- FTSE 100 up 23 points
- Oil gains as OPEC+ extends output cut
- US stocks under pressure as election looms
4.02pm: FTSE 100 kicks off week on positive note
London’s blue chips headed into late trading 23 points higher at 8,200, led by NatWest Group PLC (LSE:NWG).
Shares in the lender climbed 3% over the day to hit their highest since 2011 and the aftermath of the global financial crisis, fuelled by a share price target upgrade by Peel Hunt following strong earnings late last month.
DS Smith PLC (LSE:SMDS), BT Group PLC (LSE:BT.A) and Frasers Group PLC (LSE:FRAS) also sat among the day’s winners, with the latter having been granted an upgrade by RBC analysts.
Benchmark Brent crude oil scaled back in the afternoon after surpassing the US$75 a barrel mark earlier on, though a 2.1% gain for the day saw shares in BP PLC (LSE:BP.) and Shell PLC (LSE:SHEL, NYSE:SHEL) rise by 1.4% and 0.8% respectively.
News over the weekend that OPEC+ would extend output cuts through December had fuelled oil prices, after Brent fell close to the US$70 mark last week.
US stocks faced mixed fortunes in the meantime on Monday ahead of Tuesday’s election, with the Dow Jones remaining off the mark, but S&P 500 and Nasdaq climbing into positive territory.
3.33pm: Ryanair urges airports to cut rates after air tax hike
Ryanair Holdings PLC (LSE:RYA) chief financial officer Neil Sorahan has warned airports across the UK will have to cut fees in order to keep attracting flights as taxes increase.
The airline signalled last week that capacity across the UK could be cut by up to 10% following news in the Budget that air passenger duty would increase from 2026.
“It’s the regions that will really suffer,” Sorahan said on Monday, “we will talk to our airport partners. Those conversations will have to take place”.
Flights from Ryanair’s main base Stansted will likely be secure, he added, though services elsewhere could be under threat.
“Everybody has to look at their cost base. If there are better opportunities elsewhere then we will chase them.
“They’ll have to look at how they stimulate volume for ourselves and other airlines.
“Airports don’t make money from landing and handling charges but they do make a lot of money from their shopping mall, their car park, their hotel.”
His comments came after Ryanair earlier on Monday unveiled a drop in profit on the back of lower fares and growing costs related to Boeing Co (NYSE:BA, ETR:BCO) issues… Read more
3.09am: Wall Street down as bonds rally ahead of election
Wall Street appeared in a cautious mood ahead of Tuesday’s presidential election as trading got underway for the week.
The Dow Jones dipped 0.3% as the market opened on Monday, while the Nasdaq fell 0.2% and the S&P 500 sat just off the mark.
A swing in the polls marginally favouring victory for Kamala Harris prompted traders to reassess positions on Monday ahead of the election.
Bonds rallied as a result, with the yield on 10-year treasuries remaining 10 basis points lower at 4.28% as New York opened.
The dollar faced a selloff in the meantime, falling 0.33% against the pound and placing the greenback on course for its worst day in six weeks.
“Recent polls had pointed to a Trump victory, casting a shadow over market sentiment,” City Index analyst Fawad Razaqzada said.
“Given the high risk that this could still be the case, investors are considering how such an outcome might impact fiscal policy, with some expecting increased spending and tax cuts that could exacerbate inflation pressures.”
2.42pm: NatWest shares at 13-year high on broker target upgrade
NatWest Group PLC (LSE:NWG) shares have returned to levels not seen since the bank was grappling with the fallout from the global financial crisis and its government bailout.
A share price target upgrade by Peel Hunt on Monday prompted the lender to climb as high as 389.3p and return to levels not seen since 2011.
Peel Hunt had lifted NatWest’s share price target to from 410p to 450p following earnings late last month and the continued sell-down of the government’s stake in the bank
“The [third quarter] period witnessed strong performances in all three of Natwest Group’s principal operating divisions,” Peel Hunt said in a note.
“Although these across-the-board positive outcomes might soften in [the fourth quarter] the underlying trajectory of travel is stronger than we and consensus had expected.”
Shares were trading 3% higher at 386.5p on Monday afternoon.
2.23pm: Thames Water creditors call for others to back rescue deal
Thames Water lenders have called on investors to back a £1.5 billion cash injection aimed at keeping the supplier afloat.
A group including BlackRock, Abrdn and M&G on Monday urged others to take part in the plan, according to a PA report, which was proposed last week.
The group of 100-plus investors collectively hold £12 billion in Thames’ class A debt and have already agreed to backstop the lifeline.
“This facility is open to all creditors and we want as many institutions as possible to support the company’s turnaround efforts,” a spokesperson said... Read more
1.20pm: Burberry takeover by Moncler would be a ‘game changer’ - analysts
Moncler’s takeover of Burberry Group PLC (LSE:BRBY) would see it secure a “promising deal with significant upside,” according to Morningstar analyst Jelena Sokolova.
Weekend reports had rumoured LVMH-backed Moncler could launch an offer for Burberry in a bid to create an “outdoor specialist giant”.
Sokolova said Monday that such a move would come following “commendable” efforts by Burberry on pricing and to refocus on iconic products such as outerwear and scarfs.
“However, challenges remain with their low share of sales in iconic outerwear, and also increased competition in the outerwear from the likes of Moncler but also more affordable independents like Barbour,” Sokolova added.
“Moncler's expertise in outerwear and its marketing prowess could be a game-changer for Burberry, steering the brand back to its core strengths.”
Burberry shares jumped 5.1% on Monday.
1.04pm: UK 2030 clean energy targets achievable - IEA
Britain's targets to decarbonise its power grid by 2030 have been backed by International Energy Agency executive director Fatih Birol.
Birol on Monday backed the new Labour government’s target to clean up the UK’s energy supply in the next six years.
“[It] is a good target,” he told The Times, “it’s an ambitious target but I think the UK can achieve it”.
This would involve doubling onshore wind, tripling solar power and quadrupling offshore wind by 2030 under flagship manifesto pledges laid out by the government... Read more
12.27pm: Wall Street seen higher as election closes in
Wall Street looked on course for a positive start to the week which will see either Kamala Harris or Donald Trump emerge victorious in the US presidential election.
Futures had the S&P 500 up 0.2% ahead of Monday’s opening bell, while the Nasdaq and Dow Jones were seen 0.1% higher respectively.
Latest polling showed Democratic candidate Harris inching ahead with an 8% lead in early voting ahead of the election on Tuesday.
Trump remained ahead among those likely to vote but had not yet done so in the meantime, according to the New York Times and Siena College poll.
“Coming at a time when markets appeared to have taken a Trump victory as a given, the polls are a timely reminder that betting markets may not be the best indication,” Scope Market analyst Joshua Mahony commented.
Bonds have rallied on Monday as a result of the latest swing in the polls, with yields on 10-year US treasuries down 10 basis points at 4.28%.
“What you’re seeing now is a realisation that we got ahead of ourselves,” UniCredit economics advisor Erik Nielsen added.
The former president’s Trump Media & Technology Group Corp also fell 6.6% in pre-market trading on Monday in response to the latest polls.
Aside from the election, Thursday is set to see the Federal Reserve make its latest base interest rate call, with markets widely expecting a cut regardless of who is named president.
11.49am: FTSE 100 extends gains as oil climbs further
London’s blue-chip index was up 51 points at 8,228 come late morning, as further gains for oil continued to drive the likes of Shell PLC (LSE:SHEL, NYSE:SHEL) and BP PLC (LSE:BP.) higher.
BP and Shell rose 1.6% and 1.3% respectively on Monday as benchmark Brent crude surpassed the US$75 a barrel mark, having sat close to US$70 last week.
Sunday’s announcement from OPEC+ that production cuts would remain in place throughout December had fuelled oil prices, while fears over further escalations in the Middle East also contributed.
“The Iranian pledge to hit hard after the recent Israel retaliation heightens concerns that we may yet see the conflict escalate despite hopes that we will see a line drawn under the matter,” Scope Markets analyst Joshua Mahony noted.
BP boss Murray Auchincloss had signalled tensions in the region posed the biggest risk to the international energy market earlier in the day at an event in Abu Dhabi.
Elsewhere on the FTSE 100, NatWest Group PLC (LSE:NWG) led risers with a 3.5% rise to 388p after a share price target hike by Peel Hunt analysts to 450p.
Frasers Group PLC (LSE:FRAS)’s upgrade to an ‘outperform’ rating by RBC saw it follow among the risers, as BT Group PLC (LSE:BT.A), Lloyds Banking Group PLC (LSE:LLOY) and Barclays PLC (LSE:BARC) also climbed.
11.20am: High streets bracing for 'tough' Christmas period - BDO
High streets are on course for an “exceptionally tough” Christmas period despite an uptick in sales last month, advisory firm BDO has warned.
Total store and non-store sales climbed by 4.1% over the course of October, following a drop of 1.7% a year earlier, BDO reported on Monday.
This reflected growth of 9.1% in non-store sales and a 1.7% increase across brick-and-mortar retailers.
BDO retail and wholesale head Sophie Michael highlighted that sales remained behind 2022 levels, despite the growth.
“With this being the most important time of the year for the sector, if sales figures continue to follow this trajectory the industry is set for an exceptionally tough festive period,” she said... Read more
10.51am: Frasers leads FTSE 100 higher on RBC upgrade
Frasers Group PLC (LSE:FRAS) led the FTSE 100’s risers on Monday after being granted an upgrade by RBC analysts.
Highlighting a “compelling” valuation, RBC bumped the Sports Direct owner up from a ‘sector perform’ to an ‘outperform’ rating.
This was based on the “likely resilience” of Frasers’ sports retail wing, property value and strategic stakes, such as in Hugo Boss, RBC said.
“Frasers contains a lot of moving parts but we think its resilience, cash generation and strategic stake investments have been underappreciated by the market.”
Strategic investments collectively equate to over £900 million, RBC highlighted, through which Frasers has developed strong brand partnerships.
Warehouse automation had also allowed Sports Direct to cut handling costs and reduce stock, analysts said, while focus on the likes of property and Frasers’ financial services offered further opportunities.
“Frasers is now more diverse, meaning that it should offer protection from pressures on any one area of consumer spending,” RBC added.
A share price target of 1,050p was set, marking a prospective 36% rise on Friday’s close.
Shares climbed by 2.3% to 784.5p on Monday.
9.28am: Burberry jumps on Moncler takeover report
Burberry Group PLC (LSE:BRBY) got a boost on Monday following reports it could be a takeover target of puffer jacket maker Moncler.
According to industry blog Miss Tweed, Moncler could be considering launching a bid for Burberry in order to create an “outdoor specialist giant”.
Several sources had indicated that Bernard Arnault, chief executive of LVMH which recently invested in Moncler, was keen to push such a deal, a report said.
This would come as Burberry navigates downtrodden demand for luxury goods and a recent exit from the FTSE 100 under new chief executive Joshua Schulman.
Shares jumped 4.4% to 847.8p on Monday.
9.02am: Profit warnings hit two-year high in the UK
The number of UK-listed companies issuing profit warnings hit a two-year high over the last quarter, EY-Parthenon has reported.
Some 84 companies warned on profits between July and September, marking an 11% increase year on year and the highest total since the third quarter of 2022.
This meant 19.2% of UK-listed firms had issued profit warnings over the last year, reflecting the largest percentage since the pandemic and 2001 before that.
“Uncertainty has been a persistent feature of the business environment for several years now, but, unusually, this latest surge in warnings wasn’t preceded by a sudden economic downturn or one-off event,” EY-Parthenon Partner Jo Robinson commented.
Heightened geopolitical tensions and intensifying uncertainty ahead of last week’s Autumn Budget were likely to have weighed, Robinson added.
Some 38% of warnings over the third quarter were triggered by contract and order cancellations, while falling sales prompted a third, according to EY-Parthenon.
Companies across the industrial support services sector issued the highest number of profit warnings, accounting for 10, followed by technology hardware and equipment firms.
“Time will tell whether this rise in profit warnings is a temporary spike or indicative of a longer-term trend,” Robinson added.
“But, against a volatile macroeconomic and policy backdrop, coupled with profound changes in technology and consumer behaviour, abrupt adjustments to earnings expectations appear increasingly likely.”
8.48am: Ryanair loses altitude as profits hit on Boeing woes
Ryanair Holdings PLC (LSE:RYA) shares fell over 2% on Monday after the airline reported a drop in interim profit on lower fares and higher costs relating to problems at supplier Boeing Co (NYSE:BA, ETR:BCO).
Costs rose 8% to €6.68 billion, Ryanair said Monday, causing interim profits to drop by 18% to €2.18 billion even with revenues edging up 1% to €8.69 billion.
This was despite record passenger numbers of 115 million passengers in the six months to end September 2024, up 9% on the previous year… Read more
8.41am: Wizz Air sees busier flights in October
Wizz Air Holdings PLC (AIM:WIZZ) has reported an increase in passenger numbers over October, aided by busier flights.
Some 5.63 million passengers flew with the airline over the month, Wizz announced on Monday, marking a 4.1% increase on October 2023.
Load factors climbed by 0.4% to 92.9% in the meantime, as capacity climbed by 3.7% to 6.06 million seats... Read more
8.16am: Shell, BP and Anglo American buoy index
The FTSE 100 ticked up 17 points to 8,194 as trading got underway on Monday, aided by gains for both Shell PLC (LSE:SHEL, NYSE:SHEL) and BP PLC (LSE:BP.) on the back of a jump in oil prices.
Shell and BP climbed 1.1% and 0.7% respectively as the market opened, coinciding with a 2.3% increase in the price of Brent crude after OPEC+ announced on Sunday that it would delay output hikes for another month through December.
Elsewhere, Anglo American PLC (LSE:AAL) climbed by 1.5% early on after unveiling the US$1.1 billion sale of its stake in Australia’s Jellinbah East and Lake Vermont steelmaking coal mines.
JD Sports Fashion PLC (LSE:JD.) and DS Smith PLC (LSE:SMDS) also rose early on, while Reckitt Benckiser Group PLC (LSE:RKT, ETR:3RB) fell back slightly on Friday’s gains.
7.59am: Oil higher as OPEC+ extends output cut
Oil prices gained further ground on Monday after the OPEC+ cartel agreed to delay an increase in output for another month.
Benchmark Brent crude climbed 2.3% to US$74.51 a barrel early on, adding to gains after the price fell close to the US$70 mark last week.
OPEC+, which encompasses the Organization of the Petroleum Exporting Countries, Russia and other allies, agreed on Sunday to keep production cuts in place through December.
Output had been due to increase by 180,000 barrels per day from next month, after OPEC+ previously pushed back a planned hike from October... Read more
7.35am: Anglo American ditches Jellinbah steelmaking coal mines stake
Anglo American PLC (LSE:AAL) will sell of minority stake in the Jellinbah East and Lake Vermont steelmaking coal mines for US$1.1 billion (£0.85 billion).
Joint venture partner Zashvin will buy Anglo’s 33.3% stake in Jellinbah Group, which owns the Australian mines, a statement said on Monday.
“The cash proceeds [...] reflect the exceptional quality of the Jellinbah business,” Anglo chief executive Duncan Wanblad commented.
“Our process to sell the rest of our steelmaking coal business - being the portfolio of steelmaking coal mines that we operate in Australia - is now at an advanced stage and we are on track to agree terms in the coming months”... Read more
7.14am: Stocks seen flat
London’s blue chips looked on course for a muted start to the week ahead of Monday’s open, with futures showing the FTSE 100 two points higher at 8,189.
This comes after the index racked up a 67-point gain on Friday to end last week on a better note, as shares faced pressure around Wednesday’s Budget.
Asian markets were broadly in the green overnight as a five-day meeting of China’s National People’s Congress, which is expected to bring clarity around stimulus measures to bring growth, got underway.
Japan’s Nikkei and India’s Nifty 50 were among those to drop.
The US election is set to dominate on the macroeconomic front this week, alongside interest rate decisions from both sides of the Atlantic on Thursday.