- FTSE 100 down 24 points
- B&M sinks after profit warning
- Chemring, Wood emerge as takeover targets
4.04pm: FTSE 100 deeper in red late on
London’s blue-chip index moved further into the red as the day’s close drew closer, with the FTSE 100 off 24 points at 8,634 come late trading.
Entain PLC was among a string of firms under pressure late on, alongside the likes of miners as Endeavour Mining PLC, Antofagasta PLC and Fresnillo also fell.
Centrica PLC continued to head the risers in the meantime, up 3.8% following a share price target upgrade by Jefferies, while BAE Systems PLC remained higher on a wider rally among defence stocks following conservative victory in the German election.
Among mid-caps, Wood Group PLC was well ahead of the risers, surging 36.4% after confirming a fresh takeover approach by Dubai-based Sidara.
Chemring PLC, which also emerged at the centre of takeover talk, this time from Bain, jumped 6.7%.
The wider FTSE 350 faced pressure though, dropping 17 points to 4,726, as the AIM all-share also declined.
Hemogenyx Pharmaceuticals PLC remained among the day’s risers, racking up an 10.6% gain after unveiling the first-in-human trial of its CAR-T therapy… Read more
Technology Minerals PLC skyrocketed 23.8% meanwhile, following news part-owned Recyclus would soon start black mass shipments to Glencore… Read more
2.40pm: Nasdaq gains in better start for Wall Street after tariff fear hammering
Wall Street was in brighter spirits as the new trading week got underway, with stocks partially regaining after coming under pressure on fears around tariffs last week.
The Nasdaq added 0.3% at the open, while the S&P 500 also gained 0.3% and the Dow Jones ticked up 0.2%.
Each had succumbed to heavy selling last Friday as concerns around renewed inflationary pressure and lower growth on the back of Donald Trump’s tariffs weighed.
Though inflation is set to remain in the spotlight this week ahead of Friday’s personal consumption expenditures figures, Nvidia Corp earnings on Wednesday also loom.
Shares in the chip-making giant got off to a positive start to the week, ticking up 1.9% to place it behind Nike Inc among the Dow’s biggest risers.
Nike, having been granted an upgrade to a ‘buy’ rating by Jefferies, surged 4.2% early on.
Elsewhere, Domino’s Pizza Inc shed 5.0% after underwhelming with fourth-quarter figures, while Palantir Technologies Inc and PDD Holdings Inc were also among those lower.
1.49pm: Chemring adds 13% as defence firm reportedly at centre of private equity bid
Chemring Group PLC had reportedly emerged as a takeover target of Bain Capital, sending shares in the FTSE 250 defence firm up 13%.
Private equity firm Bain had tabled at least one proposal to acquire Chemring in recent weeks, according to Sky News.
This “may” have included a 390p per share offer initially, Sky said, equating to a 9% premium on Friday’s closing price.
A second offer was said to have been under preparation, Sky added, though it was unclear whether this had been submitted.
Chemring joins a string of London-listed companies in being targeted in recent years, with BP PLC and ITV PLC among others at the centre of speculation recently.
Shares jumped 13.7% to 407p on Monday.
1.00pm: Centrica surges but FTSE 100 heads into red
London’s blue chips gave up a gain to head lower into Monday afternoon, with the FTSE 100 dropping to sit just below the mark at 8,659.
Centrica PLC heeded the risers, as Jefferies analysts weighed in on last week’s full-year results with a reiterated ‘buy’ rating and share price target upgrade to 180p.
The British Gas owner gained 4.7% to reach 151.93p as a result, placing it ahead of BAE Systems PLC among Monday’s risers as defence stocks rallied.
At the other end, Entain PLC led the fallers with a 3.4% drop, as the likes of Antofagasta PLC and Intercontinental Hotels Group PLC also dropped.
Subdued spirits spread across London, with the FTSE 250, 350 and AIM all-share all down come the afternoon.
Among other risers, Technology Minerals PLC held onto a 14.3% gain after part-owned Recyclus bagged approval to sell black mass to Glencore… Read more
Deliveroo PLC surged 7.4% following Prosus' announcement of a €4.1 billion deal to buy rival Just Eat Takeaway.com NV.
Hemogenyx Pharmaceuticals PLC was up 10.2% meanwhile, on news it had administered the first human dose of its experimental CAR-T cell therapy… Read more
12.08pm: Dow Jones to rebound as Wall Street heads for better start
Wall Street appeared on course for a better start to the new week, after Friday saw lingering fears around the impact of Donald Trump’s tariffs hammer stocks.
Futures showed the Dow Jones up 0.8% ahead of the opening bell, after the index gave up 1.7% in the final trading day of last week.
The S&P 500 and Nasdaq were seen 0.6% and 0.5% higher in the meantime, having each also come under pressure late last week.
Having hung over Wall Street last week, Scope Markets analyst Joshua Mahony noted inflation was set to remain top of the agenda over the coming days.
“Tariff fears appear to be playing a role in driving up goods inflation before they are even implemented,” he said.
Friday will bring core personal consumption expenditures and the Federal Reserve’s preferred measure of inflation, after central bankers signalled caution over interest rate cuts ahead in response to tariff talk.
11.22pm: B&M off 9% on profit warning, boss exit
B&M European Value Retail SA shares dropped over 8% on Monday after its profit warning and announcement of chief executive Alex Russo's departure.
Tough trading, economic uncertainty and exchange rate volatility were attributed for the downgrade in earnings guidance to £605 million and £625 million for the year.
This was flagged at the same time as news of Russo’s departure, prompting Panmure Liberum analysts to note the two were unlikely “mutually exclusive events”.
B&M’s performance had been disappointing for the past year, analysts said, as a ‘buy’ rating was reiterated but its share price target cut from 630p to 600p.
Peel Hunt analysts added Russo’s retirement would leave a “significant gap” at the retailer.
“During his tenure, he has been instrumental in significantly upgrading store standards.”
A ‘buy’ rating was also held by Peel Hunt though, alongside a 600p share price target, given a “lowly” valuation and “faith in the quality and growth potential of the business”.
Shares dropped 9.4% to 263.70p, placing B&M well ahead of the mid-cap fallers.
The FTSE 100 remained four points higher at 8,663 in the meantime.
10.35am: BAE's long-term focus to shield from major defence budget changes - analysts
Analysts have said BAE Systems PLC should largely be shielded from any shifts in US defence spending but is would unlikely see major benefits initially from higher budgets in Europe.
Both Shore Cap and Citi analysts pointed to BAE’s long-term focus in notes, as looming US efforts toward efficiency prompt speculation of hiked security spending in Europe.
“Abrupt changes” for BAE appeared unlikely given most sales were long cycle, Citi said, citing discussions with company president Tom Arsenault.
Only around 25% of its US sales were directly linked to the government, Citi added.
Margins should be largely protected in any case of US Department of Government Efficiency-related cuts as a result, according to the bank.
However, its long-tailed cycle meant any corresponding uptick in European defence spending would take time to seep through to BAE, Shore Cap added.
“We view BAE as a strong business with predictable revenue streams,” analysts said, noting BAE should indeed eventually benefit from higher European budgets.
Shore also noted BAE’s full-year figures last week had matched expectations, leaving it with a ‘hold’ rating and 1,300p fair value target.
Shares were up 2.9% at 1,292p on Monday.
9.41am: Hiring hits weakest level since mid-pandemic
Britain’s job market faced its weakest start to the year since January 2021 last month as firms appeared to place hiring on hold ahead of looming Budget tax increases.
According to vacancies website Adzuna, around 828,500 jobs were being advertised in January, marking a 1.9% fall from December and 4.5% drop on a year earlier.
Hiring slowed down across most sectors, the figures showed, with retail industry vacancies tumbling 42% year on year.
Higher employer national insurance, announced in last October’s Budget, and hiked wages are expected to leave the latter among the hardest-hit sectors.
Britain’s pubs, restaurants and hotels have been among those said to be preparing to cut jobs ahead of the looming cost increases.
“At a time when hospitality has been one of the top contributors to economic growth, the last thing the government should be doing is piling on costs that will impact employment and cut off our ability to grow,” The British Beer and Pub Association, the British Institute of Innkeeping, Hospitality Ulster and UKHospitality said in a statement.
9.10am: BAE up as defence stocks boosted after German election
Defence stocks have gained a boost in the wake of Germany’s election and victory for conservative Friedrich Merz.
Merz pledged “independence” from the United States in the wake of his win, adding to speculation that security spending could be ramped on the continent.
BAE Systems PLC was among risers in London as a result, gaining 2.1%, while Germany’s Rheinmetall AG surged 3.8%.
Rolls-Royce Holdings PLC, Leonardo and Thales SA were also among those in the green, having enjoyed a rally a week ago on speculation of growing defence spending.
Merz has been left needing to form a coalition government after the election, which Deutsche Bank analysts noted would most likely feature Olaf Scholz’s SPD.
“The most immediate issues in the coalition talks will be immigration as well as defence,” Deutsche said.
“In our view, Europe's challenged security architecture makes it highly likely for CDU/CSU and SPD to agree on higher defence spending in principle.”
In London, the FTSE 100 remained on the front foot, up eight points at 8,668.
8.30am: FTSE 100 up as European stocks mixed after German election
London’s blue chips racked up a gain while European stocks got off to a mixed start as the week’s trading got underway after the German election.
The FTSE 100 added 17 points to sit at 8,677 early on, following Germany’s DAX higher after Friedrich Merz’s conservatives emerged victorious in the weekend’s election.
France’s CAC index was among those to drop though, as traders weighed the result which will leave Merz having to form a coalition government.
In London, Centrica PLC headed the FTSE 100’s early risers, gaining 3.1% ahead of the likes of BAE Systems PLC and GSK PLC.
B&M European Value Retail SA dropped 5.1% to head the mid-cap fallers in the meantime, after warning on profit and announcing its chief executive’s departure.
Mid caps gained overall, with the FTSE 350 up seven points at 4,751, while the junior market faced a more muted start as the AIM all-share just slipped early on.
Hemogenyx Pharmaceuticals PLC was among bright spots in London, gaining 13.4% after administering the first-ever dose of its experimental CAR-T cell therapy for acute myeloid leukaemia… Read more
Technology Minerals PLC was another, surging 23.4% following news 48.35%-owned Recyclus had secured a licence allowing black mass shipments to Glencore to begin… Read more
8.09am: Just Eat agrees to €4.1 billion takeover
Just Eat Takeaway.com is set to be taken private after agreeing a €4.1 billion (£3.4 billion) takeover by investment firm Prosus.
Amsterdam-based Prosus had offered €20.30 per share, reflecting a 22% premium to the food delivery firm’s latest three-month high, it said on Monday.
The takeover, which was said to have drawn unanimous support from Just Eat’s board, would see Prosus create the world’s fourth-largest delivery group, the firm added.
“Prosus already has an extensive food delivery portfolio outside of Europe,” Prosus chief executive Fabricio Bloisi commented.
“We believe that combining Prosus’s strong technical and investment capabilities with Just Eat Takeaway.com’s leading brand position in key European markets will create significant value for our customers, drivers, partners, and shareholders.”
Prosus had lost out to Takeaway.com in a bidding war for Just Eat in 2020, before pandemic-fuelled demand sent shares in the delivery firm surging.
Just Eat was hit with challenges as lockdowns ended though, and left the London Stock Exchange in favour of its Amsterdam listing last December as part of cost-cutting.
7.46am: B&M signals lower profit and chief executive's departure
B&M European Value Retail SA has lowered its profit expectations for this year upon announcing chief executive Alex Russo’s departure.
Adjusted pre-tax earnings were now guided to sit between £605 million and £625 million for its 2025 financial year, a statement said, against £620 million to £650 million previously.
Chief executive Russo would also retire on April 30, the statement added, after having taken the helm in 2022.
B&M noted lower profit would reflect “the current trading performance of the business, an uncertain economic outlook and the potential impact of exchange rate volatility”.
A recruitment process to replace Russo was in the “advanced stages,” it added, with the outgoing chief executive still set to be eligible for an annual bonus.
"I have thoroughly enjoyed my time at B&M,” Russo commented, “the business has been successfully steered through the pandemic years and is now larger and stronger”.
7.31am: National Grid sells US renewables wing
National Grid PLC is set to sell its US onshore renewable energy division for US$1.7 billion (£1.3 billion).
Brookfield Asset Management had agreed to buy the business, which develops and operates solar, onshore wind and battery storage projects, a statement said on Monday.
This had 1.8 gigawatts worth of capacity in operation and a further 1.3 gigawatts under construction, the statement added.
National Grid noted the sale was part of a wider strategy to shift focus to its network business and to streamline operations.
An enterprise value of US$1.7 billion had been agreed, with a final cash consideration yet to be determined ahead of the sale in the first half of the year to March 2026.
7.16am: FTSE 100 set to jump
London’s blue chips were in line for a boost on Monday as stocks across Europe headed for gains following the German election.
Friedrich Merz and the conservatives won the election, though were left needing to form a coalition government after racking up around 20% of votes.
“The kneejerk reaction is a swift rebound of the euro and the equity futures on hope of higher spending by the new German government would tackle the economic weakness of past years,” City Index analyst Ipek Ozkardeskaya commented.
Indeed, the euro was up 0.51% at US$1.0514 early on Monday, with the FTSE 100 on course to follow stocks across the continent in gaining.
Overnight, Asian stocks faced a mixed showing after a negative end to last week for Wall Street on lingering tariff fears, with the Dow Jones having dropped 1.7% on Friday.
5.00am: Monday's schedule
A busy week of earnings from the likes of Rolls-Royce, Nvidia, Aviva and British Airways looms... Read more
Announcements due:
Interims: Kosmos Energy Ltd, Tristel PLC
Finals: Georgia Capital PLC, ME Group International PLC
US earnings: Riot Platforms, Zoom Communications
AGMs: Aseana Properties Ltd, Gooch & Housego PLC, Schroder UK Mid Cap Fund PLC, Triple Point Energy Transition PLC, Virgin Wines UK PLC
Economic announcements: Inflation (EU)