FTSE 100 Live: UK inflation hits 5.1%, consumer price index rises, BoE under pressure

LBG Media, the parent company of viral publisher LadBible, has debuted on AIM today.

LBG Media, which also owns titles like UNILAD and SportBible, raised £30 million in the float, which valued the business at £360 million.

Shares were offered at 175p and rose 20p, or 11%, to 195p in early dealing.

LadBible began as a viral publisher that was known for its ‘laddy’ content that often went viral on Facebook. A Guardian profile from 2015 suggested the brand could be a digital heir to lads mags like FHM and Zoo, saying there was “plenty of beer and boobs” in its early years.

More recently the company has sort to smarten its image, launching campaigns such as ‘U OK M8?’ about mental health. The broader group has launched a separate brand, Tyla, to appeal to women.

The FTSE 100 was 17.92 points lower, or 0.25%, at  7200.72 as at 1pm.

As AJ Bell investment director Russ Mould put it earlier: “Investors got a big reminder that while all the focus has been on the latest twist in the Covid-19 pandemic, inflation risks haven’t gone away.”

The Office for National Statistics said inflation hit 5.1% in November, driven higher by rising petrol prices and soaring costs for second hand cars.

Headlines from this morning include:

New data shows that across England, London recorded the greatest monthly house price growth in October, however the capital saw the lowest annual increase.

But there was still an annual price rise of 10.2%, which makes the average property in the UK valued at £268,349. The increase came in a year when the housing market was boosted for much of the period by a stamp duty holiday. In addition, during the pandemic many people have been reassessing where they want to live and how much space they need.

London experienced the greatest monthly rise in October, up 1.9% and prices standing at £516,285 on average. The annual rise of 6.2% was lower than other regions, although it is worth noting the capital already had high prices pre-Covid.

Nick Leeming, chairman at estate agency business Jackson-Stops said: “Despite a slight fall in the rate of increase in average house prices from September, today’s numbers remain higher than the previous peak seen in June, showing that lack of supply has continued to govern the 2021 housing market as we head towards the end of the year.”

Barclays is to double its investment in women’s football as part of a major extension of its sponsorship of the Premier League.

The bank, which became the first ever sponsor of the Women’s Super League in 2019, will invest £30 million in women’s football over the next three years and become the first ever sponsor of the Women’s Championship. The investment is part of an extension of Barclays sponsorship of the Premier League and the Football Association.

Sasha Wiggins at Barclays said: “Collectively we have been through extraordinarily difficult times over the last 18 months and over that time football has done much to help raise spirits and bring people together.”

Will Brass, the Premier League’s Chief Commercial Officer, said the bank was “a fantastic partner.”

Cineworld, the world’s second largest cinema chain, saw shares fall as much as 38% this morning on news it had lost a legal dispute with Canadian rival Cineplex and been ordered to pay a C$1.23 billion (£704 million) damages bill. 

The FTSE 250 chain said it will appeal the decision and “dopes not expect damages to be payable whilst any appeal is ongoing”. 

Shares in Cineworld fell as much as 38% in early trading before recovering slightly. Shares were down 27.6%, or 12.5p, at 32.8p, by 8.30am. 

The blow comes after a tough few years for Cineworld, which revealed an eye-watering $3 billion 2020 loss in March.  

Investment giant Fortress, the owner of Majestic Wine, has agreed a deal to buy Punch Pubs & Co which has an estate comprising 1300 sites.

The purchase of the business, which has around 60 pubs in London and is led by Clive Chesser, is from Patron Capital Partners.

Punch is a wet-led pubs operator, and approximately 93% of its sites are freehold or long leasehold.

Currys sent a chill through the retail sector and caused its shares to blow a fuse after it revealed that consumers have reined in their spending ahead of Christmas.

The electricals chain, which sells online and through 832 stores in eight countries, said its market was softer even before further headwinds caused by the Omicron variant.

More time spent at home earlier in the pandemic triggered a surge in spending on televisions and other gadgets, but there are signs that this trend is on the wane as households face up to cost of living and other pressures.

Currys said the immediate outlook was more uncertain, but it continues to stick by forecasts after gaining market share and growing half-year profits by £3 million to £48 million.

Chief executive Alex Baldock said: “Market demand will have its short-term ups and downs, but the big picture is of a technology market sustainably larger post-pandemic.

“Hybrid working will become normal, and in-home entertainment will continue to grow. More time at home means more usage, and more customers’ eyes have been opened to what new technology can do, both of which point to faster replacement.”

Currys shares tumbled 11% or 14.2p to 109.8p in the FTSE 250 index, while online rival AO World fell 4.1p to 90.25p. Fears over faltering consumer confidence also had an impact on B&Q owner Kingfisher and clothing giant Next as their blue-chip shares dropped 8.3p to 330.6p and 132p to 7922p respectively.

Weaker mining and oil stocks added to pressure as the FTSE 100 index declined another 27.23 points to 7191.41. The FTSE 250 index fell 31.77 points to 22,518.92.

One of the lesser known stocks in the top flight, DCC, topped the risers board after the Dublin-based conglomerate announced its largest ever acquisition.

The sales, marketing and support services group is buying audio visual equipment distributor Almo Corporation for £462 million, a move that doubles the size of its technology business in North America. DCC shares were up 5% or 270p to 5776p.

In other deals, 888 Holdings is to raise $50 million by selling its UK-focused bingo business to Broadway Gaming. Shares rose 0.2p to 290.2p as 888 said the move would allow it to focus on US growth and its casino, poker and sports betting operations.

Aldi has said its shop workers will get higher wages from February 2022.

The discount chain, Britain’s fifth largest supermarket firm, said the increase will impact 28,000 employees.

Store assistants will get at least £10.10 an hour nationally and those within the M25 will be paid £11.55. The current minimum rates at Aldi shops are respectively £9.55 and £11.07.

The rise was announced at time when grocers are competing for staff, with many new stores planned.

The FTSE 100 index is trading near to its opening mark, despite last night’s weak session on Wall Street.

One of the lesser known stocks in the top flight, DCC, topped the risers board after it announced its largest ever acquisition.

The sales, marketing and support services group is buying Almo Corporation for £462 million, a move that doubles the size of its technology business in North America.

DCC shares were up 5% or 270p to 5776p and cyber security firm Darktrace also rallied 3%, but weaker mining and oil stocks meant the FTSE 100 index fell 11.41 points to 7207.23.

The FTSE 250 index climbed 29.61 points to 22,580.30, despite a fall of 7% for retailer Currys after its interim results.

Ofgem said suppliers would face “stress tests” from January to measure their financial resilience in times of crisis. Those that fall short will be ordered to make improvements.

The new rules are similar to “stress tests” introduced by the Bank of England for banks in the wake of the 2008 financial crisis.

It comes after the collapse of over half the market this year due to soaring gas prices. The regulator is consulting on other changes aimed at making the market more resilient.