Blencowe Resources raises £1.9m to accelerate DFS and progress to Tier-1 offtake agreements. Watch the interview here.

Less Ads, More Data, More Tools Register for FREE

Pin to quick picksBAE Systems Share News (BA.)

Share Price Information for BAE Systems (BA.)

London Stock Exchange
Share Price is delayed by 15 minutes
Get Live Data
Share Price: 1,273.00
Bid: 1,273.00
Ask: 1,273.50
Change: 3.00 (0.24%)
Spread: 0.50 (0.039%)
Open: 1,271.00
High: 1,276.00
Low: 1,268.00
Prev. Close: 1,270.00
BA. Live PriceLast checked at -

Watchlists are a member only feature

Login to your account

Alerts are a premium feature

Login to your account

London close: Stocks tumble on Powell comments as GDP stagnates

Fri, 10th Nov 2023 15:45

(Sharecast News) - London markets declined on Friday as investors reacted to hawkish remarks by Federal Reserve chair Jerome Powell made overnight.

The release of data indicating stagnation in the UK economy during the third quarter further contributed to the negative sentiment.

At the close, the FTSE 100 was down 1.28% at 7,360.55 points, while the FTSE 250 declined 1.02%, finishing at 17,853.09.

In the foreign exchange market, sterling was last down 0.16% on the dollar, trading at $1.2203, while it decreased 0.16% against the euro to change hands at €1.1439.

"Following hawkish comments by Fed chair Jerome Powell in which he stated that the central bank remains focused on combating inflation and that he could not guarantee a halt to rate hikes, several Asian and European stock indices slid substantially ahead of the weekend," said IG senior market analyst Axel Rudolph.

"Despite Thursday's disappointing US 30-year treasury bond auction driving bond yields higher and US consumer sentiment falling for a fourth straight month, US indices remained in the green.

"The British economy stalled in the third quarter, the weakest performance in four quarters, which provoked a fall in the FTSE 250 and FTSE 100, with the British pound depreciating against its peers ahead of next week's retail sales, unemployment and inflation data releases."

Economy stagnates in third quarter, retail sales rise

In economic news, the Office for National Statistics (ONS) reported that the UK economy remained stagnant in the third quarter, defying consensus expectations for a 0.1% contraction.

According to figures released earlier, gross domestic product (GDP) showed no change over the three months leading up to September.

During the period, the services sector saw a 0.1% decline, while construction experienced a modest 0.1% growth, and production remained flat.

For September alone, there was a 0.2% increase in GDP, following a revised-down 0.1% growth in August from the original 0.2%, contrary to economists' predictions of no growth.

"The economy is estimated to have shown no growth in the third quarter - services dropped a little with falls in health, management consultancy and commercial property rentals," said Darren Morgan, ONS director of economic statistics.

"These were partially offset by growth in engineering, car sales and machinery leasing.

"In the month of September the economy grew slightly, with increases in film production, health and education ... partially offset by falls in retail and computer programming."

Elsewhere, UK retail sales saw an uptick in the latest industry data report published on Friday.

The BDO high street sales tracker revealed that total like-for-like sales increased by 4.69% in the week ended 5 November.

Within the data, online sales surged by 4.88%, while in-store sales showed a respectable growth of 3.19%.

The figures contrasted with last year's performance during the same week, which saw marginal growth of just 0.2%.

"Strong results for both in-store and non-store sales helped lift sales in a week that opened with Halloween on Tuesday and closed with the Bonfire Night weekend," BDO noted.

Diageo tumbles on Latin America warning, oil stocks rise

In equity markets, distilling giant Diageo dropped 13.77% after announcing an expected growth slowdown for the first half.

The company attributed the deceleration to a weaker performance in Latin America and the Caribbean (LAC), which accounts for 11% of group net sales values.

Diageo previously expressed optimism about first-half organic net sales growth, but the LAC region was now projected to experience a decline of more than 20% in organic net sales during the second half compared to the prior year.

"The consumer slowdown is prompting customers to switch to cheaper substitute drinks instead, weighing on Diageo's branded sales," said Victoria Scholar, head of investment at Interactive Investor.

"Trading down among consumers is a key risk to Diageo's strategy, which has been to focus on quality over quantity.

"The economic downturn is likely to mean fewer consumers are willing or able to pay more for expensive high margin premium spirits."

Elsewhere, Redrow slid 4.31% after the housebuilder warned that full-year sales and profits would likely fall at the lower end of guidance due to a subdued trading period in the autumn.

Various key performance metrics, including the value of reservations, average reservations per outlet, cancellations, selling prices, and the order book, showed a year-on-year deterioration since the start of the financial year on 3 July.

Sector peers Berkeley Group Holdings, Barratt Developments, and Taylor Wimpey also saw declines.

In the mining sector, Fresnillo, Anglo American, and Antofagasta reported losses of 4.6%, 3.33%, and 2.21%, respectively.

The falls resulted from substantial decreases in the prices of precious metals, including gold, silver, copper, and platinum.

Wizz Air Holdings saw a modest decline of 0.63%, following a price target reduction by RBC Capital Markets from 3,400p to 3,200p.

The bank, which rates the stock as 'outperform,' cited the adjustment in estimates and price targets after evaluating the first-half results.

"In 2023-2024, we forecast net income of €354m towards the lower end of Wizz Air's €350m to €400m guided range," RBC said.

"Our largest downgrades are in 2024-2025, reflecting guidance for flattish capacity.

"We remain outperform; expectations on engine headwinds have been rebased and even a partial margin recovery offers scope for more than 150% potential share price upside."

On the upside, a handful of companies showed resilience, with oil giants Shell and BP gaining 0.59% and 0.49%, respectively, as crude prices rebounded after recent heavy declines.

Brent crude futures were last up 1.89% to reach $81.53 per barrel, following a four-month low in the previous session.

Defensive stocks were also above the waterline, with British Gas owner Centrica and defence company BAE Systems posting respective gains of 0.4% and 0.96%.

Reporting by Josh White for Sharecast.com.

Market Movers

FTSE 100 (UKX) 7,360.55 -1.28%

FTSE 250 (MCX) 17,853.09 -1.02%

techMARK (TASX) 4,044.66 -1.34%

FTSE 100 - Risers

BAE Systems (BA.) 1,103.50p 1.24%

SSE (SSE) 1,680.00p 1.11%

Marks & Spencer Group (MKS) 246.40p 0.94%

Shell (SHEL) 2,629.50p 0.55%

BP (BP.) 477.85p 0.53%

B&M European Value Retail S.A. (DI) (BME) 523.80p 0.50%

Centrica (CNA) 152.10p 0.43%

National Grid (NG.) 984.40p 0.31%

London Stock Exchange Group (LSEG) 8,536.00p 0.21%

3i Group (III) 2,026.00p 0.20%

FTSE 100 - Fallers

Diageo (DGE) 2,850.00p -12.17%

Ocado Group (OCDO) 517.20p -5.10%

Fresnillo (FRES) 516.60p -4.93%

WPP (WPP) 701.20p -3.50%

AstraZeneca (AZN) 10,090.00p -3.32%

Barratt Developments (BDEV) 443.30p -2.91%

Anglo American (AAL) 2,018.50p -2.77%

Spirax-Sarco Engineering (SPX) 8,536.00p -2.56%

Endeavour Mining (EDV) 1,651.00p -2.54%

Burberry Group (BRBY) 1,677.50p -2.44%

FTSE 250 - Risers

Babcock International Group (BAB) 419.00p 4.23%

Baltic Classifieds Group (BCG) 211.50p 2.64%

Ithaca Energy (ITH) 160.20p 1.91%

W.A.G Payment Solutions (WPS) 92.00p 1.77%

Plus500 Ltd (DI) (PLUS) 1,438.00p 1.48%

North Atlantic Smaller Companies Inv Trust (NAS) 3,630.00p 1.11%

Foresight Group Holdings Limited NPV (FSG) 405.00p 1.00%

Morgan Sindall Group (MGNS) 1,994.00p 0.81%

SDCL Energy Efficiency Income Trust (SEIT) 62.50p 0.81%

Essentra (ESNT) 155.60p 0.78%

FTSE 250 - Fallers

Indivior (INDV) 1,299.00p -6.03%

Ceres Power Holdings (CWR) 198.80p -5.33%

Future (FUTR) 874.50p -4.95%

Helios Towers (HTWS) 63.35p -4.45%

Redrow (RDW) 498.40p -4.15%

Dr. Martens (DOCS) 118.80p -4.04%

CAB Payments Holdings (CABP) 64.50p -3.59%

Wood Group (John) (WG.) 149.40p -3.43%

ITV (ITV) 59.72p -3.37%

Jupiter Fund Management (JUP) 82.05p -3.30%

More News
Today 11:14

UK renews long-term complex weapons deal with MBDA

FARNBOROUGH, England, July 22 (Reuters) - British defence minister John Healey has announced the renewal of a 6.5 billion pound ($8.40 billion), 10-year complex weapons partnership with MBDA, the European missile systems company.

Read more
Today 10:59

UK PM Starmer throws weight behind GCAP fighter jet project

FARNBOROUGH, England, July 22 (Reuters) - British Prime Minister Keir Starmer said he wanted to put "on record" just how important the Global Combat Air Programme (GCAP) was, dampening speculation that the fighter jet project with Japan and Italy could be axed following a defence review.

Read more
Today 10:38

UK PM Starmer tells airshow of importance of GCAP project

FARNBOROUGH, England, July 22 (Reuters) - British Prime Minister Keir Starmer said on Monday he wanted to put "on record" just how important the Global Combat Air Programme (GCAP) was, amid speculation that it could stop supporting the fighter jet project with Japan and Italy.

Read more
21 Jul 2024 11:00

Embraer's Eve rolls out flying taxi prototype, cash needs covered until 2027

Prototype to fly by end of 2024 or early 2025, says CEO Johann Bordais

*

Read more
20 Jul 2024 23:10

US to take 'hard look' at fighter project, top official says

RAF FAIRFORD, England, July 20 (Reuters) - The U.S. will closely dissect its plans for a Next Generation Air Dominance (NGAD) platform - a future family of fighters and drones - before deciding whether to go ahead, Secretary of the Air Force Frank Kendall said on Saturday.

Read more
19 Jul 2024 17:33

UK stocks end with weekly losses as commodity-linked stocks weigh

FTSE 100 down 0.6%, FTSE 250 off 0.8%

*

Read more
19 Jul 2024 09:38

LONDON BROKER RATINGS: Jefferies raises AJ Bell to 'buy'

(Alliance News) - The following London-listed shares received analyst recommendations Friday morning and on Thursday:

Read more
18 Jul 2024 20:30

UK defence firms discuss boosting support for Ukraine with Zelenskiy

LONDON, July 18 (Reuters) - Senior executives from British defence firms including BAE and Babcock met Ukrainian President Volodymyr Zelenskiy on Thursday to discuss the need to boost military support for the country in its conflict with Russia.

Read more
18 Jul 2024 13:05

US State Department OKs possible $138.26 mln weapons sale to Czech Republic -statement

WASHINGTON, July 18 (Reuters) - The U.S. State Department has backed the possible sale of hellfire missiles and other weapons worth $138.26 million to the Czech Republic via contractors Lockheed Martin and BAE Systems Inc, according to a statement posted online on Thursday.

Read more
18 Jul 2024 09:32

LONDON BROKER RATINGS: Berenberg cuts Babcock International to 'hold'

(Alliance News) - The following London-listed shares received analyst recommendations Thursday morning and on Wednesday:

Read more
12 Jul 2024 21:05

Germany says it won't be cowed by Russia after reported plot to kill Rheinmetall CEO

DUESSELDORF/WASHINGTON, July 12 (Reuters) - Berlin is taking reports of a plot to assassinate the chief executive of arms manufacturer Rheinmetall very seriously and will not be cowed by Russian intimidation, the German government said on Friday.

Read more
11 Jul 2024 16:19

Four European nations agree to jointly develop long-range cruise missiles

WASHINGTON, July 11 (Reuters) - France, Germany, Italy and Poland signed a letter of intent on Thursday to develop ground-launched cruise missiles with a range beyond 500 km (310 miles), aiming to fill what they say is a gap in European arsenals exposed by Russia's war in Ukraine.

Read more
11 Jul 2024 14:35

France, Germany, Italy, Poland agree to jointly develop long-range cruise missiles

WASHINGTON, July 11 (Reuters) - France, Germany, Italy and Poland on Thursday kicked off an initiative to develop ground-launched cruise missiles with a range beyond 500 kilometres to fill a gap in European arsenals that they say has been exposed by Russia's war in Ukraine.

Read more
21 Jun 2024 09:28

LONDON BROKER RATINGS: Barclays cuts Ryanair and Wizz Air

(Alliance News) - The following London-listed shares received analyst recommendations Friday morning and on Thursday:

Read more
21 Jun 2024 07:56

JPMorgan lifts BAE Systems price target, points to 'exciting' list of potential new contracts

(Sharecast News) - JPMorgan Cazenove lifted its price target on BAE Systems on Friday to 1,500p from 1,400p as it pointed to an exciting list of potential new contracts.

Read more

Login to your account

Don't have an account? Click here to register.

Quickpicks are a member only feature

Login to your account

Don't have an account? Click here to register.