24th Jun 2025 07:52
(Alliance News) - London's FTSE 100 is called to open higher, while the dollar and Brent fell as US President Donald Trump announced a ceasefire in the Iran-Israel conflict.
Trump said a ceasefire between Iran and Israel was in force on Tuesday, urging both sides to "not violate it".
The Israeli government has confirmed the ceasefire with Iran, with Prime Minister Benjamin Netanyahu informing his Cabinet that Israel had achieved all its war objectives, according to Netanyahu's office.
Elsewhere, a US Federal Reserve official suggested a possible rate cut next month.
"For Michelle Bowman to float a July rate cut was a flashing signal: the centre of gravity at the Fed is shifting," SPI Asset Management analyst Stephen Innes commented.
On this side of Atlantic, central bankers will also be in focus. Bank of England Governor Andrew is among the policymakers speaking on Tuesday. He speaks to the Lords Economic Affairs Committee in the afternoon. Megan Greene, Dave Ramsden and Sarah Breeden are also in action in other events on Tuesday.
Here is what you need to know at the London market open:
----------
MARKETS
----------
FTSE 100: called up 0.5% at 8,805.74
----------
Hang Seng: up 2.1% at 24,183.98
Nikkei 225: up 1.0% at 38,746.64
S&P/ASX 200: up 1.0% at 8,555.50
----------
DJIA: closed up 374.96 points, 0.9%, at 42,581.78
S&P 500: closed up 1.0% at 6,025.17
Nasdaq Composite: closed up 0.9% at 19,630.98
----------
US 10-year Treasury yield: 4.33% (4.31%)
US 30-year Treasury yield: 4.87% (4.84%)
----------
EUR: higher at USD1.1608 (USD1.1545)
GBP: higher at USD1.3587 (USD1.3501)
USD: lower at JPY145.21 (JPY146.37)
GOLD: lower at USD3,317.54 per ounce (USD3,387.65)
(Brent): lower at USD67.93 a barrel (USD76.39)
(changes since previous London equities close)
----------
ECONOMICS
----------
Tuesday's key economic events still to come:
09:00 BST Germany Ifo business climate
10:30 BST UK Bank of England MPC member Megan Greene speaks
14:35 BST UK Bank of England Deputy Governor Dave Ramsden speaks
15:00 BST UK Bank of England Governor Andrew Bailey speaks
16:50 BST UK Bank of England Deputy Governor Sarah Breeden speaks
15:00 BST US Conference Board consumer confidence
15:00 BST US Richmond Fed manufacturing index
----------
The UK prime minister heads to a Nato summit on Tuesday amid uncertainty surrounding a ceasefire between Israel and Iran announced by US President Donald Trump. Trump said on Monday night he had secured the "complete and total ceasefire" following Iran's retaliation against a US strike on its nuclear facilities. Ahead of the two-day summit in the Netherlands, the prime minister's official spokesman said Keir Starmer would continue to press for a diplomatic solution to the Israel-Iran crisis. The UK lifted advice for its citizens to shelter in place in Qatar after Iran launched a retaliatory attack on the US Al Udeid military base. Qatar also reopened its airspace. Trump called Iran's action "a very weak response" and thanked Tehran "for giving us early notice" to avoid any casualties. He later said in a Truth Social post that Israel and Iran had agreed a "complete and total ceasefire" to be phased in over 24 hours, saying the two countries had approached him "almost simultaneously". He said the ceasefire would be phased-in over 24 hours, giving the two countries six hours to have "wound down and completed their in progress, final missions".
----------
Starmer announced that Britain was committed to spending 5% of its economic output on defence, in line with a pledge set to be announced by Nato at a summit in the Netherlands. In a statement on the eve of the start of the western group's two-day get-together in The Hague, Starmer said his government would aim to hit the pledge by 2035. "We must navigate this era of radical uncertainty with agility, speed and a clear-eyed sense of the national interest to deliver security for working people and keep them safe," Starmer said. "This is an opportunity to deepen our commitment to Nato and drive greater investment in the nation's wider security and resilience," he added. The UK government said it expects Nato's 32 allies to agree to spend at least 3.5% of gross domestic product on core military needs by 2035, and 1.5% on broader security-related items like cybersecurity and infrastructure.
----------
More than 100 Labour MPs have signed their names to a Commons bid to halt the UK government's welfare reforms in their tracks, enough to threaten Keir Starmer's majority. Some 108 MPs' signatures appear on a reasoned amendment declining to give the welfare reform Bill a second reading when it returns to the Commons on July 1. The rebellion, the UK prime minister's largest yet, would be enough to defeat the government's plans if opposition MPs joined the Labour rebels. The amendment, published on Tuesday's order paper, notes there is a "need for the reform of the social security system". But it calls for the Commons to decline to continue scrutinising the Universal Credit & Personal Independence Payment Bill "because the government's own impact assessment estimates that 250,000 people will be pushed into poverty as a result of these provisions, including 50,000 children". There has been no formal consultation with disabled people who will be impacted by the changes, the MPs said. They also point to the fact that an analysis of the impact of the reforms on employment from the Office for Budget Responsibility will not be published until the autumn. Several Labour select committee chairs were among those who put their name to the amendment, including chair of the Treasury committee Meg Hillier, and Debbie Abrahams, chair of the work & pensions select committee.
----------
The world is facing the "most complex" geopolitical situation seen in decades, the head of the World Economic Forum told AFP Tuesday, warning that turmoil was "impacting global growth". "It is the most complex geopolitical and geo-economic backdrop we've seen in decades," WEF President and CEO Borge Brende said ahead of a meeting of the multilateral forum in the northern Chinese city of Tianjin. "If we are not able to revive growth again, we can unfortunately see a decade of lower growth," he warned. Brende said it was still "too early" to predict the impact of swingeing tariffs imposed by the US. It is "too early to say what these tariffs will end with because the negotiations are still ongoing", Brende told AFP ahead of a meeting of the multilateral forum in the northern Chinese city of Tianjin.
----------
BROKER RATING CHANGES
----------
RBC starts On the Beach Group with 'outperform' - price target 340 pence
----------
COMPANIES - FTSE 100
----------
Bunzl said it is trading in line with expectations, as it grapples with an "uncertain" backdrop. The distribution firm continues to expects an operating margin of around 7.0% for the first half of 2025, with an "adjusted operating profit decline also in-line with expectations". In the first half of 2024, its operating margin was 8.0% and adjusted operating profit totalled GBP455.5 million. "Group revenue over the period is expected to be approximately 4% higher than the prior year, at constant exchange rates, and up to 1% higher at actual exchange rates. Group revenue growth at constant exchange rates is expected to be driven by acquisitions, net of disposals, and with broadly flat underlying revenue over the period," Bunzl added. For the full-year, "moderate" revenue growth is expected at constant currency. Its operating margin is to be "moderately below" 8.0%, compared to 8.3% in 2024. "The group's second half operating margin is seasonally higher and expected to benefit from actions taken," Bunzl added. In addition, the company said it has struck a deal to acquire Solupack, a distributor of own brand packaging solutions to the food industry. It has acquired the Brazilian company for BRL106 million, some GBP15 million. Bunzl Chief Executive Officer Frank van Zanten said: "Alongside a macroeconomic backdrop that remains uncertain, the group is trading in-line with our expectations. Actions are underway to improve performance in the group, particularly in our largest business in North America and in Continental Europe, and we anticipate improvement in the second half of the year. I am also pleased to welcome Solupack to the Bunzl family today, our third acquisition of the year, with our pipeline remaining active. The group's compounding growth strategy and resilient business model underpin Bunzl's long-term track record of delivery and the group continues to be well placed to navigate periods of macroeconomic uncertainty given our focus on essential products, the depth of our customer and supplier relationships and our sector and geographic diversification."
----------
Miner Rio Tinto announced an investment of USD1.6 billion to develop the Hope Downs 2 iron ore project in Western Australia's Pilbara region. Half of that sum will be contributed by Rio Tinto. The investment is being made alongside mining company Hancock Prospecting, Rio Tinto added. Rio Tinto Iron Ore Chief Executive Simon Trott said: "Approval of Hope Downs 2 is a key milestone for Rio Tinto, as we invest in the next generation of iron ore mines in the Pilbara. These projects are part of our strategy to continue investing in Australian iron ore and to sustain Pilbara production for decades to come, supporting jobs, local businesses and the state and national economies. The Pilbara has been critical to global steel supply for more than 60 years, and we are committed to ensuring it remains so well into the future." Rio Tinto and Hancock Prospecting are equal partners at the project. A joint-venture between the duo had been established in 2006.
----------
AstraZeneca and Daiichi Sankyo said Datroway has secured US Food & Drug Administration approval for use in adult patients with previously treated advanced EGFR-mutated non-small cell lung cancer. AstraZeneca, a Cambridge, England-based biopharmaceutical company, is collaborating with Tokyo-based Daiichi on the development and commercialisation of Datroway, an antibody-drug conjugate originally discovered by Daiichi. This latest US regulatory approval is the second in less than six months and as part of the collaboration agreement, Daiichi will receive a USD45 million milestone payment from AstraZeneca.
----------
COMPANIES - FTSE 250
----------
Telecom Plus upped its annual payout on the back of "record" profit, and lofty customer number growth. The provider of "subscription-style" household services, including energy, broadband, mobile and insurance, hailed its business model which "makes us largely immune" to changes in tariffs, interest rates and business confidence. "The current financial year represented a strong performance by the group with double-digit percentage customer growth, record profits and a record dividend," it said. The Utility Warehouse operator reported a 5.4% rise in pretax profit to GBP105.9 million in the year to March 31, from GBP100.5 million. Revenue, however, declined 9.9% to GBP1.84 billion from GBP2.04 billion. The revenue fall reflects weaker energy prices during the year, while "increased operational efficiencies" helped lift profit. Distribution expenses fell 11% to GBP45.7 million, while total administrative expenses were 2.2% lower at GBP164.7 million. Customer numbers surged 15% during the year to just under 1.2 million. CEO Stuart Burnett said: "During what seems likely to be a challenging period for the global economy, we are fortunate that our business model makes us largely immune to any changes in trade tariffs, interest rates, economic growth, or business confidence. Indeed, such environments have historically been positive for us, with increasing numbers of people seeking additional income sources and ways to reduce their household bills. By helping households to save time and money on their essential bills, whilst supporting tens of thousands of partners to earn an additional income, we expect to deliver continuing strong growth in customer numbers, profits and returns to shareholders over the years ahead." Telecom Plus upped its final dividend by 21% to 57 pence per share from 47p, bringing the total for the year to 94p, up 13% from 83p. For the new year, it expects total customer growth of around 15% and adjusted pretax profit in the range of GBP132 million to GBP138 million, a rise from GBP126.3 million in the year just ended. Adjusted pretax profit in financial 2025 was 8.1% higher than the previous year.
----------
OTHER COMPANIES
----------
Mears Group expects half-year profit to be ahead of the prior year, on "strong trading". The provider of services to the UK housing sector said it saw "solid growth in its Maintenance-led activities". "As anticipated, Management-led activities have continued to normalise as Asylum related contingent solutions are replaced with long-term residential accommodation. This transition continues to be managed well," Mears added. "Operating margins have continued to strengthen, and profits have once again been underpinned by strong operating cash flows." Mears expects pretax profit for the first half of 2025 to be ahead of the GBP30.8 million reported a year prior. For the full-year it expects results to be "modestly ahead of current market expectations", which it puts at GBP1.06 billion for revenue and GBP50.9 million for adjusted pretax profit.
----------
Saga said it has traded in line with expectations early in its financial year, with all "businesses performing well". Saga, which concluded its financial year at the end of January, said trading to date in the new year has started "on a positive note". The provider of products and services for people over 50 said its Ocean & River Cruise offering "had another strong start to the year", with booked load factors for the first half ahead of the same point 12 months ago. Holidays unit bookings are ahead of the prior year, while its insurance underwriting business continues to trade in line with expectations. "Insurance Broking is trading in line with expectations and the transition to the 20-year partnership with Ageas, remains on track for Q4 2025," Saga added. CEO Mike Hazell said: "I am pleased to report that Saga has started the financial year on a positive note, with all our businesses performing well and in line with expectations. Looking ahead, we are focussed on continuing to grow our Travel and Money businesses, while successfully transitioning to our new simplified Insurance model."
----------
Amazon has said thousands of jobs will be created at new UK warehouses in locations including Hull and Northampton as part of a GBP40 billion investment over the next three years. Prime Minister Keir Starmer hailed the expansion plans as a "major win" for the UK, while Amazon's boss stressed the investment will boost areas outside of London and the south east of England. The Seattle, Washington-based technology company confirmed that some 2,000 jobs will be created for a new fulfilment centre in Hull, set to open this year, and another 2,000 for a site in Northampton, due to open in 2026. It also announced that two new warehouses will be built in the East Midlands, due to open in 2027. Amazon did not confirm the locations of the sites. It is understood they will lead to the recruitment of thousands of additional roles. Fulfilment centres are large warehouses where customer orders can be picked, packed and shipped – some of which use the latest technology including robotics. Amazon – which hires more than 75,000 people in the UK and is one of the country's biggest private sector employers – also confirmed significant expansion plans for its London headquarters. This will form part of the GBP40 billion investment and will see the opening of two new buildings at the corporate office in the Shoreditch area.
----------
By Eric Cunha, Alliance News news editor
Comments and questions to [email protected]
Copyright 2025 Alliance News Ltd. All Rights Reserved.
Related Shares:
On The BeachSagaMearsTelecom PlusRio TintoBunzlAstrazeneca