The UK economic system contracted by an estimated 0.1% within the second quarter, the Workplace for Nationwide Statistics stated in the present day.
The decline was pushed by a 0.6% fall in June, a efficiency that mirrored the winding down of Covid-19 testing and vaccine programmes and disruption to exercise attributable to the Jubilee celebrations.
Nonetheless, Metropolis economists had forecast a 1.2% fall in June and contraction of 0.2% for the second quarter.
FTSE 100 Reside Friday
- 1 FTSE 100 Reside Friday
- 2 Chinese language shares tank after 5 corporations introduced they’re pulling out of Wall Road
- 3 Shares rise as inflation worries cool: US markets open
- 4 Flutter blasts playing regulation delays as bookies lose in UK
- 5 Recent blow to Peloton from American authorized ruling
- 6 GSK rebuts carcinogenic declare on Zantac as US lawsuits loom
- 7 Robinhood buying and selling app taken to court docket for market manipulation
- 8 Johnson & Johnson halts talcum powder gross sales in most cancers scare
- 9 FTSE 100 rallies, Kingfisher falls after downgrade
- 10 GDP down 0.1% as recession fears develop
- 11 FTSE 100 larger, GSK up 2%
- 12 Flutter shares leap after H1 outcomes
- 13 US markets consolidate good points, FTSE 100 regular
Q2 GDP declines 0.1% after 0.6% fall in June
US progress boosts Flutter Leisure shares
FTSE 100 larger however retail shares underneath stress
15:16 , Simon Hunt
US-listed shares in Chinese language corporations tanked in the present day after 5 China-based corporations introduced they have been withdrawing from the New York Inventory Change amid escalating tensions between the USA and China.
The state-owned corporations, together with China Life Insurance coverage and oil agency Sinopec, stated they might be holding lstings in Hong Kong and Shanghai. It comes after US regulators stated the companies didn’t meet American auditing requirements and have been already at risk of being kicked off Wall Road inventory markets.
The Industrial & Business Financial institution of China dropped 4.2% in New York on the information, whereas PetroChina Firm Restricted fell 2.9%.
14:55 , Simon Hunt
Shares made good points within the opening minutes of buying and selling in New York as investor agitation about rising inflation started to chill.
US inflation information out earlier this week confirmed costs fell in July in comparison with June, elevating hopes of a smaller rate of interest rise when the Federal Reserve meets later this month.
The S&P 500 rose 0.6% whereas the Nasdaq rose 0.7%, These good points have been a bit extra muted than they could have been, as Chinese language shares tanked after 5 corporations introduced they might be withdrawing a US itemizing.
Flutter blasts playing regulation delays as bookies lose in UK
14:13 , Simon Hunt
Two of the largest names in UK playing have revealed the influence of delays to authorities reform plans for the trade.
Flutter, proprietor of Paddy Energy, hit out on the uncertainty, as measures it has already taken forward of the laws coincided with a 4% fall in revenues for its UK and Eire enterprise. 888, which owns William Hill, reported a 25% decline in UK income because it too tightened its insurance policies.
The white paper on the topic was delayed in June as a result of Conservative Get together’s management contest, the fourth postponement for the reason that authentic 2019 announcement that adjustments have been on the way in which. The potential measures have been a supply of disagreement throughout the Authorities ever since.
Flutter’s chief government Peter Jackson known as the delays “disappointing”, mentioning that “we’ve constantly supported” reform and “we hope for readability as quickly as potential — there’s been uncertainty for everybody concerned, and we’ve now had greater than 18 months of it.
“We hope [the white paper] can be out in This autumn,” he stated.
Flutter has already modified elements of its enterprise in anticipation of tighter guidelines to stop drawback playing from high-spending prospects, together with trialling £10 limits on on-line slot machine stakes and obligatory deposit limits for all prospects underneath the age of 25.
Group income at Flutter rose 11% to £3.4 billion. Earnings fell 20% to £476 million. Shares rose 7.8% to 10,165p.
888‘s total first half income slumped 66% to £14.4 million, sending its shares down 8% to 148p.
13:42 , Simon Hunt
Beleaguered train bike maker Peloton suffered one other blow yesterday after a US choose stated the agency should face a lawsuit over allegedly deceptive prospects over the scale of its health class library.
In 2019, Peloton eliminated 1000’s of on-demand lessons over licensing points associated to music within the movies.
District Decide Lewis Linman stated “there could be worth related to the merchandise that resulted in an elevated value when that worth was not really there”.
Peloton shares have dropped 89% previously yr after it suffered a collection of setbacks. In February, the enterprise was accused of concealing rust and corrosion on its bikes to keep away from product recollects. Peloton stated the rust was “superficial” and wouldn’t have an effect on the bike’s efficiency. Gross sales slumped 24% within the first quarter of 2022
GSK rebuts carcinogenic declare on Zantac as US lawsuits loom
13:05 , Simon Hunt
GSK has hit again at claims considered one of its former medicine might trigger most cancers because the pharma large faces a authorized menace from 1000’s of non-public damage claims.
GSK vowed to “vigorously defend” all claims regarding Zantac, that was as soon as a well-liked antacid, snubbing issues raised as “speculative commentary”.
The corporate stated: “GSK, unbiased most cancers researchers, the FDA, and the European Medicines Company, have all undertaken intensive opinions of accessible information and performed quite a few investigations into this concern since 2019.
“GSK, the FDA, and the EMA have all independently concluded that there isn’t any proof of a causal affiliation between ranitidine remedy and the event of most cancers in sufferers.”
Pharmaceutical shares GSK, Sanofi and Haleon noticed greater than $40 billion (£32.9 billion) wiped from their mixed market cap this week on account of litigation fears round Zantac.
The companies are defendants in a collection of US litigation claims that the heartburn drug, recalled in 2020, might have contained a cancer-causing substance known as NDMA. Greater than 3000 private damage circumstances have been filed in federal and state courts. Plaintiffs stated the businesses had not correctly warned them of potential unwanted side effects or threat.
Robinhood buying and selling app taken to court docket for market manipulation
11:39 , Simon Hunt
Widespread buying and selling app Robinhood is about to face market manipulation claims after it imposed buying and selling restrictions on prospects in the course of the so-called “meme inventory” rally final yr.
Robinhood briefly suspended purchases of quite a few shares in January 2021 after shares in online game retailer GameStop soared greater than 1000% in days. The large leap in costs proved a significant headache for a number of hedge funds that had guess in opposition to the shares.
District Decide Cecilia Altonaga stated the restrictions and feedback the corporate made concerning the capital it held “evince an intent on the a part of Robinhood to artificially depress share costs for its private profit”.
Johnson & Johnson halts talcum powder gross sales in most cancers scare
11:24 , Simon Hunt
Johnson & Johnson is to halt gross sales of its main talc-based child powder after going through allegations that the product might have contained carcinogenic supplies.
The enterprise faces 1000’s of authorized challenges from ladies who allege the product could have precipitated them to develop ovarian most cancers.
Johnson & Johnson hit again, saying: “We stand firmly behind the a long time of unbiased scientific evaluation by medical specialists all over the world that confirms talc-based Johnson’s child powder is secure, doesn’t include asbestos and doesn’t trigger most cancers.”
A brand new cornstarch-based model of the product is already broadly bought throughout the US and can now be rolled out globally.
FTSE 100 rallies, Kingfisher falls after downgrade
10:19 , Graeme Evans
Retail shares got here underneath extra stress in the present day after a Metropolis financial institution downgraded its suggestions on shares together with Dunelm and B&Q proprietor Kingfisher.
The softer outlook for DIY spending means UBS now charges Kingfisher at “promote“, with a brand new goal value of 203p representing a 21% draw back on final night time’s value.
The financial institution additionally eliminated its “purchase” stance on homewares retailer Dunelm, having slashed its value estimate from 1761p to 850p. UBS stated: “We like the expansion story however are cautious close to time period on weakening trade information.”
DFS Furnishings was one other casualty after being downgraded to “promote”, however Howden Joinery stored its “purchase” standing as a “comparatively secure guess in a tricky atmosphere”.
Kingfisher shares fell 5.3p to 250.5p following the downgrade, whereas Howden dropped 11.8p to 673.4p. Dunelm weakened 20p to 821p within the FTSE 250 index and DFS eased 5p to 136.2p in contrast with UBS’s new value goal of 100p.
The retail warning got here because the FTSE 100 index rose 43.67 factors to 7509.58, with BP and Shell up by round 1% after Brent crude returned above $100 a barrel.
Business costs surged yesterday when the Worldwide Power Company raised its demand estimate for this yr amid a swap from gasoline to grease for energy era.
The FTSE 250 index was 25.19 factors larger at 20,270.62, with shares in journey group TUI up 5.3p to 153.8p.
GDP down 0.1% as recession fears develop
09:06 , Graeme Evans
UK output fell by 0.1% within the second quarter, together with a drop of 0.6% in June amid one-off components such because the Jubilee and finish of Covid testing programmes.
ING economist James Smith expects month-to-month GDP to rebound by roughly 0.7% in July and by round half a p.c throughout the third quarter.
He stated: “Meaning discerning the influence of the price of residing squeeze goes to be difficult for the following few months, at the least by way of the GDP figures. However by the fourth quarter, the indicators of recession are more likely to be extra obvious.
“We’ll have to attend and see what the brand new prime minister presents by way of assist, however on the very least a fall in fourth quarter GDP now appears extremely doubtless.”
FTSE 100 larger, GSK up 2%
08:55 , Graeme Evans
GSK shares are 2% or 25.8p larger at 1425.8p, having fallen 10% yesterday on fears over potential US litigation regarding heartburn drug Zantac.
The corporate stated in the present day that quite a few intensive opinions since 2019 had did not establish any most cancers threat and that it supposed to vigorously defend all claims.
GSK’s former shopper healthcare division Haleon, which was additionally closely bought yesterday, fell 1p to 264.8p.
The FTSE 100 index rose 24.86 factors to 7490.77, with the return of Brent crude to above $100 a barrel inflicting shares in BP and Shell to raise 1%.
The FTSE 250 index slipped 27.26 factors to twenty,218.17, led by 888 Holdings after its shares fell 8% or 12.2p to 147.8p within the wake of outcomes.
08:33 , Graeme Evans
Flutter Leisure shares have jumped 7% – up 658p to 10,040p – after the gaming firm’s half-year outcomes confirmed continued momentum in the US, the place it’s the market chief in on-line sports activities betting via FanDuel.
Underlying earnings of £476 million within the first half have been 20% decrease however consistent with expectations because the Paddy Energy proprietor continues to put money into the US.
Chief government Peter Jackson stated: “The primary half of 2022 was optimistic for the group with important progress made in opposition to the strategic targets we outlined in March.
“We expanded our leisure buyer base by over a million gamers within the half and elevated the proportion of consumers utilizing safer playing instruments to over one third.”
The FTSE 100-listed shares have fallen by a 3rd during the last yr, though over a three-year interval the value stays forward by greater than 40%.
Richard Hunter, head of markets at Interactive Investor, stated: “With a world presence bolstered by a quickly to be worthwhile US unit, hopes stay excessive and the market consensus of the shares as a robust purchase incorporates the longer-term view.”
US markets consolidate good points, FTSE 100 regular
07:56 , Graeme Evans
An improved outlook for inflation and rates of interest continues to learn US markets after the key indices consolidated their current good points in buying and selling final night time.
The tech-focused Nasdaq is now greater than 20% larger than its most up-to-date low level as sentiment improves on hopes of a slowing within the tempo of Federal Reserve rate of interest rises.
This optimism has been given momentum by July’s softer-than-expected inflation determine and yesterday’s producer value index studying.
The headline measure fell from 11.3% in June to 9.8% in July, helped by a slowdown within the annual enhance in vitality costs.
The temper in European markets is extra tense, given issues about winter vitality provides and as pure gasoline futures return to their highest ranges since early March.
This led to a lacklustre session for the area’s main indices yesterday, with the FTSE 100 index down 0.6% amid heavy promoting of shares in GSK and Haleon.
CMC Markets expects the FTSE 100 to open unchanged at 7466.