FTSE 100 Live: Pound at 37-year low, retail sales drop, US stocks slip

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After falling more than expected in August, the pound hit a new 37-year low today.

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The 1.6% month-on-month decline reported by the Office for National Statistics, which compared with the city’s forecast of a 0.5% drop, was driven by a wide range of sectors as price pressure intensified.

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On the 30th anniversary of Black Wednesday, poor retail updates kept sterling under pressure below $1.14.

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FTSE 100 falls as consumer stocks plunge on fears of global economy

London’s FTSE 100 was lower in afternoon trading after Wall Street shares hit two-month lows amid more fears over the global economy.

Consumer stocks took major losses on concerns that high inflation and rising rates were holding back growth. They came after warnings of gains from US delivery giant FedEx. Deepened fears about the extent of the worldwide recession.

Intercontinental Hotels fell 4.4% to 4683p. The retailer, Fraser Group, fell 2% to 786p. Consumer products giant Reckitt Benckiser fell 1.6% to 6270p. Resource stocks were also lower, with commodity trader Glencore down 3% at 489p.

Overall, the FTSE 100 closed 40 points lower at 7234.17.

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Wall Street’s S&P 500 dips below 3900 points as global economic slowdown darkens

There are concerns that a profit warning from the delivery behemoth FedEx could be another warning sign of a global economic slowdown, sending New York’s main stock index under a key support level at 3,900.

The S&P 500 fell 62 points to 3837.90 – a loss of 1.6% to a two-month low – after the worldwide logistics company announced revenue and profit below analysts’ forecasts after last session’s closing bell. It also pulled its current guidance. Shares of FedEx have fallen by more than a fifth.

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Incoming CEO of Jupiter Fund Management considers restructuring

According to a report today, employees at Jupiter Fund Management are gearing up for a change after their incoming boss plans an overhaul in one of the city’s most famous names.

Matthew Beasley sent employees an email about the changes, according to financial TimesJoe says some of those have already taken effect, including the departure of its chief risk officer.

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US futures hit two-month low after FedEx profit warning

Futures on Wall Street slid to a two-month low this morning after investors were stunned by profit warnings from delivery giant FedEx.

Nasdaq futures were down 1%, while S&P futures fell 0.8%.

Yesterday, FedEx recalled analysts’ expectations on sales and profits and said it would roll back its previous financial forecasts, as it expected sales to worsen in the coming months. The announcement sent the delivery firm’s shares down more than 16%, one of the most single-day falls in its history, and downed share prices of 7.1% and 2.6% on rivals UPS and Amazon. pushed.

“The sentiment may not have been helped by last night’s profit alert from FedEx,” said AJ Bell’s Russ Mold.

“As another stock that’s a classic bellwether for economic activity, Delivery Group said it expected trading to weaken further, which could explain why Royal Mail shares fell 10% this morning.” Because investors fear that the near-term prospects are also weak.”

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Fears of recession rise as number of businesses closing in August

The sharp increase in the number of companies closing down has threatened the economy with the UK recession and the crisis of inflation and the cost of living especially for small businesses.

Official government data for August showed that nearly 2,000 registered companies went bankrupt in the month in England and Wales, an increase of 43% from 2021 and 42% from pre-pandemic levels in 2019. It was also the third highest monthly number recorded since January 2019.

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Naked Wine calls founder and former CEO after shares trampled

After a share-price drop and sudden, board-level resignation sent a chill through shares in Naked Wine, its former CEO is coming back to help it prepare revised “operational and financial plans.”

Rowan Gormley also has some skin in the game. He is a physical shareholder in the Norwich-based tipple-by-subscription company, which he founded in 2008, holding approximately 3%. The South African entrepreneur was also the CEO of Majestic Wines after purchasing Naked Wines.

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Capita shares surge after £150 million fintech settlement

Shares of Capita rose 9% to 28p this morning after the professional services company announced the sale of its fintech business Pay360 in a deal worth £156 million.

It is the latest in a suite of settlements by the company as it seeks to scale down operations and pay off larger sums.

Capita finished last year off its settlement target, raking in more than £700 million from the sale of its service brands, including £115 from IT consultancy Trustmark in March 2022 and £40 million from software business AMT Cybex in December 2021. The firm had racked up more than £1 billion in net debt by the end of 2020.

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FedEx warning affects Royal Mail, downgrades for land securities

Shares of Royal Mail came under more pressure today as investors reacted to a profit warning by delivery giant FedEx.

The US company, widely regarded as a bellwether for the global economy, withdrew full-year results guidance after reporting weaker-than-expected volumes internationally as well as in its domestic market.

The update raised fears over the outlook for Royal Mail’s Europe-focused GLS parcel delivery business, which has been a strong performer at a time when the strike-hit UK postal operation is expected to suffer material losses.

Shares of FedEx fell 16% after Wall Street closed on Thursday and Royal Mail dived 10% or 25.7p to 224.2p, making the FTSE 250-listed stock its lowest level since September 2020 have arrived.

Analysts at JP Morgan reflect an uncertain outlook by reducing their recommendation on Royal Mail shares to ‘neutral’ with a lower target price of 270p.

After Goldman Sachs placed a “sell” recommendation on the owner of Piccadilly Lights and the Cardinal Place shopping center, the economic storm clouds meant a major drop in shares of property giant Land Securities.

US Bank slashed its target price to 500p, leaving shares at the top of the blue-chip followers’ board down from 29p to 589p. The broader FTSE 100 index fell 8.58 points to 7273.49, thanks to a 2% gain for heavyweight AstraZeneca on this resilient performance that reported two potential drug approvals in the European Union.

The FTSE 250 index, which is back in bear market territory after falling over 20%, fell another 0.6%, or 115.66 points, to 18,770.66. In FTSE all-shares, Capita rose 0.6p to 26.15p following a deal to sell payments business Pay360 for approximately £150 million.

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Royal Mail slips 10%, FTSE 100 lower

Sentiment jolts from weak mining stocks and last night’s FedEx profit alert meant the FTSE 100 index fell 34.57 points to 7247.50.

Land securities fell more than 3%, from 21.4p to 597p, after Goldman Sachs gave a “sell” recommendation to retail landlords and a new 500p target price.

The FTSE 250 index, which is back in bear market territory after falling over 20%, fell 120.33 points to 18,765.99.

Royal Mail slumped 10%, or 25.3p to 224.6p, after FedEx warnings raised fears over the outlook for the company’s Europe-focused GLS parcel delivery business. A 270p cut in JPMorgan’s price recommendation added to the pressure.

In an FTSE all-share, shares of outsourcer Capita rose 0.6p to 26.15p as it announced plans to sell Pay360 in a deal with Access PaySuite, which values ​​the payments business at around £150 million.

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Retail sales added to the bearish picture

The large drop in retail sales volume for August will increase speculation that the UK is already in recession.

Sales volumes in every major category fell for the first time since July 2021, when all COVID restrictions on hospitality were lifted.

Sales at non-food stores declined 1.9% during the month, with department stores down 2.7% and clothing stores down 0.6%. Sales volume for online retailers declined 2.6% and food store volume declined 0.8%.

The latest gloomy update on the UK economy left sterling above its recent 37-year low of around $1.14 today.

Capital Economics said: “Retail sales will likely continue to struggle as the cost of living crisis hits hard in the coming months. But even so, the Bank of England will still have to aggressively raise interest rates.

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Credit: www.standard.co.uk /

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