FTSE 100 made a decent start as better than expected economic news improved the mood of investors. London’s blue chip index opened 41 points higher at 7,149.
A crumb of comfort for the government today as Britain’s economy did slightly better than expected in the past three months. UK gross domestic product increased by 5.5% in the three months from April to June, up from a first estimate of 4.8% which was expected to remain unchanged.
Also, GDP last year shrank by 9.7% compared to the original estimate of a 9.8% fall, which now means the Covid slump was not the worst in UK history but just in the past 99 years.
Even so, thousands of workers will be on tenterhooks as the government’s coronavirus furlough scheme comes to an end. At its height, more than 11 million jobs were subsidised at a cost of about £70bn with around one million still on the scheme according to the ONS.
Boohoo Group shares slumped 10% as it downgraded its profit forecast for fiscal 2022 due to rising freight costs in its supply chain and wage inflation at its distribution centres. The clothing retailer said it now expects underlying margins to be 9%-9.5%, down from a previous forecast of 9.5%-10%.
Among the small caps, Quantum Blockchain has filed its first patent application. It’s for ‘ASIC UltraBoost’ technology used in Bitcoin mining, which optimises the mining algorithm.
SkinBioTherapeutics will soft launch its probiotic food supplement for psoriasis patients on October 29, which is also World Psoriasis Day. The product helps alleviate symptoms.
Horizonte Minerals has received final credit approvals from five major banks. The group is edging closer to starting construction of its Araguaia nickel mine in Brazil.