- FTSE 100 rises 20 points at 8,565
- Primark growth outlook cut by AB Foods
- Sainsbury's to axe 3,000 jobs
4.50pm: FTSE 100 racks up another record closing high
London’s blue chips racked up another record closing high on Thursday, with the FTSE 100 ending the day 20 points higher at 8,565.
4.17pm: FTSE notches new high, with housebuilders in the lead, oiler hit by Trump
The FTSE 100 has floated higher as the afternoon has progressed, rising 0.2% having been paddling in the red for most of the morning.
In the past hour it ticked up to a new intra-day record high of 8,572.5.
Housebuilders are topping the leaderboard of the blue-chip index, with Persimmon PLC up over 3%, followed by 2%-plus gains for Taylor Wimpey PLC and Barratt Redrow PLC.
Banks are also among the risers, with NatWest Group PLC the highest climber.
Looking at the bond market, it looks like yields on shorter-end gilts are falling more than those at the longer end, with the 2yr and 5yr down a few basis points.
Shell PLC and BP PLC have both just dived after Donald Trump said he will ask OPEC and Saudi Arabia to lower oil prices, sending Brent crude down to around a two-week low of $78 a barrel.
In a video conferenced speech to the World Economic Forum the US President said he was disappointed they hadn't acted already, arguing that doing so would have pressured Russia to end its war in Ukraine.
Meanwhile, the FTSE 250 is down 0.3% but the rest of Europe is on the up, with the DAX up 0.5% and setting its own new highs, while France's, Spain's and Italy's benchmarks all up around 0.7%
The Euro Stoxx 600 has added 0.3%.
4pm: Housebuilders top leaderboard
The housebuilding sector has experienced an upswing 2.2%, marking the most substantial daily increase in a week, says Patrick Munnelly, market analyst at Tickmill.
"Traders attribute this surge to the stabilisation of short-term UK interest rates, a positive UBS analysis, and regulatory changes in the infrastructure sector," he says.
The 2-year gilt yield declined to its lowest level since December 16 the previous day.
He notes that UBS advocated for the purchase of UK bond- and rate-sensitive assets, including the real estate sector, deemed cost-effective, oversold, and heavily impacted by index-linked yields.
Particularly, they highlighted the attractiveness of UK homebuilders, such as Persimmon, which are adjusting prices in anticipation of a 5% decrease in house prices.
"Furthermore, the UK government announced measures to streamline the process for major infrastructure projects by limiting the legal challenges that opposition groups can bring forth, creating a more conducive environment for key developments. These combined factors have instilled optimism in the homebuilding sector, reflecting a broader market sentiment that underscores the interplay of economic indicators, regulatory changes, and investor strategies shaping the industry landscape," Munnelly says.
3.45pm: Safe words for the non-doms
As well as the government's plans to loosen planning rules to overcome NIMBYs and protect motor finance lenders that have emerged in recent days, Chancellor Reeves also plans to abolish non-dom status but make a "tweak" to soften the blow from phasing out of tax benefits.
Reeves was also speaking in Davos at the World Economic Forum summit at an event hosted by the Wall Street Journal.
Changes will be made to upcoming legislation to increase the generosity of a facility to help non-doms repatriate their funds to the UK.
Reeves said: "We have been listening to the concerns that have been raised by the non-dom community."
3.33pm: Lloyds welcomes Chancellor's motor finance intervention
Lloyds Banking Group PLC (LSE:LLOY) boss Charlie Nunn has expressed his gratitude over the planned intervention by Chancellor Rachel Reeves in the motor finance case being examined by the Supreme Court.
In a speech in Davos, Nunn said "we welcome the government getting involved in the Supreme Court hearing," as he had concerns over whether the UK can "remain an investable location" for international investors and whether lenders could continue to support consumers wanting to buy cars if the court were to uphold a ruling than car loans had been mis-sold.
Reeves has applied to the Supreme Court asking to give evidence in the upcoming case, arguing that it could damage the industry and make it more difficult and expensive to take out loans.
Lloyds is one of the biggest lenders in the sector and has set aside around £450 million to cover potential compensation and other remedial costs.
2.47pm: Mixed start for Wall Street
US shares have got off to a mixed start.
The Dow Jones is the only one of the main indices in the green, up 0.3% thanks to gains for UnitedHealth Group, Goldman Sachs, Verizon and American Express.
Elsewhere the S&P 500 is just below flat and the Nasdaq Composite has fallen 0.4%, with the small and mid-cap Russell 2000 down by the same percentage.
Electronic Arts Inc is a big faller, down 14% (see below).
Among the mega caps, Nvidia, Microsoft, Amazon and Broadcom are in the red.
2.35pm: Botswana government close to getting larger stake in De Beers
A deal between Botswana's government and De Beers, which Anglo American PLC (LSE:AAL) is selling off as part of its break-up plan, is very close, according to the country's president.
Duma Boko said "we hope" the deal with De Beers will happen on Friday, and that Botswana and the company are in agreement "on most of the issues".
"We are looking to see if we can get a bigger slice of De Beers," he says, according to a Reuters report.
Boko says talks on taking a bigger stake are "going well".
2.12pm: UBS bullish on US stocks
US stocks have further room to rally despite mounting uncertainty, UBS strategists reckon.
Though near-term volatility is seen as likely while President Trump lays out his policy priorities following Monday’s inauguration, the Swiss bank highlighted a string of factors set to support growth, led by investment in artificial intelligence, spearheaded by the unveiling of the US$500 billion AI infrastructure 'Stargate' plan.
Ongoing US economic growth and interest rate cuts were also seen as boosting equities, in spite of inflationary pressure from sweeping tariffs threatened under Trump.
UBS believes Trump’s tariff measures "should not keep inflation from moderating further" and, while stressing that watching the new administration’s next moves closely was essential, "investors should not lose sight of the fundamentals that remain favorable for US equities".
“We continue to like technology, utilities, and financials, and see value in utilizing structured strategies to navigate near-term volatility.”
A string of big technology earnings are due in the coming weeks, including from Apple Inc and Meta Platforms Inc, which UBS expects to provide upward pressure too.
12.51pm: It's in the game, says EA
Electronic Arts Inc shares have tumbled 17% in pre-market trading after the video games publisher slashed guidance on a slowdown in its EA Sports FC franchise over the third quarter.
Newly released title ‘Dragon Age’ had also attracted 50% fewer players than expected, at 1.5 million, EA added.
Having guided for mid-single-digit growth in live services net bookings over the year, EA on Wednesday said a mid-single-digit decline was now expected.
12.05pm: Sainsbury's cutting 3,000 jobs
J Sainsbury PLC (LSE:SBRY) will axe 3,000 jobs as it shuts down in-store cafés as well as patisserie and pizza counters, which it said will "simplify the business".
The jobs cuts will include around 20% senior management roles over the next few months, the supermarket group said, having previously announced plans to cut £1 billion of costs.
It said cafes are being closed as "the majority of Sainsbury's most loyal shoppers" do not use them regularly.
The FTSE 100 grocer said the management rejig would "support faster decision making and drive performance", with all head office departments "reorganised to become dedicated to the different needs of the Sainsbury’s and Argos businesses, while creating fewer, bigger roles with clearer accountabilities".
Chief executive Simon Roberts said the chain had to had to make "tough choices" as it is "facing into a particularly challenging cost environment".
11.50am: Brokers warned about money laundering risks
The UK financial watchdog has warned about worrying "gaps" in brokers’ money laundering defences that could allow "tainted cash".
In a review of wholesale brokers, the Financial Conduct Authority said the sector was underestimating the risks of money laundering and that firms need to enhance their systems, controls and training.
This was a follow-up to a 'thematic review' in 2019, but the FCA said it identified areas where firms still needed to improve to protect against money laundering.
It found firms showed an "over-reliance on others" in the transaction chain to complete due diligence checks on customers, with "limited information sharing" between firms and insufficient awareness of regulator's code of practice to prevent money laundering through the markets.
"The flow of capital is an essential part of a thriving and competitive market, but tainted cash must not be allowed to pollute the rest," said Steve Smart, the FCA's joint executive director of enforcement and market oversight.
"For the UK financial services industry to grow, investors and institutions need to have trust in it. Integrity is vital for that, and firms play a key role in helping to detect criminal activity."
He said the report will help ensure firms act effectively against financial crime.
11.44am: Revolution Beauty falls to two-year low
Revolution Beauty Group PLC (AIM:REVB) shares are down 21% today to their lowest since late 2022 after a profit warning.
A trading update revealing a soft fourth quarter and delays to some bulky new contracts which will mean they will not be included in the financial year ending 28 February.
The company said it "continues to make encouraging progress expanding its relationships with existing and new retailers" and "the scale of these opportunities remains the same, and the launches into Walmart in the US and DM in Germany remain on track for February 2025".
Analysts at house broker Panmure Liberum cut their revenue and EBITDA forecasts but say while disappointing "it does not change the overall strategic direction as it "was always a transitionary year".
11.11am: Boomers bringing the bad vibes
Earlier this morning there was a pretty gloomy survey on consumer expectations released by the British Retail Consortium, with the January blues in full effect, mostly for older people.
Consumers' expectations of their personal financial situation, personal spending and the state of the economy over the next three months all worsened.
Views of personal finances dropped to a balance of -4 in January, down from -3 in December, with three-month views of the state of the economy worsened to -34 in January, down from -27 in December.
Expectations of personal spending on retail fell to -9 from -3, and on personal spending overall dropped to +4 from +11.
BRC chief Helen Dickinson said: "As the government warns of tough times ahead, it is little surprise that the public have caught the January blues."
She notes that concerns most pronounced among older generations, with two-thirds of Boomers (ie those aged between 60 and 80) expecting things to get worse.
Only Gen Z (roughly 18 to 30s) were expecting the economy to improve.
10.15am: JD Sports downgraded
JD Sports Fashion PLC (LSE:JD.) shares are down 3.1% after a downgrade from Citi to a 'neutral' rating, with a target price cut to 95p from 150p.
This follows the soft festive trading and 2025 earnings guidance downgrade, leading the US bank to cut like-for-like sales and organic sales forecasts to 0.0% and 5.0% for this year, from 1.1%/6.4% before, and also for 2026.
This reflects weak consumer sentiment and "a promotional environment that JD has chosen to limit participation in", particularly in North America and UK, which means Citi's gross margin forecast "therefore increases" 10 basis points to 47.8%.]
Meanwhile Citi upgraded Auto Trader Group PLC (LSE:AUTO), considering the outlook for online classifieds in 2025 and expecting "more challenged macro trends to support outperformance in autos classifieds".
Auto Trader was upgraded to 'buy' from 'neutral' and the target price lifted to 946p from 881p, driven by analysts' view that the company is "well-positioned to benefit from the current macro environment, as car shortages continue to drive demand, supporting car prices and used car dealers".
9.24am: Despite Herald win, 'battle is far from over' says analyst
After Herald Investment Trust (LSE:HRI) yesterday defeated the motions proposed by Saba Capital to replace its board, Stifel analyst Will Crighton say the 80% voter turnout is "quite strong" and will the six other investment trusts with votes still to come next month "will be pleased to see this, though efforts to engage private investors continue to be key".
The 2% rise of Herland shares is not much to shout about and the analyst thinks this "reflects the fact that Saba is unlikely to simply walk away now and sell into the market, and we think demands for tenders may come next".
Indeed, Saba boss Boaz Weinstein said there isn't a "we would walk-away scenario" irrespective if they win or lose in an interview with The Sunday Times last week, and a spokeswoman for Saba has since said "We will continue to pursue the changes that we believe are necessary".
With Saba still having a near 30% stake in the trust, Crighton says "the battle is still far from over".
9.12am: New developments in Frasers-Boohoo battle
Frasers Group PLC has launched a new barrage at Boohoo Group PLC, alleging that the online fast fashion retailer is making undisclosed payments to Umar Kamani, the son of founder Mahmud Kamani.
This represents an escalation in Mike Ashley's battle for control of the AIM-listed company.
Following Boohoo shareholders earlier this week rejecting a motion proposed by the Ashley-controlled Frasers to remove Kamani Snr from his role as executive vice chairman, the Sports Direct owner issued an open letter last night.
In the letter, among other things, Frasers says it "had been made aware of reports" that Kamani Jnr, from whom Boohoo bought the PrettyLittleThings brand, is still receiving £2 million annually in payments for consultancy services, which raises "conflict of interest" concerns.
“Frasers remains deeply troubled by Boohoo’s governance practices and lack of transparency of material arrangements,” the open letter added...read more
8.52 am: HSBC 'killer app' killed off
HSBC Holdings PLC (LSE:HSBA) is set to close its Zing international payments app launched only last year, according to a report by Financial News.
The lender is said to be on the verge of informing staff, following what is reported to have been a struggle with compliance functions.
HSBC launched the forex app last January, aimed squarely at a market dominated by disruptive tech platforms Wise PLC and Revolut.
An ignominious end to what Bloomberg called a "killer app" at the time of its launch.
8.37am: Spectris impresses
A big riser in the FTSE 350 this morning is Spectris PLC (LSE:SXS), which announced its trading update for the year, with performance in line with expectations following a strong fourth quarter.
Adjusted operating profit for the year is expected to be ahead of consensus and at the upper end of the range of analyst expectations.
The consensus forecast for adjusted PBT is £197 million, with a range of £183.3-201 million.
8.14am: FTSE opens lower
The FTSE 100 has opened lower, extending its losses marginally.
In opening trades, the index has dropped almost four points to 8,541.4.
AB Foods is down 0.6%, with a few other retailers and consumer businesses among the main fallers, along with miners, banks and oilers.
Games Workshop is down almost 2%, followed by JD Sports Fashion, Anglo American, Rio Tinto, Lloyds Banking Group, BP and Shell.
8am: Hut gets rid of the fastest growing bit of the business
Hut Group owner THG PLC has completed the demerger of its THG Ingenuity e-commerce logistics business, which it says leaves the rest of the group as "a global, cash generative, health & wellness consumer brands group".
A post-Christmas trading update revealed that otherwise 2024 finished with a bit of a whimper, with a 7.1% revenue decline in the fourth quarter.
Revenues for the remaining company (RemainCo) after the split -- THG Beauty and THG Nutrition -- were down 5%, while the departing THG Ingenuity segment grew 22.9%.
For the full year, the RemainCo saw revenues fell 2.5%, with total continuing revenue down 0.9% thanks to 15.9% growth for Ingenuity, and total group revenue shrank 5.0%.
For 2025, the ongoing RemainCo business is expected to deliver mid-single digit revenue growth, which relies on an expected return to growth in Nutrition that THG said was "evidenced by a much-improved start to the year across online and offline channels".
CEO Matthew Moulding notes that it could be in line to receive a £30 million VAT rebate after a recent tribunal decision for another company selling protein products ruled that they should be subject to 0% UK VAT.
7.27am: Primark growth downgraded, a profit warning essentially
Primark owner Associated British Foods PLC (LSE:ABF) says the clothing retail chain is now targeting "low-single digit" sales growth in 2025, down from the "mid-single digit" it had indicated at its final results in November.
Primark sales rose 1.9% in the 16 weeks to 4 January, with total sales down 0.4% due to currency swings, and total group revenues fell 2.2% to £6.7 billion.
Sales fell in the UK and Ireland, with weak autumn trading in what it called a "challenging retail environment", only partly offset by growth in like-for-like sales over the Christmas period.
Growth in the full year is expected to be offset by 4% growth from rolling out more stores in Europe and the US.
"Despite the market conditions in the UK and Ireland, we remain confident in the Primark proposition and continue to focus on initiatives across product, digital and brand to drive underlying growth."
Adjusted operating profit margins are expected to remain broadly in line with last year's.
Guidance for all other group segments was left unchanged.
7.19am: FTSE 100 expected to retreat
The FTSE 100 is expected to retreat further from its recent highs at the open on Thursday, while investors examine trading updates from Primark owner AB Food, e-commerce outfit THG and online brokers IG and CMC.
Futures markets have the London benchmark falling 23 points, extending the 3-point loss from the day before that left the index at 8,545.1.
Overnight, Wall Street had a positive session, with the Nasdaq Composite index out in front with a 1.3% gain, led by 15% gains for ARM Holdings PLC, followed by a group of other chip stocks and a 10% jump from Netflix.
The S&P 500 progressed by 0.6% and the Dow Jones by 0.3%, with only the Russell 2000 in the red.
"US equities were boosted by strong earnings and Trump’s AI push," says market analyst Ipek Ozkardeskaya at Swissquote Bank.
OpenAI investor Microsoft, Nvidia and Oracle – the names of the companies cited in the Trump's Stargate project – led the gains.
Elon Musk's X post saying that these companies don’t have the money to invest in Trump’s AI project, "sparked concerns about Musk’s relationship with the White House, leading Tesla shares to drop 2%", says Ozkardeskaya.
"The saga serves as a reminder that the next four years will be a constant watch of who’s aligned with whom, who’s feuding, who’s making waves, and who holds the power to steer things in their favor. I, for one, can’t wait."
5am: Financial diary for Thursday
ABF will be in the spotlight on Thursday, alongside news on sentiment among UK businesses.
Primark owner ABF faced a downgrade on fears around future sales from UBS ahead of its update... Read more
Announcements due:
Trading updates: Associated British Foods PLC, Forterra PLC, Harbour Energy PLC, Mitie Group PLC
Interims: Baillie Gifford US Growth Trust PLC
Finals: Nexus Infrastructure PLC
US earnings: GE Aerospace, Intuitive Surgical
AGMs: Botswana Diamonds PLC, Goldplat PLC, SRT Marine Systems PLC
Economic announcements: CBI Business Optimism Index (UK), Crude Oil Inventories (US), Continuing Claims (US), Initial Jobless Claims (US)
Ex-dividends to reduce FTSE 100 by: 0.21