Latest news with #FTSE100
Business Recorder
2 hours ago
- Business
- Business Recorder
London stocks fall as BoE keeps rates on hold
LONDON: London stocks dropped to an over two-week low on Thursday as the Bank of England left borrowing costs unchanged, while the raging conflict in the Middle East kept risk-taking in check. The benchmark FTSE 100 closed down 0.6%, with a stronger pound adding additional pressure on the index. Trading was thin as US markets are shut for a public holiday. Israel and Iran's aerial attacks continued as US President Donald Trump kept the world guessing about whether the US would join Israel in air strikes on Tehran. Markets were hopeful of talks between the US and Iran, and between the European Union and Iran on Friday, leading to a potential de-escalation in tensions. The conflict has impacted oil prices, which were higher on the day, boosting the energy sector by 1.3%. Gains in heavyweight Shell and BP limited declines on the commodity-heavy FTSE 100. Personal goods and travel and leisure stocks fell 4% and 2.3%, respectively, that led broader declines. Industrial metal miners lost 2.5%, as copper prices hit a near one-week low. The Bank of England held interest rates at 4.25% as expected on Thursday but said it was focused on risks from a weaker labour market and higher energy prices as conflict in the Middle East escalates. 'The big thing for UK equities ... is to see whether earnings can start picking up or not. It's something we haven't seen a lot lately and that is what really is missing,' Lilian Chovin, head of asset allocation at the British private bank Coutts. 'The slight weakness in the labour market is something you're starting to see. It's an emerging trend of loosening employment markets across the world, which should pave the way for rate cuts, maybe in the back end of this year,' Chovin added. This follows a meeting of the US Federal Reserve, where Chair Jerome Powell said he expected 'meaningful' inflation ahead, due to Trump's planned tariffs, but policymakers still kept two rate cuts in 2025 on the table, offering little clarity on the overall stance. Persimmon and United Utilities were among the worst performers of the FTSE 100, down 3.4% and 2.3%, respectively, as they traded without entitlement to their latest dividend payouts.
The Independent
12 hours ago
- Business
- The Independent
Stocks dip as Bank of England leaves interest rates unchanged
London's FTSE 100 closed lower on Thursday amid ongoing Middle East concerns, after the Bank of England left interest rates unchanged at 4.25%. The FTSE 100 index closed down 51.67 points, 0.6%, at 8,791.80. The FTSE 250 ended 216.27 points lower, 1.0%, at 21,073.99, and the AIM All-Share fell 5.17 points, 0.7%, at 758.19. The London Stock Exchange celebrated the 30th anniversary of AIM on Thursday, calling it a 'cornerstone' of the UK's capital markets. Since its launch in 1995, AIM has become one of the world's most successful growth markets, helping more than 4,000 companies raise over £136 billion. The decision to hold rates by the Bank's Monetary Policy Committee was widely expected, although the vote split was slightly more dovish than forecast. The MPC voted 6-3 for the status quo, with Swati Dhingra, Bank deputy governor Dave Ramsden and Alan Taylor preferring a 25 basis point rate cut to 4.00%. The Bank said there remain 'two-sided' risks to inflation meaning 'a gradual and careful approach to the further withdrawal of monetary policy restraint remains appropriate'. The Bank noted that higher food prices could raise 'inflation expectations, impacting wage and price-setting behaviours'. Bank of England governor Andrew Bailey said interest rates remain on a 'gradual downward path'. Ebury analyst Matthew Ryan said: 'The BoE still appears to be in no hurry to speed up the pace of policy loosening. Importantly for markets, the phrase that cuts will be both 'gradual and careful' was retained in the statement – there was some speculation that this could be either tweaked or jettisoned.' ING noted past experience has shown that the vote split contains few useful signals. 'December's meeting saw a similar 6-3 vote, yet heralded little change in the bank's overall stance,' ING said. It added that rate hawks will have an eye on oil prices. A 'serious spike in oil prices is the most obvious hawkish risk for the UK rate outlook', ING said. Nonetheless, ING expects the Bank to cut interest rates in August. The oil price rose again amid concerns the situation in the Middle East could worsen. Brent oil traded higher at 78.59 US dollars a barrel late on Thursday from 75.06 dollars on Wednesday as the Israel-Iran conflict continued. The oil price rise boosted oil majors and FTSE 100 heavyweights BP and Shell, which rose 1.4% and 1.1% respectively, but weighed on British Airways owner IAG, down 3.2% and low-cost airline easyJet, down 3.0%, on concerns of rising fuel costs and travel disruption. Israel's defence minister Israel Katz said Iran's Supreme Leader Ayatollah Ali Khamenei cannot 'continue to exist', days after reports that Washington vetoed Israeli plans to assassinate him, AFP reported. 'Khamenei openly declares that he wants Israel destroyed – he personally gives the order to fire on hospitals,' Mr Katz told journalists. 'Such a man can no longer be allowed to exist.' US President Donald Trump wrote on Tuesday that the US knew Mr Khamenei's location but would not kill him 'for now'. Uncertainty surrounds Mr Trump's next move amid reports that the US is ready to intervene in the conflict. Bloomberg on Thursday reported senior US officials are preparing for the possibility of a strike on Iran in coming days. In European equities on Thursday, the Cac 40 in Paris closed down 1.1%, as did the Dax 40 in Frankfurt. Financial markets in the US were closed to mark Juneteenth National Independence Day. The pound was quoted down at 1.3429 dollars at the time of the London equities close on Thursday, compared with 1.3472 dollars on Wednesday. On the FTSE 100, fears the Middle East conflict will lead to higher inflation and slower economic growth weighed on mining stocks. Anglo American fell 3.3%, Antofagasta declined 3.4% and Rio Tinto dipped 2.5%. Whitbread fell 1.6% after reporting total group sales fell by 3.8% to £710.9 million in the 13 weeks that ended May 29, the first quarter of its financial year, from £739.2 million a year earlier, or by 1% on a like-for-like basis. Total UK sales were down 5.4% to £648.2 million from £685.2 million. Accommodation sales fell 1.8% to £485.0 million from £494.1 million, while food and beverage revenue sales dropped 15% to £163.2 million from £191.0 million. UK revenue per available room fell 2.4% to £62 in the quarter from £63.54 a year ago. On the FTSE 250, Hays plunged 10% after saying it expects annual profit to be below market consensus, as the staffing firm grapples with challenging market conditions. AJ Bell's Russ Mould said the share price slump implies the jobs market is going from bad to worse. 'Companies are clearly worried about the economic outlook and they're reluctant to take on full-time staff, potentially not replacing anyone lost to natural turnover. At the same time, individuals are worried that if they move job they'll be in the 'last in, first out' firing line if companies look for new cost savings,' he added. Hays said permanent recruitment markets have been particularly damaged, amid 'low levels of client and candidate confidence'. Simon Lechipre, analyst at Jefferies, said the weaker than expected performance is particularly negative for Page Group where permanent recruitment makes up 72% of group fees. Shares in PageGroup fell 8.8% while Robert Walters dropped 4.8%. Hays expects annual pre-exceptional operating profit of £45 million, below company-compiled consensus of £56.4 million. The yield on the US 10-year Treasury was quoted at 4.39%, stretched from 4.36%. The yield on the US 30-year Treasury was quoted at 4.89%, widened from 4.86%. Gold was quoted lower at 3,368.94 dollars an ounce against 3,387.84 dollars. The biggest risers on the FTSE 100 were Melrose Industries, up 13.70p at 499.9p, BP, up 5.5p at 392.0p, Bunzl, up 28.0p at 2,250.0p, Shell, up 28.5p at 2,695.5p, and Vodafone, up 0.6p at 75.9p. The biggest fallers were Persimmon, down 50.0p at 1,317.0p, Antofagasta, down 60.0p at 1,699.0p, Anglo American, down 68.5p at 2,021.5p, IAG, down 10.2p at 309.3p, and Airtel Africa, down 5.4p, at 171.2p.
Yahoo
15 hours ago
- Business
- Yahoo
2 defensive shares for investors to consider for passive income in 2025
Generating passive income takes more work than many investors might think. I think the key is to pick high-quality dividend shares that can deliver regular income and weather any economic storms in the long run. That's why I've picked out two reliable dividend payers in the FTSE 100 that I think are worth considering for those investors trying to build a steady second income. Unilever (LSE: ULVR) is known as a reliable defensive dividend payer in the Footsie. The company has a wide portfolio with household brands including Dove and Magnum. This gives it global reach and steady demand even when the economy weakens. With a share price of £46.34 as I write on 18 June, the stock is trading on a forward price-to-earnings (P/E) ratio of 18.3. That's a touch higher than the Footsie average but I'd expect to pay a slight premium for defensive stocks. The company's 3.2% dividend yield makes it one worth considering. On top of that, I liked the company's full-year results announced in February, showing underlying sales growth of 1.9% and a 12.6% increase in profit. It's not all upside of course. Sluggish demand in emerging markets like Indonesia and China poses a risk to future growth. Of course, competition is fierce and margins remain tight while the company tries to keep up with ever-shifting consumer tastes. Still, for those seeking income with a defensive tilt, Unilever's consistency and dividend history are hard to ignore. Diageo (LSE: DGE) is another name that I think is worth investors considering for income. The company has a large portfolio of alcoholic beverages including Johnnie Walker and Guinness. The stock currently trades at around £19 at the time of writing, with a forward P/E ratio of around 15 and a dividend yield of 4.1%. Diageo's premium spirits segment makes up a significant chunk of its portfolio, which adds resilience in the event of further economic weakness. What about the risks? Recent weakness in Latin America and sluggish performance in the US has spooked some investors and contributed to a 25% decline in the company's share price over the past 12 months. Investors are also concerned by falling alcohol demand as the market for non-alcoholic options continues to grow. While I wouldn't expect enormous future revenue growth, I think Diageo's sheer size and ability to pivot towards trends in the beverage sector could deliver in the long run. The company has a diversified portfolio of top-tier brands, which underpins its ability to weather the economic cycle and deliver a steady long-term passive income stream. There are numerous quality dividend shares for investors to choose from. I believe in long-term investing and looking for opportunities to generate a steady second income. Defensive sectors like consumer staples can help to achieve this by being less susceptible to cyclical changes in consumer demand compared to companies in sectors like construction or leisure. However, that often means they can come at a higher cost with this perceived 'safety premium' reflected in the price. I think both Unilever and Diageo are large, well-established companies that hold strong market positions. I think that makes them worth considering as part of a diversified portfolio for investors seeking to build a long-term passive income. The post 2 defensive shares for investors to consider for passive income in 2025 appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool The Motley Fool UK has recommended Diageo Plc and Unilever. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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Business Standard
17 hours ago
- Business
- Business Standard
Bank of England holds interest rates amid inflation and global risks
The FTSE 100 barely reacted, trading 0.2 per cent lower on the day, roughly where it had been prior to the BoE decision, while two-year gilt yields fell to session lows at 3.886 per cent Reuters London The Bank of England held interest rates at 4.25 per cent as expected on Thursday but said it was focused on risks from a weaker labour market and higher energy prices as conflict in the Middle East escalates. Noting the elevated global uncertainty and persistent inflation, the Monetary Policy Committee voted 6-3 to keep rates on hold. The pound turned negative against a broadly stronger dollar on Thursday after the Bank of England (BoE) held rates steady as expected and cited elevated global uncertainty and persistent inflation as concerns. Sterling was 0.1 per cent lower at $1.3417 and also against the euro, which traded at 85.53 pence.. The FTSE 100 barely reacted, trading 0.2 per cent lower on the day, roughly where it had been prior to the BoE decision, while two-year gilt yields fell to session lows at 3.886 per cent before edging higher to 3.897 per cent. "As widely expected, the Bank of England's rate-setting Monetary Policy Committee kept UK interest rates unchanged on Thursday, in a decision that was not unanimous. Although the MPC has telegraphed that it would prefer to cut rates at every other meeting, three of the Committee's more dovish members voted for a further easing of 25 bps. This split decision signals that the central bank is preparing to loosen monetary conditions again, possibly as soon as August." MARK DOWDING, CHIEF INVESTMENT OFFICER, BLUEBAY, LONDON: "The Bank of England would like lower interest rates. They would like to see interest rates come down, they want to believe inflation is under control. That's what some of their models are telling them should be happening." "However, instinctively, I've been of the opinion that UK inflation is too high and it would be a mistake to cut rates." "And from that point of view, I do think that if UK yields go down, on the idea that the Bank of England is more dovish, then I'd actually like to fade that and take the other side of the argument and look for yields to move higher. "When I look at inflation, the lived experience of inflation certainly suggests inflation is running at sort of 4 per cent today. The prices of everything seems to be going up perpetuity and inflation expectations are probably running around that sort of level. And so against that backdrop, I don't see the Bank of England having much room to cut rates." NICK REES, HEAD OF MACRO RESEARCH, MONEX EUROPE, LONDON: "It looks like they're sticking with the one-cut-a-quarter pace. Some of the commentary has backed away from Bailey's original suggestion that would be the pace of cuts, but while it might not be the official answer, it still seems like it's the plan. The one big takeaway is the 6-3 vote split. That's dovish relative to consensus, and markets will take a signal from it, but I think it has very limited actual read-through to what the BoE will do moving forwards. But it's nice to have a relatively on-expectations central bank after the two we've had this morning." (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Mint
17 hours ago
- Business
- Mint
Big Pay Packages Spark Growing Dissent Among UK Shareholders
Shareholder dissent over executive pay at British companies is rising just as firms seek to bolster pay packages to remain internationally competitive. Three times as many companies faced opposition from more than 20% of shareholders so far this year compared with the same period in 2024, data from proxy-solicitation firm Georgeson Inc. shows. With investors having already voted on remuneration reports from more than half of FTSE 350 companies, 16 faced dissent exceeding 20% between Jan. 1 and May 31 this year, up from five in 2024, the data shows. 'Last year, FTSE 350 companies were more conservative in recommending higher levels of pay, which led to high shareholder support and low levels of opposition,' said Daniel Veazey, Georgeson's corporate governance manager. Pay packages of UK-based chief executive officers have grown faster this year than those of US rivals, with companies racing to close the gap to attract and retain top talent. The median FTSE 100 CEO package increased 7% to £4.79 million in 2024, according to Deloitte. 'UK Plcs are feeling freer to propose new remuneration policies designed to remain competitive with US and EU peers,' said Sonia Gilbert, Clifford Chance's incentives partner. London Stock Exchange Group Plc came up against a shareholder revolt at its annual meeting on May 1, with 31% voting against the company's remuneration report, which saw CEO David Schwimmer take home £7.9 million in its latest financial year. Consumer giant Unilever Plc also faced close to 30% opposition against new boss Fernando Fernandez's base salary, which was just modestly short of his predecessor's. UK companies are challenging the status quo a little more this year, encouraged by widespread shareholder support in 2024 and relaxed Investment Association guidelines on pay, Georgeson's Veazey said. Of 55 FTSE 100 companies that had published their fiscal 2024 reports, 24 were seeking shareholder approval for new remuneration policies, compared with 16 at the same time last year, research by Deloitte in April shows. Of those proposing changes, more than 40% submitted their policies ahead of the usual three-year cycle. British American Tobacco Plc CEO Tadeu Luiz Marroco could earn as much as £18.2 million this year under a performance-related policy, a jump from the £6 million he earned in 2024. Compass Group Plc's Dominic Blakemore also stands to benefit from a proposed maximum payout of £15.3 million in 2025, up from the £9.5 million he earned in total last year. Both maximum figures are based on a 50% increase in the stock awards from the date of grant to vesting. These proposals highlight 'the need to attract top talent in a competitive global market and address pay compression challenges,' said Mitul Shah, a partner at Deloitte's executive remuneration and rewards practice. The UK government's decision to maintain the removal of the cap on banker bonuses has gone some way to bridging the transatlantic gap. Bank of America Corp. is the latest to join a slew of rivals in scrapping the crisis-era limit. Some of the world's biggest banks are pushing UK regulators to accelerate plans to ease rules around deferred bonuses so they can apply the lighter regime to payouts for 2025. This follows long-time calls by executives including London Stock Exchange CEO Julia Hoggett that restrictions on pay were hindering companies' efforts to attract game-changing candidates and undermining the attractiveness of the City of London. Performance, especially in sectors with key competitors in the US and a tight market for talent, will ultimately steer how amenable shareholders are to boosting compensation. 'It comes down to the right shareholder engagement,' Clifford Chance's Gilbert said.
