FTSE 100 Live: Blow for City as WE Soda cancels IPO; Fed rates call; FTSE closes at 7,602.74

FTSE 100 live
FTSE 100 live
Evening Standard
City Staff14 June 2023

A return to growth for the UK economy in April was today offset by caution in the recruitment sector after staffing firm Robert Walters warned on profits.

The latest figures from the Office for National Statistics showed UK GDP rose by 0.2% in the month, a performance in line with expectations after a decline in March.

Eyes will be on the US later this evening, when the Federal Reserve makes its latest interest rate decision. It is expected to pause its cycle of rate hikes, after inflation fell to 4% in May.

Live updates

14 June 2023

Key market data after slight gains for FTSE

Take a look at the key market data as shares ticked slightly upwards, while gilt yields receded slightly from the highs reached yesterday.

14 June 2023

FTSE closes at 7,602.74

The FTSE 100 closed slightly up at 7,602.74, with investors cautiously optimistic ahead of the Federal Reserve’s interest rates decision.

Mining, manufacturing and construction made up most of the risers board, with Smith and Nephew the biggest gainer. On the other hand, Ladbrokes Coral owner Entain was the biggest faller after offering shares at a 6.9% discount in order to buy olish bookmaker STS.

Gilt yields, meanwhile, came down slightly from the 15-year highs reached yesterday, but were still higher than on any other day since 2008.

14 June 2023

Shock as WE Soda cancels London IPO

The desirability of London as a place to list was thrown into question again, as soda ash company WE Soda cancelled plans for an IPO that was meant to revive the City’s fortunes.

Alasdair Warren, CEO of WE Soda, blamed “extreme investor caution in London”.

He said: “Since our intention to float announcement some weeks ago, we had been encouraged by the breadth of investor engagement globally and the subsequent interest from prospective investors in our IPO. WE Soda is the largest and fastest growing producer of natural soda ash and one of the lowest cost producers of soda ash in the world. We are a leader within our industry, not only in terms of scale, but also in terms of innovation and sustainability.

14 June 2023

US shares up slightly

Shares on Wall Street were up slightly after the opening bell, as markets await the federal Reserve’s latest interest rates decision.

The S&P 500 is up 0.3% to 4,381 with hospital operator Universal Health Services the biggest riser.

The Fed is widely expected to pause its cycle of rate hikes, having received positive news on inflation this week.

Click through the graps to see all the key market data.

14 June 2023

Pound highest since April 2022

The pound is at a 14-month high, as investors sell dollars in anticipation of the US Federal Reserve pausing its cycle of rate hikes today.

The dollar fell against all major currencies, but the decline was most drastic against the pound, which now buys $1.269. That is the highest value for Sterling since April 2022.

A pound buys €1.170.

14 June 2023

EU says Google is abusing its position as it calls for break-up

The EU competition regulator has accused Google of abusing its position in the online advertising market, calling for the break-up of its ad businesses.

The bloc’s competition regulator has said the tech giant should sell off its ad purchasing arms, Google Ads and DV 360, in order to reduce the conflict of interest they have with its online ad sales and auction arms, AdX and DFP.

A break-up of its ad businesses could come as a huge blow to Google, with its advertising empire worth as much as 80% of its annual turnover. The EU can impose a fine of up to 10% of Google annual worldwide turnover if it judges that the firm has breached competition law.

The Competition Commission said Google was favouring AdX over rivals in order to make it the most attractive ad exchange, which it considered to be an abuse of its dominant position in the market.

The regulator said: “A behavioural remedy is likely to be ineffective...the Commission’s preliminary view is therefore that only the mandatory divestment by Google of part of its services would address its competition concerns.”

14 June 2023

Wall Street set for slight gains

US shares are set for some slight gains this morning, ahead of the Federal Reserve’s interest rates decision later today.

S&P 500 futures are up by six points to 4422, while Nasdaq futures are up 18 points to 15117 and Dow Jones futures are down 0.2% to 34450.

14 June 2023

Market snapshot as shares rise

Click through the tabs to see all the key market data

14 June 2023

US Producer Price Inflation falls, adding to rate pause hopes

US producer price inflation fell to just 1.1% year-on-year in May, below the expected 1.5% and likely giving the Federal Reserve reason to pause its cycle of rate hikes today.

The Producer Price Index was down by 0.3% month-on-month, with foood and energy prices both declining.

The core PPI, closely watched by the Fed,, fell to just 2.8%, showing signs of US inflation getting closer to the 2% target.

The Fed will announce its latest decision at 7pm UK time.

14 June 2023

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