- FTSE 100 up 34 points at 8,206
- Index set new record of 8,248
- Apple to rally
4.05pm: FTSE 100 poised for record close
Having hit an all-time intraday high of 8,248 on Friday, London's blue-chip index looked geared to close the day in record territory yet again.
At 8,206, the FTSE 100 was up 34 points in late trading, having been helped along the way by growing optimism of base rate cuts in the US.
This came after Friday's US jobs report showed fewer payrolls were added to the economy in April than expected, while wage growth also sat below anticipations.
"[Federal Reserve] chair Powell condemned the idea that the economy was in or nearing a state of stagflation and this jobs report was strong enough to stave off those concerns," eToro analyst Bret Kenwell commented.
"However, the report was also weak enough that it could encourage the Fed to act sooner rather than later."
3.59pm: Apple gains £135 billion in value
Apple Inc’s near-7% gains on Friday morning, following expectation-beating results and a record buyback announcement, has seen the iPhone maker gain US$170 billion (£135 billion) in value.
Shares were up 6.8% on Friday after the technology giant’s second-quarter results, where it unveiled a US$110 billion share buyback, trouncing a record set by itself previously... Read more
Were Apple to hold the gains, it would edge closer to the US$3 trillion market capitalisation mark, having become the only company to have ever surpassed this in January 2022.
3.47pm: Housebuilders enjoy late surge
Housebuilders were among stocks to be buoyed as optimism grew of rate cuts in the US on news fewer jobs were added than expected in April.
Following the Labour Department’s update, the FTSE 100 was up 34 points at 8,206, while markets also climbed in the US.
Among companies fuelling gains for London’s blue-chip index were housebuilders, with Persimmon PLC, Barratt Developments PLC and Berkeley Group Holdings PLC up 3.7%, 3.5% and 3.2% respectively.
Rightmove PLC, the property portal, also saw strong gains, climbing 4.1%.
Insurer Phoenix Group Holdings PLC topped the day’s risers in the meantime, spiking late on to take gains to 6.3% after it also announced an early payoff of loan notes which had been due in 2029.
Among fallers, Holiday Inn-owner Intercontinental Hotels Group PLC was down 2.4% to head up the day’s losers after failing to please with news of growing revenues earlier on in the day.
Glencore PLC fell 1.3% in the meantime, after reports emerged suggesting the miner was mulling approaching rival Anglo American PLC with a takeover offer.
3.27pm: Ocado gains as analysts highlight stronger performance against online rivals
News that Ocado Retail was the UK’s fastest-growing grocery retailer over the three months to April 20 continued to benefit shares in joint owner Ocado Group PLC.
Come the afternoon, shares in the company, which owns online grocery business Ocado alongside M&S, were up 2.4%.
NIQ data on Thursday showed Ocado Retail’s sales over the three months increased by 12%, with analysts highlighting the strong performance.
Shore Capital’s Clive Black noted online UK grocery participation would likely climb as high as 15% of the total market by 2030, from 12.6% currently.
Wider growth among online retailers, of 3.2% for the period, was behind the rest of the grocery market, he added.
Ocado “is gaining overall” as a result, Black said, adding the online grocer had enjoyed a “good performance” ahead of the anticipated uptick in use of such services over the coming years.
2.56pm: Wall Street sent higher on rate cut hopes
Weaker-than-expected jobs figures for April on Friday prompted growing optimism that the Federal Reserve could begin to mull interest rate cuts, sending markets higher early on.
The Dow Jones added 477 points to reach 38,705 as trading got underway, while the Nasdaq and S&P 500 added 276 and 52 points respectively to sit at 16,117 and 5,116.
Labour Department figures showed 175,000 payrolls were added to the US economy last month, against expectations for 243,000.
“If the labour market is starting to soften, it would help the Fed in their fight to get inflation all the way back to target,” Validus Risk Management’s Ryan Brandham commented.
“Consequently, for today’s session, we would expect the market to price in more rate cuts in the US for 2024.”
Also providing upward pressure was Apple Inc, which climbed 6.8% as the market opened following a well-received second-quarter update on Thursday evening.
Amgen Inc saw even stronger gains of 12.3% after hinting toward encouraging interim results from a trial of its experimental weight-loss drug MariTide.
Cybersecurity firm Fortinet Inc slumped 7% in the meantime, after expectation-beating results on Thursday failed to deter investors from a larger-than-anticipated fall in quarterly billings.
2.28pm: Pound jumps as US job market slows
The pound gained against the dollar following news the US economy added fewer jobs than expected in April.
Sterling gained 0.5% against the dollar to reach almost US$1.26 following the figures from the US Labour Department showing 175,000 payrolls were added last month.
Markets had expected a 243,000 uptick in jobs over the month, leaving analysts speculating that the Federal Reserve could bring forward rate cuts.
“A weaker jobs market dampens wage pressures and makes some employees consider reining in their spending as they are concerned about future income,” Charles Stanley’s Garry White said.
“This is the sort of slowdown the central bank needs if it is going [to] hit its 2% inflation target”... Read more
2.14pm: Conservatives face hefty defeat in early local election results
Prime Minister Rishi Sunak has faced a blow in his government’s last major test before the UK’s looming general election.
As results drifted in from Thursday’s council and local elections on Friday, the initial read was a loss of 191 council seats and control of three councils by the Conservatives.
Labour won five in the meantime, gaining 78 seats, with a major win also coming for the opposition in the Blackpool South by-election.
The Liberal Democrats and Green Party also saw gains, adding 30 and 16 council seats respectively, while independents won 66 seats as one council was gained.
The first of the mayoral results showed Conservative Ben Houchen retained his seat in Tees Valley, in a slight consolation for Rishi Sunak’s government.
Star Sports analyst William Kedjanyi noted the “bleak set” of early results “saw things go from bad to worse for Rishi Sunak” ahead of the general election, which is yet to be called.
1.49pm: Markets jump as US jobs data surprises
Markets on both sides of the Atlantic received a boost after US jobs data showed fewer payrolls were added in April than expected, in turn boosting hopes for base rate cuts.
Nonfarm payrolls jumped by 175,000 in April, US Labour Department data showed on Friday, below analysts’ expectations for a 243,000 increase.
Average earnings climbed by 0.2% over the month, again below expectations, with unemployment coming in at 3.9%, against an anticipated 3.8%.
“Markets and central bankers have been looking for evidence that disinflation may be ahead, and today’s figures could indicate that the economy is slowing down,” Charles Schwab analysts said.
“A dive in the labour market may be what it takes to push the Fed from a stroll to a sprint.”
The FTSE 100 jumped further on the news to yet another high of 8,240, before scaling back to 8,229 - up 51 points for the day.
Futures trading had the Dow Jones, Nasdaq and S&P 500 adding 501, 275 and 60 points respectively in the meantime.
1.34pm: Paco Rabanne parent jumps on IPO
Paco Rabanne owner Puig enjoyed a bright start to life as a publicly-listed company as shares jumped over 4% on Friday following its initial public offer.
Having floated at €24.50, shares in the Spanish beauty and fragrance group climbed to €25.50 as trading got underway on Friday.
Shares had already been priced at the top-end of guidance, granting the firm a market value of €13.9 billion (£11.9 billion).
Some 106.5 million shares had been sold in the company, with the float representing the largest in Spain and one of the biggest in Europe this year.
1.12pm: Latest batch of New North Sea licences awarded
A new wave of 31 North Sea licences have been awarded, marking the third and final set offered under the UK’s 33rd offshore round.
Some 19 companies have been awarded licences to drill for oil and gas, covering 88 blocks across the southern North Sea, central North Sea and east Irish Sea.
Shell PLC was the only oil major to be awarded in the round, and will partner with ONE-Dyas on two licences spanning six blocks in the southern North Sea.
Finder Energy and Hartshead Resources gained two of the largest awards, representing 12 blocks and 10 blocks for each respectively.
Horizon Energy Partners, Neptune, Perenco UK, and INEOS UK SNS were also among companies to be awarded licences.
According to regulator the North Sea Transition Authority (NSTA), the new licences will collectively add 600 million barrels of oil equivalent (mmboe) up to 2060... Read more
12.07pm: Wall Street seen higher
Apple Inc is set to soar as the market opens on Friday, aiding the Dow Jones to a 302-point gain to reach 38,684.
Shares in the technology giant were up 6% in pre-market trading, after Apple beat expectations with second-quarter results and authorised a record-breaking US$110 billion buyback.
Futures trading had the Nasdaq and S&P 500 up 112 and 18 points respectively in the meantime, at 17,762 at 5,110.
XTB analyst Kathleen Brooks said Apple’s better-than-expected results, “mega” buyback and push into artificial intelligence were all buoying the stock.
On the latter, she added: “After the company abandoned its driverless car project, Apple lagged in the AI stakes. It said that it is investing in integrating AI into its hardware and software using chips made in-house and concentrating on privacy and security.
“Its experience with privacy and security on its iPhones and other devices could give it an advantage over its rivals.”
Traders also awaited jobs data for April on Friday, with expectations being for an additional 240,000 payrolls to have been created over the month.
This would mark the slowest rate of growth since November, with markets also eyeing wage growth data in the context of prospective interest rate cuts by the Federal Reserve, according to Brooks.
11.44am: Mike Ashley settles with Morgan Stanley
Frasers Group PLC founder Mike Ashley has settled his US$50 million "snobbery" lawsuit with Morgan Stanley.
Ashley had argued a request for over US$1 billion in collateral was “arbitrary”, after the Wall Street bank called for the cash to cover the risks of his firm buying into Hugo Boss in 2021.
He had sought damages of US$50 million (almost £40 million), arguing the move to cover a potential fall in Hugo Boss’ share price was an attempt to force Frasers to abandon its position in the luxury retailer... Read more
11.17am: Government climate plan ruled unlawful by High Court
A new government plan aimed at meeting the UK’s climate targets has been ruled unlawful by the High Court.
Charities Friends of the Earth and ClientEarth had taken the government to court over its upcoming Carbon Budget Plan, alongside the Good Law Project.
Such plans were laid out by former net zero secretary Grant Shapps and are set to come into effect next March, determining how the UK will achieve climate targets until 2037 as part of a wider goal of meeting net zero pledges by 2050.
The groups had argued in February that Shapps acted unlawfully by approving the plans without adequate information as to whether individual policies could actually be met.
High Court judge Clive Sheldon ruled in their favour on Friday, stating Shapps’ decision-making was “simply not justified by the evidence”.
“If, as I have found, the secretary of state did make his decision on the assumption that each of the proposals and policies would be delivered in full, then [his] decision was taken on the basis of a mistaken understanding of the true factual position,” Sheldon said.
10.46am: Asda reshuffles debt as prospective takeover looms
Asda has refinanced some £3.2 billion worth of debt taken on after the Issa brothers took control of the supermarket from Walmart in 2021.
New bond agreements maturing in 2030 and 2031 have been secured, according to the supermarket, while £300 million was used from its balance sheet to reduce debt.
This comes as Zuber Issa reportedly closes in on the sale of his 22.5% stake in Asda to TDR Capital, which would see the private equity group take full control of the supermarket.
Asda’s net debt stood at £3.8 billion as of the end of last year, with this having been racked up following the £6.8 billion takeover in 2021.
“We saw strong demand from investors after taking a thoughtful and prudent approach to refinancing our near-term debt well ahead of maturities,” chief financial officer Michael Gleeson said.
This was “to further strengthen our balance sheet,” he continued.
“The refinancing also reflects the wider strength of Asda as a diversified retail group [...] and following recent investments, a major presence in the high-growth convenience and food-service markets.”
9.53am: UK ‘pulling further’ away from recession - S&P Global
Britain continued to rebound from last year's technical recession in April, S&P has said, as the services sector saw a sixth consecutive month of growth.
The S&P Global UK Services PMI climbed to 55 in April, from 53.1 in March and above expectations for 54.9.
Marking the fastest rate of business activity growth since May last year, S&P Global director Tim Moore said the figures showed further improvement in the UK economy.
“The latest survey results are consistent with the UK economy growing at a quarterly rate of 0.4% and therefore pulling further out of last year’s shallow recession,” he commented.
“Relief at a turnaround in the economic outlook was commonly cited as a factor supporting sales pipelines in April.”
However, some businesses reported clients were remaining risk averse to elevated inflation, while election uncertainty and fading hopes for base interest cuts were also cited as headwinds.
Tighter margins from higher costs left some firms unwilling to take on new staff in April too, leaving it the worst month for job creation so far this year.
9.31am: Anglo American leads gainers on Glencore approach rumours
Anglo American PLC jumped to the top of the FTSE 100 risers on reports rivals Glencore PLC was mulling joining a bidding war for the miner.
According to Reuters, Glencore is considering approaching Anglo with the view of taking over the company, though no offers have been made yet.
This would come after BHP Group Ltd’s US$39 billion all-paper offer was rejected by Anglo last week, with sources saying another bid is being considered.
Anglo climbed 3.2% on the news, to top the day’s movers, with the FTSE 100 climbing 24 points to 8,196 in the meantime.
The blue-chip index had notched up yet another record on Friday morning, surpassing the 8,200 mark for the first time ever to reach as high as 8,205.
9.20am: Rail nationalisation the elephant in the room for Trainline - analysts
Trainline PLC pleased investors after reporting operating profit doubled to £56 million last year on the back of strong growth in Europe, with shares climbing 8.6% in the morning.
However, analysts noted Labour Party proposals to effectively renationalise the UK’s railways still loomed large and housed a potential hit to Trainline.
Indeed, there was “no mention [of the] plan to bring all UK rail franchises back under public ownership should they gain power,” Hargreaves Lansdown’s Steve Clayton pointed out.
Third Bridge analyst Albie Amankona added the plans “could pose a threat to Trainline” in the meantime.
That said, Amankona also noted consumer habits would likely be hard to change following any prospective government move on ticketing, with Shore Cap highlighting Labour suggestions that no changes would be made to sales.
eToro’s Mark Crouch also brushed off concerns over the Labour plans.
“Investors will hope the company’s momentum is not derailed” on the proposal, he acknowledged, but claimed “it’s nothing more than a headline-grabbing slogan” so far.
However, “uncertainty could lay further down the line should it become a reality,” Crouch said.
8.54am: The morning so far
The FTSE 100 notched up another all-time high after peaking 24 points higher at 8,198 in opening trades.
Apple’s strong quarterly result and subsequent 6% post-market rally in the US infused some optimism into the stock market.
Mining big cap Anglo American plc was the strongest morning riser among the domestics, while Diageo’s appointment of Coca-Cola exec Nik Jhangiani as chief financial officer in place of Lavanya Chandrashekar sent the drinks supplier’s shares 1.3% higher.
Paddy Power-owner Flutter Entertainment plc was also on the front foot, adding more than 2% to its share price.
Elsewhere in company news, Holiday Inn owner IHG reported a global revenue per available room (RevPAR) increase of 2.6% year-over-year, led by a strong performance in the EMEA region.
IHG also said it will be lowering the contributions made by franchisees into the System Fund, which is used to maintain and improve systems crucial for the global operation of IHG hotels, including marketing efforts, booking systems, and loyalty programs, among others.
The revised structure is expected to add $25 million to top-line revenues in 2024. Shares were down 1.4%, with the market seemingly underwhelmed by IHG’s quarterly financials.
Trainline PLC reported a 22% year-on-year increase in net ticket sales, rising from £4.3 billion in financial 2023 to £5.3 billion in financial 2024, with operating profit doubling to £56 million.
Shares in the online ticketing group soared more than 8%.
8.33am: Diageo chooses former Coca-Cola exec as new CFO
Diageo plc has appointed Nik Jhangiani as chief financial officer in place of Lavanya Chandrashekar, who will step down after three years in the role.
Chandrashekar will also leave the board after six years with the drinks supplier.
Jhangiani is currently CFO at Coca-Cola Europacific Partners (CCEP), the world's largest Coca-Cola bottler with revenues of over €18 billion in 2023, a role he has held since 2016.
Debra Crew, chief executive of Diageo said: "I am delighted that Nik will be joining us. He is a highly experienced CFO with a proven global track-record of generating growth across multiple consumer businesses and industries. Nik's experience and international mindset will make him a strong addition to our leadership team.
"I am grateful to Lavanya for her leadership over the last six years and her contribution as Diageo successfully expanded our business through a global pandemic and delivered major productivity savings.”
Jhangiani said: "I am delighted to be joining Diageo. It is an organisation I have long admired and one of the world's most respected and trusted consumer businesses.
“I look forward to working with my new colleagues to drive value for Diageo's shareholders, and to support the company's strong track record of building and sustaining exceptional brands."
8.28am: Footsie at another all-time high
The FTSE 100 ran up another all-time high when markets opened on Friday after adding 58 points to 8,198, just one point off the previous ATH achieved in last-week's stellar run for the blue-chip index.
Top morning risers included Ango America, Flutter, Diageo and Ocado.
8.15am: Holiday Inn owner IHG reports revenue growth, German expansion
Holiday Inn owner InterContinental Hotels Group PLC reported a global revenue per available room (RevPAR) increase of 2.6% year-over-year, led by a strong performance in the EMEA region.
The company has also progressed in its $800 million share buyback program, with $239 million completed so far under a broader plan to return over $1 billion to shareholders in 2024 through buybacks and dividends.
Operationally, IHG opened 6,300 rooms across 46 hotels during the quarter and expanded its room signing by 7%, strengthening its global pipeline.
A new agreement in Germany will significantly increase IHG's presence, adding up to 17,700 rooms or a 1.9% increase to its global system.
Announced by IHG and NOVUM Hospitality in April, the long-term agreement will see 108 open hotels and 11 hotels under development join IHG's system between 2024 and 2028.
IHG said it will be lowering the contributions made by franchisees into the System Fund, which is used to maintain and improve systems crucial for the global operation of IHG hotels, including marketing efforts, booking systems, and loyalty programs, among others.
The revised structure is expected to add $25 million to top-line revenues in 2024.
Shares opened a percentage point lower on Friday.
7.53am: AIM gets a new hobby
The junior market gets a new addition today as TheWorks.co.uk plc completes a move from London’s main market to AIM.
The arts, hobbies and books dispenser cited Increasing costs and regulatory requirements of the main market as reasons for the move, with The Works suggesting these had become “disproportionately burdensome”.
Chair Carolyn Bradley called it “a more appropriate market” for the Works.
“We reiterate our confidence that this move will deliver a significant cost saving, leading to increased value for shareholders.” she said.
7.45am: Apple to support tech stocks this afternoon
Apple will lead US stocks higher later on today, with the tech titan expected to add 6% to its share price, or around $160 billion (£127.5 billion) in total value.
The post-market rally comes on the heels of a strong quarter and jumbo $110 billion share buyback.
Though iPhone sales were down 10% in the second quarter, services revenue managed to offset these expected losses.
Apple boss Tim Cook highlighted the exceptional performance of the Services segment, which was “an all-time revenue record”, he told shareholders.
7.21am: FTSE 100 to hit another record
FTSE 100 is heading for another record this morning according to the financial spread betters after Apple helped steady Wall Street overnight.
On Thursday, London's blue-chip index closed at a new record high of 8,172, up 51, and Footsie was being tipped to add 20 points at the opening bell
A solid update from Intercontinental Hotels Group should help the mood. Spirits giant Diageo might also perk up with the appointment of a new finance head.
Overnight, Apple picked up as it shrugged off reports of tumbling iPhone sales to post better-than-expected earnings and sales.
In a move signalling the tech giant's confidence in its financial position, Apple also authorised an additional US$110 billion for share buybacks.