Proactive Investors -
The morning so far
The FTSE 100 initially surged to another record high of 8,362 when markets opened this morning.
Blue chips have come off slightly since then, with the index currently swapping at 8,352, a few points lower from yesterday’s close.
All eyes are on the Bank of England’s interest rate decision due at midday. The Monetary Policy Committee is widely expected to hold rates at 5.25%, though the messaging and vote split will be thoroughly pored over.
Expect any dovish messaging to move stocks higher.
On the company news front, ITV’s posted total revenues for the first quarter of £887 million, a decrease of 7% compared to the same period last year.
This decline was attributed to a 16% drop in ITV Studios’ advertising revenue, which stood at £382 million, reflecting the phasing of deliveries and the impact of the US film industry strikes.
Shares added around 2% though, suggesting optimism that the advertising slump may be nearly an inflection point.
The Hipgnosis bidding war appears to be coming to an end with Blackstone emerging as the winner after rival bidder, the Nashville-based record company Concord, said it would not match the $1.30-per-share offer.
On the US markets, British microchip designer Arm Holdings (NASDAQ:ARM) failed to excite investors with its fourth-quarter results and forecast. Nasdaq-listed stocks slipped 9% in after-hours trades.
Arm fails to impress
British microchip designer Arm Holdings PLC (NASDAQ:ARM) failed to impress with its fourth-quarter results.
The US-listed technology giant posted record revenues of $928 million for the quarter, up 47% year on year, with full-year revenues increasing 21% to $3.23 billion.
Earnings per share (EPS) came to $0.36 for the quarter and $1.27 for the year.
These results topped previously set guidance, but investors may have been underwhelmed by forward guidance.
Arm expects earnings to stay flat in the current quarter, with a full-year forecast set between $1.45 and $1.65.
Nasdaq-listed Arm shares slipped 9% in after-hours US trades.
FTSE 100 straddles all-time high
The blue-chip index initially surged to another all-time high of 8,362 when markets opened on Thursday.
It has since retreated back a few points to 8,356, slightly above yesterday’s record.
Top morning risers include Barclays (LON:BARC), Centrica (LON:CNA), Whitbread (LON:WTB) and NatWest (LON:NWG) Group.
Blackstone to snap up Hipgnosis after Concord refuses to budge
Concord will not increase its $1.25-per-share offer for Hipgnosis Song Fund Limited, the Nashville-based record company today confirmed.
It leaves the door open to Blackstone taking over Hipgnosis’ collection of music royalties after the asset manager upped its bid to $1.30 on 29 April.
Hipgnosis Song Fund includes the rights to songs from the likes of Ed Sheeran, Lady Gaga and Fleetwood Mac.
The Hipgnosis saga has been marred by slashed portfolio valuations, legal wrangles with its founder and a recent bidding war between Concord and Blackstone.
Watches of Switzerland makes strategic jewellery acquisition
FTSE 250-listed Rolex merchant Watches Of Switzerland Group PLC (LON:WOSG) has acquired Roberto Coin Inc for $130 million (£104 million), marking a strategic move into the luxury jewellery sector.
“The acquisition builds on the group's proven capabilities in showcasing luxury brands across both watches and jewellery and will significantly enhance our strategic positioning in the luxury branded jewellery category in the US,” said the group in a statement.
Roberto Coin Inc, which holds exclusive rights to import and distribute Roberto Coin jewellery across the US, Canada, Caribbean, and Central America, achieved annual revenue of $146.2 million and a profit before tax of $30.1 million for the financial year ending December 31, 2022.
"We look forward to benefiting from their wealth of luxury retail and digital experience to unleash the growth potential of the Roberto Coin brand across our chosen markets," said founder and chief executive Roberto Coin.
Roberto Coin jewellery is currently available in 16 WOSG showrooms in the US.