LONDON BRIEFING: FTSE 100 called up despite unemployment rise

(Alliance News) - The FTSE 100 in London was called to open higher on Tuesday, after data showed that unemployment in the UK unexpectedly rose.

On Tuesday, the US Federal Open Market Committee meeting will begin, with a decision to be made on Wednesday.

In early company news, Raspberry Pi Holdings, which intends to float on the Main Market, expects a market capitalisation of GBP541.6 million when its shares start trading, as it announced an offer price of 280 pence per share.

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 0.4% at 8,260.50

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Hang Seng: down 0.7% at 18,237.18

Nikkei 225: closed up 0.3% at 39,134.79

S&P/ASX 200: closed down 1.3% at 7,755.40

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DJIA: closed up 69.05 points, 0.2%, at 38,868.04

S&P 500: closed up 0.3% at 5,360.79

Nasdaq Composite: closed up 0.4% at 17,192.53

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EUR: up at USD1.0766 (USD1.0739)

GBP: up at USD1.2736 (USD1.2722)

USD: up at JPY157.30 (JPY156.89)

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GOLD: down at USD2,299.50 per ounce (USD2,305.10)

OIL (Brent): up at USD81.42 a barrel (USD80.81)

(changes since previous London equities close)

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ECONOMICS

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Tuesday's key economic events still to come:

14:00 EDT US FOMC meetings begins

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The UK unemployment rate edged up in the three months to the end of April, but upward pressure on wages remained strong, new data on Tuesday showed. According to the Office for National Statistics, the jobless rate ticked up to 4.4% in three months to the end of April from 4.3% in the three months to the end of March. According to FXStreet, markets were expecting the unemployment rate to remain unchanged. The ONS said average earnings excluding bonuses rose 6.0% on-year in the period, matching the pace of growth in the three months to the end of April. Including bonuses, wages increased 5.9%, also matching the prior month, which was revised upwards from 5.7%. Market consensus had been anticipating a rise of just 5.7% in the recent period.

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BROKER RATING CHANGES

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Morgan Stanley cuts Anglo American to 'equal-weight'

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COMPANIES - FTSE 100

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GSK said it has taken the first step to seek appeal of the recent Daubert ruling, made by the Delaware Superior Court, which permits plaintiff expert testimony as part of the Zantac litigation in Delaware. "GSK strongly disagrees with the Delaware Superior Court's ruling and has filed an application with the court to appeal to the Delaware Supreme Court for interlocutory review of the decision," it said. GSK claims that the court's ruling is "inconsistent with how the Daubert standard has been applied previously in Delaware and federal courts." The scientific consensus is that there is no consistent or reliable evidence that ranitidine increases the risk of any cancer, GSK says. The company added that Pfizer, Sanofi, and Boehringer Ingelheim are all parties to the application. Zantac was a heartburn drug that was pulled off the market in 2020 at the request of the US Food & Drug Administration, after low levels of a "probable carcinogen" were found in samples.

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COMPANIES - FTSE 250

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FirstGroup reported that revenue in the 53 weeks ended March 30 fell to GBP4.72 billion from GBP4.76 billion a year earlier. Adjusted pretax profit rose to GBP136.8 million from GBP97.9 million. However, FirstGroup swung to a statutory pretax loss of GBP24.4 million from a profit of GBP128.7 million. This was due to local government pension scheme settlement and related charges of GBP146.9 million. The company upped its dividend per share to 5.5p from 3.8p. Looking ahead, FirstGroup said its outlook for financial 2025 remains in line with company expectations. CEO Graham Sutherland said: "We have made considerable progress in our financial and operational performance in FY 2024 as we continue to transform and grow our leading First Bus and First Rail businesses. This is testament to the resilience and capability of our people across the group and leaves us well positioned to grow and create further value for all our stakeholders."

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Senior said it has won "various multi-year production contracts" by Collins Aerospace for the supply of precision formed and machined thrust reverser structural components for Boeing 787, Airbus A320neo and Airbus A220 aircraft. Deliveries commenced in January 2024 for Boeing and will commence January 2025 for Airbus. The total value of contracts is approximately USD80 million over a 10-year period.

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OTHER COMPANIES

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Raspberry Pi Holdings announces its successful pricing of its initial public offering at 280p. Bas on the offer price, Raspberry Pi's market capitalisation will be approximately GBP541.6 million. CEO Eben Upton said: "The quality of the interactions during the marketing process has underlined our belief that London has the right calibre and sophistication of investor to support growing, ambitious technology businesses such as Raspberry Pi. The reaction that we have received is a reflection of the world-class team that we have assembled and the strength of the loyal community with whom we have grown." Raspberry Pi announced IPO plans back in May.

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By Sophie Rose, Alliance News senior reporter

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