Stefan Bernstein explains how the EU/Greenland critical raw materials partnership benefits GreenRoc. Watch the full video here.

Less Ads, More Data, More Tools Register for FREE
Stefan Bernstein explains how the EU/Greenland critical raw materials partnership benefits GreenRoc
Stefan Bernstein explains how the EU/Greenland critical raw materials partnership benefits GreenRocView Video
Utilico Insights - Jacqueline Broers assesses why Vietnam could be the darling of Asia for investors
Utilico Insights - Jacqueline Broers assesses why Vietnam could be the darling of Asia for investorsView Video

Latest Share Chat

Pin to quick picksDirect Line Share News (DLG)

Share Price Information for Direct Line (DLG)

London Stock Exchange
Share Price is delayed by 15 minutes
Get Live Data
Share Price: 195.05
Bid: 196.85
Ask: 197.05
Change: 0.00 (0.00%)
Spread: 0.20 (0.102%)
Open: 0.00
High: 0.00
Low: 0.00
Prev. Close: 195.05
DLG Live PriceLast checked at -

Watchlists are a member only feature

Login to your account

Alerts are a premium feature

Login to your account

LONDON MARKET MIDDAY: Eyes Turn To ADP Jobs After Brutal European Data

Wed, 06th May 2020 12:04

(Alliance News) - The FTSE 100 was posting solid gains at midday on Wednesday as some of the morning's caution ebbed, with ITV and Smith & Nephew among the stocks gaining.

However, blue-chip indices in mainland Europe lagged after a morning of awful data, capped off with a warning from Brussels that the eurozone economy could contract 7.7% this year.

The FTSE 100 index was up 34.12 points, or 0.6%, at 5,883.54 Wednesday midday. The mid-cap FTSE 250 index was up 81.75 points, or 0.5%, at 16,174.89. The AIM All-Share index was up 0.8% at 808.78.

The Cboe UK 100 index was up 0.5% at 9,955.18. The Cboe 250 was up 0.4% at 13,848.66, and the Cboe Small Companies up 0.2% at 13,848.66.

In mainland Europe, the CAC 40 in Paris was down 0.3% while the DAX 30 in Frankfurt was up 0.1%.

"Tentative gains throughout Europe have mimicked sentiment in Asia, with traders understandably lacking conviction given the plethora of contradictory drivers which are in play," said Joshua Mahony, senior market analyst at IG.

"Oil prices continue to gain ground in what has been an incredible period of upside for energy prices, bringing crude into levels not seen for over three-weeks. While fears remain over the potential breakdown in relations between the US and China, the lack of any evidence that this virus originated from a Wuhan lab highlights the feeling that the accusations will likely evolve into the lesser issue of failing to notify the world quickly enough," Mahony continued. "On a day that has seen sharp volatility, markets will be keeping a close eye out for today's ADP payrolls figure as we approach a likely record low non-farm payrolls figure."

US ADP employment change is at 1315 BST, the data a precursor to Friday's monthly jobs report. FXStreet consensus forecasts a loss of 20 million jobs in the US in April.

Already released, figures from IHS Markit showed the eurozone economy came under significant pressure in April due to Covid-19 lockdowns.

The euro bloc's composite purchasing managers' index dropped to 13.6 in April from March's previous record low of 29.7. April's flash reading was 13.5. Any reading below 50 indicates a weakening of conditions, and one above an improvement.

Among countries, Germany had a highest composite PMI reading of 17.4, while Spain's was the weakest at 9.2. All five countries surveyed, though, recorded survey lows in April.

The restrictions put in place to stem the spread of Covid-19 led to not only a sharp fall in activity, but also "steep and unprecedented" drops in new business. April's survey also showed a series record fall in new export sales.

The eurozone services business activity index slipped to a series low of 12.0 in April from 26.4 in March. April's flash reading had been 11.7.

This data was followed up with the European Commission warning that eurozone gross domestic product will contract 7.7% this year in a recession of "historic proportions".

The rate of unemployment in the 19-country currency area is also to rise to 9.6% in 2020, up from 7.5% last year, EU officials estimate.

"Europe is experiencing an economic shock without precedent since the Great Depression," EU economy commissioner Paolo Gentiloni said on Wednesday. "Both the depth of the recession and the strength of recovery will be uneven."

Eurozone GDP growth should rebound to 6.3% in 2021, EU officials estimate, while the rate of joblessness should improve to 8.6%. The forecast is based on the assumption that the coronavirus lockdown measures are to be gradually eased from May onwards, the EU executive stressed.

The euro took a beating on Wednesday. The single currency traded at USD1.0792, down on USD1.0842 late Tuesday.

The pound also weakened after IHS Markit showed UK construction activity sank to previously unseen levels.

The IHS Markit-Chartered Institute of Procurement & Supply construction total activity index plummeted to just 8.2 in April from 39.3 in March. April's reading was the lowest since data were first collected in April 1997, with the previous record low 27.8 in February 2009.

All three main categories of construction work suffered survey record falls in April, with declines in house building and commercial activity exceeding that for civil engineering.

Sterling was quoted at USD1.2372 in the morning, soft on USD1.2453 at the London equities close on Tuesday.

Against the yen, the dollar was quoted at JPY106.35 versus JPY106.58.

Gold was quoted at USD1,700.32 an ounce on Wednesday, higher than USD1,698.55 on Tuesday. Brent oil was trading at USD31.68 a barrel, up against USD30.22 late Tuesday.

In the US, Wall Street is on course for a stronger start to Wednesday's session than Europe. The Dow Jones is seen up 1.0%, the S&P 500 up 1.0% as well and the Nasdaq Composite pointed 0.9% higher.

In London, ITV was at the top of the FTSE 100, up 4.6%, despite saying advertising revenue fell by more than 40% in April and the broadcaster has been forced to furlough 15% of its UK workforce due to the Covid-19 pandemic.

Due to a "significant impact" on demand, advertising revenue slumped 42% in April.

Advertising revenue did edge 2.2% higher year-on-year to GBP426 million over the three months to March 31, ITV's first quarter, a period which for the most part was spared from the financial bite of the Covid-19 pandemic.

Total first quarter revenue was 3.7% lower annually at GBP842 million from GBP874 million in 2019. Broadcast revenue edged 2.2% higher to GBP500 million, but in production arm ITV Studios it was 11% lower at GBP342 million.

External revenue, which includes the advertising and non-advertising contribution, fell 6.5% year-on-year in the first quarter to GBP694 million.

Smith & Nephew shares advanced 2.7%. The medical device maker reported a decline in first quarter revenue as the Covid-19 pandemic curtailed the number of elective surgical procedures taking place.

S&N reported a 5.8% drop in revenue for the three months ended March 28 to USD1.13 billion from USD1.20 billion, a 7.6% drop on an underlying basis - in keeping with its March trading update.

All of its franchises had been "held back by impact of Covid-19 to varying degrees dependent on geography and exposure to elective procedures", S&N said. Fewer elective surgeries took place in the quarter as many were postponed or cancelled as a consequence of the pandemic and government measures surrounding it.

In April, revenue plummeted 47% on an underlying basis, which Smith & Nephew said reflected "suspension of elective procedures in most markets, somewhat offset by improving trading in China".

Ocado rose 2.2% after the online grocer said retail sales so far in the second quarter have jumped by 40% as demand surged in response to the pandemic.

Ahead of its annual general meeting, the FTSE 100 firm said retail revenue in its first quarter ended early March was 10% higher year-on-year. So far in its second quarter, sales have climbed 40% annually.

Consumers in the UK, during the early stages of the virus crisis, stockpiled on goods in fear of shortages further down the line. Ocado said demand ratcheted up "almost overnight".

FTSE 250-listed Virgin Money UK climbed 8.3%. The lender reported an interim loss as it upped credit loss provisions and saw income suffer from margin pressure.

Virgin Money was known as CYBG until the end of October 2019, changing its name as part of a rebranding following the purchase of challenger bank Virgin Money for GBP1.7 billion in October 2018. It also owns Clydesdale Bank and Yorkshire Bank.

In the six months to March 31, Virgin Money recorded a GBP7 million pretax loss compared to a GBP42 million profit in the same period a year before. Underlying profit slipped 58% to GBP120 million from GBP286 million.

Virgin Money upped its impairment losses to GBP237 million from GBP173 million a year before. Included in this is a GBP146 million impairment charge for expected losses from the Covid-19 pandemic.

Direct Line Insurance shares increased 5.2% as it reported growth in first quarter gross written premiums and a sharp fall in claims.

In the first quarter, ended March 31, the home and motor insurer said total gross written premiums rose 4.7% year-on-year to GBP789.6 million from GBP753.9 million.

Motor premiums were up 6.2% to GBP410.9 million. Claims inflation was in line with Direct Line's 3% to 5% long-term expectations. The insurer noted claims were down 70% in April on Covid-19 lockdown restrictions.

Elsewhere in London, Halfords shares rose 16% as the bicycle and car parts retailer reported better-than-expected sales.

For the year ending March 29, Halfords expects adjusted pretax profit at the upper end of its guided range between GBP50 million and GBP55 million.

"As a provider of essential products and services to the UK public, we have remained open during the lockdown period. We currently have 325 retail stores open on a dark-store basis, where serving customers from the front of the store ensures our colleagues can operate in safe working conditions. We also have 346 garages open and 77 mobile vans operating," Halfords said.

In the four weeks to May 1 the retailer's like for like group sales were down 23% year-on-year, but Halfords noted that this was better than expected.

By Lucy Heming; lucyheming@alliancenews.com

Copyright 2020 Alliance News Limited. All Rights Reserved.

More News
28 Mar 2024 13:43

UK dividends calendar - next 7 days

Friday 29 March 
Energean PLCdividend payment date
Fiske PLCdividend payment date
Triple Point Social Housing REIT PLCdividend payment date
Monday 1 April 
no events scheduled 
Tuesday 2 April 
Ashmore Group PLCdividend payment date
Braemar PLCdividend payment date
Fair Oaks Income Ltddividend payment date
Fonix Mobile PLCdividend payment date
JPMorgan European Growth & Income PLCdividend payment date
MJ Gleeson PLCdividend payment date
RM Infrastructure Income PLCdividend payment date
Shoe Zone PLCspecial dividend payment date
Temple Bar Investment Trust PLCdividend payment date
Tritax Big Box REIT PLCdividend payment date
Warehouse REIT PLCdividend payment date
Wheaton Precious Metals Corpex-dividend payment date
Wednesday 3 April 
Barclays PLCdividend payment date
Tetragon Financial Group Ltddividend payment date
Thursday 4 April 
Alpha Group International PLCex-dividend payment date
Apax Global Alpha Ltddividend payment date
BP Marsh & Partners PLCex-dividend payment date
Breedon Group PLCex-dividend payment date
Brunner Investment Trust PLCdividend payment date
Chelverton UK Dividend Trust PLCex-dividend payment date
CT UK High Income Trust  PLC - Class Bex-dividend payment date
Dalata Hotel Group PLCex-dividend payment date
Direct Line Insurance Group PLCex-dividend payment date
Domino's Pizza Group PLCex-dividend payment date
Empiric Student Property PLCex-dividend payment date
European Assets Trust PLCex-dividend payment date
European Smaller Cos Trust PLCex-dividend payment date
Finsbury Growth & Income Trust PLCex-dividend payment date
Games Workshop Group PLCex-dividend payment date
Grit Real Estate Income Group Ltdex-dividend payment date
Hammerson PLCex-dividend payment date
Henderson High Income Trust PLCex-dividend payment date
IMI PLCex-dividend payment date
InterContinental Hotels Group PLCex-dividend payment date
Invesco Asia Trust PLCex-dividend payment date
Kitwave Group PLCex-dividend payment date
Life Science REIT PLCex-dividend payment date
London Finance & Investment Group PLCdividend payment date
Martin Currie Global Portfolio Trust PLCex-dividend payment date
Mondi PLCex-dividend payment date
Nexus Infrastructure PLCex-dividend payment date
OSB Group PLCex-dividend payment date
Pebble Group PLCex-dividend payment date
PZ Cussons PLCdividend payment date
Real Estate Investors PLCex-dividend payment date
Rentokil Initial PLCex-dividend payment date
RIT Capital Partners PLCex-dividend payment date
Schroder Income Growth Fund PLCex-dividend payment date
Shires Income PLCex-dividend payment date
Smiths Group PLCex-dividend payment date
South32 Ltddividend payment date
US Solar Fund PLCex-dividend payment date
VinaCapital Vietnam Opportunity Fund Ltdex-dividend payment date
  
Comments and questions to newsroom@alliancenews.com
  
A full 14-day events calendar is provided each day with a subscription to Alliance News UK Professional.
  
Copyright 2024 Alliance News Ltd. All Rights Reserved

Read more
28 Mar 2024 09:35

LONDON BROKER RATINGS: Aviva and L&G cut; mixed calls on Diploma

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

Read more
25 Mar 2024 16:51

LONDON MARKET CLOSE: Renewed global tensions put pressure on stocks

(Alliance News) - Stock prices in London started the week in bad shape and closed lower on Monday, as investors sat on their hands amid rising global tensions.

Read more
25 Mar 2024 15:49

London close: Stocks slip back after last week's peak

(Sharecast News) - London markets finished in the red on Monday, having traded below the waterline through the session after reaching a peak at the end of last week.

Read more
25 Mar 2024 12:09

LONDON MARKET MIDDAY: Stocks make tepid start to new week

(Alliance News) - Stock prices in London were down at midday on Monday, giving back some gains from last week, when equities were boosted by central bank decisions and accompanying statements which investors saw as dovish.

Read more
25 Mar 2024 10:19

LONDON BROKER RATINGS: SocGen raises Sage; Numis cuts Virgin Money

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

Read more
25 Mar 2024 09:04

LONDON MARKET OPEN: FTSE 100 treads water, FTSE 250 declines

(Alliance News) - The FTSE 100 in London traded flat early Monday, while the pound remained below the USD1.26 mark, as Bank of England Governor Andrew Bailey suggested rate cuts may happen soon.

Read more
25 Mar 2024 07:16

Direct Line confident in standalone prospects as Ageas abandons pursuit

(Sharecast News) - Direct Line said on Monday that it was confident in its standalone prospects after Belgium's Ageas announced it would not be making an offer for the insurer following two failed attempts at engaging with the board.

Read more
22 Mar 2024 18:48

TOP NEWS: Ageas withdraws bid for Direct Line after advances spurned

(Alliance News) - Ageas AG on Friday said it has withdrawn a proposed bid for Direct Line Insurance Group PLC after failing to secure the backing of its UK peer.

Read more
21 Mar 2024 16:33

London close: Stocks rise as BoE keeps rates on hold

(Sharecast News) - London markets closed higher on Thursday, sustaining gains after the Bank of England adhered to expectations by maintaining interest rates at a 16-year high.

Read more
21 Mar 2024 10:02

TOP NEWS: Direct Line eyes cost cuts as new CEO fends off Ageas

(Alliance News) - Direct Line Insurance Group PLC on Thursday announced plans to save GBP100 million and boost insurance margins, as it looks to stymie the unwanted advance of Belgium's Ageas SA.

Read more
21 Mar 2024 08:08

Direct Line reinstates dividend, announces new cost-savings plan

(Sharecast News) - Direct Line posted a widening of its full-year losses on Thursday as it announced a new £100m cost-savings plan and declared a 4p a share dividend.

Read more
21 Mar 2024 07:52

LONDON BRIEFING: Stocks called up thanks to New York rally

(Alliance News) - Stocks in London are to open higher on Thursday, after a global equity market rally following the latest interest rate call from the US Federal Reserve.

Read more
17 Mar 2024 22:57

Sunday newspaper round-up: Nationwide, Direct Line, Rolls-Royce

(Sharecast News) - Nationwide's bid to create the UK's second-largest savings and loans group by taking over Virgin Money may be derailed if its members get a say on whether the deal goes through or not. It would take just 500 Nationwide members depositing £50 each one to convene a special meeting and ask for a vote on the deal. Furthermore, preparations for a vote would keep Nationwide from meeting the 4 April deadline for making a binding offer under Takeover Panel rules. However, the society says that its existing legal advice is that no vote is required. - Financial Mail on Sunday

Read more
17 Mar 2024 10:50

PRESS: Direct Line suitor Ageas heads to China for Fosun backing

(Alliance News) - Direct Line Insurance Group PLC suitor Ageas SA has looked to win support of its own largest shareholder, China's Fosun, in its bid to acquire the FTSE 250-listed insurer, the Sunday Times reported.

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.