FTSE 100 Live Nov 29: Covid Omicron Market Reaction, Omicron Market Mass Sell, Brent Crude Oil Prices, Travel Shares, BT Buyout Speculation
Global markets showed signs of stabilizing today after Friday’s backlash to the discovery of the Covid omicron variant.
The FTSE 100 index, which fell 3.6% before the weekend, rallied as investors “bought lower” despite continued uncertainty over the impact of the variant.
Brent crude futures slipped 11% on Friday, but are trading 5% higher at $ 76.30 this morning.
The company is focusing on BT after reports that Indian company Reliance is considering an offer sending its shares 7% higher.
Twitter jumps on Jack Dorsey report to quit
Shares on Twitter surged after CNBC reported that founder Jack Dorsey must resign.
The U.S. financial news channel said Dorsey, who also runs payments firm Square, is expected to announce that he will step down from his leadership role shortly. Activist investor Elliott Management pushed for the change last year.
Twitter shares opened more than 10% more in New York City.
Elsewhere, Wall Street joined the global rebound after Friday’s omicron sale. The S&P 500 opened up 1.1%, the Dow Jones is up 0.8% and the Nasdaq is up 1.3%.
Omicron changes Bank of England calculations
Markets have changed their minds on Bank of England rate hikes following the emergency of the new Omicron strain on Covid-19.
Markets are now pricing a UK base rate of two in three chances that will remain unchanged in December, according to AJ Bell. 80% rather expect a rate hike in February.
Laith Khalaf, head of investment analysis at AJ Bell, said: âThe Omicron variant shattered expectations of a Christmas rate hike, with February now becoming the forerunner to stage the much anticipated UK monetary policy tightening. .
âThe markets had really taken the lead in predicting so confidently a rate hike in 2021, no doubt encouraged by hawkish rhetoric from the Governor of the Bank of England. But it was always going to be risky for the Bank of England. ‘Raise rates this year, with the risk of a resurgence of the pandemic heightened in the winter months, and data on employment beyond the leave scheme is only becoming available.’
Cinch owner won Â£ 323million for Marshall Motors
The owner of WeBuyAnyCar.com and Cinch, announced by TV’s Rylan Clark-Neal, left, paid dealer Marshall Motors Â£ 323million today. The digital used car market Constellation Automotive Group will add 164 franchises covering 27 brands if its transfer to AIM-listed Marshall Motor Holdings is successful.
The 400 pence per share offering is already supported by the Cambridge-based Marshall Group, which owns 64% of the concession business alongside its aerospace and defense businesses.
Marshall Motor shares jumped 43%, or 118p, to 392p.
The stock was trading below 150p a year ago, but has soared thanks to a series of earnings improvements triggered by the surge in used car values.
The deal fueled hopes for consolidation across the industry. Shares of Pendragon, Lookers and Vertu Motors all rose around 4% today.
Venture lender Amigo saw its stock plummet again today after the company warned investors risked being heavily diluted by the latest bailouts.
Amigo said he was working on new compensation plans for clients who had mis-sold his guarantor loans. The previous plan was rejected by both the regulator and the High Court on the grounds that the payments were too low.
The new recourse system will still only offer partial payment but will be more generous. Amigo will ask investors for more liquidity to fund the new plan and warned that this could result in “significant dilution” for shareholders, leaving them “to own a much smaller proportion of the group if they do not assert their rights.”
Stocks of the already struggling lender slumped 3p, or 28%, to 7.6p. The action was trading at 297p in December 2018.
FTSE rebound accelerates
Businesses caught in Friday’s slump are also rebounding. IAG, owner of British Airways, is up 3.3%. Shell and BP are both up about 3.9%, boosted by the rise in oil prices.
Travelodge revenue grows driven by UK stay trend
Growth in stays helped Travelodge achieve record third quarter sales, the budget hotel chain said.
The company, behind 593 hotels, said sales in the three months to September 30 reached Â£ 229.5million, up from Â£ 88.2million a year earlier, when travel restrictions had seriously damaged the leisure sector. The performance was better than the pre-Covid performance of Â£ 208.8million.
Revenue per room was Â£ 53.54, an improvement over the previous two years.
Reliance rejects BT’s offer report
Indian company Reliance Industries has denied an article in The Economic Times saying it was considering an offer for the company.
Reliance said: “We categorically deny any intention to bid for UK telecommunications group BT, formerly British Telecom, as stated in the article titled ‘Reliance Mulling Bid for UK’s Telco BT Group’ published in The Economic Times on November 29, 2021. The article is completely speculative and unfounded. We await further diligence and fact-checking before publishing such articles. “
BT shares are still higher, but not as high as they were earlier in the session. The telecommunications company is up 8.9p, or 5.8%, to 162.8p.
Wetherspoons signs 20-year deal with Budweiser to move away from Heineken
JD Wetherspoon has signed a new 20-year supply agreement with AB InBev’s Budweiser, marking the end of a four-decade deal between pubco and brewing giant Heineken.
The deal will see Budweiser become Wetherspoons’ largest supplier from December 15. Heineken will stop supplying draft beers to Wetherspoons, but is in talks on supplying bottled beers.
Wetherspoons shares rose 2.2%, or 20p, to 911.8p this morning.
Irn Bru AG maker Barr raises profit expectations as sales recover faster than expected
Irn Bru AG maker Barr raised profit expectations today with stronger-than-expected hospitality and on-the-go retail sales as Brits headed for fall .
The listed company, which also owns the Rubicon juice brand and pre-made drinks and blender offering Funkin cocktails, said it now expects annual revenue of Â£ 264million and pre-tax profit of 41 million pounds sterling for the fiscal year ended January 22, 2022. exceeding current market expectations of approximately Â£ 255million and Â£ 38million respectively.
The company said its supply chain and production had remained “resilient” in the face of well-documented disruptions and price increases, and bosses expect sales momentum to continue next year. .
AG Barr had seen its pre-tax profits drop 12% to Â£ 32.8million last year as the pandemic hit trade. About 10-14% of its pre-Covid sales came from the hospitality industry.
Shares jumped 4.7%, or 22p, to 490p, on the update.
AJ Bell rises on new application plans
City stockbroker AJ Bell shares rose after the company announced plans to launch a new app for new investors.
AJ Bell is launching a new commission-free investing app called Dodl. The app, slated for launch in the first half of 2022, will allow investors to purchase a range of stocks and funds via their phone, as well as âthematic investmentâ packages covering areas such as healthcare, robotics and ethical investing.
The app’s appearance – and the fact that it’s commission-free – suggests that it will compete with Freetrade, a UK startup investment app popular with millennials. Freetrade, founded in 2016, has recently reached Â£ 1 billion in assets under management. It benefited from a boom in amateur investment during lockdowns.