9th Jun 2025 07:50
(Alliance News) - London's FTSE 100 is set to open flat on Monday, failing to replicate the more confident trade seen from Asia overnight.
Eyes at the start of the week will be on talks between the US and China on trade. The discussions take place in London.
"Chinese equities opened the week on a mildly positive note, supported by hopes that weak macro data will prompt further stimulus from the People's Bank of China and the government, and that the second round of US-China trade talks – today in London – could lead to further progress. Last week, a phone call between Trump and Xi yielded news that China would relax export controls on rare earth metals to the US, suggesting the US may also ease restrictions on certain technology exports. Still, some observers warn that the second round of talks may not bring the same level of progress as the first. Any lack of progress could prompt bulls to take profits and move to the sidelines," Swissquote analyst Ipek Ozkardeskaya commented.
In early UK corporate news, WPP announced its boss will step down. Alphawave backed a takeover bid from Qualcomm.
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 just 2.2 points at 8,835.71
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Hang Seng: up 1.1% at 24,042.11
Nikkei 225: up 0.9% at 38,087.19
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DJIA: closed up 1.1%, at 42,762.87
S&P 500: closed up 1.0% at 6,000.36
Nasdaq Composite: closed up 1.2% at 19,529.95
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US 10-year Treasury yield: 4.50% (4.48%)
US 30-year Treasury yield: 4.97% (4.94%)
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EUR: higher at USD1.1421 (USD1.1387)
GBP: higher at USD1.3560 (USD1.3522)
USD: lower at JPY144.23 (JPY144.93)
GOLD: lower at USD3,317.91 per ounce (USD3,330.06)
(Brent): higher at USD66.25 a barrel (USD66.21)
(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 industrial production
15:00 BST US wholesale inventories
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UK Prime Minister Keir Starmer will travel to Canada later this week to meet Mark Carney for talks on security and economic partnerships. The Times reported that the pair will meet on June 14, ahead of the G7 leaders' summit in Alberta, against the backdrop of growing concerns about Donald Trump's trade war against its northern neighbour and repeated threats to annex Canada. Trump has repeatedly suggested turning Canada into its 51st state and imposed tariffs that led to retaliation from Ottawa. The Canadian prime minister made the trip to Washington DC last month in a bid to ease tensions, but was dealt a blow last week when the US president doubled tariffs on steel imports. Only the UK was spared from the White House's tariff hike, thanks to a deal struck between the two countries. Levies will remain at 25% for imports from the UK, however Britain could still be subject to the higher 50% rate from July. Starmer's trade pact with the US, struck last month, included relief on the steel and aluminium tariffs, but the implementation is yet to be finalised. The prime minister's trip follows a royal visit by the King, who warned Canada is facing a "critical moment" in its history, with the world a "more dangerous and uncertain place" in a speech to open the nation's parliament.
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After a round of talks in Geneva last month, the US and China will sit down at the negotiating table in London on Monday to attempt to preserve a fragile truce on trade, despite simmering tensions. Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer will lead the US delegation, President Donald Trump announced Friday. Chinese Vice Premier He Lifeng – who led Beijing's negotiating team in Geneva – will also head the team in London, China's foreign ministry announced at the weekend. "The meeting should go very well," Trump said in a post on his Truth Social platform. His press secretary, Karoline Leavitt, told Fox News on Sunday: "We want China and the US to continue moving forward with the agreement that was struck in Geneva." While the government of UK Prime Minister Starmer reiterated that it was not involved in the content of the discussions in any way, a spokesperson said, "We are a nation that champions free trade." UK authorities "have always been clear that a trade war is in nobody's interests, so we welcome these talks," the spokesperson added. The talks in London come just a few days after Trump and Chinese President Xi Jinping finally held their first publicly announced telephone talks since the Republican returned to the White House. Trump said the call, which took place on Thursday, had reached a "very positive conclusion".
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Japan's economy was flat in the first quarter of 2025 from the fourth quarter, improved from an earlier estimate that it had shrank by 0.2%, official data showed on Monday. The second preliminary estimate from the Economic & Social Research Institute of the Cabinet Office showed gross domestic product unchanged in the first quarter from the fourth on a seasonally adjusted basis. The improvement in quarter-on-quarter economic activity was led by private-sector demand, rising by 1.2% in the second preliminary estimate, compared to 0.9% in the first.
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BROKER RATING CHANGES
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UBS raises M&G to 'buy' (neutral) - price target 275 (217) pence
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RBC raises Jet2 price target to 2,200 (2,100) pence - 'outperform'
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COMPANIES - FTSE 100
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WPP announced that Mark Read will step down as chief executive officer after seven years leading the advertising agency. Read will leave the post at the end of the year. He has spent more than 30 years at WPP and took on the role of CEO in early September 2018. The search for a successor is underway. "On behalf of the board, I would like to thank Mark for his contributions not only as CEO but throughout his more than 30 years of leadership and service to the company. During that time Mark has played a central role in transforming the company into a world leader in modern marketing services, with deep AI, data and technology capabilities, global presence and unrivalled creative talent, setting WPP up well for longer-term success," WPP Chair Philip Jansen said. "We are pleased that Mark will continue to lead WPP as CEO until the end of the year, remaining focused on the execution of the company's growth strategy and supporting a smooth transition to his successor, once appointed."
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COMPANIES - FTSE 250
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Frasers Group is among a "number of parties" circling Revolution Beauty, the cosmetics retailer said. Revolution Beauty said there is no certainty that the Sports Direct owner's interest will result in a takeover offer being made. Sky News had reported on Saturday that Frasers approached Revolution Beauty about a potential offer. Revolution Beauty announced the start of its formal sales process last month, and has said it received a takeover approach from another, unnamed third party.
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OTHER COMPANIES
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Alphawave IP agreed to a USD2.4 billion takeover from US semiconductor maker Qualcomm. The cash deal values the London-listed high-speed connectivity solutions firm's shares at USD2.48, around 183 pence, so a 96% premium to its closing price at the end of March. The undisturbed closing price of 94p per share back in March was prior to Qualcomm announcing it was mulling a bid for Alphawave. Alphawave's directors recommended the offer. Qualcomm's bid has the support of just under 35% of Alphawave's shareholders. "Qualcomm's acquisition of Alphawave represents a significant milestone for us and an opportunity for our business to join forces with a respected industry leader and drive value to our customers. By combining our resources and expertise, we will be well-positioned to expand our product offerings, reach a broader customer base, and enhance our technological capabilities. Together, we will unlock new opportunities for growth, drive innovation, and create a leading player in AI compute and connectivity solutions. For our shareholders, the Alphawave board is pleased that Qualcomm's offer provides an opportunity to realise compelling value for their shares," Alphawave CEO Tony Pialis said.
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Security and surveillance systems developer Petards said it has won a GBP300,000 order for automatic number plate recognition systems. The order is from a UK police force customer. "The order is scheduled to be delivered and installed during the current financial year," it added. The deal was one by its QRO Solutions unit and will see Petards supply and install the NASBox roadside ANPR systems.
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Cordel expects to report "a lower than forecast full year revenue result" but noted a recent recovery in "sales momentum". The company, which uses artificial intelligence to supply transport corridor analytics, expects to report revenue in the range of GBP4.7 million and GBP5.0 million for the year to June 30. It would represent growth of up to 12% from GBP4.4 million. CEO John Davis said: "We have made excellent strategic progress in FY25 though are expecting to report a lower than forecast full year revenue result, hence this early update on the likely outcome for FY25. Economic uncertainty, particularly in the USA, has unfortunately led to protracted sales cycles and delayed revenue, which has impacted our normally strong second half revenue. Sales momentum has recently recovered, though the majority of the revenue from new contracts is now expected to be recognized in the next financial year."
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By Eric Cunha, Alliance News news editor
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