- FTSE 100 closes up 16 points
- easyJet profit surges
- M&B latest pub to warn on Budget
4.46pm: London stands alone in green
London's blue-chip index finished 16 points or 0.2% higher at 8,274.75 on Wednesday.
It was the only European stock benchmark to close in the green, with France's CAC 40 tumbling 0.7% to almost a four-month low, and Germany's, Spain's and Italy's gauges down 0.2% to 0.3%.
Supermarkets, property and building companies and utilities were the ones leading the risers.
4.03pm: FTSE 100 set for flattish close
The FTSE 100 looks set to just above flat after picking up from an intraday low in mid-afternoon trades.
In the final 30 minutes, the blue-chip index was trading at 8,267, or around eight points higher from yesterday’s close.
Today’s biggest fallers include DS Smith PLC (LSE:SMDS), Entain PLC (LSE:ENT), Fresnillo PLC (LSE:FRES) and Diploma PLC (LSE:DPLM), all of which penned low-single-digit losses.
Housebuilder Vistry Group PLC (LSE:VTY) led the risers with a 4.5% gain.
In Europe, France's CAC40 sank to a fresh four-month low amid soaring government borrowing costs.
"French politics has been out of the headlines for a while, but the government looks at risk as it attempts to pass a budget," said market analyst Chris Beauchamp at IG.
"European stocks as a whole have failed to keep pace with the US of late, but in France the poor performance of the luxury sector and worries about the political outlook have caused the gap to become a chasm.
"A repeat of the eurozone crisis is unlikely, but ECB intervention seems to be a likelihood if the situation worsens."
3.57pm: Dr Martens set to unveil loss
Dr Martens PLC (LSE:DOCS) first-half results tomorrow will likely be more about its outlook as a decline in sales and swing to loss are expected.
According to Deutsche Bank analysts, revenue is set to have fallen by 18% over the first half, pushing the shoemaker to a “well-flagged” pre-tax loss of £34 million.
Dr Martens had previously signalled trading over the year would be “very second-half weighted”, leaving focus on guidance ahead...read more
3.31pm: US inflation back on the rise
US inflation is rising once again, according to the latest data from the US Bureau of Economic Analysis.
On an annual basis, the personal consumption expenditure (PCE) inflation rate, which is the US Federal Reserve’s preferred inflation gauge, increased to 2.3%, up from the three-year low of 2.1% reported in September.
Similarly, the core inflation rate increased to 2.8% from 2.7% year-on-year.
The US Bureau of Economic Analysis partially attributed the rise to base effects from the prior year, although the broader trend of slowing disinflation is expected to persist.
On a month-on-month basis, service prices rose by 0.4% in October, while goods prices decreased 0.1%.
Food prices were unchanged and energy prices decreased 0.1%.
On the New York stock market, the Nasdaq 100 has plummeted more than 200 points, wiping a full percentage point from the index.
3.15pm: St James’s Place to bow out of property market after 20 years
Blue-chip British wealth manager St James’s Place is shuttering all three of its property funds in response to a tepid post-Covid recovery in the UK property market.
SJP’s Property Unit Trust, Pension and Life funds, which currently hold around £1.8 billion worth of assets, will be wound down over the next couple of years, SJP said in a statement.
The fund was suspended in October 2023, and following a reviewed of "all options available" SJP concluded the best course of action is to wind down the funds over a period of time "to maximise value for our clients".
SJP shares added 1.5% on Wednesday afternoon.
2.47am: Nasdaq 100 plunges as London stages recovery
The Nasdaq 100 plunged 120 points to 20,805, wiping nearly 0.6% from the tech-focused index, when US markets commenced trading this Wednesday.
Super Micro Computer Inc (NASDAQ:SMCI) is once again dragging the index with a 10% fall, while Intel Corp (NASDAQ:INTC, ETR:INL) is off 3.3% and Warner Bros Discovery Inc (NASDAQ:WBD, ETR:J5A) 2.8%.
Meanwhile, the Dow Jones Industrial Average bounced 0.15% higher to 44,925, while the broader S&P 500 index is down 0.1% to 6,015.
Despite the mixed open, the latest US GDP data showed a resilient economy in the third quarter with economic growth hitting the 2.8% forecast.
Markets are now awaiting inflation data due later today.
Back in London, the FTSE 100 index has staged an afternoon recovery.
From an intraday low of 8,238, the blue-chip index has recovered to 8,276, making for a 17-point gain from yesterday’s close.
2.22pm: US economic growth matches forecasts
The US Bureau of Economic Analysis has published some gross domestic product (GDP) figures ahead of today's inflation print.
GDP grew at an annualised rate of 2.8% in the third quarter of 2024, matching forecasts and following a 3% increase in the second quarter.
GDP growth was driven by higher consumer spending, exports, federal government spending, and nonresidential fixed investment.
However, the pace of expansion slowed due to declines in private inventory investment and residential fixed investment.
In current-dollar terms, GDP rose by 4.7%, amounting to $29.35 trillion, reflecting an upward revision of $4.4 billion from the previous estimate.
The price index for gross domestic purchases increased by 1.9%, up slightly from the earlier projection.
2.12pm: Footsie hits intraday low
The FTSE 100 has dipped 17 points to an intraday low of 8,241.
easyJet is currently down 1.7% despite trending in the green all morning following a solid annual earnings print.
Other major fallers include WPP PLC (LSE:WPP) (off 1.8%); Diageo PLC (LSE:DGE) (off 1.3%); and HSBC (off 1%).
1.53pm: easyJet has a re-rating opportunity on horizon - analysts
City analysts roundly agreed that budget airline easyJet plc’s yearly revenues came in slightly below expectations, but this was sufficiently offset by superior profit metrics.
The FTSE 100-listed carrier’s pre-tax profit soared 34% to £610 million over the year to September on the back of a 14% increase in revenue to £9.31 billion.
“Compared to our forecasts, revenue was slightly light but costs slightly better,” said Panmure Liberum, however: “Within the latter, other income was better than we had forecast.
“This includes items such as supplier compensation and the sale of surplus spare parts, so we are uncertain about the sustainability of this income.”
Panmure Liberum gave the stock a buy rating with a 660p price target.
Investment bank Jefferies called the revenue result a “small miss” but agreed that profit before tax hit the mark.
Jefferies analysts stated: “We see a re-rating opportunity as easyJet benefits from a growing package holiday business, fleet renewal and self-help opportunities through optimising winter trading and ancillaries.”
easyJet’s strong balance sheet and net cash position “leaves room for upside to dividends in the next two years”, they added.
easyJet shares are currently up 0.15% to 541.2p.
1.16pm: South West Water owner Pennon owner up 4% despite deep loss
FTSE 250-listed water firm Pennon Group PLC (LSE:PNN, OTC:PEGRY), which owns Devon and Cornwall supplier South West Water, is up nearly 5% despite detailing an £18.6 million underlying loss before tax in the six months to 30 September.
The loss is in sharp contrast to the £9.1 million underlying profit penned in last year’s interim.
Pennon attributed the loss to expenses tied to the cryptosporidium water quality incident that occurred in Brixham over the summer.
The company also incurred expenses tied to its acquisition of lossmaking Sutton and East Surrey Group (SES).
“We are focused on reducing interest costs and right-sizing the cost base to improve profitability (at SES),” said Pennon.
Pennon increased the interim dividend by 4.6% year on year to 14.69p nonetheless.
Pennon is currently negotiating with water regulator Ofwat for an increase to its consumer bills, which Pennon says is necessary to fund crucial infrastructure upgrades.
Ofwat is expected to make a decision on 19 December.
“A loss-making set of results underlines the need for change in the business and this is not going to happen overnight. Given the scale of negative publicity around the company, there is no more room for mistakes,” said Dan Coatsworth, investment analyst at AJ Bell, of the results.
12.46pm: Former Wizz Air exec fined over 115 restricted share trades
The Financial Conduct Authority (FCA) has fined András Sebők, former chief supply chain officer at Wizz Air Holdings PLC (AIM:WIZZ), £123,500 for trading company shares during restricted periods and failing to disclose the trades.
Sebők traded shares during the 30-day closed periods ahead of Wizz Air’s financial results announcements and failed to notify both the FCA and the company of his trades within three business days.
The violations involved 115 trades worth over £4 million.
This marks the FCA’s first fine under Article 19(11) of the Market Abuse Regulations (MAR) for closed-period trading and the second for failing to disclose trades under Article 19(1).
Steve Smart, the FCA’s executive director of enforcement and market oversight, commented: "Trust and transparency are vital to keeping our markets clean. Senior executives, like Mr Sebők, must report their trading and comply with the restrictions on trading during closed periods or they risk undermining the integrity of the market."
Sebők agreed to settle the matter, receiving a 30% reduction on the penalty.
12.24pm: Bitcoin reverting to its old ways
Bitcoin is showcasing a classic slice of volatility having emerged from its latest banana zone.
The world’s largest cryptocurrency was slapped 5% lower this money and another 1.2% yesterday before recovering those Tuesday losses this morning.
It brings that BTC/USD pair to $93,200 at the time of writing.
Bitcoin’s bout of yo-yo-ing follows a breakneck rally that saw it soar nearly 50% in the weeks following the US election to an all-time high just shy of $100,000.
The rally was chalked up to the ‘Trump trade’ effect as president-elect Donald Trump swept into power on a pro-crypto, pro-bitcoin platform.
These jumbo gains proved too alluring for some traders, to cash out their profits just before bitcoin could secure the $100,000 price point for the first time in history.
Nonetheless, the BTC/USD pair remains exceptionally well bid in with a year-to-date gain of 121%
Bitcoin’s year-to-date performance – Source: tradingview.com
Back to the stock market and the FTSE 100 index is currently nine points higher at 8,267.
12.06pm: Pets at Home says price hikes aren’t ‘a given’ after Budget
Pets at Home Group PLC (LSE:PETS) boss Lyssa McGowan has said a surge in costs next year on the back of the Budget will not necessarily see consumers hit with higher prices.
Discussing higher employer national insurance and minimum wage increases, which Pets at Home reported would push up costs by £18 million next year, she said the retailer had no plans to shift its strategy.
Higher costs from last year’s minimum wage hike had been absorbed, McGowan pointed out.
“£18 million, some of which was unexpected, is a lot of money, but like all retailers we are looking at all avenues to ameliorate that,” she added.
“It is not a given at all that we will have to put up prices.”
The pet shop chain had also signalled “subdued” market conditions in results on Wednesday morning, prompting a cut to full-year profit guidance.
Shares tumbled 13% as a result.
11.46am: FTSE 100 gives up gains
London’s blue chips headed into the red as the afternoon approached, having given up a 19-point gain seen earlier on.
A lack of any major movers saw Premier Inn over Whitbread PLC (LSE:WTB) emerged as the day’s biggest loser with a 1.3% drop.
Anglo American PLC (LSE:AAL) continued to lead risers in the meantime, up 2.0%, after announcing the sale of a 6.6% stake in its platinum business for US$527 million.
Overall, the index sat one point higher at 8,260.
11.35am: Nasdaq to lead Wall Street lower as inflation figures loom
Wall Street looked on course for a negative start on Wednesday as traders braced for personal consumption expenditure (PCE) figures for October.
Futures had the Nasdaq down 0.4% ahead of the opening bell, while the S&P 500 and Dow Jones were seen 0.2% and 0.1% lower respectively.
Core PCE, which is considered the Federal Reserve’s preferred measure of inflation, is expected to have ticked up by 0.3% between September and October and by 2.8% on an annual basis, against 2.7% previously.
Given this would be ahead of Fed forecasts, Tickmill Group partner Patrick Munnelly said, the rise would support expectations for interest rates to be held next month.
“Disinflation appears to have stopped according to recent forecasts,” Munnelly noted, “however, markets believe the Fed still views policy settings as too restrictive”.
A second estimate for third quarter gross domestic product was also on the cards on Wednesday, alongside the likes of initial jobless claims figures.
11.13am: BT Consumer division boss to exit
BT Group PLC (LSE:BT.A)’s Marc Allera is to step down as the broadband firm’s consumer division chief executive after seven years in the role.
Allera will hand over the reins to Claire Gillies in March, BT said on Wednesday, having missed out on the company’s top role as Allison Kirby was appointed last summer.
“Marc has been an outstanding leader of BT’s consumer unit,” Kirby commented in a statement, highlighting his role in integrating network operator EE and setting up BT Sport.
He had joined the company as BT bought EE for £12.5 billion in 2015, before being promoted two years later, with his departure coinciding with efforts by the company to slash costs.
It also comes as the likes of Vodafone’s merger with Three and Virgin Media O2’s split to business and consumer units are expected to prompt an influx of leadership changes in the sector.
“I’m proud to have led an incredible team through enormous change in the market, and the evolution of the company for the past nine years,” Allera commented.
“While I’m looking forward to the next chapter, I’ll be leaving with great memories of my time at BT and EE.”
Shares climbed 1.7% on Wednesday.
10.10am: Tesco, Sainsbury’s gain on loyalty card probe review ‘relief’
Tesco PLC (LSE:TSCO) and J Sainsbury PLC (LSE:SBRY) shares ticked up on Wednesday after a review by the UK’s competition watchdog found loyalty cards schemes offered “genuine” savings.
The Competition and Markets Authority said there was “very little evidence” of supermarkets inflating prices to make loyalty promotions seem more attractive.
“Shoppers who are members of a loyalty scheme can almost always make a genuine saving on the usual price by buying loyalty priced products,” a statement said.
“This should give shoppers confidence that they are not being treated unfairly.”
Interim consumer protection executive director George Lusty noted the deep dive into 50,000 products had come against a backdrop of distrust in supermarket loyalty schemes.
“While these discounts are legitimate, our review has shown that loyalty prices aren’t always the cheapest option, so shopping around is still key,” Lusty added, though.
However, AJ Bell analyst Dan Coatsworth said the findings would offer “relief” that the regulator wasn’t “kicking up a fuss about loyalty schemes”.
“Companies like Tesco and Sainsbury’s have been going hard on loyalty schemes in a bid to attract more shoppers and as part of their fight against discounters Aldi and Lidl.
“Had the CMA found improper behaviour around loyalty promotions, it could have thrown a spanner in the works and derailed one of the main cogs in their operating strategy.”
Tesco climbed 1.3% on Wednesday, as Sainsbury’s gained 0.4%.
9.46am: Aston Martin and Pets at Home among FTSE 250 fallers
Pets at Home Group PLC (LSE:PETS) and Aston Martin Lagonda Global Holdings PLC (LSE:AML) sat among the FTSE 250’s big fallers on Wednesday morning.
Down almost 10%, Pets at Home had cut its full-year profit guidance on what it called a “subdued” retail market... Read more
Costs were set to spike by £18 million from 2026 in the wake of the Budget and as minimum wages also increased, Pets at Home added.
Aston Martin’s 5% drop in the meantime came after news of a £210 million funding round failed to divert attention from its second profit warning in as many months... Read more
Supply issues were set to hit production of its high-end Valiant model, the company had warned on Tuesday afternoon, pushing several deliveries into next year and weighing on profit.
Johnson Matthey PLC (LSE:JMAT) also sat among fallers on the index, after the chemicals and specialist technologies firm posted a drop in first-half sales and profits.
Overall, the index gained 0.3%, while London’s FTSE 100 rose 12 points, or 0.2%.
9.29am: Norsk Hydro to axe hydrogen and battery projects
Norway’s Norsk Hydro will no longer fund its green hydrogen and battery businesses due to challenging market conditions.
“Battery materials and green hydrogen will no longer be strategic growth areas for Hydro,” the hydropower and aluminium producer said on Wednesday.
The business units will rather be phased out over time, after the battery division was set up in 2017.
Battery recycling business Hydrovolt, which was set up as a joint venture with Northvolt in 2020, will continue to be supported under the plan, Norsk Hydro said... Read more
9.10am: EV rules weighed by government as Vauxhall shuts factory
Britain's electric vehicle mandate could be dialled down as companies grapple to hit targets against lacklustre demand.
Britain’s government on Tuesday firmed up plans to consult on the mandate, coinciding with news Vauxhall would close its factory in Luton, risking 1,100 jobs.
Business secretary Jonathan Reynolds told companies that a consultation on the rules would be fast-tracked at trade body the Society of Motor Manufacturers & Traders’ annual dinner.
"We get it. We get the seriousness of the situation and we get the urgency,” he said.
The rules mean carmakers risk fines if 22% of sales are not made up of electric models this year, with the figure set to rise annually to 100% by 2035... Read more
8.47am: Trump tariffs threaten UK economic growth - BoE official
Bank of England deputy governor Clare Lombardelli has signalled tariffs under Donald Trump’s presidency threaten economic growth in the likes of the UK.
Trump on Monday evening posted plans on social media to hit Canada and Mexico with tariffs of 25% upon taking office in January.
He also separately warned of measures for Chinese goods, with the threats buoying fears that tariffs could stretch to the likes of Europe.
Lombardelli in response warned growth across foreign nations could take a beating in the short term and that long-term productivity could also be hit.
“I don’t want to speculate on the specifics but we know barriers to trade are not a good thing, whether they are tariffs or regulatory or others,” she told the Financial Times.
“Whether you are an economic historian, an economic theorist or a data-driven economist, the impact is clear in terms of its direction. In terms of its size, that depends on the circumstances.”
8.31am: Just Eat to delist from London Stock Exchange
Just Eat Takeaway.com NV (LSE:JET, NASDAQ:GRUB) has become the latest high-profile company to announce plans to delist from the London Stock Exchange.
Citing ‘complexity’ and ‘administrative burden’, the Denmark-founded company unveiled the decision in a statement on Wednesday… Read more
8.20am: FTSE 100 opens higher
London’s blue-chip index overcame an expected decline to tick up 8 points to 8,266 as trading got underway on Wednesday.
easyJet PLC led risers early on, climbing 2.6% after reporting a profit jumped by more than a third over the course of the year.
Anglo American PLC (LSE:AAL) also gained by over 2.3% following news it had sold a 6.6% stake in its platinum business for proceeds of US$527 million through a share placing.
Banks were among early fallers in the meantime, with Barclays PLC (LSE:BARC) and NatWest Group PLC (LSE:NWG) leading the way with declines of 1.0% and 0.9% respectively.
8.10am: Mitchells & Butlers warns of £100mln Budget hit
Mitchells & Butlers PLC (LSE:MAB) has become the latest to warn over surging costs after last month's Budget after reporting a jump in full-year profit.
Cost headwinds for the year ahead were guided at £100 million in final results on Wednesday, reflecting increased minimum wages and employer national insurance (NI).
“Against a benign backdrop of general inflation, by far the most significant increase is now expected to be in relation to labour costs,” the pub chain said, adding this would increase its current cost base by 5%.
Mitchells & Butlers also reported a 41.2% increase in operating profit to £312 million for the year just gone, as revenue ticked up 4.3% to £2.6 billion... Read more
7.47am: easyJet profit up a third on record summer
easyJet PLC's profit surged by over a third over this year, aided by a record summer period and boom in its holiday business.
Reported pre-tax profit soared 34% to £610 million over the year to September on the back of a 14% increase in revenue to £9.31 billion.
Some 89.68 million passengers flew with the airline over the year, against 82.75 million in 2023, as capacity grew 8% to 100.45 million seats and load factors remained at 89.3%.
easyJet’s holiday arm recorded a 54% jump in pre-tax profit to £190 million, while profit per seat jumped 24% to £6.08 driven by higher inflight spending.
A 12.1p dividend per share was recommended, against 2023’s 4.5p, on the results... Read more
7.14am: Stocks to fall further
Futures had the FTSE 100 moving 4 points lower ahead of Wednesday’s opening, threatening a further decline after Tuesday’s 33-point drop.
Stocks came under pressure on Tuesday following a social media post by president-elect Donald Trump threatening tariffs for Mexico, Canada and China once he took office.
Asian markets had also dropped on the threats, with Tuesday evening bringing some brighter fortunes as Chinese indices regained ground.
News of a ceasefire between Israel and Hezbollah also broke late on Tuesday, with easing fears around the Middle East aiding gains for US markets and pushing oil lower.
5.00am: easyJet among those to report
Wednesday brings easyJet's final results, alongside figures from the likes of Pets at Home.
Eyes will be on easyJet's outlook for travel demand in boss Johan Lundgren's parting results... Read more
Announcements due:
Interims: Cordiant Digital Infrastructure Ltd (LSE:CORD), Iomart Group, Motorpoint PLC, Pets at Home Group PLC (LSE:PETS)
Finals: Auction Technology Group PLC (LSE:ATG), Focusrite PLC (AIM:TUNE), easyJet PLC
AGMs: Altona Rare Earths PLC (LSE:REE), European Metals Holdings Limited, Neometals Ltd (ASX:NMT, OTC:NMTAY, AIM:NMT), Renishaw PLC (LSE:RSW), Seeing Machines Ltd (AIM:SEE, OTC:SEEMF), Transense Technologies (AIM:TRT) PLC
Economic announcements: BRC Shop Price (UK), MBA Mortgage Applications (US), Balance of Payments (US), Durable Goods Orders (US), Gross Domestic Product (US), Core PCE Price Index (US), Personal Spending (US), Wholesales Inventories (US), Pending Homes Sales (US), Crude Oil Inventories (US)