Stocks jump to record highs, Wetherspoon jumps on Guiness boom, AstraZeneca pulls covid vaccine

© Reuters. FTSE 100 Live: Stocks jump to record highs, Wetherspoon jumps on Guiness boom, AstraZeneca pulls covid vaccine

Proactive Investors -

• Blue chips up 29 points to 8,343
• JD Wetherspoon (LON:JDW) champions Guiness
• AstraZeneca (NASDAQ:AZN) withdraws covid vaccine worldwide

Wetherspoon's Guinness sales boost helps owner Diageo (LON:DGE)

Wetherspoon, the budget pub operator, traded more than 3% higher today after the FTSE 250 said annual profits would come in at the top end of guidance due to renewed demand following a turbulent time for the hospitality industry post-pandemic.

While ales and coffee helped drum up additional sales, boss Tim Martin was left celebrating another pub favourite.

“The gods of fashion have smiled upon Guinness, previously consumed by blokes my age, but now widely adopted by younger generations,” he said, explaining that the stout had been a fan favourite over recent periods.

However, it wasn't just Wetherspoons cheering.

Diageo, the owner of Guinness, saw its shares pop more than 1.8% to become one of the biggest FTSE 100 risers today.

Earlier this year, Diageo boss Debra Crew said the drink was shaking its image as a ‘rugby lad’ beverage and is instead attracting more female drinkers.

Thanks to influencers and celebrities such as Kim Kardashian and Kate Middleton showcasing their love for the drink, female Guinness drinkers rose by 24% in the UK.

Bitcoin steady as ETF outflows rise

Bitcoin traded flat on Wednesday as it hovered around the US$62,360 mark, with the world's largest cryptocurrency having closed 1.3% lower on Tuesday.

Net outflows in the exchange-traded fund space continue to cause price compression on spot prices.

Matteo Greco, research analyst at Fineia International, stated: “Last week continued the trend of net outflows for BTC ETFs for the fourth consecutive week, indicating a short-term negative trajectory observed over recent weeks.

“ETFs with BTC as the underlying asset saw approximately $433 million in outflows during the week, up from the $325 million outflows seen the previous week."

London Eye kept permanently on London's South Bank

Merlin Entertainment (LON:0QVM), the owner of tourist attractions such as Legoland and Thorpe Park, has welcomed the Lambeth Council's decision to keep the London Eye permanently on the capital's South Bank.

Councillors in the London borough agreed to discharge a condition in the attraction's original 2003 planning permission, which requires the authority to decide on keeping it beyond 2028.

At least 1% of the London Eye's annual turnover must be paid towards the upkeep of the giant wheel and surrounding areas, but will now remain permanently in its location.

Owner Merlin Entertainment renamed the attraction the Lastminute.com London Eye back in 2019 after agreeing a sponsorship deal with the travel giant.

Scott O’Neil, chief executive of Merlin, said: "It is impossible to imagine the London skyline without the iconic structure of the London Eye, and with its long-term future secure, we will continue to invest and expand Merlin’s presence."

Pound falls ahead of BoE rate decision

Britain's pound has slipped again ahead of the BoE's decision on interest rates tomorrow.

Sterling dropped around 0.2% compared to the dollar, reaching US$1.248. It was also down 0.2% versus the Euro at 86p.

Markets aren't expecting a rate cut at tomorrow's meeting but are hoping for clearer evidence of whether the first round of lowering will come in June or August.

Jessica Shuman at Insight Investment said: "Although we haven’t heard from many members of the Monetary Policy Committee it is highly unlikely that the Bank of England will adjust its policy rate this week but, with the start of the easing cycle rapidly approaching, all eyes will be on the signalling that comes from both the voting patterns and accompanying statement.

"Ultimately, April’s inflation data, released later in the month, is likely to prove critical in any decision.

"A better than expected number could see July come into play, but if inflation proves stickier than expected there is no rush to cut.

"We have long held the view that this easing cycle will be later and shallower than many people expect, with inflation likely to be structurally higher in the decade ahead."

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