- FTSE 100 down 9 points
- UK economic growth slows
- GSK, AstraZenecaa fall
3.59pm: FTSE 100 downbeat in late trading
London’s blue chips headed into the weekend on the back foot, having dropped by 9 points to 8,061 come late trading.
Declines by pharmaceutical firms GSK PLC (LSE:GSK, NYSE:GSK), AstraZeneca PLC (LSE:AZN) and chemical firm Croda International PLC (LSE:CRDA) continued to weigh on news of Donald Trump’s appointment of anti-vaxxer Robert F Kennedy Junior.
RELX PLC, Melrose Industries PLC (LSE:MRO, OTC:MLSPF) and B&M European Value Retail SA (LSE:BME) also sat among the day’s losers late on.
Land Securities Group PLC (LSE:LAND) led risers in the meantime after hiking guidance in results, which showed growing demand for London office space and retail outlets, earlier.
easyJet PLC followed as a dip in oil prices raised the prospect of cheaper fuel costs.
3.37pm: Gold heads for hefty weekly drop as profit-taking hits
Gold stabilised on Friday but it was not enough to prevent the yellow metal from heading into the weekend over 4.5% lower than the start of the week.
Spot gold fell to US$2,569 an ounce come Friday afternoon, having fallen from US$2,685 at the start of the week.
BullionVault research director Adrian Ash noted profit taking had a large part to play, as investors sold off following gold’s record-breaking run in recent months.
“The heaviest gold selling on BullionVault so far in November has come among investors who began buying gold during or after the Covid pandemic,” he said.
Donald Trump’s sweeping victory in the US election had also ended months of uncertainty in the run-up to the vote, Ash added, adding this was unlikely to last.
“While gold loves uncertainty, the clarity of Trump's red sweep is currently overwhelming the volatility his second term is certain to bring in due course,” Ash said.
3.23pm: AstraZeneca, GSK shed £7bn on Trump anti-vax health appointment
GSK PLC (LSE:GSK, NYSE:GSK) and AstraZeneca PLC (LSE:AZN) continued to fall into Friday afternoon in the wake of news anti-vaxer Robert F Kennedy Junior would become the new US health secretary.
Jab-maker GSK fell 4.5% on the news, while peer AstraZeneca dropped 2.8%, equating to an almost £7 billion slump in combined market share.
President-elect Donald Trump unveiled the appointment on Thursday, noting Kennedy would “play a big role in helping ensure that everybody will be protected from harmful chemicals, pollutants, pesticides, pharmaceutical products and food additives”.
2.48pm: Wall Street drops as retail sales surpass expectations
Wall Street faced a tough start as trading got underway on Friday on the back of a jump in retail sales over the course of October.
The Nasdaq dropped 1% after the bell, while the S&P 500 fell by 0.7% and Dow Jones slipped 0.3%.
Figures from the Commerce Department showed retail sales across the US ticked up by 0.4% last month, beating expectations for 0.3% and against an upwardly revised 0.8% in September.
Though signalling strength within the US economy and willingness to spend among consumers, analysts had pointed to potential inflationary pressures.
“Optimism about the economic outlook among consumers might have increased since the election,” Pantheon Macro analysts said, “driven by expectations of tax cuts and surging stock prices”.
Federal Reserve chair Jerome Powell on Thursday had pointed to strength within the US economy, suggesting further interest rate reductions could be made more slowly.
2.31pm: Mortgage rates tick higher, savings rates drop
Mortgage rates climbed every day this week as savings rates also fell, despite the Bank of England’s move to cut interest earlier in the month.
According to comparison site Moneyfacts, interest on the typical five-year fixed rate mortgage sat at 5.4955% on Friday, against 5.4205% a week ago.
Savings rates also fell over the course of the week, from an average of 3.0082% last Friday to 2.9818%.
The final sub-4% two-year fixed mortgages were pulled from the market on Thursday also, as lenders reacted to an increase in swap rates.... Read more
1.39pm: Volex slumps after bids batted off by TT Electronics
Shares in Volex PLC (AIM:VLX) tumbled over 11% on Friday after news emerged the AIM-listed manufacturing specialist had repeated takeover bids turned down by TT Electronics.
Volex disclosed on Friday morning that it had tabled two cash-and-share offers for its smaller rival.
The first valued TT at 129p per share and the second at 139.6p per share, representing a 77% premium to TT’s Thursday closing price.
Volex chair Nat Rothschild, a member of the Rothschild banking dynasty, laid into TT’s board in its update, noting the firm had declined to engage with the proposals, despite the bumper premium offered to shareholders… Read more
Volex fell 11.2% to 305p on Friday. TT soared 51.9% to 120p in the meantime.
12:54pm: LandSec sees strong demand for London office space
More from LandSec, which upped its forecasts today and said the demand for central London office space is soaring while retail space is more focused on fewer, larger locations in better areas.
The FTSE 100 group owns the White Rose shopping centre in Leeds, the O2 Centre in London, and the Bluewater shopping centre in Kent.
Earnings guidance for the year to March 2025 has been raised to be in line with last year's level said chief executive Mark Allan, despite £0.5bn of net disposals over the past year, with this outperformance to flow through into the following year as well.
Shares were up 2.9% at 596p at lunchtime making it Footsie’s best performer on the day.
The index is up 4 at 8,075.
12.15pm: Wall Street to extend declines as rate cut hopes dialled back
Wall Street looked on course to fall further ahead of the weekend as futures pointed to a negative start against a backdrop of reduced rate cut expectations.
Futures had the Nasdaq down 0.8% ahead of Friday’s opening bell, while the S&P 500 and Dow Jones were seen 0.5% and 0.4% lower respectively.
Federal Reserve chair Jerome Powell on Thursday signalled there was no rush among policymakers to cut interest further after November’s reduction.
He dubbed the US economy’s recent performance as “remarkably good,” prompting market expectations for another 25 basis point cut in December to fall from 80% to 60%.
Retail sales figures are set to provide further clarity around the state of the economy later on Friday, with a 0.3% uptick expected for October against September’s 0.4% growth.
“Markets might not see a boost in retail sales as a good thing,” Tickmill Group partner Patrick Munnelly commented, however.
“Producer prices carry an upside risk to the personal consumption expenditures price Index, the Federal Reserve's preferred inflation indicator,” he added.
11.58am: Whitbread falls on Barclays downgrade
Premier Inn owner Whitbread PLC (LSE:WTB) shares dipped on Friday after Barclays analysts hit the hotel operator with a downgrade.
Warning of consensus downgrades due to higher costs on the back of last month’s Budget, Barclays bumped Whitbread’s rating from ‘overweight’ to ‘equal weight’.
“As we look out over the next 12 months, it is not clear to us where the 'good news' will be coming from,” Barclays said.
Higher labour costs are likely to hit business investment in travel and entertainment, in turn weighing on Whitbread, analysts added, making it difficult for the chain to hike prices.
Shares fell 0.9% on Friday, while Holiday Inn owner IHG gained 0.4% as it was dubbed as “preferred” to Whitbread.
11.46am: Concerns build over Trump health head appointment
News Robert F Kennedy Junior will head the US health department under Donald Trump has prompted concern given his outward stance against jabs.
“It doesn’t help when you’ve got a health secretary who’s sceptical of vaccines in convincing the public to take vaccines,” Paul Chaplin, head of biotech firm Bavarian Nordic head, said on Friday.
Shares in pharmaceutical firms have fallen across the board on Friday in response to the appointment, with GSK remaining top on the FTSE 100’s list of fallers.
US Centers for Disease Control and Prevention director Mandy Cohen had warned on Wednesday against Kennedy’s appointment and its potential hit to vaccination programmes.
“Vaccines are crucial to protecting children from deadly diseases,” she said Wednesday at the Milken Institute Future of Health Summit in Washington.
“I don’t want to have to see us go backward in order to remind ourselves that vaccines work.”
10.54am: Reeves ‘not satisfied’ as UK becomes G7’s second-worst performer
Chancellor Rachel Reeves has expressed disappointment over news the UK economy barely grew over the third quarter.
ONS figures earlier on showed UK gross domestic product picked up just 0.1% over the three months to September, following growth of 0.5% in the second quarter.
“Improving economic growth is at the heart of everything I am seeking to achieve, which is why I am not satisfied with these numbers,” Reeves said in response on Friday.
The slowing growth meant the UK had fallen from the top of the leaderboard among G7 nations in terms of growth, the Resolution Foundation pointed out.
Having grown at the fastest pace over the first half of the year, the UK’s slower expansion in the third quarter now placed it only ahead of Italy among the G7 economies.
“After bouncing back from recession earlier this year, Britain’s recovery is already running out of steam, Resolution economist Simon Pittaway said.
This was as the French, German, Japanese and Canadian economies outpaced the UK, while the US grew at the fastest pace by 0.7% over the period.
9.52am: Pharma stocks hit after Trump names Robert F Kennedy Jr as health secretary
GSK PLC (LSE:GSK, NYSE:GSK) and AstraZeneca PLC (LSE:AZN) came under pressure on Friday in the wake of news US president-elect Donald Trump would appoint Robert F Kennedy Junior as health secretary.
AJ Bell analyst Russ Mould noted investors had been spooked by the appointment of a “vaccine-sceptic” to the role.
“The impact on the sector is hard to judge fully at this stage but, at the very least, it will cause a good deal of uncertainty,” he said.
Pharmaceutical companies globally faced a blow on the news, with Germany’s Roche and Demark’s Novo Nordisk (NYSE:NVO) dropping, as Moderna Inc (NASDAQ:MRNA, ETR:0QF) and Pfizer Inc (NYSE:PFE, ETR:PFE) also headed lower in pre-market trading across the Atlantic.
London-listed chemicals firm Croda International PLC (LSE:CRDA) led fallers on the FTSE 100 in the meantime, with Kennedy also having called for bans on the likes of food additives.
9.39am: Land Securities leads risers as retail occupancy ahead of 2019, WFH scales back
Land Securities Group PLC (LSE:LAND) has emerged as the biggest riser on the FTSE 100 after hiking guidance in interim results earlier on.
Shares ticked up 2.1% after the real estate investment trust said full-year per-share earnings should match 2024’s despite £0.5 billion in disposals over the course of 2025.
Like-for-like occupancy among retail sites had now exceeded pre-pandemic levels, Land Securities added, while average daily tap-ins to London offices had hit a record in September, signalling a reversal in people working from home.
Return on equity also improved over the first half of the year, with a higher interim dividend being declared… Read more
9.23am: Oil under further pressure as glut fears build
Oil prices headed lower on Friday as fears over a supply glut in 2025 continued to weigh.
Benchmark Brent crude declined by 1.4% to US$71.43 a barrel over the course of the morning, having sat as high as US$74.97 earlier in the week.
The International Energy Agency on Thursday had warned of a surplus of more than one million barrels per day next year on muted demand.
UBS analysts warned on Friday that market participants were pricing in a “too pessimistic outlook” for 2025 though, noting the likes of US production could remain flat.
“Despite the re-election of Donald Trump and his pro-drilling pledge, we believe that it is not the person sitting in the White House that determines the US crude production path, but the prevailing spot price,” analysts said, forecasting US$80 a barrel in 2025.
9.09am: December rate cut prospect boosted as GDP slows
Slower than expected gross domestic product growth over the third quarter leaves December’s decision on interest by the Bank of England tighter than thought.
Britain’s economy grew by 0.1% over the three months to September, below the 0.5% uptick seen in the previous period and off the 0.2% increase expected.
Matheon Macro analysts noted the weaker growth had meant December’s Monetary Policy Committee call on interest would be “closer” than first thought.
“We still expect rate-setters to keep [the] bank rate on hold as they look through the latest volatile GDP figures,” analysts added.
8.41am: GSK, AstraZeneca lead index lower
London’s blue chips dropped as trading got underway on Friday, led by pharmaceutical firms.
Shares in the GSK PLC (LSE:GSK, NYSE:GSK) dipped 3.7% as trading got underway, while AstraZeneca PLC (LSE:AZN) fell by 2.5%.
GSK on Thursday had hailed the progress of its previously withdrawn Blenrep drug in trials, while Astra unveiled stronger-than-expected third-quarter figures earlier in the week.
ONS figures earlier on Friday showed a sharp drop in the pharmaceuticals sector over the course of September, where manufacturing of basic products fell by 2.5%.
Land Securities Group PLC (LSE:LAND) led the FTSE 100’s risers in the meantime after unveiling a better return on equity for the six months to September… Read more
Overall, the index fell 20 points to 8,051.
8.15am: Gold nears two-month low on US rate cut caution
Gold has come under further pressure as expectations for another cut to interest in the US were dialled back in the wake of comments from Federal Reserve chair Jerome Powell.
The yellow metal was trading at US$2,566 an ounce on Friday, having dropped by 4.4% over the course of the week and hit its lowest since early September on Thursday.
Powell on Thursday had signalled the Federal Reserve was in no rush to cut rates further, after a reduction this month, labelling the US economy’s recent performance “remarkably good”.
Markets scaled back expectations for a quarter-point interest rate cut in the wake of his comments, pricing in a 60% chance of the move, against 80% earlier in the day.
7.53am: Audioboom hikes profit expectations again
Audioboom Group PLC (AIM:BOOM) has lifted its profit guidance for the second time in two months after a 49% uptick in revenue from its advertising marketplace Showcase in October.
Strong momentum into the fourth quarter has left the podcast company on course to hit adjusted pre-tax earnings of US$2.8 million (£2.2 million), Audioboom said on Friday.
This marks a hike from guidance of US$2.5 million laid out in October, which itself had been lifted from an expectation of US$1.3 million previously... Read more
7.28am: Fingers pointed at Budget as UK economic growth slows
UK gross domestic product growth slowed down in the three months to September, as both the construction and service sectors grew but production output weighed.
Office for National Statistics figures on Friday showed the UK economy expanded by 0.1% over the third quarter, against the 0.5% growth seen previously.
This came as production output fell by 0.2% during the quarter, while the service and construction sectors grew by 0.1% and 0.8% respectively.
Confederation of British Industry economist Ben Jones noted “uncertainty ahead of the Budget probably played a big part” as decision-making slowed.
Though the economy was still expected to return “to a path of modest growth”, he added downside risks had increased.
“The Budget has set off warning lights for business,” Jones continued, “the hike in national insurance contributions alongside other increases to employers’ cost base will add to the burden on business.
“It is expected to trigger a more cautious approach to pay, hiring and investment as companies work through what it means for their own budgets.”
7.12am: Index to drop
Futures had the FTSE 100 falling 11 points to 8,068 ahead of Friday’s trading, as figures showed the UK economy grew slower than previously over the third quarter.
Gross domestic product was estimated to have increased by 0.1% over the three months to September, the Office for National Statistics said.
This marked a slowdown from the 0.5% growth seen over the second quarter and was below consensus expectations for a 0.2% uptick.
Elsewhere, Asian markets were mixed overnight, with China’s Shenzhen the biggest faller, down 2.6%.
Back in London, a quieter Friday was set to bring updates from the likes of Land Securities Group PLC (LSE:LAND) and Volex PLC (AIM:VLX).
5.00am: UK economy the focus on Friday
Friday brings a quieter day, with macroeconomic news set to be the focus as gross domestic product figures for the third quarter are released... Read more
Announcements due:
Interims: Land Securities Group PLC (LSE:LAND), Record PLC, Volex PLC (AIM:VLX)
US earnings: Alibaba Group Holding Limited
AGMs: Digitalbox PLC, Eurasia Mining PLC, MJ Gleeson PLC
Economic announcements: GDP (UK), Import and Export Price Indices (US), Retail Sales (US), Retail Sales Less Autos (US), Capacity Utilisation (US), Industrial Production (US), Business Inventories (US)