LIVEBUSINESS CLOSE: Metro Bank shares plummet; CMA to probe Amazon and Microsoft
By Live Commentary Updated: 18:21 BST, 5 October 2023
The FTSE 100 closed up 0.5 per cent. Among the companies with reports and trading updates today were Imperial Brands,
Grainger, Motorpoint and National Grid. Meanwhile, Metro Bank shares tanked 26 per cent on rumours of a balance sheet-bolstering fundraise.
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FTSE 100 closes up 0.5%
The FTSE 100 closed up 0.53 per cent today, climbing 39.1 points to 7,451.54, despite worries over bond markets rattling investors around the world.
Concerns that US bond yields were flashing a recession warning dominated headlines this morning and the S&P 500 was trading down 0.7 per cent at 6pm UK time.
Britain’s blue chip share index registered gains though, arresting a run of down days this week.
The biggest risers included Imperial Brands (3.9 per cent), Tesco (3.6 per cent), Hiscox (2.7 per cent) and BA-owner IAG (2.55 per cent).
Volution Group shares surge as ventilation firm posts strong results
Volution Group shares soared on Thursday as the company reported solid growth in full-year revenues, thanks to increased demand for its building ventilation products.
Shares in the manufacturer jumped 11.3 per cent to 374.6p by late Thursday afternoon, making it the highest riser on the FTSE 250 Index.
Rolls-Royce’s new British boss – Chris Brownridge named CEO
Luxury car firm Rolls-Royce will have a British boss for the first time in 14 years as long-standing chief executive Torsten Müller-Ötvos has announced he is to retire from the helm of the company at the end of next month.
He will be replaced by Chris Brownridge, the current chief executive of BMW UK, who will take over the reigns from 1 December.
Big energy suppliers quietly introduce fixed tariffs
Britain’s big energy suppliers including British Gas have quietly been introducing fixed tariffs for its customers following a fall in the Ofgem price cap.
Most households were moved from a fixed to a variable tariff during the energy crisis as wholesale prices soared.
Motorpoint job cuts help car dealer weather consumer weakness
Motorpoint narrowed losses in the second quarter following a series of cost-cutting exercises, including job losses.
The online motor dealer told investors on Thursday that underlying pre-tax losses fell to around £600,000 in the three months to 30 September, from £3.1million in the first quarter.
Ford lays off 400 workers as auto strike nears one-month mark
Ford has announced another round of autoworker layoffs as the crippling UAW strike stretches into its third week.
The car giant notified around 350 workers at the Livonia Transmission Plant and a further 50 at Sterling Axle Plant, both in Michigan, not to come back to work ‘until further notice’ on Wednesday.
National Grid expects US business to lift second half performance
National Grid expects annual earnings per share to be weighted towards the second half of the year, with Britain’s energy systems operator confident of meeting full-year expectations.
The group, which also runs an electricity and gas business in New York and Massachusetts, said it expects operating profit to be broadly evenly split across the year for its UK businesses, but more heavily weighted towards the second half for its US ones.
Grainger set for record year for build-to-rent completions
Housebuilder Grainger expects to complete a record number of new rental properties in 2023 amid soaring demand for homes-to-let in the UK.
Helen Gordon, the chief executive of Britain’s biggest listed landlord, said the group expects to finish building more than 1,600 new build-to-rent houses this year.
Oxford Instruments shares top FTSE 350 fallers
Volution Group shares top FTSE 350 Index
EV sales falling short of binding targets forced on car makers
September saw the second highest month of electric vehicle (EV) registrations on record yet they are still falling well short of binding targets forced on car makers by the Government from next year.
Some 45,323 new EVs entered UK roads last month, which saw battery cars take a 16.6 per cent stake of all registrations in September.
The trick to transform your cash Isa into a flexible tax-beater
What’s the best thing to look for in a cash Isa?
A good savings rate is the obvious answer but there’s also a lesser-known element you might be missing that could prove very useful in keeping as much as your savings tax-free as possible.
Amazon and Microsoft to be probed by competition watchdog over cloud services
Reports: Metro Bank bosses dragged before regulator
Metro Bank’s chair and chief exec have been called before Britain’s top regulators after reports of the bank’s financing concerns sparked a sell-off of its shares, the Financial Times reports.
National Grid performance ‘in line’ with trading expectations
National Grid has told shareholders it has performed “in line” with expectations for the past six months.
The electricity and gas distribution firm, however, added that it expects a greater contribution to its earnings per share in the new half-year.
Imperial Brands declares £1.1bn share buyback
Imperial Brands will buy back £1.1billion shares after bumper demand and growing sales of smoking alternatives kept the tobacco group on track to meet full-year guidance.
Could you get a heat pump fitted for FREE?
Homeowners interested in getting a heat pump fitted may be able to get one for free, or as little as £500 – avoiding the massive bills that have put many off replacing their gas boiler.
One of the major public objections to replacing boilers with greener heat pumps is the installation cost.
Metro Bank shares nosedive amid reports of £600m fundraise to bolster balance sheet
Metro Bank shares lost almost a third of their value on Thursday morning in response to reports that the challenger bank needs to raise £600million to bolster its balance sheet.
Sources told the Reuters news agency the bank, whose market cap was £87million when markets closed last night, is exploring options to raise cash in debt and equity financing, bringing in Wall Street giant Morgan Stanley to advise.
Responding to press speculation at midmorning, Metro Bank confirmed it is ‘evaluating the merits of a range of options, including a combination of equity issuance, debt issuance and/or refinancing and asset sales’.
‘There have long been concerns about Metro’s finances’
Head of investment at Interactive Investor Victoria Scholar:’Metro Bank is reportedly looking at ways to raise up to £600 million in debt and equity financing including more than £100 million from selling shares after a steep slide in its share price.
The stock is sharply extending losses today down around 25%, bringing its six-month loss to over 60% as investors flee the company. The UK challenger bank which was launched in 2010 is reported to have recently hired Morgan Stanley to help with advice and the potential capital raise.
Last month Metro failed to secure regulatory approval to lower certain capital requirements in its mortgage business.
‘There have long been concerns about Metro’s finances – back in 2019 queues formed at some of its branches, sparked by negative comments about its financial position on social media. It also admitted in the same year it faced a major error around how it classified its loan book, sending its shares crashing down by…
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