FTSE 100 dips after markets open: Key data

Just over an hour after markets opened in London, the FTSE 100 is down slightly. Here’s a look at your key market data:

Stelrad feels the heat of inflation

Europe’s largest radiator business today said it was feeling the heat of soaring inflation after it posted a slump in sales.

Newcastle-based Stern said rising consumer prices and interest rates were “supressing both new construction and renovation activities” as like-for-like revenues fell 12.7% to £157 million in the first six months of the year, while hyperinflation in Turkey contributed to a 65% slide in profits in the region.

CEO Trevor Harvey said: “I think consumer behaviour has been affected by the cost of living crisis. There has been a change in sentiment.

“[But] We have a strong track record of trading through previous downturns.”

Sales up at Made in Chelsea star’s jewellery brand

A US launch helped sales boom at Made in Chelsea star Oliver Proudlock’s jewellery brand Serge DeNimes.

Revenue was up by 20% to £2.4 million as retailers like Macy’s and Bloomingdales started stocking its rings, necklaces and bracelets in the US.

The business, which Proudlock started before his reality TV career, expects sales to hit £4 million this year and £6 million in 2024.

He said: “Growth in America has been astronomical. There has been a huge push and we have new stockists on the East and West coasts as well as Canada.”

Proudlock, who attended Eton at the same time as Prince Harry, also hailed the rise of “genderless” fashion as a big boost for his brand.

“Men are increasingly using accessories as a really powerful way to communicate and we are delighted to be at the forefront of that trend,” he said. “That truly genderless feel – where partners can share what they like to wear – has been massive for us. We’re not just a men’s brand and have increasing numbers of female customers.”

Prudential shares at £10 amid weak start for FTSE 100, Plus500 jumps 5%

The FTSE 100 index is 18.48 points lower at 7505.68, led by Rio Tinto and Anglo American after the mining pair fell by more than 1%.

The jitters over China’s property sector meant selling pressure on Asia-focused lender Standard Chartered, which declined 8.6p to 746.6p. Burberry also lost 20p to 2232p and Prudential traded at £10 for the first since November after dropping 1% or 8.5p.

Blue-chip risers included B&M European Value Retail, which lifted 8.8p to 546.6p after Deutsche Bank raised its target price to 680p.

The FTSE 250 index slipped 25.32 points to 18,774.38, although trading app Plus500 jumped 5% or 75p to 1506p after announcing a new share buyback alongside half-year results. CMC Markets also rallied 4.8p to 133.4p.

YouGov considers US listing

AIM-traded market research business YouGov is mulling a US stock market listing, the company’s co-founder Stephan Shakespeare has told the Financial Times.

The deliberations follow last month’s transformational acquisition of the Germany-based GfK consumer panel business.

YouGov could move its primary listing to the United States or establish a secondary listing in the market, according to the FT’s report.

The company, which Shakespeare ran for two decades until this year’s switch to non-executive chair, has a stock market value of £1 billion.

Plus500 profits plunge, but firm launches another $60m byuyback

Profits plunged by 44% at trading app Plus500 as the boom in day trading appears to have come to an end, but the firm still returned an extra $60 million to shareholders with a new buyback.

Revenue slipped to $368.5 million for the first half of the year, down by 28%, as customer numbers fell after holding close to record highs last year.

But with a decline having been expected, Plus500 was able to still buy back $60 million worth of shares.

CEO David Zruia said: “Our increasingly diversified revenue streams, broadened product offering, deep customer relationships and the structural growth drivers in our end markets, mean we are able to deliver both growth and attractive shareholder returns.”

The buyback means Plus500 has now returned almost $350 million to shareholders this year, which Zruia said “demonstrates the strength of our balance sheet and the Board’s continued confidence in the group’s prospects”.

Inflation set for big fall, earnings figures also due this week

A big week for the UK economy includes Wednesday’s July inflation reading, which is due for release a day after updates on wage growth and the rate of unemployment.

The headline inflation rate is set for another big fall from 7.9% to 6.8%, the lowest figure since February 2022 but still the highest among the G7 countries.

Core prices are likely to be much stickier at 6.8%, which compares with 6.9% in June.

In the labour market, Bank of America expects average weekly earnings to rise by as much as 0.5% to 7.4% year-on-year with the unemployment rate steady at 4%

The releases will be key to determining the Bank of England’s next policy move in September and the recent downward trend for mortgage rates.

Country Garden shares down 17%, FTSE 100 seen lower

The Hang Seng index in Hong Kong is down more than 2%, with leading property firm Country Garden off another 17% at a fresh record low of $0.81 a share.

The latest selling comes after the debt-laden company suspended the trading of 11 onshore bonds, having last week warned that it could report a loss of up to £6 billion for the first six months of this year.

Concern over the potential for defaults in the property sector and China’s broader economic weakness has led to a recent wave of selling for stock markets in the region.

The Shanghai Composite today stood more than 0.5% lower, while the Nasdaq 225 has fallen by more than 1% in Tokyo. The weaker sentiment means another poor session for European markets after the FTSE 100 index closed 1.2% lower on Friday.

CMC Markets expects the top flight to open another 16 points lower at 7508 this morning.

SoftBank in talks to buy Vision Fund’s 25% stake in Arm: Reuters

Japanese investment bank SoftBank is in talks to acquire the 25% stake in British chip designer Arm that it doesn’t already own ahead of a planned IPO, according to reports by the Reuters news agency.

SoftBank owns a 75% stake in Arm, with the remaining share owned by investors in its Vision fund. The sale is set to lead to a windfall for the fund’s major investors including Saudi Arabia’s Public Investment Fund and Abu Dhabi’s Mubadala.

SoftBank is set to float Britain’s most valuable tech business on the Nasdaq stock exchange as soon as next month, attracting a valuation of up to $70 billion.

Recap: Friday’s top stories

Good morning. Here’s a summary of our top stories from Friday: