- FTSE 100 up 2 points
- Car production slumps
- Direct Line, Loungers soar on takeover bids
3.56pm: Index just above the mark late on
The FTSE 100 approached late trading just above the mark on Thursday, up two points at 8,276.
Spirax Group PLC continued to lead risers into the afternoon, up 3.8% after Citi analysts initiated coverage of the engineering firm with a ‘buy’ rating.
Admiral Group PLC followed with a 3.1% gain thanks to read across from Aviva PLC (LSE:AV.)’s rejected £3.3 billion bid for Direct Line Insurance Group PLC (LSE:DLG), news of which broke earlier on.
This saw Aviva among the day’s losers, having dropped by 2.9%, and coincided with a busy day in terms of takeover news.
Loungers PLC (AIM:LGRS) was among those in focus, as shares surged 28.1% after it agreed to a takeover bid by US private equity firm Fortress, valuing it at £338 million.
Direct Line soared 40.1% following Aviva’s rejected bid in the meantime, while waste firm Renewi jumped 44.9% on the back of a £701 million offer from Macquarie.
3.45pm: Drivers paying too much at pumps as fuel margins ‘stubbornly high’ - CMA
Britain’s competition watchdog was warned drivers are paying too much for fuel as retailer’s margins have risen as petrol and diesel prices fall.
Average margins at supermarkets increased from 7% to 8.1% between April and August, a Competition and Markets Authority report said on Tuesday, while these climbed from 7.8% to 10.2% across other retailers.
Both were high against historic standards, the CMA said, and rose as petrol and diesel prices fell.
“Drivers are paying more for fuel than they should be as they continue to be squeezed by stubbornly high fuel margins,” CMA director Dan Turnbull said.
“We therefore remain concerned about weak competition in the sector and the impact on pump prices.”
3.10pm: Gold slides as risks skewed to downside in short-term - analyst
Gold came under further pressure on Thursday, dropping by 0.37% to US$2,643 an ounce.
The yellow metal had kicked off the week above the US$2,700 mark, with the likes of easing tensions in the Middle East pushing down demand.
City Index analyst Fawad Razaqzada noted gold had now faced a reset after hitting highs repeatedly this year, peaking at US$2,792 in September.
“The decline began as prices hit resistance at a key zone, precisely where expected: the US$2,708 to US$2,725 range,” Razaqzada commented.
“This zone, which had previously acted as a crucial support level, became resistant after breaking down during the election-day selloff.”
Razaqzada added that it was “too soon to tell” whether the recent decline was a temporary trend, but that gold prices had indeed taken a “bearish turn” and that risks in the near-term were skewed to the downside.
“It’s worth noting that the long-term trend remains bullish, suggesting this could be part of a much-needed correction or consolidation phase,” Razaqzada said.
2.44pm: German inflation ticks up in November
German inflation picked up in November, prompting speculation opposition against a rate cut by the European Central Bank next month would grow.
Prices climbed by 2.2% over the month, against 2.0% in October, headline preliminary figures from federal statistics agency Destatis showed.
Its measure in comparison with other European Union nations remained unchanged at 2.4% in the meantime.
This coincided with data from the European Commission showing an improvement in sentiment over the course of October, from an index reading of 95.7 to 95.8.
“With today’s surprise improvement in eurozone sentiment and now German inflation, some ECB members might start doubting both the October rate cut decision and the opening to even larger rate cuts at the December meeting,” ING analysts said.
2.26pm: THG investors welcome demerger plan
THG PLC (LSE:THG) shares surged 5.4% to 45.65p as shareholders appeared to welcome details from the retailer over the planned spin off of its Ingenuity digital and logistics arm.
Ahead of a vote on the demerger, set for December 27, THG set expectations for mid-to-high single-digit revenue growth over the medium term within its remaining business.
Jefferies analysts highlighted a pre-tax earnings margin of around 9% within this, alongside an anticipated reduction in capital expenditure by £20 million.
“THG is set to enter the new year as a consumer specialist,” Peel Hunt analysts added, with revenue of £1.9 billion in 2023 and adjusted pre-tax earnings of £103.1 million.
Ingenuity would likely have “sufficient liquidity to reach cash flow breakeven” by 2028, Jefferies pointed out, through £88 million in cash on its balance sheet and a £55 million debt facility... Read more
1.49pm: easyJet to cut back domestic flights in response to Budget
easyJet PLC is set to cut back on domestic flights in response to an increase in air passenger duty, announced in last month’s Budget.
Routes from London to Scotland and Northern Ireland would be worst affected, chief financial officer Kenton Jarvis signalled on Thursday.
Chancellor Rachel Reeves announced the travel tax would increase by £2 per flight from 2026 in the October Budget, taking the standard rate on a trip within the UK to £16.
Jarvis also warned of a £13 million hit on the back of higher employer national insurance following the Budget, The Telegraph reported.
Higher rates risked dampening demand, according to Jarvis, leading easyJet to cut flights after rival Ryanair Holdings PLC (LSE:RYA) previously warned of a similar move.
1.27pm: Monzo accused of breaching UK banking rules
Britain’s antitrust watchdog has accused Monzo Bank of breaching four areas of UK retail banking rules.
Including misinforming customers over service quality and account charges, an open letter from the Competition and Markets Authority highlighted cases of “non-compliance”.
CMA director Colin Garland said “further formal enforcement action” would not be taken, given remedies by Monzo, but that it was not the first case relating to the bank… Read more
12.59pm: Household cost growth moderates as transport costs subside
Growth in household costs slowed in the year to September, ONS figures showed on Thursday.
The household costs index climbed by 2.0% on an annual basis in September, against August’s 2.4% and the 8.4% rise seen a year earlier.
Slowing growth in transport costs was largely attributable for the decrease, the ONS said.
Mortgage holders and renters faced faster growth in costs though, the figures showed, which ticked up by 2.6% and 3.0% for each group respectively.
The highest earners saw household costs increase by 2.5% in the meantime, against 1.4% growth for those in the lowest income bracket.
“Higher inflation for high-income households was a result of higher contributions from mortgage interest payments, 0.6 percentage points more than low-income households,” according to the ONS.
“Falling gas, electricity and other fuel prices reduced the annual inflation rate more for low-income households, by minus 1.6 percentage points, compared with minus 0.9 for high-income households.”
12.29pm: Canada, China hit back over Trump tariff talk
Canada and China have both moved to hit back against threats of wide-ranging tariffs under Donald Trump when he steps into the White House in January.
Reports emerged on Thursday that Canada was mulling retaliatory tariffs to impose on the US.
China said tariffs would “not solve” the US’ issues in the meantime, responding to claims by Trump blaming other nations for the fentanyl crisis.
Trump on Monday laid out plans to slap 25% tariffs on all Canadian and Mexican goods in a social media post and separately warned of a further 10% tax on Chinese imports.
AP reported Canada was mulling a response, with prime minister Justin Trudeau said to have held a virtual meeting with the premiers of the nation’s provinces on the threat… Read more
Chinese commerce ministry spokesman He Yadong warned “imposing tariffs at will” would “not solve the United States’ own problems” in response.
“The United States should abide by World Trade Organisation rules and work with China in accordance with the principles of mutual respect, peaceful coexistence and win-win cooperation,” He added in a press conference.
12.07pm: Spirax heads up risers on Citi ‘buy’ rating
Spirax Group PLC emerged as the FTSE 100’s biggest riser into Thursday afternoon after Citi analysts unveiled a bullish stance on the engineering firm.
Citi initiated coverage of a string of UK industrial firms in a note on Thursday morning, including Spriax, which was graced with a ‘buy’ rating and 8,600p share price target.
Shares ticked up 3.2% to 7,120p as a result, taking the stock to its highest since early October.
Peer Smiths Group (LSE:SMIN) was also granted a ‘buy’ rating in the note, alongside a share price target of 2,400p, promoting it to climb 0.4% to 1,781p on Thursday.
Safety equipment company Halma PLC (LSE:HLMA) fell by 0.1% to 2,690p in the meantime after being hit with a ‘neutral’ rating and 2,900p target by Citi.
Overall, the FTSE 100 fell back to 8,274 to sit flat for the day.
11.31am: M&S, Kingfisher join queue for Homebase stores
Marks and Spencer Group PLC (LSE:MKS) and B&Q owner Kingfisher PLC (LSE:KGF) have reportedly shown interest in the remaining Homebase stores up for grabs after it fell into administration.
According to Sky News, the duo are preparing offers for between 20 and 25 stores as the deadline to prevent the closure of Homebase’s last 50 unaccounted-for sites looms.
Homebase entered administration earlier this month, placing around 2,000 jobs at risk.
The Range bought roughly 70 of its stores, alongside the Homebase brand and e-commerce division, in a pre-pack deal.
Some 1,600 jobs were saved through the deal with The Range, with a deadline for offers over the remaining sites set for Friday following a sales process by administrator Teneo.
11.04am: Entain regains after gambling rule hit
Entain PLC (LSE:ENT) sat among the FTSE 100’s risers on Thursday morning as shares looked to be in recovery mode after falling as new UK gambling rules were announced on Wednesday.
Shares ticked up 2.5% on Thursday, having dropped on Wednesday as news broke the Department for Culture, Media and Sport would hit the industry with new measures.
A £5 per spin limit is set to apply to those aged 25 and over under the rules, with 18 to 24-year-olds restricted to £2 stakes.
A statutory levy on firms to help fund gambling addiction was also set to be introduced.
10.27am: Renewi soars as takeover agreed with Macquarie
Waste management firm Renewi PLC (LSE:RWI) has surged 43.5% after firming up a £700.9 million takeover agreement with Australia’s Macquarie.
Renewi said on Thursday that Macquarie had offered 870p a share, representing a 57% premium to its closing price on Wednesday.
Macquarie, which previously owed crisis-struck Thames Water, had walked away over a year ago after an 810p per share offer was rejected.
10.10am: Oil picks up as OPEC meeting delayed
Oil prices spiked on Thursday morning, coinciding with news the OPEC+ cartel had pushed back its latest meeting into next week.
Benchmark Brent crude moved as high as US$73.19 a barrel, having been as low as US$72.42 earlier on in the morning.
OPEC said that its meeting scheduled for Sunday would now take place next Thursday in order to avoid conflicting with another event.
Eyes have been on the cartel and whether it will continue to delay output cuts in the meeting as speculation mounts over a supply glut next year.
9.43am: Tesco, Sainsbury’s dealt double upgrades by JP Morgan
Tesco PLC (LSE:TSCO) and J Sainsbury PLC (LSE:SBRY) racked up gains on Thursday thanks to a double upgrade by JP Morgan brokers.
Both were lifted from ‘underweight’ to ‘overweight’ by the bank in a note, which highlighted upside in the UK’s food retail sector.
“Our view into 2025 is more balanced and varies by market,” JP Morgan said.
“In particular [we are] more constructive on the UK, while we believe that the EU food retail sector will move into stock-picker territory.”
Tesco and Sainsbury both offered “upside risk” moving into next year, analysts added.
B&M European Value Retail SA (LSE:BME) was also highlighted for potential “over-earning,” though JP Morgan noted this was on lower expectations relative to consensus.
Sainsbury’s and Tesco gained 2.8% and 2.4% respectively on Thursday, as B&M climbed by 1.2%.
9.23am: French stocks in recovery mode after budget fears
French stocks gained over the course of the morning, having stooped to their lowest since August on Wednesday as fears swirled around a political crisis.
France’s CAC ticked up 0.6% on Thursday after the country's finance minister said the government could make concessions to push through its budget.
Fears have mounted over the government’s collapse were the budget, over which negotiations have taken place with Marine Le Pen's right-wing party Rassemblement National, not passed.
9.13am: Admiral leads FTSE 100 higher
The FTSE 100 held gains into Thursday morning, having climbed by 18 points to 8,292.
Admiral Group PLC led the way among risers thanks to read across from Aviva PLC (LSE:AV.)’s rejected £3.3 billion bid for Direct Line Insurance Group PLC (LSE:DLG).
Spirax Group PLC followed on bullish commentary from brokers, including Citi which initiated coverage of the engineering firm with a ‘buy’ rating.
JD Sports Fashion PLC (LSE:JD.), Tesco PLC (LSE:TSCO) and J Sainsbury PLC (LSE:SBRY) were also among the early risers.
Aviva PLC (LSE:AV.) led fallers in the meantime as investors mulled its rejected bid for Direct Line.
8.55am: Consumer confidence under pressure in run-up to Christmas
Consumer confidence has remained under pressure since last month’s Budget as concerns have built around the economy in the run-up to Christmas.
According to the British Retail Consortium, consumers' views on the economy deteriorated between October and November, with its tracker declining from -17 to -19.
Outlook on personal finances barely changed in the meantime, moving from -4 to -3, the retail body found.
“There was little shift in consumer confidence since the Chancellor’s Budget, with many worried about the economy in the lead-up to Christmas,” BRC head Helen Dickinson said.
“Personal retail spending remained positive,” she highlighted, pointing to an increase from +2 to +3, “though this was to be expected as consumers prepare for the festive season”.
“The last month clearly did little to shift the dial for households either positively or negatively,” Dickinson added.
“However, the same cannot be said for the retail industry. With over £7 billion in additional costs in 2025 resulting from the Budget, retailers will have little choice but to raise prices or reduce investment in jobs and shops.”
8.36am: Direct Line, Loungers in demand after takeover bids
Direct Line Insurance Group PLC (LSE:DLG) and Loungers PLC (AIM:LGRS) shares were in demand on Thursday morning after news broke of respective takeover bids for each.
Direct Line shot up 37.2% after it said on Wednesday evening that a £3.3 billion advance from Aviva PLC (LSE:AV.) had been rejected.
It had dubbed the bid “highly opportunistic” and argued it “substantially undervalued the company”... Read more
Loungers gained 28.4% in the meantime on news it had accepted a 310p per share bid from US private equity firm Fortress Investment Group, valuing the bar operator at £338 million… Read more
8.17am: Dr Martens soars despite swinging to loss
Dr Martens PLC (LSE:DOCS) jumped 14.2% as trading got underway on Thursday, despite unveiling a pre-tax loss and slump in sales for the first half.
Revenues declined 18% year-on-year to £325 million, in line with expectations, while a £29 million pre-tax loss was recorded, against last year’s £26 million profit.
Dr Martens also confirmed Ije Nwokorie would replace Kenny Wilson as chief executive in January, alongside laying out a plan to return its US business to growth... Read more
8.13am: FTSE 100 opens on front foot
London’s blue chip index kicked off the day in positive fashion, ticking up 13 points to 8,288 as trading got underway.
Tesco PLC (LSE:TSCO), J Sainsbury PLC (LSE:SBRY), Admiral PLC and Spirax Group PLC were among the early risers, while Imperial Brands PLC (LSE:IMB) led fallers at the open.
8.07am: Ocado eyes capacity boost as partner Morrisons reshuffles distribution
Ocado Group PLC (LSE:OCDO) has laid out plans to boost capacity through a deal with Morrisons.
Morrisons, a partner since 2013, will no longer take deliveries from its Erith distribution centre.
Morrisons will rather build volumes from Ocado’s Dordon distribution site and expand use of the grocery technology firm’s artificial intelligence-powered online network.
“As Ocado Retail moves towards full utilisation of existing capacity, this decision enables a helpful option to provide it with further short-term growth, without an expectation for additional capex,” Ocado chief executive Tim Steiner commented in a statement... Read more
7.46am: THG firms up Ingenuity demerger plan
THG PLC (LSE:THG) has told investors of plans for the demerger of its Ingenuity digital and logistics arm.
Ingenuity would be separated into a private company under the move, leaving THG’s core business comprising of its beauty and nutrition wings, a statement said on Thursday.
“It is expected that [the remaining business] would be capable of optimising returns to its shareholders instead of reinvesting profits and cash flow into Ingenuity’s technology capital expenditure requirements,” THG said... Read more
7.19am: UK car production slumps
The number of cars produced in the UK last month dropped by 15.3% year on year as manufacturers grappled with requirements to make up sales with electrics.
Some 77,484 cars rolled off production lines in October, 14,037 fewer than the same month last year, according to the Society of Motor Manufacturers and Traders (SMMT).
Export volumes dropped 17.6%, while the number of cars built for domestic use fell 4.7%.
Car makers are required to make up 22% of sales with electric vehicles this year, but have heavily criticised the mandate given lacklustre demand.
“These are deeply concerning times for the automotive industry, with massive investments in plants and new zero-emission products under intense pressure,” SMMT boss Mike Hawes said.
“Slowdowns in the global market - especially for EVs - are impacting production output, with the situation in the UK particularly acute given we have arguably the toughest targets and most accelerated timeline but without the consumer incentives necessary to drive demand.”
7.11am: Stocks seen higher
Futures had the FTSE 100 edging up by nine points to 8,303 ahead of Thursday’s open and building on a 16-point gain on Wednesday.
Following a calm day of trading, Thursday was set to bring another quieter day, with Dr Martens among the few big names reporting.
Overnight, Asian markets were mixed as Chinese stocks fell and Japan’s Nikkei saw the largest gain. Wall Street had faced declines beforehand.
Back in London, attention was on car production data from the Society of Motor Manufacturers and Traders, which showed an eighth successive monthly drop.
5.00am: Dr Martens' results in focus
Thursday brings a quieter schedule on the company front, with Dr Martens' interim results set to be in focus.
Dr Martens is expected to have fallen into loss-making territory... Read more
US stock markets will be closed as traders are given a Thanksgiving holiday, which will reduce market trading volumes in Europe too.
Announcements due:
Interims: Foresight Group Holdings Ltd, Theracryf PLC, TPXimpact Holdings PLC (AIM:TPX), Dr Martens PLC (LSE:DOCS)
Finals: Impax Asset Management Group
AGMs: Argent BioPharma Ltd, Castillo Copper Ltd, EnSilica PLC, Galliford Try Holdings PLC, London Finance & Investment Group PLC, SLF Realisation Fund Limited, Thor Energy PLC, Zentra Group
FTSE 100 ex-dividends to reduce index by: 13.5
Economic announcements: Car Production (UK), Economic Sentiment (EU), Consumer Confidence (EU), Consumer Inflation Expectations (EU), Industrial Sentiment (EU)