- FTSE 100 down 18 points at 8,585
- China criticises UK-US trade agreement
- Imperial Brands drops on CEO retirement plans
- Burberry eyes savings from up to 1,700 job cuts
4.59pm: FTSE closes lower
Despite a modest pullback of 18 points, the FTSE 100 closed at 8,585, reflecting a 0.2% decline as investors weighed sector losses and global market pressures on Wednesday
4.11pm: FTSE slide steepens
The slide in the FTSE 100 has steepened, with the index now down 0.5%.
More of the big names in the index have gone from flat or small declines to bigger falls in the past half hour, with the top five all in red, while AstraZeneca, HSBC, Rolls-Royce in the top 10 all down over 1%.
Imperian Brands and Spirax are bottom of the fallers, both down more than 6%.
Precious metals miners Endeavour Mining and Fresnillo are both down either side of 3% as gold and silver prices fall.
"While the current ceasefire in the global trade war may do wonders for equities, it has proven to be a burden for gold," says IG market analyst Chris Beauchamp.
The price slid below $3,200 today, down from $3,400 a week ago.
"Overall the commodity continues to look like it is in for an extended period of consolidation," says Beauchamp. "Fund flows should continue to favour US stocks in the short-term, and as the current ‘most crowded trade’ gold seems vulnerable as some investors reduce their exposure.”
3.58pm: Double-decker Chunnel
Looking ahead to future holidays on the Continent, trains going through the Channel Tunnel could be double-deckers in a few years.
This is a plan between Eurostar and Sir Richard Branson’s Virgin Group, who are, according to the Telegraph, contemplating ordering the trains to increase capacity on the London-to-Paris route.
Eurostar said using double-deckers is "a possibility", with talks underway with multiple manufacturers.
3.43pm: FTSE heading lower
The FTSE has headed further into the red as it moves into the last hour of trading, with all but two of the index's largest stocks in the red.
Compass Group and Imperial Brands, two top-30 stocks, are both weighing after results earlier seemed to disappoint investors.
Imperial announced solid first-half numbers but said its well-respected CEO is retiring later this year. Its shares dropped over 6%.
Compass reiterated full-year guidance, but second-quarter growth was slightly slower than the first. Its shares are down 2.5%.
Experian, also in the FTSE top 20, is down 2.2% despite results seeming to be bang in line with expectations. The shares recently neared all-time highs, so profit taking is a likely cause.
3.20pm: H&T bid highlights value on offer in LSE stocks
The bid for pawnbroker and jeweller H&T Group PLC (AIM:HAT), the latest UK company to receive a takeover bid from the US, "is a further example of how trade or financial buyers are finding value in the London stock market," says AJ Bell investment director Russ Mould.
With H&T’s board recommending the 661p-a-share bid and the shares trading close to the cash element of the bid, this suggests investors are happy for the deal to go through, he adds.
The £290 million deal, with £73 million in net debt and leases on top, takes the total value £11 billion of approaches, live and concluded bids for UK listed and quoted companies in 2025.
“The 44% uplift relative to H&T’s closing share price on Tuesday also sits above the average 35% across more than 20 bids," says Mould.
"That 35% average premium itself is not to be sniffed at, even if it is the lowest figure in the last five years, to perhaps ultimately reflect how the UK stock market has moved higher, despite all of the scepticism and opprobrium that it continues to attract."
2.51pm: Mixed start on Wall St
It's been a mixed opening few minutes on Wall Street.
The S&P 500 is just below flat and the Dow Jones just above, while the Nasdaq Composite is up 0.2% and the Russell 2000 small cap index is down 0.2%.
On the S&P the top riser is Super Micro Computer, up 15.5%, with AMD up 7%, Dell up 3.1% and Nvidia 2.9%. Apple, Amazon and Berkshire Hathaway are slightly in the red.
2.14pm: L&G returns, Trainline a target, US vs European stocks
Some broker views.
Legal & General Group PLC (LSE:LGEN) was the subject of a note from UBS entitled 'is L&G capital constrained?' The Swiss bank quickly answered its own question, saying "we do not see capital constraints and expect management to return >35% of the market cap to shareholders over the next three years. This is the highest capital return in the subsector."
Elsewhere, Berenberg told its clients that investor concerns about UK competition and regulation at Trainline PLC (LSE:TRN) are "overdone", with the ticketing company tipped as a potential private equity target.
Another German bank is not convinced the US rally has legs, at least not compared to Europe, with Deutsche Bank arguing that the outlook for European equities still looks brighter on several fronts, despite the S&P 500's recent outperformance.
1.24pm: UK media ownership rules
Overseas investors will be prevented from owning more than 15% of British national newspapers under new rules, Sky News is reporting.
With a two-year battle to resolve the ownership of the Daily Telegraph, Sky newshound Mark Kleinmann has learnt that the Department for Culture, Media and Sport could announce the new limit "as soon as Thursday".
He says there has been "intensive lobbying" by newspaper industry executives who are concerned that a permanent outright ban "could cut off a vital source of funding to an already-embattled industry".
This would allow the fund backed by Abu Dhabi, RedBird IMI, which owns an option on the Telegraph, to hold a stake via US-based Redbird Capital.
Last year, the highest bid of £550 million was reportedly made by Dovid Efune, owner of The New York Sun, who entered exclusive negotiations to purchase the daily and Sunday titles.
Efune, who previously edited the Yiddish weekly, the Algemeiner Journal, surpassed three other competitors with his bid.
12.53pm: China accuses UK over US trade deal
There are reports from the FT that China has accused the UK of aligning with the US and looking to exclude Chinese products from their supply chains.
China’s foreign ministry criticised the agreement in a statement to the Financial Times, saying: "Cooperation between states should not be conducted against or to the detriment of the interests of third parties."
The deal that Kier Starmer signed last week offers some relief from US tariffs on car and steel exports if it complies with strict American security requirements.
"These conditions include scrutinising supply chains and ownership structures – a move widely interpreted as targeting Chinese involvement," as the Guardian put it.
12.34pm: Mixed markets
Like yesterday, US stock index futures are mixed, notes market analyst David Morrison at Trade Nation.
"Despite this, investors appear to have regained their mojo with the prevailing sentiment suggesting that it’s safe to be bullish once again.
"Yet all the US majors have rallied sharply off the oversold levels which marked last month’s slump.
"Prices may need to consolidate now, or even pull back from current levels, to provide a base for further gains.
"While the freeze in trade between the US and China is over, thanks to the weekend agreement for both sides to slash their respective import tariffs by 115%, there’s now a 90-day window for further progress.
"That could mean that investors may have to wait for another month or so before they hear further positive trade news, at least as far as the US and China are concerned."
He notes that crude oil prices have pulled back from yesterday's highs, with Brent down 1.1% to $65.9 a barrel.
"The US-China trade talks made unexpectedly good progress over the weekend and this has given some support to oil prices. But it is early days, and the two sides now have 90 days to hammer out a convincing, and lasting, trade deal that is seen to suit both sides. Traders now shift their focus to today’s weekly US inventory report, which is expected to show a draw of 2 million barrels."
11.56am: US stocks marginally in green
US stock futures have clambered into the green, but gains are tiny.
S&P 500 and Dow Jones futures are flat, while those for the Nasdaq are up less than 0.1%.
This follows the Nasdaq rising 1.6% and the S&P 500 0.7% overnight, with 4-6% gains for Nvidia, Broadcom and Tesla. The Dow Jones fell 0.6%.
In premarket trading, Nvidia and Tesla are up close to 2%, while Super Micro Computer is soaring 9% higher ahead of the open.
Back in Europe, the FTSE has crawled onto dry land, while other markets remain underwater.
11.07am: 'Move over China'
"Yesterday was a bullish eye-opener for investors in US tech stocks", says bullish tech analyst Dan Ives at Wedbush, saying it is "becoming crystal clear the AI Revolution has found its next major area of penetration...Saudi Arabia".
Joining President Trump and his team of advisors on his trip to the Middle East were Nvidia's "Godfather of AI" Jensen Huang, Telsa and X's Elon Musk, Amazon's Andy Jassy, Palantir's Alex Karp, Alphabet's Ruth Porat, IBM's Arvind Krishna, OpenAI's Sam Altman, AMD's Lisa Su among other tech leaders.
"The theme was clear in Riyadh...the AI Revolution is coming to the Saudi kingdom and Riyadh will be a major buyer of AI chips, software, autonomous/robotics, and datacenters over the next decade."
Coming off the US/China trade pact this weekend in Switzerland, Ives says the tone in Riyadh has been "about the bright green light on the massive AI buildout in Saudi and this could open up a huge opportunity and TAM for Nvidia, Palantir, Microsoft, Amazon, Alphabet, Tesla and many other well positioned chip/software names over the coming years".
He believes the market opportunity in Saudi Arabia could add another $1 trillion to the broader global AI market in the coming years.
The AI company of Saudi's Crown Prince, Humain, has been given a major strategic partnership with Nvidia for 18,000 next-generation Blackwell chips in the first deployment to power a Saudi supercomputer.
Over the next five years, Saudi will construct major data centers to train and deploy the Kingdom's sovereign AI models as it looks to use its oil savings and move into technology and other strategic initiatives.
"Move over China," says Ives.
10.44am: European stocks in the red
Shares in London and across Europe have slid lower as this morning's trading has progressed.
The FTSE 100 is down 0.2% as falls for Imperial Brands (down 7.8%), industrials like Spirax and Croda, airlines IAG and easyJet, and China-facing banks Stan Chart and HSBC all drag.
Across in continental Europe, the DAX is down 0.6% and the CAC is 0.8% lower.
Industrial exporters dominate the fallers, including chemical and pharmaceutical stocks and carmakers, with Volkswagen, BMW and Mercedes all among the fallers.
None reported today, but there were results earlier from Japan's Nissan, where earnings were below analyst consensus and no profit guidance was given due to tariff uncertainty, with a new "recovery programme" launched.
German chemicals group Brenntag is topping the losers in Frankfurt as it posted quarterly profits below expectations, with rivals Bayer and BASF close behind.
In Paris, luxury groups LVMH and Kering are leading the fallers, with carmaker Stellantis close by.
Market analyst Kathleen Brooks says the rally for European stocks "has stalled.
"Interestingly, if current patterns persist, then US stocks are on track to outperform European stocks on a weekly basis. US stocks have now moved into positive territory for 2025, however, the next challenge will be whether US stocks can regain their record highs from earlier this year."
The US/China trade agreement "could prove to be a turning point for global stock market flows", she says, with no economic data of note due for release today, "so markets may be dependent on news flow and they could consolidate in the current trading patterns".
This week's key theme for global stocks is the resurgence of big tech, which Brooks says is why the FTSE 100 is out of favour: "it is too risk averse for this environment".
Dax has benefitted from another boost for the defence sector after the US and Saudi Arabia signed huge deals yesterday.
President Trump has started his Middle East tour (accompanied by a mobile McDonald's), opening up more investment into US tech companies such as Nvidia.
"This is a major driver for the Magnificent 7 this week, and it could be the driver of another bull market for the likes of Nvidia and other US chip stocks like AMD," says Brooks.
But while stocks in Asia were broadly higher this morning, after a raft of upgrades to Chinese GDP for 2025, there was one notable outlier, the Nikkei.
"The Japanese stock market has been hindered by two factors: 1, it still doesn’t have a trade deal with the US, and President Trump seems to be more interested in elsewhere, for now. 2, a big move higher in Japanese bond yields," says Brooks.
"There has been a major step up across global bond yields, although Japanese yields have not moved as much as US and European yields in the past week, they have reached some key levels, and the 30-year Japanese bond yield is close to a 25-year high. It has backed away from the key 3% level, however, at elevated levels, Japanese yields could weigh on sentiment for Japan’s stock markets."
10.10am: Co-op begins restocking after cyber attack
Co-op said grocery product availability in its shops will improve from this weekend as it recovers from a cyberattack.
A spokesperson for the member-owned group said: "We are now in the recovery phase and are taking steps to bring our systems gradually back online in a safe and controlled manner."
Co-op and Marks and Spencer Group PLC (LSE:MKS) have both been hit by cyber attacks in recent weeks, with Harrods also targeted.
"There will be improved stock availability in our Food stores and online from this weekend and we are working closely with our suppliers to restock our stores," the spokesperson added in an update this morning.
9.49am: Burberry views from the City
Burberry results were less bad than feared, says UBS.
Fourth-quarter retail like-for-likes were down 6%, versus the consensus forecast of -8%. H2 gross margin was in line with expectations but EBIT of £67 million was well up on the average forecast of £52 million and UBS's £40 million.
"After a sharp share price decline from Feb peak, today's better than expected results with only 2ppt sequential deceleration in LFL and a profit beat are likely to be taken well, potentially driving a renewed excitement about Burberry's ongoing turnaround," says the Swiss bank.
In addition, the company announced extra cost savings of £60 million by the March 2027 financial year.
Deutsche Bank says Burberry is "showing further progress on its brand turnaround" with the Q4 performance is better than expectations and the slowdown seen across the industry in the period.
The outlook for the current year is "uncertain" and the brand is in a turnaround phase with a focus on brand heat, margin improvement, productivity and cash flow.
Accordingly, Deutsche notes there is no explicit guidance, "which is largely as we expected".
Charlie Huggins, manager of the Quality Shares Portfolio at Wealth Club, says last year "was an annus horribilis for Burberry...Almost everything that could go wrong did" as luxury consumers across the globe significantly tightened their belts.
The news on further cost savings is "highly welcome", with Burberry doubling down on productivity initiatives, to support margins even if sales remain weak.
"That said, time is running out for Burberry. Investors have seen several failed turnaround plans from Burberry in recent years. This one feels like a last chance saloon," Huggins adds.
8.56am: Interest rates weighing on FTSE?
While US stocks have gone on a run as Donald Trump and his team ink more trade deals, "the baton hasn’t been passed to the FTSE 100", says market analyst Susannah Streeter at Hargreaves Lansdown.
"The more cautious sentiment may partly have been prompted by concerns that interest rates look set to stay higher for longer in the UK.
"Bank of England policymakers have been striking notes of wariness about the risk that inflation may stay stubbornly above target."
BoE rate-setter Catherine Mann has been speaking this morning and said she changed from wanting an interest rate cut to voting to keep borrowing costs on hold last week as the jobs market had been more resilient than she expected, and because of bond market changes.
"The first observation is that the labour market has been more resilient. Now, yes, we've had some prints that are indicative of a slowing labour market, but it is not a non-linear adjustment," Mann told CNBC.
As Bloomberg puts it, Mann flipped her vote from a 50bps cut in the previous meeting to a pause because of sharp moves on markets had lowered borrowing costs and provided enough easing of financial conditions, along with "resilient" jobs data and rising goods inflation.
Streeter points out that market expectations for further rate cuts this year have "cooled off", with only one to two further reductions being priced in.
"Decision makers are worried that pay growth remains steamy, which could have a knock-on effect on broader price rises."
Elsewhere in markets, oil prices have paused on their gaining streak, with Brent Crude easing from $66.7 to around $66.4 a barrel, having fought back from four-year lows below $60 last week.
"It comes as industry data shows that there was a surprise rise in US stocks last week. Inventories jumped by 4.29 million barrels, the largest rise in six weeks. Nevertheless, crude prices are still largely hanging onto their two-week high, helped by the brighter trade outlook," says Streeter.
8.33am: Imperial CEO change should be 'seamless'
Thoughts on Imperial Brands' news from Panmure Liberum analyst Rae Maile.
He says the first half results are in-line with estimates and there is no change to FY guidance apart from the inevitable forex tweaks.
"Stefan Bomhard is to step down after five tremendous years, but Lukas Paravicini steps up from CFO so the transition will be seamless and there is no reason that any of the plans laid out at the recent investor event change at all.
"Importantly, Therese Esperdy will stay on as chair through the transition," says Maile.
8.14am: FTSE searching for direction at open
The FTSE 100 started lower in initial trades but has moved to a seven-point gain at 8,610.
Top gainers are drugmaker Hikma and paper and packaging manufacturer Mondi, both up around 3%.
Entain is continuing to rise, with BAE Systems and Kingfisher next.
Imperial Brands PLC (LSE:IMB) is down 7% after announcing that CEO Stefan Bomhard, who has driven the turnaround of the past five years, is retiring later this year.
Compass Group is down 3.4% despite what looks like a solid first-half update.
7.55am: H&T recommends £297m takeover
In small-cap land, the board of H&T Group PLC (AIM:HAT) has agreed to a takeover by US peer FirstCash for £297 million.
H&T shareholders will each be entitled to receive 661p cash per share, which includes the final dividend of 11p due to be paid in June.
The offer represents a premium of 44% to the closing price of 458p yesterday.
The combination will create the largest publicly traded pawn platform in the US, Latin America and the UK.
7.45am: GSK splashes out
GSK PLC (LSE:GSK, NYSE:GSK) has announced its acquisition for up to $2 billion of efimosfermin, a drug to treat and prevent progression of steatotic liver disease, posied for phase III clinical trials.
The disease affects up to 5% of the global population, the FTSE 100 group says, and is an "area of significant unmet medical need with limited treatment options".
It expands GSK's existing hepatology pipeline, with multiple development options and potential first launch in 2029.
GSK will pay $1.2 billion upfront to Boston Pharmaceuticals, with potential for additional success-based milestone payments totalling $800 million.
7.41am: Vistry sales rate jumps as mortgage rates come down
Vistry Group PLC (LSE:VTY) reported an improvement in its sales rate, rising to 0.91 per outlet per week from the 0.59 announced in March, with the last eight weeks averaging 1.32.
In a statement ahead of its annual shareholder meeting, the housebuilder said it continues to expect a year-on-year profit increase in 2025, with performance more heavily weighted to the second half of the year.
It expects low single-digit build cost inflation this year, as some upward pressure on material and labour costs are being experienced but are being managed through engagement with suppliers.
There were also positive words on improving cash generation, reducing average net borrowing and government support and funding for the affordable housing sector.
7.26am: Burberry proposes 1,700 job cuts after swinging to loss
Burberry Group PLC (LSE:BRBY) has proposed up to 1,700 of job cuts as part of its ongoing turnaround strategy, which it says should "unlock" a total of £100 million of savings in two years, up from its previously announced £40 million cost-savings programme.
For the past year ended 29 March 2025, revenue of £2.46 billion was reported, down 17% or 15% at constant currency rates, but in line with analyst forecasts.
Adjusted operating profit plunged 94% to £26 million and the FTSE 250-listed company posted an operating loss of £3 million, a swing from a £418 million profit last time.
7.10am: FTSE 100 expected to extend loss
The FTSE 100 is expected to fall on Wednesday after a mixed Wall Street session overnight, but with some company results this morning that could change the mood.
Futures markets have London's blue-chip benchmark dropping 22 points at the open, having seen a broadly flat session the day before, losing two points to end at 8,602.9.
Overnight, the Dow Jones fell 0.6% but the Nasdaq rose 1.6% and the S&P 500 gained 0.7%, with big gains for Nvidia, Broadcom and Tesla.
Asian markets are mixed again this morning, with the Nikkei down but most others in green.
5am: What to watch on Wednesday
Burberry Group PLC (LSE:BRBY) has seen its shares put through the wringer in the past year, after hitting an all time high in 2023, tumbling to a 14-year low last autumn as the European luxury sector felt the squeeze.
After sashaying back into 2025, in recent weeks it has been stumbled as luxury rivals have reported falling sales, with some analysts explaining that the picture is complex.
Catering giant Compass Group PLC's (LSE:CPG) shares hit an all-time high in February but have been knocked off their perch, even though some analysts see the company as offering some shelter from the market storms.
A more traditional defensive investment, Imperial Brands PLC's (LSE:IMB) guidance and new strategic plan will be in focus, with shares in the tobacco giant at their highest in over seven years just as its five-year strategic plan comes to an end.
Elsewhere, Bank of England rate setter Sarah Breeden will be giving a speech in Amsterdam, while several Fed speakers are behind lecterns across the pond, and economic data is second-line stuff.
Overseas earnings include Tencent, Cisco, Sony, E.ON and Coreweave.
Announcements due on 14 May:
Trading updates: Keller, Spirax Group, TP ICAP Group, TUI
Interims: Compass Group, Imperial Brands, Victorian Plumbing
Finals: Burberry, Experian, Vertu Motors
Overseas earnings: ABN Amro, Alibaba, Alstom, Cisco, Daimler Truck, E.On, Rakuten, Sony, Telefonica, Tencent
AGMs: Burford Capital, Conduit Holdings, Direct Line Insurance Group, Gamma Communications, HG Capital Trust, Ithaca Energy, JPMorgan American Investment Trust, Keller Group, LMS Capital, Marshalls, Niox Group, Savills, SEPLAT Energy, Spirax Group, Spire Healthcare Group, TP ICAP Group, Travis Perkins
Economic announcements: Oil Inventories (US)