- FTSE 100 slips 29 points
- Royal Mail takeover approved
- Bitcoin hits another record
4.00pm: FTSE 100 heads lower as Entain slumps
London’s blue chips were on course to decline on Monday as the FTSE 100 headed into late trading down 29 points at 8,271.
Entain PLC (LSE:ENT) remained the day’s biggest loser, down 6.9% after Australia’s financial crime regulator unveiled civil proceedings against the betting firm over anti-money laundering and counter-terrorism financing laws.
Centrica PLC (LSE:CNA) followed with a 3.1% drop on confirmation its chair Scott Wheway would step down and be replaced by Kevin O'Byrne.
Persimmon PLC (LSE:PSN) also lead housebuilders down following reports the government could hit developers with taxes over missed deadlines in a bid to meet building targets.
BP PLC (LSE:BP.), Endeavour Mining PLC (LSE:EDV, TSX:EDV, OTCQX:EDVMF) and Croda International PLC (LSE:CRDA) were also among the fallers late on Monday.
Rolls-Royce Holdings PLC (LSE:RR.) headed risers in the meantime in the absence of any major positive movers, rising by just under 2%.
3I Group PLC, Bunzl PLC (LSE:BNZL) and British Airways owner International Consolidated Airlines Group SA (LSE:IAG) also racked up gains.
3.33pm: Hiring slowdown and price hikes to ‘concern’ Bank of England
News hiring across the private sector slumped at the fastest rate in almost four years this month will likely raise eyebrows among the Bank of England’s Monetary Policy Committee.
S&P Global’s flash UK PMI reading for December on Monday showed staffing numbers faced the steepest decline since January 2021, largely as firms put off replacing departed workers in response to growing costs after October’s Budget... Read more
The data also pointed to a renewed upward shift in inflation too, S&P pointed out, as economic growth looked to be stagnating.
Pantheon Macro analysts noted the data showed firms were preparing to absorb the Budget’s national insurance hike by cutting hiring, but also through price increases.
“The latter will be a particular concern to the MPC who had assumed most of the extra costs would be absorbed in weaker than otherwise nominal pay rather than being passed through into retail prices,” analysts said.
The Bank of England is due to make its latest decision on interest this Thursday, after reducing the bank rate to 4.75% in November.
2.54pm: Canal+ tumbles in London debut
Canal++ faced a tough debut in London on Monday, as shares fell over 17% in the wake of its initial public offering (IPO).
Shares in the French TV and film company began trading at 290p but had fallen 17.8% to 238.5p come Monday afternoon.
“IPOs are often hit with volatility during the first few hours, days and even weeks of trading,” Hargreaves Lansdown analyst Susannah Streeter explained.
“The choice of London as a destination for the spin off company is still a boost for the City, especially given that the decision was made due to London’s appeal among international investors.”
2.47pm: US stocks gain at open
Wall Street enjoyed a positive start to the week on Monday morning as stocks picked up early on.
The Nasdaq gained 0.5% after the opening bell, while the S&P 500 climbed 0.2% and the Dow Jones moved just above the mark.
Broadcom Inc (NASDAQ:AVGO, ETR:1YD) led the early risers as the chipmaker rallied once more by 5.7% on ongoing excitement around last Thursday’s record-breaking results.
These were driven by surging artificial intelligence demand, with further gains coming after shares hit a record late last week in the wake of the update.
Moderna Inc (NASDAQ:MRNA, ETR:0QF) also jumped by 5.4% early on, as Micron Technology Inc (NASDAQ:MU) and Applovin Corp also racked up gains.
1.36pm: Lycamobile signals 90% of UK staff could be cut
Lycamobile is reportedly gearing up to axe almost 90% of its staff in the UK.
Some 316 staff risked being laid off as a result, according to a Guardian report, leaving just 48 in the UK.
Staff at the telecoms firm’s London headquarters were told of “pretty serious challenges” on Friday, with reductions set to wait until after January 31.
General counsel David Dobbie cited competition, inflation and legacy technology issues in his address to staff, the Guardian reported.
Inefficiencies around overlapping divisions in the UK and India were also said to be highlighted, with Dobbie adding some services would be moved offshore... Read more
1.06pm: NatWest retail banking head to depart
NatWest Group PLC (LSE:NWG)’s retail banking chief executive is reportedly set to step down early next year as the lender readies itself for a return to full private ownership.
According to Sky News, David Lindberg will depart in the first quarter of 2025 after four years at the helm of the division, which has 13,000 staff and 17 million customers.
Lindberg was reportedly in the running to succeed Alison Rose as chief executive of the bank before Paul Thwaite’s appointment earlier this year.
Public ownership in NatWest fell below 10% last week as the Treasury continued to sell down its stake, taken after a bailout in the midst of the global financial crisis.
Shares were up 0.2% at 406.4p on Monday.
12.52pm: Entain leads decline as housebuilders weigh on FTSE 100
Entain PLC (LSE:ENT) remained the day’s biggest loser on the FTSE 100 into Monday afternoon as the index fell 24 points to 8,275.
The betting firm shed 6.7% on news of civil proceedings from Australia’s financial crime regulator around anti-money laundering and counter-terrorism financing laws.
Housebuilders were also among the fallers after Rightmove reported a drop in new seller asking prices through December and on reports the government was considering levies to boost development under targets to build 1.5 million homes in the coming years.
According to a Telegraph weekend report, developers could face taxes for building too slowly and be denied planning permission if missing targets.
Persimmon PLC (LSE:PSN) fell 3.0% on Monday following the report, while Taylor Wimpey slipped alongside the likes of Berkeley Group PLC, Barratt Redrow PLC (LSE:BTRW) and Vistry Group PLC (LSE:VTY).
British Gas owner Centrica PLC (LSE:CNA) dropped 3.7% in the meantime after confirming Scott Wheway would depart as chair and be replaced by Kevin O'Byrne.
12.29pm: US stocks seen higher as interest rate call comes into focus
Wall Street appeared on course for a positive start to the week which will see the Federal Reserve decide whether to cut interest rates further.
Futures had the Nasdaq up 0.4% ahead of Monday’s open, while the S&P 500 and Dow Jones were seen 0.2% higher each respectively.
Last week had brought a mixed showing on Wall Street as the Nasdaq climbed but Dow Jones and S&P 500 both fell.
Attention this week turned to the Federal Reserve’s interest rate decision on Wednesday, with markets anticipating a 25 basis point cut.
However, “it may be wise to approach the [meeting] with some caution,” Tickmill Group partner Patrick Munnelly said.
“Since the November meeting, demand data from the US has been consistently strong, and there has been a notable increase in firms' expectations following the election.
“On the other hand, inflation data has been somewhat disappointing, indicating that the disinflation trend observed earlier in the year has stalled.”
12.17pm: Retail footfall tumbles in pre-Christmas blow
Retail footfall has tumbled in recent weeks as shops place hopes on a pre-Christmas rush to turn around fortunes.
According to Rendle Intelligence and Insights, average footfall across the UK retail sector fell by 3.1% year on year over the course of the past two weeks.
Shopping centres faced the steepest decline of 4.0%, while footfall on high streets fell by 3.8% and retail parks recorded a 1.2% drop.
Trading had ticked up over the first week of December, but Rendle chief executive Diane Wehrle noted the 7.5% increase in footfall followed a 9.1% drop over the previous week since November’s Black Friday.
“The subsequent two weeks trading since Black Friday seems to have been lacklustre at best,” she said.
“It means that footfall over the last two weeks has averaged [...] below the same weeks last year, which was recognised as a pretty disastrous Christmas trading period.”
12.04: Royal Mail takeover clears major hurdle, but key approvals still needed
Government approval for Daniel Kretinsky’s Royal Mail takeover on Monday reflected a major milestone for the £3.6 billion deal, though other approvals are needed.
Having faced a review under national security laws, the green light for the deal marked a key step for Kretinsky’s EP Group in bringing International Distribution Services PLC’s Royal Mail under foreign ownership for the first time in its 500-year history.
That said, government approval did not come lightly, with a comprehensive list of conditions needing to be met for the deal to go ahead as expected in early 2025... Read more
Kretinsky’s ultimate takeover was by no means set in stone though, AJ Bell’s Russ Mould pointed out, given shareholders, of which Kretinsky represented 27.5%, still needed to vote on the proposal.
Union approval was also needed for a deal over worker distributions, while Britain’s Competition and Markets Authority could also opt to investigate the takeover.
11.13am: Saga soars on confirmation of Ageas insurance deal
Saga PLC (LSE:SAGA)’s confirmation that it would sell its underwriting wing and launch a 20-year insurance partnership with Ageas saw shares erupt into life on Monday.
Shares surged 9.2% to 135p in the wake of the news Ageas would take on Saga’s price-comparison website, pricing, underwriting, claims and customer servicing activities.
AJ Bell analyst Russ Mould noted the move would allow Saga to focus on its successful travel and financing operations, but still benefit from the insurance business.
“While its travel and cruises divisions were the problem during the pandemic, more recently it is the insurance business which has struggled,” he said.
“In that context, putting it in the hands of an experienced operator, as well as receiving a useful injection of cash, has been well-received by the market.”
Ageas would pay £80 million upfront as part of the deal and also purchase Saga’s Acromas Insurance Company Ltd for up to £67.5 million, an announcement said.
In turn, Saga would receive commission from gross written premiums and further performance-based considerations of up to £30 million in each of 2026 and 2032.
10.44am: Government and Kretinsky welcome Royal Mail agreement
Business secretary Jonathan Reynolds and Daniel Kretinsky have both hailed their agreement for the latter to buy Royal Mail parent IDS.
News broke on Monday that the government had conditionally approved Kretinsky’s £3.6 billion bid for International Distributions Services PLC.
The government will get a “golden share” in Royal Mail to approve any major changes under Krentinksy’s EP Group, which will become the postal firm’s first-ever foreign owner.
“For too many years progress on securing a stable future at Royal Mail has stalled, but from day one we have been committed to providing a secure future for thousands of workers and customers,” Reynolds said.
“I’d like to thank EP Group and Daniel Kretinsky for their constructive approach to our discussions and their commitment to protecting this national icon.
“I look forward to working with them to fix the foundations and ensure Royal Mail continues to deliver for the communities and businesses who rely on it most.”
Kretinsky also welcomed “constructive negotiations” with the government which “resulted in unprecedented commitments and undertakings”.
“EP Group is a long term and committed investor with a mission to make Royal Mail a successful modern postal operator with high-quality service and products,” he said.
10.03am: Employment levels drop at fastest rate since Covid
British companies cut jobs at the fastest rate since the midsts of the Covid-19 pandemic this month, S&P Global reported on Monday.
Staffing numbers faced the steepest decline since January 2021 in November, S&P’s latest flash UK purchasing managing index (PMI) data showed.
This also marked the third successive month of declining employment levels, largely driven by workers leaving and not being replaced due to growing costs.
“Business confidence has sunk to a two-year low as companies weigh up a tougher outlook for sales alongside rising costs, notably for staff as a result of changes announced in the Budget,” S&P economist Chris Williamson commented.
“Firms are responding to the increase in national Insurance contributions and new regulations around staffing with a marked pull-back in hiring.”
S&P also highlighted indications that inflation was turning higher once more as growth stagnated across the UK economy.
Overall, the PMI reading was unchanged at 50.5 and remained just within growth territory, as service sector activity increased but manufacturing output declined.
“Businesses are reporting a triple whammy of gloomy news as 2024 comes to a close, with economic growth stalled, employment slumping and inflation back on the rise,” Williamson added.
9.47am: French stocks and bonds drop after Moody’s downgrade
French stocks and bonds came under pressure on Monday in the wake of a surprise downgrade by rating agency Moody’s.
The CAC 40 index shed 0.6% early on, while 10-year debt yields climbed by basis points to 3.05%.
Moody’s on Friday lowered its rating on French debt to Aa3 from Aa2 after a spat over Michel Barnier’s proposed budget saw his government collapse earlier in the month.
“Looking ahead, there is now very low probability that the next government will sustainably reduce the size of fiscal deficits beyond next year,” Moody’s said.
France’s public finances were predicted to “be materially weaker over the next three years” against previous estimates as a result.
9.34am: Bitcoin hits new all-time high
On today’s cryptocurrency markets, bitcoin (BTC) ran up a fresh all-time high of more than $106,000 in the early hours.
The BTC/USD pair climbed as high as $106,658 before sliding back below $105,000 at the time of writing.
Bitcoin, as the world’s largest cryptocurrency by market capitalisation, has been riding the waves of positive political and regulatory developments in the US.
Spot-bitcoin exchange-traded funds approved earlier in the year continue to see sizable inflows, while incoming US president Donald Trump has pledged to sign off a raft of pro-crypto policies when he takes office.
Bitcoin’s previous ATH was achieved less than two weeks earlier, when it surpassed $104,000 on 5 December.
Back to the stock markets, the FTSE 100 index is currently trading 16 points lower at 8,283.
9.07am: IDS chair hails Royal Mail takeover approval
International Distributions Services PLC non-executive chair Keith Williams has hailed government approval for Czech billionaire Daniel Kretinsky’s takeover of Royal Mail.
“The IDS Board welcomes the government’s endorsement and legal backing for the comprehensive package of undertakings and commitments we negotiated,” he said Monday.
“These provide our customers, colleagues, unions, regulators and broader stakeholders with safeguards for the provision of the universal service obligation, the ongoing financial stability of Royal Mail, the maintenance of colleague benefits, and Royal Mail’s broader role in the United Kingdom.
IDS on Monday said it had entered into legal undertakings with Kretinsky’s EP Group over the £3.6 billion deal and agreed measures with the government for approval.
“We welcome the government’s commitment today to secure a stable future for Royal Mail,” Williams added.
“This will not come from a change in ownership alone but must also be backed by urgent reform of the Universal Service and the continued transformation of this great British business.”
8.51am: Royal Mail takeover by Czech billionaire approved
International Distribution Services PLC (LSE:IDS)’s takeover by Czech billionaire Daniel Kretinsky has been approved by the government.
The Royal Mail owner on Monday announced it had entered into legal undertakings with Kretinsky’s EP Group over the £3.6 billion deal after consultations with the government.
This will see the postal service enter into foreign ownership for the first time after the government had reviewed the bid under national security laws.
Among conditions, the government will hold a so-called “golden share” allowing it to approve major changes around IDS’ ownership, headquarters and tax residency... Read more
8.24am: Entain tumbles on counter-terrorism financing charges in Australia
Entain PLC (LSE:ENT) dropped over 3% as trading got underway on Monday on news of civil proceedings from Australia’s anti-money laundering and counter-terrorist financing regulator.
The Australian Transaction Reports and Analysis Centre (AUSTRAC) is accusing the Ladbrokes and BetMGM owner of “systemic failures” in its approach to regulatory compliance.
Entain allegedly lacked the proper ability to identify and block criminals from using its various online gaming websites… Read more
Entain dropped 3.4% to 786.9p.
8.20am: House seller asking prices drop in line with Christmas slump
New house seller asking prices dropped in December as a usual slump in activity before Christmas weighed, Rightmove has reported.
On average, new sellers asked for 1.7%, or £6,395, less this month at £360,197 as attention turned to festivities.
Prices remained 1.4% higher than a year earlier though, with Rightmove forecasting a surge post-Christmas and over the course of next year.
“New sellers in December have to work particularly hard to capture the attention of Xmas-party and festivity-distracted buyers,” Rightmove property science director Tim Bannister said.
“We are now looking ahead to the traditional Rightmove Boxing Day bounce in home-mover activity, which has increasingly become a key date.”
Boxing Day last year saw a record number of sellers coming to market, Rightmove pointed out, as demand also surged.
Sales agreements were up 22% year on year, it added, leaving momentum ahead of the anticipated surge.
A further decline in mortgage rates and hurried buying ahead of a hike in stamp duty rates was set to boost prices into the 2025, with Rightmove forecasting a 4% increase over the year.
8.08am: FTSE 100 just above the mark
London’s blue chips edged higher as the week’s trading got underway, climbing just above the mark by two points to 8,303.
Entain PLC (LSE:ENT) led the early fallers, followed by Persimmon PLC (LSE:PSN) and Endeavour Mining PLC (LSE:EDV, TSX:EDV, OTCQX:EDVMF).
Bunzl PLC (LSE:BNZL) headed the rises in the meantime as a relatively quiet start saw a lack of any major movers.
8.03am: Card Factory (LSE:CARD) opts against new board members despite diversity unease
Card Factory (LSE:CARD) will not appoint new directors despite concerns over diversity within its board after June's annual general meeting.
Though all resolutions were passed, Card Factory (LSE:CARD) noted 20% of votes cast were against reappointing Moody during the meeting.
“The board understands, from prior shareholder feedback, that the diversity of the board may result in votes against the chair's reappointment,” Card Factory (LSE:CARD) said on Monday.
Women made up 33% of Card Factory (LSE:CARD)’s board currently, it added, below the 40% recommended under listing rules.
“The board recognise the diversity of its membership, across a range of criteria and does not consider it to be in the interests of shareholders to recruit an additional director solely to achieve the [...] recommendation”... Read more
7.35am: Saga sells underwriting business to Ageas in insurance partnership
Saga PLC (LSE:SAGA) has confirmed a partnership with Ageas which will also involve the sale of its underwriting business.
Ageas will operate Saga’s home and motor insurance products under the 20-year deal and pay £80 million upfront, a statement confirmed on Tuesday.
Further performance-based considerations of up to £30 million will also be paid in each of 2026 and 2032.
Ageas will additionally buy Saga’s underwriting subsidiary, Acromas Insurance Company Ltd, for up to £67.5 million, in line with an announcement in October... Read more
7.12am: FTSE 100 seen lower
London’s blue-chip index was seen kicking off the week on the back foot, after an 8-point drop seen over the course of last week.
Futures had the FTSE 100 down a further seven points at 8,331 ahead of Monday’s opening bell.
Overnight, Asian markets were largely in the red, with China’s Shenzhen down 1.3% and leading the drop.
Ahead, there’s no danger of a quiet few days ahead of the Christmas break as UK inflation figures, US gross domestic product data and interest rate calls on each side of the Atlantic all get released this week.
In terms of companies, key events will include Ofwat’s price control decision for the water sector and a key vote in Boohoo Group PLC (AIM:BOO)'s boardroom showdown with Frasers Group PLC (LSE:FRAS).
5.00am: Monday's schedule
A busy week ahead is set to feature UK inflation, US GDP and interest rate calls on both sides of the Atlantic.
Announcements due on Monday:
Trading updates: Videndum PLC
AGMs: ADVFN, Alien Metals, Allergy Therapeutics, APQ Global, Helium One Global, T42 Lot Tracking Solutions, Tristel PLC