FTSE close: Unilever, Whitbread down; WPP up

 

17.15 (close)

Dealers monitor their screens on the trading floor of IG Index in London

News of a slowdown in the US economy and more disappointing first quarter earnings held back progress on the London market today.

The US government said the economy grew at a 1.8% annual rate in the first quarter - the weakest result since last spring and a sharp slowdown on the previous three months.

Figures also revealed an unexpected hike in US jobless claims, keeping investors on the sidelines in London, with the FTSE 100 edging up 1.7 points to 6069.9.

But markets in France and Germany made robust gains after investors drew comfort from last night's assurances by the US Federal Reserve that the recovery of the world's biggest economy remained on track.

The Dow Jones Industrial Average also tentatively held on to yesterday's gains following the Fed's decision to keep interest rates on hold.

Sterling remained near a 17-month high against a weakened US dollar, at 1.66 dollars.

And with US interest rates unlikely to change for some time, the weaker greenback made commodities such as crude oil cheaper for investors with other currencies.

Brent crude was near recent highs at 124 US dollars a barrel.

But rising oil prices were not enough to keep BP off the top flight fallers board after its results yesterday compared unfavourably with figures from rival Shell today.

Royal Dutch Shell rose 10p to 2327p, after beating forecasts with a 30% jump in first quarter profits, but BP fell 3.5p to 462.6p after its 2% drop in first quarter profits.

However, there were disappointing updates from the likes of Unilever and AstraZeneca, which kept the market under pressure.

Consumer goods giant Unilever fell 48p to 1942p, after it said sales increased by 7% to 10.9bn euros (£9.7bn) in the first quarter of 2011, but added that margins were under pressure due to rising costs.

Leisure group Whitbread was another heavy faller, down 3%, after its guidance on recent like-for-like sales overshadowed annual results showing a 20% rise in underlying profits to £287.1m.

The warning that sales were below the rate of growth seen at the end of the financial year also took the gloss off its announcement of a five-year plan to add 50% more UK rooms to its Premier Inn hotel division and double the size of its Costa coffee business. Shares declined 57p to 1680p.

On the risers board, marketing giant WPP added 3% after the company raised its guidance for 2011 trading on the back of better-than-expected revenues in the UK and United States. Shares were up 22p to 781.5p.

Standard Life was another riser - 7p ahead at 226.1p - after the insurer posted a stronger-than-expected 25% increase in sales for the first quarter.

Outside the top flight, transport group Stagecoach rose 10.4p to 246.9p after it said the overall profitability of the business remained strong.

The biggest Footsie risers were ITV up 3.3p to 76.1p, International Power ahead 10.5p to 330.6p, Standard Life up 7p to 226.1p and WPP up 22p to 781.5p.

The biggest Footsie fallers were AstraZeneca down 107.5p to 2990p, Whitbread off 57p to 1680p, Shire down 51p to 1850p and Unilever down 48p to 1942p.

15.15: The FTSE 100 is back in positive territory, taking heart from a higher opening on Wall Street.

The Footsie is 6.6 points higher at 6074.77. It came after the Dow Jones rose on opening. A short time ago the Dow was 11.96 points higher at 12,702.92.

We've got more on the Whitbread numbers. Whitbread unveiled a 20% rise in underlying annual pre-tax profits to £287.1m. Total revenue was up 11.5% to £1.6bn.

The firm announced plans to boost the number of Premier Inn rooms in the UK by 50% to 65,000 over the next five years.

That has been enough to scare off investors ans Whitbread shares are 80p - 4.6% - lower at 1,657p.

14.15:

The news that the US Federal Reserve will keep rates lower for longer has prompted an new record gold price.

The precious metal ascended to a lifetime high of $1,532.91 an ounce, breaking record for the second straight day.

Last night the Fed held interest rates at between zero and 0.25% and confirmed that its $600bn bond-buying programme will end as planned in June.

Read the whole story here.

Meanwhile, the FTSE 100 is bumping along, 9.07 points lower today at 6059.09.

13.10:

As we head into another long weekend of closed markets, the FTSE 100 has dipped into negative territory.

The Footsie is 14.5 points lower over the session at 6053.64. Notable falers have included Whitbread, Unilever and Astrazeneca.

On the risers board, marketing giant WPP added more than 2% after the company raised its guidance for 2011 trading on the back of better-than-expected revenues in the UK and United States.

Over on Wall Street, the Dow Jones is predicted to open higher today.

11.50:

News Corp's bid for BSkyB may get more expensive after the satellite broadcaster posted higher profits and more viewers.

Underlying profits at Sky increased 24% to £790m in the nine months to March 31 as new services such as the recently-launched Sky Atlantic channel helped customer numbers grow to 10.1m.

Shares in British Sky Broadcasting Group have moved up 3.5p to 838p. Read the full story here.

Shell's stock is ahead 13.5p at 2,330.5p after sky-high oil prices helped it to boost first quarter profits by 30%.

It racked up earnings of £3.8bn in the first three months of this year – besting BP which yesterday revealed a 2% drop in profits to £3.3bn. We have more here.

The FTSE 100 is 2.2 points higher at 6,070.4.

11.20:

The FTSE 100 is moving in a narrow range and is currently 2.39 points higher at 6070.55.

In currency today, the pound is at $1.6681 compared to $1.6530 at the previous close. Against the euro the pound is €1.1241 compared to €1.1277 at the previous close.

09.40:

The Footsie shouldered losses at Whitbread and Unilever, after badly-received updates, thanks to news that the US will keep rates low for longer.

The prospect of US interest rates remaining low for an extended period helped boost markets around the world and the FTSE 100 was 7.62 points higher at 6075.78 in early trading in London.

The latest comments on the US economy from Federal Reserve chairman Ben Bernanke resulted in a 0.7% rise for the Dow Jones Industrial Average, while Asian markets followed suit with a gain of 1.6% for the Nikkei 225 index.

That optimism was needed after falls for a number of heavyweight companies during a busy session for corporate updates.

Leisure group Whitbread led the fallers board, down 5%, after it unveiled ambitious growth plans, including 50% more UK rooms for its Premier Inn hotel business and a doubling in size of its Costa coffee business.

The five-year plan unnerved investors despite a 20% rise in underlying profits to £287.1m as shares declined 95.5p to 1641.5p.

Unilever was also squeezed, falling 50.5p to 1939.5p, after it said sales increased by 7% to €10.9bn (£9.7bn) in the first quarter of 2011 but that margins were under pressure due to rising costs.

Other fallers included oil giant BP - down 5.9p to 460.1p - after its results compared unfavourably with figures today from Royal Dutch Shell, which rose 17p to 2334p after beating forecasts with a 30% jump in first quarter profits.