Yahoo Finance FTSE 100 Live 05 March: Bitcoin hits fresh record, Spirent to drop London listing in £1 billion deal
A blockbuster, £1 billion deal for telecoms testing firm Spirent is the standout news of the day, helping the FTSE 250 ring up overall gains even as the FTSE 100 drifts lower.
Heavily weighted resource stocks are a drag, on worries over the outlook for global economic growth. . Mixed news from the retail sector is drawing some big high-street names into the action. There are gains for Greggs as the bakery chain’s sales hot streak continues, but disappointing sector-wide numbers for February are taking a toll elsewhere.
Bitcoin hits fresh record
Tuesday 5 March 2024 15:18 , Simon Hunt
Bitcoin continued its weeks-long rally today, hitting a fresh record of $16,195 amid continued demand for US crypto ETFs and the specter of a reduction in its supply known as the halving.
The token has rocketed some 62% since the start of the year.
Tech sector drags on New York stocks
Tuesday 5 March 2024 14:51 , Michael Hunter
New York’s technology sector is leading US stocks lower this afternoon, as the market moves off the record highs touched last week.
The Nasdaq Composite, home to a range of cutting-edge companies, is down over 205 points to 18,001.26, a drop of over 1%.
After the recent run higher, investors are reluctant to go much further, not least with testimony on monetary policy due later this week from the Jerome Powell, the chairman of the Federal Reserve.
The S&P 500 fell 27 points, or 0.5%, to 5104.54.
Apple shares continue to sour in pre-market trade after European fine
Tuesday 5 March 2024 13:49 , Michael Hunter
Tech giant Apple is under pressure again in pre-market trade, as it continues to take a hit from news of a multi-million pound fine from European regulators.
Brussels slapped the €1.8 billion fine on the iPhone maker this week for breaking competition rules over music streaming.
Apple denies it and intends to appeal.
Its shares are down a further 2% in pre-market trade, after losses of a similar margin yesteday.
US stocks eye lower open as looming Fed testimony casts a shadow
Tuesday 5 March 2024 13:37 , Michael Hunter
Wall Street’s S&P 500 is expected to slip in opening trade, with investors looking unwilling to retest the markets recent record highs.
They are waiting for Washington testimony due later in the week on monetary policy from Jerome Powell, the chairman of the Federal Reserve.
In the meantime, the broad New York index is expected to ease back by 17 points to 5121.50.
Midday markets: Bitcoin cools; Deal keeps FTSE 250 warm
Tuesday 5 March 2024 12:32 , Michael Hunter
The £1 billion blockbuster deal for Spirent is helping keep the FTSE 250 positive in London, outperforming the top-tier index, with the FTSE 100 flat.
Bitcoin’s march back toward its record high is slowing down, while gold is is rising. .
Blockbuster, £1 billion Spirent bid helps FTSE 250 rise
Tuesday 5 March 2024 10:59 , Michael Hunter
The latest major bid for a London-listed company had helped the City’s second-tier stock index rise overall in morning trade.
The FTSE 250 is up almost 53 points overall at 19,301.91, a rise of 0.3%, while the FTSE 100 is flatlining.
A 60% surge for transatlantic takeover target Spirent is making the difference. The Crawley-based telecoms testing firm is up at 172.4p. on the brink of the cash offer’s price of 175p per share, including a dividend payout.
WeWork Rival IWG weighs US listing as it ramps up new sites
Tuesday 5 March 2024 10:17 , Simon Hunt
IWG is preparing to make a final call on pursuing a stock market listing in the US as the company seeks to persuade investors it should be valued more like tech darlings Uber Technologies Inc. or Airbnb Inc.
The London-listed flexible office company has switched the currency in which it reports to dollars and is reviewing adopting US GAAP accounting standards to reflect the fact that most of its earnings are generated in the region, according to a statement Tuesday.
The group, which owns the Regus serviced office brand, will likely make an “announcement regarding the company’s intentions” on whether to adopt GAAP during the first half of this year, it said.Read more here
Petrol cars continue to dominate UK sales
Tuesday 5 March 2024 09:20 , Simon Hunt
The UK new car market had its best February in two decades as registrations rose 14.0% motor trade body SMMT today said.
Electric and hybrid vehicles showed the fastest growth, but petrol remains the dominant car choice with 57% market share, while Diesel car sales slipped 7.4%.
Richard Peberdy, UK Head of Automotive for KPMG, said: “Ongoing pressure on household budgets and a higher cost of car finance mean that it’s still a difficult economic period for many people wanting to buy a new car, and a challenge for those trying to sell them. Overall, the UK market continues to hold up relatively well to this challenge, boosted by flowing supply of new vehicles, discounting on many forecourts, and export demand.”
Ashtead is the biggest faller on the FTSE 100 after actors' strike hits US revenue
Tuesday 5 March 2024 08:40 , Michael Hunter
The long-running actors strikes in LA reached the London stock market today, playing a role in a revenue warning from FTSE 100 rental giant Ashtead.
The £25 billion company provides everything from emergency response equipment to the lighting and camera rigs used on film sets. It said that a slowdown in its major US business took a hit in part due to “longer than anticipated actors' and writers' strikes.”
It means annual revenue growth will be limited to the thin end of forecast ranges, at 11%, rather than the 13% previously forecast.
Shares tumbled 370p to 5358p, a drop of 6.5%.
But overall, CEO Brendan Horgan described the group’s performance as “strong” in his third-quarter trading update, adding:
“Our end markets in North America remain robust with healthy demand, supported in the US by the increasing number of mega projects and recent legislative acts.”
Third quarter revenue was up 9% to $2.7bn (£2.1 billion)
Spirent strides to the top of the FTSE 250 leaderboard after £1 billion blockbuster bid
Tuesday 5 March 2024 08:20 , Michael Hunter
Shares in Spirent moved straight to the top of London’s second tier share index this morning, sent soaring by the £1 billion bid from Viavi Solutions of the US.
The stock surged by almost 60% to 172p, toward the 61% premium of the 175p price of the offer.
Overall, the FTSE 250 fell 48 points to 19,200.87.
FTSE 100 slips with financial stocks under pressure
Tuesday 5 March 2024 08:10 , Michael Hunter
Financial stocks are under pressure in opening trade as the FTSE 100 continue to drift lower, with traders looking ahead to tomorrow’s Budget for a full sense of direction.
The main London stock index started the day down 22 points at 7618.75, a slip of 0.3%.
Financial stocks and miners stood out on the list of fallers. Barclays was down 1.8p, or 1.1%, to 169p. Prudential fell 8p to 765p, also a drop of 1%.
Fresnillo, the Mexican silver miner, was up 21p, or 1.5% at 478p.
London estate agency Foxtons points to signs of spring in the capital's sales and lettings markets
Tuesday 5 March 2024 07:57 , Michael Hunter
Foxtons, the. major London estate agency chain, offered fresh insight into the state of the capital’s housing market today.
It said the value of properties under offer was up 31% year-on-year at the end of February ,with a “ recovery in buyer demand levels as mortgage rates have begun to reduce”.
The trend should continue, with the company predicting “good year-on-year revenue growth in the first half of the year, with further growth expected in the second half if mortgage rates continue to stabilise and pent-up demand is released.”
Meanwhile, the strains in London’s undersupplied rental market were showing signs of easing.
Foxton’s said: “Lettings market supply and demand dynamics have normalised, with increased levels of available rental stock and fewer tenants registering for each available rental property compared to 2023.
“As expected, year-on-year rental growth has moderated with rental prices remaining at elevated levels.”
The chain reported a 34% slump in profit before tax for 2023 of £7.9 million, when the property market slowed as the Bank of England raised rates to a 16-year peak of 5.25%.
Revenue rose 5% to £147.1 million.
Greggs ups dividend and vows to open up to 160 new stores
Tuesday 5 March 2024 07:33 , Simon Hunt
Greggs has increased its dividend and plans to open as many as 160 net new stores in 2024 as its slow takeover of the high street showed no signs of abating.
Britain’s biggest baker reported a 20% jump in sales in 2023 to £1.8 billion while pre-tax profits rose 13.1% to £168 million.
The Newcastle-based business recommended a final dividend of 46.0p per share bringing its total ordinary dividend per share of 62.0p per share, up 5.1% from 2022.
CEO Roisin Currie said: “Whether in our shops, our manufacturing sites, our distribution network, or in Greggs House, our teams stepped up to make sure that we kept pace with the increased customer demand as we delivered on our strategic growth plan.”
Reach sees digital sales tumble
Tuesday 5 March 2024 07:27 , Simon English
Daily Mirror publisher Reach saw revenues for the year fall5.4% to £568 million with digital sales under particular pressure.
Amid criticism of the usability of the company websites,digital sales fell 15% to £127 million, while print circulation remains a “resilientand predictable revenue stream”.
Print sales are down just 2% to £439 million for the yearto March 5.
CEO Jim Mullen, who has cut hundreds of jobs this year,said: “The success of our strategy also came to the fore this year. Despite the macroeconomic pressures, we have continued to build a stronger digital businesswith an increasing portion of much higher yielding revenues, reducing ourreliance on the open market. At the same time, we have expertly managed our print business, maintaining circulation revenues as well as deliveringnecessary cost and efficiency plans across the Group.”
Reach has “steadily increased use of AI through the year”,added Mullen. We have “made many necessary changes to our teams this year”.
Spirent to be taken off London stock exchange in £1 billion blockbuster deal
Tuesday 5 March 2024 07:21 , Michael Hunter
Another deal to take a London-listed company off the FTSE has been announce this morning, and it is a blockbuster.
Spirent, the FTSE 250 communications firm, is being bought in a £1 billion deal with US peer Viavi Solutions.
It is priced at 175p, made up of a cash offer of 172.5p and a special dividend of 2.5p. That is a premium of over 61% to Sprint’s closing price yesterday, of 108.4p.
Spirent provides network testing and security capabilities used by 5G and other networks run in a range of sectors from defence to financial services and the public sector, as well as transportation and healthcare.
The Crawley-based multinational dates back to 1936, when it was set up as Goodliffe Electric Supplies to fill gaps in the electronics market.
It is now active in cutting-edge markets including self-driving cars.
Spirent has been listed on the London Stock Exchange since 1955.
The deal will take another major name from the City. Last month, tour group Tui’s investors overwhelmingly backed plans to delist from London.
Arm, the chip designer and the UK’s most successful tech firm, turned its back on its old home when it returned to life as a listed firm last year, choosing New York over London.
Flutter, the betting group behind Paddy Power has listed in the US, which will be the main home of its shares. And Irish building products giant CRH made the same move.
New car market records strongest February in 20 years
Tuesday 5 March 2024 07:17 , Simon Hunt
The new car market recorded its strongest February in 20 years, figures show.
Registrations of new cars were up by more than 10% last month compared with February 2023, the Society of Motor Manufacturers and Traders (SMMT) said.
The SMMT reiterated its plea for “fairer” taxation of electric vehicles (EVs) ahead of Wednesday’s Budget.
It is urging Chancellor Jeremy Hunt to halve VAT on the purchase of new EVs and make public charging “as easy and affordable as plugging in at home”.Battery electric cars held a 17% market share last month.In September last year, Prime Minister Rishi Sunak delayed the ban on the sale of new petrol and diesel cars and vans in the UK from 2030 to 2035.
The SMMT will publish final figures for February registrations at 9am.
Bitcoin stays on course to re-take record high
Tuesday 5 March 2024 07:11 , Michael Hunter
The world’s best-known crypto currency is rallying again this morning, keeping it on course to return to its highest ever level.
Bitcoin is up a further $3,419 this morning taking it to $67,139. That is within touching distance of the record – $68,999.99 – reached in November 2021.
The digital asset was boosted when US regulators cleared the sale of exchange traded funds based in it.
And crypto markets have been abuzz with talk of a mystery buyer taking building a multi-billion dollar Bitcoin holding since last April.
London and European stocks set to slip
Tuesday 5 March 2024 07:02 , Michael Hunter
The FTSE 100 and its European peers are expected to decline in opening trade, after declines in Asia overnight and a lower close for US stocks took Wall Street away from record highs.
According to opening calls from spread betting companies, the main London index will fall by around 14 points, with similar dips in Paris and Frankfurt.
Mainland China’s indices ticked higher, coming back from earlier losses, after the official target for economic growth for 2024 was set at 5%.
Events in London and Frankfurt due later in the week are likely to define direction.
Traders are waiting for Chancellor Jeremy Hunt’s Budget, likely to be the last before the next election. The European Central Bank announces its next decision on interest rates on Thursday.
Jerome Powell, the chairman of the Federal Reserve, is due to appear before Washington lawmakers on Thursday to testify on monetary policy.
For Tuesday, there are earnings due from IWG, Reach and Greggs, as well as London-listed silver miner Fresnillo.
Recap: Yesterday's top stories
Tuesday 5 March 2024 06:47 , Simon Hunt
Good morning from the Standard City desk.
Jeremy Hunt will be applying the final polish to his Budget over the next 24 hours. Let’s hope there is something there for London to cheer... but it seems a long shot.
The political pressure on the Chancellor to deliver for his Prime Minister and his party is perhaps more intense than in any election year in living memory, arguably since Norman Lamont’s Budget of March 1992. But this time the task is far harder.
As our poll yesterday showed, Conservative support has slumped even further to 20%, as low as it has been since Ipsos began tracking the party ratings in 1978. It is a huge ask and Hunt is tightly boxed in by the rotten state of the pubic finances.
If the Sunday papers are to be believed, Rishi Sunak had been holding out for a 2p cut in the basic rate of income tax, a blatant electoral bribe that Jeremy Hunt and the Treasury will rightly decide is wholly unaffordable. Hunt has done a decent job in steadying the ship in the most desperate of circumstances since he was parachuted into No 11 after the fiasco of the 2022 mini-budget.
What he has not been able to achieve, however, is any significant movement on the economic growth dial. It will be up to his successor, almost certainly Labour’s Rachel Reeves, to tackle that challenge.
Here’s a summary of our top stories from yesterday:
High Streets hit by fifth consecutive month of falling sales, record for outside the pandemic, says worrying survey ahead of Budget as pressure grows on Hunt to end tourist tax
Insurance giant Aviva moves into Lloyd’s market for first time in decades with £242 million buy of underwriting syndicate Probitas
Apple fined £1.5 billion by EU regulator over App Store rules
Chances of Hipgnosis Songs Fund takeover rise after portfolio value drops
British electric motorbike makers Saietta goes bust
PensionBee to enter US market and set up New York office
