FTSE 100 closes up 0.5%
The FTSE 100 closed at 7,564.37 today, up 0.5%, rallying after the release of the US jobs report.
The weaker-than-expected jobs data suggests that the Federal Reserve is likely finished with its interest rate hikes, but with the country still adding jobs, it remains far from an economic slowdown.
That helped the FTSE to gain around 80 points in the last three hours of trading to finish the day ahead.
But after big falls on Wednesday and Thursday, the FTSE still finishes the week down 130 points.
Nigel Farage can bank with us, boss of London fintech Pockit says as it unveils $10 million raise
The boss of a London fintech has said Nigel Farage would be able to open an account with them after it unveiled a fresh $10 million funding round.
Virraj Jatania, the CEO of Pockit, which serves customers left behind by mainstream banks, said: “Whilst I personally may not agree with his views, Nigel Farage would be allowed a current account with Pockit and he could open one in only a few minutes.
“Over the past few weeks, Farage has successfully raised awareness of the impact of being de-banked and underbanked.
“We are committed to being the financial super app for low-income and underserved groups. This includes politically exposed persons (PEPs) and we provide advanced monitoring for this group, to help prevent any potential issues.”
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US adds less-than-expected 187,000 jobs in July, but unemployment down again
The US added 187,000 jobs in July, according to the Bureau for Labor Statistics, less than the expected 200,000.
However, unemployment fell further to just 3.5%. The so-called ‘misery index’ of inflation plus unemployment in the US is just 6.5%, suggesting the country still appears to be on course for a ‘soft landing’ from inflation.
Payroll figures had repeatedly beaten expectations for much of the past year, but have no come in below expectations for the second straight month.
Richard Flynn, Managing Director at Charles Schwab UK, said: “Today’s jobs report is slightly weaker than expected. Last month’s results offered evidence that employment growth had begun to slow, and today’s numbers indicate that a downward trend may be in motion.
“While this should be encouraging for policymakers as they continue to battle sticky inflation, the Fed would likely prefer to see wage gains closer to 3%. Growth in the 4% region may not be enough to convince bankers that monetary policy is working, so further interest rate hikes may be around the corner.”
BA staff secure 13.1% pay increase and £1,000 one-off payment, says Unite
British Airways (BA) workers have secured a 13.1% pay increase,trade union Unite has said.
Staff at the airline will receive the pay increase over an 18-month period, as well as a £1,000 one off payment.
The pay offer was “overwhelmingly” accepted by Unite members after a ballot was held, the trade union added.
Unite general secretary Sharon Graham said: “This is a sizable pay increase which has been achieved by the hard work and dedication of the union’s reps and officers, hammered out in detailed negotiations.
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Construction sector grows despite rate rises dealing ‘hammer blow’ to housing
The UK’s construction sector returned to growth in July as an uptick in commercial work offset sharp falls for residential housebuilding, as interest rate rises and cost-of-living pressures dealt a “hammer blow” to the housing market, an influential survey has found.
Builders saw delivery times shorten at the fastest rate last month since 2009.
The latest S&P Global/CIPS construction purchasing managers’ index scored 51.7 in July, up from 48.9 in June and the highest level for five months.
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Shares start to slide
Take a look at our market snapshot as shares begin to slide. The FTSE 100 is now down almost 200 points for the week.
City Comment: Wilko’s demise proves it’s tough at the bottom
Rarely since the collapse of Woolworths in 2008 has news of the demise of a retailer triggered such groans of disappointment among friends and colleagues.
Wilko, which warned this week it could soon be forced to appoint administrators, may be scruffy, poorly stocked at times and incredibly badly lit, but it is undoubtedly much loved.
Intuitively a cost-of-living crisis should be a golden time for a discount retailer but not for family-owned Wilko, Its market is one of the most competitive in retailing with the likes of Poundland, Home Bargains and perhaps most aggressively of all B&M muscling in on its patch.
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New apartments replace Hammersmith ‘eyesore’
ALMOST 100 new apartments have gone on the market at a major regeneration scheme at Hammersmith Town Hall.
The 99 homes launched this week by Fabrica, the private development arm of housing association A2Dominion, which worked alongside Hammersmith & Fulham council, start from £635,000 for a one-bed flat.
The apartments scheme, known as Artisi, forms part of the new Civic Campus on Kings Street.
The new neighbourhood replaces a brutalist “eyesore” extension of the Town Hall dubbed one of the ugliest buildings in London prior to its demolition in 2020.
It will also have a new five-screen cinema, concert hall and theatre, public rooftop café and sky bar, an art gallery, retail and flexible office space as well as affordable homes for local residents and a 665 sq m public piazza called Unity Square.
Flutter up 3% on results optimism, FTSE 100 steady
Flutter Entertainment rose 3% or 395p to 15,035p after Wall Street’s DraftKings reported an 88% jump in second quarter revenues and raised its earnings guidance for 2023.
The update sent DraftKings shares up 12% in last night’s extended hours trading and fired up interest in next week’s results from Flutter and its Ladbrokes rival Entain.
Flutter’s FanDuel brand has enjoyed huge success since US gambling laws were relaxed in 2018, taking over 40% of the US online sports betting market.
The US division, which also includes the brands FoxBet and PokerStars, is expected to be profitable for the first time during the opening six months of the year having delivered revenues growth of 92% in the first quarter.
The performance and this autumn’s additional stock market listing in New York means shares are more than 70% higher over the past year.
Entain, which includes the BetMGM joint venture and was a bid target for DraftKings in 2021, rose 1% or 12p to 1393p.
The focus on the gambling sector came as London’s top flight ended a poor week 5.45 points higher at 7534.61.
Other risers included Rolls-Royce, which lifted another 4p to 196.2p after yesterday’s interim results boosted confidence in its longer-term recovery prospects.
Energy giants BP and Shell also rose 5.05p to 482.9p and 20.5p to 2359.5p respectively after Brent Crude finished a sixth consecutive week of gains at near $86 a barrel.
The FTSE 250 index rose 0.2% or 39.31 points to 18,872.78, with energy and materials engineering consultancy Wood Group up 2% or 3.7p to 161.5p after analysts at Jefferies upgraded to a “buy” recommendation with 210p target price.
Utility Warehouse business Telecom Plus also lifted another 48p to 1664p as it forecast more double-digit annual percentage customer growth for the current year.
Capita draws a line under £25 million cyber attack as it swings to half-year loss
Capita, the outsourcing giant that administers London’s Ultra Low Emission Zone and the Congestion Charge, fell to a loss today, after a major cyber attack last year.
But the FTSE 250 company is confident it has dealt with the incident in March, which it said today would cost up to £25 million, “reflecting the complexity of the forensic analysis of exfiltrated data.”
For the six-months to the end of June, Capita reported a loss of almost £68 million, down from a profit of £0.1 million in the same period a year ago. It also reflected the cost of business exits and some writedowns.
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