12th Mar 2025 07:55
(Alliance News) - London's FTSE 100 is called to open higher, shaking off mixed trade in Asia and another decline in New York.
The Dow lost over 1% in New York, while over in Sydney, the S&P/ASX 200 now sits almost 10% below its year-to-date closing high.
"American and Canadian officials have spent the last few hours imposing tariffs on each other—only to roll them back —adding to the absurdity of the tariff situation. The problem is that this tariff charade has real-time consequences and that's weighing on investor sentiment and pressuring market valuations," Swissquote analyst Ipek Ozkardeskaya commented.
The EU has announced it will respond to US tariffs on steel and aluminium imports by reintroducing tariffs on US products including whiskey, motorcycles, peanut butter and boats starting in April.
The European Commission said in a memo that the countermeasures aim to "protect European businesses, workers and consumers" from the impact of US tariffs of up to 25% on imports of steel, aluminium and some products containing the metals.
According to the Commission, the new US tariffs will affect EU exports worth EUR26 billion, roughly 5% of the EU's total goods exports to the US, resulting "in US importers having to pay up to EUR6 billion in additional import tariffs."
In early UK corporate news, Legal & General announced a buyback, 4imprint a special dividend, and Hill & Smith said its US offering has impressed.
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 0.3% at 8,517.19
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Hang Seng: down 1.4% at 23,442.34
Nikkei 225: up 0.1% at 36,819.09
S&P/ASX 200: down 1.3% at 7,786.20
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DJIA: closed down 478.23 points, 1.1%, at 41,433.48
S&P 500: closed down 0.8% at 5,572.07
Nasdaq Composite: closed down 0.2% at 17,436.10
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EUR: lower at USD1.0897 (USD1.0924)
GBP: lower at USD1.2927 (USD1.2943)
USD: higher at JPY148.42 (JPY147.45)
GOLD: lower at USD2,912.71 per ounce (USD2,916.72)
OIL (Brent): flat at USD69.72 a barrel (USD69.91)
(changes since previous London equities close)
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ECONOMICS
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Wednesday's key economic events still to come:
12:30 GMT US CPI
14:30 GMT US EIA crude oil stocks
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The UK business secretary has said Donald Trump's decision to impose global tariffs on steel and aluminium is "disappointing" and "all options" are on the table to respond in the national interest. Britain has resisted imposing immediate retaliatory action against the move, while the EU has already announced it will introduce counter-measures on American goods. UK industries are braced for the impact of the tariffs, which came into effect at midnight in the US, around 4am GMT, and raise a flat duty on steel and aluminium entering America to 25%. Jonathan Reynolds said: "It's disappointing the US has today imposed global tariffs on steel and aluminium. We are focused on a pragmatic approach and are rapidly negotiating a wider economic agreement with the US to eliminate additional tariffs and to benefit UK businesses and our economy." Reynolds added: "Meanwhile we remain resolute in our support for UK industry. This government is working with affected companies today, and I back industry's application to the Trade Remedies Authority to investigate what further steps might be necessary to protect UK producers. I will continue to engage closely and productively with the US to press the case for UK business interests. We will keep all options on the table and won't hesitate to respond in the national interest."
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UK Prime Minister Keir Starmer on Tuesday "warmly welcomed" an agreement between the US and Ukraine on a proposed ceasefire with Russia, calling it a "remarkable breakthrough". "I warmly welcome the agreement... and congratulate President Trump and President Zelensky for this remarkable breakthrough. Russia must now agree to a ceasefire and an end to the fighting too," Starmer said in a statement released by his Downing Street office. Just over 10 days after their disastrous White House meeting, the US and Ukraine announced on Tuesday the immediate resumption of US military and intelligence aid and a Ukrainian agreement to a 30-day ceasefire - if Russia is on board. Ukrainian President Volodymyr Zelensky, who was not at the talks, said on X that the US proposal was taking "an even bigger first step-a 30-day full interim ceasefire, not only stopping missile, drone, and bomb attacks, not only in the Black Sea, but also along the entire front line." US Secretary of State Marco Rubio said in Jeddah that his government would now present the offer to the Russians. "The ball is now in their court," Rubio said.
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The US House of Representatives approved a stopgap plan Tuesday to avert a government shutdown that would pile more pain on the economic chaos marring President Donald Trump's early weeks in office. The Republican-led chamber agreed in a largely party-line vote to keep the government funded through September 30 – giving Trump the summer months to steer his agenda of tax cuts, mass deportations and boosted energy production through Congress. The drama now moves to the Republican-led Senate, which needs to provide its own rubber stamp before Friday night's midnight shutdown deadline. But the bill needs Democratic votes and is on a knife edge. "Now it's decision time for Senate Democrats: cast a vote to keep the government open or be responsible for shutting it down," said House Speaker Mike Johnson, laying down the gauntlet for the upper chamber minority.
Passing the first hurdle marks a big win for Johnson, who had to sell the package to backbenchers sceptical of stopgaps – known as continuing resolutions – which mostly freeze spending rather than making cuts. The threat of a weekend shutdown comes with Wall Street reeling from Trump's trade war and radical cuts to federal spending that have seen tens of thousands of layoffs.
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BROKER RATING CHANGES
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Barclays cuts IAG to 'underweight' (overweight) - price target 250 (420) pence
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UBS cuts Smith & Nephew to 'neutral' (buy) - price target 1,250 pence
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COMPANIES - FTSE 100
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Legal & General lifted its dividend and announced a GBP500 million share buyback, as it toasted a year of "significant strategic progress". The provider of life insurance, pensions, retirement and investment services said it is seeing "positive commercial momentum". It achieved a pretax profit of GBP542 million in 2024, jumping from GBP195 million in 2023. Core operating profit improved 5.6% to GBP1.62 billion from GBP1.53 billion. In Institutional Retirement, operating profit rose 7.5% to GBP1.11 billion from GBP1.03 billion. In its Asset Management arm, assets under management rose 3.2% over the course of 2024 to GBP1.135 trillion. Net outflows eased to GBP48.5 billion in 2024 from GBP52.0 billion in 2023. Retail operating profit rose 12% to GBP504 million from GBP449 million. Chief Executive Officer Antonio Simoes said: "2024 has been a year of significant strategic progress and strong financial performance. We delivered 6% growth in our core operating profit and core EPS, alongside excellent new business volumes, while investing for the future. We are seeing positive commercial momentum as we execute our strategy with rigour and pace. By sharpening our focus and simplifying our portfolio - through the sale of Cala and US Protection - alongside our strategic partnership with Meiji Yasuda and our investment in Taurus, we are strengthening our ability to generate sustainable growth in our core businesses: Institutional Retirement, Asset Management and UK Retail." L&G upped its final dividend by 5.0% to 15.36 pence, from 14.63p. Its total dividend amounts to 21.36p, up 5.0%. "In 2024, we completed the announced buyback of GBP200 million and today we announce a buyback of GBP500 million. The increase compared to 2024 reflects more capital efficient UK PRT written in 2024 and a return of the capital release from the sale of Cala," L&G added.
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COMPANIES - FTSE 250
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4imprint reported improved annual earnings, announced a special dividend and named a new finance chief. The direct marketer and distributor of promotional merchandise said pretax profit in the year to December 28 rose 10% to USD154.4 million from USD140.7 million. Revenue rose 3.1% to USD1.37 billion from USD1.33 billion. "The group delivered a strong financial performance in 2024, continuing to outperform the promotional products market as a whole and thereby taking further market share," Chair Paul Moody said. "In the first two months of 2025 revenue at the order intake level was slightly down compared to the same period in 2024, reflecting continued uncertainty in the market. It is possible that market conditions, including potential tariff impacts, may continue to influence demand in 2025. From our experience, however, as business sentiment improves, demand for promotional products increases as does our ability to gain market share." Moody added: "Despite a challenging near-term environment, our view of the prospects of the business remains unchanged. The board is confident in the group's strategy, competitive position and growth opportunity." 4imprint lifted its final dividend by 6.7% to 160 cents per share from 150 cents, taking its total regular dividend 12% higher to 240.0 cents per share from 215.0 cents. In addition, it proposed a 250.0 cents per share special dividend. It did not pay a special dividend in the prior financial year. 4imprint said Michelle Brukwicki will be appointed as CFO from May 1. David Seekings steps down on the same day but will remain available to the firm until June 30 to ensure a smooth transition.
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Infrastructure firm Hill & Smith hailed a "record set of results", helped by a strong showing in the US. Pretax profit in 2024 rose 12% to GBP104.5 million from GBP93.2 million, on revenue that climbed 3.0% to GBP855.1 million from GBP829.8 million. "Hill & Smith has delivered another record set of results, underpinned by the excellent performance in our US businesses, which continue to benefit from strong demand for our infrastructure solutions. We have continued to actively manage our portfolio with four complementary acquisitions, and the successful divestment of two of our non core, loss making businesses at the beginning of 2025 further improves the quality of the portfolio," Chief Executive Officer Rutger Helbing said. "I am excited about the potential for the group going forward as we continue to build on the strong momentum and we expect another year of good progress in 2025." North America revenue alone rose 9.8% to USD507.8 million, though UK revenue declined 5.4% to GBP302.1 million. Hill & Smith said: "As expected, our UK businesses delivered a resilient performance against a more challenging market backdrop, with subdued demand from certain public sector customers, particularly in the period leading up to the general election." Hill & Smith boosted its final dividend by 16% to 32.5p per share from 28.0p. Its total dividend was 49.0p, up 14% from 43.0p. The firm also announced a new "medium term financial framework", earmarking annual organic revenue growth between 5% and 7%, and total growth of 10%.
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OTHER COMPANIES
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Applied Nutrition said it has strengthened its partnership with UK health and wellness retailer Holland & Barrett. The retailer will increase distribution of currently listed Applied Nutrition products, and will take on other offerings in "new and existing categories", the sports nutrition brands company said. Applied added: "Alongside this, the JBP will provide Holland & Barrett early access to new product development, allowing them to take new products to market quickly. The first order under the new JBP was received this month and included the new Coleen Rooney range, which will be available in 500 stores. This agreement has the potential to increase the revenue contribution from one of the group's largest customers threefold when comparing FY24 to FY26 spend." Over in the US, meanwhile, it has agreed three new listing with retailers GNC Corporate, Hy-vee and H-E-B.
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Cake Box has struck a deal to acquire Asian sweets producer Ambala Foods for up to GBP22 million. The cream cakes maker will fork out GBP16 million for Ambala, and GBP6 million for a manufacturing facility located in Welwyn Garden City. To part fund the deal, Cake Box proposed a placing of 3.9 million shares at 180 pence each, raising GBP7.0 million. The rest of the deal will be funded through a new GBP15.2 million term loan facility and existing cash resources. "Ambala currently operates 22 stores, with 19 owned stores and three franchised stores and has been family-run since inception," Cake Box said. "Ambala is a well-established brand within UK Asian communities and the acquisition will substantially broaden the group's product range and offering in appropriate stores.
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Cell engineering technology company MaxCyte said its annual loss widened amid higher costs and falling revenue, but it remains optimistic about 2025. Its net loss stretched to USD41.1 million in 2024 from USD37.9 million a year prior. The diluted net loss per share was USD0.39, widening from USD0.37. Revenue fell 6.4% to USD38.6 million from USD41.3 million and the cost of goods sold increased 50% to USD7.1 million from USD4.7 million. Chief Executive Officer Maher Masoud said: "We signed a record six [strategic platform licences] in 2024 and continue to see momentum in the SPL pipeline with the addition of TG Therapeutics early in 2025. We also implemented a more disciplined capital and operational approach at MaxCyte, which has already enabled new strategic initiatives, and a more efficient and streamlined business, underpinning our commitment to long-term value creation for our shareholders." Looking ahead, MaxCyte said it expects to grow core revenue between 8% to 15% in 2025. "In 2025, we will continue to drive strong commercial execution, support the progression of SPL programs through the clinic, and make disciplined investments to position MaxCyte as a premier cell engineering solutions provider, including the integration and growth of SeQure Dx," CEO Masoud added.
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By Eric Cunha, Alliance News news editor
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International AirlinesSmith & NephewLegal & General4ImprintHill & SmithApplied NutriCake Box Holdi.MaxCyte