Market snapshot as FTSE 100 falls additional

Check out our key market knowledge because the FTSE 100 slips additional in the direction of the 7500 mark, with Unite Group and Flutter Leisure among the many greatest fallers.

FTSE 100 beneath strain, Card Manufacturing facility surges 15%

Card Manufacturing facility jumped 15% or 13.2p to 102p within the FTSE All-Share after it revealed buying and selling “materially” forward of expectations.

The newest improve to Metropolis steering means shares have now greater than doubled since final October because the Wakefield-based agency’s 1,000-plus retailer portfolio continues to climate harder buying and selling situations.

Card Manufacturing facility’s edge within the £1.4 billion UK greetings card market comes because it takes benefit of an working mannequin that sees it design and make the vast majority of its personal merchandise, together with from a facility in Baildon, Yorkshire.

The sturdy efficiency additionally helped on-line rival Moonpig add 3.5p to 184.1p.

The broader inventory market temper wasn’t helped by Friday’s sell-off on Wall Avenue after resilient jobs figures prompt the Federal Reserve will not be accomplished in its battle with rising costs.

The FTSE 100 index shed one other 37.89 factors to 7526.48, with BT Group and the miners Anglo American and Glencore among the many shares down by greater than 1%.

Promoting and advertising and marketing companies group WPP additionally misplaced one other 4p to 814p after falling closely on Friday following its warning a couple of slowdown in tech consumer spending.

In distinction, the demand for shares in BAE Techniques and Rolls-Royce is exhibiting no indicators of tailing off after their sturdy performances final week.

The defence merchandise big edged nearer to a brand new document by including 3p to 1012p, whereas the Derby-based engines maker topped the FTSE 100 with a acquire of three.4p to 209.9p.

The FTSE 250 index fell 35.69 factors to 18,898.93, led by a decline of 6.5p to 253.5p for Morgan Superior Supplies within the wake of Friday’s outcomes.

London leavers at document excessive as homebuyers are priced out of the capital by mortgage chaos

Excessive mortgage charges are pushing Londoners —significantly first-time patrons— out of the capital, as patrons look to scale back their borrowing prices by selecting extra inexpensive properties.

New knowledge from Hamptons exhibits that Londoners purchased 32,600 properties outdoors the M25 up to now this 12 months, which represents 7.7 per cent of all property gross sales outdoors the capital.

First-time patrons make up a document 30 per cent of these leaving London this 12 months, spending a mean of £429,800 on their properties. That is £96,590 lower than they’d have spent on a house in London, on common.

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Revenue warning at Christie Group amid slowdown in offers

Enterprise brokerage firm Christie Group at this time sounded the alarm on its income because it bemoaned weak market sentiment and a slowdown in company transactions.

The 177-year-old agency, which arranges the shopping for and promoting of small and medium-sized firms, stated its efficiency could be “materially under earlier expectations” as enterprise homeowners dithered on signing off offers amid wider uncertainty. 

“Deal delays, which have now been a prevailing issue all through the primary half, are sadly anticipated to final no less than till the tip of the summer time interval,” Christie stated.

The slowdown in transactions brokered “displays decrease exercise ranges and sentiment within the wider market,” it added.

Christie Group shares tanked 18.6% to 120p.

The revenue warning follows the shock departure of the agency’s joint chairman and chief govt, David Rugg final month as a non-executive director stepped in as interim chair whereas a everlasting alternative was discovered. Christie stated it was braced to face further prices related to Rugg’s departure. He was paid a wage of £477,000 final 12 months.

It comes after insolvency ranges in England and Wales soared additional within the second quarter of the 12 months, reaching the very best degree since 2009.

In whole, 6,342 firms had been declared bancrupt. That was up 9% from Q1, which was additionally a lot larger than regular.

Most insolvencies had been collectors’ voluntary liquidations, however the greatest bounce was in obligatory liquidations.

PageGroup slashes lots of of jobs because it warns on market uncertainty

PageGroup at this time warned of ‘unsure’ and ‘difficult’ situations because the recruitment agency stated it had slashed greater than 550 jobs.

The Weybridge-based enterprise, which operates in 37 completely different nations, stated: “The difficult situations we noticed in the direction of the tip of 2022 continued…with decrease ranges of each candidate and consumer confidence leading to delays in resolution making and candidates being extra reluctant to simply accept affords.”

Headcount on the agency was reduce by 5% in comparison with the tip of final 12 months, after 558 staff had been let go “reflecting the unsure macro-economic situations”.

The corporate stated market uncertainty had led to a change in demand from everlasting to momentary recruitment, as employers pushed pause on headcount enlargement plans in favour of hiring contractors to plug gaps within the workforce.

Pre-tax income slumped 45% to £63.3 million for the primary six months of the 12 months, whereas revenues grew barely to only over £1 billion.

Round 100 of the job cuts occurred within the UK, the place headcount fell 6.9%, after revenues slid 3.2% and working income sunk 62.9% to £5.7 million. PageGroup’s efficiency within the Americas area was extra sturdy, with turnover up by 10%, however profitability remained downbeat.

PageGroup shares fell 1.2% to 447p.

It follows the same warning final week from recruiting company Robert Walters, which stated “candidate and consumer confidence has been muted all through the primary half of 2023” after it reported a 70% drop in pre-tax income.

FTSE 100 decrease, LSL Property shares fall 15%

The FTSE 100 index has fallen 24.53 factors to 7539.84, with BT Group and Anglo American among the many blue-chip shares down by 1%.

Promoting and advertising and marketing companies group WPP additionally misplaced one other 10p to 808p on prime of Friday’s huge fall, when the corporate warned a couple of slowdown in tech consumer spending.

Demand for shares in BAE Techniques and Rolls-Royce continued into the brand new week after they rose 7p to 1016p and 0.6p to 207.1p respectively.

The FTSE 250 index misplaced 40.64 factors to 18,893.98, led by a decline of 29p to 751p for the digital parts manufacturing enterprise discoverIE.

Within the FTSE All-Share, LSL Property Providers fell 15% or 42p to 240p after its revenue warning however Card Manufacturing facility jumped 17% or 15.2p to 104p because of upgraded steering.

Document gross sales and income for AllSaints

Style model AllSaints achieved document gross sales and income within the 12 months to twenty-eight January, thanks partially to a brand new on-line gross sales platform.

Income was up 36% to £457 million, together with £66.1 million from the not too long ago acquired menswear model John Varvatos. Revenue rose by 50%, to £58.6 million.

“This has been a document 12 months for AllSaints, and these outcomes are an enormous credit score to the eagerness, creativity and laborious work of our implausible crew around the globe,” CEO peter Wooden stated. “The efficiency has been pushed by our intense deal with product improvement, ecommerce excellence, rising our international retailer community, and rigorous stock administration.

“AllSaints continues to go from power to power, with 25% development in FY23 and entry into mainland China for the primary time being simply two of an extended checklist of latest milestones for the model.

“Throughout its first full 12 months with us, we’ve additionally been happy with the efficiency of John Varvatos, which has returned to development and is exhibiting large potential within the various luxurious menswear market. Given the sturdy momentum throughout each manufacturers, and our confirmed resilience in even essentially the most difficult shopper environments, we stay vastly assured within the Group’s future prospects.”

Mortgage market turmoil hits LSL income

LSL Property Providers, the surveying and valuation enterprise, at this time warned that annual income will probably be considerably decrease than beforehand anticipated.

It flagged the “materials impression” of June’s 0.5% hike within the Financial institution of England base price, which has resulted in decrease ranges of buy and remortgaging exercise than LSL had beforehand forecast. That is solely partly offset by elevated decrease margin product transfers.

The large shift within the mortgage market will considerably impression the corporate’s Surveying division, with LSL’s monetary companies arm additionally affected.

Chief govt David Stewart stated: “LSL made numerous progress over the previous six months, delivering vital strategic tasks. Market situations have been difficult, and extra not too long ago have develop into tougher, impacting this 12 months’s monetary efficiency.”

Ship dealer Clarkson says demand for oil tankers offsets ‘easing’ container markets

Demand for oil tankers and different vessels used to move power merchandise has helped offset easing markets for container and dry bulk transport at London-based shipbroker Clarkson.

The St Katharine’s dock based mostly agency stated it was “now beginning to see the softening of charges in some sectors, a lot of which was anticipated post-Covid 19”.

It added:

“Power-related markets have been the important thing performers as complexity, geo-politics and power safety stay the main commerce themes, while softer situations have develop into prevalent inside each the container market, the place charges have once more normalised, and the dry bulk market, the place headwinds have been felt from the unwinding of congestion and decrease demand, significantly within the smaller ship sizes.”

The 171-year previous agency reported underlying revenue earlier than tax of £53.1 million up over 1 / 4, from income of £321.1 million, up from £266.7 million for the half-year to June 30. It stored its document for 20 consecutive years of dividend development, lifting its payout for the interval by 1p to 30p.

FTSE 100 seen decrease after US sell-off

Friday’s late sell-off for Wall Avenue shares means European markets will begin the week on the again foot, with CMC Markets anticipating the FTSE 100 index 31 factors decrease at 7533.

The S&P 500 index and Dow Jones Industrial Common completed down by round 0.5% after it emerged the US economic system created fewer than anticipated jobs in July. One of many vivid spots of the session got here from Amazon, which rose 8% on the again of Thursday’s outcomes.

Regardless of the drop in non-farm payrolls to 187,000, merchants stay not sure about whether or not the Federal Reserve has room to pause rate of interest rises at their assembly subsequent month.

The uncertainty and the fallout from the Fitch score downgrade for US debt contributed to the S&P 500 dropping by greater than 2% final week after registering declines within the 4 previous periods.

Markets in Asia have mirrored the Wall Avenue efficiency by buying and selling within the pink, with the Shanghai Composite down 0.8% and the Dangle Seng Composite off 0.2%.