30th May 2025 07:50
(Alliance News) - London's FTSE 100 was called higher on Friday, as the UK government prepares to sell its remaining stake in NatWest and a US appeals court allows the temporary continuation of President Donald Trump's global trade levies.
"It would appear that 'turnaround Thursday' is now a thing, at least given the price action seen yesterday," commented Pepperstone analyst Michael Brown. "The day kicked off with what looked like a good, old-fashioned, risk-on vibe across the board, as participants cheered solid earnings from Nvidia, and reacted positively to the Court of International Trade’s decision to place a block on some of Trump’s tariff measures.
"That, though, rather fizzled out as trade went on, particularly as the dust settled on that tariff-related court ruling."
Wall Street ended in the green on Thursday, though with fairly muted gains as investor uncertainty pervades. The gold price continued to decline, too, as investors look elsewhere for safe-haven returns.
In early corporate news, M&G partners with Japanese life insurer Dai-ichi Life on asset management, while Aptamer wins a second development deal with Unilever for an undisclosed six-figure sum.
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 8,740.65
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Hang Seng: down 1.6% at 23,208.69
Nikkei 225: closed down 0.9% at 38,099.03
S&P/ASX 200: closed up 0.3% at 8,434.70
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DJIA: closed up 117.03 points, or 0.3%, at 42,215.73
S&P 500: closed up 23.62 points, or 0.4%, at 5,912.17
Nasdaq Composite: closed up 74.93 points, or 0.4%, at 19,175.87
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US 10-year Treasury yield: 4.43% (4.43%)
US 30-year Treasury yield: 4.92% (4.93%)
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EUR: down at USD1.1342 (USD1.1363)
GBP: down at USD1.3473 (USD1.3488)
USD: down at JPY143.94 (JPY144.22)
Gold: down at USD3,290.92 per ounce (USD3,316.41)
(Brent): down at USD63.05 a barrel (USD63.41)
(changes since previous London equities close)
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ECONOMICS
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Friday's key economic events still to come:
09:00 BST eurozone money supply
13:00 BST Germany CPI
13:30 BST US trade balance
13:30 BST US wholesale inventories
13:30 BST US personal consumption expenditures
15:00 BST US Michigan consumer sentiment index
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The governor of the Bank of England has welcomed the UK government's efforts to forge closer ties with the EU, as he said that officials should work to "minimise" the effects of Brexit on trade. Speaking in Dublin on Thursday, Andrew Bailey said in relation to Brexit "that we should do all we can to minimise negative effects on trade". With reference to the Windsor Framework, which he described as a "welcome step forward", Bailey said: "So too are the initiatives of the current UK government to rebuild trade between the UK and EU." The Windsor Framework, agreed between the UK and the EU in 2023, amended the Northern Ireland Protocol and governs post-Brexit trading arrangements in the region.
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Business confidence in Scotland rose to higher than the UK national average in May, at 52%. Overall UK business confidence rose 11 points in May to 50% – the highest level in nine months. Confidence in Scotland rose 12 points during May to 52%, according to the Bank of Scotland's business barometer, compared to 40% in April. While companies in Scotland reported lower confidence in their own business prospects month-on-month, down four points at 57%, optimism in the economy rose 29 points to 48%, which analysts said "gives a headline confidence reading of 52%".
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The US Federal Reserve could be in a position to cut rates if President Donald Trump's tariffs are reduced, a senior US central bank official said. Speaking in Michigan on Thursday, Chicago Fed President Austan Goolsbee said that, if the tariffs imposed by the White House on April 2 were removed, the Fed could find itself in a strong economic situation, with a low unemployment rate and falling inflation.
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The US and 10 allies on Thursday said the military cooperation between Russia and North Korea flagrantly violates UN sanctions and has helped Moscow increase its missile strikes on Ukrainian cities. They made the accusations in their first report since joining forces to monitor sanctions against North Korea after Russia vetoed a resolution in March 2024 to continue the monitoring by a UN Security Council panel of experts. It had been issuing reports of Pyongyang's sanctions violations since 2010. The 29-page report produced by the Multilateral Sanctions Monitoring Team — comprised of the US, Australia, Canada, France, Germany, Italy, Japan, Netherlands, New Zealand, South Korea and the UK — said the evidence it gathered demonstrates that North Korea and Russia have engaged in "myriad unlawful activities" explicitly prohibited by UN sanctions resolutions.
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BROKER RATING CHANGES
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Exane BNP raises Hiscox to 'outperform' - price target 1,400 pence
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Berenberg reinitiates Beazley with 'buy' - price target 1,150 pence
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Barclays cuts Workspace Group price target to 525 (630) pence - 'overweight'
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COMPANIES - FTSE 100
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M&G enters a new long-term strategic partnership with Japanese life insurer Dai-ichi Life on asset management and life insurance. M&G will become Dai-ichi Life's preferred asset management partner in Europe, with the goal of delivering "substantial" new business flows for both companies. The partnership is expected to generate least USD6 billion in new business flows into funds managed by M&G over the next five years, and at least USD2 billion in new business flows for Dai-ichi Life over five years. The deal will accelerate M&G's expansion in European private markets, while also opening new potential sources of business flows in Japan and across Asia, M&G says. M&G expects the partnership to support growth in adjusted operating profit, noting that its performance in the year to date has been broadly in line with expectations, against a "volatile" market environment. Dai-ichi also intends to acquire around a 15% stake in M&G, which upon completion would give Dai-ichi the right to appoint a director to the board of M&G.
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National Grid completes the sale of its US onshore renewables business, National Grid Renewables, to Toronto-based Brookfield Asset Management and its institutional partners, including Brookfield Renewable Partners. The terms of the deal had implied an enterprise value of USD1.74 billion. National Grid noted at the time of the sale agreement that its renewables unit "develops, constructs, owns, and operates utility-scale, solar, onshore wind and battery storage assets in the US", with 1.8 gigawatts in operation and 1.3 GW under construction.
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The UK government is planning the sale of its final publicly-owned share in NatWest on Friday, reports Sky News, with a public statement expected either later on Friday or on Monday morning. Sky News says its sources cautioned that the timings were still subject to change. This final disposal of the Treasury's remaining 0.1% stake comes nearly 17 years after the bank's bailout, which saw the Treasury at one point hold more than 80% of NatWest's share capital. Total proceeds from NatWest since 2008 are expected to reach GBP35.3 billion for the Treasury - a loss of just over GBP10 billion against the GBP45.5 billion paid into the bank by British taxpayers to prevent its collapse.
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COMPANIES - FTSE 250
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Drax reports that its cash offer for the takeover of Harmony Energy Income Trust has now lapsed. The offer was conditional on Drax's court meeting being held on or before the mini long stop date on May 29, or any later date agreed between the two companies, but so no such later date was agreed. Harmony in March had accepted an 88.0 pence per share offer from Drax subsidiary Drax BESS, which had valued Harmony at GBP199.9 million. Instead, Harmony last week on Wednesday recommended a takeover by Foresight Group, which made a bid that valued Harmony at 92.4 pence per share, or GBP209.9 million. Upon receipt of Foresight's offer, and Drax not increasing its bid in response, Harmony had withdrawn its recommendation for Drax's offer in favour of Foresight's offer.
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OTHER COMPANIES
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Aptamer signs a second Optimer discovery and development programme with consumer goods firm Unilever, under which Aptamer will develop a novel panel of Optimer binders targeting an additional biological pathway association with body odour formation. This will potentially provide Unilever with a second strategy to prevent the formation of body malodour. The deal is structured on a fee-for-service basis, with Aptamer receiving an undisclosed six-figure sum for the development work. The programme furthers work done during the initial programme, which had focused on inhibiting a key bacterial enzyme involved in the production of body odour. Optimers from the first programme have passed internal validation and lab-based testing, with on-person performance trials expected in 2025.
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Old Mutual late Thursday said its Africa Regions markets experienced a "mixed macro performance" in the first quarter of the year, as it noted the impact of tariffs, donor funding, inflationary pressures and currency volatility. The Anglo-South African financial services firm said gross written premiums grew 7.3% in the first quarter of 2025 to ZAR4.45 billion from ZAR6.94 billion a year prior. Driving this advance were fee increases in Old Mutual Insure, especially in the Specialty business. This segment reported 12% growth in gross written premiums, said Old Mutual, noting that its underwriting margin was "well above" the upper end of its 4% to 6% target range.
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By Emily Parsons, Alliance News reporter
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Related Shares:
HiscoxBeazleyWorkspaceM&GNational GridDraxHarmony EnergyOld Mutual Lim.Aptamer GroupUnileverNatwestForesight Group Holdings