- FTSE 100 51 points higher
- Retail sales beat expectations
- Blue chips at 12-month high
15:58pm: FTSE 100 to close higher after stellar week
The FTSE 100 is set to close out a stellar week more than 2.7% higher after it rocketed to one-year highs off the back of a BoE meeting which indicated three interest rate cuts could take place this year, with the first coming in summer.
Thursday saw the index soar to 11-month highs and Friday continued this trend, having lifted around 55 points to 7,937 - the all-time high being 8,004 in February last year.
Pension firm Phoenix Group was the index's top riser having risen close to 8% after it reported better-than-expected earnings, a positive outlook and a healthy dividend.
Other risers included, NatWest, up 3%, Reckitt Benckiser, up 2.5%, and WPP, up 2.5%.
Sliding the other way was JD Sports, down 7%, after it suffered a negative read across from Nike's warning that both its near-term and long-term would be more downbeat than analysts had predicted.
Other fallers included Frasers Group, down 1.5%, British Airways owner IAG, down 1.5%, and Rentokil, down 1%.
15:43pm: US stocks remain subdued
US stocks have remained as trading on Wall Street heads into the afternoon.
The Dow Jones is down 165 points at 39,616, while the S&P 500 is down 6 points at 5,235.
The Nasdaq remains unchanged at 16,402.
Heat map of the S&P 500's $SPY early performance so far today pic.twitter.com/fmsT9xMS11
— Evan (@StockMKTNewz) March 22, 2024
15:25pm: Phoenix Group soars as it warns of job cuts
Phoenix Group, Britain's largest pension firm and owner of Standard Life, has held its position as today's FTSE 100 top riser after it jumped 10% on the back of strong full-year results.
The company unveiled plans to cut costs by £250 million by 2026, with hundreds of jobs set to go as a result.
Part of this target includes saving £125 million through streamlining the business and ending unprofitable offerings.
Andy Briggs, chief executive of Phoenix Group, said: “There will be job cuts as part of this.”
Russ Mould added: “Life insurer Phoenix is incredibly popular with retirees thanks to its generous dividends and shareholders will be celebrating a near-8% rise in the share price after better-than-expected results and a positive outlook for cash generation and debt reduction.”
14:57pm: Tesla stumbles as it reduces output at China plant
Tesla shares have slipped 2% after reports revealed production at its China plant had reduced due to slower-than-expected electric vehicle growth.
Musk's EV firm is believed to have told workers at its Shanghai facility to lower the production output of its Model Y and Model 3 vehicles by reducing their working days from six and a half to five.
Tesla is already the worst-performing stock on the S&P 500 in 2024, with various analysts having downgraded it over the past few months.
Shipments declined in the first two months of the year even though sales for passenger-vehicles in China lifted 17% year-on-year.
14:11pm: Nationwide apologises for delayed payments
Nationwide has apologised to its customers after it suffered an issue which meant all of its users' payments, both in and out, were delayed.
Its faster payment system stopped working on Friday morning before it was rectified earlier today.
The fallout meant some customers were unable to pay bills, while others complained of not having recieved their wages.
Nationwide said the issue was fixed but warned that it could still take "a few hours" for all the impacted payments to be fully processed.
"We are very sorry for any inconvenience caused," the building society added.
13:56pm: Number of blue chip results to pick up next week
While the FTSE 100 experienced one of its best weeks in recent history, it was relatively quiet in terms of company updates.
Looking forward to next week, the number of blue chip updates begins to creep up.
On Monday, B&Q owner Kingfisher and water utility firm Pennon will update.
Following on Tuesday will be an update from Ocado and investors will likely be hoping for a sense of calm after a recent dramatic showdown with M&S over the duo’s joint venture.
Wednesday will bring with it an update from cruise operator Carnival, with analysts predicting it should be on course for continued strong financial progress from late 2023 into the new year.
On Thursday, JD Sports will have a chance to rectify today's 6% slump when it provides full-year results, just a few months after it issued a post-festive trading profit warning.
Friday will be, of course, be the quietest, with firms taking the day off for Good Friday.
13:35pm: Wall Street opens lower
US stocks have opened lower after appearing to lose some of their momentum from the last couple of days.
The Dow Jones was down 9 points at 39,771, while the Nasdaq deopped 18 points at 16,384.
The S&P 500 kept flat at 5,241.
On Thursday, the major indexes closed at record levels, having hit all-time intraday highs.
Some of the equities which made the biggest moves at the start of trading include Lululemon and Nike, down 13.5% and 7% respectively, after the two warned of a weaker-than-anticipated sports clothing industry in the near-term.
Other movers included Reddit, down 2%, after a stellar debut and Best Buy, up 3%, after JP Morgan upgraded it from neutral to overweight.
Much of this week's strong performance has been driven by the dovish outlook provided by the Federal Reserve, which indicated there could be three interest rate cuts in 2024, the first of which in summer.
13:18pm: Santander expecting to improve on 2023's record profits
Santander is expecting to improve on its record profits from 2023, with another beat in the coming year.
More than €6 billion, or £5.2 billion, is expected to be dished out to shareholders as a result.
It comes as the Spanish lender attempts to shift away from traditional practices to become a "digital bank with branches".
Santander said at its AGM on Friday that it's on track to meet its record targets for 2024, with 2 million new customers having poured in this year.
It means income is expected to be 10% higher in the first quarter.
In 2023, Santander posted profits of €11.1 billion and returned €5.5 billion back to shareholders via share buybacks.
Chairwoman Ana Botin said: “I am very confident that we will deliver a considerably better performance in 2024 than 2023, which was already a record year, and will meet our 2024 targets.”
12:55pm: Bitcoin suffers tough week ahead of April's 'halving' event
Bitcoin was trading lower in early Friday exchanges, down 1.4% at US$64,563, capping off a volatile week for the world’s largest cryptocurrency.
The markets saw a bout of profit-taking following last Thursday’s all-time high, dragging the BTC/USD pair 5% lower week on week.
JP Morgan analysts believe Bitcoin "still looks overbought" and they predict it will continue to fall before April when the 'halving' event takes place.
A halving event is scheduled to take place on April 20 and will see the number of bitcoins available halved, with the block reward falling from 6.25 to 3.125.
12:36pm: Wall Street to open lower after strong week
Wall Street is set to open lower on Friday, but all three indexes are due to close the week out higher after two consecutive days of record-setting gains on Wednesday and Thursday.
The Dow Jones is positioned to open flat at 40,192, while the S&P 500 and Nasdaq are set to begin trading 7 and 51 points lower respectively.
FedEx shares are trading around 11% higher in the premarket after the postal service reported a third-quarter profit beat and promised investors a US$5 billion share buyback.
Falling the other way was Lululemon, down around 13% in premarket trading, after its forward-looking estimates came in lower than Wall Street had been expecting.
Nike also slid around 6% after it warned investors that both near-term and long-term prospects were downbeat.
The company projects slight revenue growth in the near term and has not specified the expected growth rate for fiscal 2025, against analysts' predictions of a 5.6% increase.
Meanwhile, newly listed Reddit has reversed marginally from its 48% gains on its debut yesterday, with shares down 2.5% in premarket trading.
12:15pm: FTSE 100 reverses on early gains; keeps at one year high
The FTSE 100 has reined back some of its gains from this morning, but, up 35 points, it is still at a one-year high and only around 85 points off the index's all-time highs.
Top risers include pension firm Phoenix Group, which jumped more than 10% after it announced better-than-expected results, a rosy outlook and a healthy dividend.
Other risers included NatWest, up 2.5%, and Reckitt Benckiser, up 2%.
Sliding the other way was JD Sports, down 6%, after it suffered a negative read across from a pessimistic trading update by Nike.
Kathleen Brooks at XTB said: "Perhaps the biggest shock of the week is the FTSE 100, which set a fresh record high on Friday. The countdown is now on for a move to 8,000 for this index, as it enjoys its own ‘everything rally’ with most sectors registering gains.
"The UK’s main blue-chip index has been an outstanding performer, and is currently higher by 2.8% this week, beating the Eurostoxx 50, which is higher by 0.8%. It has also performed better than the S&P 500, which is up by 1.77% and the Nasdaq, which is higher by 1.69% so far.
"The market now thinks that the first rate cut will come in June, and that there will be 3 rate cuts this year. Just last week, the market thought the first rate cut would come in August and that the BOE would only cut twice this year."
11:58am: LV swings to a profit as pensioners switch to annuities
LV, the insurance giant, returned to a profit in 2023 as it said it was able to keep costs steady.
With the high-interest rate environment persisting last year, the Allianz-owned group said it saw a swathe of its pensioner customers switch to annuities.
Pre-tax earnings for the group came in at £107 million for the 2023 calendar year, swinging from a pre-tax loss of £145 million in 2022.
Some £30 million was returned to its members after operating expenses remained relatively flat at around £109 million.
Boss David Hynam said: "Since 2011, we have shared member bonuses of £385m, reflecting our commitment to driving the success of LV so that it can be shared with our members.”
He added that looking forward, the group's prospects "remain positive" after having put in place "strong" foundations.
11:38am: Waitrose puts 500 jobs at risk as it closes warehouse
More than 500 Waitrose workers are at risk of losing their jobs as the supermarket prepares to close its Enfield warehouse.
It comes just four years after it was opened as part of a £100 million investment into the group's online grocery delivery operations.
John Lewis Partnership, which owns Waitrose, said it was closing the site due to rising rental costs and the fact the lease was set to expire next year.
Waitrose is expected to save around £8.7 million, with 545 workers having been viewed as having "no suitable alternative employment".
11:10am: Oil prices edge lower
Oil prices tipped lower for a third consecutive day as the prospect of future interest rate cuts boosted the dollar.
Brent Crude, was down marginally at US$86 per barrel this morning, meaning prices have dipped 2% in as many days.
The dollar was lifted on Thursday after the Bank of England issued dovish statements regarding the prospect of future interest rate cuts, echoing the Fed's message from Wednesday.
Han Zhong Liang, investment strategist at Standard Chartered, said: “We expect oil markets to remain tight in the short term, while geopolitical risks are also likely to create some bouts of volatility.”
10:52am: Issa Brothers turn off hundreds of Asda EV charging points
The Issa brothers have turned off over one hundred EV charging points at Asda stores highlighting that more cracks in their debt-laden empire are beginning to show.
RAC research found the number of electric vehicle charging points at Asda slipped by over two-thirds from 165 at the start of 2023 to just 46.
Mohsin and Zuber Issa, who also own the petrol forecourt company EG Group, began reducing the number of points after it exited a partnership with BP Pulse, and EV charging firm.
With only 22 Asda stores offering working charging points, the supermarket is the only major competitor to have reduced its numbers, with Tesco and Morrisons both investing heavily in growing its network.
10:22am: FTSE 100 sets sights on all-time high
The FTSE 100 is smashing all of its recent peaks to find itself at a 13-month high as it nears all-time highs of more than 8,000 - the last time being in February 2023.
Up 75 points, the blue-chip index is hovering around 7,958, and barring any sharp declines today, it could be on track to reach all-time highs next week.
Russ Mould at AJ Bell said: "“After a stunning session on Thursday, the FTSE 100 continued its ascent at the end of the trading week. Little by little it is edging back towards the 8,000 mark.
"Risk appetite is increasing; corporates are slowly becoming more upbeat and people are making money. That environment is favourable for equity markets and it certainly helps that AI darling Nvidia continues to enjoy a rising share price – its investor-favourite status implies that if its shares are moving higher, sentiment will stay positive."
10:06am: JD Sports tumbles after Nike dishes out pessimistic guidance
JD Sports is leading the FTSE 100 fallers on Friday after it shares tumbled 3.5% as it suffered negative read across from a poor Nike update on Thursday night.
Shares in the US sportswear maker sunk 7% after its management provided downbeat guidance on both near-term and longer-term trading trends.
Nike projects slight revenue growth in the near term and has not specified the expected growth rate for fiscal 2025, against analysts' predictions of a 5.6% increase.
Next week JD Sports will issue a full-year trading update where investors will be keen to see if trading has picked up after it issued one of the poorer festive trading updates in the sector.
Back in January, the group issued a profit warning, driven by poor weather that had hindered fleece sales, consumer pushback to higher prices and margin pressure in the US.
9:43am: Aston Martin poaches Bentley boss
Aston Martin shares have popped 2% after it revealed it has planned to poach Bentley boss Adrian Hallmark, with the luxury automotive industry veteran set to take the helm by no later than October this year.
Hallmark, who will become Aston Martin's fourth chief executive in as many years, joined Bentley back in 2018 and has helped lift its profits by more than ten times during his tenure.
Bentley, which is owned by Volkswagen, said Hallmark's decision was "at his own request and by mutual consent".
He will replace the 78-year-old Amedeo Felisa, who has also held the position as Ferrari (NYSE:RACE) boss.
Felisa joined two years ago and chairman and owner Lawrence Stroll has been quick to praise his ability to deliver on promises of growth and development.
However, since taking over in May 2022 shares have sunk around 40%.
Stroll said: "I am pleased that Amedeo will remain in post until Adrian joins and will continue to oversee the launch of our upcoming products, with our breathtaking line-up of new front engine sports cars a fitting legacy to his time leading the company and its product strategy.
"In Adrian Hallmark, we are attracting one of the highest calibre leaders not just in our segment, but in the entire global automotive industry."
9:17am: FTSE 100 at 1-year highs
The FTSE 100 has continued positively on from one of its best trading sessions in recent times.
The blue-chip index is heading towards an all time high, having closed at an 11-month peak, after the Bank of England restored confidence regarding upcoming interest rate cuts.
In equities, Phoenix Group, the pension firm, soared higher after it revealed it had swung from a full-year loss in 2022 to a pre-tax profit of £20 million in the most recent financial year.
JD Wetherspoon sunk despite both revenues and profits ticking higher in its interims.
Boss Tim Martin highlighted fears about further Covid lockdowns, but said the pub group still anticipates a reasonable outcome for the rest of the financial year.
Finally, tissue manufacturer Accrol revealed it would be joining the swarm of companies leaving the London Stock Exchange as its set to be bought for more than £127 million.
9am: The morning so far
The FTSE 100 rocketed to a 12-month high this morning, marking another bullish session following yesterday’s stellar performance.
Blue chips are responding to a suite of promising mancroeconomic data, namely a softer-than-expected inflation print earlier in the week and better-than-expected retail sales this morning.
UK retail sales decreased 0.4% year on year in February, a slightly better result compared to the expected 0.7% decline.
On a month-on-month basis, sales defied a forecasted decline by staying flat against the January print, aided by strong clothing and department store sales.
Matt Dalton, Partner, Risk consulting and consumer sector leader at Mazars, said the "British consumer remains resilient".
"Today’s number confirms that consumers are upbeat and gives confidence that Britain will likely not be too hard pressed to escape the technical recession,” he added.
On the company news front, the UK competition watchdog has raised concerns that the planned merger between Vodafone and Three “could lead to mobile customers facing higher prices and reduced quality”.
The Competition and Markets Authority, in its Phase 1 probe into the merger, suggested that “combining these two businesses will reduce rivalry between mobile operators to win new customers”.
It wasn’t enough to spook the market though, with Vodafone shares adding 2% this morning.
Pub chain J D Wetherspoon plc shares weren’t so lucky. ‘Spoons reported its preliminary interim results, showing that year-on-year revenues increased to 8.2% year on year to £991 million.
This evidently wasn’t good enough, with shares dipping 6% in opening exchanges.
8.30am: Vodafone-Three deal faces CMA scrutiny
The UK competition watchdog has raised concerns that the planned merger between Vodafone and Three “ could lead to mobile customers facing higher prices and reduced quality”.
Following a Phase 1 investigation into the merger, the Competition and Markets Authority found that both telecoms providers “provide important alternatives for mobile customers”.
The watchdog stated: “Both have made significant investments in their networks in recent years – which includes the rollout of 5G.
“Three UK is also generally the cheapest of the four mobile network operators. The CMA is concerned that combining these two businesses will reduce rivalry between mobile operators to win new customers.
“Competitive pressure can help to keep prices low, as well as provide an important incentive for network operators to improve their services, including by investing in network quality.”
Both Vodafone UK and Three UK have five working days to respond with meaningful solutions to the CMA, otherwise the deal will be referred to a more in-depth Phase 2 investigation.
8.03am: British consumers 'resilient'
Matt Dalton, Partner, Risk consulting and consumer sector leader at Mazars, said the "British consumer remains resilient" following today's retail sales print.
"While a 0.2% monthly rise in core retail sales may seem anaemic, it is still higher than expectations. With the exception of household goods and food stores, all categories, including clothing, saw rising volumes.
"Today’s number confirms that consumers are upbeat and gives confidence that Britain will likely not be too hard pressed to escape the technical recession.
"The figure is robust enough to suggest an economic rebound, but not strong enough to knock the Bank of England off its present course towards rate cuts. We thus believe rates will still come down probably during or slightly after the summer, further empowering British consumers."
Stocks opened eight points higher at 7,889, a few points off the six-month high.
7.55am: JD Wetherspoon boss still spooked by lockdowns
Pub chain J D Wetherspoon plc has reported its preliminary interim results, showing that year-on-year revenues increased to 8.2% year on year to £991 million.
Profit before tax saw a substantial rise to £36 million, up from £4.6 million in the previous year. Operating profit also significantly increased to £67.7 million, compared to £37.4 million last year.
Outspoken boss Tim Martin continued to express fears about further Covid lockdowns, stating: “The company continues to be concerned about the possibility of further lockdowns and about the efficacy of the government enquiry into the pandemic, which will not be concluded for several years.”
Looking forward, Martin said the company “currently anticipates a reasonable outcome for the financial year, subject to our future sales performance”.
7.33am: Accrol joining London delisting frenzy
Navigator Paper UK Limited is taking Accrol Group Holdings PLC (AIM:ACRL) off the London Stock Exchange through a £127.5 million takeover.
The offer values each Accrol share at 38p, reflecting an 11.8% premium over yesterday’s closing price, and significant premiums over six-month and twelve-month volume weighted averages.
António Redondo, chief executive of Navigator, said: "The prospective acquisition of Accrol, a renowned tissue manufacturer based in the UK, marks a pivotal moment for Navigator as we expand our commercial footprint to the UK tissue market.
“The proposed acquisition is perfectly aligned with our long-term growth strategy for the tissue business and underscores our unwavering commitment to driving innovation, sustainable growth, and operational excellence at Navigator.
Gareth Jenkins, chief executive Officer of Accrol added: "Accrol has undergone a period of significant transformation and growth over the last four years, investing in fully automating its tissue converting operations to enhance manufacturing capabilities.
“Combining with the Navigator Group brings together a highly complementary product offering. It will enable Accrol to benefit from the capabilities, scale, network, and resources of Navigator, building on the strategic progress we have made to date."
7.15am: Stocks to open lower
The FTSE 100 will open a few points lower at 7,882 when markets open this morning after closing at a six-month high yesterday.
London's blue-chip index closed 145 points higher at 7,882 after both the UK and US central banks provided dovish statements in their interest rate calls, indicating that three rate cuts could take place this year, with the first in summer.
On the macroeconomic calendar this morning, retail sales decreased 0.4% year on year in February, a slightly better result compared to the expected 0.7% decline.
JD Wetherspoon PLC (LSE:JDW) will shortly have its interim results out, alongside annual earnings from Phoenix Group.