- FTSE 100 up 26 points
- WH Smith grows revenue
- Dowlais in US merger
4.01pm: FTSE 100 scales back after just missing out on record
London’s blue chips just missed out on a new record intraday high on Wednesday afternoon before scaling back.
Having climbed as high as 8,584, the index had sat just two points off its previous record before receding slightly for a 29-point gain at 8,562.
Beazley PLC led the day’s risers with a 4.0% gain, ahead of JD Sports Fashion PLC and Admiral Group PLC, while BAE Systems PLC dropped 3.6% to head the fallers.
3.43pm: Energy bodies float proposals to slash hydrogen costs
Energy industry bodies have unveiled measures they say can bring down the cost of hydrogen production by 58% in order to aid the UK’s shift to green power.
Hydrogen UK and RenewableUK on Wednesday called on the government to reform the industry in order to bring down prices.
Proposals included offering “realistic” strike prices to encourage projects, removing barriers to allow these to be built alongside renewable generators and developing a transmission network to carry green hydrogen around Britain.
Such measures could take the cost of hydrogen from £241 per megawatt hour to less than £100 per megawatt hour, a report said.
“Affordable green hydrogen will be an essential tool for building the energy system of the future, providing long duration storage for surplus electricity, and also for decarbonising sectors such as steel, chemicals and shipping,” it added.
3.27pm: Ryanair boss slates Reeves over Heathrow expansion
Ryanair Boos Michael O'Leary has slated chancellor Rachel Reeves after she confirmed government support for a third runway at Heathrow on Wednesday.
Dubbing the expansion plan a "dead cat", he accused Reeves of damaging growth with her hike to air passenger duty in October's Budget.
“If it ever arrives, it will be about 2040, 2045 or 2050, in fact long after I’ve departed from Ryanair," he said on Heathrow.
"It will not deliver any growth. The thing that will deliver growth is abolishing APD."
3.01pm: FTSE 100 just off record high
London’s blue chips have climbed further into the afternoon to sit just off a new record high.
At 8,575, the FTSE 100 had climbed 42 points for the day and was just off its previous peak, reached earlier in the month, of 8,586.
European stocks remained in record territory in the meantime, with the Stoxx Europe 600 at 534 and one point off its peak, seen earlier on Wednesday.
2.43pm: Nasdaq, S&P 500 drop as Wall Street braces for Fed rate call
Wall Street faced a mixed start on Wednesday, as the Nasdaq and S&P 500 both moved into negative territory ahead of the Federal Reserve’s latest interest rate call.
The Nasdaq dropped 0.4% as trading got underway, as the S&P 500 fell 0.2% and Dow Jones headed just above the mark.
T-Mobile US Inc and Starbucks Crop were among early risers, up 8.0% and 6.5% respectively, after both beating estimates in their latest quarterly earnings.
ASML Holding NV also rallied, as results helped the chip equipment maker bounce back after Monday’s DeepSeek-fuelled tech sell-off.
Nvidia Corp, which had been particularly hit, faced further pressure, dropping 2.7% after the bell.
2.22pm: Tesco follows Sainsbury's in cutting jobs
Tesco PLC is to cut 400 jobs as part of an efficiency drive as competition in the grocery sector mounts.
Stretching from bakery, to phone shop, to head office positions, Tesco said the cuts would “simplify” its business.
Rival J Sainsbury PLC had announced 3,000 job cuts last week, including through the closure of hot food counters and cafes, alongside senior management reductions.
Tesco chief executive Matthew Barnes noted cuts came as the businesses sought ways to keep prices down as the supermarket cited a “more competitive [market] than ever”.
Barnes added: “These are difficult decisions affecting our colleagues, but we believe they are necessary to enable us to invest in what matters most to our customers.”
Shares were down 0.2% at 369.80p on Wednesday.
1.35pm: Reeves does not rule out tax hikes ahead
Chancellor Rachel Reeves has avoided ruling out tax hikes in the spring in a speech on Wednesday.
Having also firmed up government support for Heathrow’s third runway in a bid to boost economic growth, she said spending plans would be made after the Office for Budget Responsibility’s latest forecast in March.
“I’ve been really clear about the fiscal rules. They are non-negotiable,” she said.
“They are what give stability to our economy but we’re still two months off and a lot of things happen in that time.”
Some £40 billion worth of tax hikes were unveiled in October’s Autumn Budget, including on employer national insurance, which has led businesses to warn over waning investment and higher prices ahead.
1.18pm: Lloyds Banking Group to axe another 136 branches
Lloyds Banking Group PLC has signalled plans to close another 136 branches over the coming year.
Adding to previously announced closures, the group incorporating Lloyds, Halifax and Bank of Scotland will be left with 756 sites, against 932 currently.
Some 61 Lloyds branches will be shut in the latest cuts, alongside 61 and 14 under the Halifax and Bank of Scotland brands respectively.
Closures were set to begin in May and be completed by March 2026, with Lloyds saying affected staff would be offered roles elsewhere.
“Over 20 million customers are using our apps for on-demand access to their money and customers have more choice and flexibility than ever for their day-to-day banking,” a spokesperson said.
1.02pm: Wall Street set for mixed start ahead of Fed rate call
Wall Street appeared on course for a muted start as attention turned to the Federal Reserve’s latest interest rate call after a volatile start to the week.
Futures had the Nasdaq up 0.4% as it looked to recover further from a hammering on the back of Monday’s DeepSeek-sparked global tech sell-off.
The Dow Jones and S&P 500 were seen moving just below the mark in the meantime.
Nvidia Corp, having clawed back an 8.9% gain on Tuesday after Monday’s 16.9% drop, fell in pre-market trading once again.
Expectations are for the Federal Reserve to hold interest in its meeting later today, though focus will be on the central bank’s outlook,” according to analysts.
“For the Fed, the question is more about how long the pause will be rather than whether they will cut this time around,” Scope Market’s Joshua Mahony said.
“The fears of an inflationary push under Donald Trump provides the basis for a cautious approach over the coming months, with markets currently pointing towards a likely wait until June until we see the first rate cut of the year.”
12.50pm: Dowlais exit spells yet another blow for London
Dowlais Group PLC’s potential takeover by American Axle & Manufacturing Holdings has left London juggling with yet another departure after last year’s record exodus.
Some 88 companies left or moved their primary listings from the stock exchange in 2024, marking the largest number since 2009, according to EY.
Dowlais, having recommended its £1.2 billion bid to shareholders on Wednesday, appears set to join them, after many set sights on better prospects in the US.
Tracing back to south Wales in 1759, Dowlais had been spun out of GKN, a founding constituent of the FTSE 100, following a takeover by Melrose Industries PLC in 2018.
Many of last year’s exits came by way of takeover though, which AJ Bell analyst Russ Mould noted previously meant “there was value to be had” despite struggles in London.
He added on Wednesday that Dowlais’ exit was “far from a done deal” though, given shareholders could “push back for a better offer”.
“The bid premium looks very skinny at 25%. AJ Bell calculates the average bid premium for UK-listed stocks was 47% in 2024 and 52% in 2023”... Read more
12.00pm: FTSE 100 nearing record again as London a sea of green
The FTSE 100 kept its record intraday high of 8,586 in its sights on Wednesday, climbing 30 points, or 0.4%, to 8,564 come the afternoon.
Beazley PLC remained ahead among risers, up 3.3%, while BAE Systems PLC topped the fallers with a 2.5% drop.
Gains stretched to mid-caps too, with the FTSE 250 and FTSE 350 up 0.4% and 0.6% respectively.
Dowlais PLC topped the mid-cap risers, gaining 11.4% on news of a recommended takeover by US rival American Axle & Manufacturing Holdings.
WH Smith followed, rising 7.3% after signalling strong trading in its core travel business trading earlier on.
Raspberry Pi Holdings PLC was the biggest loser in the meantime, down 7.6% after also reporting… Read more
11.39am: WH Smith jumps as investors cheer switch to travel
WH Smith PLC bounced almost 7% on Wednesday after detailing strong trading within its now core travel business.
Having unveiled plans to sell its 500-store-strong high street wing earlier in the week, analysts noted it was “no coincidence” WH Smith had solid travel figures in the locker.
“It needed the core business going forward to be firing all cylinders in order to justify the strategic shift,” AJ Bell’s Russ Mould said.
Group revenue had ticked up 3% in the 21 weeks to January 25, as a 7% increase in travel sales offset a 6% decline across high street shops.
Peel Hunt noted the travel business figures had been “particularly strong,” as both US and UK like-for-like sales grew, but held estimates on commentary alluding to full-year consensus profit-before tax at £179 million.
“The shares are not expensive, and this is a good statement, but we believe they are unlikely to be a top performer until forecast momentum reemerges: nevertheless, we like the fundamentals a lot.”
Mould added: “The future of WH Smith now rests with getting travellers to pay the price for convenience.
“Once the UK operations are sold, WH Smith’s management should have a sharper focus on the remaining business and potentially new energy across the group to take advantage of growth opportunities.”
Shares climbed 6.8% to 1,271.29p, placing WH Smith among the FTSE 250's biggest risers as the index gained 116 points to reach 20,705.
The FTSE 100 ticked up 25 points to 8,559 in the meantime.
11.16am: TGI Fridays closes Leicester Square branch
TGI Fridays' flagship Leicester Square branch has been closed, despite plans to retain the site following a rescue takeover last year.
Ribs, steak and milkshake venue TGI Fridays has been left without any sites in central London as a result of the closure, which was first reported by Propel.
Breal Capital and Calveton took control of TGI Fridays out of administration in October through a £9.55 million deal.
The Leicester Square branch was slated at the time to be among 51 of 87 of its sites across the country to remain open.
Some £3.5 million was invested in opening the branch, dubbed the “Fridays jewel in London’s crown” at the time in late 2015.
10.57am: Reeves confirms support for Heathrow third runway
Government support confirmed for an expansion of Heathrow Airport has now been confirmed.
Chancellor Rachel Reeves unveiled backing in a speech on Wednesday, arguing it was "badly needed".
The case for the additional runway was "stronger than ever," Reeves said, adding government planning reforms meant "delivery of this project [was] set up for success".
She added: "We will take forward a full assessment through the airport National Policy Statement.
"This will ensure that the project is value for money, and our clear expectation is that any associated surface transport costs will be financed through private funding, and it will ensure that a third runway is delivered in line with our legal, environmental and climate objectives."
10.43am: Reeves expected to back Heathrow third runway plan
Chancellor Rachel Reeves is expected to unveil backing for the planned expansion of Heathrow Airport.
In a speech on Wednesday, Reeves will reportedly back plans for a third runway at the UK’s busiest airport as she details efforts to attempt to boost economic growth.
Having long planned the expansion, Heathrow has previously suggested the third runway would be scrapped without government support.
Reeves’ backing would come despite opposition within the Cabinet, alongside backbenchers and from Mayor of London Sadiq Khan.
Business secretary Jonathan Reynolds noted the case for expansion was “very strong indeed” ahead of Reeves’ speech.
“There is no tension between being ambitious on climate and being ambitious on growth,” he told BBC Radio 4.
“We need to decarbonise aviation come what may. There are jobs in that. There is a whole industry in sustainable aviation fuel which we are committed to.
“But the business case, the economic case for aviation, for a services led economy, for the fact that airports are our major ports in terms of goods entering the country, is very strong indeed.”
IAG, which owns Heathrow's biggest operator British Airways, gained 2.3% on Wednesday.
9.58am: LVMH tumbles as high-expectations bite
Louis Vuitton Moet Hennessy tumbled 6% on Wednesday as stronger fourth-quarter sales failed to impress against a backdrop of heightened expectations.
Sales climbed 1% to €23.9 billion (£20.0 billion) in the three months to December, aiding a 1% improvement over the full year to €84.7 billion.
Though better than analysts’ forecasts, declining sales across critical fashion and leather goods, alongside wines and spirits appeared to cloud sentiment.
LVMH had been in the spotlight after recent expectation-beating figures from Richemont and Burberry Group PLC raised hopes of a luxury sector recovery.
Analysts cautioned that a 14% year-to-date gain for its shares left LVMH needing to justify such an improvement, however.
“While LVMH saw a sequential improvement, it was less pronounced compared to Richemont and Burberry,” Quilter Cheviot analyst Mamta Valechha said.
“Had LVMH been the first to report this earnings season, this set of results would have been digested well.
“However, peers had already set the bar high, so it is unsurprising to see its shares down this morning.”
Burberry overcame an early decline to sit 0.3% higher on Wednesday.
9.34am: European stocks nudge another record
European stocks have racked up yet another record following Tuesday’s high in spite of a global tech sell-off earlier in the week.
Europe’s Stoxx 600 index gained 0.5% to hit 534 and push past Tuesday’s record over the course of the morning.
Though less impacted by Monday’s DeepSeek-sparked sell-off than US counterparts, a recovery in technology stocks since has aided the rally in recent days.
9.20am: Dowlais US takeover to see savings through job cuts
More on Dowlais and its £1.16 billion recommended takeover by US rival American Axle.
In a statement, AAM and Dowlais said combining the two businesses would generate significant value in areas such as driveline and metal technologies for petrol cars and EVs.
On completion, Dowlais shareholders will own 49% of the enlarged business and AAM investors the remainder.
Cost synergies of $300 million are predicted through job cuts allied with purchasing and operational improvements.
David C Dauch, AAM’s boss will be the chairman and chief executive of the combined group... Read more
9.12am: Anglo American completes $1bn Jellinbah sale
Anglo American PLC has offloaded its stake in the Jellinbah East and Lake Vermont steelmaking coal mines in Australia for US$1 billion (£0.8 billion).
Anglo said Wednesday its 33.3% stake in Jellinbah Group Pty Ltd, which owns a 70% interest in the mines, was sold to joint venture partner Zashvin.
Chief executive Duncan Wanblad noted the sale was finalised “sooner than expected,” having originally been unveiled in November and due to complete in the second quarter.
“We are pleased to complete this first step in the divestment of our steelmaking coal portfolio,” he said.
“We have also made good progress towards the completion of the sale of the balance of our steelmaking coal portfolio to Peabody for additional cash consideration of up to US$3.8 billion.
“We have moved at pace to simplify Anglo American to create an exciting and differentiated investment proposition focused on our world-class copper, premium iron ore and crop nutrients businesses.”
Shares slipped 0.2% to 2,350.91p.
8.53am: OpenAI says DeepSeek used its model for training
OpenAI has said there is evidence suggesting that DeepSeek used its proprietary models to train an open-source competitor.
It suspects the Chinese start-up engaged in "distillation," a technique where outputs from larger AI models help optimize smaller ones.
While common in AI development, OpenAI contends that using this method to create a rival system violates its terms of service... Read more
DeepSeek last week unveiled its cheaper and less energy-hungry model, sending shares in technology firms globally spiralling earlier this week.
8.50am: Dowlais jumps on £1.2bn bid from US rival
Dowlais Group PLC surged on Wednesday morning after receiving a £1.16 billion takeover offer by Michigan-based American Axle & Manufacturing Holdings.
Reflecting a 25% premium on the GKN Automotive owner’s Tuesday closing share price, Dowlais said its board was “unanimous” that the deal offered a “compelling opportunity”.
Shares jumped 8.4% to 74.12p.
8.42am: Aviva receives loan for £3.7bn Direct Line takeover
Aviva PLC has received a loan to help fund its £3.7 billion takeover of peer Direct Line Insurance Group PLC.
Citibank had “successfully completed the syndication of a majority of its commitments” under a facility agreement, Aviva said on Wednesday.
Aviva previously detailed a £1.85 billion loan agreement to satisfy certain requirements of the takeover, which was firmed up last month.
This would see Direct Line investors receive 0.2867 new Aviva shares, 129.7p in cash and up to 5p in dividends per share under the takeover, it said at the time.
Direct Line shares were valued at 275p and a 73.3% premium to their November 27 closing price as a result, when Aviva first tabled an offer.
8.22am: FTSE 100 opens little changed
The FTSE 100 barely budged as trading got underway, rising one point to 8,535.
Beazley PLC headed the early risers, climbing 2.4% as it recouped on a decline seen on Tuesday, while Scottish Mortgage Investment Trust PLC was also in recovery mode.
BAE Systems PLC led the fallers in the meantime, dropping 2.2% ahead of the likes of Severn Trent PLC and Diageo PLC.
Among reporters, WH Smith PLC surged 5.6% after flagging stronger revenue on better travel sales as turnover in its for-sale high street business dropped.
AJ Bell dropped 2.8% meanwhile, despite news of stronger first-quarter net income on growing customer numbers.
8.14am: AJ Bell sees stronger net inflows as DIY investor numbers grow
AJ Bell PLC has reported stronger first-quarter net inflows after DIY investment platform customers jumped and its advised business grew.
Net inflows improved from £1.3 billion to £1.4 billion, as assets under administration and management hit £95.3 billion, against £81.6 billion a year ago.
Platform business customers grew 16% to a record 561,000, fuelled by a 20% increase in direct-to-consumer numbers to 387,000.
Assets under administration across the division grew 17% to a record £89.5 billion in line with the jump.
Chief executive Michael Summersgill noted “competitive pricing” and “elevated pension contributions in the run-up to the October Budget” had aided the increase.
“Ahead of the October Budget, speculation around the tax treatment of pensions caused a short-term behavioural change among retail investors, which normalised quickly once the content of the Budget became known.”
Investment business assets under management surged 38% to £7.2 billion in the meantime, which Summersgill dubbed “exceptional”.
He added: “The strong start to the year positions us well as we approach the busy tax year-end period.”
7.42am: WH Smith flags higher revenue despite high-street decline pre-sale
WH Smith PLC has reported higher revenue for the start of the first half, boosted by travel stores as high street sales declined ahead of a planned sale of the business.
Group revenue climbed by 3% in the 21 weeks to January 25, fuelled by a 7% increase at travel-focused stores in the likes of airports and train stations.
Sales declined by 6% across its high street shops in the meantime, with WH Smith having firmed up plans to sell the 500-store-strong business earlier in the week.
WH Smith noted on Wednesday that lower high street sales were “in line” with expectations and that the division was on course for savings of £11 million this year.
Across travel, WH Smith said North American revenue grew 3% as UK sales ticked up 7%.
Momentum was cited across airports in both, with slower North American growth reflecting closures and refurbishments.
“The group has had a good start to the financial year, and we continue to see strong momentum across our core travel business,” chief executive Carl Cowling commented.
“Our UK travel business has delivered another excellent performance,” he added, alongside pointing to a pipeline of around 60 stores in the US.
“The group is in a strong position, and while there is some economic uncertainty, we are confident of another year of good growth in 2025.”
7.16am: FTSE 100 seen higher
Futures had the FTSE 100 climbing nine points to reach 8,528 ahead of Wednesday’s open, building on a 30-point gain on Tuesday.
London’s blue chips had neared an intraday record in Tuesday’s session before scaling back late on, after the FTSE 100’s lack of technology exposure saw it avoid a sell-off earlier in the week.
Sparked by last week’s release of DeepSeek’s cheaper and more efficient artificial intelligence model, US stocks had faced a beating before regaining on Tuesday.
The Nasdaq finished the day up 2.0%, while the S&P 500 climbed 0.9% as the Dow Jones, which also avoided the hammering, added 0.3%.
Asian markets enjoyed a largely positive showing overnight, with China’s Shenzhen index among the few to fall, by 1.3%.
5.00am: Wednesday's schedule
Wednesday will see WH Smith, AJ Bell and Hargreaves all feature, before a string of US big-tech earnings and the Federal Reserve's latest rate call.
WH Smith's update comes hot on the heels of plans to sell its high street business... Read more
Meta's plans around artificial intelligence are set to draw attention... Read more
Announcements due:
Trading updates: AJ Bell PLC, Ceres Power Holdings, Gem Diamonds Ltd, WH Smith PLC
Interims: Hargreaves Services PLC, Van Elle PLC
Finals: Hardide PLC, Velocity Composites PLC
US earnings: Automatic Data Processing, International Business Machines, Markel Group, Meta Platforms Inc, Microsoft Corp, ServiceNow, Tesla Inc
AGMs: AJ Bell PLC, Imperial Brands Group, Schroder Asia Pacific Fund, WH Smith PLC
Economic announcements: Fed Interest Rate Decision (US), Crude Oil Stocks (US)