A woman passes the Bank of England in the financial district in the City of London - NEIL HALL/EPA-EFE/Shutterstock
The FTSE 250 company that has spent hundreds of millions on rights to some of the world's biggest hits plans to raise a further £150m to continue its buying spree.
Hipgnosis Songs Fund founder Merck Mercuriadis is urging investors to stump up the funds for another wave of deals for the rights to songs that throw off royalty payments.
Mr Mercuriadi is a former Beyonce manager whose firm owns rights to songs by the likes of Ed Sheeran and Adele.
He added: "This raise gives our public markets investors, historic and new, the only chance for the next 12 months to get access to Hipgnosis' existing portfolio as well as a pipeline comprising some of the most important and successful songs of all time, at valuations that are highly attractive considering the continued explosive growth of streaming that will magnify future revenues considerably."
Hipgnosis has spent £1.2bn on more than 57,000 songs since listing on the London Stock Exchange three years ago.
However Hipgnosis investors failed to see the appeal of a continued shopping splurge and the fund's shares ended the session 1.6pc lower at 122 pence.
Markets in London spent the day fluctuating, following news that UK inflation surged above the Bank of England's 2pc target to 2.1pc. But the pound rose to $1.4110 on the prospect that higher interest rates could arrive sooner than expected.
By the session's end traders had shrugged off a spike in prices for clothing, fuel as well as restaurant meals and the blue-chips ended on a new pandemic high, up 12.47 points to 7,184.95 – the highest closing price since February 2020 for a second consecutive day.
The FTSE 250 spent most of the day in the red or trading flat, before closing 14.06 points down at 22,617.66.
Engineer Renishaw lead the benchmark index for gains, up 3.16pc. The rally however was too late to save the stock from being relegated after Friday's close and replaced by broadcaster ITV.
At the other end of the FTSE 100, gloomy news about the extension of coronavirus restrictions weighed on the index.
Following reports that the UK Treasury will extend an existing ban on commercial evictions until March 2022, British Land dropped 0.6pc to 502.2p and Land Securities was down 0.4pc to 702.2p.
FTSE 250 Hammerson, which owns the Bullring in Birmingham, fell further, down 4pc to 39.68p.
Sainsbury's however rose following a Whitehall leak that suggests long-term home working is here to stay. The supermarket's shares were up 1.18pc by the end of trading, at 256.80p.
Despite suffering high coronavirus-related costs, the supermarket has seen a surge in food sales through the pandemic with online grocery profits increasing more than fourfold through the year to March.
Shares of AIM-listed professional services provider Christie Group also surged 9pc on Wednesday, after the company said it expected a strong second half and it had been involved in the sale of 164 hospitality businesses by the end of May.
04:24 PM
Wrapping up
That is all from us today - here are some of our top stories:
Thanks for following along. Have a great evening and do join again tomorrow.
03:53 PM
GB News hit by more than 350 complaints on launch night
GB News attracted more than 350 viewer complaints on its launch night over comments made about coronavirus on the channel’s flagship show Tonight Live with Dan Wootton, reports Ben Woods.
He writes:
Media regulator Ofcom received 373 complaints on the launch day of GB News directed at the chat show presented by the former executive editor of The Sun newspaper.
Ofcom said the complaints were focused on “comments made during the programme about coronavirus”, but did not provide further detail about specific concerns.
Mr Wootton launched his show on Sunday with a monologue that took aim at the Government’s lockdown rules ahead of Boris Johnson’s decision to delay lifting Covid restrictions.
FTSE 100 stocks have added 0.3pc, trimming earlier gains following news of soaring UK inflation. The FTSE 250 is also recovering from earlier losses although the index is still trading flat.
03:05 PM
Hipgnosis aims to raise £150m to buy more music
Merck Mercuriadis, founder of Hipgnosis Songs Fund - Julian Andrews /Telegraph
A FTSE 250 company that has spent hundreds of millions on rights to some of the world's biggest hits plans to raise a further £150m to continue its buying spree, reports Ben Woods.
Hipgnosis Songs Fund founder Merck Mercuriadis is urging investors to stump up the funds for another wave of deals for the rights to songs that throw off royalty payments.
Mr Mercuriadi is a former Beyonce manager whose firm owns rights to songs by the likes of Ed Sheeran and Adele.
He added: "This raise gives our public markets investors, historic and new, the only chance for the next 12 months to get access to Hipgnosis' existing portfolio as well as a pipeline comprising some of the most important and successful songs of all time, at valuations that are highly attractive considering the continued explosive growth of streaming that will magnify future revenues considerably."
Hipgnosis has spent £1.2bn on more than 57,000 songs since listing on the London Stock Exchange three years ago.
02:42 PM
Former Barclays boss Antony Jenkins raises $187m for fintech software company 10x
A London-based fintech software company, which is headed by former Barclays boss Antony Jenkins, has raised $187m (£133m) as it seeks to expand into the US, reports Simon Foy.
10x Future Technologies said its latest financing round was co-led by funds managed by BlackRock and CPP and will help support the company’s plans to scale its platform to one billion customers within the next decade.
The group, which develops technology that allows banks to retrieve customer data more quickly, said the funding will also support its expansion plans into new markets, including North America, and allow it to invest further in its cloud platform.
Mr Jenkins, chair and chief executive of 10x, said: “This funding round represents another significant milestone in our journey to become the operating system of choice for leading banks across the globe.
“Our platform has been purposefully designed to enable the world’s largest banks to transform their customer experience and economics. Our vision is to reliably support more than one billion of their customers within the next 10 years.”
Mr Jenkins founded the start-up in 2016, a year after he was sacked as chief executive of Barclays due to concerns he was failing to overhaul the banking giant quickly enough.
02:28 PM
Lex Greensill's refusal to speak before MPs branded as 'disrespectful to parliament'
A video grab from footage broadcast by the UK Parliament's Parliamentary Recording Unit (PRU) shows businessman Lex Greensill speaking during his appearance before the Treasury Committee - AFP
The boss of the failed finance firm Greensill Capital has been criticised for refusing to speak before MPs later this month, with MP Darren Jones labelling Lex Greensill's failure to engage with an inquiry into the challenges facing Liberty Steel as "disrespectful to parliament".
In a stinging letter addressed to Mr Greensill, Mr Jones says the financier has failed to respond his letter and chosen not to speak with the MP on the phone.
"My Committee has discussed your reluctance to give evidence and insists that you are required to attend," writes Mr Jones, chair of the Business, Environment and Industrial Strategy Select (BEIS) Committee.
Lex Greensill has refused multiple requests to speak to MPs about the future of the British steel industry, according to the BEIS committee.
It's unacceptable the Lex Greensill is refusing to appear before Parliament. I've formally written to Mr Greensill to request he appears at our next @CommonsBEIS session on Liberty Steel on June 29th. https://t.co/dQ8OMQIHQq
Greensill's supply-chain finance firm Greensill Capital was a key backer of Liberty Steel owner GFG.
The lender reportedly used government schemes to loan millions of taxpayer-backed funds to steel magnate and GFG CEO Sanjeev Gupta.
"Given the Treasury’s exposure to government backed loans, via Greensill Capital to GFG Alliance companies, it’s important that the Committee hears from Lex Greensill. There are broad questions about audit, corporate governance and due diligence as well as Greensill Capital’s engagement with the British Business Bank," said Mr Jones.
“It is therefore suspicious that Lex Greensill is refusing to engage constructively with our inquiry or even outline legitimate reasons for failing to do so," the Bristol MP added.
"It is ultimately disrespectful to Parliament and, by extension, to the British people to refuse to appear."
Although the letter says it is aware that Mr Greensill is concerned about taking part in the inquiry due to the ongoing Serious Fraud Office investigation into GFG Alliance, Mr Jones said on-going investigations had not prevented GFG owner Sanjeev Gupta, the British Business Bank or any other involved parties from committing to give evidence to the Committee.
"If Lex Greensill maintains confidence in his actions and that of his company, then he should want to appear before the Committee to put his position on the public record," wrote Mr Jones. "I urge him to think again.”
Mr Greensill did not immediately reply to a request for comment. He appeared before MPs during a Treasury Select Committee in May.
02:14 PM
Issas close in on Asda
Mohsin, left, and Zuber Issa - Jon Super / Alamy Stock Photo
The billionaire Issa brothers have moved a step closer to sealing the deal for their £6.8bn Asda takeover.
The Competition and Markets Authority (CMA) today accepted their offer to sell 27 petrol stations to push their takeover deal across the line.
PA has the details:
The new Asda owners must now select a buyer, or buyers, to purchase the forecourt sites, which must be approved by the CMA.
The supermarket chain said the CMA update will enable its management team to start working with private equity backer TDR and the Issa brothers over their new plans for the business.
In a joint statement, TDR and the Issa brothers said: "We can now push ahead with our exciting plans for Asda and look forward to working with the Asda management team to invest in the business to drive growth, including continuing to accelerate Asda's online offer, sourcing more food from UK farmers, and bringing enhanced convenience to customers."
02:03 PM
Markets hold breath for Fed decision
Federal Reserve Chair Jerome Powell - Joshua Roberts /Reuters
World markets waited with bated breath for the Federal Reserve to give its verdict on the risk posed by rising inflation this afternoon, as US stocks trod water after the opening bell.
The S&P 500 opened flat while the Dow dipped 0.13pc and the Nasdaq rose 0.27pc higher. The FTSE 100 inched 0.17pc up after trading flat following UK inflation hitting 2.1pc in May as restrictions loosened. France's Cac was up almost 0.2pc but Germany's Dax was flat for the day.
Analysts said investors were awaiting the Fed's decision later today on whether rising prices meant it should taper bond purchases that have been pumping liquidity into the stock market since the early days of the pandemic.
"The Federal Reserve takes centre stage later, with investors on high alert for any changes in outlook," said Richard Hunter, head of markets at Interactive Investor.
"The accompanying comments from the Fed meeting will be closely scrutinised, with further evidence of a strengthening recovery and inflationary pressures guiding the next steps."
US central bankers have made clear they will not alter monetary policy until they see lasting signs that employment and inflation have recovered from the unprecedented economic damage caused by the Covid-19 pandemic.
Investors don't expect any changes to interest rates or stimulus programmes, but they "will be eager to go through policymakers' economic projections and hear if the Fed acknowledges if it's getting closer to altering policy due to rising inflation pressures," said analyst Patrick O'Hare at Briefing.com.
01:40 PM
'All the velvet sofas in the world don't justify Made.com price tag'
Made.com founder Philippe Chainieux - The Telegraph
Made.com's shares have fallen around 8pc lower from their 200p debut this afternoon, and City commentator Ben Marlow believes it is evidence the company is overpriced.
He writes:
All the velvet armchairs in the world surely can’t justify a £775m price tag. To be fair to boss Philippe Chainieux, he’s having a crack at it, what with his “vision of becoming the leading home destination in Europe for digital natives”.
But for all the marketing nonsense, and the hype about a pandemic boom that lifted annual sales from £211m to £315m, this is still an operation that doesn’t make a profit, with pre-tax losses of £14.2m last year.
Addison Lee becomes largest London taxi company, with ComCab deal
Taxi operator Addison Lee has become London's largest taxi firm after acquiring black taxi service ComCab, the company said today.
Addison Lee will have more than 7,000 vehicles on the road after acquiring the London operations of ComCab, City Fleet Networks and Flightlink International for an undisclosed sum, it added.
“As London emerges from the pandemic, there’s going to be a significant increase in demand for safe, quality transport from both corporates and consumers,” Addison Lee chief executive Liam Griffin said.
"There will be a few raised eyebrows at this deal given that Addison Lee and black taxis were once seen as competitors,” he added.
“However, the industry we operate in has changed and this alliance combines the two most professional companies in our sectors who share the same focus on quality of service, the customers we serve and the importance of the drivers.”
12:50 PM
Commercial landlord shares fall
Shares in Britain's biggest commercial landlords, British Land and Land Securities, have dipped following reports that the UK Treasury will extend an existing ban on commercial evictions until March 2022.
British Land shares were down 1.31pc on the FTSE 100 to 498.8p.
Land Securities, which counts office space as its biggest segment, was also down 1pc to 696p.
Both shares were down over 3pc this week.
12:25 PM
TGI Fridays reveals 12pc surge in post-pandemic sales ahead of float
Customers sit at outside tables at a re-opened TGI Fridays restaurant in Glasgow - ANDY BUCHANAN /AFP
American themed dining chain TGI Fridays revealed it was trading well ahead of pre-pandemic levels since restaurants and pubs were able to start serving customers indoors, as it readies for a float later this year, reports Hannah Boland.
The company behind the brand, Electra Private Equity, said TGI Fridays' like-for-like sales for the 4 weeks since the middle of May were 12.5pc ahead of the same period in 2019.
TGI Fridays recently launched its first 63rd+1st sister brand, which is a cocktail-led bar and restaurant, in Cobham, and said this was trading "in line with expectations".
The update on the company's performance comes ahead of a market float later this year, expected to value TGI Fridays at around £275m.
Electra revealed more details on the plans in the update today, saying it was setting up a new parent company called Hostmore which would be spun out of Electra later this year and floated on the London Stock Exchange by the third quarter.
Electra said after the business was spun out, Hostmore would be looking to add "rapidly growing, early-stage businesses to its portfolio of complementary brands, exploring opportunities to extend its offering in experience-led hospitality and leisure concepts".
12:20 PM
Pound rises
The pound is continuing its ascent as a jump in UK inflation to 2.1pc last month fuels the prospect of higher interest rates sooner than expected.
Against the dollar, the pound is up 0.24pc at $1.4118 and it is also up 0.35pc against the euro.
12:14 PM
What to expect from the US Fed meeting later today
Diane Swonk, Chief Economist and Managing Director at Grant Thornton, outlines what she thinks will happen today:
Chair Powell will stick to Fed’s commitment for more improvement in employment before shift in policy. He will also note there is evidence a good portion of inflation flare is temporary. The uncertainty will be about the portion that tied to shelter and wages and could linger.
A rapid rise in rates would also wreak havoc on financial markets and could have ripple effects around the world. Emerging markets are particularly vulnerable to a more rapid surge in rates. The Fed is more sensitive to its role as central bank to the world under Powell.
Despite suffering high coronavirus-related costs, the supermarket has seen a surge in food sales through the pandemic with online grocery profits increasing more than fourfold through the year to March.
11:47 AM
Christie Group shares surge as it expects strong second half
Shares of professional services provider Christie Group surged 9pc today, after the company said it expected a strong second half and it had been involved in the sale of 164 hospitality businesses by the end of May.
The AIM-listed company - which focuses on a sectors including hospitality, leisure and medical - also said its appraisal business Pinders had seen a rise in the number of valuations commissioned by "asset-rich businesses raising additional loans to tide them over for short term cash flow requirements".
Chief executive David Rugg told shareholders: "We expect further progress once our remaining hospitality markets fully re-open for business both here and in mainland Europe. Based upon current momentum we look forward to a strong second half."
He added: “As businesses reopen, we expect lenders to seek our assistance in reviewing their exposure to businesses impacted by the pandemic."
11:34 AM
Whitehall leak suggests long-home working is here to stay
Ministers are mulling proposals to keep home working for the long-term after a Whitehall paper recommended a “hybrid” approach even after the final stage of reopening, reports Tom Rees.
He writes:
Officials are said to be considering three options for workplaces after stage four of Boris Johnson's roadmap out of lockdown; encouraging a return to offices, staying neutral or recommending home working.
The paper advised ministers to opt for a more cautious “hybrid” approach, particularly for workers with no need to be in the office.
Rail chiefs warn of steep cuts to services amid fears travel will take years to recover
A member of station staff stands on an empty platform at London Waterloo railway station in London, U.K., on Thursday, Nov. 5, 2020 - Simon Dawson /Bloomberg
Rail chiefs have warned steep cuts to services will be required to balance the books with passenger demand set to take years to recover to pre-pandemic levels, reports Oliver Gill.
He writes:
Bosses formally fired the starting gun on a slew of cuts across the industry to reduce the £800m-a-month subsidy from taxpayers.
Although passenger numbers are recovering, it is thought that the pandemic will lead to a permanent change in working patterns - in turn hitting what has been labelled the “cash cow” of commuting revenues.
Almost a year ago, insiders warned that it would be up to five years before passenger demand recovered.
Representatives from rail operators, Network Rail and unions have formed a group called the “Rail Industry Recovery Group” to cut £2bn of costs across the network.
US stock futures hesitated today, ahead of a policy update from the Federal Reserve which is expected at 7pm UK time.
Futures contracts tied to the Dow Jones Industrial Average were only 36 points lower while futures tied to the S&P 500 and the tech-heavy Nasdaq-100 inched upwards 0.1pc, suggesting a tepid start after the opening bell.
In premarket trading, large tech shares like Tesla and Nvidia were slightly down, while shares of companies that will benefit from the economic reopening, such as Royal Caribbean and Boeing, rose.
10:29 AM
Ford and Samsung consider Britain for electric battery gigafactories
Some of the world’s biggest carmakers and technology companies are mulling plans to build battery “gigafactories” in the UK amid government overtures to the sector, reports Matthew Field.
He writes:
Six firms including carmakers Ford and Nissan and South Korean electronics giants LG and Samsung are in discussions with the government over locations for battery factories in Britain, the Financial Times reported.
Also among the interested firms are start-ups BritishVolt, which publicly revealed its interest last year, and Slovakia’s InoBat.
Ford is currently considering potential locations for a battery supplier for its Transit Custom, an all-electric van that is due to go into production in Turkey in 2023.
Shares in sofa retailer ScS have surged 12.4pc today, after the group hiked its outlook for this financial year and next and restarted its dividend.
The Sunderland headquartered company said it expects results for the full year to July 31 to be ahead of expectations. Analysts had forecast £314m in sales and pre-tax profits of £11.8m.
ScS said it had been boosted by a 95.3pc increase in orders over the past year, compared with the previous 12 months.
"The Board is encouraged by the Group's strong trading performance since reopening," the company said today.
"Whilst some uncertainty persists relating to the end to all Covid restrictions, the Board believes the Group is well positioned to maximise opportunities for growth. The Group has a robust balance sheet and the re-introduction of dividends today reflects the Board's confidence in the business going forward."
It also announced it had repaid the £3m furlough payments it had previously claimed from the government.
10:08 AM
One in every four payments last year were contactless, says report
A Visa card being used to make a contactless payment. - Barclaycard /PA
The number of contactless payments made in the UK last year jumped 12pc to 9.6bn according to new data, as the pandemic accelerates a shift away from cash.
In the last four years, contactless payments have jumped from being just 7pc of total payments to more than one quarter (27pc), with 83pc of Britons now using touch free options, according to UK Finance’s 2021 Payment Markets Report.
At the same time the number of payments using notes and coins fell 35pc as cash was only used for one in six payments. A decade ago, cash accounted for more than half.
There are now 135m contactless cards in circulation, the report added.
09:54 AM
CMA orders funeral operators to make prices clear for customers
Britain's competition watchdog has said funeral directors and crematorium operators must make prices clear for customers or risk court action.
PA has the details:
From September 16 all funeral directors must display a standardised price list at their premises and on their website, including the headline price of a funeral, the price of individual items making up the service, and the price of certain additional products and services, the Competition and Markets Authority (CMA) said.
Additionally, from June 17, funeral directors are not allowed to make payments to incentivise hospitals, palliative care services, hospices, care homes or similar institutions to refer customers to a particular funeral director or solicit for business through coroner and police contracts.
Crematorium operators will also be required to provide specified price information to funeral directors and customers.
The CMA said it expects all funeral directors and crematorium operators to take action to ensure they have implemented the changes by the legal deadlines.
An in-depth market investigation by the CMA into the funerals sector last year identified a number of concerns, including that prices for similar services differed considerably between funeral directors, and the way that information was provided made it hard for families to compare prices and choose the right combination of services for their loved ones.
09:42 AM
FTSE yo-yos after inflation figures
After a strong start to the day, the FTSE 100 is wavering between the red and the green following this morning's inflation data. The index is currently trading flat while the FTSE 250 is down 0.3pc.
09:27 AM
UK house prices dip in April
Surging house prices in the UK cooled slightly in April following double-digit growth the previous month, reports Rachel Mortimer.
The latest official figures from the Office for National Statistics showed house prices in the UK decreased by 1.9pc between March and April this year. When adjusted for seasonal factors prices decreased by 2.2pc.
Prices still increased by 8.9pc over the year to April, hitting an average of £251,000, £20,000 higher than in the same month in 2020.
Interesting to see a big fall in house prices in Scotland in April, after their stamp duty holiday ended. A glimpse of things to come in England in October… pic.twitter.com/GtbPE2SGhe
The ONS warned fewer transactions were available than expected in April, meaning there could be “increased volatility” in its figures.
House prices accelerated in the first months of this year ahead of the original stamp duty deadline in March, leading to the fastest rate of growth in almost 14 years.
But in April this trend slowed slightly after the extended tax break dampened the race between frenzied buyers to complete purchases.
Interesting to see a big fall in house prices in Scotland in April, after their stamp duty holiday ended. A glimpse of things to come in England in October… pic.twitter.com/GtbPE2SGhe
Willem Sels, Chief Investment Officer at HSBC Private Banking and Wealth Management, comments:
UK inflation rose further in May, as expected, after a big jump in April. This is not a local phenomenon, of course, around the world, we are seeing increased inflation due to petrol price base effects (the comparison to low oil prices last year), some bottle necks in the supply chain, and a pickup in retail and hospitality demand.
The rise of CPI in the UK is much less pronounced than in the US, where CPI stands at 5pc, in part driven by the weak US dollar and stimulus payments to households.
Although UK CPI may now further overshoot the Bank of England’s 2pc target, we still think it will come down again to around 2pc in 2022. There is significant spare capacity in labour markets, with more than two million UK workers remaining on furlough, meaning it is unlikely that a wage spiral develops, and hence CPI pressures should be temporary. This means there is no urgency for the Bank of England to hike interest rates any time soon.
08:57 AM
Pound rises following inflation data
Concerns that policymakers may start signalling a shift in policy thinking if prices shoot up further are also pushing the pound up against both the euro and the dollar.
Against a broadly steady dollar, the sterling rose 0.2pc to $1.4112, inching closer to this year's peak of $1.4250 reached at the start of June. Against the euro, the pound rose 0.25pc to 85.94p.
08:49 AM
The FTSE falls flat as inflation concerns preoccupy markets
The FTSE 100 has fallen from earlier gains and is now trading flat at around 7,176 points, as investors become preoccupied with new data showing British inflation unexpectedly jumped above the BoE's 2pc target in May - rising to 2.1pc.
The FTSE 250 has also dropped and is currently trading down 0.17pc.
08:45 AM
Markets tread water ahead of Federal Reserve conclusion
Federal Reserve Board building is pictured in Washington - Leah Millis /REUTERS
World stock markets are treading water near record highs today, as investors brace for any hawkish signals from the conclusion of the Federal Reserve's two-day policy meeting.
Later on, Federal Reserve officials are expected to at least flag the pending start of talks about when and how to exit from the crisis-era policies the US central bank put in place at the start of the coronavirus crisis last year.
Because US inflation is rising faster than expected and the economy is forecast to grow at its fastest rate in decades this year, some policymakers are increasingly questioning whether the Fed should continue to keep its benchmark short-term interest rate near zero and leave unchanged its massive bond-buying program.
08:35 AM
Home-working risks loss of 6m UK white collar jobs
One in five UK jobs could be outsourced to other countries following the pandemic a new report warns, threatening the loss of well-paid white collar employment.
According to the Tony Blair Institute for Global Change, the jobs of 5.9m “anywhere” workers - ranging from graphic designers to software programmers - are at risk of being lost, particularly from London and southeast England.
“If left unaddressed, the outsourcing and offshoring of these roles would have political, economic and social consequences similar to the loss of manufacturing jobs in the 1970s, but on an accelerated time frame,” the report said.
08:28 AM
UK travel policy 'a shambles', says Ryanair boss
Ryanair's chief executive Michael O'Leary - Nick Ansell /PA
Ryanair boss Michael O'Leary has branded UK travel policy "a shambles" and lashed out at Boris Johnson's "gross mismanagement of Covid", following the extension of the current coronavirus lockdown rules.
O'Leary's comments reflect the frustrations reverberating within the travel industry, as UK ambassadors warned yesterday that Britain is unlikely to reopen overseas travel to the major European holiday destinations until the beginning of August.
Only 11 countries are currently on the Government’s green list where quarantine-free travel is allowed. British Airways, Virgin Atlantic and easyJet are all cancelling flights until after the new July 19 reopening date as demand plummets.
O'Leary today called for a travel policy that permits vaccinated people to travel between the UK and the EU without needing to quarantine or show negative PCR tests.
"This will at least allow the UK tourism industry to plan for what is left of the summer season and get hundreds of thousands of people back to work," he said.
The outspoken chief executive added: "It is time for Boris Johnson to end his gross mismanagement of Covid and the recovery from Covid, and take advantage of the UK’s successful vaccine programme to allow the restoration of free movement of vaccinated UK citizens and their families to and from the EU, where Covid case rates are lower than the UK and vaccination rates are rising rapidly”.
08:12 AM
Made.com drops on stock market debut
Made.com opened 7pc lower on its stock market debt today, as the online furniture retailer became the latest company to encounter a turbulent first day of trading in London.
However share pared back some of those losses and just before 9am, they were down 3.1pc.
Made.com priced its IPO at 200p per share, giving the company a market capitalisation of around £775m. It had been reported that Made.com was seeking a valuation of up to £1bn.
Made.com raised £194m through its London listing while its shareholders sold a further £223m pounds of shares in the deal.
07:19 AM
The experts react: UK inflation surges to 2.1pc
The figures showed clothing prices now 2.6pc up on a year earlier, making its biggest contribution to the annual inflation rate since 2018 - NEIL HALL/EPA-EFE/Shutterstock
Hannah Audino, economist at PwC comments:
According to the latest figures from the ONS, the annual CPI inflation rate for May has reached the Bank of England’s target at 2.1pc. It is important to interpret the latest data in the context of the low prices we saw 12 months ago during the pandemic. For example, petrol prices in May 2020 reached a four year low, with transport costs being one of the main factors behind the 12-month rise in inflation in May 2021. This means that so-called “base effects” are driving up the rate of inflation, and will likely do so for a few more months.
We expect the Bank of England to see through the recent rise in inflation and continue to prioritise supporting the recovery with low interest rates, over reducing inflation.
Inflation is unlikely to follow a smooth path this year, with many different factors feeding irregularly into the monthly data. In general, inflation is likely to follow an upwards trend as the economy reopens, allowing consumers to unleash some of their estimated £180bn of excess savings. We might see businesses raising prices in order to recoup lost revenues and also in response to rising input costs such as freight and raw materials.
Ian Stewart, chief economist at Deloitte, adds:
The unleashing of pent-up demand into economies with reduced capacity is driving inflation across the world. The Bank of England, like the US Federal Reserve and the European Central Bank, believe that supply bottlenecks and rising commodity prices will not last and inflation will ease next year.
The big question is whether price rises drive wages higher, creating a wage-price spiral. With more than three million people on furlough and unemployment well above pre-pandemic levels that looks unlikely - but not wholly impossible.
07:07 AM
FTSE inches higher
The FTSE 100 has inched 0.3pc higher on opening to 7,196 points, while the FTSE 250 pushed up 0.4pc to 22,733.
07:05 AM
Inflation leaps to 2.1pc as economy reopens
British households faced surging prices last month as the cost of living hit its highest level since before the pandemic, reports Russell Lynch.
He writes:
A jump in fuel costs and rising clothes prices as the economy reopened pushed the Consumer Prices Index (CPI) benchmark to 2.1pc, higher than the 1.8pc expected and the highest since July 2019.
The inflation surge, up sharply from 1.5pc in April, was also partly fuelled by rising restaurant and pub prices as diners and drinkers returned, the Office for National Statistics said.
Good morning. The FTSE 100 is set to open up having closed at a post-pandemic high. Inflation surged to 2.1pc in May while all eyes will be on the US Fed interest rate announcement later.
Markets were mixed in Asian trade following a tepid lead from Wall Street, where another forecast-busting inflation reading spooked investors just as the Federal Reserve kicked off its latest policy meeting.
After all three main Wall Street indexes fell, Asia struggled. Tokyo, Hong Kong, Shanghai, Singapore, Wellington and Taipei all fell but Sydney, Seoul, Manila and Jakarta rose.
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If you're taking a required minimum distribution from an IRA, 401(k) or other tax-deferred account and don't need the money to cover living expenses, where should you stash that unneeded cash? Investors now need to start taking RMDs at age 73 or, if they were born after 1960, at age 75. Depending on the balances of […] The post Can I Use My RMDs to Transfer Money Into My Roth IRA? appeared first on SmartReads by SmartAsset.
High net worth individuals (HNWIs) are those who have at least $1 million in easily convertible assets like cash, stocks, and bonds. They often manage significant wealth across diverse portfolios. As per Empower’s financial dashboard, retirement accounts such as 401(k) plans and IRAs comprise 55% of total wealth for many HNWIs. This is a stark contrast to the median household. Pew Research Center reports that these accounts typically represent only 27% of the net worth of households where at lea
My wife and I are elderly. I have an individual retirement account (IRA) worth about $100,000, and we have a trust set up through our children to protect our assets. If one or both of us have to go into … Continue reading → The post Ask an Advisor: Can a Nursing Home ‘Take Our IRA?' My Wife and I Are Elderly. We Have a $100K IRA and a Trust to Protect Our Assets. appeared first on SmartAsset Blog.
Uncertainty is the word of the day, in reference to the near-term economic future. Sentiment will hinge on the inflation numbers due out next week. March’s figure rose to 3.5%, and April’s job numbers showed a marked slowing in the labor market; that combination has stoked fears of stagflation. But – corporate earnings from Q1 are beating expectations, and the stock market has taken a turn for the better with the S&P 500 closing just below 5,200 yesterday. Economic strategists are still optimist
A young patient died due to cardiac arrest after receiving Pfizer Inc’s (NYSE:PFE) experimental gene therapy in a mid-stage trial for Duchenne muscular dystrophy (DMD), the company told in a letter to Parent Project Muscular Dystrophy. The boy was enrolled in Phase 2 DAYLIGHT study studying the treatment in boys at least two years old and under four years old. The patient received the investigational gene therapy, fordadistrogene movaparvovec (PF-06939926), in early 2023. Citing Pfizer, Reuters
