10th Feb 2025 07:46
(Alliance News) - London's FTSE 100 is called to open slightly higher at the start of the week, despite US tariff worries coming to the fore again.
The US will move to impose 25% tariffs on steel and aluminium imports on Monday, Donald Trump said on Sunday, the latest in a slew of trade levies the US leader has announced.
Trump made the announcement on board Air Force One en route to attend the Super Bowl American football championship game in New Orleans, according to a White House pool report.
Trump on Friday said that he would announce further "reciprocal" tariffs.
Asked about tariffs on products from Japan as he met Prime Minister Shigeru Ishiba at the White House, Trump answered in far-reaching terms, speaking of "reciprocal trade, so that we're treated evenly with other countries. We don't want any more, any less."
SPI Asset Management analyst Stephen Innes commented: "This morning's subtle bounce in major US and EU equity futures suggests that traders still view Trump as the 'deal maker in chief'. The prevailing market narrative? Tariff threats are just another bargaining chip. Investors are betting that Trump, ever-conscious of the S&P 500 as his economic scorecard, won't let trade tensions spiral out of control. For now, the 'buy-the-dip' mentality remains intact—but that could shift quickly if markets start to believe these tariff moves are more than just negotiation tactics."
Here is what you need to know at the London market open:
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MARKETS
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FTSE 100: called up 0.1% at 8,709.63
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Hang Seng: up 1.8% at 21,515.81
Nikkei 225: up slightly at 38,801.17
S&P/ASX 200: down 0.3% at 8,482.80
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DJIA: closed down 444.23 points, 1.0%, at 44,303.40
S&P 500: closed down 1.0% at 6,025.99
Nasdaq Composite: closed down 1.4% at 19,523.40
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EUR: lower at USD1.0311 (USD1.0333)
GBP: higher at USD1.2405 (USD1.2400)
USD: higher at JPY152.03 (JPY151.24)
GOLD: higher at USD2,894.23 per ounce (USD2,859.53)
(Brent): higher at USD75.15 a barrel (USD74.59)
(changes since previous London equities close)
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ECONOMICS
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Monday's key economic events still to come:
16:00 GMT US consumer inflation expectations
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The EU will retaliate by replicating any tariffs imposed on it by the US, the French foreign minister said on Monday, warning Washington against a trade war. "There is no hesitation when it comes to defending our interests," Jean-Noel Barrot said in an interview with TF1 after US President Donald Trump announced on Sunday that Washington will move this week to impose 25% tariffs on steel and aluminium products. Asked whether France and the EU would retaliate against the measures announced by Trump, Barrot said: "Of course. It's not a surprise. This is already what Donald Trump did in 2018" (during his first term as president). At that time we replicated. So we will replicate again this time," he said. Asked what measures of retaliation would be agreed, Barrot replied that it was up to the European commission to decide what sectors would be targeted. "No one has an interest in entering into a trade war with the EU," he warned. The tariffs on steel and aluminium imports were the latest in a slew of trade levies the US leader has announced that have raised fears of a global trade war. French President Emmanuel Macron told CNN that the EU should not be a "top priority" for the US after Trump's repeated threats to target the bloc. "Is the EU your first problem? No, I don't think so. Your first problem is China, so you should focus on the first problem," he said, adding that the EU must be ready to react to US actions.
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UK firms are slowing investment until they see more momentum in the economy, according to a report. Research among recruitment agencies suggested that demand for staff as well as placements into jobs had fallen this year. The Recruitment & Employment Confederation and KPMG said recruitment consultants reported redundancies at companies they deal with, adding that the higher cost of employing staff because of government policies had continued to weigh on hiring activity.
Placements into temporary jobs were especially hard hit, falling at the fastest rate since June 2020, the report said. Vacancies have fallen, while staff availability continued to rise, according to recruiters. Jon Holt, group chief executive at KPMG, said: "Businesses continue to hold back on recruitment, leading to permanent and temporary placements falling steeply again in January. "While firms are still willing to pay for top talent, increased staff availability weighed on pay growth." Neil Carberry, REC chief executive, said: "Businesses entered the year uncertain on the growth path, and that has driven a wait and see approach to hiring. "REC members report that clients have plans and are hopeful for the year ahead, but firms are slowing investment until they see more momentum in the economy.
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BROKER RATING CHANGES
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Goldman Sachs cuts IAG to 'neutral' (buy) - price target 375 (300) pence
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JPMorgan raises Spectris to 'overweight' (neutral) - price target 3,450 (2,650) pence
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COMPANIES - FTSE 100
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Activist investor Elliott Management has built up a stake in oil major BP, the Financial Times reported, citing two people with knowledge of the situation. The FT said the exact size of Elliott's stake "could not be learned". BP reports annual results on Tuesday. The stock has fallen 9.5% over the past 12 months, underperforming peer Shell, which has risen 5.8% over that stretch.
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COMPANIES - FTSE 250
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Johnson Matthey said it has named a new chief financial officer and has kicked off a search for its next chair, with Patrick Thomas not seeking re-election at July's annual general meeting. The speciality chemicals said Richard Pike has been named its next CFO, replacing Stephen Oxley. Pike joins the board at the start of April. Oxley stays as CFO until March 31. Pike joins from packaging firm DS Smith where he was finance director. He has previously been CFO at waste management firm Biffa. In addition, Johnson Matthey said that after a seven-year stint as chair, Thomas has informed the board that he does not plan to seek re-election later this year. He will step down from the post following the July 17 AGM. The firm added: "Johnson Matthey's nomination committee has commenced a search for Patrick's successor as chair and a further update will be provided in due course."
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OTHER COMPANIES
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Kosmos Energy said that first liquified natural gas output has been achieved at the Greater Tortue Ahmeyim, located just off Mauritania and Senegal. At the end of last year, gas from the first phase of GTA began to flow from wells to a floating production storage & offloading vessel. Gas is being processed at the vessel to remove any impurities. "Gas has now been delivered to the floating LNG vessel and liquefaction has commenced. The liquefaction of gas into LNG is when Kosmos starts to recognize gas entitlement production from the project in its quarterly statements," Kosmos added. BP operates the asset. Kosmos Chair & Chief Executive Officer Andrew Inglis said: "First LNG is another major milestone for Kosmos, the GTA partnership and the governments of Mauritania and Senegal. We are looking forward to the accelerated ramp-up of LNG production and the first LNG cargo lifting during the first quarter." Kosmos owns around 27% of the asset.
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Filtronic said it has landed a "significant new contract win" with SpaceX, worth GBP16.8 million. The designer and manufacturer of products for the aerospace, defence, telecoms infrastructure, and low earth orbit space market said the deal will be fulfilled in the current financial year, which runs to May, and in the next. "Consequently, the board is now confident the business will exceed current market expectations for revenue and profit in both FY2025 and FY2026," the firm added. CEO Nat Edington said: "We are delighted to have secured this substantial order, which underscores Filtronic's reputation for delivering high-performance RF solutions to our market leading customer. This contract, alongside our growing momentum in strategic markets, provides us with increased confidence in our ability to exceed our growth targets for FY2025 and FY2026."
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All Things Considered said it expects to report revenue doubled last year, and the music talent management, live booking and merchandising firm is sizing up a move to the London Stock Exchange. ATC, currently Aquis-listed, expects revenue of around GBP50 million for 2024, up markedly from GBP24.1 million. It expects adjusted operating earnings before interest, tax, depreciation and amortisation of GBP1.5 million, swinging from a loss of GBP460,000. "ATC continues to have its artist representation at the core of its business. As the broader music sector pivots towards empowering artists to take control of their own rights, ATC is perfectly positioned to offer its artists a fully integrated service offering in partnership with artists at all stages of their career," ATC said. "FY24 performance was underpinned by growth in all group service divisions, demonstrating the broad appeal for the group's innovative, full-service talent offering, which enables closer collaboration with artist clients across multiple services." The firm said "positive trading momentum has continued into the beginning of the new financial year". It added: "In light of the growth of the group and increasing opportunities available, as well as in response to existing and potential shareholders' requests to improve share liquidity, the board of ATC is considering moving the public quotation for trading in its shares to a market operated by the London Stock Exchange to support this." In addition, it announced it has acquired the remaining stake in Driift, a provider of end-to-end livestreaming capability. Driift had been an "associated company", with ATC owning just under a third. "ATC has agreed terms with the remaining shareholders in Driift to acquire 100% of Driift Holdings," it said.
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By Eric Cunha, Alliance News news editor
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