All the main US stock market indices opened down today as investors react with caution to the US government shutdown which took effect at midnight.
The S&P 500 was down 28.7 points, or 0.43 per cent, at 6,659.76, the Dow Jones industrial was down 107.62 points, or 0.23 per cent, at 46,290.27 while the Nasdaq Composite was down 129.06 points, or 0.57 per cent, at 22,530.95.
The weaker than expected private jobs data, which showed private employment decreased by 32,000 jobs last month, also played on investors’ minds, and due to the government shutdown such private data is all the market has to go on.
Selfridges says loss of VAT-free shopping has hit sales
Selfridges said the end of tax-free shopping in Britain is partly to blame for a drop in the number of big-spending tourists splashing out in its UK department stores.
In newly filed accounts for the retailer’s UK business, the company posted a 7 per cent decline in revenue to £774.6 million in the 48 weeks to January 4, compared with the prior 53-week reporting period.
Selfridges, which has stores in London, Birmingham and Manchester, said trade and turnover “continued to feel impacts from various economic factors”, citing “reduced numbers of international visitors visiting the UK and shopping in Selfridges’ stores, with the ongoing impact of the loss of tax-free shopping for international shoppers”.
Burberry scraps head of diversity role
Geoffrey Williams, the former global vice-president of diversity equity & inclusion at Burberry
Burberry has scrapped its head of diversity role as part of a company overhaul, adding to signs of a wider corporate pullback on diversity, equity and inclusion.
Geoffrey Williams, the former global vice president of colleague attraction and inclusion at the luxury British fashion house, said his position had been “phased out” as part of a group restructuring programme.
Burberry is in the middle of a turnaround which includes a major cost-cutting programme that could lead to about 1,700 roles being axed by 2027, equivalent to around a fifth of its workforce.
Williams joined Burberry in April 2022 as global vice president for diversity, equity and inclusion (DEI), before being promoted to lead Burberry’s talent strategy as global vice president colleague attraction and inclusion in July last year. Prior to joining Burberry, he led DEI strategies at the British footwear brand Dr Martens and multinational technology and media conglomerate Thomson Reuters.
US private jobs data points to slowing labour market
OLIVIER DOULIERY/GETTY IMAGES
US stock index futures pointed to Wall Street indices opening lower today after weaker-than-expected private jobs data added to evidence of a slowing labour market.
Private employment decreased by 32,000 jobs last month after a revised 3,000 decline in August, the ADP National Employment Report showed. Economists had expected an increase of 50,000, following an originally reported gain of 54,000 in August.
The private surveys are all the market has to go on to assess the health of the economy after the federal government shutdown meant Friday’s jobs data and other key official economic releases would be delayed.
The S&P 500, the Nasdaq Composite and the Dow Jones Industrial Average was expected to open down 0.45 per cent, 0.5 per cent and 0.3 per cent respectively.
Big Pharma drives rise in FTSE 100
London’s leading share index is trading at a fresh intraday high, boosted by gains in big pharmaceutical companies on optimism that a tariff reprieve for US rival Pfizer could extend to others in the sector.
President Trump gave Pfizer the reprieve after it offered to cut prices for the drugs it sells to America’s Medicaid, some by about 80 per cent. Trump said he expected other drugmakers to follow suit.
The FTSE 100, which hit a record closing high yesterday of 9,350.43, was up 61 point, or 0.7 per cent, at 9,412.11 by lunchtime. AstraZeneca, Hikma Pharma, and GSK gained 6.15 per cent, 4.07 per cent and 3.65 per cent respectively.
Investors, however, were wary about the implications of the US government shutdown.
In the FTSE 250, up 0,07 per cent, Greggs was the biggest riser — up 6.9 per cent — after reporting quarterly results and said it planned to increase prices. Tate & Lyle was the biggest faller after a profits warning due to a demand slowdown in the Americas, its key market.
Coca-Cola’s Costa Coffee draws bid from Bain
Bain Capital, the private equity firm which backs the bakery chain Gail’s, has made a bid for Costa Coffee which has been put up for sale by its owner, Coca-Cola.
The investor’s special situations unit is among groups that have submitted first round bids for the unit, according to the Financial Times.
Initial bids were due in late September and Costa Coffee has also attracted interest from TDR Capital, the private equity firm which owns supermarket Asda, though Apollo reportedly declined to submit a bid. Bids are expected to be around the £2 billion mark.
Costa is the second-largest coffee chain in the world after Starbucks with more than 2,700 branches in the UK and Ireland.
Oil slides after Opec+ eyes further output increases
A 3D printed oil pump jack
DADO RUVIC/REUTERS
Oil prices fell for a third day as investors weighed Opec+ plans for a larger output increase next month, while data from the US and Asia showed signs of weakening demand.
The benchmark Brent crude futures contract for December delivery slid 12 cents to $65.91 a barrel.
The Organisation of the Petroleum Exporting Countries and its allies, known as Opec+, could agree to raise oil production by up to 500,000 barrels a day in November, triple the increase made for October, as Saudi Arabia seeks to reclaim market share.
Eurozone inflation tops European Central Bank target
Eurozone inflation rose to 2.2 per cent in September, up from 2 per cent in August, making this the first time inflation has gone above the European Central Bank’s 2 per cent target since April.
The rise in inflation in the 20 countries that share the euro was in line with forecasts while the reading also reinforces economists’ consensus that the bank will keep interest rates unchanged at 2 per cent for the third meeting in a row when its rate-setters meet at the end of this month.
Core inflation, which excludes food and energy prices, held steady at 2.3 per cent for the fifth month running, suggesting that underlying prices are not gaining momentum even as the headline figure has risen.
Greggs to raise prices to cover rising costs
The price of some of Greggs’ baked goods and sandwiches will go up tomorrow as the country’s biggest bakery chain attempts to offset soaring employment costs while grappling with sluggish sales.
Roisin Currie, the chief executive, said some items on its menu, such as the empire biscuit, will go up by 5p tomorrow, while customers will also pay more for its breakfast deal.
Its two-part breakfast deal, incorporating a roll and a drink, will rise from £2.95 to £3.15. The three-part breakfast deal, which also includes a side such as a yoghurt pot or hash browns, will rise from £3.95 to £4.15, the boss said.
Improved trading in the past two months and no further guidance downgrades reassured investors that the chain was making progress in a challenging market, sending its shares up 7.2 per cent, or 116p, to £17.20, and putting a squeeze on investors shorting the stock.
David Beckham gets $36.5m dividend
David Beckham
MERT AND MARCUS/MEGA
David Beckham has received a $36.5 million dividend payout from the business empire that licenses his name on products ranging from Boss coats to SharkNinja air fryers and Stella Artois beer.
Accounts for DRJB Holdings, the main holding company behind the Beckham brand, show it posted a net profit of $44.9 million (£35.1 million) last year, up from $36.2 million the year before. Revenue rose 1 per cent to $92.3 million from $91.2 million.
The group issued an underlying ordinary dividend of $52.5 million (£39 million) to shareholders during the reporting period. The total dividend payout, which includes a preference share dividend and a post-period payment, was about $81 million. Beckham, on behalf of his company Footwork Productions, received 45 per cent of that.
John Lewis appoints new chief people officer
The John Lewis Partnership has appointed Helen Webb as chief people officer, replacing Jo Rackham who has served as interim people officer. Webb joins from the same position at WHSmith and before that worked at the Co-op, Sainsbury’s and Marks & Spencer. Webb is joining JLP, which operates John Lewis and Waitrose, on November 24.
PPE Medpro told to repay £122m
Doug Barrowman and his wife Baroness Mone at the Cheltenham Racecourse
MAX MUMBY/GETTY IMAGES
PPE Medpro, a company linked to Baroness Mone, must repay the government almost £122 million for breaching a contract to supply 25 million surgical gowns during the coronavirus pandemic, a High Court judge has ruled.
The lingerie entrepreneur initiated discussions with the Department of Health for the company to supply 25 million surgical gowns made in China, which were later found not to be sterile, the court heard during the trial.
The Department of Health sued the company in December 2022, arguing that it had not complied with PPE laws.
PPE Medpro is ultimately owned by Mone’s husband, the Isle of Man-based businessman Doug Barrowman. An application to appoint administrators to take over the running of PPE Medpro was filed yesterday.
Mighty dollar slides on shutdown
The dollar has fallen against a basket of currencies today as the US government shutdown began — the third under President Trump.
The dollar index, which gauges the greenback against six currencies including the euro, the pound and the yen, stood at 97.64. In January, it was trading above 109.
“The dollar will resume its fall today if the political discourse suggests an extended shutdown,” said Joseph Capurso, the head of foreign exchange at Commonwealth Bank of Australia.
Overnight, a mixed reading for the Bureau of Labor Statistics’ job openings and labor turnover survey, or Jolts, pressured the dollar. The report showed US job openings increased marginally in August while hiring declined, consistent with a softening labour market.
Capurso added that weak US economic data was likely to weigh on the currency. There will be no official data while the shutdown lasts, placing more emphasis on private-sector economic indicators.
UK manufacturing shrinks hit by Jaguar cyberattack
Manufacturing activity shrank at the fastest pace in five months in September, reflecting subdued domestic demand and fewer export orders, according to the S&P Global UK manufacturing purchasing managers’ index (PMI).
The survey said there were reports that automotive supply chains were being disrupted following production shutdowns at Jaguar Land Rover after its cyberattack.
The reading for the sector, which accounts for about 9 per cent of the economy, fell to 46.2 in September from 47 in August, unchanged from a provisional estimate. A figure below 50 indicates contraction.
“Manufacturers reported that production had been scaled back in response to weaker intakes of new business, with demand from both domestic and export markets weak,” S&P Global said.
The survey said that manufacturers continued to cut staff numbers for the 11th month in a row across a range of industries, citing higher employment taxes, an increased minimum wage and past rises in energy costs.
Rob Dobson, at S&P Global Market Intelligence, said the survey provided “further worrying news for the health of UK industry”.
Tesla raises lease prices after US tax credit expires
Tesla has raised lease prices for all its cars in the US after a $7,500 federal tax credit that had boosted electric vehicle sales expired, according to the company’s website.
The tax break ended on September 30 after Congress eliminated the credit for new EV leases and purchases, as well as a $4,000 credit for used EVs.
Tesla, along with its rivals, was receiving the tax credit from the US government and including them in offering attractive lease prices for customers.
The monthly lease of the company’s bestselling Model Y increased to about $599 at the top range from $529. Prices of all cars, however, remain unchanged.
Nike’s focus on running shoes lifts sales
Nike is repositioning itself to focus on athletes
The sportswear company said it had cracked what runners want from their shoes as its athlete-focused turnaround strategy helped drive a surprise rise in quarterly sales.
Nike, which has faced competition from brands including On and Hoka, posted 20 per cent sales growth in the three months to the end of August.
The company is repositioning itself to focus on athletes after the return of Elliott Hill, a Nike veteran who left the company in 2020 but rejoined last year as chief executive.
Hill said: “It turns out runners mostly want three things from running shoes: big cushioning, stability, or an everyday shoe that returns energy”.
• Read in full: Nike’s running shoes power surprise sales increase
Taylor Wimpey targets 14,000 homes a year
A Taylor Wimpey development in Falkirk
GETTY IMAGES
The housebuilder has set out new medium-term targets to build 14,000 homes a year, ahead of meeting analysts and investors later today at a so-called “capital markets day”.
Taylor Wimpey said that “against the backdrop of softer market conditions beginning in the second quarter, we have delivered a robust sales rate”.
The company added: “We remain on track to deliver our full year 2025 guidance range of 10,400 to 10,800 UK completions, and we continue to expect to deliver full year group operating profit of £424 million.”
FTSE 100 heads for new closing high
London’s leading share index is heading for a fresh closing high, driven higher by UK pharmaceutical companies after US rival Pfizer got a tariff reprieve by offering to cut prices for the drugs it sells to America’s Medicaid by up to 85 per cent.
The FTSE 100, which hit a record closing high yesterday of 9,350.43, rose 31 points, or 0.3 per cent, to 9,381.83 this morning with Hikma Pharma, AstraZeneca and GSK rising 4.12 per cent, 3.63 per cent and 1.43 per cent respectively on optimism around tariffs. Trump said he expected other drugmakers to follow suit.
Entain, the owner of Ladbrokes, fell on concerns about possible higher taxes on gambling companies in the autumn budget.
A weaker dollar has lifted the pound 0.17 per cent to $1.3469. Yields on UK government bonds are up across the curve, except for 2-year bonds.
London’s Diversified Energy to move listing to New York
About 65 per cent of Diversified Energy’s shares are held by US investors
GAYLON WAMPLER/DIVERSIFIED ENERGY
The London-listed American gas and oil producer is to move its primary listing to the New York Stock Exchange.
The Alabama-based company’s energy assets are primarily located in the US, where its executive team is based. Diversified Energy was founded by Rusty Hutson, in 2001. It began trading in London in 2017.
Diversified Energy, which has had secondary listing on the NYSE since 2023, said: “The board has concluded that the US market is the natural long-term primary listing venue for the company and that moving to a US primary listing, while retaining a secondary UK listing … is in the best interests of its shareholders.”
About 65 per cent of the company’s shares are held by US investors.
ConvaTec invests £500m in UK hub
ConvaTec develops and provides products for managing chronic conditions
The FTSE 100 medical technology company is investing in a new research and development hub in Manchester as part of a £500 million commitment in the UK over the next ten years.
ConvaTec said the facility, to open in 2027, will employ up to 250 people, many of whom are expected to transfer from the existing site in Deeside, north Wales, where it will continue manufacturing.
The company develops and provides products for managing chronic conditions. It focuses on advanced wound care, ostomy care, continence & critical care, and infusion care.
Tate and Lyle warns on profits
Tate & Lyle said it expected performance to improve in the fourth quarter
The food ingredients group has warned that full-year revenue and profits will be lower than expected amid “a slowdown in market demand” as it updated investors ahead of interim results next month.
“We now expect revenue and earnings before interest, taxes, depreciation, and amortization to decline by low-single digit per cent compared to the prior year,” the company said.
Tate & Lyle said near-term market demand would remain challenging but it expected performance to improve in the fourth quarter. The shares have fallen more than 33 per cent over the past year.
Greggs shrugs off hit from hot weather
Sausage rolls at the counter in a Greggs in Caterham
CHRIS RATCLIFFE/GETTY IMAGES
The bakery chain has reported that like-for-like sales at company-managed shops rose 1.5 per cent in its third quarter.
Greggs said: “While unusually high temperatures persisted throughout July, which held back performance during the month, trading improved in August and September in more stable conditions.”
Total sales rose 6.1 per cent in the 13 weeks to September 27. Year-to-date sales are up 6.7 per cent. The FTSE 250 group said the “board’s expectation for the full year outcome is unchanged”.
Greggs shares have fallen 48 per cent since the start of the year to close at £16.07 yesterday on the back of a profit warning and amid fears that the bakery chain has overexpanded.
Traders are betting that they have further to fall. Financial Conduct Authority data shows that short-sellers are more bearish on Greggs than at any point since 2012 with 5.14 per cent of all its shares out on loan to those betting against it. The FTSE 250 group is the seventh-most shorted stock in London.
UK house prices edge higher in September
The average house price increased by 0.5 per cent month on month in September, after a 0.1 per cent monthly fall in August, according to the Nationwide Building Society.
Property values increased by 2.2 per cent annually during the month, slightly up from 2.1 per cent annual growth the previous month.
Across the UK, the average house price was £271,995.
Robert Gardner, Nationwide’s chief economist, said: “Despite ongoing uncertainties in the global economy, underlying conditions for potential home buyers in the UK remain supportive. Providing the broader economic recovery is maintained, housing market activity is likely to strengthen gradually in the quarters ahead.”
A list of previous US shutdownsShutdown could be ‘more disruptive than usual’
Jerome Powell, the Federal Reserve chair
JIM WATSON/GETTY IMAGES
The US government shutdown “could prove longer and more disruptive than usual”, analysts at Jefferies warned.
The longest previous shutdown, during the last Trump administration, lasted 35 days and was estimated to have cost the US economy $3 billion, according to the Congressional Budget Office.
Besides halting the release of Friday’s closely watched September non-farm payroll report, the shutdown could affect critical data in the weeks ahead, including inflation and GDP data, creating a vacuum ahead of the Federal Reserve’s rate-setting meeting at the end of October.
Jefferies also warned of a freeze on regulatory activity at agencies such as the Securities and Exchange Commission, the Food and Drug Administration and the Environmental Protection Agency, delaying IPOs, drug approvals, and environmental permits.
Jitters over US jobs market
The US government shutdown is the first in seven years
MEHMET ESER/SHUTTERSTOCK
Gold struck a fresh record high and Asian stocks wavered after the deadline passed for a US government shutdown that is expected to delay the release of crucial jobs data.
Agencies warned that the shutdown would halt the release of the closely watched September employment report on Friday and lead to the furlough of 750,000 federal workers at a daily cost of $400 million. It raises concerns about the impact on the already slowing US labour market.
Normally, markets shrug off shutdowns but this time is different, with the delay to the non-farm payrolls data and President Trump’s threat to permanently lay off workers. It will increase concerns at the Federal Reserve about the jobs market and the chance of a US interest cut in October has now risen to 94.6 per cent, according to the CME Fedwatch tool, up from 90 per cent a day earlier.
Gold climbed to $3,875 an ounce, hitting a record high for the third straight session. Japan’s Nikkei dropped 0.9 per cent and Australia’s ASX dipped 0.2 per cent, but South Korea’s Kospi rose 0.9 per cent. Chinese markets are closed for the week-long National Day holidays.
The FTSE 100 is forecast to open down 0.02 per cent after hitting a record closing high yesterday for its best quarterly percentage gain since the last three months of 2022. The index closed up 0.54 per cent at 9,350.43, and rose 6.7 per cent over the past quarter. Both S&P 500 futures and Nasdaq futures dropped 0.5 per cent.