FTSE 100 Live Monday
- Review calls for Ofwat overhaul
- Higher fares lift Ryanair profit
- BP appoints new chair
Market update: Glencore up 4% in steady FTSE 100, Mony Group down 7%
10:02 , Graeme EvansMining stocks surged by as much as 4% today as the FTSE 100 index held its 9000 position at the start of a busy week for corporate earnings.
London’s top flight rose 8.97 points to 9001.09, with the higher price of copper helping Glencore to put on 11.2p to 314.75p and Anglo American to advance 77p to 2310p.
Rio Tinto added 141p to 4628.5p and silver miner Fresnillo improved 17p to 1462p.
Other risers included easyJet, which lifted 5.1p to 505p after rival Ryanair reported stronger-than-expected fares for last-minute bookings in first quarter results.
The Dublin-based carrier said revenues jumped by 20%, boosted by the timing of Easter and as average fares rose by 21% on a year earlier.
The fallers board included NatWest, which drifted 2.3p to 493.9p ahead of the release of second quarter figures on Friday.
Lloyds Banking Group, British Gas owner Centrica and BT Group are among the other companies due to update investors later this week.
Elsewhere, Severn Trent rose 24p to 2705p and United Utilities lifted 11.3p to 1129.3p after a major review of the water sector proposed the creation of a tough new super regulator.
BP shares were 0.5% or 2.2p higher at 402.05p as the oil giant announced former CRH chief executive Albert Manifold as its next chair.
The FTSE 250 index rose 0.3% or 60.54 points to 21,958.80, led by a jump of 19% for Oxford Nanopore as the gene sequencing firm forecast half-year results ahead of City expectations. The shares rose 28.3p to 174.9p.
Mony Group fell 7% or 15.4p to 203.9p after the price comparison business reported first half revenues growth of 1% to £225.3 million.
This was short of City hopes due to headwinds in some end markets, although 2% growth in underlying earnings to £75.1 million was better than forecast.
US earnings season picks up pace after robust start
09:05 , Graeme EvansMore than 15% of the S&P 500 index by market value is set to report results this week, including Tesla and Google business Alphabet after Wednesday’s closing bell.
UBS said nearly 80% of companies have so far beaten earnings per share estimates, with the median beat at 3.6%. Guidance has been robust for the current quarter.
The bank said: “With stocks at record highs, investors came into the earnings season wondering if the fundamentals would be supportive despite trade and tariff policy uncertainty. We believe the resilient results so far are a step in the right direction.”
In the UK, Lloyds Banking Group and British Gas owner Centrica report results on Thursday before NatWest presents earnings on Friday.
Higher fares lift Ryanair profits
08:31 , Graeme EvansRyanair today said that quarterly profits more than doubled thanks to strong Easter demand and as fares surged by more than 20%.
The Irish carrier reported a surplus of 820 million euros (£710.3 million) for the three months to the end of June, up from 360 million euros (£311.8 million) a year earlier.
Revenues jumped by 20% to 4.34 billion euros (£3.76 billion), boosted by the timing of Easter but also as Ryanair saw fares rise – in particular better-than-expected fares for last-minute bookings.
The average fare rose 21% year-on-year to 51 euros (£44.18) in the quarter, it said.
Miners and airlines support FTSE 100, Diageo lower
08:26 , Graeme EvansThe FTSE 100 index is 3.61 points higher at 8995.73, driven by a strong performance for stocks in the mining sector.
Glencore shares rose by 3% or 9.8p to 313.35p, Rio Tinto lifted 2% or 111.5p to 4599p and Anglo American added 60p to trade at 2293p.
Airlines also performed well after Ryanair said quarterly profits more than doubled thanks to strong Easter demand and as fares surged by more than 20%
Low-cost rival easyJet lifted 6.5p to 506.4p and British Airways owner IAG advanced by 4.5p to 384.9p.
On the fallers board, Diageo weakened 18.5p to 1910.5p and WPP dropped 3.8p to 414.8p.
BP appoints new board chair
07:11 , Graeme EvansBP today appointed Albert Manifold to succeed Helge Lund as chair of the company.
Manifold, who will take on the role on 1 October, was chief executive of building materials business CRH for a decade until last December.
BP said: “Under his leadership CRH strategically reshaped its portfolio and delivered superior growth and performance.
“He has a strong track record of strategic leadership and operational delivery with a focus on cost efficiency, disciplined capital allocation and cash flow generation.”
CRH is the largest building materials business in North America, Europe and Australia, employing a total of 80,000 people in 3,800 operating locations.
Senior independent director Amanda Blanc, who led the succession process, said: "I am delighted that following a rigorous and comprehensive global search we have been able to appoint Albert as our new chair.
“His impressive track record of shareholder value creation at CRH demonstrates he is the ideal candidate to oversee BP’s next chapter.”
Lund oversaw two resets of BP’s strategy after becoming chair in January 2019.
The latest took place in February, when BP unveiled a new financial framework that scaled back investment in transition businesses.
Water industry report calls for regulatory overhaul
07:09 , Graeme EvansThe system for regulating water companies should be overhauled and replaced with one body for England and one body for Wales, a landmark review of the sector has advised.
The much-anticipated final report from the Independent Water Commission, led by former Bank of England deputy governor Sir Jon Cunliffe, outlined 88 recommendations to the UK and Welsh governments to turn around the ailing industry.
It recommended abolishing Ofwat, which oversees how much water companies in England and Wales can charge for services, as well as the Drinking Water Inspectorate (DWI), which ensures that public water supplies are safe.
The report advised removing the regulatory roles of the Environment Agency and Natural England, which monitor the sector’s impact on nature, such as companies illegally dumping sewage into waterways.
Instead, the review said a single integrated water regulator in England and a single water regulator in Wales should be established.
FTSE 100 steady, Wall Street in robust finish
07:03 , Graeme EvansThe FTSE 100 index is set to make a steady start to the week after Wall Street’s leading benchmarks held firm on Friday.
The Dow Jones Industrial Average fell by 0.3% while the S&P 500 index and Nasdaq Composite finished close to their opening marks.
London’s top flight closed up by 0.2% or 19.48 points at 8992.12.
