The FTSE 100 index is trading higher as market sentiment improves following the Chancellor’s emergency fiscal statement.

Sterling stood at $1.13 this morning, with the yield on 10-year government bonds still near 4% after yesterday’s sharp fall.

As well as gains by some of the sectors exposed to the now defunct “mini-Budget”, stock market sentiment in London has been lifted by strong trading on Wall Street after a decent start to the third quarter earnings season.

FTSE 100 Live Tuesday

• FTSE 100 higher amid calmer trading

• Panmure in talks on finnCap merger

• Bellway reveals drops in housing demand

Inflation set to return to double-figures as food prices surge

Tuesday 18 October 2022 15:54 , Simon Hunt

Inflation is expected to have returned to double-figures in September due to rising food prices, according to economists.

The Office for National Statistics (ONS) will reveal the latest increase in the cost of living for UK households on Wednesday morning.

Economists have predicted that it will show Consumer Price Index (CPI) inflation increased to 10% in September, compared with 9.9% the previous month.

There is likely to be an increase despite falls in petrol prices, which dropped by around 4% over the month according to Forex.com, and used car prices.

Experts at Pantheon Macroeconomics have said this is expected to have been offset by “further increase in food CPI inflation and services”.

Biggest movers as FTSE 100 makes gains

Tuesday 18 October 2022 15:33 , Simon Hunt

As trading on the London Stock Exchange draws to a close, the FTSE 100 index has gained 60 pints to 6,980. Here’s a look at some of the biggest movers of the day:

Lafarge faces $780 million loss after pleading guilty to conspiracy to support to the Islamic State

Tuesday 18 October 2022 15:28 , Simon Hunt

French cement maker Lararge has pled guilty to US charges of conspiracy to provide material support to the Islamic State, a court has heard.

The firm has agreed to forfeit $687 million and is set to receive a fine of $90 million in relation to the charges.

US stocks make gains after positive earnings news

Tuesday 18 October 2022 15:01 , Simon Hunt

Stocks made gains in the opening minutes of trade on Wall Street as investors welcomed a string of better-than-expected third-quarter earnings numbers. The S&P index and the Nasdaq both rose 2%.

Profits at Goldman Sachs fell less than expected as the bank announced a restructuring, while revenues at Healthcare giant Johnson and Johnson posted earnings that surpassed analyst forecasts.

Shares in social media giant Meta rose lower than the Nasdaq average, gaining 0.8% after the UK competition watchdog said the firm would have to sell Giphy, the GIF search engine it bought in May 2020 in a $315 million deal.

The dollar strengthened against the pound after the Bank of England denied reports it was to delay the sale of government bonds.

Renault boss calls for more equal marriage with partner Nissan

Tuesday 18 October 2022 14:50 , Mark Banham

Renault boss Luca de Meo has indicated that he would like to see a “more equal” relationship between his business and fellow car marque and partner Nissan .

“This is not one side losing and the other side winning,” he told the Japanese Nikkei newspaper.

“Each company needs to do what is best,” he told the title, stating that was the spirit of their alliance.

Renault is Nissan’s largest shareholder with 43%, while the Japanese automaker owns 15% in the French car manufacturer.

The two companies said last week they were in negotiations about a new phase in their partnership that could mean Nissan invests in a new electric vehicle venture Renault plans to launch.

Blow to Meta as social media giant forced to sell Giphy by UK competition regulator

Tuesday 18 October 2022 14:11 , Simon Hunt

Social media giant Meta suffered a blow today as the firm was ordered to abandon its $315 million takeover of gif search engine Giphy by the UK’s competition watchdog.

The Competition and Markets Authority found that Meta’s takeover of Giphy could allow the firm to limit other social media platforms’ access to GIFs, making those sites less attractive to users and less competitive.

Stuart McIntosh, Chair of the independent inquiry group carrying out the remittal investigation, said: “This deal would significantly reduce competition in 2 markets.

“It has already resulted in the removal of a potential challenger in the UK display ad market, while also giving Meta the ability to further increase its substantial market power in social media.”

Meta said it would not be contesting the decision.

read more here

Goldman Sachs attempts reorganisation after profits fall

Tuesday 18 October 2022 13:30 , Simon Hunt

Goldman Sachs is to embark on a reorganisation into three separate businesses, the firm has said, after it suffered a drop in third-quarter profits.

The Wall Street Bank is to split into asset and wealth management, global banking and markets and platform solutions, after revenues fell 12% to $12 billion in the three months to September.

Profits fell 44% to $8.25 a share, slightly ahead of analyst expectations of $7.69 a share according to Refinitiv data.

Goldman shares rose 2.5% to $315 dollars in pre-market trading.

London pubs could run out of beer as GXO workers go on strike

Tuesday 18 October 2022 12:53 , Simon Hunt

Thousands of pubs across London and the South East are in danger of running out of beer as around 1,000 workers at a major supplier to brewers are set to go on strike.

Drivers at GXO, which works with major brewers and pub chains like Heineken and Shepherd Neame, are set to go on strike between 31 October and November 4 in a dispute over pay. They will also commence an overtime ban on 24 October.

GXO Logistics delivers to around 4,500 pubs, clubs and bars in London and the South East and aare responsible for about 40 per cent of the beer deliveries to UK pubs and venues.

FCA enforcement chief Mark Steward to step down

Tuesday 18 October 2022 12:04 , Simon Hunt

Mark Steward has announced he will be stepping down as the FCA’s executive director of Enforcement and Market Oversight after seven years with the regulator.

Since joining the FCA in 2015, Mark has led the delivery of some of the FCA’s most complex, high-profile, and precedent-setting enforcement cases, with many notable successes against major global financial institutions and individuals.

Nikhil Rathi, Chief Executive of the FCA, said: “Mark has brought his formidable experience as a regulator and as a litigator to the FCA delivering significant enforcement cases across a broad spectrum, as well as the FCA’s data-led approach to market oversight.

“That enormous contribution is a result of Mark’s abiding belief in fairness, that markets must be clean if the economy is to thrive and in doing the right thing on behalf of consumers.”

Johnson and Johnson beats expectations

Tuesday 18 October 2022 11:38 , Simon Hunt

Healthcare conglomerate Johnson and Johnson posted third quarter sales that beat market expectations in a sign of resilient demand in the sector.

Sales at the firm rose 1.9% to $23.8 billion, more than $400 million above analyst estimates, according to Refinitv data.

Revenues were boosted by a demand for Crohn's disease drug Stelara and cancer drug Darzalex.

Bank of England says FT report of delayed bond sales is innacurate

Tuesday 18 October 2022 10:51 , Simon Hunt

The Bank of England has rejected claims by the Financial Times that it was delaying the start of its sales of government bonds.

A bank spokesperson said: “This morning’s FT report that the BoE has decided to delay MPC gilt sales (‘QT’) is inaccurate.”

The FT had reported that the central bank was set to push back the start date from its sales of government beyond the scheduled date of 31 October.

Profit upgrades boost Ibstock and Lookers, FTSE 100 higher

Tuesday 18 October 2022 10:25 , Graeme Evans

Rio Tinto shares are lower today after the mining giant scaled back the City’s expectations on iron ore shipments for this year.

On a day when the FTSE 100 index made further progress, Rio’s cautious third quarter update left it among just a handful of stocks on the blue-chip fallers board.

It warned of potential downside risks to demand and said it now expects full-year iron ore shipments at the lower end of its guided range for between 320 and 335 million tonnes, which compares with the 322 million tonnes seen last year.

Rio’s fortunes are particularly clouded by uncertainty over China’s economy due to the country’s zero-Covid policy and property market weakness.

These factors have curtailed China's steel production and consumption by about 9% August year-to-date, with iron ore prices down near an 11-month low today.

Rio’s shares fell 27p to 4793p and have dropped by more than a fifth since the summer, when the mining giant declared another bumper dividend pay-out.

Other mining stocks were more robust today due to the improved market sentiment as Anglo American gained 25.5p to 2699p and Antofagasta lifted 25p to 1118p.

The wider FTSE 100 index lifted 1% or 74.76 points to 6995 after Monday’s positive session on Wall Street saw the S&P 500 gain by more than 2.5% and the tech-focused Nasdaq Composite post its best performance since July.

Beneficiaries in London included Amazon and Tesla-backer Scottish Mortgage Investment Trust, which gained 16.8p to 749.8p, and grocery warehouse stock Ocado as shares continued their recent improvement with a rise of 8.7p to 482.6p.

The mid-cap FTSE 250 index improved 170.35 points to 17,673.19, with bricks and concrete products firm Ibstock among the frontrunners after it upgraded full-year expectations.

It credited its effective cost management and a slight improvement in clay sales volumes due to robust demand in its end markets. Shares jumped 5% or 7.3p to 159p, but they had been above 200p as recently as late July.

In the FTSE All-Share, Lookers surged 7% after the car retailer’s latest boost to profits guidance. Shares lifted 4.7p to 75.7p but broker Liberum has a target price of 122p as the industry’s supply and demand imbalance continues to support margins.

Bellway reveals drop in housing demand and warns of a potentially shrinking market after mini-Budget

Tuesday 18 October 2022 10:04 , Simon Hunt

Housebuilder Bellway blamed the government’s now-demolished mini-Budget for a potentially shrinking housing market as it revealed a drop off in private reservations today, alongside record annual revenue.

Jason Honeyman, chief executive, told The Standard that the housing market is “in the eye of the storm until things settle down politically”. He blamed the slowdown in the market from late September on the government’s ill-fated tax and spending plans “pretty much 100%”.

“I need stability like any business needs stability, so we hope that they sort themselves out soon, so people can get on with their jobs and their lives … Help for the first-time buyer with deposits, that’s probably a good thing to keep the market moving, otherwise we are going to see it shrink.”

Looking at the recent Downing Street U-turns, he added: “We’ve seen all the changes and I think we are in the middle of it. And it worries me greatly, because the actions of the government are putting people’s jobs at risk.”

read more here

THG shares rise after Softbank sells stake to founder and Qatar

Tuesday 18 October 2022 09:40 , Simon Hunt

Shares in ecommerce firm THG lifted on Tuesday after Softbank offloaded its stake to the firm’s founder and the Qatar Investment Authority.

The Manchester-based group’s stock rose by 10.2% to 50.5p in early trading as shareholders welcomed the move.

Nevertheless, THG’s shares have fallen to around 90% below the level when Softbank first purchased an almost-£500 million minority stake.

The exit by Softbank marked an end to the Japanese investment group’s disastrous investment in THG, writing off as much as £450 million from previous valuations of its stake.

Panmure in talks on finnCap merger

Tuesday 18 October 2022 09:15 , Simon English

PANMURE Gordon, the storied City broker led by Bob Diamond, is in takeover talks with tech specialist finnCap in what could be first of many such merger deals.

With deal flow drying up and clients nervous, small and medium sized firms are likely to seek safety in numbers.

Speculation about tie-ups are bound to extend to Numis, Cenkos and perhaps Peel Hunt.

Panmure came under the control of Diamond and the Qatari royal family back in 2017. It was hoped his network of middle east contacts and the skill of CEO Rich Richie, a former Barclays colleague, would revive the firm.

Panmure did manage to make a £3 million profit last year but has more usually been deeply in the red in recent years.

A tie-up with Finncap would bring one of the oldest names in the City – Panmure was formed in 1876 and remains at the heart of the Square Mile at One New Change – with one of the newest.

FinnCap was set up in 2007 and is based near the Museum of London.

Following a report on Sky News last night, finnCap issued a terse statement to the market saying that it had received “indicative non-binding proposals” from Panmure regarding a merger. No financial details were revealed.

Under City rules, Panmure has until 5pm on November 15 to make a firm bid or walk away.

Finncap is most closely associated with Sam Smith, one of the few women to head a City of London broker. She stepped down as CEO in June, a surprise to many, saying she wanted to build a portfolio of non-executive roles.

She had built finnCap over 24 years and was regarded as a modernising presence in many ways.

Diamond has always been a more controversial figure. In 2012, he was paid £17 million by Barclays, an amount that infuriated many, including some of his own staff.

Barclays had narrowly avoided a UK government bailout during the bank crisis by taking billions from Qatar. That later led to lawsuits and suggestions that Barclays offered Qatar money to buy its shares, something the bank denied.

Frasers breaches 50% takeover target for Australian retailer MySale

Tuesday 18 October 2022 09:00 , Mark Banham

Mike Ashley’s Frasers Group has now breached the ‘unconditional’ 50% share threshold for Australian retailer MySale that means the owner of Sports Direct and Jack Wills will now move in for a full takeover.

Frasers said that as of the close of trading yesterday it either owned or had received valid acceptances for 50.59% of MySale shares, putting the owner of House of Fraser and fellow fashion site Missguided in a clear position to acquire the flash sales site.

In an announcement to the London Stock Exchange, Frasers said: “Frasers would like to remind MySale Shareholders that, as at the date of this announcement, Frasers owns or has received valid acceptances in respect of the majority of MySale Shares.

“Frasers intends to continue to acquire additional MySale Shares by means of market or other purchases and in accordance with the Takeover Code. MySale Shareholders who wish to transfer their holdings of MySale Shares to Frasers may do so either by means of a market sale or by accepting the Mandatory Offer via the acceptance procedure outlined in this announcement.”

FTSE 100 higher, Rio Tinto falls after update

Tuesday 18 October 2022 08:41 , Graeme Evans

The FTSE 100 index is up 60 points at 6980, aided by last night’s strong session on Wall Street and an ongoing recovery by banks and other UK-focused stocks.

One of the strongest performing blue-chip stocks was Amazon and Tesla-backer Scottish Mortgage Investment Trust, which gained 13.4p to 746.4p after the tech-focused Nasdaq Composite surged more than 3% last night.

Grocery warehouse technology stock Ocado also continued its recent recovery by adding another 8.8p to 482.7p, but iron ore mining giant Rio Tinto fell 53.5p to 4766.5p after its third quarter production update.

The FTSE 250 index improved 0.6% or 111.33 points to 17,614.17, with Moneysupermarket.com and building materials firm Ibstock both 5% higher in the wake of their respective trading updates.

Women’s fashion retailer Sosandar faces ‘volatile’ economy

Tuesday 18 October 2022 08:04 , Mark Banham

Women’s fashion retailer Sosandar has recorded a boost in revenues and slight profits as it pulls itself back into the post-Covid trading era and wrests with “volatile macroeconomic conditions”.

For the six-month period ended 30 September 2022 the women’s fashion retailer recorded net revenues of £20.9 million, a 72% increase against £12.2 million the first half of last year.

However, margins were slightly down at 54.4% on 56.5% the previous year in what the company said was reflective of a “more normal post-Covid trading period” with a planned end of season sale in August.

Pre-tax profit was also slight at £100,000 but replaced a £1.08 million loss in the first half last year.

Ali Hall and Julie Lavington, co-CEOs, said: “The challenging and volatile macroeconomic conditions currently make the short-term future difficult to predict with any certainty and their true impact on the consumer is not yet known, however, we remain confident in our long-term strategy.”

Moneysupermarket expects profits at upper end of forecasts

Tuesday 18 October 2022 07:45 , Simon Hunt

Moneysupermarket says the cost of living crisis has helped profits reach the upper end of expectations as price-conscious consumers shop around for the best deal.

Peter Duffy, CEO of Moneysupermarket Group, said: “The cost-of-living crisis makes our purpose of helping households save money as important as ever.

“This quarter was another good performance. There are early signs of improving trends in the Insurance market, and in Money more consumers are finding attractive products to switch to.”

FTSE 100 seen higher, earnings lift Wall Street shares

Tuesday 18 October 2022 07:33 , Graeme Evans

UK assets rallied yesterday as the new Chancellor sought to claw back the government’s market credibility by dumping nearly all the tax cuts in last month’s mini-budget.

Sterling rose 2.4% at one point and the yield on 10 year UK gilts tumbled to 3.96% in the largest daily decline outside of the current turmoil since the Conservatives won the 1992 general election.

The pound firmed at around $1.135 today after the Financial Times reported that the Bank of England’s plan for quantitative tightening is set to be delayed.

The developments came as global markets also cheered a robust start to the third quarter earnings season, leading to a 2.65% jump for the S&P 500 index and 3.4% for the tech-focused Nasdaq Composite during its best session since July.

Wall Street confidence will be tested later, however, with the release of figures from Netflix, Goldman Sachs and Johnson & Johnson.

The FTSE 100 index finished 0.9% higher yesterday and is expected to add another 55 points at 6975, according to CMC Markets.

UK revenues at 888 hit by new gambling laws

Tuesday 18 October 2022 07:21 , Rhiannon Curry

Improved safety measures in online gambling in the UK have knocked betting company 888’s UK online revenue by 13% in the last three months, the company has revealed.

The Gambling Commission introduced a raft of new measures last summer, including the introduction of limits on spin speeds, and the permanent ban on features that speed up play or celebrate losses as wins.

As a result, the average spend per player for 888’s UK online customers was down 14% year-on-year, it said.

This reduced the amount the company made via its online channels in the UK by 13% to £171 million for the three months to the end of September. Total revenue for the whole group was down 7%, at £449 million, in the same period.

Jet2 orders 35 new aircraft in $3.9 billion deal as it expects leisure industry to take off

Tuesday 18 October 2022 07:19 , Simon Hunt

Package holiday firm Jet2 says it has ordered another 35 aircraft as it anticipates future growth in the leisure travel industry.

The firm has reached an agreement with Airbus to purchase 35 new A320 aircraft in a $3.9 billion deal, with the option to extent its contract to 71 aircraft at a total cost of $8 billion. The order means Jet2 has a totoal of 98 ordered aircraft.

Jet2 plc’s Executive Chairman Philip Meeson said: “We are delighted to build on our existing relationship with Airbus and to have placed this additional aircraft order which provides the Company with certainty of supply well into the next decade.

“The order reflects our confidence that we have a much-loved product built on sector leading Customer Service which we can continue to grow.”