(Alliance News) - Stocks were called higher on Thursday, following news of US auto makers being given a temporary reprieve from tariffs against Mexico and Canada, and ahead of the European Central Bank's interest rate call.
"US President Donald Trump said that the tariffs that concern the North American car industry will be delayed by a month...a day after he imposed 25% levies on all Mexican and Canadian imports," commented Swissquote's Ipek Ozkardeskaya. "Global markets welcomed Trump's move to turn a threat into reality and then roll it back—arguably a better outcome than imposing and sticking to 25% tariffs.
"However, the uncertainty and lack of seriousness in these decisions will undoubtedly have a sizeable impact on US growth."
In corporate news, Coca-Cola Europacific Partners has taken British Land's place in the FTSE 100.
Here is what you need to know at the London market open:
----------
MARKETS
----------
FTSE 100: called up 53.9 points, 0.6%, at 8,809.74
----------
Hang Seng: up 3.1% at 24,321.37
Nikkei 225: up 0.8% at 37,704.93
S&P/ASX 200: down 0.6% at 8,094.70
----------
DJIA closed up 1.1% at 43,006.59
S&P 500: closed up 1.1% at 5,842.63
Nasdaq Composite: closed up 1.5% at 18,552.73
----------
EUR: higher at USD1.0803 (USD1.0764)
GBP: higher at USD1.2896 (USD1.2863)
USD: slightly lower at JPY148.55 (JPY148.58)
GOLD: lower at USD2,915.99 per ounce (USD2,926.93)
OIL (Brent): higher at USD69.81 a barrel (USD68.38)
(changes since previous London equities close)
----------
ECONOMICS
----------
Thursday's key economic events still to come:
China People's Political Consultative Conference continues
China National People's Congress continues
09:30 CET eurozone construction PMI
11:00 CET eurozone retail sales
14:15 CET eurozone interest rate decision
09:30 CET Germany construction PMI
11:00 CET Germany new car registrations
11:00 GMT Ireland current account
11:00 GMT Ireland GDP
09:30 GMT UK construction PMI
08:30 EST US trade balance
08:30 EST US initial jobless claims
10:00 EST US wholesale inventories
10:30 EST US EIA natural gas stocks
----------
China had been expected to loom large at high-level economic security talks between Britain and Japan on Friday, until US tariffs reared their head. Japan is the world's fourth-largest economy, and Britain the sixth. Both are US allies, but that factor is not likely to exempt them from President Donald Trump's sweeping levies on major trading partners. Joint talks between the countries' foreign and trade ministers in Tokyo this week have been touted as a chance to promote free trade and strengthen business ties in sectors from tech and defence to renewable energy. "Economic growth and future prosperity depend upon strong security foundations, a reliable trading system, resilient supply chains, energy security, and an economy resilient to shocks," the UK Foreign Office said in a statement on Thursday. Similar language was previously used by the US and its Group of Seven allies, including Japan and Britain, to indirectly refer to economic coercion by Beijing.
----------
The UK and Ireland are set to announce a closer collaboration on energy production at a joint summit on Thursday. The UK Prime Minister Keir Starmer and the Irish Taoiseach Micheal Martin will agree to a new data-sharing programme, with the aim that commercial developers will be able to increase offshore energy production. Officials hope the new deal will speed up investments and developments in infrastructure. Starmer said: "energy security and national security are two sides of the same coin, that is why we must work with our allies and partners across the world to protect the hardworking British people from external factors driving up household bills." The Taoiseach labelled the summit "one of the most significant bilateral engagements" between the two governments "in a generation". As part of the summit, Ireland has announced new investments into the UK worth GBP185.5 million, which the government says could create more than 2,500 jobs across the country.
----------
Carmakers received a temporary reprieve Wednesday from US President Donald Trump's tariffs targeting Canada and Mexico, as concerns mounted over consumer impacts and talks with Canadian Prime Minister Justin Trudeau yielded no immediate breakthrough. Following talks with the "Big Three" US automakers – Stellantis, Ford and General Motors – Trump decided to "give a one-month exemption on any autos coming through USMCA," White House Press Secretary Karoline Leavitt said, referring to the North American free trade pact. "They made the ask, and the president is happy to do it," Leavitt told reporters. But prospects of wider relief were dampened after Trump's call with Trudeau, with the US leader saying he was unconvinced Ottawa had done enough to address Washington's concerns over illicit fentanyl. In a social media post, Trump accused Trudeau of using the dispute to "stay in power," although he added that the discussion ended in a "somewhat" friendly manner. Trump's sharp 25% tariffs on US imports from Canada and Mexico – with a lower rate for Canadian energy – kicked in Tuesday, sending global markets tumbling and straining ties between the neighbours.
----------
Overall economic activity in the US rose slightly since mid-January with some evidence of a pick up in inflationary pressures, a closely watched survey showed. According to the Federal Reserve's Beige Book six Districts reported no change in economic activity, four reported modest or moderate growth, and two noted slight contractions. Overall expectations for economic activity over the coming months were slightly optimistic. In January, at the time of the last survey, all 12 Districts reported economic activity increased slightly to moderately. Prices increased moderately in most Districts, but several Districts reported an uptick in the pace of increase relative to the previous reporting period. Input price pressures were generally greater than sales price pressures, particularly in manufacturing and construction. Many Districts noted that higher prices for eggs and other food ingredients were impacting food processors and restaurants. Further, Fed contacts in most Districts expect potential tariffs on inputs will lead them to raise prices, with isolated reports of firms raising prices preemptively.
----------
China's economy is facing growing "uncertainty" in the international environment, as well as insufficient domestic demand, a top economic official said on Thursday. Beijing set an ambitious annual growth target of around five percent on Wednesday, vowing to make domestic demand its main economic driver as an escalating trade war with the US hit exports. It also has "full confidence" that it can reach that goal this year, Zheng Shanjie, chair of China's National Development and Reform Commission, told a news conference. "We have the basic support and guarantee of achieving this year's growth target of around five percent," Zheng said. "We have full confidence in this," he said.
----------
BROKER RATING CHANGES
----------
UBS cuts St James's Place to 'neutral' (buy) - price target 1,180 (1,175) pence
----------
Jefferies raises aberdeen to 'buy' - price target 215 pence
----------
Morgan Stanley cuts Ryanair Holdings to 'equal-weight' - price target 22.20 EUR
----------
COMPANIES - FTSE 100
----------
Rentokil Initial released its 2024 results, with revenue rising 1.1% to GBP5.44 billion from GBP5.38 billion. Pretax profit fell 18% however to GBP405 million from GBP493 million. Nonetheless, Rentokil increased the annual dividend by 4.7% to 9.09 pence per share from 8.68p. Going forward, the pest control and hygiene firm expects to "achieve 2025 financial performance in line with market expectations", as Chief Executive Andy Ransom put it.
----------
Entain reported that revenue rose 11% to GBP3.55 billion from GBP3.19 billion in 2024, with pretax profit decreasing to GBP407.3 million from GBP492.1 million. It increased its full-year dividend to 20.0p from 18.0p. Looking ahead, Entain expects its growth platform to deliver at least 5% group underlying revenue growth, and is targeting double-digit growth in adjusted diluted earnings per share. "On every measure, the Informa group delivered an outstanding result in 2024, from revenue growth to higher dividend returns, alongside further International and Portfolio expansion," said CEO Stephen Carter. "This is a performance we aim to repeat in 2025."
----------
British Land has been relegated from the FTSE 100 index in its latest quarterly shuffle, to be replaced by Coca-Cola Europacific Partners. The bottling company and beverage distributor for Coca-Cola is headed to London's blue-chip index after its share price climbed 22% in the last twelve months. Relegated commercial property developer British Land will be joined in the FTSE 250 by two new additions, namely London-based bank, broker and asset manager Close Brothers and Manchester, England-based online retailer of beauty and nutrition products THG. Essentra, SThree and John Wood Group will all be demoted from the FTSE 250 index. FTSE Russell confirmed that all changes from this review will take effect from market open on Monday, March 24.
----------
COMPANIES - FTSE 250
----------
Grafton Group announced a new share buyback programme worth up to GBP30 million, commencing immediately and ending no later than August 31, alongside its annual results. For 2024, revenue decreased 1.6% to GBP2.28 billion from GBP2.32 billion. Pretax profit fell 17% to GBP152.5 million from GBP183.5 million. But Grafton increased the full-year dividend by 2.8% to 37.0p from 36.0p. "We are pleased to have successfully navigated challenging market conditions in 2024 to deliver adjusted operating profit [of GBP177.5 million, down 14% on-year and] slightly ahead of analysts' expectations. This resilient performance was supported by our exposure to different geographies, our diversified customer base and the active management of gross margin and costs," commented CEO Eric Born. He added: "Whilst the timing of recovery in certain geographies remains uncertain, the medium term outlook is positive."
----------
PageGroup reported that revenue fell 14% to GBP1.74 billion in 2024, from GBP2.01 billion in 2023. Pretax profit dropped 58% to GBP49.1 million from GBP117.4 million. The total diviend per share however was increased to 17.11p from 16.37p, excluding a special dividend, with the final dividend proposed at 11.75p, up 4.5% from 11.24p. "Market conditions remained challenging across all regions in 2024, with worsening sentiment and reduced confidence in Europe during the second half of the year," commented CEO Nicholas Kirk. "Despite the year-on-year decline in gross profit and operating profit, we saw good activity levels throughout the year. The conversion of interviews to accepted offers remains the most significant area of challenge as ongoing macro-economic uncertainty continues to impact candidate and client confidence, which extends the time-to-hire." He continued: "Looking ahead, a high degree of macro-economic and geopolitical uncertainty remains across the majority of our markets, notably in the UK, France and Germany. However, we have a diversified and adaptable business model, a highly experienced management team, a strong balance sheet and our cost base is under continuous review."
----------
OTHER COMPANIES
----------
Kenmare Resources says it received a non-binding proposal from Oryx Global Partners and Michael Carvill for a potential all cash takeover offer. The Mozambique-focused producer of titanium minerals and zircon said the most recent proposal received was at a price of 530 pence per Kenmare ordinary share. The consortium has until April 17 to announce a firm intention to make an offer for Kenmare, or to announce it does not intent to make an offer. Kenmare shares had closed at 275.00p each on Wednesday in London, meaning the most recent proposal of 530p each would be around 93% higher.
----------
Greencoat Renewables in its 2024 results reported a 4.5% NAV total return for the period, with the net asset value per share decreasing to 110.5 euro cents at December 31 from 112.4 cents one year prior. Cash generation decreased to EUR148.6 million from EUR196.7 million. Non-Executive Chair Ronan Murphy commented: "I am pleased to report continued strong operating performance in a year where a range of macro-economic headwinds unsettled the sector. A combination of intensive asset management, a balanced approach to power price risk and a robust balance sheet underpinned cash generation of EUR148.61 million and 2.0x dividend cover...in addition to meeting our dividend target for the year, we used operating cashflow and disposal proceeds to make material debt repayments, fund an accretive share buyback and part-fund our sole acquisition." He noted that the company is exploring "the possibility of an additional listing to enhance the company's profile, improve liquidity and support future growth".
----------
Surface Transforms Chief Financial Officer Isabelle Maddock has announced her intention to retire, with effect from June 30. The AIM-listed firm named "seasoned finance professional" Steven Harrison as interim CFO, effective March 17, to "facilitate a successful handover and continuity".
----------
By Emma Curzon, Alliance News reporter
Comments and questions to newsroom@alliancenews.com
Copyright 2025 Alliance News Ltd. All Rights Reserved.
