FTSE 100 edges down despite hopes of end to Russia-Ukraine war
The FTSE 100 index closed down 5.04 points, 0.1%, at 9,095.73. The FTSE 250 ended 20.45 points higher, 0.1%, at 21,958.55 while the AIM All-Share finished down 1.05 points, 0.1%, at 762.46.
For the week, the FTSE 100 rose 0.3% and the FTSE 250 advanced 1.2%.
In Europe, the Cac 40 in Paris rose 0.4%, while the Dax 40 in Frankfurt eased back 0.1%.
In New York, the Dow Jones Industrial Average was up 0.3%, the S&P 500 was 0.6% higher, and the Nasdaq Composite advanced 0.8%.
Bloomberg said Washington and Moscow are aiming to reach a deal to halt the war in Ukraine that would lock in Russia's occupation of territory seized during its military invasion.
According to Bloomberg sources, US and Russian officials are working toward an agreement on territories for a planned summit meeting between Presidents Donald Trump and Vladimir Putin as early as next week.
The US is working to get buy-in from Ukraine and its European allies on the deal, which is far from certain, the report added.
Brent oil was quoted at 66.63 dollars a barrel in London on Friday, up from 66.48 dollars late on Thursday.
Elsewhere, President Donald Trump named the leader of his White House economic panel to fill a recently vacated seat on the Federal Reserve board, as he seeks to boost his sway over the independent central bank.
'It is my great honour to announce that I have chosen Dr Stephen Miran, current chairman of the Council of Economic Advisers, to serve in the just vacated seat on the Federal Reserve Board until January 31 2026,' he announced on his website, Truth Social.
'In the meantime, we will continue to search for a permanent replacement,' Mr Trump added.
Dr Miran will finish the term of Adriana Kugler, an appointee of former president Joe Biden who announced her resignation last week.
The pound rose to 1.3450 dollars late on Friday afternoon in London, compared to 1.3412 at the equities close on Thursday. The euro traded at 1.1666 dollars.
The yield on the US 10-year Treasury was at 4.29%, widened from 4.23%. The yield on the US 30-year Treasury was 4.86%, stretched from 4.80%.
Back in London, gambling operators were in the red after the Guardian reported that a rise in gambling levies is thought to be 'near-guaranteed', as part of a package of tax rises in the autumn budget.
Ladbrokes and Coral owner Entain fell 5.8%, Paddy Power owner Flutter Entertainment dropped 8.1% and William Hill owner Evoke slid 7.2%. Casino and bingo operator Rank was 4.8% lower.
On Thursday, Chancellor Rachel Reeves said: 'We've already launched a review into gambling taxes. We're taking evidence on that at the moment, and again, we'll set out our policies in the normal way, in our budget later this year.'
Further weighing on Flutter Entertainment was a mixed reaction to half-year results, despite the firm raising annual guidance.
After the US market close, Flutter said Fan Duel, favourable sporting results and iGaming growth helped push sales and earnings higher in the second quarter, improving prospects for the rest of the year.
But Peel Hunt said Flutter's US strength is somewhat diluted by international weakness as it downgraded the stock to 'hold' from 'add'.
Noting shares have recovered well from April lows, Peel Hunt said: 'There may be more upside, particularly if management can demonstrate that it can reinvigorate the aggregate performance of the international division. However, for now, we see no reason to push our valuation further.'
US gold futures hit a record high after Trump's administration imposed tariffs on imports of one-kilo and 100-ounce bars.
On the FTSE 100, GSK rose 0.9% after stating said it will receive an upfront payment of 370 million dollars from CureVac, following a patent settlement involving BioNTech and Pfizer over messenger ribonucleic acid vaccine technology.
The deal will see the London-based pharmaceuticals firm collect a 1% royalty on US sales of Pfizer and BioNTech's influenza, Covid-19, and related combination mRNA vaccines from the start of 2025.
Of the upfront settlement, 320 million dollars will be paid in cash, with the remainder reflecting changes to GSK's existing licence agreement with CureVac.
WPP remained in free fall, down a further 6.2%, leaving it down 56% in 2025 so far.
The advertising firm has been dogged by falling sales amid threats from artificial intelligence.
On Thursday, it said pre-tax profit declined by 71% in the six months that ended June 30, sinking to £98 million from £338 million.
WPP cut its interim dividend per share to 7.5p, half the previous year's 15p payout.
The biggest risers on the FTSE 100 were Glencore, up 7.8p at 288.2p, Antofagasta, up 50p at 2,024p, Coca-Cola Europacific Partners, up 160p at 7,030p, Mondi, up 21.5p at 1,079p and JD Sports Fashion, up 1.5p at 87.7p.
The biggest fallers on the FTSE 100 were WPP, down 24.3p at 367.5p, Entain, down 58p at 938p, Intercontinental Hotels Group, down 358p at 8,824p, Rightmove, down 30.4p at 788p, and Sage Group, down 37p at 1,161.5p.
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Reuters
11 minutes ago
- Reuters
Gold slips as investors focus on US-Russia talks on Ukraine
Aug 11 (Reuters) - Gold prices slipped on Monday as market participants focussed on U.S.-Russia talks on the war in Ukraine, and July inflation data that could offer more insight into the Federal Reserve's interest rate outlook. Spot gold was down 0.6% at $3,378.49 per ounce, as of 0521 GMT, after hitting its highest since July 23 on Friday. U.S. gold futures for December delivery dropped 1.4% to $3,441.20. "Cooling geopolitical tensions surrounding the war in Ukraine saw gold fall further, following Friday's announcement that President Donald Trump will meet with Vladimir Putin on the U.S. soil," City Index senior analyst Matt Simpson said. Trump said on Friday he will meet Russian President Putin on August 15 in Alaska to negotiate an end to the war in Ukraine. Focus is also on U.S. consumer price data due on Tuesday, with analysts expecting the impact of tariffs to help nudge the core up 0.3% to an annual pace of 3.0% and away from the Fed's target of 2%. "A hot print could further strengthen the dollar and cap gains in gold, though I suspect support will remain in place overall as investors seek to scoop up discounts," Simpson said. Recent softer-than-expected U.S. jobs report boosted bets for a Fed rate cut in September. Markets imply around a 90% probability of a September easing, and at least one more cut by this year-end. Non-yielding gold thrives in a low-interest-rate environment. Also on the radar are Sino-U.S. trade discussions as Trump's August 12 deadline for a deal between Washington and Beijing loomed. Meanwhile, COMEX gold speculators increased net long position by 18,965 contracts to 161,811 in the week to August 5. Elsewhere, spot silver fell 0.5% to $38.13 per ounce, platinum slipped 1.1% to $1,317.90 and palladium gained 0.1% to $1,127.37.
Reuters
13 minutes ago
- Reuters
Shares edge higher in Asia, Nikkei futures near record top
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Telegraph
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Hiring plans hit record low over Reeves tax raid fears
Hiring plans by British companies have crashed to a record low amid fears over a fresh tax raid by Rachel Reeves at this autumn's Budget, a new survey shows. On Monday, data from the Chartered Institute of Personnel and Development (CIPD) showed just 57pc of private sector firms planned to hire staff over the next three months – the lowest level since the survey began in 2016 outside of the pandemic. The figures underscore the gloomy mood among employers ahead of the Chancellor's set piece Budget this autumn. Ms Reeves could be forced to raise taxes by as much as £50bn, delivering a fresh blow to an already fragile economy and putting fresh pressure on employers still reeling from the £25bn National Insurance raid in the 2024 Budget. According to the CIPD poll of 2,000 companies, the number of private sector employers planning to recruit staff in the next three months fell to just 57pc last month from 65pc in autumn 2024. This is the lowest outside the pandemic, when 34pc planned to hire. A separate CIPD measure, which subtracts how many companies plan to hire from the share who are cutting staff, also plumbed fresh lows in July, with only a marginal improvement to nine percentage points, up from eight in spring. James Cockett, senior labour market economist at the CIPD, said business confidence was 'faltering further under rising employment costs,' particularly in sectors that traditionally offer vital early career opportunities. He also raised concerns about the Government's forthcoming Employment Rights Bill, which he said could add further complexity and cost to the hiring process. 'If new employment laws increase the risk and complexity of recruiting and managing new staff,' Cockett noted, 'employers are less likely to take a chance on young workers with limited experience and more development needs.' Bleak mood among employers The bleak economic picture was compounded on Monday by separate figures from KPMG and REC, which showed a steep drop in retail and hospitality job vacancies during July, as employers hit pause on hiring amid mounting cost pressures. Recruiters cited weak confidence in the economic outlook and rising payroll costs as key reasons behind the slowdown, while temporary hiring also fell at its fastest rate in five months. Jon Holt, chief executive at KPMG, said 'Many firms will continue to pause major investment decisions until there is greater clarity in the autumn.' Employers are struggling to overcome last year's tax rise, a large inflation-busting jump in the minimum wage and wider global nervousness sparked by Donald Trump's erratic trade war. The data offers a stark reflection of the mood among employers, particularly in sectors like retail and hospitality, where businesses are also grappling with looming regulatory upheaval. Kate Shoesmith, deputy chief executive of the Recruitment & Employment Confederation, warned: 'Hiring in retail and hospitality is down. Employers in these sectors are pausing due to cost pressures and uncertainty around employment law.' Nearly four in 10 firms that hire under-21s say recent changes to National Insurance contributions (NICs) have significantly raised their employment costs – despite younger workers being formally exempt. It comes after the minimum wage for 18 to 20-year-olds rose by 16.3pc in April, a 12.7pc boost in real terms, making employing young people far more expensive than previously. Labour market caution comes after Ms Reeves confirmed in last year's autumn Budget that employers' NICs would rise from 13.8pc to 15pc starting April 2025. This increase is adding further strain on sectors already vulnerable to wage pressures and big seasonal swings. According to UK Hospitality, the drastic decrease in vacancies results from changes to NICs, particularly the lowering of the threshold in last year's Budget which resulted in £3.4bn in annual cost for hospitality businesses. Since that announcement, 84,000 jobs have been lost in the sector.' A Treasury spokesman said: '380,000 jobs have been created since the start of this parliament; real wages rose more in the first ten months of this government than over the first 10 years of the previous government, and business confidence is the highest in 10 years according to a recent Lloyds Bank survey. 'Since the election, we have struck three major trade deals with the EU, US and India, business rates are being reformed, and corporation tax is capped at 25pc. 'This is how we are delivering on our Plan for Change to kickstart economic growth and put more money into working people's pockets.'
