Sainsbury’s shares have surged after the supermarket disclosed talks to sell Argos to Chinese e-commerce giant JD.com.
The shares of British Gas owner Centrica are also in demand, boosted by plans to build a fleet of modular reactors in Hartlepool.
In other developments, AO World reported strong trading and BT Group said two representatives from major shareholder Bharti have joined its board.
FTSE 100 Live Monday
- Centrica unveils nuclear deal
- BT appoints Bharti directors
- AO World lifts guidance
Market update: Sainsbury's and Centrica in demand, AO World up 11%
10:12 , Graeme EvansThe collapse of Argos sale talks today failed to hold back Sainsbury’s shares as the supermarket joined Centrica at the top of a subdued FTSE 100 index.
Speculation over a potential disposal to JD.com, which is one of China’s biggest retailers, was cut short a day after the UK chain confirmed discussions.
Shares still rose 6% or 19.2p to 326.4p as investors welcomed signs of the group’s commitment to a food-first strategy, as well as possibility for a higher offer.
Argos is the UK’s second largest general merchandise retailer, with the third most visited retail website in the UK and over 1,100 collection points.
Today’s rise also reflected relief that Sainsbury's has reiterated its full-year outlook for a retail underlying operating profit of around £1 billion.
AJ Bell investment analyst Dan Coatsworth said: “The firing gun has effectively been triggered on the sale of Argos.
“Sainsbury’s might have rejected an offer from Chinese retailer JD, but the fact it hasn’t come out and said the business isn’t for sale at any price is telling.”
Centrica lifted 3% or 4.6p to 164.95p as it announced a joint venture with US-based X-energy to build up to 12 advanced modular reactors.
The units will be developed at a site adjacent to Hartlepool’s existing nuclear power station, which is currently scheduled to cease generating electricity in 2028.
Centrica and X-energy are in discussions with additional partners, as well as global engineering and construction companies, with the goal of establishing a UK-based development company to develop this and other projects.
Other risers in the top flight include Marks & Spencer, which cheered 8.4p to 346.6p, and housebuilder Persimmon after an advance of 18p to 1106p.
The FTSE 100 index drifted 6.26 points to 9277.03, reflecting caution ahead of this week’s interest rate decisions by the Bank of England and Federal Reserve.
BT Group shares fell back 3% or 6.5p to 199.2p after two representatives of major shareholder Bharti Global joined the board as non-executive directors.
The pharmaceuticals sector weighed on the top flight as AstraZeneca slid 3% or 388p to 11,406p, GSK fell 12p to 1491.5p and Hikma dropped 10p to 1622p.
The FTSE 250 index added 0.6% or 118.82p to 21,744.22, led by AO World after it announced a first ever buyback programme alongside a strong half-year update.
The online household appliances retailer rose 11% or 9.7p to 93.1p.
Wetherspoon to cut prices on “tax equality day”
09:09 , Graeme EvansJD Wetherspoon is to promote its campaign for a VAT reduction in the hospitality industry by cutting the price of all its food and drink by 7.5% on Thursday.
The chain said the move on what is known as “tax equality day” is aimed at demonstrating the unfairness of the differing tax treatment of alcohol and food sold in pubs compared with shops.
All food and drinks in pubs are subject to 20% VAT but supermarkets pay zero VAT on food and, according to Wetherspoon’s, use that saving to sell alcohol to customers at a discounted price.
Aldi steps up store expansion plans, operating profit falls
08:39 , Graeme EvansAldi has announced plans to invest a further £1.6 billion as part of efforts to accelerate its UK supermarket expansion.
The discounter intends to open 80 new shops over the next two years, having previously targeted 1500 locations from a current base of 1060 stores.
The plans were disclosed as the company reported total sales of £18.1 billion in the UK and Ireland in 2024, up from £17.9 billion the year before.
Operating profits fell by about a fifth to £435.5 million from £552.9 million the year earlier. It said the decline was largely because of its spending on lowering prices for customers, investing in shops and raising pay for staff.
Sainsbury's and Centrica shares rise, BT Group lower
08:17 , Graeme EvansSainsbury’s shares have risen 3%, up 9.9p to 317.1p after the supermarket disclosed talks over the potential sale of Argos to China’s JD.com.
The FTSE 100 index is up 4.56 points to 9287.85, with Centrica 2.1p higher at 162.45p after it unveiled plans with US-based X-Energy to build up to 12 advanced modular reactors.
Rolls-Royce, which is at the heart of the UK’s nuclear power ambitions, rose 15p to 1145p.
BT Group shares have fallen 3% or 5.4p to 200.3p after the telecoms group announced the appointment of two directors from major shareholder Bharti.
In the FTSE 250, AO World shares jumped 7% or 6.2p to 89.6p after it unveiled a first ever buyback programme alongside a strong half-year update.
Centrica unveils deal to build nuclear reactors
07:58 , Graeme EvansCentrica and US-based X-energy are to build up to 12 advanced modular reactors as part of wider plans for a major expansion of new nuclear projects in the UK.
The units will be developed at a site adjacent to Hartlepool’s existing nuclear power station, which is currently scheduled to cease generating electricity in 2028.
The scheme is set to generate enough power for up to 1.5 million homes and create up to 2500 jobs.
Centrica will provide initial project capital for development with the goal of initiating full-scale activities in 2026. Subject to regulatory approval, the first electricity generation would be expected in the mid-2030s.
Centrica and X-energy are also in discussions with additional partners, as well as global engineering and construction companies, with the goal of establishing a UK-based development company to develop this and other projects.
The partnership is one of a number to stem from an agreement between the US and UK governments, which is due to be signed this week.
Centrica chief executive Chris O’Shea said: “Our partnership with X-energy marks a bold step forward in delivering advanced nuclear technology that is not only scalable and secure, but also vital to clean industry and powering homes.
“The Xe-100 fleet will help build a resilient energy system that supports national security, affordability, and sustainability. From Sizewell C to Hartlepool, we are backing Britain’s energy future - and building it.”
AO World unveils first buyback, ups profit outlook
07:34 , Graeme EvansOnline appliances retailer AO World today lifted profit guidance and announced its first ever share buyback programme.
The group said it had continued to trade strongly in the first half of the financial year, with revenues 13% higher in the period since 1 April.
It reiterated full-year revenues guidance but said adjusted profits are expected to be in the range of £45-50 million compared with £40-50 million previously.
Strong cash generation and “ongoing confidence” means AO intends to launch a buy back of £10 million.
AO founder and chief executive John Roberts said: “I'm delighted that we are on track to deliver yet another period of double-digit revenue growth and a strong profit performance, whilst maintaining our globally leading customer service standards.”
BT appoints two directors from major shareholder Bharti
07:23 , Graeme EvansBT Group today announced that two representatives from major shareholder Bharti Global have joined the board as non-executives directors.
They are Sunil Bharti Mittal, founder and chairman of Bharti Enterprises, and Gopal Vittal, who is vice chairman and managing director of Bharti Airtel.
The appointments are in line with an agreement that gives Bharti Global the right to nominate two directors for as long as it holds a BT interest of at least 20%.
Bharti last year bought the 24.5% BT stake previously held by Altice UK.
BT chairman Adam Crozier said: "We're delighted to welcome Sunil and Gopal to the board of BT.
“They bring significant experience and global perspectives in the telecoms industry, and we look forward to their contribution to the Board and to the future success of BT Group."
Sainsbury's ends talks over Argos sale to JD.com
07:09 , Graeme EvansSainsbury’s disclosed last night that it is no longer in talks to sell Argos to Chinese e-commerce giant JD.com.
The supermarket said JD.com’s terms and commitments were “not in the best interests of Sainsbury’s shareholders, colleagues and broader stakeholders”.
The statement came a day after Sainsbury’s confirmed speculation it was in talks, adding that it was seeking a deal that could “accelerate Argos’ transformation”.
Argos is the UK’s second largest general merchandise retailer, with the third most visited retail website in the UK and over 1100 collection points.
FTSE 100 seen lower, focus on interest rate outlook
07:00 , Graeme EvansThe FTSE 100 index is set to trade lower, reflecting uncertainty at the start of a busy week for interest rate decisions and updates on the UK economy.
London’s top flight finished Friday’s session 0.15% lower at 9283.29, with futures trading pointing to a decline of 0.1% at today’s opening bell.
On Wall Street, the Nasdaq Composite set another high on Friday amid expectations that the Federal Reserve will cut interest rates on Wednesday evening.
The Dow Jones Industrial Average and S&P 500 index lost ground but both registered gains across the week.
The Bank of England is due to keep interest rates on hold on Thursday, having reviewed unemployment figures on Tuesday and inflation data on Wednesday.
