- FTSE adds 60 points to 9,274
- Trump adds new sectoral tariffs
- IHG tops leader board
- Wall Street futures indicate mixed start
1.59pm: Upgrade at the double for IHG
If hotel bookings can be unpredictable, broker upgrades can sometimes be just as surprising.
InterContinental Hotels Group (IHG) has gone from JP Morgan’s least favoured to most favoured in a single step, with the bank lifting its rating from “underweight” to “overweight” and raising its target price from 8,500p to 10,400p.
Shares climbed 3.3% to top the FTSE 100 leaderboard on Friday.
The case rests on visibility. Revenue per available room (RevPAR) may be wobbly across the US, China and the UK, but IHG’s earnings stream is steadied by its asset-light structure.
By franchising and managing rather than owning hotels, it can deliver high single- to low double-digit profit growth, while free cash flow conversion of around 55% supports ongoing buybacks of roughly 5% of shares each year.
The real cushion comes from ancillaries: loyalty fees and credit card tie-ups now generate 14% of revenue and are less cyclical than room bookings. JPM sees credit card fees rising from $80 million this year to $120 million by 2028.
With 338,000 rooms in the pipeline, signings up 15% in the first half and recent acquisitions adding 150-plus hotels, IHG looks positioned for mid-teens earnings growth through to 2027.
1pm: Wall Street set for mixed start
US stocks are set for a mixed open, with the Dow Jones expected to rise while the S&P 500 and the Nasdaq are likely to open flat.
Dow futures are trading 0.1% firmer an hour and a half before the market opens, with those for the S&P a touch higher and Nasdaq futures a touch lower.
Stocks fell for a third day on Thursday as better-than-expected GDP data and jobless claims had traders questioning the timing of future interest rate reductions.
The Nasdaq and the S&P 500 both fell 0.5%, while the Dow was down 0.4%.
“US investors have run into a brick wall over recent days, with the validity of the drives to fresh record highs having been brought into question," commented Richard Hunter, head of markets at interactive investor.
"There have undoubtedly been signs of weakness in the labour market which have led to expectations of further interest rate cuts being ratcheted up," Hunter added. "However, the latest jobless claims number was solid in that the decline was more than expected. In addition, GDP growth was revised up to 3.8% from a previous 3.3% for the second quarter, with consumer spending and business investment providing a strong base."
9.45: Small caps under the spotlight
Seeing Machines Ltd (AIM:SEE, OTC:SEEMF) has secured a five-year deal with a UK bus manufacturer to install Guardian Generation 3 driver monitoring systems on thousands of European vehicles. The agreement precedes EU safety regulations requiring driver distraction detection from July 2026. The company is also pursuing deals covering 4,000+ additional vehicles annually. Read more
EnergyPathways PLC (AIM:EPP) had a busy first six months as it signed partnerships with Siemens, Costain, and Zenith Energy for its Marram Energy Storage Hub feasibility studies. The Irish Sea compressed-air storage and hydrogen facility seeks government approval as nationally significant infrastructure. Read more
Mosman Oil and Gas Ltd (AIM:MSMN) had a transformational year to end June as it refocused on helium, acquiring an 82.5% stake in Sagebrush and a 20% stake in Vecta (later impaired). Non-core oil assets were divested, revenue rose to A$504k, but a net loss of A$10.32m was reported. Board reshuffles and strategic initiatives aim to unlock shareholder value. Read more
Buccaneer Energy Plc (AIM:BUCE) has boosted East Texas production, with Pine Mills workovers improving output and reliability. Two new wells are planned, with Allar‑1 set to spud in October. The company explores using gas for on-site Bitcoin mining. H1 saw a $944k loss on $889k revenue, while production rose to 13,930 barrels. Read more
Gem Resources PLC (LSE:GEMR) has reported progress at its Gravelotte and Curlew projects, with hard-rock mining underway, trial sales proving processing methods, and a £2.12m recapitalisation completed. In its half-year results, the company said talks continue on a major offtake deal, crypto-linked financing, and global sales channels, laying groundwork for long-term growth despite a £386k half-year loss. Read more
Quadrise PLC (AIM:QED) has amended its agreement with Valkor Technologies in Utah, rephasing $1 million payments through June 2026. The deal includes delivering a 600-barrel-per-day unit by mid-2026, with $200,000 due September 2025 and $300,000 upon full-size unit delivery. Quarterly support fees of $75,000 start April 2025. Read more
B Hodl Plc (AQSE:HODL) has purchased 12 Bitcoin for over £1 million at £83,455 each, bringing total holdings to 112 Bitcoin worth £9.4 million. The London-listed company focuses on building Bitcoin reserves while generating revenue through Lightning Network payment processing. Read more
Pantheon International PLC (LSE:PIN) returned £5.2 million to shareholders via buybacks in August, totalling £29 million this year. Trading at a 33.7% discount to NAV, the private equity investor repurchased shares at 327.3p versus 510.8p NAV. New policy allocates 20% of portfolio exits to distributions, with £75 million initially earmarked. Read more
9am: Stocks shrug off tariff noise
The FTSE 100 has built on its early gains, now up 44 points at 9,243.44, a gain of about a third of a percent.
While Rio Tinto and Endeavour Mining are still among the morning's biggest losers, joined by JD Sports Fashion PLC (LSE:JD., OTC:JDSPY) and Diageo PLC (LSE:DGE), AstraZeneca has retraced its losses and is now slightly higher. Fellow drugmaker GSK PLC (LSE:GSK, NYSE:GSK) is up 0.5%.
"Long story short: stocks were down yesterday as US yields jumped on better eco data, new US tariffs are being digested this morning with relative ease," commented Saxo Markets' Neil Wilson.
"The tariff news ought to add to the bearish narrative we’ve seen take hold in equity markets this week, but so far, European equity markets are rising and US futures are a bit higher," Wilson added. "Maybe weaker euro/sterling, maybe just tariff noise can be ignored?"
In Frankfurt, the DAX is currently 0.6% firmer, while the Paris CAC 40 is 0.9% higher.
8.15am: Footsie edges higher at the open
The FTSE 100 has started Friday on the front foot, despite President Trump's new list of tariffs. About 15 minutes into the session, London's blue-chip index was up 15 points at 9,229.32.
Leading the gains at the start of the session are Intercontinental Hotels Group PLC (LSE:IHG) with a 2.9% rise, and Croda International PLC (LSE:CRDA), up 1.4%.
Miners Endeavour Mining PLC (LSE:EDV, TSX:EDV, OTCQX:EDVMF) and Rio Tinto Ltd (LSE:RIO, ASX:RIO, OTC:RTNTF) are top of the loser board, both down more than 1%. Drugmaker AstraZeneca PLC (LSE:AZN) is also under pressure, perhaps in response to the new tariffs on branded pharmaceuticals.
8am: New tariffs weigh on Asian markets
US President Donald Trump’s back with a vengeance: starting October 1, your meds could double in price unless made in the US, cabinets get a 50% smack, trucks 25%, and furniture 30%. He says it’s to protect American makers, critics say it’ll just drain wallets. Meanwhile, trade drama brews with Mexico, Europe, and China.
"Investors got a fresh reminder about the trade war, and the impact has already been evident in Asian markets," commented Deutsche Bank's Jim Reid. "For instance, pharmaceutical companies have been among the worst performers this morning in Japan’s Nikkei (-0.46%), with losses for Chugai Pharmaceutical (-5.12%) and Sumitomo Pharma (-5.21%)."
7.15am: FTSE 100 to claw back losses
The FTSE 100 is expected to open higher as the week draws to a close, reclaiming some of Thursday's losses after US economic data and bearish comments by Federal Reserve chair Jerome Powell wound back expectations for US interest rate cuts.
Ahead of the open, FTSE 100 futures indicate a 21-point gain, after the blue-chip index closed 36 points lower at 9,214 on Thursday.
Overnight, the major US stock indices finished lower for a third day as better-than-expected GDP data and jobless claims had traders questioning the timing of future interest rate reductions.
The Nasdaq and the S&P 500 both fell 0.5%, while the Dow Jones was down 0.4%
Asian markets are mostly lower this morning. Tokyo's Nikkei is down 0.7%, the Hang Seng has lost 0.5% and the SSE Composite in Shanghai is down 0.3%. In Mumbai, the Sensex has shed 0.5%, but in Sydney, the ASX 200 has gained 0.2%.