Yahoo Finance FTSE 100 Live: ‘Storm clouds on the horizon’, JPMorgan boss warns; shares close up 0.4%
Superdry and Dr Martens today revealed trading setbacks in a session when the FTSE 100 index has maintained recent progress.
Fashion retailer Superdry said sales in February and March had not met expectations, blaming the cost of living crisis and impact of poor weather. It has withdrawn previous guidance that it will break even in the year to April.
Meanwhile, Dr Martens continues to count the cost of operational issues at its Los Angeles distribution centre as it issued new earnings guidance for a figure of around £245 million.
The FTSE 100 looks set to close out the week with a sixth consecutive day of gains, after strong trading on Wall Street yesterday.
FTSE 100 Live Friday
Superdry shares slide on disappointing sales
Dr Martens downgrades on LA warehouse costs
Takeover action leads to FTSE 250 surge
Nurses to strike again as union members narrowly vote to reject pay deal
Friday 14 April 2023 17:10
Nurses will go on strike again later this month after members of the Royal College of Nursing (RCN) rejected a pay offer by the Government.
In a statement on Friday, the RCN said that more than half (54 per cent) of their members had voted against the deal on a 61 per cent turnout - despite the union recommending acceptance of the offer.
Nurses will strike at NHS Trusts across England for 48 hours from 8pm on April 30. Unison, who represent some NHS staff, voted to accept the same offer.
FTSE finishes week of gains at 7872
Friday 14 April 2023 16:56 , Daniel O'Boyle
The FTSE 100 has closed up for the seventh consecutive day, finishing at 7872.
The index of London blue-chips started with modest gains but continued to rise for most of the day, briefly surpassing the 7900 mark.
Banks made up many of the top risers after American giant JPMorganChase reported record revenue, with Standard Chartered, Barclays and HSBXC all gaining more than 3%.
Michelin-star chef slashing prices at Mayfair restaurant to help Londoners eat out
Friday 14 April 2023 16:00 , Daniel O'Boyle
One of London’s leading Michelin- starred chefs has slashed his menu prices at his Mayfair flagship restaurant because he fears Londoners are being priced out of regular West End dining.
Jason Atherton, 51, told the Standard that customers were feeling increasingly “alienated” by the rocketing cost of eating out at a time when they were having to cut back on spending in other areas because of soaring inflation.
Record revenue for JPMorgan
Friday 14 April 2023 15:16 , Daniel O'Boyle
US banking behemoth JPMOrgan Chase reported record revenue of $38.3 billion and profit of $12.6 billion in the first quarter of the year.
However, its CEO warned of “storm clouds” around the banking sector.
“Our years of investment and innovation, vigilant risk and controls framework,and fortress balance sheet allowed us to produce these returns, and also act as a pillar of strength in the banking system and stand by our clients during a period of heightened volatility and uncertainty,” CEO and chair Jamie Dimon said.
“The U.S. economy continues to be on generally healthy footings — consumers are still spending and have strong balance sheets, and businesses are in good shape. However, the storm clouds that we have been monitoring for the past year remain on the horizon, and the banking industry turmoil adds to these risks.”
US shares up after initial declines
Friday 14 April 2023 15:08 , Daniel O'Boyle
US shares are up for the day despite initially falling when markets opened on Wall Street.
The S&P 500 is up by 0.3% to 4,159.59, approaching its highest level insce August of 2022. The Dow Jones is up slightly to 34074, while the Nasdaq is up 0.2% to 12194.
JPMorgan Chase, the country’s biggest bank, has been the top riser, gaining 6.7%.
HSBC warns French retail arm sale is in jeopardy
Friday 14 April 2023 14:14 , Daniel O'Boyle
HSBC has warned that the sale of its French retail business could be in doubt, due to the impact of recent interest rate hikes.
HSBC agreed to sell its French retail business to the My Money Group in 2021 for €1, at a time of low interest rates across the globe.
After a number of interest rate hikes, though, could prevent My Money from gaining regulatory approval to close the deal. With rates now being higher, the bank needs to hold a larger amount of capital to get the deal approved by regulators.
“The purchaser group has informed us that the significant, unexpected interest rate rises in France since the framework agreement was signed in 2021, and the related fair value accounting treatment on acquisition, will significantly increase the amount of capital required by the enlarged purchaser group at closing of the transaction,” HSBC said. “Unless this issue is addressed, the purchaser will be unable to obtain regulatory approval for the transaction.”
Sales soar at Camden’s Eland Cables as demand increases
Friday 14 April 2023 14:03 , Joanna Hodgson
Sales at a Camden Town-headquartered electrical cable supplier have nearly doubled since the start of the pandemic to hit £200 million, boosted by private and public sector increased investment in decarbonisation and digitalisation projects.
Eland Cables, which supplied the rail overhead line to electrify the Great Western route from Paddington to Cardiff and whose products have been used on sites such as data centres, was founded in 1975.
Signs of wealthy shoppers choosing Paris over London as Hermès sales rocket in France
Friday 14 April 2023 14:00 , Daniel O'Boyle
Luxury French fashion house Hermès reported a 23% increase in sales, but its results may reveal signs that Paris is outperforming London as a destination for high-end tourist shopping.
While UK sales were up, growth was fastest in France, at 28%, in what might be the latest sign that rich shoppers are choosing Paris over London. Luxury handbag maker Mulberry closed its Bond Street shop in February, after blaming the end of VAT-free shopping for a decline in sales.
Data commissioned by a group of organisations campaigning for the return of VAT-free shopping last month found that while London shopping had rebounded to pre-Covid levels, shopping in other major European destinations had easily exceeded 2019.
US stocks set to recede after big gains yesterday
Friday 14 April 2023 13:48 , Daniel O'Boyle
Shares on Wall Street are set to recede sllightly when markets open, after big gains yesterday.
The S&P 500 and Dow Jones were both up by more than 1%, while the Nasdaq Composite gained 2% on the back of hopes the Fed’s rate hike cycle was nearing an end.
However, according to futures markets, some of those gains could be eaten into today. S&P5 500 futures are down 0.1% to 4169, while Nasdaq futures are down 0.6% to 13129. Dow Jones futures are steady at 34200.
Lidl and Aldi slash price of milk
Friday 14 April 2023 13:45 , Daniel O'Boyle
Aldi and Lidl have followed rival supermarkets Sainsbury’s and Tesco in slashing the price of milk.
The budget retailers announced on Friday that they are cutting the price of their four-pint own brand bottles by 10p from £1.65 to £1.55.
The change follows a similar announcement by supermarket Sainsbury’s on Thursday, with Tesco being the first to cut its prices on Wednesday.
Scrap gas networks’ right to forcibly enter homes, campaigners tell peers
Friday 14 April 2023 12:58 , Daniel O'Boyle
Environment and fuel poverty campaigners are urging peers to scrap a proposed law that would allow gas distribution networks (GDNs) to switch people’s boilers to hydrogen without their consent.
The Energy Bill, which is due before the House of Lords on Monday, would allow GDNs to forcibly enter people’s homes for any reason connected to a hydrogen trial if they live within the designated zone.
Shoppers head to frozen food aisles to quell ‘sizzling hot’ inflation hit
Friday 14 April 2023 12:23 , Daniel O'Boyle
Shoppers are opting for frozen meat and meals like pizza and chips as food price inflation continues to add hundreds of pounds to households’ grocery shops.
New figures from research firm Kantar showed frozen food sales were ticking up in British supermarkets.
Frozen poultry like chicken and game meats increased in the three months to mid-March, compared with the same period last year, as well as frozen prepared foods which includes ready meals, pizzas, chips and pies.
Recession or not, UK weakness is inevitable
Friday 14 April 2023 11:48 , City Voices
The recent debate about whether or not the economy will enter a recession reminds me of the old joke about two economists in a room coming up with three opinions.
Earlier this week the International Monetary Fund said there will be a recession. On Thursday, the Chancellor said that “we are set to avoid recession”. That’s two opinions. The third comes from the Bank of England. It isn’t sure. Back in February it was forecasting a recession. But it recently revised up its forecast. We won’t know for sure where it stands until its new forecasts are published in full in May. None of this paints economists in a good light.
All in this together? Not if you are on a chief executive’s pay
Friday 14 April 2023 11:14 , Daniel O'Boyle
It’s tough running a FTSE 100 company, and it’s getting tougher. The average length of service for a CEO is falling, partly propelled by the stifling atmosphere of ESG compliance, but there’s another reason. Given the size of the rewards, there is little point in working anything like the politically correct maximum 10 years at such a full-on job.
There is no evidence of a cost-of-living crisis among leading CEOs during 2022. An analysis of 55 of them by accountants Deloitte concluded that the average FTSE boss saw a 12% pay rise last year, taking (mostly his) pay to £4.15 million.
Betting giant 888 reports surge in profits for year marked by scandal and a record fine
Friday 14 April 2023 10:59 , Michael Hunter
Gambling company 888 Holdings tried to put a scandal with high-rolling Middle East punters and a record fine for historic failings over customer safety behind it today, as it reported a surge in annual profits that will put the spotlight back on a sector struck with controversy.
888 was rocked this year by revelations that it failed to follow rules to prevent money laundering on some VIP customer accounts in the region, prompting it to launch an internal investigation and suspend some accounts.
At the same time as the probe was announced in January, its chief executive, Itani Pazner, stepped down after a two-decade career at 888 and four years in the top job. It is still looking for a successor.
‘Gold-rush’ for London warehouse space is over with take-up lower
Friday 14 April 2023 10:37 , Joanna Hodgson
The ‘gold rush’ for London warehouses seen during the pandemic is over and occupiers are becoming more cautious, new data suggests.
During the Covid-19 crisis many retailers sought extra storage and distribution space to cope with a jump in online orders while high street stores closed for lockdowns. Supply chain disruption also prompted some businesses to seek properties closer to final delivery destinations.
But take-up of space in the sector in London reached just 810,000 square feet in the first three months of 2023, according to property consultancy Lambert Smith Hampton (LSH).
FTSE 250 outpaces top flight, Dechra shares jump 36%
Friday 14 April 2023 10:13 , Graeme Evans
Dealmaking excitement fired up the FTSE 250 index today as traders see more UK assets move into the sights of private equity.
The buying action followed last night’s disclosure of a £4.6 billion approach for veterinary drugs group Dechra Pharmaceuticals.
Shares in the Cheshire-based former blue-chip today jumped 36% or 1004p to 3780p, which compares with the 4070p mooted by Swedish private equity firm EQT and its backer Abu Dhabi Investment Authority.
Oil engineering consultancy Wood Group and exhibitions business Hyve are already in the bid spotlight, while London-based estates firm Industrials REIT today formally agreed a takeover worth £511 million with US giant Blackstone.
The developments, which also include yesterday’s preliminary interest of CVC Capital for Middle East payments company Network International, today led to the considerable outperformance of the FTSE 250 index.
The UK benchmark surged 0.9% or 164.81 points to 19,234.94, with big risers including Urban Logistics REIT after a gain of 3.6p to 139.6p. And on the back of the punchy Dechra approach, AIM-listed animalcare group CVS jumped 7% or 124p to 1999p.
In contrast, the FTSE 100 index rose by a more sedate 21.32 points to 7864.70 for a fourth consecutive weekly gain. Hopes that US interest rates are near their peak have encouraged buyers and kept the gold price close to a record high at $2040 an ounce.
One of the biggest top flight rises came from Standard Chartered, which lifted 9.6p to 628.2p after Jefferies analysts increased their target price by 50p to 1000p. They said a 22% fall for shares since the March banking turmoil seemed harsh given favourable operating trends.
For fashion retailer Superdry, trading conditions are far from helpful as it today withdrew breakeven guidance for its April financial year. Chief executive Julian Dunkerton believes the brand is “stronger than ever” but shares slumped 17% or 17.7p to 89.1p, with the company considering an equity issue to support its turnaround ambitions.
Let pension funds bet big on the London stock market
Friday 14 April 2023 10:08 , Simon English
the flippant answer to the FTSE 100 CEO moaning that his shares are undervalued it this: Go and buy some then.
There’s a lot to be said for that approach; Warren Buffett would approve.
But our analysis today suggesting that FTSE 100 companies would be worth towards £500 billion more if they listed in New York suggests something quite serious.
Britain’s biggest firms would be worth £460 billion more if they listed in New York
Friday 14 April 2023 09:53 , Simon English
BRITAIN’S top 100 companies would be worth towards £500 billion more if they moved their stock market listings to New York, shock analysis for the Evening Standard shows.
Amidst growing fears that the London stock market, once the premier equity index in the world, is in danger of becoming a backwater for equities, research shows the gap in valuations is worse than previously realised.
More and more large businesses are threatening to move their share listing away from London in frustration at the low value given to their shares.
The FTSE 100 market value is today about £2.13 billion. Based on its combined profits and earnings, it would be £460 billion higher were US share values applied.
AI ad firm’s shares plunge as sale process finds no willing buyers
Friday 14 April 2023 09:32 , Daniel O'Boyle
AI-driven ad firm Mirriad warned investors that the company’s future is in doubt after failing to find a willing buyer for itself.
The company launched a sale process last month, but has abandoned those plans now after determining that there was “no prospect” of an offer.
The business has £7.5 million left in cash, which it said will last it until the end of September.
As a result, the board is now considering “all options” to preserve value for stakeholders.
Mirriad shares are down 35% today.
FTSE 100 higher, Superdry shares down 17%
Friday 14 April 2023 08:24 , Graeme Evans
The FTSE 100 index is 13.08 points higher at 7856.46, with European markets following Wall Street’s lead on hopes that US interest rates may be near their peak.
In a busy session of updates, Superdry shares slid 17% to 18.4p to 88.4p but AO World rose 2.7p to 70.4p after its latest upgrade to guidance and Hays cheered 0.6p to 114.6p.
The reduced earnings forecast by Dr Martens failed to cause more damage to its share price, which rose 1.2p to 142.5p.
The FTSE 250 index lifted 108.53 points to 19,178.66, aided by dealmaking activity after last night’s disclosure from Dechra Pharmaceuticals of a private equity bid approach worth £4.6 billion. Dechra shares jumped 38% or 1050.4p to 3,830.4p.
Hermès sales jump with growth in all regions
Friday 14 April 2023 08:12 , Daniel O'Boyle
Sales at luxury fashion house Hermès jumped by 23% in Q1, thanks to strong demand in all regions for its high-end handbags, perfumes and watches.
Sales were up in all regions, with the strongest growth in France and Japan, where it said “the loyalty of local customers” boosted growth.
“The first quarter of 2023 is aligned with the good results of 2022 and reflects the success met by our collections all over the world, driven by the loyalty of our customers,” CEO Axel Dumas said. “We are proud to strengthen our production capacities and consolidate our artisanal model.”
Superdry plunges 19% after it says it no longer expects to break even
Friday 14 April 2023 08:11 , Simon Hunt
Superdry shares plunged 19% to 88p in the opening minutes of trading after the retailer withdrew previous guidance that it would break even.
Retail sales continue to show good like-for-like growth, but at a slower rate than anticipated due in part to the cost-of-living crisis and poor weather resulting in less demand for the new spring-summer collection.
Superdry said the trading uncertainty and actions associated with the reorganisation of its wholesale division made it challenging to give guidance on full year profit.
Hays reveals drop in recruitment of permanent staff amid faltering ‘client and candidate confidence’
Friday 14 April 2023 07:57 , Michael Hunter
Employment consultant Hays revealed today that employers are making more use of temporary staff amid a drop in “client and candidate confidence” which means less recruitment of permanent workers.
In the three months to the end of March, there was a drop of 2% in permanent placements , which it said “reduced through the quarter”. Temporary placements rose by 11%.
The rise in temporary jobs, the FTSE 250 company’s biggest market, helped group fees hit a record, while a lack of skilled workers stoked wage inflation in the period.
Alistair Cox, chief executive, said: “employers shifted their hiring patterns towards more flexible labour” amid “increased macroeconomic uncertainties”.
He added: “Our key markets continue to be characterised by acute skill shortages and wage inflation, and we are benefiting from our early management actions to increase fee margins in skill-short markets.”
US rates-sensitive stocks rally, FTSE 100 seen higher
Friday 14 April 2023 07:47 , Graeme Evans
Wall Street closed higher last night after weaker-than-expected figures on producer price inflation and from the labour market boosted hopes that Federal Reserve policymakers may yet pause interest rate hikes at their meeting next month.
The S&P 500 rose 1.3% and the rate-sensitive Nasdaq Composite lifted 2% in its best session for nearly a month.
Volatility continues to ease as the VIX index closed at its lowest level since January 2022, which Deutsche Bank strategists said was particularly striking given how tumultuous markets were only a month ago.
However, the start of the first quarter earnings season has the potential to shake this confidence, with several financial stocks reporting today including JPMorgan Chase, Citigroup, Wells Fargo and BlackRock.
The FTSE 100 index rose yesterday and is expected by CMC Markets to add another 16 points at 7859 this morning as European markets maintain their momentum.
YouGov poaches Meta’s European head for CEO role
Friday 14 April 2023 07:40 , Simon Hunt
YouGov has poached Meta’s European head Steve Hatch as its new CEO.
Hatch was appointed as Facebook’s first Regional Director for the UK in 2014, and in 2016 became Meta’s Vice President for Northern Europe.
Hatch will join the polling company at the beginning of August, replacing co-foudner Stephan Shakespeare who will assume the role of Non-Executive Chair.
Superdry sales hit by challenging conditions
Friday 14 April 2023 07:30 , Graeme Evans
Superdry has withdrawn its breakeven guidance for its April financial year after retail sales missed expectations in February and March.
Founder and chief executive Julian Dunkerton said “The Superdry brand continues to evolve but there is no doubt that the market conditions we face are challenging.”
The performance in wholesale continues to be challenging, leading to a new forecast that overall revenues will rise from last year’s £609 million to between £615 million and £635 million.
Retail sales continue to show good like-for-like growth, but at a slower rate than anticipated due in part to the cost-of-living crisis and poor weather resulting in less demand for the new spring-summer collection.
Superdry said the trading uncertainty and actions associated with the reorganisation of its wholesale division made it challenging to give guidance on full year profit.
It said: “Therefore, the board has taken the decision to withdraw the previously issued guidance of broadly breakeven for our FY23 adjusted profit before tax.”
Dr Martens warns on profits after warehouse issues
Friday 14 April 2023 07:28 , Daniel O'Boyle
Dr. Martens issued a second profit warning in three months after “operational issues” at one of its distribution centres led to higher costs.
The company known for its boots warned in January that problems at its Los Angeles distribution centre limited its ability to meet demand.
Now it said that these issues are solved, but the costs of restoring business as usual were higher than expected. This, combined with lower-than-expected Q4 sales, mean the company now expects a profit of £245 million, having previously expected it to fall between £250 million pounds and £260 million.
AO World lifts guidance for the third time
Friday 14 April 2023 07:23 , Simon Hunt
AO World has lifted its profits guidance once again to the top end of its previous expectations of £37.5-40 million, well up on the £20-30 million it guided late last year.
The online retailer said risks of macroeconomic uncertainty did not materialise to the extent it had previously feared.
John Roberts, CEO and Founder, said: “We are encouraged by the work undertaken to pivot the business during the financial year 2023. AO enters the new financial year with net funds on the balance sheet, a robust trajectory, and full confidence in our ability to deliver on our medium-term profit guidance
888 looks to sell assets after taking £30 million annual hit from money laundering scandal
Friday 14 April 2023 07:18 , Daniel O'Boyle
William Hill owner 888 is looking to sell off parts of its business, as the money laundering scandal that brought down former CEO Itai Pazner will continue to cost it up to £30 million a year going forward.
The betting giant announced the suspension of its Middle Eastern operations in January, as it launched an investigation into the quality of money-laundering checks it performed on Middle Eastern high-rollers.
At the time, it said the suspension would cost it roughly 3% of revenue.
Now, it has revealed that the investigation is complete, and it expects the hit going forward to be between £25 million and £30 million. The betting firm will also look to sell certain ‘non-core’ businesses, having struggled with debt after heavy borrowing to fund the acquisition of William Hill, which closed during the year.
The company also announced its 2022 financial results today, with profit up 82% mostly due to the acquisition.
Yesterday’s top stories
Friday 14 April 2023 07:01 , Daniel O'Boyle
Good morning. Here are some of yesterday’s top stories:
The spectre of recession returned after official figures revealed the British economy failed to grow at all in February.
Rishi Sunak’s wife Akshata Murty is set to pocket another £6.7 million in dividends from her billion-dollar family tech company as she cements her position as the wealthiest-ever resident of Downing Street.
London has the highest rate of ‘Nepo workers‘ in the UK, as half of Londoners have been handed a job because of personal connections.
