The FTSE 100 (^FTSE) rose in afternoon trade, while US stock futures pulled lower as the deadline nears for an agreement to avert a partial US government shutdown.
“We have very large differences,” said Senate Democratic leader Chuck Schumer after a meeting at the Oval Office on Monday.
Vice president JD Vance went further, saying in a separate appearance: “I think we’re headed to a shutdown.” Republican Senate leader John Thune added of the Democratic approach: “This is purely and simply hostage taking.”
Lawmakers have until one minute after midnight on Tuesday local time to reach a last-gasp agreement or the first stoppage since 2019 could begin. Odds of a shutdown are near 85%, according to Polymarket.
For Wall Street, the concern is that the government’s economic data releases will halt during a stoppage. The Bureau of Labor Statistics (BLS) will “completely cease operations” if it happens, the Department of Labor said, likely delaying the release of Friday’s nonfarm payrolls report among other top-tier data.
Meanwhile in the UK, prime minister Keir Starmer is set to give his Labour party conference address at 2pm. The speech follows chancellor Rachel Reeves’ update on Monday, which touted Labour as the party of “securonomics” and responsible fiscal decisions.
Starmer is not expected to give away many hints as to future economic policy decisions and his address follows data released on Tuesday morning which confirmed a sharp slowdown in UK economic growth for the second quarter.
The UK economy grew by an unrevised 0.3% in the second quarter confirming a sharp slowdown, according to data from the Office for National Statistics (ONS).
This followed growth of 0.7% in the UK’s gross domestic product (GDP) in the first quarter, which was also unrevised, the ONS said on Tuesday.
The figures come at a crucial juncture for the government, which is at pains to stoke growth and shore up the economy with Reeves’ autumn statement slated for 26 November.
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London’s premier index rose 0.1%. Among top fallers in the index were drinks makers Coca-Cola (CCH.L) and Diageo (DGE.L)
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The DAX (^GDAXI) in Germany hovered just above the flatline
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Over in Paris, the CAC 40 (^FCHI) lost 0.4%
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The pan-European STOXX 600 (^STOXX) dipped 0.1%
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The pound rose slightly against the dollar (GBPUSD=X)
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US stock futures indicated selling at the open, with the Dow (YM=F) 0.3% lower, the S&P 500 (ES=F) down 0.2% and the Nasdaq (NQ=F) 0.2% lower in premarket
FTSE Index – Delayed Quote • USD
As of 14:27:09 BST. Market open.
^FTSE ^GDAXI ^FCHI
LIVE 12 updates
- Starmer touts national, long-term investment in speech
“Britain needs an economy that unites” people, “staring down the threats of a volatile world,” he said.
“You [could] balance the books by cutting long-term investment. You can cut taxes for the few whilst dismantling infrastructure for the many.”
But there’s another choice: industrial policy, British enterprise, cutting red tape, investment over austerity, he said.
There have been “difficult decisions on taxation,” he said. “We asked a lot at the last budget.”
“We’ve taken a huge step on the path of renewal.”
- How US stocks are faring at the opening bell DJI – Free Realtime Quote • USD
As of 9:42:09 GMT-4. Market open.
^DJI ^GSPC ^IXIC
- Starmer gives conference address
Starmer has come out swinging at critics of the government’s current economic policy:
He slams “tax cuts that magically pay for themselves, a wealth tax that somehow solves every problem”.
“Snake oil merchants” don’t have “interest in national renewal”.
- Exxon to cut 2,000 jobs worldwide
Exxon Mobil (XOM) will cut around 2,000 jobs globally as it implements a restructuring of its smaller offices as part of a long-term plan, Bloomberg reported, citing a memo by CEO Darren Woods.
The reductions total about 3% to 4% of the company’s global workforce. On Monday, Imperial Oil, which Exxon has a 70% stake in, said it will cut its workforce by 20%.
The cuts follow a slew of other oil and gas reductions in force. In August, BP (BP.L) revealed an extra 1,500 jobs and 1,200 contractor roles are being axed across its global workforce by the end of the year and signalled possible further cuts as it ramps up cost savings. The oil giant said it expects 6,200 jobs to go – about 15% of its office-based workforce.
This time last year, Shell (SHEL) also said it would cut its workforce by 20%.
- Stocks to watch at the open: Beyond Meat
Shares in Beyond Meat (BYND) rebounded more than 7% in pre-market trading on Tuesday, after sinking 36% in the previous session on its new debt proposal.
The plant-based meat producer said on Monday that it was making an exchange offer that is intended to eliminate more than $800m (£594m) of debt.
Beyond Meat (BYND) said that it had started the exchange offer to swap any and all of its convertible senior notes, due to expire in 2027, for notes due to expire in 2030 and shares of its common stock.
Ethan Brown, CEO of Beyond Meat (BYND), said: “As we continue our business transformation, we have simultaneously worked to strengthen our balance sheet and are today pleased to announce that we are launching an exchange offer for our existing convertible notes.
“The exchange offer is intended to significantly reduce leverage and extend maturity, two outcomes that meaningfully support our long-term vision of being the global plant protein company.”
- Is Smith & Nephew greasing wheels to leave London?
AJ Bell investment director Russ Mould, said:
- DIY and gardening products help drive shop price inflation to 1.4%
Vicky McKeever writes:
Shop price inflation rose 1.4% year-on-year in September, driven higher by non-food items, such as DIY and gardening products, according to data from the British Retail Consortium (BRC).
This was up from 0.9% growth in August and was above the three-month average of 1% inflation, the retail trade association said.
The BRC’s latest shop price monitor showed that non-food inflation increased 0.3% on the previous month. Year-on-year non-food prices were still 0.1% lower, though this was higher than the 12-month decline 0.8% prices to August.
Helen Dickinson, CEO of the BRC, said: “A year and a half of non-food deflation looks set to come to an end, as inflationary pressures spread beyond food. DIY and gardening saw rising prices, while some back-to-school categories continued to see reductions as retailers offered promotions on electricals such as laptops ahead of the new academic year.”
Food inflation of 4.2% in September was unchanged on a year-on-year basis, compared to the previous month but was above the three-month average of 4.1%. Fresh food inflation came in at 4.1%, while ambient food prices grew by 4.2% year-on-year, both unchanged from August’s BRC data.
- Gambling company shares dip as Reeves hints at tax hike
Shares in big London-listed gambling companies are being tested this morning after chancellor Rachel Reeves hinted in an ITV interview they could be subject to higher taxes.
She said: “I do think there’s a case for gambling firms paying more.
They make an important contribution to the economy but they should pay their fair share of taxes and we’ll make sure that that happens.”
There was no mention of this in her Labour conference speech, which focused on “securonomics” — or creating a secure and sustainable economy through sensible spending.
- Here’s the US stock futures chart CME – Delayed Quote • USD
As of 9:32:08 GMT-4. Market open.
ES=F YM=F NQ=F
- US stock futures dip as government shutdown looms
US stock futures declined on Tuesday morning with Wall Street worried a government shutdown could begin as soon as Wednesday.
Futures attached to the Dow Jones Industrial Average (YM=F), the benchmark S&P 500 (ES=F), and the tech-heavy Nasdaq 100 (NQ=F) fell around 0.2%.
President Trump met with Democrats in the Oval Office on Monday, but both sides left the talks indicating they had made no progress on striking a deal that would avert a government shutdown. Lawmakers have until Wednesday at 12:01am ET to reach an agreement or else a partial government shutdown is set to begin.
“I think we’re headed to a shutdown,” Vice President JD Vance said after the meeting.
If a stoppage goes forward, in addition to mass firings and chaos at the airport, the government is set to cease publishing economic data at a time when the Federal Reserve and Wall Street have a particular need for it. The Department of Labor said its Bureau of Labor Statistics (BLS) would “completely cease operations” during a stoppage, with just one of 2,055 full-time employees continuing to work.
- UK economy grows by 0.3% in Q2, as expected
The UK economy grew by an unrevised 0.3% in the second quarter confirming a sharp slowdown, according to data from the Office for National Statistics (ONS).
This followed growth of 0.7% in the UK’s gross domestic product (GDP) in the first quarter, which was also unrevised, the ONS said on Tuesday.
The figures come a day after chancellor Rachel Reeves delivered a speech at the Labour party conference, in which she pledged an approach rooted in “securonomics”, emphasising economic stability and sensible spending over calls to shake up fiscal rules.
“In the months ahead, we will face further tests, with the choices to come made all the harder by harsh global headwinds and the long-term damage done to our economy, which is becoming ever clearer,” she said.
In interviews ahead of her speech in Liverpool on Monday, Reeves declined to rule out some tax rises in the autumn budget, which she is set to deliver on 26 November.
- Good morning!
Hi from London. It’s Tuesday.
This morning we’ve already had revised GDP figures from the Office for National Statistics. We’ve also had the British Retail Consortium’s latest shop price index (more to come on those).
Prime Minister Keir Starmer is set for his Labour Party conference speech at 2pm.
Elsewhere, China’s latest manufacturing PMI gives a read on the economic health of one of the world’s growth engines.
A US government shutdown is still in the offing, with no agreement made just yet.
Let’s get to it.