MARKETS CLOSE: London shares post gains in busy session for earnings; pound at $1.30 and oil nudges $50

The FTSE 100 closed up 57.09 points at 7434.82 in another busy session for results, including Virgin Money, Domino's, Segro and Fever-Tree

In the world of central banking, the Federal Reserve is expected to leave policy unchanged this week but could signal a further rate hike at its next meeting in September despite signs of a slowdown in the US as well as softer inflation.

Brent crude is at $49.89 a barrel after the conclusion of yesterday’s OPEC and non-OPEC producers’ meeting, at which leaders Saudi Arabia and Russia promised harsher penalties for non-compliance with production cuts.

FTSE 100 has ticked 30 points higher this morning, surging back across the 7,400 mark

FTSE 100 has ticked 30 points higher this morning, surging back across the 7,400 mark

  • Claire Heffron

    Host commentator

  • Tanya Jefferies

    Host commentator

17:39
Oil price rise helps Footsie

The FTSE 100 closed up 57.09 points at 7434.82, thanks to a rebound in oil and metals prices which propped up major commodity stocks.

Antofagasta was up 66p at 951p, Anglo American was ahead 67p at 1,171.5p and Glencore was 118p higher at 330.65p, on the back of higher copper and iron ore prices.

Meanwhile, Brent crude prices rose 2.7 per cent to $49.97 a barrel, pushing up shares in UK oil giants including BP which rose 6.7p to 446.45p and Royal Dutch Shell's "B" shares which climbed 28.5p to 2,093.5p.

Investors were celebrating news that Saudi Arabia, one of the world's biggest oil producers, was renewing commitments to slash output in hopes of tackling the global crude glut.

Across Europe, the French Cac and German Dax rose 0.65 per cent and 0.45 per cent, respectively.

Currency market moves were relatively subdued, with sterling trading just 0.1 per cent higher against the US dollar at $1.303. Versus the euro, the pound was flat at €1.118.

Virgin Money plunged 26.9p to 279.6p after the bank sounded a note of caution on the UK housing market, saying it may have to navigate "areas of weakness" in the near term.

Jimmy Choo soared 33.25p to 228.25p following news that the luxury shoe brand is to be acquired by US fashion brand Michael Kors in an £896 million deal.

Domino's Pizza Group fell 15.5p to 263.7p after the company revealed marked decline in like-for-like half-year sales, which grew only 2.4 per cent compared with 13 per cent a year earlier. Domino's said this came amid a 'softer consumer environment and a slowdown in the overall delivery market'.

Shares in Provident Financial tumbled 134p to 2,163p after it revealed that pre-tax profits dropped by 22.6 per cent o £115.3million in the six months to the end of June, after suffering disruption while shifting its home credit business to a new model.

Fuller Smith & Turner shares jumped 60p to 1,093p, having reported that summer weather helped boost sales across the business over the last four months.

The biggest risers on the FTSE 100 were Antofagasta up 66p at 951p, Anglo American up 67p at 1,171.5p, Glencore up 18p to 330.65p, and Rio Tinto up 151p to 3,475p.

The biggest fallers on the FTSE 100 were Provident Financial down 134p to 2,163p, British American Tobacco down 130p to 5,283p, Morrison Supermarkets down 5.4p to 241.2p, and WPP down 32p at 1,561p.

17:26
City pundits on today's session

Joshua Mahony, market analyst at IG, said: 'US markets are leading the way this afternoon, with the S&P 500 hitting a new record high amid yet another batch of earnings outperformance from the likes of McDonald’s and Caterpillar.

'It is becoming a running theme of this earnings season that we are seeing figures substantially beat market estimates. Whether that is associated with the impact of a weak dollar or simply a low bar being set by analysts remains to be seen.

'This morning’s FTSE rally seems to have hit the buffers somewhat, with the index slowing its ascent into the close. Interestingly we have seen the FTSE and pound move in tandem today, with morning gains giving way to consolidation.

'Despite Donald Trump’s tweet promising the development of a massive US-UK post-Brexit trade deal, both the pound and FTSE seem to have topped off at that very moment.'

David Madden, market analyst at CMC Markets, said: 'The FTSE 100 lagged behind the eurozone equity markets yesterday, but today the London market has bounced back more, and has outperformed its Continental counterparts. Bargain hunting, along with a steady pound helped the British market.

'The bullish move in copper and iron ore prices has driven up the share prices of Rio Tinto, BHP Billiton, Glencore, and Anglo American.

'BP and Royal Dutch Shell are in positive territory as the energy market is stronger as Saudi Arabia stated it would cut its oil exports in August.

'The commodity stocks are very sensitive to the underlying metals and energies, and the FTSE 100 has a disproportionally large amount of natural resource companies when compared with other European indices.'

17:04
FTSE 100 closes up 57.09 points at 7434.82
16:32
BOND NEWS: Greece back in business and selling bonds

Greece sold debt to private investors for the first time in three years, a significant step toward gaining financial independence and exiting its third international bailout next year.

The deal comes a month after euro zone finance ministers signed off on a new loan and sketched out measures to chip away at Greece's debt mountain after the current bailout finishes in August 2018.

Athens says the sale of a new five-year bond is a test run to ensure Greece can rely on market funding next year. A tender of old bonds run alongside the sale will help lower its repayments in the years following its bailout exit.

The deal did not attract as much demand as the country's brief foray into markets in 2014, but Athens looked to have paid less to borrow the same amount.

'The return of Greece to the capital markets was and is the goal of the ongoing adjustment program. We therefore welcome the fact that Greece has the chance to return to the market on a step-by-step basis,' a spokeswoman for the finance ministry in Germany, Europe's biggest economy, said.

Athens lost market access shortly after it sold bonds in 2014 because its newly-elected leftist government quarrelled with creditors over debt relief.

Some investors may have been put off by that experience, analysts said, especially as there are still lingering concerns around Greece's debt mountain which stands at 180 per cent of economic output.

'Given Greece's fundamentals, the problem with this bond sale is that it fuels speculation about investor willingness to lend to an almost insolvent country,' said ABN AMRO senior fixed income analyst Kim Liu.

'Regardless of the success of the deal, debt-to-GDP levels of Greece will still be at high levels.'

But Europe's economics commissioner, Pierre Moscovici, said he was confident Greece was 'turning a page' from its economic crisis.

The bond sale is also emblematic of the recovery of the euro zone as a whole, coming some five years after European Central Bank President Mario Draghi brought the bloc back from the brink of splintering with a pledge to do 'whatever it takes'.

Analysts said some investors may be put off Greek government bonds because they have the lowest credit rating in the euro zone and are not being eligible for purchase by the European Central Bank under its quantitative easing scheme.

16:21
Tottenham Hotspur ring the Nasdaq opening bell

Hard to know why, other than being on summer tour in the US and of course being the greatest team the world has ever seen.

There have also been viscous rumours in recent weeks that Facebook owner Mark Zuckerberg could be preparing a £1billion takeover bid for the club.

Still, Spurs haven't brought much luck to the Nasdaq which is the only US equity market down this session.

Follow Daniel Levy, chairman at Tottenham Hotspur and Ledley King, Tottenham amabassador, talking on Facebook live here.  

15:49
FTSE 100 making up for yesterday's losses with 70 point push

The FTSE 100 maintained its rebound, regaining almost all of Monday’s losses with a 90 point rise.

The commodity sector was the main driver of the FTSE’s comeback, with brent Crude and copper - up 1.9 per cent and 2.9 per cent respectively - leading the oil and mining stocks higher.

But the UK index will face a tougher test tomorrow. It will have to deal with a potential perky pound, in light of the dollar’s pre-Fed jitters, and another busy morning for corporate earnings - one that includes updates from Antofagasta, GlaxoSmithKline and ITV.

15:10
Google parent Alphabet reveals dramatic drop in quarterly profit to $3.5bn thanks to $2.74bn antitrust fine from European Commission

Google parent Alphabet reported a quarterly profit of $3.5billion last night, in a sharp decline from a year ago, with a massive fine by the European Commission biting into earnings.

The technology giant reported that revenue grew to $26billion in the recently ended quarter, and that profit would have tallied nearly $6.3billion if it weren't for a $2.74billion antitrust fine levied on search engine Google by the European Commission.

The earnings for the quarter fell 28 per cent from the same period last year.

15:01
US stocks also on the up

The Standard & Poor’s 500 index rose 6 points to 2,476. The Dow Jones added 117 points to 21,626 and the Nasdaq composite gave up 10 points to 6,400.

The Federal Reserve's policymaking committee begins a two-day meeting, following its decision last month to raise short-term interest rates for the third time since December.

The central bank also announced plans to start gradually paring its bond holdings later this year, a move that could cause rates to rise.

Most investors expect the Fed to hold rates steady at this week's meeting and possibly raise them one more time this year.

14:24
Amazon set to enter drug store market, selling prescriptions online or via traditional shops

E-commerce giant Amazon could soon be entering the multi-billion dollar US pharmacy market.

There is speculation that such a move could see the online retailer selling prescription medicines direct to consumers.

CNBC reported in May that Amazon was hiring a team of staff to prepare to move into the sector.

The report suggests the company could take as much as $50billion in prescription sales.

Now it has reportedly hired top health technology executive Missy Krasner.

Her new official title is currently unknown, but there are rumours she may be appointed to work for its cloud division, Amazon Web Services.

The subsidiary's clients include major health names like Bristol-Myers Squibb and healthcare software company Orion Health, according to the business news website. 

Amazon has also been selling medical supplies online in the States for some time. 

14:14
FTSE 100 up 70 points at 7,449.1 shortly after lunch
13:12
Jimmy Choo has had a bumpy ride, but sex sells

1996 - Founded by couture shoe designer Jimmy Choo and Vogue accessories editor Tamara Mellon

2001 - J Choo leaves company and sells his 50 per cent share in the Jimmy Choo company to Equinox Luxury Holdings

2004 - Lion Capital acquires a majority shareholding 

2007 - TowerBrook Capital Partners purchases company for £225million

2011 - Sale to Labelux (parent company, JAB Holding Company) for £525.5million

2014 - IPO announced 

April 2017 - puts itself up for sale 

July 2017 - Sale to Michael Kors for £896million, shares rocket by 17 per cent.

Jimmy Choo became a household name after its shoes repeatedly featured on high profile TV shows including Sex and the City
13:08
UK second quarter GDP figures out tomorrow, what to expect?

According to Investec the UK economy looks set to have recorded only a marginal strengthening in the pace of GDP growth in quarter two.

One question is over the extent and duration of the squeeze on consumer spending, given inflation continues to outstrip pay growth which could continue to weigh on the growth pace.

On monetary policy, some of the heat has come out of recent rate hike momentum with enough key players on the MPC seemingly not ready to vote for a tightening.

Political uncertainty has remained a key theme, with talk of an autumn leadership challenge to PM Theresa May resurfacing.

13:02
Acacia Mining shares slide 10 per cent after being hit with massive fine

Yesterday Tanzania issued a notice demanding $190billion in unpaid taxes, penalties and interest from Acacia Mining, the gold mining company.

Acacia Mining does not believe it owes the money.

'Acacia refutes each set of findings and re-iterates that it has fully declared all revenues,' the company said.

Acacia is caught up in sweeping changes to Tanzania's mining industry spearheaded by President John Magufuli who believes the country is not getting its fair share of profits from the sector.

Acacia shares are down 8 per cent, or 15.6p, at 168.9p. 

Following two rounds of audits of Acacia, government-appointed committees found the company had understated how much gold it was shipping and that it was operating illegally in the east African country.

12:38
Domino's launches Amazon Echo voice ordering as it fights sluggish sales

Britain's biggest pizza delivery firm, reported much lower like-for-like sales growth in the first half of the year.

Shares in Domino's were down nearly 7 per cent in morning trading as investors digested the news.

In a bid to boost sales, the company announced that customers will be able to order a Domino's pizza via Amazon's voice-controlled Echo device.

12:34
Guardian accelerates cost cutting

The owner of The Guardian is charging ahead with a major efficiency drive after slashing more than 300 jobs in a 'painful though necessary' move last year.

Guardian Media Group - which owns the Guardian newspaper, The Observer, and the international Guardian Weekly - said it was pushing forward its three-year turnaround plan meant to boost revenue and lower the Guardian's cost base by 20 per cent.

The company said costs before exceptional items had already dropped £19million over the past financial year, falling from £278million to £259million in the 12 months to April 2, after cutting around 300 full-time staff.

'These moves, painful though necessary, enabled the group to reduce losses,' the group said in its full-year earnings release.

The company celebrated a 2 per cent rise in group revenues to £214.5million, helped by a 15 per cent jump in digital revenues to £94.1million, while losses were reduced by 35 per cent to £44.7million compared to £68.7million a year earlier.

The Guardian is now 'on track' to break even by the 2018/2019 financial year, helping GMG 'become financially sustainable.'

Pushing ahead with its cost cutting plan - which was launched at the start of 2016 - GMG last month revealed it would be downsizing the Guardian and its sister Sunday paper The Observer from their mid-size Berliner format to a tabloid from early 2018, resulting in the closure of its printing sites in Manchester and east London.

The printing will instead be outsourced to presses run by Trinity Mirror, owner of the Mirror, Sunday Mirror and People tabloid.

It is not clear whether further job cuts are slated for the next financial year.

12:24
Virgin Money profits surge but margin outlook hits shares

Interim profits from the lender were strong but the bank's outlook statement warned of a lower than previously anticipated net interest margin, due to its decision to accelerate drawings from the term funding scheme.

Virgin generated total income of £327.2 million in the six months to 30 June, which was up 13 per cent on the same period last year and 10 per cent on the second half of last year.

Full story here

12:03
Here are the fallers too
12:02
FTSE 100 up 57 points at 7,434.9

There has been strong increases in the prices of mining stocks which has boosted the FTSE 100 after yesterday's sharp drop.

With the copper price hitting its highest level since February, Anglo American, BHP Billiton and Glencore all moved higher.

Elsewhere, Informa is the best performing blue-chip with a better than expected set of results with the stock rising just shy of 7 per cent.

Whilst the majority of stocks are joining in the move higher there remains some pockets of weakness with retailers and airlines continuing to find it tough going.

Marks and Spencer and Morrisons are notable fallers, whilst easyJet has slipped below yesterday’s low and is down by a little under 1 per cent.

10:58
FTSE 100 up 66 points at 7,443.8, still climbing
10:09
Subprime lender Provident Financial sees profits plunge amid business overhaul

Provident Financial has seen profits drop by more than a fifth after suffering disruption while shifting its home credit business to a new model.

Pre-tax profits dropped by 22.6 per cent to £115.3million in the six months to the end of June, with the firm booking a £40million hit as agent effectiveness dipped during the transition.

The subprime lender, which offers loans and finance to people with bad credit scores, saw annualised returns on assets slip to 12.8 per cent for the period, down from 14.2 per cent in 2016.

But the group enjoyed a brighter performance from its short-term loans division Satsuma, with credit card issuer Vanquis Bank and car finance provider Moneybarn also notching up 'record volumes of new business'.

Chief executive Peter Crook said the firm had seen no change in customer behaviour over credit performance or demand.

He said: 'Whilst I remain disappointed by the higher than expected operational disruption to trading in the home credit business, the new business model was deployed as planned during the first week in July.

'I am confident in the strategic rationale for the change and the business is working hard to improve customer service and collections performance ahead of the seasonally busy fourth quarter.'

Shares are down 2 per cent.

10:04
FTSE 100 up 55.56 points at 7,433.2
09:51
Fast fashion upstart Missguided races in to sportswear with plans to stock Adidas, Kappa and Ellesse

Missguided plans to sell sportswear labels on its site as it seeks to tap into the lucrative athleisure market.

The fast-fashion firm, which sells trendy clothing to teens and 20-somethings, has reportedly approached several leading brands including Adidas, Kappa and Ellesse.

It is not known whether they will be stocked in its two stores in Westfield Stratford City, London and Bluewater in Kent, or its various concessions.

Puma has recently accused the brand of copying a range of shoes it designed with singer Rihanna.

Missguided was founded by 34-year old Nitin Passi in 2009 with a £50,000 loan from his father.

Missguided was founded by 34-year old Nitin Passi in 2009 with a £50,000 loan from his father
09:22
BoE's Alex Brazier highlights problems of rise in personal loans

Bank of England executive director of financial stability Alex Brazier has warned on the sharp rise in personal loans.

In a speech to the University of Liverpool's Institute for Risk and Uncertainty yesterday, Brazier, who is also a member of the BoE's Financial Policy Committee, highlighted recent developments in household debt, the dangers it poses to the wider economy and three 'lines of defence' put in place by regulators to guard against those dangers.

High levels of mortgage debt can make downturns deeper by causing consumers aggressively to cut back spending to service their mortgages, he argued, while high levels of consumer debt - like credit card debt and personal loans - can make banks more vulnerable to downturns as borrowers are much more likely to default.

09:10
Domino's and Amazon Echo team up

Domino's Pizza has inked an agreement with Amazon Echo that will enable voice ordering for customers as it looks to boost slowing sales growth.

The delivery chain will launch what it called an 'industry first' with voice ordering through Amazon's Echo device as of today, as well as introducing GPS tracking for its pizzas.

Chief executive David Wild said: 'Domino's Pizza continues to lead the pizza market, with innovations such as the popular Lotta-Chocca pizza and our launch today of Amazon Echo voice ordering.

'Following a successful trial, we'll be rolling out GPS, which will enable customers to track their delivery and help franchisees with labour management.'

Shares in Domino's were down nearly 7 per cent after the firm posted some under cooked results.

Wayne Brown, analyst at Liberum, said: 'The half-year results are relatively as we had expected, with a declining like-for-like sales profile impacting underlying margins.

'Order count growth has lagged store opening growth and mature like-for-like sales has fallen behind a rise in average ticket growth, suggesting that volumes in mature stores are running at around minus 3 per cent.'

09:05
Michael Kors snaps up Jimmy Choo for £896million

Luxury shoe brand Jimmy Choo is to be acquired by US fashion brand Michael Kors in an £896million deal.

London-listed Jimmy Choo put itself up for sale as part of a strategic review in April and Michael Kors said it is 'the ideal partner' for the firm.

The group said in a statement that it will support the growth of Jimmy Choo through 'retail store openings and further development of its online presence', adding that the shoe firm will operate under its existing management team, including chief executive Pierre Denis.

Under the terms of the deal, Jimmy Choo shareholders will receive 230p in cash for each share, a premium of 36.5 per cent on the firm's share price of 168.5p on April 21.

John Idol, chairman and chief executive of Michael Kors, said: 'We believe that Jimmy Choo is poised for meaningful growth in the future and we are committed to supporting the strong brand equity that Jimmy Choo has built over the last 20 years.'

In March, Jimmy Choo cheered record revenues and profits thanks to a boost from the Brexit-hit pound and strong sales across Asia.

The designer firm saw annual revenues climb 15 per cent to £364million in the year to the end of December, while earnings lifted 16 per cent to £59million over the period.

Jimmy Choo counts Jennifer Lopez, the Duchess of Cambridge and Beyonce among its fans.

08:55
It might be the middle of summer but this one of the busiest weeks for earnings and investors

The back end of the week brings one of the busiest corporate calendars of the year, with nearly a quarter of the FTSE reporting.

08:53
Plenty of corporate earnings out this morning

Drinks firm Fever-Tree has upgraded its profits forecast after revenues fizzed up in the first half of the year.

The firm said sales rose 77 per cent to £71.9million in the six months to June 30, while pre-tax profit jumped from £11.8million to £24million in the period.

Profits at Virgin Money jumped in the first half of the year, but the bank sounded a note of caution on the UK housing market.

The lender said pre-tax profits rose 32 per cent to £123.8million in the six months to June 30 with gross mortgage lending coming in at £4.3billion, taking its share of the market to 3.5 per cent.

The UK's biggest pizza delivery firm, Domino's Pizza Group, said half-year pretax profit rose 9 per cent as orders made online increased.

Provident Financial has seen first-half pretax profits dive by 22.6 per cent amid disruption caused by a cut in the number of debt collection agents at its home credit division.

Property developer Segro has reported a 5.4 per cent rise in the value of its assets due to growing demand for warehouses and industrial property from online retailers.

Fuller, Smith and Turner said it had 'made a very good start to the year', with like for like sales in it managed pubs and hotels rising by 6.6 per cent during the period.

Business media group Informa said pre-tax profits rose to £148.8million from £98.9million as first-half revenue increased 41.3 per cent on strong trading in its global exhibitions division.

08:43
FTSE 100 up 40 points at 7,419.2

Alongside a fairly muted open from the pound, this has allowed the FTSE 100 to surge back across 7400. 

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