31st Mar 2025 07:55
(Alliance News) - Stocks in London are called to open lower at the start of the week, after equities in New York slumped on Friday, and counterparts in Asia fell sharply on Monday.
"The tariff talk remains on the headlines as the liberation day approaches. Risk appetite is nowhere to be found," Swissquote analyst Ipek Ozkardeskaya commented.
The Donald Trump administration in the US is due update on reciprocal tariffs on Tuesday, the event dubbed 'liberation day'.
Trump declared on Saturday that he "couldn't care less" if automakers increase car prices for Americans in the wake of his imposition of import tariffs.
On Thursday, Trump imposed a blanket 25% import tariff on cars and light trucks made outside the US, due to take effect on April 3.
In early UK corporate news AB Foods said the boss of Primark has left the position after an investigation into his conduct. Aston Martin announced Executive Chair Lawrence Stroll's Yew Tree Consortium has invested more in the carmaker.
Here is what you need to know at the London market open:
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MARKETS
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FTSE 100: called down 0.7% at 8,601.15
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Hang Seng: down 1.2% at 23,138.45
Nikkei 225: down 3.9% at 35,666.42
S&P/ASX 200: down 1.7% at 7,843.40
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DJIA: closed down 1.7% at 41,583.90
S&P 500: closed down 2.0% at 5,580.94
Nasdaq Composite: closed down 2.7% at 17,322.99
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EUR: higher at USD1.0833 (USD1.0829)
GBP: higher at USD1.2958 (USD1.2945)
USD: lower at JPY148.92 (JPY150.07)
GOLD: higher at USD3,116.55 per ounce (USD3,081.91)
(Brent): higher at USD72.70 a barrel (USD72.45)
(changes since previous London equities close)
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ECONOMICS
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Monday's key economic events still to come:
11:00 BST Ireland CPI
09:30 BST UK mortgage approvals
14:45 BST US Chicago PMI
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UK Prime Minister Keir Starmer and US President Donald Trump have agreed on the need to "keep up the collective pressure on Putin" during a phone call, Downing Street said. The Sunday night call came after Trump said he was angry with his Russian counterpart Vladimir Putin for questioning the credibility of Ukraine's President Volodymyr Zelensky. Further, Starmer and Trump discussed "productive" talks towards a UK-US trade deal, the Downing Street office said on Sunday. Since Britain's exit from the EU at the start of the decade successive UK governments have sought to strike a trade deal with the US. "They discussed the productive negotiations between their respective teams on a UK-US economic prosperity deal, agreeing that these will continue at pace this week," a statement read. "They agreed to stay in touch in the coming days." Trump himself has dangled the prospect of a "great" deal that could help the UK avoid, or at least soften, the blow caused by the tariffs the US president has promised. Unlike the EU, Britain has declined to retaliate against the tariffs already imposed on the country's steel industry. Though the previous Conservative government did not manage to ink a deal in, Labour party leader Starmer came away from a Washington visit in late February hopeful of reaching an agreement. The UK is believed to want a trade deal ahead of Trump's so-called April 2 "liberation day", when he is set to unveil a range of tariffs for different trading partners. But any such accord is yet to see the light of day.
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Some UK home buyers putting in offers from Tuesday may ask to split the cost of higher stamp duty rates with sellers, a property market expert has said. From April 1, nil rate stamp duty discounts will shrink, with first-time buyers seeing the zero rate threshold reduce from GBP425,000 to GBP300,000 and home movers seeing theirs halve from GBP250,000 to GBP125,000. Stamp duty applies in England and Northern Ireland. Richard Donnell, executive director at Zoopla, said: "Home buyers will expect to reflect this extra cost in their offers, typically looking to split the cost with the seller. On the whole the amounts are not large, but the overall impact will keep house price growth in check over 2025."
Donnell said housing market activity continues to increase despite the ending of stamp duty relief. He said: "Zoopla's latest data shows sales agreed up 5% year-on-year, with many more homes for sale. There is a stamp duty hangover effect in London where first-time buyers face the highest increase in costs of buying. We expect sales to grow 5% over 2025 to 1.15 million." In February, Zoopla calculated that the proportion of first-time buyers in England and Northern Ireland who will need to pay stamp duty will double from April. The firm estimated the share of first-time buyers paying the tax will jump from 21% to 42%.
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BROKER RATING CHANGES
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Barclays raises Bunzl to 'overweight' - price target 3,650 pence
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Jefferies raises Energean to hold' - price target 910 pence
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COMPANIES - FTSE 100
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Associated British Foods said the boss of its Primark retail unit has resigned with immediate effect. Paul Marchant's departure comes after an investigation "into an allegation made by an individual about his behaviour towards her in a social environment". The probe was carried out by external lawyers and initiated by AB Foods, the firm said. AB Foods added: "Paul Marchant cooperated with the investigation, acknowledged his error of judgement and accepts that his actions fell below the standards expected by ABF. He has made an apology to the individual concerned, the ABF board and also to his Primark colleagues and others connected to the business. As we have committed to publicly, ABF seeks to provide a safe, respectful, and inclusive work environment where all employees and third parties are treated with dignity and respect. Primark is committed to doing business the right way at all levels of the company." Eoin Tonge, the finance director of AB Foods, will act as Primark CEO on an interim basis. AB Foods Financial Controller Joana Edwards becomes interim finance director for the FTSE 100 listing. "Both executives have the experience to perform these roles well," it added. AB Foods releases interim results on April 29.
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Drugmaker AstraZeneca reported an approval in the US, and a key endorsement in the EU. Imfinzi has been backed to treat some adult patients of bladder cancer by the US Food & Drug Administration. The backing for adult sufferers of muscle-invasive bladder cancer came after trial results showed a 32% reduction in the risk of recurrence and a 25% cut to the risk of death when compared to neoadjuvant chemotherapy alone. Meanwhile, the Committee for Medicinal Products for Human Use has recommended for approval Calquence for the treatment of some adult patients with previously untreated mantle cell lymphoma, a blood cancer. The CHMP forms part of the European Medicines Agency.
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COMPANIES - FTSE 250
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Aston Martin Lagonda announced Executive Chair Lawrence Stroll's Yew Tree Consortium has proposed raising its stake in the carmaker to 33% from just under 28%. Yew Tree proposed acquiring 75 million new shares at 70 pence each, a 6.4% premium to Aston Martin's Friday closing price of 65.80p. The proposed investment is worth GBP52.5 million. Yew Tree currently owns 27.67%. Stroll said: "I am pleased to clearly demonstrate my unwavering support and commitment to Aston Martin. Since 2020, my Yew Tree Consortium partners and I have invested around GBP600 million into the company. This proposed investment further underscores my conviction in this extraordinary brand, and commitment to ensuring Aston Martin has the strongest possible platform for creating long-term value while reducing equity dilution via this premium subscription, which should greatly reassure shareholders, as I again increase my long-term ownership in the company." In addition, Aston Martin Lagonda has proposed selling its minority stake in the Aston Martin Formula One outfit, "expecting to realise a premium to the current book value" of around GBP74 million. Stroll added: "Today's proposed investment, priced at a premium to the market price, and the forthcoming proposed sale of the Aston Martin F1 Team shares owned by Aston Martin at a premium to book value, is expected to generate significant additional liquidity for the group, of over GBP125 million. With a long-term sponsorship agreement cementing the existing relationship between Aston Martin and the Aston Martin F1 Team, our brand will remain present and competing at the pinnacle of motorsport for many years to come." Aston Martin said trading in the first-quarter of 2025 "is in line with the guidance previously provided". It added: "The company expects volumes to be broadly in line with the prior year period although, as guided, mix will be negatively impacted by fewer special deliveries. Thereafter, performance is expected to progress, with a significantly stronger H2 2025 compared with H1 2025, primarily driven by Q4 2025." It releases results for the first-quarter on April 30. Aston Martin noted City rules would typically mean Yew Tree will need to make a mandatory offer for the remaining shares, should its stake hit 30% or more. Aston Martin will pursue a waiver from the Panel of Takeovers & Mergers. It will look to obtain shareholder approval for the waiver from shareholders at a general meeting. "The waiver and the resolution will be sought in relation to a potential increase in the Yew Tree Consortium's shareholding to up to 35% of the issued share capital of the company," it added.
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Pets at Home said it expects to report annual profit in line with guidance, despite a "challenging and volatile UK consumer backdrop". The pet care firm expects underlying pretax profit of GBP133 million for the financial year ended March 27, "in line with previous guidance". It would represent a 0.8% climb from GBP132.0 million the year prior. "Q4 trends have been broadly as we planned across Retail and Vets, against a challenging and volatile UK consumer backdrop," it explained. "We expect the current market conditions and subdued consumer backdrop to continue into the new financial year." In its Vet offering, it expects "further progress" in underlying profit in the year, but noted the comparative period saw "exceptional levels of growth delivered". The Retail division, it expects to outperform "subdued UK pet retail market growth". Noting demand and the prospect of higher costs from UK budget measures announced last year, it expects Retail underlying profit the fall. "Taking all this into account, this would lead to a FY26 group underlying PBT outcome down year on year, within a range of GBP115 million-125 million," it added. It releases annual results on May 28.
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OTHER COMPANIES
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John Wood Group said a probe found "material weaknesses and failures" in the "financial culture" of its Projects division. The "cultural failings" may have led to some information being withheld from auditors, Wood Group said. "As a result of the review, a number of prior year adjustments are expected to be required to the income statement and balance sheet," the engineering and consulting business said. The will predominantly impact the Projects unit. It expects "material prior year profit & loss and balance sheet adjustments" for 2022, 2023 and the first half of 2024. For the 2024 annual results, Wood Group does not expect these to be published by April 30. "In that case, the company's shares would be suspended from trading from that time as work progresses towards completion of its FY24 accounts," it cautioned. "We remain in constructive dialogue with the group's lenders regarding refinancing options and will engage with lenders in respect of the timing of our FY24 accounts, including putting in place appropriate pre-emptive waivers under our committed debt facilities." Wood Group last month announced the probe, as well as further cost cuts. It also said last month that Arvind Balan stepped down as finance chief, after it emerged that his professional qualifications had been incorrectly described in public statements.
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By Eric Cunha, Alliance News news editor
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Related Shares:
BunzlEnergean Oil & GasWood Group (J)Pets at homeAston Martin LagondaAB FoodsAstrazeneca