Yahoo Finance FTSE 100 Live 10 July: Barratt completions set to fall, JD Wetherspoon posts record sales
Housebuilding targets remain in focus after Barratt Developments today forecast lower 2025 completions.
Barratt’s shares led the FTSE 100 fallers board after its end-of-year trading update.
Other highlights today included record sales for JD Wetherspoon despite having fewer pubs
FTSE 100 Live Wednesday
Barratt sees fall in 2025 completions
JD Wetherspoon posts record sales
Travis Perkins appoints new boss
FTSE 100 up in late trade as mining stocks underpin gains and airlines fly
16:45 , Michael Hunter
London’s main stock index was higher in closing trade, as demand for heavily weighted mining stocks and higher airline shares helped offset pressure from housebuilders.
Barratt Developments stoked worries over the speed a which developers will be able to scale building up to meet the government’s national target for 1.5 million new homes in five years.
The UK’s biggest developer said it would build fewer homes in its financial year ending in 2025 than in the 2024 equivalent.
Its shares fell almost 6p to 486p, down over 1%.
Silver miner Fresnillo made the biggest gain of the day, up 22p, or almost 4% to 608p.
Airlines were also taking off, with EasyJet up 12p at 478p and BA’s parent IAG up 6p at 178p.
Overall, the FTSE 100 added over 50 points in late trade to 8190.69, a rise of 0.6%.
S&P 500 ticks higher in New York as tech rally holds and Fed testimony goes on
14:39 , Michael Hunter
Sustained demand for tech stocks is helping add points to New York’s S&P 500 as the sector behind its drive to recent record highs continues to rally.
The broad stock index is up 11 points at 5588.39 in early trade, with Micron up almost 2% and Nvidia up over 1%.
Traders were also keeping watch on signs on the likely timing of US rate cuts, with Jerome Powell, chair of the Federal Reserve, due to start a second day of testimony on Capitol Hill.
Wall Street set to make progress
14:06 , Michael Hunter
New York stocks are expected to make more progress in opening trade, with tech stocks continuing to drive gains.
Investors buying back into the sector have helped cheer the mood on Wall Street.
Microsoft and Tesla are among the companies in demand. It comes amid upbeat broker comment on the electric car maker, and reports that the software giant is prepared to head off scrutiny of its holding in ChatGPT by giving up it observer seat on its board.
Futures trade expects the S&P 500 to rise by 13 points at the open.
IAG and Centrica boost the FTSE 100, miners struggle
10:07 , Graeme Evans
Travel-focused stocks are performing well today, with IAG up 6.1p to 179p as the leading company in the FTSE 100.
Meanwhile, airport and railway station caterer SSP jumped 12% to lead the FTSE 250 index after it reported a 16% rise in third quarter sales.
In the UK, the figure was 8% higher on a same-store basis amid stronger air passenger numbers and reduced levels of rail industrial action. Shares rebounded 18.9p to 175.3p, having fallen from 225p since the start of the year.
The performance of IAG came amid strong buying across the airline sector, with easyJet shares also up 7.46p to 473p.
Their support helped the FTSE 100 index to stem a run of losses over the previous three sessions by adding 26.16 points to 8165.97. Other stronger blue chips included British Gas owner Centrica, which improved 3.5p to 139.7p.
On the fallers board, mining stocks Glencore and Rio Tinto lost 1% after an inflation reading of 0.2% provided more evidence of China’s stuttering economic recovery.
The FTSE 250 index put on 85.14 points to 20,730.16, with travel-focused retailer WHSmith up 17p to 1175p on the back of today’s SSP update.
Zigup, the new name for van hire and fleet management business Redde Northgate, rose 4p to 430.5p after reporting a 9% rise in annual profits to £180.7 million. The dividend increased by 7.5%.
Liontrust looks to Labour for City help
09:08 , Simon English
STRUGGLING City fund group Liontrust Asset Managementtoday said the new Labour government should boost investor confidence and lead to fresh investment in the UK from overseas.
It saw another £900,000 withdrawn from its funds in three months to June, the latest in a series of negatives for the stock picking City community in general.
Investors are increasingly choosing cheaper index trackers over active funds that try to beat the market but frequently fail to do so.
Liontrust now has funds under management of £27 billion, down nearly 3% in the quarter.
Chief executive John Ions said: “Labour's large majority in last week's General Election should herald a period of stability that will be positive for financial markets. It is encouraging that the new government has a pro-growth agenda and is committed to the simplification of pensions.
Along with falling inflation and the expectation of a reduction in interest rates, this should encourage international investors to return to the UK and boost capital flows to the stock market. Given the ever-increasing need for individuals to save more for their retirement as well, this will significantly improve the outlook for asset managers.”
Critics fear that Ions will be proven wrong – that robot investors will increasingly beat the humans.
Rivals such as Schroders and Jupiter have suffered similar problems – trying to justify higher fees with performance that has not always been stellar.
Much of the City is looking to the new government for a change of tone, and some relaxation of the rules around pensions.
Big pension funds tend to avoid high-risk equities in favour of safer government bonds. The regulations encourage them to do so.
In pension policy circles this has been seen as a hindrance to UK economic growth for some time.
Lately it emerged that UK pension funds have just 4% of their assets in shares. MPs pensions are even worse, with 2% in UK shares.
Liontrust shares rose 24p to 628p today, leaving the business valued at £408 million. The stock is down 20% over five years.
'Spoons boss hopes new Chancellor knows "how many beans make five"
08:54 , Simon English
JD Wetherspoon today said it is still looking to sell another 10 pubs despite a 5.8% boost in sales in the last quarter. Chairman Tim Martin said: “Sales are again, at record levels.”
He has sold off 26 pubs from the estate he built and other 10 remain on offer.
Martin says he is selling older and smaller pubs or those where the company has a second pub nearby.
He said: Martin, said: "The gradual recovery in sales and profits, following the pandemic, has continued in the current financial year. Total sales are, again, at record levels, with fewer pubs. Sales per pub are approximately 21% higher than pre-pandemic levels, which has helped to compensate for the very substantial increase in costs.”
Martin, a Brexit and Boris Johnson backer, has feared the effect those decision might have on his business.
Today he complained of rising staff and energy costs, and again called for pubs to be taxed at the same rate as supermarkets for VAT.
He said: "The average Wetherspoon pub has generated taxes of one sort or another of £7 million in the last 10 years, as well as generating considerable employment and social benefits. The last government failed to implement tax equality between pubs and supermarkets, leading to pub closures and underinvestment - Wetherspoon hopes that the current Chancellor, with a Bank of England pedigree, will understand how many beans make five, and rectify this inequality.”
Barratt shares fall in robust FTSE 100, SSP surges 8% in FTSE 250
08:20 , Graeme Evans
The FTSE 100 index is on track to end a three-day losing run after posting an improvement of 17.56 points to 8157.37 in early dealings.
Strong performers included the shares of British Airways owner IAG following a rise of 3% or 5.3p to 178.2p.
Barratt Developments fell 3% or 13.8p to 477.4p after the housebuilder forecast a drop in completions for the 2025 financial year to between 13,000 and 13,500. This compares with 14,000 in the year just ended.
In the FTSE 250, investors gave a lukewarm response to Direct LIne’s “changing gears” strategy update. Despite new boss Adam Winslow’s vow to deliver strong returns for shareholders, the stock fell 1.6p to 191.3p.
Shares in railway catering firm SSP jumped 8% or 13.2p to 169.6p after it said third quarter sales rose 16% on last year. This includes like-for-like growth of 6%,
Travis Perkins appoints former Taylor Wimpey chief Pete Redfern as CEO
07:49 , Michael Hunter
Builders’ merchant chain Travis Perkins has appointed a new chief executive, the former Taylor Wimpey chief Pete Redfern.
He will take over from Nick Roberts in the top job on September 16.
Roberts’ departure was announced in March after the slowdown in the housing market led to a string of profit warnings from the 700-store chain, which also runs the Toolstation brand.
Redfern ran the house builder for 14 years until 2022 and has been a non-executive director of Travis.
He said today:
“I have operated as both a customer of, and a supplier to the Group and have a strong sense of its inherent potential. My initial focus will be on implementing and adding to the actions already underway to improve operational execution”
Travis also appointed a new chair today – Geoff Drabble – from the Ferguson building materials distribution firm, and the former CEO of Ashtead, the hire company.
He said he was “delighted” to be joining the board.
Barratt Developments on course to complete 14,000 homes, but number will fall in 2025
07:38 , Michael Hunter
Barratt Developments said today it was on course to meet is annual target to build over 14,000 homes this year.
The update came with housebuilders in focus since the general election, amid ambitious government plans to finish 1.5 million homes during Labour’s current term in office.
Barratt’s number is down from over 17,000 last year, after the slowdown in housing markets with interest rates at a 16-year high at 5.25%.
It also expects the number of completions to fall in 2025, to between 13,000 and 13,500
But the company, in the process of merging with Redrow, also said annual profit before tax will be “ slightly ahead of our previous expectations”.
David Thomas, chief executive, called it “another year of economic and political uncertainty”, adding:
“Whilst we continue to navigate a challenging macroeconomic backdrop, we are delivering industry leading build quality, sustainability and customer service. Combined with the strength of our balance sheet, this has ensured we remain resilient and responsive through the cycle.”
On the merger, Thomas added: “We are pleased that the proposed combination with Redrow was strongly supported by both sets of shareholders in the Spring and, subject to the CMA's approval, we look forward to bringing together two businesses to create an exceptional UK housebuilder”
Wetherspoon sales at record level despite fewer pubs
07:34 , Graeme Evans
Pub chain JD Wetherspoon today posted a like-for-like sales increase of 5.8% in the 10 weeks to Sunday, leading to a rise of 7.7% over the financial year.
The chain’s boss Tim Martin said: "The gradual recovery in sales and profits, following the pandemic, has continued in the current financial year.
"Total sales are, again, at record levels, with fewer pubs. Sales per pub are approximately 21% higher than pre-pandemic levels, which has helped to compensate for the very substantial increase in costs.
Ahead of full-year results on 4 October, he said the company’s performance has been in line with the City’s profit expectations.
US markets firm after Federal Reserve comments, FTSE 100 seen flat
07:14 , Graeme Evans
Comments by Federal Reserve chair Jerome Powell yesterday failed to knock the S&P 500 index and Nasdaq Composite from record levels.
Powell said the US economy is making modest progress in the fight against inflation but his comments to Congress offered no clues about when interest rates might fall.
Wall Street continues to bet on September’s meeting for the first cut, expectations that helped sustain its leading benchmarks in subdued trading yesterday.
London’s FTSE 100 index is set to add five points at 8145, having closed 0.7% lower last night as part of a run of three consecutive sessions in the red.
In Asia, the Nikkei 225 has added another 0.6% but the Shanghai Composite is down 0.5% after China’s inflation reading came in below expectations at an annual 0.2%.
