he resurgence of airline and leisure stocks slowed today as some of the New Year’s excitement exited the London market.
The FTSE 100 index produced a more subdued performance after yesterday’s 1.6% opening day rally took London’s first flight to its highest level since early 2020.
Wall Street markets set the tone for today’s gloomy session as rising bond yields triggered a flight in high-growth stocks.
FTSE 100 ahead of Omicron’s optimism
The London blue chip index ended Wednesday up 11.72 points to 7,516.87.
Oliver Males of Spreadex said: “Persistent optimism about the minimal negative impact of the Omicron variant continues to appeal to investors. “
The men said: “Gains weren’t as strong in the UK today as some of the New Year’s buzz has worn off, although it still managed to push the FTSE 100 to its highest level since the start of 2022. “
The requirement to self-isolate on arrival until receiving a negative PCR test will also be removed, he told the House of Commons.
London City Airport Managing Director Robert Sinclair said: “Today’s announcement to ease travel restrictions is extremely well received and gives our industry significant momentum and renewed optimism for 2022. “
Susannah Streeter, Senior Investment and Markets Analyst at Hargreaves Lansdown, said: ‘The relaxation of testing rules is the belated Christmas present the travel industry has been waiting for. Shares of London-listed airlines rose again today – as rumors circulated that lateral flow testing would replace expensive PCRs on arrival in the UK, and pre-departure testing would be phased out – a decision confirmed by the government towards the end of the trading day.
That’s all from the city office today. We will be back tomorrow.
Britons are expected to order nearly 8 million low-alcohol or non-alcoholic pints this month as the low-value sector booms
Britons are expected to drink nearly 8 million pints of low-alcohol, non-alcoholic beer this month as the dry January resolutions come amid a boom in the low-alcohol sector, according to a prominent commercial body.
The British Beer & Pub Association (BBPA) announced today that it expects 7.8 million pints of low-resistance beers to be sold in the UK by January 31, primarily through supermarkets.
The estimate comes after a few years in which the assorted drink giants created new and improved non-alcoholic beers.
Brands are targeting a growing market and younger consumers.
London office spending returns to pre-pandemic level
Investor spending in central London offices has returned to pre-pandemic levels in 2021, with buyers examining demand from tenants beyond working from home, new research shows.
Preliminary figures from estate agent CBRE show office transactions to hit £ 11.3 billion.
It was 49% ahead of the £ 7.6bn recorded in 2020 and was in line with what had been seen the year before.
FTSE 100 higher at lunchtime
The new year rebound for the FTSE 100 index continued today, up 8.67 points to 7,513.82 by 1pm.
Airlines and leisure stocks are hanging on to gains made yesterday in the first trading session of the year, when Omicron worries allayed helped the rally to the top. The shares of IAG and easyJet are currently up 1% and 2.67% respectively.
The news to catch up with this morning includes:
Goldman Sachs says bitcoin could hit $ 100,000
Goldman Sachs said the price of bitcoin could reach an all-time high and climb to $ 100,000 in the coming years if more investors embrace digital currency as an alternative to gold.
In a note sent to clients this week, US investment bank foreign exchange analysts said bitcoin could rise to the level in the next five years as it continues to gain market share in gold over the next five years. the “store of value” market.
“Bitcoin currently holds about 20% of the ‘store of value’ (gold plus Bitcoin) market,” analysts wrote. “We believe that Bitcoin’s market share will most likely increase over time due to the wider adoption of digital assets.
Hypothetically, if Bitcoin’s share of the ‘stores of value’ market were to grow to 50% over the next five years (without growing aggregate demand for stores of value), its price would rise to just over 100, $ 00. “
Tech Entrepreneur and Vote Leave Campaign Veteran Joins Model Railroad Builder Hornby as NED
Model railroad builder Hornby has chosen Henry de Zoete, technology entrepreneur and former success of Dragons’ Den, as its final non-executive director.
The angel investor, who secured a prominent deal on the hit BBC show, founded auto-switching startup Look After My Bills, which was acquired by Go Compare’s parent company, GoCo, in 2019.
de Zoete is currently also an NED on the Cabinet Office Board of Directors, and previously worked as Digital Director of Vote Leave and as Special Advisor to Michael Gove.
The entrepreneur said Hornby’s offerings are “incredible heritage brands that I grew up with” and that he is delighted to give “a strategic contribution” as the company “focuses on transformation and growth. digital “.
Hornby was founded in 1901 when Frank Hornby patented the Meccano children’s set, and has seen sales increase in recent years. The company is undergoing major changes under its current boss.
London sees first IPO of 2022
London saw its first IPO of the year this morning as a trailer-to-portal provider for the stars, Facilities by ADF, launched on AIM.
The Wales-based company, whose clients include Netflix, Disney and the BBC, has provided all of the hit series for the Peaky Blinders streaming service, including the actors’ quarters and makeup trucks.
The company floated under the ADF ticker at 50 pence a share with an estimated market capitalization of £ 37.8million. By mid-morning, its shares were trading at 54.5 pence.
ADF was started in 1992 by founder Andy Dixon, who converted an old bus into a restaurant trailer, and now has over 500 trucks. It raised £ 18.4million on the IPO, and Chairman John Richards has said the new money will help the company “meet growing demand” in the UK television production industry and cinematic amid the streaming boom.
London alone will acquire a new 150,000 square foot studio in Brent Cross this year and witness the renovation and expansion of historic Twickenham Studios.
Cenkos Securities acted as appointed advisor and sole broker during the IPO.
Playtech delays takeover vote
Playtech, which makes software for game companies, said it was pushing back shareholder approval of the Aristocrat deal. A vote was originally scheduled for January 12, but will now take place on February 2.
The update will fuel speculation that an Aristocrat gazumping offer is imminent. Peel Hunt analyst Ivor Jones said the delay suggested there was “sufficient substance to the potential supply from JKO,” the consortium led by Jordan and O’Loughlin.
Analysts see today’s stock as a phase of consolidation after yesterday’s strong gains on the FTSE.
Richard Hunter, Head of Markets at Interactive Investor, said: “After a strong start to the year, investors’ attention has turned to the more pressing issue of rising interest rate expectations.
“Rising US Treasury yields have caused high-growth stocks, such as tech, to turn towards value, boosting financials and industrials stocks.
The rotation weighed on the Nasdaq index and left the S & P500 virtually flat, although it also propelled the Dow Jones Industrial Average to another closing high, despite a manufacturing reading slightly below expectations, but which nevertheless confirmed continued growth.
Asian markets were mixed in the wake of the Wall Street draft, with similar themes playing out as tech stocks came under pressure, with local currencies also reacting negatively to the greenback’s continued strength.
“The more cautious sentiment in other markets inevitably confused UK investors at the start of trading, after a strong initial session for the year.
“More broadly, the looming reporting season will provide new opportunities for companies to demonstrate their most recent progress and, in particular, could help allay some of the concerns arising from the perceived economic impact of the Omicron variant on recovery hopes. . “
Neil Wilson of Markets.com said, “You have this real divide between concerns about Omicron and the spread of new variants with potential impact on the economy and the fact that rates are rising, inflation is high and economy is doing just fine. This left the market to sway a bit to the side – with real volatility – in November and December before we had the Santa Claus rally at the end of last month. The market regains its usual seasonal strength with some vigor again in January. ”
Airlines shares consolidate new year’s gains
The FTSE 100 index fell 7.1 points weaker than expected to 7,498.04 as yesterday’s big gains in the airline and leisure sector were largely intact.
British Airways owner IAG was down 0.9p to 157.62p, after jumping 11% yesterday in hopes of a brighter 2022. InterContinental Hotels added 66p to 5094p.
Ocado recovered from 53p to 1609p at the top of the FTSE 100 riser chart as the grocery tech sector pushed back much of the 7% drop seen yesterday.
Lloyds Banking Group also traded above 50p per share amid expectations of another UK interest rate hike earlier this year.
The FTSE 250 index was little changed at 23,8891, with Cineworld the largest increase after a 2% improvement.