FTSE 100 set to continue record progress, US markets recover
07:27 , Graeme Evans
The FTSE 100 index is set to build on last night’s record finish, with IG Index forecasting a rise of 0.5% or 43 points to an intraday all-time high near 8066.
The rise follows a better session on Wall Street as the S&P 500 index and Nasdaq Composite recovered from recent tech selling by climbing 0.9% and 1.1% respectively.
Nvidia put back 4% after Friday’s fall of 10% but Tesla shares remained under pressure ahead of tonight’s first quarter results, falling another 3%.
This week’s stronger showing by global markets follows an easing in Middle East tensions and some encouragement on the inflation front after Brent Crude fell to near $87 a barrel.
The progress of London’s FTSE 100 index also reflects the impact of a weaker pound on the appeal of overseas earning stocks.
Sterling, which has dipped on expectations it will take longer in the US than the UK to cut interest rates, stood at $1.2337 this morning.
JD Sports in billion-dollar deal for US sportswear chain Hibbett
07:24 , Michael Hunter
JD Sports’ run into US markets picked up speed today as the FTSE 100 company unveiled a billion-dollar deal to buy Hibbett, a major leisure wear chain.
It values the American firm at £878 million, or $1.083 billion. The offer prices each of its Nasdaq-listed shares at $87.50.
Hibbett is over 75 years old based Birmingham, Alabama and has over 1,000 stores in 36 US states under the Hibbett and City Gear brands.
Régis Schultz, CEO of JD Sports, said: “Hibbett’s footprint is highly complementary, adding a stronger presence in communities across the southeastern US, where we currently have a limited presence. It will also provide a stronger platform for the rollout of the JD fascia in the US.” He added:
“Financially, it accelerates our growth plans within the US and is expected to be earnings accretive from year one and before potential synergies are taken into account.”
More outflows at Jupiter
07:14 , Simon English
The strife in the UK funds sector continued today as Jupiter Fund Management said it saw outflows of £1.6 billion as nervous clients yanked money from the stock market.
London shares being seen as poor value has been a problem for several years now.
Jupiter said positive “market movements” helped assets under management rise £2 billion in the first quarter to £52.6 billion.
Jupiter CEO Matthew Beesley has a big job on his hands to improve the sentiment of investors.
The outflows included £1.1 billion from the so-called Value team.
Other fund managers have faced the same problems.
March deficit is £11.9 bn
07:06 , Jonathan Prynn
The Government borrowed £11.9 billion last month, down £4.7 bn on the same month last year. In the year to date borrowing has been £120.7 billion, equivalent to a deficit of 4.4% of GDP. Government debt is now 98.3% of GDP.
Recap: Monday’s top stories
06:44 , Simon Hunt
Good morning from the Standard City desk.
Most Thames Water customers demand only two things from their supplier: that clean drinkable water pours from their tops when they turn them on — every single time — and that the company deals with their waste water and returns it to the river cleaned up and in a fit state so that it does no harm to the environment.
They expect to pay for those two essential services and would accept that those bills will have to rise over time as costs go up in line with inflation. As we know Thames has a far from unblemished record on both those scores with bursts from ageing pipes resulting in far too frequent interruption to supply in London.
Now those same customers have been told that bills may have to go up as much as 44% by 2030 if those shortfalls and failings are to have any chance of being put right.
Customers could just about stomach that if it was not for the decades of poor management, dubiously complex financial engineering, and high levels of dividends to shareholders that have marked the corporate stewardship of Thames.
Yesterday’s new investment plan, which raises the possibility of bills going up by almost £200 over five years, will do nothing to improve that unhappy situation, particularly as it does not explain how shareholders, rather than just customers, will share the pain.
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Here’s a summary of our other top stories from yesterday:
