Title: FTSE 100 Struggles as Miners Slide and YouGov Considers US Listing
Introduction:
The FTSE 100 experienced a dip of 16 points, closing at 7,508, primarily due to concerns about China’s economic growth. Mining stocks played a significant role in dragging down the index as news emerged about the Chinese real estate sector. In other news, YouGov, a UK-based data analytics and survey company, is considering a listing in the US, potentially dealing a blow to the London Stock Exchange.
Miners Weigh Down the FTSE 100:
The FTSE 100 remained in negative territory as mining stocks faced a decline. Susannah Streeter, an analyst at Hargreaves Lansdown, attributed the downturn to worries surrounding the Chinese property sector. Country Garden, a major property company in China, not only warned of substantial losses but also defaulted on interest payments and suspended trading on some bonds. These developments added to existing concerns about the health of the Chinese economy. Rio Tinto, Anglo American, Fresnillo, and Glencore all experienced losses in the main index.
YouGov Considers US Listing:
YouGov, a prominent data analytics and survey company, is contemplating a change in its listing by considering a US listing. Stephan Shakespeare, the company’s co-founder, highlighted the US market as more conducive to supporting firms like YouGov. The company already has a significant presence in the US, working with major tech groups, consumer brands, and providing detailed political coverage. Shakespeare, who owns around 8% of the company, believes a US listing could benefit its operations. Shares in YouGov rose slightly on the news.
FTSE Follows Asian Markets Lower:
The FTSE 100 opened on a negative note, mirroring the declines witnessed in Asian and US markets. Investors are also bracing for inflation figures expected later in the week. The London Lead Index was down 18.24 points at 7,505.92, while the FTSE 250 dropped 22.13 points to 18,777.57. Asian markets faced housing concerns, while stronger-than-expected wholesale price figures in the US added to the uncertainty. Inflation data anticipated for Wednesday is expected to show a decrease in the annual rate but could still remain above the Bank of England’s forecast.
Shaftesbury Secures £200m Loan with Aviva:
Shaftesbury Capital, a FTSE 250 company, has entered into a £200 million loan agreement with Aviva Investors. The loan, spanning ten years, is backed by assets within Carnaby’s estate. It complements existing secured term loans from Aviva Investors, which add up to £250 million. The proceeds obtained will be used to partially repay an unsecured loan of £576 million that Shaftesbury withdrew in April to finance the payment of covered bonds.
Plus500 Reports Lower Profits:
Fintech group Plus500 released its half-year results, revealing a decline in revenue and EBITDA compared to the previous year. Revenue stood at $368.5 million, down from $511.4 million, with EBITDA falling to $174.1 million from $305.3 million. The company launched a $60 million buyback program to reward shareholders and expressed confidence in meeting market expectations for the fiscal year.
Conclusion:
The FTSE 100 struggled as mining stocks faced a downturn triggered by concerns about the Chinese property sector. YouGov’s potential US listing could shake up the London Stock Exchange, and Shaftesbury’s loan agreement with Aviva Investors provides financial backing for its operations. Plus500 reported lower profits but announced a buyback program to enhance shareholder rewards. With inflation figures expected later in the week, investors are closely monitoring market movements.
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- FTSE 100 down, down 16 points to 7,508
- Miners fall amid China growth concerns
- YouGov Considers Listing in the US – Financial Times
8.55am: Miners drag the FTSE 100 lower
The FTSE 100 remains in the red with mining stocks holding shares on news coming out of China.
Hargreaves Lansdown’s Susanah Streeter noted: “Worries about deeper cracks appearing in the Chinese property sector kept the FTSE 100 on a losing streak in early trading, as concerns over the health of the world’s second-largest economy continue”.
“Trouble is piling up at property giant Country Garden, which has not only warned of multi-billion dollar losses, but also defaulted on key interest on its debt and suspended trading on 11 of its onshore bonds.”
Concern over the health of the Chinese economy has been a theme for the past two weeks and jitters surrounding the real estate sector in the world’s second-largest economy add to the narrative.
Losing in the main index are Rio Tinto Ltd, closely followed by Anglo American, Fresnillo and Glencore PLC (LSE: GLEN).
Entain continues to lose ground after last week’s worse-than-expected charge related to an investigation into its former business in Turkey, while oil price weakness weighs on BP PLC (LSE: BP.) and Shell PLC (LSE:SHEL, NYSE:SHEL).
Brent crude fell 0.8% to $86.10/barrel, again reflecting concerns about growth in China.
8.35am: YouGov considers listing in the US – Financial Times
YouGov PLC (TARGET: YOU)The UK-listed data analytics and survey company is mulling a US listing in what would be another blow to the London Stock Exchange. reports the Financial Times.
Stephan Shakespeare told the FT that the group was considering changing its listing following a recent acquisition that has strengthened its operations.
“I think the markets are better for supporting companies like ours there,” he told the FT.
The US is the largest market for YouGov, where it works with US tech groups and consumer brands, as well as providing detailed political coverage.
e said the company could move its primary listing to the US or establish a secondary listing.
Shakespeare, with his family, owns around 8% of the company, which floated in London in 2005 and is valued at more than £1bn.
Shares in the company rose 0.2% to 946 pence.
8.15am: FTSE follows Asia lower
The FTSE 100 is down in early trading after declines in Asian and US markets, and investors are already expecting inflation figures later this week.
At 8:15am, the London Lead Index was down 18.24 points, or 0.2%, at 7,505.92, while the FTSE 250 was down 22.13, or 0.1%, at 18,777.57. .
“The leadership of other major markets left the UK with nowhere to go, although losses were limited at the open of trades,” said Interactive Investor’s Richard Hunter.
Asian markets fell on housing concerns, while in the US on Friday, stronger-than-expected wholesale price numbers muddied the waters.
Inflation data on Wednesday is expected to show that the annual inflation rate fell to 6.7% in July, slightly below the bank of england‘s 6.8% forecast, and a significant drop from 7.9% in June.
The core figure excluding food and energy is expected to fall slightly to 6.8% in July from 6.9% in June.
On a quiet morning for company news, shares of Plus500 Ltd (LSE:PLUS) rose 1.3% after its half-year results.
Liberum analysts said: “Amid calmer markets, Plus500 performed strongly in 1H23.”
The broker highlighted “the robustness of the business model, the resulting high levels of cash generation and management’s commitment to maximizing shareholder return.”
“The market continues to underestimate (ignore?) and underestimate this,” Liberum acknowledges.
YouGov PLC (TARGET: YOU) was slightly firmer, up 0.7%, on reports that it is considering a US listing while B&M European Value Retail SA (LSE: BME)rose 1.7% as Deutsche Bank raised its price target and reiterated a ‘buy’ rating.
The German investment bank raised its price target to 680 pence from 610 pence.
7.50am: Shaftesbury reach £200m loan deal with Aviva
Shaftesbury Capital PLC has secured a £200 million loan with Aviva Investors.
The FTSE 250 company said the deal covered a 10-year period and was backed by a portfolio of assets within Carnaby’s estate.
It said the newly established facility would complement its existing secured term loans from Aviva Investors, valued at £130m and £120m and due in 2030 and 2035 respectively.
The proceeds will be used to partly repay the £576m unsecured loan that was withdrawn in April to finance the payment of Shaftesbury’s covered bonds.
7:39 am: Plus 500 launches new buyback as profits fall
It’s a quiet morning for company news. But the Plus 500, which is listed on the FTSE 250, has released its half-year results through June 30.
The fintech group reported revenue of $368.5 million compared to $511.4 million a year earlier, while Ebitda of $174.1 million was below $305.3 million.
Ebidta margins fell from 60% to 47%.
The firm launched a $60.0 million repurchase program, comprising an interim repurchase program of $33.7 million and a special repurchase program of $26.3 million.
Shareholders were further rewarded with an interim dividend of $0.4125 per share and a special dividend of $0.3219.
The company expects revenue and Ebitda for the current fiscal year to be in line with current market expectations.
7.03am: Moderate start seen in London after dips in Asia
It looks like a weak start to the week in London after the falls in Asian markets due to concerns about defaults in the Chinese property sector.
Spread betting companies are calling the FTSE 100 around 14 points after closing down 94.44 points at 7,524.16 on Friday.
Michael Hewson of CMC Markets said: “Asian markets have fallen sharply this morning on a sell-off in Chinese markets amid concerns over defaults in their real estate sector, and broader economic weakness has raised fears of that this weakness could spread to other areas of the market. economy, after it was claimed that a Chinese trust company failed to make payments to some customers”.
Shares of Chinese property giant Country Garden fell about 16% after it defaulted on bond payments and warned of multi-billion-dollar losses, deepening concerns about the nation’s heavily indebted real estate sector.
In Asia, Tokyo’s Nikkei 225 Index was down 1.2%. In China, the Shanghai Composite was down 0.9%, while Hong Kong’s Hang Seng Index was down 2.4%.
Let’s go back to London, and it’s a quiet start to the week with results from CentralNic, Plus500 and Stelrad.
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