BETA filters Key Events (2) United Kingdom (3) Saudi Arabia (1) Avatrade (1) Cambridge (1) Haleon (1) We expect further travel chaos and some services will be affected by rising temperatures today. Follow our dedicated UK heatwave blog today for the latest: Mark Sweney GSK’s consumer products spin-off Haleon, home to brands from Sensodyne toothpaste to painkillers Panadol, has started trading on the London Stock Exchange in the biggest European listing in a decade. Haleon shares started trading on Monday morning at 330p, giving it a market value of around £31bn. The split marks GSK’s biggest corporate restructuring in two decades and will allow the pharmaceutical company, which failed to develop its own Covid-19 vaccine during the pandemic, to focus on infectious diseases and vaccines. Haleon’s performance is a touchstone to gauge the City of London’s financial strength and appetite for new imports, with the company poised to join GSK in the FTSE 100 index of blue-chip shares. The last IPO of a similar scale was miner and commodities company Glencore, which debuted at a market value of £38bn in 2011. It’s a boost to the UK stock market at a time when chip designer Cambridge Arm, which owns Japan’s Softbank is expected to choose New York for its return to the public markets, although it may seek a secondary listing in London after pressure from the UK government. Read more here. While Brent crude prices are rising this morning, it’s worth remembering that prices are still in a lower range compared to the highs of nearly $130 per barrel reached in March. Concerns about weak economic growth and weakening demand have driven oil prices back sharply in recent weeks. In fact, they are hovering at their lowest levels since the invasion of Ukraine in February, and actually finished lower for the fifth week in a row last week: Brent crude climbs but eases, the commodity has moderated since February. Photo: Tail1/Refinitiv
Shares in Deliveroo fall 5% after revenue forecasts were cut
Food delivery platform Deliveroo blamed the UK’s faltering economic outlook for hitting its own revenue forecasts. The group downgraded its full-year revenue growth expectations to between 4-12%, a significant drop from previous forecasts of 15-25%, due to a “more cautious economic outlook”. It came after second-quarter revenue growth slowed to 2% from 12% in the first quarter, which the company said reflected “the impact of increased consumer headwinds.” Consumers have pulled back on discretionary spending, including shopping, as they try to make up for the cost-of-living crisis, which has taken a bite out of household finances. Deliveroo downgraded its revenue guidance on Monday. Photo: Deliveroo Deliveroo said it was ready to tighten its belt: Management is confident in the company’s ability to adapt financially to a rapidly changing macroeconomic environment through gross margin improvements, more efficient marketing spend and tight cost control. The news sent the shares down 5% at the open, although they appear to have stabilized after the initial drop and are trading almost 15% lower at around 84p a share. The major European stock markets moved up:
The FTSE 100 opened 0.66% higher France’s CAC 40 rose 0.58% Germany’s DAX opened 0.5% higher Spain’s IBEX rose 0.76%
Introduction: Oil prices rise after Biden fails to secure production increase
Good morning and welcome to our rolling coverage of business, the global economy and financial markets. Brent crude topped $100 a barrel this morning, rising more than 2.6% to $103.88, as traders digested the lack of progress in securing commitments to increase production from Saudi Arabia over the weekend . U.S. President Joe Biden’s trip to the Middle East sparked renewed concern over global oil supplies, which fell briefly last week as fears grew of an impending global recession that could dampen demand. It was comments from Saudi Arabia’s foreign minister, Prince Faisal bin Farhan Al Saud, that dashed hopes of a deal. He said Saturday’s US-Saudi summit did not discuss oil and that the oil cartel group of exporting countries, known as OPEC+, would continue to assess market conditions. It will continue to put pressure on households, which have been hit by rising living costs, including energy prices. Naeem Aslam, chief market analyst at Avatrade, said: Traders got a clear message from Biden’s recent visit to Saudi Arabia, during which President Biden spoke with several Arab leaders. The message is that OPEC+ is the one making the decision on oil supply and the cartel has no interest in what Biden is trying to achieve. OPEC+ will continue to control oil supply, and one country alone cannot determine oil supply — at least that’s the message traders got from Biden’s visit to Saudi Arabia. Brent oil prices crossed the $100 mark earlier today, and if the price continues to trade above this price mark, then it is very likely that the path of least resistance will be skewed to the upside. Otherwise, we’ll be watching comments from Bank of England officials and non-US banking earnings.
THE AGENDA
10 am. BST: Bank of England MPC member Michael Saunders speaks at the Resolution Foundation 12:30 p.m. BST: Goldman Sachs, Bank of America report Q2 earnings
Updated at 09.24 BST
