Weekly review
By Josh White
Date: Friday 10 Jan 2025
(Sharecast News) - The FTSE 100 ended the week up 24.51 points, or 0.3%, closing at 8,248.49 on Friday.
Equity view
Vodafone has raised its stake in its Indian joint venture Vodafone Idea (Vi) after selling its investment in the country's mobile tower installation company Indus Towers. The UK firm said on Friday it had sold its remaining 3% shareholding in Indus Towers for 28bn INR ($330m), exiting a joint venture set up in 2007 with Bharti Airtel and Idea Cellular to provide shared telecom infrastructure. Vodafone has been slowly selling shares in the company since the merger, after which it held a 28.12% stake.
Shipping services firm Clarkson said on Friday that results for the year to the end of December 2024 are set to be "slightly ahead" of current market expectations. The company now expects underlying pre-tax profit to be "not less than" £115m. This compares to £109.2m in the year to the end of December 2023. Results are due for release on 10 March.
GSK announced on Friday that the US Food and Drug Administration (FDA) has accepted its regulatory application for a prefilled syringe version of Shingrix, its recombinant zoster vaccine for preventing shingles. The FTSE 100 pharmaceutical giant said that if approved, the new presentation would eliminate the need for reconstituting vials before administration, offering a more convenient option for delivering the vaccine.
Mike Ashley's Frasers Group further expanded its investment in Marks Electrical Group on Friday, increasing its shareholding to 7.85%, according to regulatory filings. It marked a significant rise from the initial 6.4% stake, disclosed in late November when the Sports Direct owner acquired over 6.73 million shares in the UK-based electrical retailer. Marks Electrical welcomed Frasers Group as a shareholder at the time.
Student accommodation group Unite has reiterated its profit guidance after a solid end to its financial year, as it pointed to continued strong occupancy levels and rental growth over the next academic year. Trading over the fourth quarter was said to have been in line with expectations and the company still expected adjusted earnings per share to hit the upper end of its 45.5-46.5p guidance range. Chief executive Joe Lister said the company had made a "strong start" to the 2025/26 sales cycle, with 66% of beds already sold, albeit down from 70% at this time last year.
UK property company Derwent London said its development in London's Baker Street was now fully pre-let. The company on Thursday said all 204,300 sq ft of office space would be occupied by five tenants after two new recent leasing deals which take the office rent roll to £21.2m. The site is due for completion in the first half of the year.
Airtel Africa said chief financial officer Jaideep Paul was leaving the company in July to pursue a new position within the wider Bharti Group. Paul will be succeeded by Kamal Dua, currently deputy CFO, who will also become an executive director after his appointment at the 2025 annual general meeting.
Discount retailer B&M European Value Retail announced a special dividend of £151m in a trading update on Thursday, after reporting a strong third-quarter as it narrowed its full-year guidance. The FTSE 250 company said year-to-date group revenue was up 3.3% after the third quarter at £4.331bn, with quarterly revenue up 2.6% to £1.687bn. On a constant currency basis, revenue growth for the year-to-date and third quarter stood at 3.5% and 2.8%, respectively.
Safety equipment maker Halma said chief financial officer Steve Gunning has decided to retire at the end of March. Independent non-executive director Carole Cran has been appointed CFO-designate with immediate effect and will succeed Gunning. Cran was most recently CFO of Forth Ports and before that, in the same job at Aggreko.
Oil major Shell has announced that results for the fourth quarter were significantly lower than the preceding three months, as it revealed $700m of well-write offs and a $1.3bn hit to cashflow. In an update ahead of its actual quarterly results on 30 January, Shell cut its liquefied natural gas production guidance for the three months to 30 December to 6.8-7.2m metric tons, down from earlier estimates of 6.9-7.5m tons. The company said the reduction was due to lower feedgas and fewer cargos due to the timing of liftings.
Hornby's share price continued to jump on Wednesday after the model train and collectibles group reported impressive results for its third quarter, bolstered by a strong festive selling season. Group sales for the three months to 31 December were up 7% on last year when excluding the LCD Enterprises business that was sold in November. For December alone, revenues were 23% higher year-on-year, while gross profits were up 38%, which the company put down to a "strong programme of activity around Black Friday and Christmas".
Kitchenware retailer ProCook said on Wednesday that it outperformed the market in the third quarter, reporting a jump in sales and a "strong" peak trading period. In the 12 weeks to 5 January, total revenue rose 11.2% to £25.6m and like-for-like revenue grew 3.4%, outperforming the market by approximately 10%. Retail revenue was up 12.4%, with LFL growth of 0.9%, while ecommerce revenue ticked up 9.2%, reflecting LFL growth of 7.1% driven by increased traffic and conversion year on year.
Industrial thread maker Coats Group said on Tuesday that chief financial officer Jackie Callaway has mutually agreed with the board that she will step down from her role at the conclusion of the annual meeting on 21 May. Callaway, who has been with the company for four and a half years, will assist with an orderly transition to 30 June 2025. She will be succeeded by Hannah Nichols, who is expected to join the group as CFO designate on 24 April and will also become an executive director. On 21 May, Nichols will assume CFO responsibilities.
GSK announced on Tuesday that its investigational antibody-drug conjugate GSK'227 has been granted breakthrough therapy designation by the US Food and Drug Administration (FDA) for treating relapsed or refractory osteosarcoma in patients who had progressed after at least two prior lines of therapy. The FTSE 100 pharmaceuticals giant said the designation, aimed at expediting the development of treatments for serious conditions, reflected promising early data suggesting substantial improvement over current options.
Close Brothers Group announced on Tuesday that Adrian Sainsbury had officially stepped down as group chief executive and executive director, effective 6 January, to focus on his health following a period of medical leave. The London-listed firm said Sainsbury was recuperating well, and was expected to make a full recovery. Its board confirmed the appointment of Mike Morgan as its new group chief executive on a permanent basis, subject to regulatory approval.
Ricardo announced the completion of its acquisition of Australian infrastructure consultancy E3 Advisory on Tuesday, a specialist in transport, clean energy, water, and mining infrastructure projects. The London-listed firm said E3 provides strategic advice to both government and private sector clients throughout the lifecycle of major infrastructure initiatives. Under the terms of the acquisition, Ricardo took an 85% stake in E3 for AUD 101.4m (£51m), with plans to acquire the remaining 15% in three years.
UK and US-listed oil group Diversified Energy Company has announced the acquisition of several assets in America's Appalachian Basin, across Virginia, West Virginia and Alabama, which it says will complement existing operations and provide synergies to improve margins. The company is spending $45m on the assets, which currently produce around 12m cubic feet equivalent (natural gas) - equivalent to 2m barrels of oil equivalents - per day.
B&Q and Castorama owner Kingfisher said on Monday that it has appointed industry veteran and former Halfords boss Ian McLeod as a non-executive director with effect from 20 January. The retailer said McLeod is a "seasoned" retail executive with more than 40 years of experience across various different international markets, most recently as group chief executive at DFI Retail Group, overseeing operations across 13 countries in Asia with over 10,500 retail outlets.
Avon Technologies announced on Monday that its subsidiary, Team Wendy Ceradyne, has received an $18m delivery order from the US Defense Logistics Agency. The London-listed company said the order was part of the US Army's Next Generation Integrated Head Protection System (NG IHPS) helmet programme. It said the contract came under the NG IHPS IDIQ framework agreement initially awarded in September 2021.
TruFin announced a significant financial milestone in an update on Monday, forecasting its first full-year profit a year earlier than expected. The AIM-traded firm said that for the year ended 31 December, it anticipated adjusted profit before tax of over £0.5m, swinging from a loss of £6.6m in 2023. Adjusted EBITDA was expected to exceed £7m, marking a year-on-year improvement of more than £10m from a £3.5m loss in the prior year.
Economic news
Rail, Maritime and Transport Workers (RMT) union general secretary Mick Lynch announced his retirement at the age of 63 on Thursday. Lynch, who has been a prominent figure in the modern trade union movement, said he would step down after the election process for his successor in May. He was elected as RMT's general secretary in 2021, following decades of service within the union.
Firms expect to put up prices in 2025, a survey showed on Thursday, as they juggle a raft of fresh costs, including increased National Insurance contributions. According to the latest Decision Maker Panel survey from the Bank of England, business price growth expectations for the year ahead rose slightly to 4% , up from November's 3.8%. Wage growth expectations also nudged higher, up 0.1 percentage point to 3.9%.
Optimism in the UK financial services sector has collapsed, a survey showed on Thursday, despite growing business volumes. The latest quarterly financial services survey from the Confederation of British Industry showed optimism fell at the fastest pace since September 2022. The weighted balance was -28, compared to -13 in September. This was despite growth in business volumes picking up in the three months to December, with a balance of 32 compared to 6 in September. Respondents also expected a similar pace of growth in the current quarter.
Shop prices continued to fall in December, industry research showed on Thursday, driven by heavy discounting. According to the latest BRC-NielsenIQ shop price index, deflation was 1.0%, compared to deflation of 0.6% in the previous month. Within that, non-food deflation was -2.4%, its most since April 2021. Food inflation was 1.8%, unchanged on November but still the lowest rate since December 2021.
UK consumers splashed out a record £14.6bn on food and drink in the run-up to Christmas, industry research showed on Wednesday. According to consumer research firm NIQ, overall total till sales growth was 3.2% in the four weeks to 28 December. That was down on November's growth of 3.7%. However, after a slow start to the month food sales rallied, boosted by discounts and increased promotional activity.
Growth across the UK's construction sector slowed as 2024 came to an end, a closely-watched survey showed on Tuesday, dragged lower by house building. The latest S&P Global UK construction purchasing managers' index came in at 53.3 in December, above the neutral 50.0 benchmark. A reading above 50.0 indicates growth, while one below it suggests contraction.
Household grocery spending hit a record high over Christmas, industry data showed on Tuesday, as shoppers snapped up festive food and drink. According to retail consultancy Kantar, average household spending on take-home groceries was £460. Sales sparked 2.1% in the four weeks to 29 December. There was strong demand for more expensive goods over the festive period, with sales of branded goods growing 4.2% and premium own-label by 14.6%.
UK house prices fell in December 2024 for the first time since March but ended the year in the black, according to data released by Halifax on Tuesday. House prices declined 0.2% on the month following five consecutive monthly increases, and 1.2% growth in November. On an annual basis, prices were up 3.3%, down from 4.7% growth in November and leaving the average price of a home at £297,166.
The UK retail sector experienced a lacklustre 2024, according to fresh data released on Tuesday, with total sales growth slowing down to 0.7% compared to the prior year. According to the BRC-KPMG retail sales monitor, sales grew 3.2% in December thanks to the Black Friday period running into the month, but the three-month period ending December - the 'Golden Quarter' - saw a modest increase of just 0.4%. Food prices rose 3.3% year on year, outpacing overall retail growth, while non-food sales declined by 1.5%.
Business activity in the UK barely grew in December, while employment in the service sector fell at its fastest pace in nearly four years, according to a survey released on Monday. The S&P Global services PMI business activity index nudged up to 51.1 from 50.8 in November. It was above the 50.0 mark that separates contraction from expansion for the fourteenth month in a row. However, it signalled only a marginal expansion of business activity. Meanwhile, the PMI composite output index came in at 50.4 in December, down from 50.5 in November and the lowest reading since October 2023.
International events
Hiring in the US picked up modestly at the end of 2024, but nevertheless came in well ahead of forecasts. According to the Department of Labor, in seasonally adjusted terms non-farm payrolls jumped by 256,000 in December. That compared to a consensus forecast for 165,000. Readings for the previous two months combined were marked down by a combined 8,000.
Eurozone retail sales grew by less than expected in November, official data showed on Thursday, as the bloc's economy continued to struggle. According to first estimates from Eurostat, the statistical office of the European Union, retail trade volume increased by 0.1%. Although an improvement on October's 0.3% decline, it was below the 0.4% expected by analysts, according to Reuters. In the wider bloc, retail trade volume rose 0.2%, compared to the 0.1% fall in October.
Germany reported a strong rise in exports during November and a better-than-expected increase in industrial production for the month, according to official data released on Thursday. Exports increased 2.1% month on month, analysts had been looking for a 2% rise. Trade to EU countries was down 1.7% offset by a 6.9% increase in goods shipped to countries outside the bloc. The foreign trade balance was a surplus of €19.7bn, up from €13.4bn in October.
Private sector employment in the US rose less than expected in December, according to data released on Wednesday by ADP. Employment increased by 122,000 from November, versus expectations for a 140,000 jump. Small businesses with fewer than 50 employees added 5,000 jobs, while medium businesses with between 50 and 499 employees added 9,000 jobs.
The number of people filing for first-time jobless claims continued to decline during the latest week. According to the Department of Labor, in seasonally adjusted terms the number of initial unemployment claims dropped by 10,000 over the week ending on 4 January to reach 201,000. Economists had forecast a reading of 218,000. The four-week moving average meanwhile, which aims to smooth out the fluctuations in the data from one week to the next, dropped by 10,250 to 213,000.
US president-elect Donald Trump is exploring the option of declaring a national economic emergency to justify implementing a broad new tariff programme, it emerged on Wednesday, according to a report from CNN. Citing sources familiar with the discussions, CNN said that if enacted, the measure would use the International Economic Emergency Powers Act (IEEPA) - a law granting presidents wide authority to regulate imports during emergencies - to sidestep traditional requirements for proving national security threats.
Analysts at Bank of America expect the US dollar to hit bottom during the first half of 2025 and afterwards weaken. The Greenback was expected to be supported over the next "several months", on the back of America´s ongoing economic outperformance. Investors were also expected to bid the dollar higher as they waited for clarity from the new US administration about a number of expected policy changes.
Consumer confidence in the eurozone was confirmed at an eight-month low in December, while economic sentiment dropped to its lowest level in more than four years. According to revised estimates from the European Commission, the consumer confidence index weakened by 1.0 point to -14.5 last month, in line with flash figures released two weeks ago and the lowest level since April 2024.
Wholesale price inflation in the eurozone jumped more than expected in November to its highest level in more than two years, as energy costs surged. According to figures from Eurostat on Wednesday, the producer price index for the single-currency region increased at a monthly rate of 1.6% following a 0.4% increase in October. This was ahead of the 1.5% rate expected by economists and the highest monthly growth seen since September 2022.
German retail sales and factory orders both fell unexpectedly in November, according to official data released on Wednesday. Retail sales were down 0.6% in real terms compared with October, federal statistics office Destatis said. Analysts had forecast a 0.5% increase. Factory orders slumped 5.4% month on month on a seasonally and calendar adjusted basis against expectations of no change.
Email this article to a friend
or share it with one of these popular networks:
You are here: news
10 Lower Thames St,
London EC3R 6EN