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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
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| Upstream | LSE:UPS | London | Ordinary Share | KYG7393S1012 | ORD 0.25P (DI) |
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| 0.00 | 0.00% | 1.625 | 0.00 | 00:00:00 |
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| Last Trade Time | Trade Type | Trade Size | Trade Price | Currency |
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| - | O | 0 | 1.625 | GBX |
Upstream (UPS) Share Charts1 Year Upstream Chart |
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| Date | Time | Title | Posts |
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| 30/12/2024 | 23:28 | SHARES STRONGLY UP during DECEMBER 2024 | 510 |
| 30/11/2024 | 19:45 | SHARES STRONGLY UP during NOVEMBER 2024 | 583 |
| 31/10/2024 | 23:24 | SHARES STRONGLY UP during OCTOBER 2024 | 620 |
| 23/10/2024 | 12:35 | SHARES STRONGLY UP this week 08/01/07 | 350 |
| 30/9/2024 | 21:46 | SHARES STRONGLY UP during SEPTEMBER 2024 | 604 |
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Posted at 28/12/2024 16:16 by master rsi THG share price: shareholders vote to spin off ecommerce platformThe Times - Helen Cahill,- Friday December 27 2024, 5.00pm, The demerger is part of a plan to streamline Matthew Moulding’s beauty and wellness group and revive its share price, which has slumped since its IPO The spin-off will leave THG a simpler business focused on retail, with brands such as Illamasqua make-up THG Shareholders in Matthew Moulding’s beauty and wellness business have voted in favour of a plan to spin off its Ingenuity ecommerce platform at a valuation of £90 million. THG, formerly known as The Hut Group, will press ahead with a divestment of its technology platform after 89 per cent of voting shareholders backed the plan at a general meeting on Friday. Ingenuity provides technology to support the online operations of retailers including Holland & Barrett, The Range and L’Oréal. The division has 13 distribution centres and employs about 3,500 people. THG launched a funding round to raise capital of £95.4 million to fund the transaction, and has secured debt funding of £55 million. The company has told investors the money will be used to fund Ingenuity until its operations are no longer lossmaking. The technology platform made a loss of £140.9 million in the year ending June 30, compared with a loss of £227.6 million in the previous 12 months. Revenues for the division fell from £712.3 million to £671.4 million over the 12-month period. Mike Ashley’s retail conglomerate has taken a stake in Ingenuity by investing in THG’s fundraiser in October. Frasers Group, which owns Flannels, House of Fraser and Sports Direct, made a strategic investment of £10 million. THG also brought in funding from new shareholders and longstanding investors. Moulding co-founded THG in 2004 and listed the group on the London stock market at a £5.4 billion valuation in 2020. The company has come under pressure from activist investors to break up its business divisions following a substantial fall in its share price since its initial public offering. The demerger of Ingenuity will help to reduce THG’s debt burden as lease liabilities of £298 million will transfer to the spun-off entity. Announcing details of the transaction in November, THG said: “The demerger simplifies THG’s business model as a free cash-flow generative consumer, beauty and nutrition group, with an improved balance sheet, capital expenditure and cash-flow profile. “The board believes that there is a significant opportunity to create value for shareholders by demerging Ingenuity into a separate private company with no public listing or other trading facility for the Ingenuity shares.” |
Posted at 23/12/2024 22:21 by master rsi MARKET REPORTLONDON MARKET CLOSE: Stocks end mixed amid unfestive economic backdrop (Alliance News) - Blue chips picked up in late trading to close higher on Monday, but mid-caps faltered as investors assessed a raft of downbeat domestic economic data. The FTSE 100 index closed up 18.11 points, 0.2%, at 8,102.72. The FTSE 250 ended down 31.60 points, 0.2%, at 20,419.09, and the AIM All-Share closed up 1.84 points, 0.3%, at 712.44. The Cboe UK 100 ended up 0.1% at 812.53, the Cboe UK 250 closed down 0.4% at 17,876.94, and the Cboe Small Companies ended up 0.5% at 15,866.67. Figures from the Office for National Statistics showed the UK economy ground to a standstill in the third quarter of 2024. The ONS said that in the three months ended September 30, real GDP growth was zero compared to the second quarter, revised down from the first estimate increase of 0.1% growth. Economists had expected growth to remain unchanged at 0.1%. Laith Khalaf at AJ Bell, said: "This is unfestive news for the chancellor and the prime minister, who have promised to get the UK growing again. Clearly the government can't be expected to turn on the taps of the whole economy in its first three months, but the fact GDP has flatlined does outline the scale of the problem." Looking ahead, Elliott Jordan-Doak at Pantheon Macroeconomics expects GDP growth to rebound to 0.2% quarter-to-quarter in the three months to December. He then predicts growth next year to average a "healthy" 0.4% quarter-to-quarter. "Real disposable income growth will slow next year, but we think the saving rate dropping to 10.1% in the third quarter, from 10.3% in the second quarter shows that consumers are content with their levels of savings, and that the saving rate dropping further will support consumption growth in 2025." Meanwhile, UK businesses issued a stark warning to Chancellor Rachel Reeves that the economy is "headed for the worst of all worlds" with activity expected to fall sharply in the first three months of 2025. A survey by the Confederation of British Industry found firms expected to reduce both output and hiring. The chancellor's hike to employers' national insurance, set to rake in around GBP25 billion a year, was highlighted as one of the reasons for the gloomy outlook. Alpesh Paleja, the CBI's interim deputy chief economist, said: "There is little festive cheer in our latest surveys, which suggest that the economy is headed for the worst of all worlds – firms expect to reduce both output and hiring, and price growth expectations are getting firmer. "Businesses continue to cite the impact of measures announced in the Budget – particularly the rise in employer NICs – exacerbating an already tepid demand environment." Completing a trio of downbeat reports, confidence in the UK economy among consumers is waning, according to the British Retail Consortium. The BRC consumer spending monitor for December showed a drop in public confidence in the state of the UK economy, while plans for personal spending also fell. The personal financial situation index remained in negative territory, though steady, at minus 3 points, BRC said. However, the index for the state of the economy fell to negative 27 points in December from negative 19 in November, and the overall personal spending index fell to negative 3 points from positive 3. AJ Bell's Khalaf added: "All in all it's a pretty dreary economic picture as we enter the new year. The latest readings and forecasts also somewhat put the kibosh on the idea that the UK might reap an economic dividend from the political stability provided by a new government with a strong majority. Then again, we don't know whether the alternatives might have been worse for the economy." The pound was quoted lower at USD1.2525 at midday on Monday in London, compared to USD1.2549 at the equities close on Friday. The euro stood at USD1.0399, unchanged. Against the yen, the dollar was trading higher at JPY157.12 compared to JPY156.58 on Friday. In European equities on Monday, the CAC 40 in Paris ended little changed, and the DAX 40 in Frankfurt shed 0.2%. In New York, stocks were mixed. The DJIA was down 0.4%, the S&P 500 index was 0.1% higher, and the Nasdaq Composite rose 0.5%. Back in London, Direct Line rose 4.0% after agreeing a GBP3.7 billion takeover by London-based insurer, Aviva. The cash-and-shares bid values each share in Bromley-based Direct Line at 275p each. Direct Line shareholders will receive 0.2867 of an Aviva share, 129.7p in cash, and up to 5p in dividend payments for each Direct Line share held. Aviva Chief Executive Amanda Blanc said the deal is "excellent news" for the customers and shareholders of Aviva and Direct Line. "It builds on our track record of delivering four years of strong financial performance and, in line with our strategy, it accelerates our growth in capital-light business." Aviva expects earnings per share accretion of around 10% once pretax cost synergies of GBP125 million are fully realised, with underlying EPS accretion expected from the first full year post-completion. FTSE 100-listed Aviva rose 0.7%. Airtel Africa led the FTSE 100 risers, up 3.7%, after launching an up to GBP100 million share buyback. The telecommunications and mobile money services provider in 14 countries in Africa aims to complete the buyback by April 24. It started the programme with a USD50 million first tranche. A previous USD100 million buyback was launched in March and completed in October. AstraZeneca climbed 1.6% after receiving approval in the European Union for Tagrisso, its non-small cell lung cancer treatment. The Cambridge-based pharmaceutical company said the approval followed its Laura phase 3 trial, which demonstrated that Tagrisso extended the median progression-free survival for adult patients to more than three years. It also reduced the risk of disease progression or death by 84% compared to a placebo. Elsewhere, Petrofac fell 20% after entering a binding lock-up agreement with key creditors on the terms of a "comprehensive restructuring" of its debt. The restructuring includes material dilution "while preserving some value" for existing shareholders; upsizing a new equity issuance by up to USD25 million; a retail offering worth around USD8 million in 2025; and converting about USD772 million of existing debt into equity. Meanwhile, Seeing Machines climbed 4.5% after it announced a significant investment from, and collaboration with, Mitsubishi Electric Mobility Corp. Canberra-based Seeing Machines designs artificial intelligence-powered operator monitoring systems to enhance transport safety. It said it secured a GBP26.2 million strategic investment as part of a collaboration agreement. The investment, via a subscription for shares at 4.09 pence each, is worth around 15% of Seeing Machines' share capital. Peel Hunt anticipates this investment secures around 18 months of runway for Seeing Machines, by which time the company aims to be cash generative. "Even if this timeline slips due to weaker-than-expected OEM manufacturing, we estimate Seeing Machines will have a significant cash buffer," the broker added. Brent oil was quoted at USD72.09 a barrel at the London equities close Monday, down from USD72.71 late Friday. Gold was quoted at USD2,611.83 an ounce at the London equities close Monday, lower against USD2,627.90 at the close on Friday. |
Posted at 20/12/2024 20:40 by master rsi US consumer confidence edges up in December, inflation expectations mixedBOO 33.14p (0.40 / 1.22%) --- FRAS 626.50p(17.00 / 2.79%) boohoo Group PLC on Friday said its shareholders "overwhelmingly" voted against the resolutions put forward by Frasers Group PLC in its much anticipated general meeting. The Manchester, England-based owner of PrettyLittleThing and Debenhams said for the first resolution, that Frasers founder Mike Ashley be appointed as a director of the company, 63.77% of votes were cast against the proposal. For the appointment of insolvency expert Mike Lennon, shareholders were matched in their opposition, with 63.76% of votes cast against the resolution. Sports Direct owner Frasers has a 27.04% holding in boohoo. The result follows recommendations provided by proxy advisers Institutional Shareholder Services Inc and Glass Lewis earlier this month in which where they recommended shareholders veto the proposals. The fast fashion retailer has been subject to a persistent campaign to appoint Ashley and Lennon to its board since October, when Frasers requisitioned the general meeting in response to what it claimed is "continued value destruction" by the boohoo board as it cited an "abysmal trading performance and share price collapse". The two firms have been trading barbs ever since, with former boohoo Chief Executive John Lyttle stepping down in the midst of the ongoing developments. Newly appointed boohoo Chief Executive Dan Finley said: "Our group is a dynamic business, with great brands and extremely talented people, underpinned by best-in-class infrastructure. Since my appointment, I have hit the ground running, taking immediate and decisive actions to maximise and unlock value for all shareholders. Shares in boohoo were up 0.7% to 32.98 pence on Friday afternoon in London. Frasers shares were up 1.8% to 620.26p. |
Posted at 17/12/2024 12:49 by master rsi MARKET REPORTLONDON MARKET MIDDAY: Stocks down as BoE sure to "hold rates steady" (Alliance News) - Stock prices in London were still in the red at midday on Tuesday, following the morning's UK unemployment and eurozone trade data. For the rest of the week, Hargreaves Lansdown's Matt Britzman said: "Rates are expected to hold firm in the UK later in the week, while the US looks all but certain to cut on Wednesday." The UK Office for National Statistics reported that unemployment in the three months to the end of October remained unchanged on-month at 4.3%. However growth in average earnings including bonuses picked up to 5.2%, easily beating the FXStreet-cited consensus of 4.6%. "A sluggish economy isn't exactly providing the fuel for job creation and realised fears about potential tax rises in the Budget have made employers cautious," warned AJ Bell's Danni Hewson. "These figures are backwards looking, but recruiters have said they are situated in the crow's nest to provide a sort of early warning system. "Their concerns about a potential recession on the horizon were given further weight by the latest PMI data which showed the private sector cut jobs at the fastest rate in four years this December as businesses reacted to tax changes." "Adjusted for inflation, real wages continued to climb, but the stronger print has all but assured the Bank of England will hold rates steady on Thursday, with markets pricing in a 93% chance of no change," Britzman predicted. "Investors are now in wait-and-see mode, watching whether the labour market cools in the wake of the Budget, with February's rate cut prospects looking like a coin toss." The FTSE 100 index was down 57.51 points, 0.7%, at 8,204.54. The FTSE 250 was down 207.89 points, 1.0%, at 20,605.14, and the AIM All-Share was down 6.05 points, 0.8%, at 723.44. The Cboe UK 100 was down 0.6% at 823.69, the Cboe UK 250 was down 1.2% at 18,102.93, and the Cboe Small Companies was down 0.2% at 16,034.75. Bunzl remained the FTSE 100's biggest loser, down 5.9%. This was despite its trading statement celebrating another year of "significant progress", but which cautioned that continuing price deflation will have a "slight" impact on annual profitability. "It's rare to see Bunzl doing anything other than plod along so a warning from the distribution company has caught the market by surprise, explained AJ Bell's Hewson. "The company says stickier than expected deflation will hit profit and that’s upset the share price...a deflationary environment can act as a headwind if it has already bought a lot of stock at higher prices and has to sell them for less than originally expected." Chemring was the worst FTSE 250 performer, dropping 10% despite its annual results including profit and revenue rises, as well as higher dividends. "At a time when much of its peer group is benefiting from an increase in global security risks and instability, defence outfit Chemring continues to shoot itself in the foot," Hewson remarked. "While there were several positives in the company’s full-year results, fall in underlying profit margins did not go unnoticed by the market." She added: "To put its share price underperformance into context, since the invasion of Ukraine by Russia in early 2022, BAE Systems shares have more than doubled, while Chemring is up just 30%." Among small caps, Capita fell 8.9%. It said its 2024 outlook for adjusted operating profit was unchanged, and that it was "increasingly confident" in delivering its medium-term operating margin target of 6% to 8%. However, it claims to expect around GBP20 million in additional annual costs due to planned national insurance increases. Moreover, Hewson said, Capita "guided for up to GBP140 million of free cash outflow in 2024 as a result of lower revenues and a change in approach to managing its working capital. It also guided for a hit to free cash flow in its new year, completing a barrage of bad news that left investors shaking their heads in disappointment." Technology Minerals had a much better day, as its shares more than tripled. The stock was restored to trading in London on Thursday. The firm also announced that its 48%-owned subsidiary Recyclus has signed a black mass offtake deal with Glencore. In European equities on Tuesday, the CAC 40 in Paris was up 0.3%, while the DAX 40 in Frankfurt was up 0.2%. The eurozone's international trade surplus contracted in October, figures from Eurostat showed, shrinking to EUR6.8 billion from EUR9.4 billion a year ago and contracting on-month from EUR11.6 billion in September. The monthly reduction was mostly due to a reduced surplus for chemical and related products, which contracted to EUR19.2 billion from EUR21.7 billion. Exports grew annually by 2.1% in October to EUR254.0 billion, with imports up by 3.2% to EUR247.2 billion. The pound was quoted slightly higher at USD1.2698 at midday on Tuesday in London, compared to USD1.2694 at the equities close on Monday. The euro stood lower at USD1.0491, against USD1.0504. Against the yen, the dollar was trading lower at JPY153.81 compared to JPY154.23. Stocks in New York were called mostly lower. The Dow Jones Industrial Average was called down 0.3%, the S&P 500 index down 0.2%, and the Nasdaq Composite up 0.1%. Brent oil was quoted lower at USD73.35 a barrel at midday in London on Tuesday from USD73.82 late Monday. "Hopes for a rebound in consumption were tempered by weak economic data from China, while forecasts of oversupply next year kept a lid on further gains," commented Hargreaves Lansdown's Britzman. "Still, ongoing geopolitical tensions and anticipation of the US Federal Reserve's final rate decision, where a rate cut is widely expected, helped keep oil prices steady." Gold was quoted at USD2,640.55 an ounce against USD2,650.30. Still to come on Tuesday's economic calendar, the US releases retail sales, industrial production and the Redbook index reading. |
Posted at 13/12/2024 22:30 by master rsi MARKET REPORTLONDON MARKET CLOSE: Ofcom floats fee reductions for mobile networks (Alliance News) - Stock prices in London closed lower on Friday, with US import and export prices showing sharp increases and the UK government planning new measures to support onshore wind farm projects. In UK news, ministers will be given new powers to drive forward clean power energy projects as part of a major action plan to reach 95% clean energy in the UK by 2030. Speaking to BBC Breakfast, Miliband confirmed that ministers will be able to have the final say on approving onshore wind turbines across the UK. These decisions have previously been left to councils but strict planning rules introduced by the Conservative government in 2015 meant local opposition has often stalled or blocked projects from moving ahead. Import and export prices in the US rose at a sharply higher level in November than in October, data published by the Bureau of Labor Statistics showed Friday. US export prices grew 0.8% on-year in November, up sharply from just 0.1% in October. This was the largest on-year increase since July, when it was at 1.2%. Monthly however, US export prices remained stable in November, compared to 1.0% growth in October. US import prices meanwhile rose 1.3% on-year in November, up from 0.6% in October. It was also the sharpest increase since July, when it was at 1.7%. Monthly US import prices edged up by 0.1% in November, the same pace as in October. Thomas Ryan at Capital Economics said: "The tame November price data has soothed concerns about a resurgence in price pressures, giving the green light for the Fed to cut interest rates by 25bp at next week's meeting." In other local news, mobile network companies in the UK could see their costs reduced by about GBP40 million a year after Ofcom proposed cutting some of the annual fees it charges them. Currently, the regulator currently makes companies such as BT Group and Vodafone Group pay annual licence fees to use certain radio frequencies, known as spectrum bands. Those come to about GBP320 million per year and are paid to the Treasury. BP closed down 0.4%, while Vodafone closed up 0.5%. The wider FTSE 100 index closed down 11.43 points, 0.1%, at 8,300.33. The FTSE 250 ended down 59.89 points, 0.3%, at 20,889.15, and the AIM All-Share closed down 3.98 points, 0.5%, at 733.58. The Cboe UK 100 ended down 0.2% at 832.91, the Cboe UK 250 closed down 0.4% at 18,385.51, and the Cboe Small Companies ended down 0.8% at 16,147.73. Resolute Mining closed 0.7% lower. The Africa-focused gold miner said Chief Executive Terry Holohan is taking a leave of absence, effective immediately and lasting until January 31. Chief Financial Officer Chris Eger is filling in as CEO during this time, with Financial Controller Dave Jackson becoming acting CFO. This follows the detaining and subsequent release of Holohan and two employees last month by the Mali authorities amid a tax dispute. Cordiant Digital Infrastructure gained 1.8%. The UK-based investor in specialist digital infrastructure said Chair & Co-Founder Steven Marshall purchased 1.0 million shares on Wednesday, at an average price of 90.7 pence, increasing his holding to 11.7 million shares. Outside of the stock markets, the UK Competition & Markets Authority on Friday revealed it was starting an investigation into the planned takeover of Preqin Ltd, a privately-held London-based data firm, by BlackRock. New York City-based BlackRock back at the end of June announced it planned to buy Preqin for GBP2.55 billion in cash. BlackRock said the transaction is expected to close before the year-end in 2024. In European equities on Friday, the CAC 40 in Paris ended down 0.2%, while the DAX 40 in Frankfurt ended down 0.2%. President Emmanuel Macron on Friday named centrist leader Francois Bayrou as prime minister, handing him the daunting task of hauling France out of months of political crisis. The 73-year-old head of the MoDem group, which is allied to Macron's party, was appointed nine days after parliament ousted Michel Barnier's government in a historic no-confidence vote following a standoff over an austerity budget. Bayrou's appointment sparked immediate criticism, with the hard-left France Unbowed, LFI, party and the Greens threatening to back a new motion of censure aiming to bring down his government. German companies have significantly scaled back their investment plans due to structural issues and economic uncertainty, a survey by a leading think tank revealed. The ifo Institute's survey showed a steep decline in investment expectations, falling to minus 9.0 points in November compared to minus 0.1 in March. "Due to the structural location problems and high level of uncertainty regarding the economic policy framework, companies are holding back on their investments," says ifo economic expert Lara Zarges. The pound was quoted lower at USD1.2620 at the London equities close Friday, compared to USD1.2698 at the close on Thursday. The euro stood slightly higher at USD1.0494 at the European equities close Friday, against USD1.0491 at the same time on Thursday. "The EUR/USD outlook remains negative, however, even if ECB President Christine Lagarde was not as dovish as some might have expected given the political and economic situations in the Eurozone," said FOREX.com's Fawad Razaqzada. "Investors are looking forward to potentially the last important week of the year next week, where the Fed and a few other central banks are set to deliver their rate expectations." Against the yen, the dollar was trading higher at JPY153.64 compared to JPY152.22 late Thursday. Stocks in New York were mostly lower at the London equities close, with the DJIA up 1.46 points, the S&P 500 index down 0.1%, and the Nasdaq Composite down 0.3%. Brent oil was quoted higher at USD73.94 a barrel at the London equities close Friday from USD72.61 late Thursday. In Middle East news, Israeli Defence Minister Israel Katz has ordered the military to "prepare to remain" throughout the winter in the UN-patrolled buffer zone that is supposed to separate Israeli and Syrian forces on the Golan Heights. Israel seized the demilitarised zone on the strategic plateau on Sunday, just hours after Syrian rebels swept president Bashar al-Assad from power and drawing international condemnation including from the United Nations. The peacekeeping force UNDOF said it had informed Israel it was in "violation of the 1974 disengagement agreement", referring to the armistice between Syria and Israel that created the buffer zone. Gold was quoted lower at USD2,660.10 an ounce at the London equities close Friday against USD2,681.37 at the close on Thursday. In Monday's UK corporate calendar, Videndum releases a trading statement. For the economic calendar, Monday's packed schedule includes flash composite PMI for Australia, the eurozone and the UK; unemployment and retail sales for China; and the New York Empire State manufacturing index. |
Posted at 12/12/2024 08:33 by master rsi LONDON BRIEFING: Currys says price hikes "inevitable" after UK budget(Alliance News) - London's FTSE 100 is called to open higher on Thursday, ahead of an expected European Central Bank rate cut, while tech shares in New York enjoyed a rip-roaring rise overnight. A US inflation reading for November, although hotter than the previous month, cemented expectations of a Federal Reserve rate cut next week. Numbers showed the pace of US consumer price inflation picked up to 2.7% in November, from 2.6% in October. "The report lacked surprises. This scenario has reinforced the perception that monetary policy could continue to normalize toward 2025, despite potential uncertainties linked to the new administration of Donald Trump, whose proposals, such as tariffs, could impact inflation dynamics," Pepperstone analyst Quasar Elizundia commented. "Looking ahead, investors will turn their attention to the Fed meeting next week, seeking clues about the monetary policy path for 2025. While the possibility of further rate cuts remains high, Fed Chair Jay Powell has emphasized a relatively cautious approach." Before the Fed decision next week, the ECB is expected to cut on Thursday afternoon. Swissquote analyst Ipek Ozkardeskaya commented: "The ECB is expected to deliver another 25bp cut at today's meeting. Some have been expecting the ECB to do more than that. Since Donald Trump won the US presidential election, the increased risks on European economies due to tariff threats brought some investors and analysts to bet for a 50bp cut as an immediate reaction. Others, like me, think that the ECB would better deliver a cautious 25bp cut today AND shift its focus from inflation to growth, as doing so will open the way for a series of rate cuts instead of a jumbo cut that the zone doesn't need in a hurry." Here is what you need to know at the London market open: MARKETS FTSE 100: called up 0.2% at 8,315.42 ---------- Hang Seng: up 1.3% at 20,424.48 Nikkei 225: up 1.2% at 39,849.14 S&P/ASX 200: down 0.3% at 8,330.30 ---------- DJIA: closed down 99.27 points, 0.2%, at 44,148.56 S&P 500: closed up 0.8% at 6,084.19 Nasdaq Composite: closed up 1.8% at 20,034.90 ---------- EUR: higher at USD1.0522 (USD1.0490) GBP: higher at USD1.2777 (USD1.2746) USD: lower at JPY152.44 (JPY152.49) GOLD: higher at USD2,719.37 per ounce (USD2,716.47) (Brent): higher at USD73.67 a barrel (USD73.05) (changes since previous London equities close) ---------- ECONOMICS ---------- Thursday's key economic events still to come: 13:15 GMT eurozone interest rate decision 11:00 GMT Ireland CPI 13:30 GMT US initial jobless claims 13:30 GMT US PPI ---------- Prime Minister Keir Starmer will meet European Council President Antonio Costa as he continues efforts to "reset" the UK's relationship with the EU. The prime minister's meeting with Costa comes just days after Chancellor Rachel Reeves joined European finance ministers in Brussels. Starmer and Costa are expected to meet in Downing Street on Thursday afternoon to discuss the prime minister's hopes for a closer relationship with the EU after the acrimony of the Brexit battles. Details of Costa's trip to London were published on the European Council's website. On Monday, Reeves told her eurozone counterparts she wanted to "rebuild those bonds of trust that have been fractured in the last few years under the previous government and to show our friends, neighbours and allies in the EU that we want a reset of those relationships". As well as the post-Brexit relationship, the talks between Starmer and Costa could cover wider global issues including the situation in Syria. ---------- UK house prices will register an increase next year, property portal Rightmove predicted, with London set for a bumper year of growth too amid a boost from rate cuts. Rightmove said 2025 is set to be a "buyers market" as the firm revealed five housing market predictions for next year. According to the FTSE 100-listed property portal, national average asking prices will rise by 4% in 2025 - the firm's largest price growth prediction since 2021 - with around 1.15 million transactions expected. However, with the average number of homes available per estate agent branch at its highest for 10 years, buyers are "often spoilt for choice", the firm added. This feeds into its expectation of strong competition remaining for sellers, which will likely contribute towards preventing higher price growth, with it noting that "2025 is set to be a buyers market". Rightmove also anticipates that next year will mark the start of a turning point for house prices in London, which it notes have been lagging, with asking prices in the capital up 12% compared with 21% in Great Britain as a whole compared with 5 years ago. It expects London price growth to either match or be marginally ahead of national price rises. Four base rate cuts in 2025 are expected to drive a decline in average mortgage rates to around 4.0% from the current five-year and two-year fixed rates of 4.83% and 5.08% respectively. ---------- House price growth in the UK has been gaining momentum but mortgage rates may curtail the recovery in housing market activity "before long", according to surveyors. A net balance of 25% of property professionals reported house prices rising in November, increasing from a balance of 16% observing a rise in October, the Royal Institution of Chartered Surveyors said. The findings mark the fourth consecutive month of rising prices. Professionals expect house prices to continue rising over the next three and 12 months, the report said. New buyer inquiries and new instructions to sell properties also increased in November, although the volume of sales being agreed remained broadly unchanged, Rics said. A net balance of 19% of professionals predict an increase in sales activity over the next three months. But market appraisals in November were on par with levels one year ago, which could signal a potential slowdown in the pipeline of new listings moving into 2025, the report added. ---------- BROKER RATING CHANGES UBS raises Diageo to 'buy' (sell) - price target 2,920 (2,300) - pence ---------- Barclays raises Pennon to 'overweight' (equal-weight) - price target 800 (690) - pence ---------- COMPANIES - FTSE 100 London Stock Exchange Group said it has sealed a deal to sell its stake in Euroclear. LSEG will net EUR455 million from the sale of a 4.9% stake in the clearing and settlement services provider. The stake is being sold to TCorp, "the financial services partner to the New South Wales government". COMPANIES - FTSE 250 Currys left its yearly guidance unchanged but the electricals retailer hit out at "unwelcome headwinds from UK government policy". Currys predicted that measures announced in the UK government budget are "likely to add around GBP32 million of annual cost to our business". "We will seek to mitigate as much of this as possible through cost saving measures including process improvement, automation, offshoring, outsourcing and other overhead efficiencies. Some price rises are also inevitable. We will further update on this in due course," it added. Currys said its trading performance "continues to strengthen, with profits and cashflow growing significantly". Its pretax loss in the half-year to October 26 narrowed to GBP10 million from GBP44 million. Revenue improved 1.3% to GBP3.92 billion from GBP3.87 billion a year prior. Chief Executive Alex Baldock said: "In the UK&I, we made big improvements to both Online and Stores channels, customers continued to take more of the solutions and services that are valuable to them and to us, and such growth drivers as B2B and iD Mobile performed well. All this showed in growing sales, market share, gross margins and profits. In the Nordics, we gained market share, increased gross margins, tightly controlled costs and grew profits in a still-tough consumer environment." Currys still expects to see growth in profit and free cash flow this year, with the firm leaving annual guidance unmoved. Baldock added: "This is despite new and unwelcome headwinds from UK government policy. These will add cost quickly and materially, depress investment and hiring, boost automation and offshoring, and make some price rises inevitable. Still, there's plenty we can control, including mitigating much of this headwind. We'll keep colleague engagement world class, customer satisfaction increasing, cashflow growing for shareholders, and playing an ever-bigger role in society. We have growing momentum at Currys." ---------- SThree warned tough market conditions are expected to continue in its new financial year, but the recruiting company announced a GBP20 million share buyback. SThree, focused on the science, technology, engineering and mathematics fields, said net fees declined 12% in the year to November 30 to GBP369.1 million from GBP418.8 million. At constant currency, net fees fell 9%. "As has been widely reported across our industry, the past year has been characterised by protracted challenging market conditions which have impacted new business activity," CEO Timo Lehne said. "It is our specialism in STEM and Contract, combined with careful cost management, that has delivered a resilient performance, with FY24 expected to be in line with market consensus." It puts market consensus for pretax profit at GBP67.4 million, which would represent a 13% fall from the GBP77.9 million achieved in financial 2023. Looking to the new year, it is making the "prudent assumption" that tough market conditions will persist, hurting net fees. It now expects pretax profit of GBP25 million for financial 2025, down more than 60% from what it expects for the year just gone. SThree announced it plans to launch a new buyback of GBP20 million to be completed over the next six months. "In light of SThree's cash generation and strong balance sheet, the board considers it prudent to launch the buyback, in line with its stated capital allocation policy," SThree added. ---------- Drinks company C&C Group said it has named the former boss of Irn-Bru maker AG Barr as its new chief executive, with effect next month. Roger White joins C&C as CEO from January 20. Ralph Findlay will return to his position of non-executive chair "following a short period of transition" after White joins. Back in June, C&C said Patrick McMahon would step down as chief executive, to take responsibility for accounting errors made during his tenure as chief financial officer. The company, behind brands including Bulmers, noted White was CEO of AG Barr from 2002 until May 2024. ---------- Auction Technology Group shareholder TA Associates will sell its entire stake in the company. Through various sub-funds, TA will sell 15.3 million shares in the auction market operator at GBP5.50 each, netting some GBP84.4 million. The shares represent all of TA's near-13% holding in Auction Techhnology. Auction Technology will receive no proceeds from the sale. In addition, TA representative Non-Executive Director Morgan Seigler will step down from the Auction Technology board following the sale. Seigler, co-head of TA's EMEA Technology board, joined the Auction Tech board when the company was acquired by TA in 2019. The sale is expected to take place next week Friday. TA had sold a 5% stake in Auction Technology back in June, netting some GBP32 million. OTHER COMPANIES Gas, oil and renewable energy projects firm Parkmead Group will sell its UK offshore oil licences and Dutch onshore gas licences to Serica Energy for up to GBP134 million. North Sea-focused oil and gas firm Serica will pay an initial GBP5 million, with a further GBP9 million in deferred payments to be paid in stages over the next three years. In addition, there will be contingent payments related to development milestones relating to the the Skerryvore prospect and the Fynn Beauly oil discovery. Including the initial payment, the deferred sum and the contingent considerations, the deal could be worth GBP134 million in total. Parkmead is selling its subsidiary Parkmead (E&P), which houses its UK offshore oil licences together with Netherlands onshore gas licences. Parkmead (E&P) includes a 50% working interest in Skerryvore and 50% of Fynn Beauly. Serica believes the deal "provides optionality regarding future projects, simplifies decision making, and provides strategic flexibility" in regard to its position in Skerryvore. It will be the operator of the asset with a 70% stake when the deal concludes. It had already owned a 20% interest. ---------- Parkmead Group will "continue to hold all its other energy assets". "These include its revenue generating portfolio of onshore gas fields in the Netherlands and, in the UK, its operated Kempstone Hill Wind Farm and its potential solar and wind energy development projects at Pitreadie," it added. The firm added: "Parkmead has been carefully considering the outlook for its UK North Sea oil licences, and the potential capital requirements needed were they to be progressed through appraisal and development. The offshore sector is facing continuing challenges in the form of the current political environment towards UK oil & gas, and the focus of the UK government on its net zero strategy. In this context, Parkmead believes that the opportunity to progress these UK North Sea oil licences would be best served within the portfolio of a larger, North Sea focused company, enabling Parkmead to apply its expertise and the company's resources on growing its Netherlands gas assets and its projects in renewable energies." |
Posted at 10/12/2024 11:36 by master rsi UK households warned of potential further energy bill rises in April(Alliance News) - Households in the UK could be in for yet another rise in energy costs from April as market "turbulence" and price cap reforms feed through to bills, analysts say. The latest forecast from Cornwall Insight suggests that the energy price cap could rise to GBP1,762 a year for a typical dual fuel consumer, a 1.4% increase from the cap of GBP1,738 that comes into effect on January 1. Cornwall Insight said the forecast reflected the economic and geopolitical factors influencing wholesale prices. It warned that continued uncertainty regarding the future of the Russia-Ukraine conflict and its implications for gas supplies to Europe was now playing out against the second Donald Trump presidency and its impact on gas exports from America. Meanwhile, new energy network charges and other costs was also compounding an increase in the underlying costs of electricity and gas. There was also the prospect of reforms adding extra costs to the cap, which could add at least another GBP20 to annual bills, Cornwall said. Factoring in the proposed reforms, forecasts suggested the cap could rise to around GBP1,782, or a 2.5% increase from January. Prices are still expected to fall in July next year. Craig Lowrey, principal consultant at Cornwall Insight, said: "Energy bills in 2025 are shaping up to reflect a perfect storm of regulatory changes and market turbulence, in addition to any broader sector reforms put forward by the new government. "While the wholesale market will remain a key driver of prices, Ofgem's reforms and the introduction of new charges could raise costs further for households. "There are a lot of unknowns, and while significant rises in price are currently unlikely, the scale of any increases will depend on how the market and the reforms unfold." Lowrey added: "What we do know is that the market is unlikely to lower bills, and affordability and fuel poverty will continue to be a pressing issue. "This underscores the need for policymakers and suppliers to prioritise supporting vulnerable consumers." Ben Gallizzi, energy spokesman at Uswitch.com, said: "This predicted rise in April's price cap would mark a third consecutive hike for energy prices, adding to the current pain for households. "This increase could mean the average household on a standard variable tariff would pay 1% more on their rates from April – on top of the 1% increase in January that we're yet to pay. "This is an early prediction so this 1% rise isn't guaranteed, but energy prices remain uncertain. "There are now a range of fixed deals available that are significantly cheaper than the predicted price cap for January, so it is well worth running a comparison to see how much you could save. "Right now, the average household could save up to GBP112 per year against the current price cap by switching to a twelve month fixed deal. "Consumers who are worried about paying their energy bill should check what energy help they are eligible for, and contact their supplier who may be able to offer support." |
Posted at 09/12/2024 23:29 by master rsi Broker tips: Berkeley, Marlowe, AJ Bell, Ashtead, Touchstone Exploration(Sharecast News) - RBC Capital Markets has cut its target price for Berkeley Group and reiterated an 'underperform' rating, saying that while the long-term picture looks intact, it has cut its forecasts for shareholder returns. RBC lowered its target price from 4,950p to 4,700p for the stock following the housebuilder's guidance last week for shareholder returns of at least £2bn over the 10 years to 2035. RBC also cut its estimates for returns over 2026, 2027 and 2028. Up until last week, when the housebuilder announced its new 10-year strategy (Berkeley 2035), the company had been cutting back on land purchases due to a stricter planning and regulatory environment, choosing to return more cash to shareholders. However, with the new government being pro-growth and pro-housebuilding, Berkeley has "got its mojo back and is doing what is does best - buying land and optimising planning today to deliver higher profits tomorrow", RBC said. "Whilst some have grumbled at the implied reduction in shareholder returns in the first half of Berkeley 2035, in our view they are missing the fact that big cash returns today shrink the business and reduce the returns of tomorrow-you can have too much of a good thing," the broker said. Analysts at Berenberg slashed their target price on business-critical services and software firm Marlowe from 710.0p to 400.0p on Monday following the group's interim results on 5 December. Berenberg noted that Marlowe's H1 results covered the transformational divestment of its GRC assets in June and the demerger of its occupational health division in September, with both deals realising shareholder value, as well as leaving "a more focused group" with high earnings quality, derived from non-discretionary, regulatory-driven services of its remaining testing, inspection and certification business. "Marlowe's H1 results confirm that the TIC business has continued to deliver mid-single-digit organic growth from strong market positions in fire services (where it is the UK's number three player with a 3% market share) and water services (the number one player with a 4% share)," said Berenberg, which reiterated its 'buy' rating on the stock. The German bank also stated Marlowe's H1 results signified in-line trading, meaning that its continuing operations forecasts remained largely unchanged - save for buyback updates. Marlowe added that post-demerger, Marlowe trades on a target 9x FY26E enterprise value to underlying earnings multiple, still reflecting a discount to larger, more liquid peers. Shore Capital upgraded AJ Bell on Monday to 'buy' from 'hold' following share price weakness. "Our earnings per share forecasts are unchanged after FY24A results, despite increasing costs as investment for long-term growth accelerates," it said. "We were reassured by AJB's comments around the impact to AuA from changes to pensions tax following the Budget." Shore continues to expect volatility in assets under administration movements when AJB reports first-quarter trading on 30 January. However, it said the long-term imperative for individuals to save for retirement remains, regardless of tax on unused pensions. Shore said: "With a largely recurring revenue profile and sticky customer base, earnings quality is high, underpinned by a scalable platform with margin expansion potential providing significant growth optionality. "With EPS forecast to grow at a compound 10% from FY24A-27F, FY25F price-to-earnings at more than 20x, and a progressive dividend, we raise fair value to 525p (from 465p) and our recommendation to buy." Deutsche Bank downgraded its stance on equipment rental firm Ashtead on Monday to 'hold' from 'buy' as it said the stock was trading close to its 6,500p price target. The bank said it remains positive about the long-term prospects for Ashtead, which is the second-largest equipment rental operator in the US. It said Ashtead benefits from a structural shift from buy to rental and it believes the larger sector operators will benefit from scale and high service levels to customers and could also benefit from an acceleration in re-shoring activity as a result of Trump's presidency. As far as the valuation is concerned, DB noted the shares are trading on a calendar 2025 estimated price-to-earnings of around 18x and EV/EBITDA of 8.1x. Deutsche said downside risks include a loss of key management, a more challenging period of construction activity, greater competition and an inability to recruit skilled labour. Upside risks include an improvement in non-residential markets and an acceleration in broader re-shoring activity. Analysts at Canaccord Genuity lowered their target price on oil and gas business Touchstone Exploration from 60.0p to 90.0p on Monday but said there was "still plenty of upside" to the stock despite recent changes in production guidance. Following Touchstone's guidance for the remainder of FY24, and FY25, Canaccord said it had revised its forecasts to better reflect lower production expectations fuelled by higher decline rates from the company's Ortoire licence. "We still see considerable value in Touchstone, with our new target price representing a circa 110% upside to Friday's close," said Canaccord. "However, we acknowledge the lower-than-anticipat Touchstone issued updated guidance for FY25, with a new production range of 6,700-7,300 barrels of oil per day. Alongside this, Canaccord Genuity has new capex expectations of roughly $23.0m in 2025, resulting in operating cash flow of approximately $22.0m and an FY25 year-end net debt of around $30.0m. "We reduce our estimated FY25e production to circa 7,000 boepd from our previous circa 15,000 boepd that assumed a far slower decline from the Cascadura 1ST1 and Deep wells, and we have also taken a more conservative approach to modelling any future Ortoire wells," added the Canadian bank, which reiterated its 'speculative buy' rating on the stock. |
Posted at 06/12/2024 22:31 by master rsi MARKET REPORTLONDON MARKET CLOSE: Stocks mixed but US rate cut seen after jobs data (Alliance News) - London's FTSE 100 closed lower on Friday, hurt by weak utilities stocks, as investors assessed a mixed US jobs report. The FTSE 100 index closed down 40.77 points, 0.5%, at 8,308.61. The FTSE 250 ended up 57.94 points at 21,059.00, and the AIM All-Share closed up 1.30 points, 0.2%, at 738.22. The Cboe UK 100 ended down 0.5% at 834.32, the Cboe UK 250 closed up 0.3% at 18,536.44, and the Cboe Small Companies ended up 0.8% at 16,210.46. For the week the FTSE 100 rose 0.3%, the FTSE 250 gained 1.4% and the AIM-All Share climbed 1.1%. In European equities on Friday, the CAC 40 in Paris ended up 1.3%, boosted by strength in luxury goods stocks. The DAX 40 in Frankfurt ended up 0.1%. Stocks in New York were mixed at the London equities close, with the DJIA down 0.1%, the S&P 500 index 0.3% higher, and the Nasdaq Composite 0.6% to the good. According to Bureau of Labor Statistics, total nonfarm payroll employment rose by 227,000 in November, following an upwardly revised total of 36,000 in October. Last month's figure was increased from 12,000, while November's total topped FXStreet consensus for a rise of 200,000. September's figure was revised up by 32,000 to 255,000 from 223,000. October's figures were distorted by the impacts of hurricanes and strikes. The BLS said the unemployment rate rose to 4.2% from 4.1%, in line with expectations. Wells Fargo said the payrolls figure was "robust" but the separate household survey was "underwhelming". "The unemployment rate rose by one-tenth of a percentage point, the labour force participation rate fell one-tenth, and the underlying details of the survey were indicative of a labour market that continues to lose momentum gradually," it observed. "Perhaps the only "hot" component of the report was the 0.4% increase in average hourly earnings that pushed the year-ago change for wages back up to 4.0%." "On balance, today's employment data further reinforces our view that the FOMC will reduce the federal funds rate by 25 bps at its upcoming meeting," Wells Fargo said. Citi's Andrew Hollenhorst felt the increase in the unemployment rate should be "more than enough evidence for Fed officials to conclude the job market is softening and cut in December". "Payrolls were close to consensus", he observed, but "we think the unemployment rate is the better signal to watch in this labour market". While investors weighed the labour market, the Federal Reserve said that inflation should remain the central bank's priority. "I continue to see greater risks to the price stability side of our mandate, especially when the labour market continues to be near full employment," Fed governor Michelle Bowman told a virtual event hosted by the Missouri Bankers Association. "I think we're still seeing that the US economy is strong," added Bowman, a permanent voting member of the Fed's rate-setting committee. "But core inflation continues to be elevated," she said, referring to the underlying measure of inflation which strips out volatile food and energy costs. The Fed's favoured inflation gauge ticked up slightly in October to 2.3%, slightly above the Fed's long-term target of two percent. The pound was quoted higher at USD1.2748 at the London equities close on Friday, compared to USD1.2717 at the close on Thursday. The euro stood at USD1.0569 at the European equities close on Friday, down against USD1.0568 at the same time on Thursday. According to Eurostat gross domestic product in the eurozone expanded by 0.4% in the three months that ended September 30 from the three months that ended June 30. Growth picked up from 0.2% in the second-quarter from the first. Year-on-year, the eurozone economy increased by 0.9% in the third-quarter, accelerating from a 0.5% increase in the second-quarter. It was the fastest pace of annual growth since the first-quarter of 2023. Quarter-on-quarter growth was the strongest since the third-quarter of 2022. Against the yen, the dollar was trading higher at JPY149.83 compared to JPY150.17 late Thursday. On London's FTSE 100, property stocks and housebuilders took heart from figures from Halifax which showed UK house prices have risen at their fastest pace in two years. The average house price was up 4.8% in November from a year prior, the biggest annual jump since November 2022. The average price climbed 1.3% from October to a record GBP298,083, the fifth monthly rise in a row. Property portal Rightmove gained 1.4%, Barratt Redrow rose 1.1%, Vistry firmed 0.8% and Persimmon advanced 0.7%. But fellow builder Berkeley missed out, falling 0.8%. The Surrey, England-based property developer and housebuilder said there was good underlying demand for homes, as it reported revenue increased 7.2% in the six months to the end of October to GBP1.28 billion from GBP1.19 billion a year before. But pretax profit was down 7.7% in the half-year to GBP275.1 million from GBP298.0 million in the first half of financial 2024. Weighing on the blue-chip index, water suppliers Severn Trent and United Utilities were both down 3.1%. Jefferies downgraded both to 'hold' from 'buy'. While "cautiously optimistic" about the December 19 Final Determinations for the UK water sector, Jefferies thinks the the risk-reward looks more balanced on United Utilities and Severn Trent at their current valuations." Morgan Stanley downgraded the European utility sector to 'in-line' from 'attractive'. "With a finely balanced risk-reward outlook for 2025 amidst multiple uncertainties, we move our sector view to in-line. We prefer electricity networks, and would be selective elsewhere." National Grid, down 1.5%, remains its top pick. SSE, another favoured Morgan Stanley stock, fell 1.3%. Aviva was on the back foot, down 1.4%, after taking a step closer to sealing the takeover of Direct Line. Direct Line rose 5.6% after it said it is "minded to recommend" an improved takeover approach from London-based insurer Aviva. The proposed deal, announced in a joint statement, will see Aviva pay 129.7 pence in cash, and 0.2867 of a new Aviva share for each Direct Line share. Direct Line shareholders also would receive a 5p per share dividend before completion. Based on Aviva's closing share price before the offer period started in November, the proposal values each Direct Line share at 275p, or around GBP3.6 billion. Aviva's new plan represents a 10% premium to its initial approach of 250p per share made in November. Matt Britzman at Hargreaves Lansdown felt the offer was "just too good to pass up". "Direct Line’s board had been holding out, insisting they could make it on their own. But even they had to admit that Aviva’s proposal is a golden ticket they’d struggle to match independently," he added. "Let’s not sugarcoat it: Direct Line has hit some serious potholes lately. Market share has been sliding, underwriting hasn’t exactly been flawless, and regulators have been knocking on the door." Elsewhere, shares in National World rose 5.8% after said it was minded to accept an improved proposed offer from Media Concierge. The Leeds-based owner of the Yorkshire Post and the Scotsman said Media Concierge had, on Tuesday, submitted a new 23 pence per share cash proposal. A bid at this level would value National World at around GBP61 million. In a statement, National World said that it would be "minded to recommend" the improved proposal if a firm offer was made to shareholders on these terms. In November, Media Concierge had offered 21p per National World share, valuing the firm at GBP56.2 million. Media Concierge, a UK-based media representation and advertising services provider, is the largest shareholder in National World, with an around 28% stake. Brent oil was quoted at USD71.22 a barrel at the London equities close Friday, down from USD72.22 late Thursday. Gold was quoted at USD2,640.10 an ounce at the London equities close on Friday, up against USD2,635.39 at the close on Thursday. Next week's UK corporate calendar has a trading statement from miner Anglo American, plus half-year results from industrial equipment supplier Ashtead and electricals retailer Currys. The economic calendar sees interest rate decisions n Australia and Europe, US consumer inflation data and UK gross domestic product figures. |
Posted at 06/12/2024 13:42 by master rsi MARKET REPORTLONDON MARKET MIDDAY: Blue chips stall but CAC 40 soars on luxury lift (Alliance News) - London's FTSE 100 traded around opening levels at midday on Friday, lagging European peers, ahead of the key US jobs report. The FTSE 100 index fell 6.69 points, 0.1%, at 8,342.69. The FTSE 250 rose 37.00 points, 0.2%, at 21,038.06, and the AIM All-Share climbed 1.31 points, 0.2%, at 738.23. The Cboe UK 100 was down 0.1% at 837.74, the Cboe UK 250 was up 0.3% at 18,540.25, and the Cboe Small Companies rose 0.4% to 16,141.48. In Europe, the CAC 40 in Paris stormed 1.3% higher despite ongoing political uncertainty while the DAX 40 in Frankfurt climbed a more modest 0.2%. Kathleen Brooks, research director at XTB said French luxury names are leading the recovery in Paris. Hermes rose 2.6%, LVMH climbed 3.2% while Gucci owner Kering jumped 5.3%. "Hopes of a Chinese stimulus package that focuses on the consumer are building, as Beijing officials meet to discuss 2025 growth targets. Added to this, French luxury names are less impacted by domestic political travails as most of their sales are generated overseas. They are likely to be more impacted by Donald Trump winning the US election than by whatever happens to President Macron. Overall, a technocratic government is on the cards, the fiscal can has been kicked down the road and although forging a new budget is a tough endeavour, the organs of French government can roll over the 2024 budget month on month in 2025, and there is no chance of a US-style government shut down," Brooks said. French President Emmanuel Macron is holding talks with French political leaders on the left and right as he seeks to name a new prime minister and find a way out of France's political crisis. Macron adopted a defiant tone in an address to the nation late Thursday, 24 hours after Prime Minister Michel Barnier's government was ousted in a historic no-confidence vote. Macron vowed to name a new prime minister in the "coming days", rejected growing pressure from the opposition to resign and blamed an "anti-republican front" of the hard left and far right for France's woes. Meanwhile, data showed the eurozone economy grew at the pace expected in the third-quarter of the year. According to Eurostat gross domestic product expanded by 0.4% in the three months that ended September 30 from the three months that ended June 30. Growth picked up from 0.2% in the second quarter from the first. Year-on-year, the eurozone economy increased by 0.9% in the third-quarter, accelerating from a 0.5% increase in the second-quarter. It was the fastest pace of annual growth since the first-quarter of 2023. Quarter-on-quarter growth was the strongest since the third-quarter of 2022. Investor attention now switches to the US nonfarm payrolls data at 1330 GMT, seen as pivotal in determining whether the Federal Reserve will cut interest rates at its December meeting. Bank of America expects nonfarm payrolls to rise by 240,000 in November after coming in at just 12,000 in October. "This above-consensus forecast is driven by expected payback for the temporary drag on payrolls in Oct due to Hurricane Milton and the Boeing strike," it explained. The FXStreet consensus is for payrolls to increase by 200,000 in November. BofA estimates that the hurricane took at least 60,000 off October's payrolls, while strikes, which have mostly since ended, accounted for an additional 41,000 drag. ING said given expectations of a bounce back after last month's weather and strike-hit figure, the market now probably "sees less than 200,000 as a bad number and above 300,000 as a good number." The pound was quoted at USD1.2763 early Friday afternoon, up from USD1.2753 at the time of the London equities close on Thursday. The euro stood at USD1.0582, up from USD1.0568. Against the yen, the dollar was trading at JPY150.56, up from JPY150.17. Back in London, shares in FTSE 250-listed Direct Line rose 7.1% after it said it is "minded to recommend" an improved takeover approach from London-based insurer Aviva. The proposed deal, announced in a joint statement, will see Aviva pay 129.7 pence in cash, and 0.2867 of a new Aviva share for each Direct Line share. Direct Line shareholders also would receive a 5p per share dividend before completion. Based on Aviva's closing share price before the offer period started in November, the proposal values each Direct Line share at 275p, or around GBP3.6 billion. Aviva's new plan represents a 10% premium to its initial approach of 250p per share made in November. Panmure Liberum thinks the revised offer is "good for both sets of shareholders – Aviva has not overpaid and Direct Line shareholders crystalize an attractive return." Aviva shares eased 0.5%. Elsewhere in the FTSE 100, Spirax was under pressure, falling 2.0% after JPMorgan downgraded to 'neutral' from 'overweight'. Also in the red, water suppliers Severn Trent and United Utilities, down 2.4% and 2.0% respectively. Jefferies downgraded both to 'hold' from 'buy'. While "cautiously optimistic" about the December 19 Final Determinations for the UK water sector, Jefferies thinks the the risk-reward looks more balanced on United Utilities and Severn Trent at their current valuations." Morgan Stanley downgraded the European utility sector to 'in-line' from 'attractive'. "With a finely balanced risk-reward outlook for 2025 amidst multiple uncertainties, we move our sector view to in-line. We prefer electricity networks, and would be selective elsewhere." National Grid, down 0.6%, remains its top pick. Housebuilder Berkeley Group slipped 2.5% after its half-year results. The Surrey, England-based property developer and housebuilder said there was good underlying demand for homes, as it reported revenue increased 7.2% in the six months to the end of October to GBP1.28 billion from GBP1.19 billion a year before. Pretax profit was down 7.7% in the half-year to GBP275.1 million from GBP298.0 million in the first half of financial 2024. Berkeley said it is on track to achieve pretax profit guidance of GBP525.0 million for the full-year, and at least GBP450 million for the following year. It also set out a new ten-year growth strategy to provide a new capital allocation framework. As part of the plan, Berkeley has identified GBP7.00 billion of free cash flow to invest over the next ten years. There was good news elsewhere for housebuilders as a survey from Halifax showed UK house prices have risen at their fastest pace in two years. The average house price was up 4.8% in November from a year prior, the biggest annual jump since November 2022. The average price climbed 1.3% from October to a record GBP298,083, the fifth monthly rise in a row. Among small-caps Quiz plunged 41%. The Glasgow, Scotland-based omnichannel fashion brand said it has seen a "marked decline" in traffic both online and in-store in November compared to previous months and the prior year. Sales in the fourth months to November were down 5.7% to GBP24.9 million. As a result, the firm warned cash headroom available was lower than anticipated and that existing bank facilities could be fully utilised in the first-quarter of 2025. It launched a financing and strategic review but anticipates that additional funding will be required in the first-quarter of 2025. Brent oil was quoted at USD71.40 a barrel early Friday afternoon, falling from USD72.22 late on Thursday. Gold was higher at USD2,638.58 an ounce from USD2,635.59. |
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