FTSE 100 Live Friday
- BlackRock backs UK assets
- William Hill revenues miss
- Weather lifts retail sales
Market update: FTSE 100 continues strong run, Mobico shares slump
10:27 , Graeme EvansBlackRock’s support of “undervalued” UK assets today fuelled the upbeat mood in London as the FTSE 100 index headed towards a tenth successive rise.
The blue-chip benchmark lifted another 0.2% or 19.62 points to 8427.06, taking the improvement since the close of trading on 9 April to about 10%.
Signs of President Trump’s less confrontational approach to trade talks with Beijing have bolstered sentiment at the end of a calmer week for global markets.
The reassuring tone of first quarter earnings reports have also helped, with Google owner Alphabet the latest US firm to post figures ahead of expectations.
Next week’s corporate diary includes figures from Microsoft, Meta Platforms, Amazon and Apple, while Barclays, GSK and BP are among the UK stocks reporting.
In an interview with the Times, BlackRock boss Larry Fink said his firm’s job has been to look through the recent tariff chaos in order to find opportunities.
He revealed that the fund manager has been building positions in UK assets “across the board”, encouraged by Keir Starmer’s emphasis on growth.
The UK picture was further bolstered today by resilience among UK consumers after March retail sales figures showed unexpected volume growth of 0.4%.
The performance helped to underpin a robust showing by the domestic-focused FTSE 250 index, which added 0.4% or 70.92 points to 19,575.29.
Mid-cap stocks up by 2% or more included Deliveroo, Dr Martens and Wizz Air.
In the FTSE 100, the shares of Alphabet investor Pershing Square Holdings fared well on the back of last night’s results by the Google parent company.
Pershing rose 74p to 3588p, while Polar Capital Technology Trust added 5p to 289p and Nvidia backer Scottish Mortgage Investment Trust lifted 15.4p to 904.2p.
Aerospace-focused stocks were also in demand as Melrose Industries surged 4% or 15.6p to 429.4p, Rolls-Royce by 16.2p to 751.4p and Babcock International added 21p to 815.5p.
At the bottom of the FTSE 100, Endeavour Mining fell back 48p to 2008p and Unilever weakened 97p to 4694p.
In the FTSE 250, National Express owner Mobico reversed 27% or 15.7p to 43.3p as investors reacted to the sale of the company’s North American school bus operation for an enterprise value of £457 million.
Alongside the debt reduction move, the company said that annual results on Tuesday will show operating profits towards the lower end of previous guidance.
Mobico sells US school bus operation, shares slide
09:40 , Graeme EvansMobico shares today skidded 21% after the National Express owner announced the sale of its North American school bus operation and scaled back profit hopes.
Chief executive Ignacio Garat said the deal with I Squared Capital for an enterprise value of £457 million was a significant milestone for Mobico.
He called it a first step in strengthening the group's balance sheet while it also allows Mobico to reallocate resources away from a capital-intensive business.
The company said annual results due on Tuesday are likely to show operating profits at the lower end of previous guidance.
The school bus operation is the second largest player in the North American market, with approximately 14,135 vehicles. Mobico, which has operations in Europe, Middle East and North Africa, announced its intention to sell the business in 2023.
The company’s FTSE 250-listed shares fell 12.5p to 46.4p.
BlackRock targets “undervalued” UK assets
08:50 , Graeme EvansBlackRock, the world’s largest investor, has embarked on a buying spree of “undervalued” British assets in an apparent vote of confidence in the UK economy.
In an interview with The Times, chairman and chief executive Larry Fink said the fund manager has been buying positions in UK assets “across the board” after being reassured by Keir Starmer’s emphasis on growth.
Fink acknowledged that while many British business leaders were critical on issues such as higher employers' national insurance payments the “bigger picture” for the UK looked more upbeat.
William Hill UK revenues short of hopes
08:46 , Graeme EvansThe gambling group behind William Hill and 888 has reported weaker-than-expected trading in the UK and Ireland.
Evoke, which also owns the Mr Green brand, revealed that group revenues rose by 1% to £437 million for the three months to March 31.
But Its UK and Ireland online business saw revenues fall by 1% in the quarter.
This followed the introduction of additional safer gambling measures and a 21% drop in active players after a period of promotional activity the previous year.
Chief executive Per Widerström said: “Whilst the UK&I Online and Retail performance was behind where we wanted to be in Q1, we have moved swiftly to improve some of the underlying drivers of the performance and have been seeing stronger trends in April.”
Evoke shares rose 0.2p to 48.15p, down by a fifth so far this year.
Tech stocks advance as FTSE 100 makes steady start, WPP flat
08:28 , Graeme EvansThe FTSE 100 is close to its opening mark at 8402, whereas benchmarks in France and Germany have risen about 0.5% on hopes of an easing in trade tensions.
In London, Alphabet investor Pershing Square Holdings rose 46p to 3560p after the Google owner reported strong first quarter figures last night.
Polar Capital Investment Trust also lifted 5.2p to 289.2p and Scottish Mortgage Investment Trust rose 13.45p to 902.25p
WPP shares are broadly unchanged at 558.6p after the advertising and marketing group reported a 5% fall in first quarter revenues to £3.2 billion.
The decline of 0.7% on a like-for-like basis was in line with expectations as WPP anticipates a second-half weighted performance this year.
Alphabet beats forecasts, sticks to spending target
07:54 , Graeme EvansThe shares of Google parent company Alphabet last night rose 5% in after-hours dealings, lifted by revenue and earnings beats in its first quarter results.
Google Services revenues increased 10% to $77.3 billion, reflecting strong performances by the search business and YouTube ads. Cloud revenues increased 28% to $12.3 billion.
Alphabet also reaffirmed its $75 billion capital expenditure target for 2025.
Hargreaves Lansdown analyst Matt Britzman said the company’s confident tone provided a boost for the AI investment story.
He added: “There were some fears the company might tighten the purse strings given a softer macro backdrop, but instead, the message was clear: demand, particularly in cloud, remains high, and supply is struggling to keep up.
“That pressure is expected to ease in the back half of the year as more capacity comes online - welcome news for names like Nvidia.”
Red flag report shows more firms in distress
07:21 , Graeme EvansThe number of businesses in ‘critical’ financial distress rose 13.1% year-on-year in the first quarter, the latest Red Flag Alert report by Begbies Traynor shows.
Bars and restaurants (+31.2%) and travel & tourism (+25.5%) experienced the greatest increase in ‘critical’ financial distress over the last 12 months.
Nearly two-thirds of the sectors covered by the research experienced double-digit percentage growth over the last year.
The total of 45,416, which was down 3.1% on the previous quarter, covers the period before major tariff and tax regime changes.
Weather boost for March retail sales
07:07 , Graeme EvansRetail sales volumes rose for a third month in a row in March, up by a better-than-expected 0.4%.
The figure recorded by the Office for National Statistics follows a rise of 0.7% in February and compares with City forecasts for a decline of about 0.4%.
Clothing and outdoor retailers reported that good weather boosted sales, partly offset by falls in supermarket sales.
Across the first quarter, sales volumes rose by 1.6% on the previous three months and by 1.7% when compared with the same quarter a year earlier.
The figures cover the period before US tariffs turmoil and April’s across-the board increases in household bills.
GfK’s long-running Consumer Confidence Index today fell four points in April to minus 23, led by an eight-point fall in expectations for the wider economy.
FTSE 100 run set to continue, Asia markets higher
07:00 , Graeme EvansThe FTSE 100 index is set to open higher after closing last night in positive territory for a ninth session in a row, its best run since 2019.
London’s top flight is seen rising by about 20 points, having edged up to a three-week high of 8407 at Thursday’s closing bell.
On Wall Street, the Dow Jones Industrial Average rose 1.2% and the S&P 500 advanced by 2%. The tech-focused Nasdaq Composite led the way, with a rise of 2.7%.
Asia markets are also higher after gains of more than 1% for the Nikkei 225 and the Hang Seng index.
The gold price stands at $3292 an ounce and Brent Crude at $66.87 a barrel.
