Business news in brief
FTSE 100 suffers worst day since September
The FTSE 100 index suffered its worst day since September yesterday, wiping out nearly all the gains that it had made in February. The FTSE dropped as pressure was put on metal prices around the world, sending some of London’s biggest miners deep into the red. Glencore, Anglo American, Fresnillo and Rio Tinto all notched up share price losses of over 4 per cent across the day.
Alongside other losers on the stock market, it meant the index lost 168.53 points, a 2.5 per cent drop. The index ended the week on 6483.43 points, only a little above the level where it had closed on 1 February. It marks the single biggest one-day drop for the index since 21 September, when it lost 202.61 points.
Online betting surge boost for Ladbrokes
Ladbrokes owner Entain is set to calm investors by announcing higher revenues after a turbulent start to 2021, which included a rebuffed takeover move by casino giant MGM. Shareholders have had their nerves tested in recent months but have found comfort in the group’s strong trading performance, with its shares currently at near-record highs. The company, which also owns the Coral bookmaker brand, is expected to post higher net gaming revenues due to rapid online growth, in its full-year update on Thursday 4 March.
Entain has been among the UK gambling firms buoyed by rapid growth in the US as more states give the go-ahead to sports betting. In its previous update, it told investors that it posted a strong last quarter of 2020, boosted by a 41 per cent jump in online net gaming revenues. It is therefore expected to announce earnings before interest, tax, depreciation and amortisation (Ebitda) within the previously announced £825m to £845m range, despite the closure of betting shops. Strong online revenues have helped UK betting firms to secure a raft of potential suitors from the US, pushing share prices higher in recent months. PA
Big increase in Bame unemployment, study shows
Unemployment among Bame workers has increased at more than twice the rate for white workers, a study suggests. The TUC said its analysis of official statistics also showed that one in 10 Bame women are unemployed. The Bame unemployment rate “shot up” from 5.8 per cent to 9.5 per cent between the final quarter of 2019 and the same time last year, said the report. Over the same period, the unemployment rate for white workers rose from 3.4 per cent to 4.5 per cent, according to the study. The new analysis comes as unions, charities and campaigners have signed a joint statement calling on the prime minister to take action to end structural racism and inequality.
TUC general secretary Frances O’Grady, said: “This pandemic has held up a mirror to the structural racism in our labour market and wider society. This is evidence of the structural discrimination which has led to a disproportionate Bame death rate from coronavirus. This crisis has to be a turning point. As we emerge from the pandemic, we can’t allow these inequalities in our workplaces, and our society, to remain.” PA
Government sells last stakes in Bradford & Bingley and Northern Rock
The government has sold the last remnants of its stake in Bradford & Bingley and NRAM, the firm formerly called Northern Rock, which were nationalised during the financial crisis more than a decade ago. Treasury officials negotiated the £5bn sale of the two entities and their remaining loans to a consortium comprising Davidson Kempner Capital Management and Citibank. The deal marks the end of a years-long effort to slowly dispose of the assets the government bought when bailing out banks following the 2007-08 crash.
“This sale represents a major achievement. At last March’s budget, we promised to finally return B&B and NRAM to private ownership and we have done just that,” said John Glen, the economic secretary to the Treasury. “We are continuing to protect consumers while recovering significant amounts of the taxpayer money used to ensure financial stability during the financial crisis.”
Since 2010 the two companies have been part of UK Asset Resolution (UKAR), a holding company for their mortgage books. Customers will continue to pay back their mortgages on the same terms as before, the government said.