Proactive Investors -
- FTSE 100 down 40 points at 8,175
- Wise Group AB (ST:WISE) plunges 16.5%
- Halma (LON:HLMA) rallies 10% on record profits and dividend hike
China hits back at EU's hike in EV import tariffs
A trade war between the EU and China could be brewing, echoing that of the situation between the latter and the US.
Yesterday, the EU announced a rise in tariffs for Chinese-made EVs with companies such as MG, BYD and Volvo facing taxes of as much as 50% on imports.
Now, China has threatened to file a lawsuit with World Trade Organisation.
He Yadong, Beijing's commerce ministry spokesperson, said: "China reserves the right to file a suit to the WTO and take all necessary measures to resolutely defend the rights and interests of Chinese companies.”
Despite the looming trade war, BYD, the Chinese EV group, has seen its shares rally as much as 8,8% in reaction to the tariffs being lighter than initially expected.
BYD cars being imported into the EU face a 17.4% tariff, coming in on the lower end of the taxes for Chinese EV imports.
Peel Hunt shares hold flat as market optimism offsets annual losses
Shares in Peel Hunt (LON:PEEL) held flat this morning after its slight optimism for the London Stock Exchange helped offset a loss in the latest financial year.
“We are seeing tentative signs that a recovery from the lows of the last two years is underway,” said chief executive Steven Fine in a statement.
Even so, the small-cap specialist saw losses more than double to £3.3 million (£1.5 million) even though revenues rose by 4% to £85.8 million.
Investment banking sales rose by 39% to £32,6 million but there were declines in both trading and research services.
"It is hard to dispute that 2023 was a dismal year for UK equity market activity," said analysts at Stifel's KBW said.
"Against this backdrop, Peel Hunt's revenue performance to March 2024 (+4%) was arguably more than respectable.
"With the business having consistently delivered PBT of c.£20m+ per annum before the slowdown, we remain positive."
Tesla share pop as Musk declares victory over pay vote
Tesla shares have reacted positively to chief executive Elon Musk's claims that he has won the vote to approve his US$56 billion pay package, prior to an official announcement.
Shares in the EV maker lifted close to 5.5% in premarket trading after the SpaceX boss and X owner took to social media to declare victory.
A shareholder meeting is scheduled to take place later today, but it appears Musk has already taken a peak at the preliminary voting.
Both Tesla shareholder resolutions are currently passing by wide margins!♥️♥️ Thanks for your support!! ♥️♥️ pic.twitter.com/udf56VGQdo
— Elon Musk (@elonmusk) June 13, 2024
Official shareholder votes are yet to be released.
Musk's self-proclaimed victory comes a day after a Wall Street Journal article accused him of sexual harassment and gender discrimination at SpaceX, of which he is the chief executive and founder.
Revolut ups London office space as expansion drive continues
While it has been a tough day for listed fintech firms and banks, with both Wise and Virgin Money (LON:VMUK) warning of the impact of lower interest rates eating away at guidance, it hasn't been all negative for the private companies in the sector like Revolut.
This morning, the challenger bank underlined its ambitions in the City by taking the top four floors of a recently refurbished tower in London’s financial district of Canary Wharf.
Revolut signed a 10-year lease at 30 South Colonnade, which was recently renamed YY London.
Two Revolut logos will blaze out on either side of the building with bank staff expected to be in place by May next year.
Revolut was valued recently at £24 billion and has been on a hiring spree recently with 1,500 new staff slated to be added by the end of this year.
Wise plummets as falling interest rates hit outlook
Shares in Wise are down more than 15.5% this morning after analysts flagged concerns over the impact of falling interest rates in the near term.
Calling its guidance "disappointing", analysts at Jefferies said forecasts for underlying total income of between £1.35 billion and £1.41 billion in 2025 was 2% below consensus.
Hannes Leitner, analyst at the US bank, argued that net interest income, which tracks the money generated from deposits, is at risk of "tailwinds" due to concerns that the group is "using interest income to fund its core business, which is transitory”.
"While the announced guidance is disappointing at first glance given the price reduction, however, we think the cuts boost confidence in medium-term growth,” Leitner said.
Wise issued pre-tax profit margin guidance of between 13% and 16% or £175 million to £225 million, which was down by around 19% when compared to the City's estimates of 18% or £247 million, Jefferies added.
It comes despite Wise having reported pre-tax profits trebling in 2024 to £242 million.