FTSE 100 Live: New Direct Line boss, London shares climb higher

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Prudential leads FTSE 100 index, Direct Line shares up 2%

Prudential shares have rallied 3% or 27.7p to 1012.5p after new chief executive Anil Wadhwani outlined his growth strategy alongside half-year results.

The reopening of the Hong Kong border meant new business profit jumped 39% to $1.5 billion (£1.2 billion) in the six months, with the Asia and Africa-based insurer focused on delivering 15-20% growth over the five years to 2027.

Pru shares led a strong FTSE 100 index, which rose 33.66 points to 7498.65. Other stocks doing well included Rio Tinto after a gain of 63.5p to 4887.5p and Lloyds Banking Group, which lifted 0.4p to 43.3p.

The FTSE 250 index improved 83.08 points to 18,551.67, with Direct Line Insurance up 2% or 3.45p to 164.2p after the company appointed Aviva UK general insurance boss Adam Winslow as new chief executive.

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Supply of electric vehicles exceeds demand even as Ulez expands, dealership Vertu says

Supply of electric vehicles is comfortably outstripping demand even as ULEZ expands, car dealership Vertu Motors said today.

The dealership chain, with 189 sales and aftersales outlets including a number in the London commuter belt, is set to meet profit targets even despite ending its 0% finance offers.

But when it came to electric vehicles, it said supply had ballooned in a way that did not match demand, causing many manufacturers to cut prices.

“Recent increased supply of new electric vehicles appears to be exceeding retail demand, creating an imbalance in pipeline inventory coming into the key plate change month of September,” it said.

Read more here

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Market snapshot as FTSE 100 climbs higher

The FTSE 100 has built on its gains yesterday, climbing back towards the 7500 mark.

Take a look at our key market data.

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Southend Aiport in talks to bring airlines back after successful summer with easyJet

The owner of Southend today said it in discussions to bring a number of airlines back to the airport after a successful summer with easyJet.

The partnership with easyJet has seen the schedule grow from 3 destinations to 7 with increasing frequency and strong load factors being experienced, Southend owner Esken said. This has encouraged easyJet to add additional routes with Alicante, Amsterdam, Geneva and Paris to operate through the winter this year.

A number of other operators including Ryanair had a base at Southend before abandoning the hub during the coronavirus pandemic.

(Alamy/PA)

/ PA Archive

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Banks drive global dividends to record level

Banks contributed half the world’s dividend growth in the second quarter, according to figures on shareholder payouts by Janus Henderson.

Global dividends rose to a record $568.1 billion (£449.7 billion) in the three months to 30 June, up 4.9% on a headline basis as 88% of companies either increased payouts or held them steady. Excluding one-off special dividends, the underlying increase stood at 6.3%.

Dividends paid by banks rose 19.7% year-on-year to a record $85.3 billion (£67.5 billion), whereas mining payouts fell by a third. HSBC restored its quarterly dividend for the first time since the outset of the pandemic and at a higher level than many had expected.

The UK stock market’s heavy commodities weighting meant UK dividends fell by 12.1%, improving to an underlying rise of 2.9% without special dividends. Eight UK companies in every ten raised payouts or held them steady.

Ben Lofthouse, head of global equity income at Janus Henderson, expects the banking sector to continue supporting dividend growth.

He said: “A weaker economic environment is typically negative for banks, but the positive effect on bank margins from the end of years of ultra-low interest rates is very powerful and is driving dividend payouts.

“The big banks are very tightly regulated and so enter the downturn in a strong capital position.”

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Direct Line appoints Aviva’s Adam Winslow as its new CEO

Direct Line appointed a new permanent CEO today, to replace Penny James, who left the FTSE 250 insurer in January after a profit warning led to it dropping its dividend payout and cancelling part of a share buyback.

Adam Winslow will take up the top job in the first quarter of next year, moving over from Aviva, where he runs the FTSE 100 company’s UK and Ireland general insurance business. He was previously CEO at Global Life at AIG Life and Retirement and is on the board of the Association of British Insurers.

Winslow said: “It’s a privilege to be invited to lead Direct Line Group into the future, particularly given its rich heritage and passion for serving its millions of customers.”

He will be paid an annual salary of £820,000 before bonuses and a 9% pension allowance.

Before Winslow takes up the new post, Jon Greenwood will remain as acting CEO, the Bromley-based company said.

Direct Line’s January profit warning came after a surge in the cost of motor insurance claims due to rising costs of second hand cars and longer repair times. The increased payouts lagged behind the rate at which it could put up premiums. There was also a spike in home insurance payouts after a cold snap in December.

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Nvidia at record high as US shares rally, FTSE 100 seen higher

The FTSE 100 index is poised to build on yesterday’s rise of 1.7% after a strong session on Wall Street and further gains for Asia shares.

The appetite for risk follows a bigger-than-expected decline in the number of US job openings to the lowest level since March 2021, fuelling hopes that the US Federal Reserve will keep interest rates unchanged next month.

A sharp fall in bond yields meant the Nasdaq Composite rose 1.7%, with shares in semiconductor firm Nvidia up 4% at a record close of $487.8. The S&P 500 index rose 1.45% in its best session since early June and the Dow Jones Industrial Average by 0.85%.

The US performances helped boost sentiment in Asia, where the Hang Seng index has posted another session in positive territory amid speculation that China is preparing more initiatives to support the country’s property sector.

The FTSE 100 index, which yesterday rose 126 points as traders caught up with Monday’s strong gains in Europe, is forecast by CMC Markets to add another 28 points at 7493.

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