlocking the potential of generative AI,” said Morgan Stanley (NYSE:MS).
Super Micro Computer, a key provider of Nvidia's AI severs, traded around 11% lower following the news, but analysts remain confident pointing to its 215% surge in 2024.
13:07pm: Banks pledge to help customers as branches close
Some of Britain's top banks have pledged to upgrade dozens of shared banking hubs as part of a plan to deal with the growing number of closed branches.
Bim Afolami, the City minister, has worked with bank shareholders and MPs to deal with the improvement of around 40 banking hubs across the UK.
High street lenders have now promised to find 225 sites by the end of the year, rising from initial plans to launch 11 hubs.
Banking hubs are designed to provide customers with access to cash in person as bank branches continue to disappear from towns across the country.
Bereavement services, fraud protection and debt advice will be available at these sites.
Barclays, Lloyds and NatWest have all committed to these hubs.
12:39pm: Wall Street to open lower
Wall Street is set to open lower after the major indexes closed out Monday higher, breaking three consecutive negative sessions which started in the middle of last week.
The S&P 500 is set to open around 25 points lower at 5,212 points, while the Dow Jones and Nasdaq are down in premarket trading by 81 and 139 points respectively.
David Morrison, a senior market analyst at Trade Nation, believes US stocks will keep quiet until the culmination of the Federal Reserves' meeting tomorrow.
While there is little chance of changes to interest rates, Morrisons believes the Fed's quarterly summary of economic projections and chair Jerome Powell's speech will provide insight into the thinking of the central bank.
Morrison said: "The concern is that, following last week’s disappointing inflation releases, the Fed may indicate that it is pushing out further the timing of its first rate cut since March 2020.
"This could also see it revise downward its projections for how many cuts we may see this year."
12:17pm: Tesco loses appeal over Lidl trademark infringement
Tesco has lost its appeal against a ruling which said its Clubcard logo had infringed on a trademark owned by rival Lidl.
The UK's largest supermarket used a yellow circle behind a blue background to advertise products which were part of its Clubcard scheme.
However, Lidl in 2020 successfully sued the supermarket after alleging it had copied its brand to deceive customers.
A high court ruled Tesco recieved an "unfair advantage" because of the branding because Lidl had a reputation for offering low prices.
Today, the court of appeal dismissed Tesco's appeal, upstanding the high court's backing of Lidl.
11:59am: Robinhood available to UK investors
Trading platform Robinhood Markets is now available to UK customers, offering 24-hour commission-free trading on thousands of the top US stocks.
A favourite among retail investors with smaller pools of funds, Robinhood allows customers to open an account with as little as $1.
Robinhood taking aim at Bank of England Source: Company
Robinhood opened a waitlist in the UK last November after a failed launch of the trading app on these shores back in 2020.
Unlike the US offering, Robinhood UK users do not have access to cryptocurrency trading.
Robinhood came under fire back in 2021 after it suspended trading of Gamestop, the meme stock which had been the target of a short squeeze by retail investors.
11:43am: Bitcoin continues losses, down below $63,000
Bitcoin prices have continued to fall, with spot prices down close to 7% at a little over US$62,950.
Tuesday's fall builds on yesterday's 1% drop and means the world's largest cryptocurrency is down 12% in the last five days.
While today's drop means Bitcoin falls further back from its record highs, it is still up more than 42% in 2024.
However, users of the crypto exchange BitMEX have experienced a much sharper drop after Bitcoin was briefly thrown down to US$8,900.
“Bitcoin down to $8,900 on BitMEX?" Well, not quite the whole picture.
Yes, we are investigating potential misconduct by traders on our Bitcoin-USDT Spot market (????Did you even know we offer Spot trading?)
However, this incident had NO impact on our billion-dollar derivatives… pic.twitter.com/qWXXnyQxjw
— BitMEX (@BitMEX) March 19, 2024
Bitcoin momentarily slams through the floor to $8,900 on BitMEX
According to media reports, one incredibly wealthy individual sold over 400 bitcoins at once causing the momentary market plunge.
What does it say if Bitcoin can fluctuate like this? pic.twitter.com/S8RSRCudWu
— jamiemcintyre (@jamiemcintyre21) March 19, 2024
11:24am: Bentley delays EV release by a year
Bentley has pushed back the launch of its maiden electric vehicle as it sees greater demand for hybrid models.
A battery-electric Bentley launch was pushed back to the end of 2026 instead of in 2025, while its full electric range has been pushed back to 2031 instead of 2030.
Four plug-in hybrid models and refreshed versions of its Continental GT and Flying Spur are set to be launched later this year.
Bentley delivered more than 13,500 cars in 2023, leading to revenues of £2.5 billion and an operating profit of £504 million.
10:57am: Crest Nicholson tumbles as demand slows and payouts loom
Crest Nicholson, the housebuilder, is down 9% after it warned of an 11% reduction in the number of homes it plans to create this financial year.
The FTSE 250 group also suffered a £15 million hit from defects on four of its past properties.
Analysts noted how a third-party consultant has been appointed to provide greater assurances over the sites and any other properties completed before 2019.
"This means there could potentially be further costs identified," UBS explained.
House completions for the year to October are now expected to reach 1,800 instead of 2,000, falling compared to last year's 2,020 homes.
"Shares trade at a steep discount to tangible net asset value (TNAV) (-30% on Oct-24 TNAV) reflecting low returns and continuing execution and legacy issues. We expect share to react negatively to the announcement of further legacy provisions," the Swiss bank concluded.
10:33am: Gas prices surge 20%
Gas prices have surged by as much as 20% in the last week as temperatures get colder in parts of Europe and risks to supplies continue in the Middle East.
Europe's benchmark contract lifted after having rallied since September, while the UK's equivalent has risen around 16% in the last five days.
Prices had dropped by close to a fifth since the start of the year as a warmer winter meant gas storages were higher than initially forecast.
Yet, the ongoing war in the Middle East, coupled with disruption to shipping routes in the Red Sea has caused prices to rise again.
9:55am: Close Brothers soars as it preps for FCA probe
Close Brothers has soared close to 9% after it said saving measures it imposed had been able to ensure it has £400 million in capital to deal with an FCA review into unfair car loans.
The FTSE 250-listed merchant bank also confirmed that it has paused its dividend, deeming it wise to take preemptive action amid the "significant uncertainty" surrounding the early stages of the FCA's review, an investigation that could impose up to £16 billion costs on the banking sector.
While not setting aside funds for expected costs, Close Bros plans to bolster its common equity tier one ratio — a key financial resilience metric — by £400 million through significant asset risk transfers and retaining £100 million in earnings.
Shore Capital analysts said: "We currently rate the shares as a hold, given uncertainty regarding the potential outcome of the FCA’s review into historical discretionary commission payments, but believe management is taking appropriate action to strengthen the business to cope."
9;34am: FTSE 100 holds steady
The FTSE 100 is holding flat on Tuesday morning, down around 4 points to 7,718.
Top risers include Unilver (+4%), Rightmove (1.5%) and Legal & General (+1.5%).
Meanwhile, Reckitt Benckiser and Entain have dropped 5% and 2.5% respectively.
9:11am: Japan hikes interest rates for first time in 17 years
Japan's central bank has raised its interest rates for the first time in 17 years, while also abandoning its yield curve control (YCC) policy.
In this month’s meeting, the country increased base rates from -0.1% to 0%, meaning no country no longer has a negative interest rate.
It comes after the country saw wages increase and its consumer price index remained at 2% in January.
Japan also abandoned the YCC, which has been in place since 2016 and aims to control interest rates through the purchase of government bonds.
Both the UK and US central banks are due to meet this week to discuss rates but are expected to keep them unchanged.
8.51am: The morning so far
Unilever PLC (LSE:ULVR) led the FTSE 100 risers in early Tuesday exchanges, with shares in the British FMCG multinational rallying 4.4% against yesterday’s closing price.
The group announced an overhaul of its operations through the separation of its multibillion-dollar ice cream portfolio (which includes Ben and Jerry’s, Walls and Magnum) and the sacking of 7,500 firm-wide staff members.
“Ice cream has a very different operating model, and as a result the board has decided that the separation of ice cream best serves the future growth of both ice cream and Unilever,” the British multinational FMCG group said in a statement.
Elsewhere in company news, AstraZeneca PLC (LSE:AZN) is acquiring clinical-stage oncology group Fusion Pharmaceuticals in a $2.4 billion (£1.9 billion) deal.
The offer represents a bumper 126% premium to Nasdaq-listed Fusion’s Monday closing price.
Fusion “will complement AstraZeneca's leading oncology portfolio with the addition of the Fusion pipeline of RCs, including their most advanced programme, FPI-2265”, AstraZeneca said in a statement.
Pfizer has sold more of its stake in Haleon – the joint venture it created in 2019 with GSK – than originally planned.
Pfizer was initially tipped to reduce its stake in the joint venture from 32% to 24%, but has opted to reduce it further still to 22.6% via a US-based public share offer.
Home improvement retailer Wickes announced its yearly results for 2023 this morning.
The group saw statutory revenues slip 0.6% year on year to £1.56 billion, with basic earnings per share falling 6.3% to 12.6p.
The FTSE 100 was last seen three points higher at 7,725.
8.43am: Bitcoin plummets 5%
Bitcoin (BTC) has dropped more more than 5% against the US dollar this morning, bringing the BTC/USD pair to a 13-day low of $64,100.
The largest cryptocurrency on the market is facing selling pressure after smashing all-time highs above $73,000 last week, amid a large-scale rush into newly launched spot-bitcoin exchange-traded funds.
Year to date, bitcoin remains 51% higher.
Back to the London stock market, the FTSE 100 index is currently trading flat at 7,722.
8.30am: Pfizer upsizes Haleon share sale
Pfizer has sold more of its stake in Haleon – the joint venture it created in 2019 with GSK – than originally planned.
Pfizer was initially tipped to reduce its stake in the joint venture from 32% to 24%, but has opted to reduce it further still to 22.6% via a US-based public share offer.
Haleon is buying back £315 million of its own from Pfizer through an off-market transaction.
Haleon’s London-listed shares dipped 0.5% in opening exchanges this morning, while the FTSE 100 was last seen eight points higher at 7,731.
8.20am: Revenues slip for Wickes
Home improvement retailer Wickes saw statutory revenues slip 0.6% year on year to £1.55 billion in 2023, with basic earnings per share falling 6.3% to 11.8p.
Chief executive David Wood said that profits were “ahead of expectations” thanks to a targeted investment programme and disciplined cost control.
Adjusted operating profit of £73.8 million decreased by 29% year on year the adjusted operating profit margin decreased to 4.7% from 6.7% in 2022, reflecting “the impact of pressure on operating costs due to wage inflation, rising energy prices and other inflationary factors… coinciding with an environment of weaker consumer demand”.
The board recommended a final dividend of 7.3p per share, in line with prior guidance, bringing the full-year dividend for 2023 to 10.9p.
7.55am: Unilever splits ice cream, sacks 7,500 staff
Unilever PLC (LSE:ULVR) is overhauling its operations through the separation of its multibillion-dollar ice cream portfolio while sacking 7,500 firm-wide staff members.
“Ice cream has a very different operating model, and as a result the board has decided that the separation of ice cream best serves the future growth of both ice cream and Unilever,” the British multinational FMCG group said in a statement.
Unilever’s ice cream portfolio includes Wall’s, Ben and Jerry’s, Magnum and other household-name brands. The business turned over approximately €7.9 billion (£6.7 billion) in 2023.
Unilever has also launched a “productivity programme” that will see 7,500 team members lose their jobs. Restructuring costs are expected to be around 1.2% of total turning for the next three years.
7.24am: AstraZeneca to acquire Fusion Pharma
AstraZeneca PLC (LSE:AZN) is acquiring clinical-stage oncology group Fusion Pharmaceuticals in a $2.4 billion (£1.9 billion) deal.
The offer represents a massive 126% premium to Nasdaq-listed Fusion’s Monday closing price.
Fusion “will complement AstraZeneca's leading oncology portfolio with the addition of the Fusion pipeline of RCs, including their most advanced programme, FPI-2265”, AstraZeneca said in a statement.
Susan Galbraith, executive vice president of Oncology R&D at AstraZeneca, commented: "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."
7.15am: FTSE 100 poised to open lower
The blue-chip index is expected to open 11 points lower at 7,717 when markets open on Tuesday, according to FTSE 100 futures.
It follows a lightly negative trading session on Monday, when the FTSE 100 closed four points lower.
Like yesterday, there will be little to move the dial on the macroeconomic front, barring a 20-year gilt auction in the mid morning.
Markets are instead looking to tomorrow’s year-on-year inflation print, which is forecasted to fall back to 3.5%.
On the company news front, Close Brothers Group and Litigation Capital Management will soon publish their interims, with finals from Trustpilot Group, Wickes and The Pebble Group also on the way.