Yahoo Finance FTSE 100 Live: Heathrow busiest since 2020, firms plan bumper pay rises
Heathrow gave more evidence of the travel industry rebound today by revealing that 5.4 million passengers used the airport last month.
As well as seeing the busiest start of the year since 2020, boss John Holland-Kaye said satisfaction scores met or exceeded 2019 levels.
Meanwhile, it emerged today that UK employers are planning the biggest round of pay rises in years as they battle to plug staffing gaps.
FTSE 100 Live Monday
Heathrow reports busy start to year
Bumper pay rises at UK firms to plug staffing gaps
Mulberry shuts Bond Street store
Liberty Global acquires 4.9% of Vodafone
Monday 13 February 2023 16:42 , Daniel O'Boyle
US telecoms business Liberty Global has acquired a 4.92% stake in Vodafone.
Liberty - funded by cable television billionaire John Malone - revealed today that it has acquired 1,335 Vodafone shares, representing just short of 5% of Vodafone’s outstanding share capital.
Liberty chief executive Mike Fries said he believed Vodafone shares to be undervalued.
“We believe, like many others, that Vodafone’s current share price does not reflect the underlying long-term value of their operating businesses, or their announced consolidation and infrastructure opportunities,” he said. “We continue to remain disciplined about our capital and fully expect that the equity used to fund this investment will be replenished with the sale of certain non-core assets over time.”
Vodafone is currently trading at 91.6p per share. The deal was announced after the close of trading on the London Stock Exchange.
Another record FTSE close
Monday 13 February 2023 16:32 , Daniel O'Boyle
The FTSE 100 closed at 7943 today, just short of an overall record, but the highest ever end-of-day figure.
The FTSE peaked at 7944, which was just short of Thursday’s 7948, after rising 0.8% since opening.
However, it ended the day at 7943, which was above the 7916 closing figure from Thursday.
FTSE edges back towards record territory
Monday 13 February 2023 15:37 , Daniel O'Boyle
The FTSE 100 is up to 7937 today, within touching distance of the all-time record it said on Thursday.
Affter closing at 7882 on Friday, the index of blue-chip companies picked up throughout the day, rising by 0.7%, and is now on course for a record close.
Although the FTSE hit a high of 7948 on Thursday, it dipped later in the day to close at 7916, which is currently the highest ever figure for the end of trading. The day’s top risers include Spirax-Sarco Engineering and Unilever.
NatWest to acquire 85% stake in pensions fintech Cushon
Monday 13 February 2023 15:18 , Daniel O'Boyle
NatWest has agreed to acquire 85% of workplace savings and pensions fintech business Cushon for £144 million.
The banking giant said the acquisition of a majority shareholding in Cushon - which offers products including a workplace ISA and master trust pension - would allow it to expand into the workplace savings space.
“By combining the scale, experience and expertise of NatWest Group with Cushon’s innovative workplace savings and pensions products, this acquisition allows us to enhance our services to commercial customers and support the financial wellbeing of their staff,” NatWest CEO Alison Rose said.
The acquisition remains subject to regulatory approval and is expected to close later this year.
Playtech to take stake in Canadian betting site NorthStar
Monday 13 February 2023 14:28 , Daniel O'Boyle
Gambling technology provider Playtech has revealed a CAN$12.25 million investment in Canadian betting and online casino site NorthStar Gaming, which will give it a 16% stake in the business.
NorthStar currently only does business in Ontario but Playtech said the investment would help it expand across the rest of Canada.
The news comes as Playtech’s billionaire founder Teddy Sagi revealed a bid to take cybersecurity firm Kape Technologies private at a £1.25 billion valuation. Although Sagi founded Playtech in 1999, he has since sold the vast majority of his shares in the technology supplier.
Playtech shares are up 1% so far today to 570p.
US stocks poised to open higher
Monday 13 February 2023 13:30 , Daniel O'Boyle
Shares of US businesses are set to open higher than Friday’s closing prices this morning, after strong trading so far today in the UK.
Dow Jones futures are currently trading at 33929, up by 37 points from Friday’s closing bell. S&P 500 futures are trading at 4110, up 10 points.
Skills crisis sees 65% of London firms struggle to fill vacant posts
Monday 13 February 2023 11:19 , Daniel O'Boyle
Almost two thirds of London businesses are struggling to fill vacancies, while UK firms prepare the biggest pay rise in more than a decade to deal with the continuing skills shortage.
A survey of 1,016 business leaders and HR managers conducted by BusinessLDN found that 77% of firms had open vacancies, while 65% are struggling to fill them.
While companies said they struggled to recruit for all types of roles, finding specialists seemed to be the biggest challenge. Just under half of all businesses reported difficulty hiring for specialist roles.
EY resigns as auditor for consultancy MJ Hudson
Monday 13 February 2023 10:29 , Daniel O'Boyle
EY has resigned as the auditor of asset management consultancy MJ Hudson, saying it has “lost trust and confidence” in the firm’s leadership.
“We are ceasing to hold office because we have lost trust and confidence in the company’s management and those charged with governance, and in their ability, along with your finance team, to provide us with accurate and reliable information,” EY said in its resignation letter.
MJ Hudson said it “continues to work with an external accounting and financial services firm to assist it in achieving the necessary clarity to enable the year end FY2022 reporting to be completed”.
Housebuilding stocks struggle, FTSE 100 higher
Monday 13 February 2023 10:15 , Graeme Evans
The FTSE 100 index today opened the week higher as traders await evidence the fight against inflation is being won.
London’s top flight is already up 6% this year and comfortably outperforming Wall Street thanks to a rally by heavyweight oil, financial and defensive-leaning stocks. However, the chances of the FTSE 100 adding to recent records and pushing above 8000 for the first time are likely to hinge on this week’s flurry of economic figures.
The most significant update comes tomorrow when the US inflation rate for January is forecast to show a drop to 6.2% from 6.5% the previous month. A higher-than-expected print is likely to derail global risk appetite by signalling that the Federal Reserve is far from done raising interest rates.
The outlook for UK borrowing costs will also be in focus, with Wednesday's official inflation figure forecast to dip to 10.2% from December’s reading of 10.5%.
Ahead of these releases, the FTSE 100 today returned above 7900 with a gain of 21.76 points to 7904.21 and the UK-focused FTSE 250 lifted 19.91 points to 20,049.98.
Blue-chip risers included Centrica, which cheered a penny to 96.1p ahead of figures on Thursday set to show the British Gas owner made profits of £3 billion in 2022.
In contrast, homebuilding stocks were dumped across the board after analysts at Deutsche Bank signalled that a recent revival for shares had gone far enough.
The bank removed its “buy” recommendation on Taylor Wimpey and switched Persimmon to “sell”, causing shares in the pair to shed 2.65p to 119.1p and 43p to 14487p at the top of the FTSE 100 fallers board.
The downgrades also impacted Crest Nicholson and Redrow as their shares fell more than 2% in the FTSE 250, despite recent signs that demand had held up during January as affordability concerns ease.
An update from AIM-listed Brickability also countered some of the pessimism as it lifted its guidance for earnings in the year to 31 March. Shares in the company, which supplies cladding systems and roofing tiles as well as bricks, jumped 9% or 6.1p to 74.8p.
Mulberry shuts Bond Street store
Monday 13 February 2023 09:39 , Simon English
MULBERRY closed its Bond Street store today, first opened back in 1995, with a parting shot about the end of VAT free shopping. And a wider commitment to stick with London otherwise.
Tourists can no longer claim back 20% VAT, driving them to spend thousands on high end handbags and coats in Paris and Madrid instead, says the company.
It has 55 other UK stores, including a flagship on Regent Street and one in the new Battersea Power Station development, which are more geared to domestic shopping.
A Mulberry spokesperson said: “The lack of VAT-free shopping in the UK has been particularly felt on Bond Street, which has always been an iconic shopping destination for tourists. The decline in visitors has impacted footfall and sales, which taken together with the high business rates and rents has made the store commercially unviable resulting in us taking the difficult decision to close this store.”
Staff are being redeployed in other London stores.
City Comment: The big winners from the US Superbowl
Monday 13 February 2023 09:37 , Simon English
In the early hours of this morning, on this side of the pond at least, the Kansas City Chiefs triumphed in the 2023 Superbowl, a brilliant game.
The other winners include the Hunt family, one of the richest in America, who own the team.
Their estimated $20 billion fortune comes from oil in the 1930s and silver in the 1980s. The energy deals were initially funded by money that maths genius HL Hunt made from poker gambling.
They have always liked a punt.
Lamar Hunt helped set up the American Football League, acquiring what is now the Chiefs franchise (it was in Dallas originally, it’s a long story) for $25,000 decades ago.
According to Forbes, the Chiefs are now worth $3.7 billion, which is a 15 million% return on investment.
The Hunt’s also have a stake in the Major League Soccer’s FC Dallas.
Would they ponder a swoop on a UK Premier League football team?
Well, why not.
Not so long ago, the cliched joke went: how do you make a million? Start with a billion and buy a British football team.
That’s no longer true. UK football clubs, large and small, are attracting interest from all sorts of unlikely places from Hollywood movie stars down.
The buyers have noticed that our teams and the TV rights to watch them always sell for more than they did the last time.
When the US Glazer family bought Manchester United for £800 million many thought they were fools. They are now looking to sell it for five or six billion quid.
Fans who saw the Hunt’s snap up their own team should be thankful and excited. They know how to make money and win trophies at the same time.
Abrdn Smaller Companies investment firm considers its future
Monday 13 February 2023 09:27 , Simon Hunt
Shares in Abrdn Smaller Companies Income Trust jumped 15% to 282p today after the firm said it was weighing liquidating the business or pairing it with a bigger rival.
The £60 million SME investment firm, which is one-third owned by asset manager giant Abrdn, said it had begun a strategic review to consider the fund’s future including combining it with another investment trust as well as a possible cash exit for shareholders.
The business said its shares “have continued to trade at a material discount to their net asset value for a prolonged period of time [which] has created challenges…and will also restrict the Company’s ability to grow over time.”
FTSE 100 higher, Centrica shares lift 2%
Monday 13 February 2023 08:51 , Graeme Evans
London shares are struggling for direction as traders await direction from this week’s flurry of economic updates, including tomorrow’s inflation print in the United States.
The FTSE 100 index is 20.13 higher at 7902.58, with Centrica the biggest riser ahead of annual results later this week. The British Gas owner lifted 2% or 1.7p to 99.8p, a performance just ahead of the defensive stocks BAE Systems and National Grid.
Housebuilders led the fallers board, despite last week’s generally encouraging updates from the sector. Persimmon fell back 2% or 28.5p to 1462.5p and Taylor Wimpey dropped 2.1p to 119.65p.
The FTSE 250 index rose 11.91 points to 20,041.98, led by cyber security firm Darktrace after a rise of 2% or 5.6p to 245p. Crest Nicholson and Redrow topped the fallers board, with shares down 3% and 2% respectively.
On AIM, Brickability shares jumped 8% or 5.8p to 74.5p after the construction materials firm said it expects earnings for the year to 31 March to top City forecasts of £44.7 million.
Teddy Sagi aims to take ExpressVPN owner private at £1.25 billion valuation
Monday 13 February 2023 08:33 , Daniel O'Boyle
Playtech founder and Camden Market part-owner Teddy Sagi has bid to acquire the remainder of cybersecurity business Kape Technologies in a deal that would value the entire company at £1.25 billion.
Sagi’s Unikmind Holdings will pay $3.44 (£2.85) for each share of ExpressVPN owner Kape. Unikmind already holds a 54.8% stake in the business.
If the bid is accepted, Kape will delist from the London Stock Exchange’s Alternative Investment Market.
“Having weighed the pros and cons of a public listing under the current macro uncertainties and thin stock market trading as well as new growth avenues, we are firm in our view that Kape’s next chapter in its corporate journey should be within the private arena,” Sagi said.
The Kape board has currently not come to a decision on whether to recommend shareholders accept the offer.
Shares of Kape are currently trading at 290.6p, up 12% from the close of trading yesterday.
Heathrow handles over 5 million people in January
Monday 13 February 2023 07:41 , Michael Hunter
London’s busiest airport has made its busiest start to a year since 2020, handling 5.4 million passengers in January and leaving it on course for a return to pre-pandemic levels of traffic.
Heathrow also said passenger satisfaction was “at of above” levels seen before Covid, with 98% of people using the west London hub waiting less than 10 minutes for security. Border Force “successfully managed” recent strike action, and it is running a trial of the use of automated eGates for children aged 10 and 11 in Terminal 5 over half term.
It also said the half-term getaway was going “very well” and welcomed news that British Airways and Virgin Atlantic are resuming ticket sales to China as it heads pack toward getting overall traffic back to 2019 levels, before the pandemic struck.
But it faces the threat of strike action over the key Easter travel period, after security guards, engineers and firefighters with the Unite union have rejected a 10% pay increase. The union will now ballot around 3,000 people for strike action.
The airport was at the centre of controversy last year over its handling of the return of travellers after the end of Covid travel restrictions, when it was unable to meet peak-period demand without delays due to a shortage of ground staff. It introduced limits on ticket sales which ran over the peak summer period, to the frustration of airlines and travelers alike.
Heathrow CEO John Holland-Kaye said: “Heathrow is back to its best, with passenger satisfaction scores meeting or exceeding 2019 levels. We are giving a warm welcome to families over the half term getaway by delivering excellent service and bringing back the magic of travel.”
Inflation figures in focus, FTSE 100 seen higher
Monday 13 February 2023 07:39 , Graeme Evans
Inflation figures on both sides of the Atlantic will this week provide more insight into whether interest rates are near their peak.
The US inflation rate is tomorrow forecast to drop to 6.2% from 6.5% the previous month, with the UK’s seen falling on Wednesday to 10.2% from 10.5%.
Prior to the inflation print, the latest UK earnings figures will be published alongside Tuesday’s unemployment release by the Office for National Statistics. The growth rate in average earnings excluding bonuses is expected to edge up to 6.5%, with the unemployment rate forecast to be unchanged at 3.7%.
Michael Hewson, chief market analyst at CMC Markets, said: “While there were some pockets of strength there is little doubt that the UK economy remains fragile and will continue to remain so.”
In the US, markets have become increasingly jittery about the prospect of interest rates having to stay high for longer in order to ensure that the 2% inflation target is met.
This led to fresh losses for Wall Street on Friday, with the S&P 500 down 1.1% and the more rate-sensitive Nasdaq Composite off 2.4%.
The benefit of higher oil prices behind energy stocks has helped keep the FTSE 100 index near to a record high, with CMC expecting the top flight to open six points stronger at 7888.
Billionaire Jim Ratcliffe’s INEOS secures €3.5bn financing for ethylene plant
Monday 13 February 2023 07:22 , Simon Hunt
Billionaire Jim Ratcliffe’s conglomerate INEOS has raised €3.5 billion (£3.1 billion) to support the construction and operation of the most environmentally sustainable cracker in Europe.
The funding comprises €1.5 billion of uncovered debt, €1.2 billion of covered facilities from export credit agencies UKEF, Cesce and SACE; and an €800 million covered tranche of which up to €500 million is guaranteed by Gigarant (a vehicle of the Flemish Government that provides loan guarantees).
Jason Meers, CFO of INEOS Project ONE said:“Project ONE is a game changer for Europe. It will bring new opportunities to the chemical cluster in Antwerp as well as strengthen the resilience of the whole of the European chemical sector”.
The cracker, which is a plant at which molecules are broken down into hydrocarbons, will be used to prodoce ethylene, a basic chemical used in the production of plastics.
Bumper pay rises at UK firms to plug staffing gaps
Monday 13 February 2023 06:54 , Simon Hunt
UK employers are planning the biggest round of pay rises in years as they race to keep wages at pace with inflation and battle to plug staffing gaps, a survey has found.
Research by the Chartered Institute of Personnel Development (CIPD) found that expected median annual pay for 2023 rose to 5%, the highest since the organisation began collecting the data in 2012, with more than half of respondents to the CIDP’s survey complaining of having difficulties filling vacancies.
Jon Boys, an economist at CIPD, told the Reuters news agency: “Skills and labour remain scarce in the face of a labour market which continues to be surprisingly buoyant given the economic backdrop of rising inflation and the associated cost-of-living crisis.”
Recap: Top stories from Friday and the weekend
Monday 13 February 2023 06:48 , Simon Hunt
Good morning. Here are the top stories from Friday and the weekend:
The UK looks to have avoided recession in 2022 after estimates showed GDP unchanged in the final quarter of the year.
Standard Chartered shares fell 6% or 44.8p to 722.8p.after First Abu Dhabi Bank scotched speculation that it is still working on a bid for the Asia-focused lender.
Social media giant Meta has delayed team budgets as the firm is poised for a further round of job cuts, the FT reports.
The conglomerate owned by billionaire Gautam Adani has halved its revenue growth target and is seeking to pause capital expenditure in the wake of a report into alleged accounting malpractice by activist investor Hindenburg Research.
