- FTSE 100 up 46 points
- Miners, oil firms buoy index
- Boohoo, Frasers exchange blows
4.04pm: Antofagasta, miners lead rally after fresh China stimulus pledges
Mining shares buyoed the FTSE 100on Monday after Beijing vowed next year would bring further measures to prop up China’s flagging economy.
Antofagasta PLC (LSE:ANTO) climbed 5.5% in the wake of the commentary from China’s Politburo, with Glencore PLC (LSE:GLEN), Rio Tinto PLC and Anglo American PLC (LSE:AAL) also surging.
A Politburo meeting readout showed pledges from the government to stabilise the likes of the housing and stock markets over the year ahead.
“A more proactive fiscal policy and an appropriately loose monetary policy should be implemented, enhancing and refining the policy toolkit, strengthening extraordinary counter-cyclical adjustments,” it said.
ANZ’s senior China strategist Xing Zhaopeng noted the wording signalled “big” interest rate cuts and asset buying ahead.
Following a string of measures announced earlier this year, such cuts would mark a renewed effort by Beijing to breathe life into the likes of its crisis-hit property sector.
Elsewhere on the FTSE 100, heavyweight BP PLC (LSE:BP.) gained 5.2% in line with a rise in oil prices and news it would tie up its offshore wind business with Japan's Jera.
This was set to see BP's offshore projects finsihed by 2030 after it hit the brakes on new offshore wind in the summer as part of a wider shift back towards fossil fuels under chief executive Murray Auchincloss.
Overall, the FTSE 100 gained 46 points to reach 8,354.
3.28pm: Air India adds extra Rolls-Royce-powered jets in boosted order
Air India has expanded an order from Airbus Group (EPA:AIR) to include 100 additional jets, including widebody Rolls-Royce Holdings PLC (LSE:RR.)-powered A350s.
Tata Group-owned Air India on Monday unveiled the deal for 10 new A350s and 90 narrowbody A320 jets, adding to orders for 470 jets from Boeing Co (NYSE:BA, ETR:BCO) and Airbus penned last year.
“With India’s passenger growth outpacing the rest of the world, its significantly improving infrastructure and an aspirational young population increasingly going global, we see a clear case for Air India to expand its future fleet,” chair Natarajan Chandrasekaran said.
The additional orders meant Air India had purchased 350 aircraft from Airbus since 2023, including 40 A350s and 210 A320 family jets... Read more
2.44pm: Nasdaq, S&P 500 drop as Nvidia hit by China probe
Wall Street got off to a mixed start to the week on Monday as the S&P 500 and Nasdaq headed lower in early trading.
The Nasdaq dropped 0.2% as trading got underway, while the S&P 500 fell by 0.1% and the Dow Jones moved just above the mark.
Nvidia Corp was among those weighing early on, as shares in the chip-making giant dropped 2.9% on news of an anti-monopoly investigation by China.
Omnicom Group Inc (NYSE:OMC) fell by 6.1%, despite firming up plans to create an advertising powerhouse with revenue of almost $26 billion through the takeover of Interpublic Group.
Temu owner PDD Holdings Inc (NASDAQ:PDD) surged 11% in the meantime after fresh pledges from China for stimulus measures to prop up the world’s struggling second-largest economy.
1.56am: China probe into Nvidia a sign of things to come
China's investigation into Nvidia Corp is likely a sign of things to come after Washington's latest crackdown on its semiconductor sector, commentators say.
Nigel Green, head of investment firm deVere Group, noted the move marked the start of a potential "systematic strategy to retaliate against the US" after Washington recently imposed export restrictions on 140 Chinese firms.
"This isn’t just a regulatory issue; it’s a calculated geopolitical manoeuvre," he said.
"China is sending a strong message that it won’t hesitate to push back, and Nvidia’s targeting is a harbinger of more aggressive measures to come."
1.38pm: Nvidia drops as China launches probe
Nvidia Corp shares faced pressure in pre-market trading on Monday as news broke China would investigate the chip making giant over suspected anti-monopoly law violations.
Beijing unveiled the investigation days after US president Joe Biden’s administration launched its third crackdown on China’s semiconductor industry in as many years.
China’s State Administration for Market Regulation did not elaborate on the potential breaches, but said Nvidia was also suspected of violating commitments made in 2020 during its acquisition of Mellanox Technologies Ltd.
Nvidia had previously dominated China’s artificial intelligence chip market with a roughly 90% share, but has faced pressure on the back of Washington’s crackdowns.
The latest saw exports to 140 firms curbed, with this including chip equipment producers.
Shares in Nvidia slipped 2.3% to US$139.10 in pre-market trading.
1.15pm: Gold regains after November saw first ETF outflows in six months
Gold ETFs faced their first outflows in six months in November after a winning streak for the yellow metal saw it repeatedly set new records until a peak in October.
According to World Gold Council data, gold ETF assets under management fell by US$2.1 billion to US$274 billion throughout the month, marking the first drop since April.
The drop coincided with a fall in gold’s price from as high as US$2,792 an ounce in October as news of the likes of Donald Trump’s US election victory broke.
Gold on Monday enjoyed a 0.85% gain to hit US$2,656 and its highest level of December so far.
“This level has acted as resistance over the last couple of weeks as gold struggled to make upside progress,” Trade Nation analyst David Morrison commented.
“As far as the bulls are concerned, it’s ‘so far, so good’. But they have suffered a stack of disappointments since early November and Trump’s decisive election win. Can they put all that behind them now, and dare to push for a fresh record high?”
12.51pm: Storm Darragh sends gas prices tumbling as wind power spikes
Gas prices headed lower on Monday after Storm Darragh fuelled a surge in wind power over the course of the weekend.
UK natural gas stooped as low as 112.55p per therm on Monday morning to its cheapest in almost a month as strong winds during the storm reduced the need for fossil fuels.
Wind power accounted for as much as 66% of the UK’s energy output over the weekend, against gas’ 11% share at the same point on Sunday morning, according to Drax.
Come Monday, wind was generating 56% of the UK’s energy, compared to almost 9% from gas, the figures showed.
Storm Darragh had prompted a rare red weather warning for parts of Wales and the South West early on Saturday, with the fallout said to have left some 161,000 homes without power as of Sunday.
12.20pm: Nasdaq seen lower in mixed start on Wall Street
Wall Street was braced for a mixed start to the week, with futures pointing to a gain for the Dow Jones, but declines for the S&P 500 and Nasdaq.
Ahead of Monday’s opening bell, the Dow Jones was seen just above the mark, while the Nasdaq looked set to drop by 0.2% as the S&P 500 dipped 0.1%.
The Dow had fallen over the course of last week, including on Friday when non-farm payroll data showed the addition of 227,000 jobs across the US economy in November.
Despite beating expectations, markets upped bets on the Federal Reserve cutting interest rates later in the month, leaving attention on this Wednesday’s consumer price index reading.
“[This] should clinch the deal providing that there are no shocks to the consensus,” interactive investor analyst Richard Hunter said, with markets anticipating inflation at 2.7%.
11.49am: BP gains on deal to finish offshore wind farms
BP PLC (LSE:BP.) gained on Monday after unveiling a US$5.8 billion (£4.5 billion) deal with Japan’s Jera, which will see the oil giant’s paused offshore wind projects finished by the end of the decade.
BP and Jera will combine their offshore wind businesses into a new standalone venture, through which both will fund projects committed to before the end of 2030.
Initial focus will be placed on existing projects in Europe, Australia and Japan, with the tie-up set to form one of the world’s largest offshore wind developers.
BP had hit the brakes on its new offshore wind projects in the summer as part of a wider shift back towards fossil fuels under chief executive Murray Auchincloss.
Auchincloss noted the move would allow “a capital-light” model for shareholders in investing in renewable energy in a press release... Read more
BP climbed 3% to 388.95p on Monday.
11.09am: Oil ticks up as all eyes on Syria and Assad regime collapse
Oil prices edged upwards on Monday morning in the wake of Bashar al-Assad’s ousting as Syrian president over the weekend.
Benchmark Brent crude climbed just under 1% to US$71.84 a barrel over the course of the morning as eyes were fixed on the Middle East and another wave of uncertainty there.
A swift offensive culminated in Syrian rebels announcing on Sunday that they had overthrown Bashar al-Assad’s regime, ending a 50-year family dynasty.
“With everyone awaiting clarity over who and how the country will be run, we have seen a great degree of uncertainty as this pivotal region falls into new hands,” Scope Markets analyst Joshua Mahony commented.
“Crucially, the strategic geographical importance of the country means that we could see significant knock-on implications for the Iranian transport of weapons to Hezbollah, and Russian military presence in the region.
“Everyone will be watching closely for signs over whether this development will improve or worsen the ongoing conflicts in the region.”
Also buoying oil was commentary coming from China over fresh stimulus measures to boost its flagging economy next year.
FTSE 100 heavyweights BP PLC (LSE:BP.) and Shell PLC (LSE:SHEL, NYSE:SHEL) both gained on the back of oil’s rise, climbing by 2.2% and 1.1% respectively.
Overall, the index gained 20 points to reach 8,329.
10.46am: Frasers at two-year low as Boohoo spat weighs
Frasers Group PLC (LSE:FRAS) hit a two-year low on Monday as the Sports Direct owner’s bid to bag seats on Boohoo Group PLC (AIM:BOO)’s board took yet another turn.
Boohoo earlier in the day unveiled backing from proxy advisor Institutional Shareholder Services in urging shareholders to reject Frasers’ advance.
Frasers boss Mike Ashley subsequently lashed out at Boohoo in response, accusing its board in an open letter of “gross mismanagement”.
He wrote to Boohoo investors: “What has the board been doing to create such a catastrophic mess of your company, driving the share price down by 90% in five years?”... Read more
Frasers shares dipped 2.2% to 624p on Monday and to their lowest since late 2022.
9.55am: Domino's slides as Budget hit clouds franchise spat resolution
Domino's Pizza Group PLC sat among the biggest fallers on London’s main market after news a spat with franchise owners had been resolved was clouded by guidance around its Budget-related costs.
The pizza chain unveiled an agreement with franchise owners in a trading update on Monday following complaints that they were not receiving enough... Read more
It also noted higher labour costs in the wake of Budget tax increases would push up costs by an estimated £3 million annually from next year.
Shares fell 3.1% on the back of the update, placing Domino’s among the FTSE All-share’s biggest losers.
9.27am: Facebook cut 700 UK staff last year
Facebook shed over 700 employees in the UK as parent company Meta Platforms Inc (NASDAQ:META, ETR:FB2A, SWX:FB) carried out its first round of redundancies ever, accounts showed on Monday.
Staff were laid off at a cost of £79 million, with the cuts coming as 11,000 jobs were axed in a reversal of investments made during a pandemic-fuelled jump in demand.
Some 10% of Facebook’s UK staff were cut as a result, taking its total headcount in the country to 6,338, with sales support, administration and marketing teams most affected.
9.05am: Miners boosted on fresh China stimulus hopes
Miners helped to buoy the FTSE 100 early on Monday on speculation around fresh stimulus measures by China to boost its flagging economy.
An official readout from a key policy meeting showed China pledging “more proactive” fiscal measures and “moderately” looser monetary policy for next year.
Hopes for further measures to tackle issues within the world’s second-largest economy, including its property sector, follow a string of packages announced earlier in the year.
Antofagasta PLC (LSE:ANTO) led risers in London on Monday as a result, followed by Glencore PLC (LSE:GLEN), Rio Tinto PLC and Anglo American PLC (LSE:AAL).
Asia-focussed insurer Prudential PLC (LSE:PRU) also sat among the day’s winners on the news.
Overall, the FTSE 100 ticked up 22 points to 8,331.
8.51am: Brave Bison (AIM:BBSN) unveils £10.6mln sports marketing tie-up
Brave Bison (AIM:BBSN) Group PLC has announced a £10.6 million deal to buy sports marketing firm Engage Digital Partners Ltd.
Engage will help expand Brave Bison (AIM:BBSN) sports and entertainment division to generate £16 million in pro-former turnover, the digital advertising company said on Monday.
“Engage boast an enviable client roster including Formula 1, ICC and Real Madrid, and deep expertise in sports media and digital content strategy,” Brave Bison (AIM:BBSN) chair Oliver Green said.
“This combination comes at a time when rights holders and sports federations are looking to maximise their IP, boost fan engagement and really drive commercial performance using a more data-driven approach”... Read more
8.25am: FTSE 100 gains early on
London’s blue-chip index started the week off in positive fashion, gaining 22 points to reach 8,331 in early trading.
WPP PLC (LSE:WPP) led risers early on following reports sector peers Omnicom and Weber Shandwick were negotiating a $30 billion mega merger.
Miners also sat among gainers as trading got underway, while Frasers Group PLC (LSE:FRAS) topped the fallers in the wake of Boohoo Group PLC (AIM:BOO)’s latest plea to shareholders to reject its leadership challenge.
8.15am: Job vacancies drop at sharpest rate since pandemic
Demand for jobs waned as business confidence dropped last month, sending vacancies down by the sharpest rate since the pandemic.
KPMG and the Recruitment and Employment Confederation on Monday highlighted a “sharp and accelerated” drop in demand for staff through November.
Their permanent placement index, measuring whether businesses expanded or trimmed headcount, fell from 44.1 to 40.7 last month.
Vacancies faced the steepest drop since August 2020 as a result, as November also brought the 13th successive monthly decline for staff demand.
Accountancy BDO separately reported business confidence had fallen to its lowest level since January 2023 in November, while its output index entered contraction territory.
“Businesses are having to weigh up the prospect of increasing employee costs following the Budget, which has led to an accelerated slowdown in hiring activity across the board,” KPMG chief executive Jon Holt said.
He added the prospect of further rate cuts and government investment pledges could boost business confidence and help to stabilise the job market in the months ahead.
7.51am: Boohoo urges shareholders to reject Mike Ashley's leadership challenge again
Boohoo Group PLC (AIM:BOO) has urged shareholders to reject efforts by Mike Ashley’s Frasers Group PLC (LSE:FRAS) to secure seats on its board once again.
Having previously accused Ashley of an “ulterior motive”, Boohoo on Monday highlighted a recommendation from proxy advisor Institutional Shareholder Services that investors oppose Frasers’ move.
“ISS states that Frasers has offered a superficial view of performance and no specific plans for change,” Boohoo pointed out in a statement.
Boohoo added ISS had noted “the two Frasers candidates, Mike Ashley and Mike Lennon, have real conflicts of interest”.
Boohoo has been locked in a spat with its largest shareholder, Frasers, since launching a review earlier this year, which prompted speculation over a split of the business which includes Debenhams and PrettyLittleThings... Read more
7.20am: Stocks seen higher
Futures had the FTSE 100 just edging higher on Monday, by 2 points to 8,322.
London’s blue chips had racked up a 21-point gain over the course of last week, but ended Friday in losing fashion ahead of a busy week on the macroeconomic front.
Both UK gross domestic product and US inflation figures are due over the coming days as markets look to interest rate decisions by both the Federal Reserve and Bank of England later in the month.
Overnight, Asian markets were largely in the red, with South Korea’s Kospi down 2.8% on continued political uncertainty in the wake of last week’s brief martial law declaration.
5.00am: Monday's schedule
Monday is set to bring a quieter day on the reporting front, before US inflation and UK gross domestic product mark highlights in a busy week.
Announcements due:
US earnings: MongoDB Inc, Oracle Corporation
AGMs: Hemogenyx Pharmaceuticals PLC, International Biotechnology Trust PLC, Marwyn Value Investors, Plexus Holdings PLC, Softcat PLC
Economic announcements: Wholesales Inventories (US)