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London’s FTSE 100 index ended the trading week 0.62% lower as technology stocks declined amid concerns over an artificial intelligence bubble.
Rightmove (RMV.L) was the biggest loser on the blue-chip index, dropping 12.30% on Friday’s close, after disclosing plans to boost investment in AI. As a result, the property portal now projects an underlying operating profit growth of 3% to 5% for 2026, lower than its targeted growth per annum of 4% to 9% for 2024 and 2025.
“AI is now becoming absolutely central to how we run our business and plan for the future,” Rightmove Chief Executive Officer Johan Svanstrom said. “We are investing to accelerate our capabilities, which we are confident will create an even stronger platform and higher-growth business over time.”
Meanwhile, International Consolidated Airlines Group (IAG.L) plummeted 10.87% after reporting a lower profit but stable revenue for the third quarter. Looking ahead, the British Airways owner said it is “on track to deliver another year of revenue and earnings growth.”
“We rate IAG Outperform. On our forecasts, IAG generates a higher margin, [return on invested capital] and [return on capital employed] than most European airlines, yet trades at a discount to most peers,” according to RBC Capital Markets. “We think IAG has a stronger outlook than given credit for, given a supportive capacity backdrop on the Atlantic, pricing potential from BA product measures, and given scope for business travel recovery to step up further.”
In economic news, UK house prices edged up 0.6% month over month in October, compared with the 0.3% fall in September and the consensus estimate of a 0.1% rise. The average property price is now 299,862 pounds sterling, the highest on record, data from Halifax showed.
Next week’s economic calendar will feature the UK’s gross domestic product report, trade balance, production figures and labor data for September.