Water business shares together with United Utilities and Pennon at this time filed five-year business plans with regulator Ofwat.
An common water invoice is more likely to go up by £84 in 2025 and by £156 in 2030 because the business doubles infrastructure spending.
Elsewhere, survey figures proceed to color a bleak image of exercise within the UK manufacturing sector.
FTSE 100 Live Monday
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John Lewis chair Sharon White to stop
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Water business units out spending plans
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House costs in 5.3% annual drop
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UK manufacturing decline continues
30-year gilts method mini-Budget ranges
16:49 , Daniel O’Boyle
The yield on a 30-year gilt has risen above 5%, ending the day simply in need of the degrees reached within the aftermath of Kwasi Kwarteng’s disastrous mini-Budget.
The five-year gilt is yielding 5.006%, having yielded as a lot as 5.019% at one stage this afternoon, narrowly in need of the yield reached simply over a 12 months in the past.
While shorter yields could be pushed extra by anticipated rates of interest, lengthy yields typically replicate the market’s broader religion within the state of the UK economic system as an funding. After the mini-Budget, it was the 30-year gilt that noticed probably the most dramatic rises.
FTSE closes down 1.3% at 7,510.72
16:37 , Daniel O’Boyle
The FTSE 100 closed at 7,510.72 at this time, almost 100 factors beneath the place it opened.
The index opened the day forward, hitting as excessive as 7628, however declined gently within the mid-morning earlier than tumbling within the afternoon. It was beneath 7500 for components of the day however ended up barely forward of that mark.
92 of the shares on the index declined at this time, with insurer Beazley and power agency SSE the most important fallers.
Mixed begin for US shares
16:17 , Daniel O’Boyle
The S&P 500 is barely decrease thus far at this time on Wall Street, however the Nasdaq has climbed.
Big risers included Nvdia and Google’s mother or father firm Alphabet.
Fallers embrace Kellogg and Marathon Oil.
Oil falls again to $91
15:51 , Daniel O’Boyle
The worth of a barrel of Brent Crude oil has fallen to $91, a three-week low, in a aid to these fearing a recent surge within the commodity’s worth might set off a brand new wave of inflation.
Oil had been hovering round $95 a barrel, and gave the impression to be inside attain of $100 at instances. The fall at this time brings oil to the bottom worth since 11 September.
Market snapshot: FTSE retains tumbling
15:33 , Daniel O’Boyle
The FTSE 100 is now down 100 factors regardless of beginning the day forward, whereas gilt yields have additionally surged upwards.
Take a have a look at our market snapshot beneath.
Next finance boss to retire in 2024
15:05 , Daniel O’Boyle
Next CFO Amanda James is to retire in rather less than a 12 months, the high-street retailer revealed at this time.
James has been with subsequent for 28 years, Jonathan Blanchard, at present CFO at Reiss, which is owned by Next.
“Amanda has made a huge contribution to the Group in her 28 years with Next and has been an exceptional guardian of our finances. Our financial position today is testament to her diligence and hard work,” Next mentioned. “The noard is extremely grateful to Amanda for her excellent service to the group.”
Pendragon agrees improved deal to promote UK dealerships to Lithia
14:56 , Daniel O’Boyle
Pendragon has agreed a brand new take care of US automotive dealership large Lithia to promote its UK dealerships for the upper worth of £397 million.
Pendragon had beforehand agreed a £280 million deal, which would go away the business solely with the dealership administration tech it affords to different automotive sellers.
However, additionally dealing with two rival bids for the whole business, Pendragon has now negotiated a much bigger take care of Lithia,
Pendragon shares rose 6.8% to 35.6p on the information. That is 0.2p above the worth implied by the brand new deal.
Market snapshot as FTSE 100 falls additional
14:40 , Daniel O’Boyle
The FTSE 100 has fallen additional within the early afternoon.
Take a have a look at our market snapshot.
Londoners’ water payments to go up by £14.55 from 2025 to 2030 as Thames Water unveils £18.7 billion spending plans
13:35 , Michael Hunter
Thames Water has revealed the cost to Londoners of the following section of funding wanted to chop the discharge of sewage into rivers and the quantity of provide misplaced to leaking mains.
Bills will go up by £14.55 a month within the 2025 to 2030 interval for which it has unveiled spending plans. It would have been much more, however a sluggish efficiency in attaining enhancements within the final spending interval meant regulators limited the price hike by £100 million final week.
Overall within the 5 years from 2025, Thames Water will spend £18.7 billion on service enhancements, a rise of 40%. It follows a wave of public and political anger at a perceived lack of funding which led to requires the business to be renationalised.
Raw sewage overflows, typically triggered by heavy rainfall overwhelming ageing networks, ran for greater than 7,000 hours into the areas rivers and streams final 12 months.
There have additionally been considerations over the funds of the 15-million buyer utility which has a £14 billion debt burden, at a time when rising rates of interest are lifting reimbursement prices.
Its shareholders stumped up £750 million in extra cash in July. Its largest investor is Canadian pension fund OMERS and the UK’s Universities Superannuation Scheme. Thames’s chief govt, Sarah Bentley, resigned abruptly in June after lower than three years within the job.
Co-CEOs Cathryn Ross and Alastair Cochran mentioned at this time:
“We know our performance in some areas is not where it needs to be. That is why we are turning our business around. We have set ourselves a tough challenge. We are committed to learn from the past and adapt for the future so that we improve our service for you, your community and the world around you. You are impatient for us to make progress. We hear you and we are making progress toward delivering this ambition.”
FCA hits agency with £6.5m advantageous after sequence of monetary crime failures
13:10 , Daniel O’Boyle
An funding firm that didn’t do correct checks on its clients regardless of being given two years to get its home so as has been fined £6.5 million by the City watchdog.
The Financial Conduct Authority mentioned that regardless of warning ADM Investor Services International in 2014 that its methods have been lower than scratch, the corporate had not made ample enhancements by 2016.
ADM Investor Services is a subsidiary of an American firm. It had greater than 2,000 business and private clients together with asset managers and rich individuals who used it to commerce grains, power, foreign money and different commodities.
Body scanning agency Thruvision to overlook steering after failed US customs order
12:45 , Daniel O’Boyle
Body scan safety agency Thruvision is about to overlook gross sales steering after US authorities funds challenges meant it didn’t obtain an anticipated order from US border forces.
Shares within the firm, which is listed on London’s junior Aim index, dropped as a lot as 20% initially of buying and selling consequently.
Thruvision mentioned it would see a “material impact” to its monetary efficiency over the second half of the 12 months, and full-year outcomes as a complete, after it was not awarded an order from US Customs and Border Protection (CBP).
Dame Sharon White’s John Lewis exit isn’t any actual shock
12:22 , Daniel O’Boyle
Today’s information that Dame Sharon White is to step down from main Britain’s best-known partnership subsequent 12 months shouldn’t come as an enormous shock regardless of John Lewis’s popularity for boardroom longevity.
The former Treasury civil servant and Ofcom boss was an attention-grabbing appointment when she took over from Charlie Mayfield, who served a 13-year stint, in 2020. She arrived with no retail expertise and, in fact, little has gone proper since.
Dame Sharon rightly recognized that change was wanted to modernise a business caught by the long-term tendencies of the pivot to on-line procuring and the shorter-term maelstroms of the pandemic and the cost-of-living disaster.
I’ll chart a path to decrease taxes – I simply can’t say when, Jeremy Hunt tells Tories
11:53 , Daniel O’Boyle
Jeremy Hunt on Monday firmly saved ajar the door to pre-election tax cuts however advised an more and more fractious Tory social gathering that there can be “no short cuts” and landmark reforms can be wanted.
In his keynote speech to the Conservative annual rally in Manchester, the Chancellor was set to “chart a path to a lower tax economy”. But he earlier rebuffed rising calls from senior Tories for tax cuts to be introduced now. Ahead of unveiling a sequence of main public coverage adjustments, he careworn: “If we are prepared to walk this difficult path it is possible to bring down taxes, and we won’t hesitate to do that. But we can’t say when it will be possible.”
25% of young new mortgage holders ‘have terms of at least 35 years’
11:31 , Daniel O’Boyle
1 / 4 of mortgage holders aged underneath 30 who began their mortgage in early 2023 have a reimbursement time period of 35 years or extra, in keeping with evaluation by a credit score data firm.
Experian discovered that 25% of recent householders aged 29 and underneath between January and March 2023 had a reimbursement time period of no less than 35 years.
This has elevated from 10% in January 2020, in keeping with Experian’s evaluation, which is predicated on new business somewhat than the general inventory of mortgages.
Market snapshot as FTSE 100 falls into crimson
10:51 , Daniel O’Boyle
The FTSE 100 has fallen into unfavorable territory this morning, slipping again beneath the 7600 mark because the robust begin for London shares was shortly erased.
Elsewhere, Bitcoin stays sclose to its highest worth in 15 months, after surging over the weekend.
Take a have a look at our full market snapshot.
Sharon White to stop John Lewis
10:40 , Simon English
The £1 million a 12 months boss of John Lewis shocked the business world at this time by saying she supposed to face down on the finish of her five-year time period in February 2025.
That will make Dame Sharon White, 56, the shortest serving chair within the historical past of the partnership that additionally owns Waitrose, a business that has struggled to compete recently with discount competitors from web gamers and from grocery store rivals reminiscent of Aldi.
The John Lewis Partnership fell to a lack of £234 million final 12 months, a plunge into the crimson that pressured it to scrap the annual employees bonus.
That was a severe blow to the 74,000 employees for whom the bonus was each a celebrated annual occasion and a powerful increase to their incomes.
That was solely the second time there was no employees bonus because the scheme started in 1953.
A press release at this time mentioned: “The Chairman of the John Lewis Partnership, Sharon White, has today asked the Partnership Board to initiate the process to appoint a successor as she enters the latter stages of her five-year term.”
Shares in BAE Systems lifted, XP Power slides 41%
10:17 , Graeme Evans
Shares in BAE Systems have risen 2% or 17.55p to 1015.35p after the MoD introduced £4 billion value of contracts for growth work on the following era of nuclear-powered attack submarines.
The award as a part of the trilateral AUKUS programme will fund important funding at BAE’s Barrow-on-Furness web site. Manufacturing is because of begin in the direction of the tip of the last decade, with the primary UK submarines in service within the late 2030s.
BAE shares are up by about 30% previously 12 months however have fallen again since peaking at 1065p in mid-September. They got further help at this time as Berenberg gave the corporate a “buy” suggestion and 1170p goal worth.
The enchancment for BAE got here because the FTSE 100 index rose 5.05 factors to 7613.13 on aid that US politicians secured an eleventh-hour momentary funding deal that has averted an instantaneous shutdown of presidency operations.
The settlement resets the clock till 17 November, which means the discharge of probably market-moving US jobs figures will go forward on Friday.
Other strongly performing shares in London included grocery store Tesco, which gained 2.1p to 266.3p forward of interim outcomes on Wednesday.
The FTSE 250 index lifted 64.69 factors to 18,344.11, with FirstGroup up 5.5p to 156.4p on hopes of a authorities funding increase for regional bus providers.
Shares in XP Power slumped 41% within the FTSE All-Share after the provider of crucial energy management elements to the electronics business issued a revenue warning.
The Singapore-based firm, a London-listed inventory since 2000, mentioned some clients had deferred shipments into 2024 whereas demand in China has been hit by financial uncertainty.
Shares fell 970p to 1390p as XP mentioned no additional dividends are doubtless on this monetary 12 months past the quarterly cost due on 12 October.
Peel Hunt affords banking optimism
10:09 , Simon English
PEEL Hunt supplied some hope at this time that the moribund marketplace for funding bankers is beginning to decide up.
An absence of flotations and takeover offers has left brokers and merchants scrambling for commerce, with the smaller finish of the market particularly struggling.
Peel Hunt, which has seen its personal shares crash because it floated in 2021 after a pandemic associated buying and selling growth, at this time mentioned half-year revenues shall be up 3.2% to £42.4 million.
It mentioned in its assertion to the City: “Whilst exact timing of recovery cannot be predicted, there are encouraging signs that interest rate rises are bringing inflation under control, and we may be nearing the end of the current tightening cycle.”
Peel Hunt was valued at £280 million when it went public. Today the shares have been regular at 84p giving it a market worth of £109 million.
The dealer acted as joint bookrunner to CAB Payments just lately, a £335 million elevating of recent fairness. The agency mentioned: “Whilst revenues in Investment Banking were significantly ahead of the same period last year, overall deal activity has remained subdued.”
Bigger gamers say privately that now there may be extra readability on rates of interest and inflation, deal stream ought to enhance within the run as much as Christmas. Bankers worry sweeping job cuts if that seems to not be so.
Bills to rise as water business units out five-year plans
09:55 , Michael Hunter
The cost to households of chopping sewage discharges into rivers and lowering leaks from water mains grew to become clearer at this time, because the business filed its subsequent set of five-year business plans with regulators.
An common water invoice is more likely to go up by £84 in 2025 and by £156 in 2030 because the business almost doubles the quantity spent on updating ageing infrastructure to £96 billion.
If Ofwat approves the plans, £11 billion shall be spent to chop sufficient sewage outflows to fill the equal of 6,800 Olympic swimming pools annually.
The plans purpose to chop leakage from provide mains by 1 / 4 by the tip of the last decade. Water corporations have confronted public anger over the dimensions of discharges and leaks.
Zoho CEO warns on state of worldwide economic system
09:54 , Simon Hunt
The boss of Zoho, a billion-dollar Indian multinational IT firm, has warned on the state of the worldwide economic system after a hunch in demand for the agency’s merchandise throughout the board.
Sridhar Vembu mentioned on X, the positioning formally generally known as Twitter: “We saw a fairly pronounced slow down in growth in September across countries and across products.
“Given the geographically and product-wise diversified nature of our revenue streams, I suspect the global economy is taking a turn for the worse. Caution ahead.”
We noticed a reasonably pronounced decelerate in progress in September throughout international locations and throughout merchandise. Given the geographically and product-wise diversified nature of our income streams, I think the worldwide economic system is taking a flip for the more serious.
Caution forward.
— Sridhar Vembu (@svembu) October 2, 2023
Dame Sharon White to step down as John Lewis chair – studies
09:44 , Daniel O’Boyle
John Lewis chair Dame Sharon White is to step down subsequent 12 months, in keeping with studies.
According to the BBC, White won’t search reelection when her five-year time period as chair ends in 2024.
White survived a confidence vote on the John Lewis Partnership’s 2023 biannual assembly, amid studies that she was searching for exterior funding that might have ended the retailer’s historical past of being totally worker owned.
The partnership, which additionally owns Waitrose, reported narrowing losses within the first half of 2023.
UK manufacturing decline continues, however at slower tempo
09:34 , Daniel O’Boyle
UK manufacturing continued its decline in September, however extra slowly than in August, in keeping with an influential business survey.
The S&P Global / CIPS UK Manufacturing Purchasing Managers’ Index for September got here to 44.3, barely above the “flash” studying of 44.2.
That was up from August’s 43.0, however nonetheless effectively beneath the 50 mark that separates progress from decline.
Dr. John Glen, Chief Economist on the Chartered Institute of Procurement & Supply, mentioned: “Uncertainty in the market and low demand resulted in a difficult end to the quarter for the manufacturing sector, with today’s results putting paid to any hope that falling inflation was a sign of better things to come.
“A subdued global economy and a continued cost-of-living crisis in the UK means the industry is facing the dual challenge of low demand both at home and abroad. New orders and new export business fell in September, causing output to decline for the seventh successive month.”
American salt maker heads to AIM to gasoline growth
09:30 , Simon Hunt
A US agency hoping to shake up the salt business is poised to listing on London’s AIM market.
Miami-based MicroSalt, which has developed a low-sodium salt designed to mitigate in opposition to the dangers of heart problems, is searching for to boost £10-15 million on the change to gasoline its growth plans.
The agency is searching for to draw retail traders to the fund elevate, permitting people to speculate pre-IPO with a minimal £500 dedication.
The world sodium business is about to be value almost $10 billion by 2032, in keeping with MicroSalt.
Chancellor provides ‘pay boost for two million’ as residing wage will increase to £11 an hour
09:03
ChancellorJeremy Hunt is anticipated to make use of his speech to Tory social gathering convention to verify a rise within the nationwide residing wage to no less than £11 an hour from subsequent April.
The Conservatives mentioned the transfer will profit two million of the bottom paid, with Mr Hunt additionally anticipated to announce ministers will look once more on the profit sanctions regime in a bid to get the unemployed again into work.
It comes as Rishi Sunak resisted calls from fellow Tories to decide to tax cuts in a pre-election giveaway and vowed to prioritise lowering inflation somewhat than taxes.
BAE leads FTSE 100 increased, United Utilities up 2%
08:29 , Graeme Evans
Shares in BAE Systems are the most effective performing within the FTSE 100 index after the MoD introduced £4 billion of funding for the following era of nuclear-powered attack submarines.
BAE, which rose 22.7p to 1020.5p, was additionally boosted by analysts at Berenberg elevating their suggestion on the shares to “buy” with a brand new worth goal of 1170p.
The FTSE 100 rose 18.45 factors to 7626.53, with different strongly performing shares together with Burberry and GKN proprietor Melrose Industries.
United Utilities rose 2% or 16.2p to 964.4p after it offered particulars of its five-year funding plan, whereas Tesco rallied 1.8p to 266p forward of interim outcomes on Wednesday.
The UK-driven FTSE 250 index improved 0.6% or 115.66 factors to 18,395.08.
Manolo Blahnik earnings greater than triple in 2022
08:13 , Daniel O’Boyle
Luxury heel maker Manolo Blahnik noticed earnings extra than triple in 2022 as its gross sales hit a document €118.2 million (£102.4 million).
The business mentioned a rebound in event put on after the pandemic helped increase gross sales, particularly in its Hangisi shoe. Towards the tip of the 12 months, because the cost-of-living disaster started to take maintain, it mentioned easy “investment” items such because the Maysale shoe additionally carried out effectively.
Profit rose to €21.9 million, greater than thrice the full recorded within the earlier 12 months.
CEO Kristina Blahnik mentioned: “We saw another record financial performance in 2022 at Manolo Blahnik Group with sales across all our channels rebounding very strongly and firmly establishing our position in the US market. 2022 was an extraordinary year of consumer demand which will naturally rebalance in 2023 given multiple macro-economic headwinds.
“In celebration of exceeding €100m Group sales for the first time in our history, we were very proud to share an exceptional bonus of over €1m with our Group employees in November 2022, recognising the hard work and dedication of our teams worldwide and their contribution to reaching this milestone.”
Crypto change supplier Tap Global opens in US
07:54 , Simon Hunt
London-listed crypto change supplier Tap Global at this time unveiled the following stage in its world growth plan because it opens to clients within the US.
The agency has partnered with American business Zero Hash and can function underneath its current regulatory license.
The US is the world’s largest cryptocurrency market, estimated to account for 48% of the worldwide market progress between 2022 and 2027, with 17% of all US adults having invested in cryptocurrencies.
It comes throughout a interval of heightened scrutiny of the actions of crypto corporations by the US securities regulator.
Tap Global CEO David Carr mentioned: “The US is the biggest cryptocurrency market in the world but has also suffered from the impact of bad actors in the market.
“Tap will offer its new users a secure, regulated and innovative alternative to the platforms currently falling under regulatory scrutiny for their imprudent approach to the safety of consumers and their digital assets.”
US shares seen increased, China exercise slows
07:23 , Graeme Evans
Wall Street futures are pointing increased and the FTSE 100 index set for a gradual begin after US legislators averted a dangerous authorities shutdown.
Saturday’s eleventh-hour funding settlement resets the clock till 17 November, giving merchants the possibility to refocus on the US economic system after Friday’s Federal Reserve most well-liked measure of inflation confirmed that worth pressures are easing.
On the again of the worst month for US markets thus far this 12 months, merchants anticipate key benchmarks to open October in constructive territory later.
The FTSE 100 index outperformed Wall Street throughout September, with CMC Markets forecasting an increase of six factors to 7614 at this morning’s opening bell.
The Hong Kong inventory market is closed at this time for the Golden Week vacation however survey information launched yesterday confirmed the composite PMI for China, which measures the manufacturing and providers sectors, fell to 50.9 from 51.7 in August.
Nationwide: UK home costs flat in September, down 5.3% year-on-year
07:07 , Daniel O’Boyle
House costs within the UK have been flat month-on-month in September, however nonetheless down 5.3% year-on-year, in keeping with the Nationwide House Price Index.
Prices defied expectations of a 0.4% month-to-month fall, after a pointy decline in August because the influence of upper rates of interest lastly gave the impression to be taking maintain.
The common home worth is £257,808, in keeping with Nationwide.
In London, home costs fell extra slowly, at 3.8% year-on-year, with the common home costing £514,325. That’s a extra light decline than in June whe the regional index was final printed.
Robert Gardner, Nationwide’s Chief Economist, mentioned:
“Housing market activity remains weak, with just 45,400 mortgages approved for house purchase in August, c.30% below the monthly average prevailing in 2019 before the pandemic struck. This relatively subdued picture is not surprising given the more challenging picture for housing affordability. For example, someone earning an average income and purchasing the typical first-time buyer home with a 20% deposit would spend 38% of their take home pay on their monthly mortgage payment – well above the long-run average of 29%.
“However, investors have marked down their expectations for the future path of Bank Rate in recent months amid signs that underlying inflation pressures in the UK economy are finally easing, and with labour market conditions softening.
“This in turn has put downward pressure on longer term interest rates which underpin fixed rate mortgage pricing (see chart below). If sustained, this will ease some of the pressure on those remortgaging or looking to buy a home.”
Recap: Friday’s high tales
Sunday 1 October 2023 22:56 , Simon Hunt
Good morning. Here’s a abstract of our high headlines from yesterday:
