- FTSE 100 up 56 points
- GDP picks up in November
- BP to cut 4,700 jobs
3.58pm: FTSE 100 on course for another solid finish
London’s blue chips headed for another solid finish on Thursday after sluggish gross domestic product data raised the scope for an interest rate cut next month.
Come late trading, the FTSE 100 was up 56 points at 8,357, building on Wednesday’s sharp gain.
Thursday’s GDP figures, showing the economy grew by 0.1% in November, followed data highlighting moderating inflation last month.
Markets upped bets for a rate cut at the Bank of England’s February meeting as a result.
The FTSE 350 racked up a 0.7% gain on Thursday on the back of the figures, while London’s junior market also gained, with the AIM All-Share up 0.2%.
On the FTSE 100, property portal Rightmove PLC led the risers on Thursday, up 3.7%, ahead of the likes of Spirax Group PLC and Experian PLC.
JD Sports Fashion PLC headed the fallers with a 5.6% drop in the meantime, after warning on profit earlier in the week.
Taylor Wimpey PLC followed, slipping 4.0% following caution over growing Budget-related costs in an update earlier on Thursday.
Whitbread also sat among the fallers after updating on Thursday, dropping 3.0% on news of lower revenue in the third quarter.
3.39pm: Freedtrade crowdfunders slam IG takeover
Freetrade's early investors have reportedly lashed out over the stock-trading app’s sale to IG at a fraction of the value it had targeted in previous fundraising talks.
According to Sky News, shareholders had complained over the £160 million deal, which valued shares at 119p each.
Freetrade targeted a valuation of £700 million in 2022 through fundraising talks that failed to materialise, before later takeover discussions with JPMorgan were also abandoned.
“I feel completely robbed by Freetrade and will lose 87% of my investment as a result of this nonsensical deal,” one investor, cited by Sky News, said.
“Crowdfunders like me supported them in their growth journey and now they have dropped us like a stone when they no longer need us.”
Investors were also said to have hit out at costs associated with the being deducted from the proceeds to shareholders... Read more
2.59pm: Wall Street subdued at open
Wall Street faced a subdued start on Thursday as stocks failed to build on a rally following news of easing core inflation earlier in the week.
The Dow Jones fell 0.2% as trading got underway, while the Nasdaq and S&P 500 dipped below the mark.
After sharp gains on Wednesday figures showing a surprise drop in core inflation throughout December, declines followed underwhelming retail sales figures on Thursday.
Sales climbed by 0.4% last month to US$729.2 billion, according to the US Census Bureau, slowing against November’s 0.8% and missing expectations for a 0.6% increase.
Among companies, Morgan Stanley and Bank of America Corp were among Wall Street firms to report on Thursday.
Shares in the former edged up 1.4% early on after it unveiled almost doubled net income of US$3.7 billion in the fourth quarter and record full-year revenue of US$61.8 billion.
Bank of America was flat in the meantime, despite expectation-beating net income of US$6.7 billion, or US$0.82 a share, in the fourth quarter.
2.44pm: Mortgage defaults increase for eight consecutive quarter
The number of households defaulting on their mortgages has climbed for an eighth successive quarter, according to banks.
Default rates on secured loans “increased slightly” over the final quarter of last year, a survey released by the Bank of England on Thursday found.
Losses for banks related to defaults also increased as a result and were expected to rise further in the first quarter of this year.
Rising numbers of mortgage defaults have coincided with hikes in interest rates to their highest since 2008 in recent years.
The fourth quarter’s increase meant mortgage defaults had risen consistently for two years straight and for the most prolonged period since the Bank of England’s survey began in 2007.
“This points to the financial strain on households as many are hit by higher mortgage rates in an environment which is still challenged by high cost of living and uncertain future interest rates,” KPMG UK and global financial services head Karim Haji said.
“Against a backdrop of weak UK growth and continued inflationary pressures, we may see defaults continue to rise in the months ahead.
“Recent shifts in expectations on when and by how much interest rates are likely to fall mean households might expect more financial pain for longer.”
1.45pm: US retail sales undershoot expectations
Retail sales across the United States grew slower than expected in December, figures showed on Friday.
According to the US Census Bureau, sales climbed by 0.4% month on month to US$729.2 billion.
This was against an upwardly revised 0.8% rise in November and below expectations for a 0.6% increase.
Sales growth also slowed from 4.1% to 3.9% in December on an annual basis.
Futures continued to point to a mixed start on Wall Street following the figures, with the Nasdaq seen up 0.3%, but S&P 500 and Dow Jones set to drop.
1.29pm: Burberry jumps as Cartier owner prompts luxury rally
Cartier owner Richemont fired up the jewellery sector after trouncing sales expectations for the quarter to end December 2024.
Having been worried that sales would continue the weak trends seen earlier in 2024, the luxury jewellery brand owner turned that on its head by reporting sales up 10% to €6.2 billion in the three months.
Market forecasts had been for 1% growth.
Shares in the Swiss group leapt 16% to Sfr161 on the news with rivals across the sector getting a read-through boost... Read more
LVMH and Gucci owner Kering both rose 7%, while UK-listed Burberry jumped 72p to 1,034p to site among the day’s FTSE 250 winners.
Overall, the FTSE 250 traded just above the mark at 20,340, while the FTSE 100 remained 49 points higher at 8,350.
12.46pm: Gold hits highest level in a month
Gold hit its highest price in a month on Thursday after abruptly rebounding from a sell-off following soft US inflation figures earlier in the week.
Thursday saw the spot prices climb as high as US$2,711 an ounce to hit levels last seen in mid-December.
Gold later receded to US$2,705, but remained up 0.67% for the day and by 3.5% since the turn of the year.
Hopes for a Federal Reserve rate cut this year were revived on Wednesday as figures showed an unexpected decline in core inflation over the course of December.
Gold had faced pressure on the back of the figures, stooping as low as US$2,679, before soon regaining to wipe off the decline into Wednesday.
“If there’s one word that perfectly encapsulates gold’s performance over the past month, and particularly since the New Year, it’s resilience,” Trade Nation analyst David Morrison said.
“Gold has managed to push higher despite continued dollar strength. This resilience was exactly what was witnessed last Friday following the stronger-than-expected payroll report.”
Panmure Liberum analysts added a solid backdrop had emerged for gold, with a “US rate cut cycle in play, ballooning US debt, a looming Trump-led tariff war, waning global economic activity”.
Precious metals miner Fresnillo PLC sat among the FTSE 100's biggest risers for the day, up 2.2%.
12.04pm: BP to axe 4,700 staff in cost-cutting drive
BP PLC is set to cut 5% of its global workforce in a bid to cut costs.
Some 4,700 staff are set to be laid off under the move, while 3,000 contractors will be axed, a Sky News-cited email from chief executive Murray Auchincloss said on Thursday.
“I understand and recognise the uncertainty this brings for everyone whose job may be at risk, and also the effect it can have on colleagues and teams,” he said.
“We have a range of support available, and please continue to show care for each other, be considerate, and keep putting safety first - especially during times of change.”
Cuts follow plans unveiled by the oil giant last year to save US$2 billion (£1.6 billion) by the end of 2026.
BP employs around 90,000 people globally and 14,000 workers in the UK, with the areas targeted by the cuts not specified.
11.44am: Nasdaq, S&P 500 to extend gains after soft core inflation reading
Wall Street appeared on course for a mixed start on Thursday after Wednesday’s rally in the wake of soft core inflation figures for December.
Futures had the Nasdaq adding another 0.5% and the S&P 500 rising by 0.3% ahead of the opening bell.
Each had surged by 2.5% and 1.8% respectively on Wednesday after news of the surprise drop in core inflation last month.
The Dow Jones was seen reversing 0.2% in the meantime, after a 1.7% gain on Wednesday.
Retail sales figures for December came into focus on Thursday, with markets anticipating a 0.6% increase following the previous month’s 0.7% uptick.
11.12am: Antofagasta among risers after flagging stronger production
Antofagasta PLC gained 3.9% gain on Thursday to sit among the FTSE 100’s biggest risers after detailing stronger copper production in its latest quarter.
Some 200.3 kilotons of copper were produced in the fourth quarter, up 11.9% on the third and taking the figure up 0.5% over the course of 2024.
Sales also grew 8.7% quarter on quarter, but were down 3.3% for the year, Antofagasta said in a statement.
Gold output surged 31.7% to 68.2 kilotons in the meantime, as molybdenum production also grew.
Production costs also dropped from US$1.62 to US$1.23 per pound of copper.
Guidance for 660,000 and 700,000 tonnes worth of production in 2025 was laid out, alongside anticipations for lower net cash costs and capital expenditure of $3.9 billion.
Other miners, Fresnillo PLC, Endeavour Mining PLC and Glencore PLC also climbed on Thursday, in line with an increase for copper and gold prices... Read more
10.42am: Bond yields drop further after sluggish GDP
Bond yields fell further on Thursday after ONS figures showed positive, albeit sluggish, gross domestic product growth in November.
Rates on UK 10-year gilts dropped by three basis points to 4.70%, as 30-year yields also fell by three basis points to 5.27%.
Both had fallen sharply on the back of Wednesday’s inflation figures showing a cooling rate of price rises throughout December.
“In the aftermath of the softer inflation data and the subdued November GDP reading, the market is moving closer towards the Bank of England’s expectation of four rate cuts for this year,” XTB analyst Kathleen Brooks noted.
“The market now expects UK interest rates to end 2025 at 4.11%, this had been 4.42% earlier this week.”
10.01am: Bitcoin drops after hitting $100,000 again
Bitcoin dropped on Thursday after reaching the US$100,000 dollar mark once again on news of cooling core US inflation last month.
Bitcoin was trading down 1.2% for the day at US$99,232 come Thursday, as Wednesday’s gains wore off.
Figures on Wednesday had shown core US inflation unexpectedly subsided in December, in turn fueling risk appetite among investors and buoying the cryptocurrency.
Smaller coins Ethereum and Ripple followed suit, having also headed higher on the inflation data before receding into Thursday.
Ethereum was down 3.3% at US$3,333 on Thursday, with Ripple off 2.4% at US$3.07.
Attention has since turned to Donald Trump’s inauguration on Monday, after the president-elect’s pledges to support the crypto market during his campaign.
9.37am: Sluggish economic growth further opens door for February rate cut
Though gross domestic product picked up in November, analysts have noted another reading of sluggish growth has all but set in stone a February interest rate cut.
GDP expanded by 0.1% in November, versus an unexpected 0.1% contraction in October, undershooting market expectations, ONS figures showed on Thursday.
Following easing inflation in December, Pantheon Macro analysts noted the Bank of England would now “certainly cut rates in February”.
Consumer spending seemed to remain solid though, Pantheon said, with risks to wider growth ahead surrounding businesses in the wake of the Budget and incoming US president Donald Trump.
February’s rate cut would also likely be coupled with caution from the Bank of England about rebounding price rises over the rest of the year, analysts said.
“With inflation heading above 3% in April and likely to stay there for most of the rest of 2025 we think the Monetary Policy Committee will have to give more hawkish guidance about the pace of rate cuts after February, paring back to signalling two to three cuts this year.”
9.21am: Trustpilot, Deliveroo help buoy FTSE 250
Trustpilot Group PLC and Deliveroo PLC helped buoy the FTSE 250 on Thursday morning, after both surged on the back of updates.
Reviewing firm Trustpilot jumped 12.9% after signalling a rise in annual recurring revenue from US$197 million to US$231 million on booming US and UK bookings... Read more
Deliveroo surged 5.6% in the meantime, having unveiled a 5% rise in orders across the UK and Ireland to 43.1 million over the fourth quarter… Read more
Gross transaction value (GTV) in these regions climbed 9% to £1.2 billion, while total GTV, including operations in France, Italy, and the UAE, rose 7% to £2 billion.
Elsewhere on the index, Burberry Group PLC and Watches of Switzerland also bounced, pushing the FTSE 250 up 0.2% to 20,377.
The FTSE 100 added 50 points, or 0.6%, to reach 8,352, as miners led the winners on the index.
Among smaller companies, Youngs & Co climbed 4.0% as it became the latest pub chain to report bumper trading over the Christmas period.
Trading went “exceptionally well”, it said, with sales in the five weeks to 13 January up by 11.6% on a like-for-like basis… Read more
8.55am: Hindenburg Research to be shut down
Short-seller Hindenburg Research, known for frequently outing financial entities over wrongdoings, is to be shut down.
Founder Nate Anderson said on Wednesday that Hindenburg would be disbanded after eight years, following numerous reports highlighting accusations against firms in India and abroad.
“Nearly 100 individuals have been charged civilly or criminally by regulators at least in part through our work, including billionaires and oligarchs,” he said.
“We shook some empires that we felt needed shaking.”
Hindenburg in 2023 targeted Adani Group over alleged stock manipulation and accounting fraud, sparking US$108 billion to be wiped from its market value in the immediate aftermath.
Misleading information from electric truck maker Nikola Corp was also highlighted in 2020, with the company's founder, Trevon Milton, later being convicted of fraud.
"Over the next six months or so I plan to work on a series of materials and videos to open-source every aspect of our model and how we conduct our investigations,” Anderson added.
8.40am: Dunelm dips after flagging cost pressures
Dunelm Group PLC has reported stronger sales but flagged concerns around growing costs ahead.
Sales climbed by 1.6% in the second quarter to £490 million, taking first-half revenue up 2.4% to £894 million, Dunelm said on Thursday.
Improvement came despite a “challenging market,” Dunelm added, leaving full-year pre-tax profit in line to sit within the consensus range of £207 million to £217 million.
Dunelm flagged growing costs on the back of last October’s Budget though, pointing to “initiatives to drive productivity” in order to mitigate pressures.
“Whilst the national living wage increase was largely anticipated, the increase in employer national insurance contributions is an additional cost headwind,” it said... Read more
Shares fell 3.4% to 995p on Thursday.
8.19am: FTSE 100 jumps as GDP nudges up
The FTSE 100 racked up a further gain as trading got underway on Thursday, jumping by 51 points to 8,352, following news the UK economy picked up in November
ONS figures earlier on showed the UK economy grew by 0.1% over the month, following a surprised 0.1% contraction a month earlier.
“Although this was shy of expectations it still signals some resilience, with services and construction pulling their weight despite a manufacturing slump,” Hargreaves Lansdown analyst Matt Britzman said.
“With inflation easing and sluggish economic growth, a 25 basis point rate cut by the Bank of England in February seems increasingly likely.”
Antofagasta PLC led the early risers with a 2.7% gain, ahead of Endeavour Mining PLC and Rolls-Royce Holdings PLC.
JD Sports Fashion PLC topped the fallers in the meantime, dropping by 3.3% after a profit warning earlier in the week, while Pearson PLC and Taylor Wimpey PLC were also among those to dip.
8.09am: Taylor Wimpey signals cost pressure ahead
Taylor Wimpey PLC has reported in-line full-year trading but flagged growing cost pressures in 2025.
Completions were towards the top-end of guidance at 10,593, against 10,848 in 2023, over the year just gone, the FTSE 100-listed housebuilder reported on Thursday.
Operating profit was set to meet guidance of £416 million, on a roughly 19% gross margin, after average private selling prices dipped from £370,000 to £356,000 year on year.
Forward orders sat at £1.995 billion come the year-end, up from £1.772 billion in late 2023, reflecting deals on 7,312 new homes.
However, pricing on future orders was down 0.5% due to stretched affordability in the South of England, while cost pressures were seen mounting into the new year.
“Whilst price negotiations for 2025 are ongoing, we anticipate increased build cost pressure as a result of the changed economic backdrop, including as suppliers seek to factor in the impacts of the recent UK Budget,” Taylor Wimpey said.
Taylor Wimpey added it remained “well placed” to grow volumes in 2025, “dependent on the evolution of mortgage rates and their impact on affordability”.
Shares dropped 2.3% on Thursday.
7.50am: Premier Inn owner flags lower UK sales but sticks to guidance
Whitbread PLC has doubled down on guidance after improved trading in Germany but a drop in UK sales over the third quarter.
Group sales declined by 1% on a like-for-like basis to £763 million in the three months to November, on lower accommodation and flat and food and beverage revenue, Whitbread said Thursday.
Like-for-like sales in the UK dropped by 3%, as revenue per room slipped 3%, with turnover up 51% against the 2020 financial year, prior to the pandemic.
Revenue surged 20% across Whitbread’s German business in the meantime, as revenue per room jumped 28%.
Whitbread also flagged net UK inflation of 2% to 3% on its £1.7 billion cost base ahead on the back of tax hikes in last October’s Budget... Read more
7.14am: Stocks set for further gains as GDP picks up
Futures pointed to another positive start for London’s blue chips as news broke that the UK economy grew in November.
The FTSE 100 was seen 26 points higher at 8,329, having jumped by 99 points on Wednesday after data pointed to cooling inflation in December.
According to the Office for National Statistics, gross domestic product is estimated to have grown by 0.1% in November, after October’s surprise 0.1% contraction.
Services and construction output grew by 0.1% and 0.4% respectively, while the production sector contracted by 0.4% during the month.
GDP remained unchanged over the three months to November, while the economy grew by 1.0% year on year.
Expectations had been for growth of 0.2% in November, 1.3% on an annual basis and an unchanged reading for the three months.
Overnight, Asian markets largely enjoyed gains, in line with a bumper session on Wall Street after figures showed subsiding core US inflation for December.
5.00am: Thursday's schedule
Taylor Wimpey and Whitbread will be among those to update on Thursday, while gross domestic product data for November will be in focus after a surprise contraction in October.
Taylor Wimpey will need to distance itself from cost concerns raised by rivals... Read more
Progress will need to be shown across Whitbread's business, according to analysts... Read more
Announcements due:
Trading updates: Bakkavor Group PLC, Dunelm Group PLC, Harbour Energy PLC, Rathbones Group PLC, Taylor Wimpey PLC, Whitbread PLC, Antofagasta PLC
Finals: Safestore Holdings PLC
US earnings: Bank of America Corp, Morgan Stanley, Taiwan Semiconductor Manufacturing Co Ltd, UnitedHealth Group Inc
AGMs: Cardiff Property PLC, Learning Technologies Group PLC, Mobile Streams PLC, Smiths News PLC
Economic announcements: Gross Domestic Product (UK), Balance of trade (UK), Index of Services (UK), Industrial Production (UK), Manufacturing Production (UK), Initial Jobless Claims (US), Retail Sales (US)
Ex-dividends to reduce FTSE 100 by: 2.45