CLOSER
Rolls Royce (LON:RR.) and ITV (LON:ITV) were among the big name risers as Britain's blue chips closed higher on Friday.
The UK benchmark closed out the week around 27 points higher at 6,696.
ITV shares added 3.35% to 280.7p as it emerged its biggest shareholder Liberty Global has hiked its stake in the television broadcaster to around 9.9% and broker Liberum reckons the rumours of a takeover are inevitable.
“Liberty has stated it does not intend to make a bid for ITV but its move suggests that it thinks a move by another player is likely or, at least, an increasing possibility” the broker said.
Liberty, owned by American investor John Malone, last year bought its initial stake of 6.4%.
Engineer Rolls saw shares add almost 6% to 794p as American activist investor ValueAct became the largest shareholder after taking a stake.
Also on investor radar was a clutch of data, including US wages stats showing salaries rose in the second quarter at the slowest pace on record and positive July manufacturing data.
Elsewhere, German retail sales rose 5.1% last month (June), beating expectations for a 4% increase.
On Footsie, cruise ship operator Carnival (LON: CCL) was a notable riser, adding 5.21% to 3,552p - riding on the good second quarter results news from its peer Royal Caribbean.
The biggest laggard on FTSE100 was Lloyds (LON:LLOY), which shed 3.28% to 83.2p, as it set aside an extra £1.4bn for PPI mis-selling as it missed profit expectations in the first half of the year.
Interim profits rose 38% to £1.2bn compared to expectations of £1.9bn, while revenue slipped back 2% compared to the previous quarter at £4.6bn.
In small cap world, a standout riser was ServicePower Technologies’ (LON:SVR) chairman, which gained 20.59% to 5.125p, as he bought himself another £90,000 worth of shares.
The non-executive director bought 2mln shares at 4.5p.
Meanwhile, Oxford Pharmascience (LON:OXP) said results of its OXPzero Naproxen (OXP005) were not as some had expected, with the company saying further testing will be needed to improve the results. Shares dropped 16.67% to 15p.
Anglesey Mining (LON:AYM) shares shed over 43% to 1.13p as it posted its annual report. The firm said the long term outlook for lead and zinc remains favourable, but it is a difficult time for the junior resource sector.
Proxama (LON:PROX) rose 9.09% to 0.12p as it has added the Standard Bank of South Africa to its client list after striking a deal with its subsidiary Diners Club to provide payment management systems.
Enegi Oil (LON:ENEG) rose 11.11% to 0.075p as it told investors that engineering group Arup has been signed up to the marginal field consortium.
Together the consortium is exploring new approaches to better develop offshore oil fields which under traditional development scenarios are deemed marginally economic.
US OPEN
US stocks were mixed at the open but the trend was downwards as traders digested disappointing wages stats stateside.
Wages and salaries in the US rose in the second quarter at the slowest pace on record, it emerged.
The second quarter figures for wages and salaries showed the smallest rise since the record began in 1982 and add to the case for the Federal Reserve delaying an interest rate rise.
The Central bank has targeted inflation of 2% as a goal.
Investors are also mulling the recent two day Fed policy meeting, which appeared to keep the door open for a September rate hike, but then December could also be in the frame.
The benchmark Dow Jones was down 20 points at 17,726 at the time of writing, while the tech heavy Nasdaq added nine at 5,138, while the S&P500 was up just one point at 2,109.
In corporate news, big oil came into view, with Exxon Mobil delivered quarterly earnings that missed analysts' expectations - shares in New York fell over 4.5%.
The company reported a 52% drop in its second-quarter profit as it was hit with the tumbling crude prices.
Lunchtime Report
Television broadcaster ITV (LON:ITV) led the risers on a flat day on London’s main market.
Liberty Global has hiked its stake in the television broadcaster and Liberum reckons the rumours of a takeover are inevitable.
The move, which Liberty called “opportunistic,” makes it the largest shareholder in ITV.
“Liberty has stated it does not intend to make a bid for ITV but its move suggests that it thinks a move by another player is likely or, at least, an increasing possibility” the broker said.
Liberty, owned by American investor John Malone, last year bought its initial stake of 6.4%.
Shares rose 2.3% to just shy of 278p.
The company couldn’t drag the FTSE 100 higher, which was down 7.5 points to 6,661.
“With Chinese shares seeing their worst month in 6 years, it’s hardly surprising that investors aren’t keen to hold onto their commodity shares going into August” Connor Campbell at Spreadex said.
Meanwhile, widening losses in the commodity sector has created its usual drag on the index today.
Antofagasta (LON:ANTO) nestled at the bottom of the index as it said it will take a 50% stake in Barrick Gold’s Chile copper mine.
It will cost the miner US$1bn, almost half of its cash balance, for the stake in the Zaldivar copper mine. Shares dropped 4.4% to 555p.
Away from the index, specialist packaging and cigarette filter supplier Essentra (LON:ESNT) said pre-tax profit fell in the first half of 2015.
Revenue surged but it wasn’t enough and shares dropped 7.5% to 887p.
Conversely, JD Sports (LON:JD.) revealed that it expects pre-tax profits to come in 10% higher than the £110mln forecast by market analysts. Shares jumped 8.1% to 807p.
In small caps, ServicePower Technologies’ (LON:SVR) chairman has bought himself another £100,000 worth of shares.
The non-executive director bought 2mln shares at 4.5p each and they were up today, climbing 15% to 4.9p.
Meanwhile, Oxford Pharmascience (LON:OXP) said results of its OXPzero Naproxen (OXP005) were not as some had expected, with the company saying further testing will be needed to improve the results. Shares dropped 21% to 7.1p.
MOST FOLLOWED
Journalists had almost become accustomed to not typing the word 'Greece' out several hundred times a day, but fingers were back in action today as the debt saga took another turn.
The £60bn bailout, initially agreed a few weeks ago, is looking a little more shaky after the IMF (international monetary fund) has announced it will not chip in its cash to help the debt-ridden country unless terms are set in stone.
Of particular concern are the issues of debt relief and economic reforms, it emerged.
It was one of a number of financial stories hitting the web as the week closed.
Another centred on search engine giant Google and the so-called "right to be forgotten".
It faces possible fines after it said it vwill defy a French ruling that the right should be extended globally and not just in Europe.
A ruling last year means Europeans can apply to have data removed and more than 1mln requests have been actioned but it does not remove it from Google.com.
As FTSE100 eased lower, also piquing surfer hits and chat on bulletin boards was news from banking titan Lloyds (LON:LLOY).
It has set aside an extra £1.4bn for PPI mis-selling and hinted at a special return to shareholders as it missed profit expectations in the first half of the year.
The part taxpayer-owned bank also said it will also pay a dividend of 0.875p per share, costing a total £535mln. Lloyds shares were down over 2.38% on the day and it was one of the most actively traded stocks.
Also gaining traction was ServicePower (LON:SVR), whose shares added almost 15% as its chairman Hugh Fitzwilliam-Lay, splashed out increasing his stake in the mobile workforce management software company.
The non-executive director bought 2mln shares at 4.5p each, lifting his holding to 9.45mln shares, equivalent to 4.2% of the total capital.
London Open
London’s blue chip stocks nudged higher this morning despite more falls in China.
Overnight, the Shanghai Composite was 26 points lower at 3,680 making it the biggest monthly loss since 2009.
In the US, the Dow Jones average and the S&P 500 were little changed, but the Nasdaq Composite shuffled 17 points higher to 5,129, as traders found themselves underwhelmed by US GDP data.
In Europe, the International Monetary Fund (IMF) said it won’t participate in a Greek bailout that doesn’t contain an ‘explicit and concrete agreement’ on debt relief.
Connor Campbell at Spreadex said: “Whilst the last month has seen the calls for debt relief gain momentum, this is the first stance on the issue that could ignite real change.
“Wolfgang Schauble both wants the IMF to be part of the deal AND is the biggest obstacle to debt relief, leaving the chance for plenty of Greek fireworks before the tentative August 20th deadline.”
In London, the FTSE 100 was 6 points higher to 6,674 led by ITV (LON:ITV).
Liberty Global has hiked its stake in the television broadcaster and Liberum reckons the rumours of a takeover are inevitable.
“Liberty has stated it does not intend to make a bid for ITV but its move suggests that it thinks a move by another player is likely or, at least, an increasing possibility” the broker said. Shares rose 1.8% to 276p.
At the other end of the index, banking giant Lloyds (LON:LLOY) struggled on the news that it is to set aside another £1.4bn for PPI payouts.
The partly taxpayer owned bank also missed expectations. Profit increased to £1.2bn but analysts had expected a rise to around £1.9bn. Shares dropped 1.1% to 85p.
Away from the index, JD Sports (LON:JD.) revealed that it expects pre-tax profits to come in 10% higher than the £110mln forecast by market analysts. Shares jumped 8% to 806p.
In the world of small caps, Stride Gaming (LON:STR) bought InfiApps for US$39.2mln with US$21.2mln upfront and up to US$18mln extra ove3r the next two years dependant on earnings.
InfiApps made a profit of US$3.4mln in 2014, and Stride said the acquisition would immediately enhance its own earnings. Shares jumped 10.3% to 245p.
Meanwhile, ServicePower Technologies’ (LON:SVR) chairman has bought himself another £100,000 worth of shares.
The non-executive director bought 2mln shares at 4.5p each and they were up today, climbing 15% to 4.9p.
Meanwhile, Oxford Pharmascience (LON:OXP) said results of its OXPzero Naproxen (OXP005) were not as some had expected, with the company saying further testing will be needed to improve the results. Shares dropped 21% to 7.1p.
Market Preview
The party mood is set to continue, albeit in more muted fashion, in London this morning.
Spread betting quotes suggest the FTSE 100 will kick off around 10 points up from last night's close.
US markets were flat yesterday but Asian indices are on course to finish in the blue, offering some encouragement to traders. Japan's Nikkei 225 was 24 points higher at 20,547 in the last hour of trading, while in Hong Kong the Hang Seng was 90 points firmer at 24,588.
The Shanghai Composite was not playing ball, however, with the index off 26 points at 3,680.
In the US, the Dow Jones average and the S&P 500 were little changed, but the Nasdaq Composite shuffled 17 points higher to 5,129, as traders found themselves underwhelmed by US GDP data.
"The report ... confirmed the view set forth by Federal Reserve policy makers yesterday that the economy is 'nearly balanced': consumer consumption increased; the labour market (per claims data) remains tight; and gauges of inflation continue to lag,” said Christopher Vecchio, a currency analyst at DailyFX.
"Accordingly, we’re viewing today’s prints as not a sign that the Fed is step closer to raising rates in September,but it should keep the compass pointed in that direction and keep at least a Q4’15 rate hike on the table ,” he added.
On the home front, the deluge of results from heavy hitters eases off but it is still a busy day for a Friday.
State-controlled lender Lloyds (LON:LLOY) will issue a trading update, with shareholders hoping further provisions for past misdemeanours will either be absent or on a much smaller scale than in the past.
Also reporting are Footsie stalwarts IAG and BG Group.