FTSE 100 hit the skids as worries over inflation, debt and the rail strike soured the mood. London’s blue-chip index was down 60 at 7,029 in early trades.
Rishi Sunak is having to pay record amounts of interest on the country’s £2trn debt due to the amount that is linked to inflation. Debt interest payments hit £7.6bn last month, the highest for any May on record, the Office for National Statistics said.
Heathrow has upped its forecast for passengers this year despite the chaos currently afflicting UK’s number one airport. Some 54.4m passengers are now expected in 2022 or 67% of pre-Covid levels.
Some good news for property groups in London as club owner Ministry of Sound will turn a House of Fraser store in west London into flexible offices, a gym and rooftop bar-restaurant. The nightclub group is expected to open its second site at Westfield shopping centre in Shepherd’s Bush in 2024.
Naked Wines shares tanked it warned of tough times ahead. The wine supplier posted a profit in its last financial year after a 9% increase in its subscription base but added at best it would break even this year.
Alpha Financial Markets by contrast hailed a “nothing short of outstanding” previous fiscal year. The financial sector consultant saw revenues surge 61% and confirmed strong trading has continued.
Next Fifteen also said recent trading has continued to be strong, aided by the strength of the US dollar. For the three months to April end, sales soared 68%, while profit before tax remained ahead of management expectations said the marketing group.