- FTSE 100 up 36 points
- Gold at all-time highs
- Kingfisher hits targets
4pm: FTSE 100 caps off strong session
London’s blue-chip index is set to close half a percentage point higher, having added around 40 points from yesterday’s close to hit 8,317 in the final stretch.
Kingfisher plc was far and away the strongest riser with a 10% gain following a strong trading update.
Other strong late-day risers included easyJet plc, JD Sports Fashion PLC (LSE:JD.) and British Airways owner International Consolidated Airlines Group plc.
3.43pm: Guardian Media Group confirms talks underway to sell Observer to Tortoise Media
The Guardian Media Group has confirmed earlier rumours that it is in talks to sell its Observer weekend masthead to Tortoise Media.
Anna Bateson, GMG's chief executive, said: "This is an exciting strategic opportunity for the Guardian Media Group.
"It provides a chance to build the Observer's future position with a significant investment and allow the Guardian to focus on its growth strategy to be more global, more digital and more reader-funded."
Specific details on the deal have not been disclosed, but sources told Sky earlier today that Tortoise Media is willing to investment £25 million into the Observer over a five-year period.
A spokesman for Tortoise Media told Sky news: "We believe The Observer is one of the greatest brands in news, and we believe passionately in its future both in print and digital formats.
"The idea of it combining with our newsroom, to marry our expertise in podcasts and live events, and their exceptional record in reporting and original thinking, as well as their passion for music and film and food, is one we are keen to explore."
3.13am: Moonpig to deliver pre-peak update
Moonpig Group PLC (LSE:MOON)’s trading update tomorrow should refrain from any major shocks given the personalised card seller’s peak period comes later in the year.
Ahead of the busy Christmas season, Moonpig’s full-year guidance for mid to high-single-digit revenue growth should be unchanged following the first four months of its financial year.
Markets will then be looking for signs the card firm is on course to meet consensus expectations for £94.1 million in adjusted earnings over the year, through a 26% margin
2.48am: US markets surge
Tech stocks rallied when US markets opened today. The Nasdaq 100 index added 0.6% to 19,534, led by a rare bout of bullishness from Intel Corp (NASDAQ:INTC, ETR:INL).
The troubled Silicon Valley icon added over 6% on plans to split out its foundry business into a separate subsidiary.
CrowdStrike Holdings Inc (NASDAQ:CRWD) added 3.3%, with other top tech risers including Cisco Systems Inc (NASDAQ:CSCO, ETR:CIS), Meta Platforms Inc (NASDAQ:META, ETR:FB2A, SWX:FB) and Cadence.
The Dow Jones Industrial Average added 0.2% to 41,714 and the broader S&P 500 index added 0.4% to 5,653.
On the macroeconomic front, yearly retail sales growth declined to 2.1% in August compared to 2.9% in July. On a monthly basis retail sales added 0.1%, outpacing forecasts of -0.2%.
It marks the last piece of important macro data before tomorrow’s interest rate call from the Federal Reserve.
A cut is universally expected, but analysts remain divided over whether there will be a 25bps or a jumbo 50bps reduction to the bank rate.
Back in London, the FTSE 100 index has come off intraday highs, but at 8,306 remains 28 points higher from Monday's close.
2.19pm: Guardian in talks to sell Observer to Tortoise Media, according to Sky report
Sky News has reported that the left-leaning Guardian Media Group is holding discussions to sell its Observer weekend masthead to Tortoise Media.
Tortoise Media, which was founded in 2018 by journalist James Harding with a ‘slow news’ approach to reporting, is reportedly willing to invest £25 million into the Observer over a five-year period.
Harding has described Tortoise Media as a cross between TED and The Economist.
A spokesman for Tortoise Media told Sky news: "We believe The Observer is one of the greatest brands in news, and we believe passionately in its future both in print and digital formats.
"The idea of it combining with our newsroom, to marry our expertise in podcasts and live events, and their exceptional record in reporting and original thinking, as well as their passion for music and film and food, is one we are keen to explore."
“Harding is affable and well liked,” Guardian columnist Emily Bell said of the Observer’s potential new owner when he made the risky decision to leave as head of BBC’s news output to launch Tortoise Media.
He was previously an editor at The Times.
1.57pm: Revolut targets India
London-based payments disruptor Revolut, which is among the most valuable financial technology groups in Europe, is preparing to launch its services in India.
Speaking to the Financial Times, Paroma Chatterjee, chief executive of the bank’s Indian arm, said: “We’re actually very, very close, we’re literally down to single-digit bugs right now in the system.”
India, which has a rapidly growing middle class and overtook China as the world’s most populous country in 2023 is “a critical expansion market” for Revolut, said Chatterjee.
Revolut is in a period of mass expansion, having won a UK banking licence in July following a nine-year wait.
It was recently valued at $45 billion (£34 billion) in a staff share sale and is a hot contender for a blockbuster initial public offering on the London Stock Exchange.
“There will be a significant number of competitors in the market, all with a significant amount of funding,” Chatterjee told FT. “We will have to earn our right to win this market.”
1.25pm: US markets looking bullish
US stocks look buoyant in Tuesday’s pre-market trades, suggesting optimism for a jumbo interest rate cut from the Federal Reserve on Wednesday.
Tech stocks by way of the Nasdaq 100 are up 0.56% to 19,528, while the Dow Jones Industrial Average is set to open 0.3% higher at 41,742.
Futures contracts on the S&P 500 have the wider index adding 0.35% to 5,654.
Markets have increased their expectations of a 50-basis-point rate cut from just 30% a week ago to 70% today, sparking a flurry of risk-on sentiment across the equities space.
A pending year-on-year retail sales print due shortly will provide a further insight to the trajectory of the US economy.
Back in London, the FTSE 100 blue-chip index is currently up 64 points to 8,342.
1.07pm: Gold hovering at all-time highs
The rally on gold prices shows no sign of letting up, with the precious element touching all-time highs of U$2,580 (£1,951) on Tuesday
It comes amid expectations of an interest rate cut from the US Federal Reserve on Wednesday, with the most dovish of forecasts anticipating a jumbo 50-basis-point cut to the bank rate.
A rate cut of this size would simultaneously reduce the attractiveness of the money markets and add to remaining, albeit heavily reduced, fears of inflation in the US economy.
Further supporting the price of gold, central banks appear to have a continuing appetite for the commodity.
Alongside large-scale buying from India and China, SP Angel today noted that Saudi Arabia appears to be buying gold in preference to US dollars.
12.22pm: Investor confidence weighed down by poor UK economic outlook, says Hargreaves Lansdown
Hargreaves Lansdown has reported a 13% fall in its Investor Confidence Index in September.
The index dropped by 11 points to 85, driven largely by concerns over the UK economic outlook.
It coincided with weaker confidence in the Asia Pacific, Global Emerging and Japanese markets. Confidence in European and North American markets remained stable.
Emma Wall, head of investment analysis and research at Hargreaves Lansdown, said: “The only bright lights on the global dashboard are Europe and North America, despite political turmoil and stock market volatility in both.
“The data was collated before this week’s second assassination attempt on former president Donald Trump.
“This has caused significant noise regarding the safety of the candidates in the political race, and the impact of the outcome of November’s election – but it hasn’t had much impact on the S&P 500.”
The Investor Confidence Index is compiled by surveying Hargreves’ clients on a monthly basis.
11.57am: Flutter acquired Playtech’s Italian business for a small bargain - analyst
Flutter Entertainment PLC (LSE:FLTR)’s €2.3 billion acquisition of Playtech PLC (LSE:PTEC)’s Snaitech gaming business in Italy is around €70 million below Peel Hunt’s sum-of-the-parts valuation for the business, the broker has stated.
This in turn implies a 5% lower price of Playtech stock than Peel Hunt’s 1,000p target price.
However, the broker noted that Playteck’ intention to return up to €1.8 billion to shareholders via a special dividend should offset this.
“We expect the share price to react positively today as it is clear that Playtech has come out of the period without communication and can start to lay out the investment stall for its continuing B2B business,” said Peel Hunt.
Conversely, PlayTech shares dipped 3% following the disposal announcement.
Nonetheless, the broker reiterated its buy recommendation and 1,000p price target.
11.12am: Pret a Manger sales surpass £1bn for first time
Sandwich peddler Pret a Manger saw its global sales exceed £1 billion for the first time in its 30-year history in 2023, driven by escalating ex-UK growth.
Sales topped £1.1 billion, the group stated in an unannounced trading update, marking a 15% year-on-year incline, with a quarter of these sales generated outside of its core UK market.
“The fact that £1 in every £4 is now spent outside the UK is both an achievement and an opportunity for our business,” said Pret boss Pano Christou.
The group added that sales in the first half of 2024 rose by 10% to £569 million.
Pret has nearly 700 stores globally, with nearly a third outside of the UK. It currently has 65 locations in the US and a growing presence across Europe, India and South Africa.
Analysts at Shore Capital Market suggested that today’s unannounced update from an unlisted company “is no doubt seeking to raise awareness that the firm is alive and kicking, possibly ahead of a wider capital event or organisational change”.
"All in, Pret is expanding its mid-to-upper food-to-go assortment across a wide geography, including areas outside London in the UK,” they said.
Pret added that it has raised another £250 million from existing shareholders.
10.37am: B&Q-owner Kingfisher rallies on a ‘complicated beat’
B&Q-owner Kingfisher plc added 6.3% following a promising interim earnings report published today.
The FTSE 100-listed group delivered half-year results in-line with expectations, with adjusted pre-tax profit (PBT) dipping half a percentage point to £334 million and top-line sales dipping 1.4%.
It marks a considerable improvement from the 29% falling in adjusted PBT in the first half of 2023, suggesting a welcome recovery in the DIY market.
Barclays PLC (LSE:BARC) analysts called the results “a complicated beat”.
“The headline… numbers look very strong, although some of the outperformance is due to helpful (first-half/second-half) cost timing and £25 million of UK business rates recovery,” said analysts at the bank.
Regardless of the complexity of the beat, the market rallied, pushing Kingfisher stock to a 31-month high of 309.7p.
10.01am: Intel to rally
Intel Corp (NASDAQ:INTC, ETR:INL) is expected to post a 7% gain when US markets commence trading today.
It comes after the group outlined plans to split its foundry business into a separate subsidiary with its own governance structure within the wider group.
Intel Foundry comprises the Santa Clara-headquartered technology trailblazer’s semiconductor manufacturing wing, which is an aspect of the business chief executive Pat Gelsinger has been at pains to grow.
However, it has struggled to find a place in the heavily concentrated market which largely consists of a duopoly between TSMC and Samsung.
Intel has been slow to adopt the most cutting edge of chipmaking technology despite netting billions in subsidies from the US government’s CHIPS Act.
This has led to tumbling profits and large-scale workforce reductions.
In August, it was reported that Intel had brought in advisors to explore options to restore its declining business operations.
Intel hopes that splitting the foundry business will help to entice big-ticket clients away from its largest competitors.
“A subsidiary structure will unlock important benefits,” said the group.
“It provides our external foundry customers and suppliers with clearer separation and independence from the rest of Intel.
“Importantly, it also gives us future flexibility to evaluate independent sources of funding and optimize the capital structure of each business to maximize growth and shareholder value creation.”
Encouragingly, Intel also announced that it will be producing artificial intelligence chips for Amazon Web Services via a multi-year, multi-billion-dollar partnership.
9.05am: The morning so far
The FTSE 100 surged higher in early exchanges thanks in part to a 7% rally on Kingfisher plc shares.
The B&Q and Screwfix-owner delivered half-year results in-line with expectations, with adjusted pre-tax profit (PBT) dipping half a percentage point to £334 million and top-line sales dipping 1.4%.
It marked a considerable improvement from the 29% falling in adjusted PBT in the first half of 2023, suggesting a welcome recovery in the DIY market.
Other top risers among the FTSE 100 set include DS Smith PLC (LSE:SMDS) (up 2.4%), Phoenix Group Holdings PLC (LSE:PHNX) and JD Sports Fashion PLC (LSE:JD.) (both up 2%), Diageo PLC (LSE:DGE) (up 2.1%) and Prudential plc (up 1.85%)
Elsewhere in company news, FanDuel and Paddy Power-owner Flutter Entertainment PLC (LSE:FLTR) announced the acquisition of Playtech PLC (LSE:PTEC)’s Italian gaming operator Snaitech for €2.3 billion (£1.9 billion)
The deal follows a confirmation that talks were underway between the two in August. Flutter shares dipped 0.4% in opening trades and Playtech dipped 3%.
THG announced a spin off of its Ingenuity division through a demerger and said it is applying to change its listing category on the London Stock Exchange to potentially join the FTSE indices.
THG shares fell 4.5% following the announcement.
Barring any significant developments on the UK macroeconomic calendar, attention turns to US retail sales later in the day, which should give and insight into the robustness of the US economy prior to tomorrow’s Federal Reserve interest rate call.
The footsie is currently up 59 points to 8,337.
8.32am: THG to spin off Ingenuity arm, change listing category to join FTSE 250
THG PLC (LSE:THG) is preparing to spin off its Ingenuity division through a demerger and is applying to change its listing category on the London Stock Exchange to potentially join the FTSE indices.
The demerger aims to "maximise shareholder value" based on feedback from major shareholders, with final approval required from shareholders.
Following the demerger, THG will focus on its beauty and nutrition arms, described as profitable and capable of paying dividends.
In a trading update, the company also reported flat underlying revenue for the first half of the year, with adjusted EBITDA up 1.5% to £52.30 million. Excluding discontinued businesses, revenue was up 0.1% to £911.10 million.
Chief executive Matthew Moulding said he expects FTSE 250 inclusion by March 2025.
THG shares fell by 3.3% in early Tuesday trades.
8.18am: Blue chips make gains
The FTSE 100 surged 56 points higher to 8,337 in opening exchanges this Tuesday, propelled by a 7% rally on Kingfisher plc shares following the B&Q owner’s latest earnings report.
DS Smith PLC (LSE:SMDS), Phoenix Group Holdings PLC (LSE:PHNX) and Mondi PLC (LSE:MNDI) were also among the top risers after the opening bell.
7.45am: Flutter to buy Playtech’s Italian business
FanDuel and Paddy Power-owner Flutter Entertainment PLC (LSE:FLTR) is acquiring Playtech PLC (LSE:PTEC)’s Italian gaming operator Snaitech for €2.3 billion (£1.9 billion).
The deal follows a confirmation that talks were underway between the two in August.
Snaitech, which trades under the brand Snai, grew revenues by 5% to €946.6m in the last financial year and is the market leader among Italian sports betting brands.
It commands a 9.9% share of the Italian gaming market.
Flutter boss Peter Jackson stated: "I am delighted to announce the acquisition of Snai, one of the leading players in Italy, Europe's largest regulated market.
“This transaction is compelling strategically and financially. It fits perfectly within our strategy for value creating M&A and creates a significant opportunity to accelerate Snai's growth by providing them with access to Flutter's market leading products and capabilities both in the US and globally.
“I look forward to welcoming the Snai team to the Flutter Group and working with them to maximise the growth opportunity for our combined businesses."
7.29am: Kingfisher hits the mark
B&Q and Screwfix-owner Kingfisher plc delivered half-year results in-line with expectations today, with adjusted pre-tax profit (PBT) dipping half a percentage point to £334 million and top-line sales dipping 1.4%.
It marks a considerable improvement from the 29% falling in adjusted PBT in the first half of 2023, suggesting a welcome recovery in the DIY market.
Kingfisher tightened its full-year adjusted PBT target to between £510 million and £550 million (from between £490 million and £550 million previously) and increased its free cash flow forecasts.
France, where sales fell by 7.2%, was a sore spot in the report.
Chief executive Thierry Garnier stated: "Trading overall in the first half was in line with our expectations.
“This was underpinned by customers continuing to repair, maintain and renovate their existing homes, driving resilient volume trends in our core product categories.
As expected, demand for 'big-ticket' categories has remained weak, in line with the broader market, while seasonal category sales trends have improved since early July.
“Against this backdrop we maintained a strong focus on effectively managing our costs and inventory.
7.09am: Blue chips well bid in pre market
The FTSE 100 is gearing up for a strong start to the morning, with pre-market trades points to a 59-point gain to 8,331.
It follows a flattish Monday when the blue-chip index added around five points.
Overnight, US tech stocks had a dull session with the Nasdaq 100 closing half a percentage point lower, although the border S&P 500 closed in the green.
B&Q-owner Kingfisher plc has its earnings out this morning, alongside a swatch of small caps including Team17 Group, Warpaint London and Octopus Renewables Infrastructure Trust PLC (LSE:ORIT).