FTSE 100 hits novel sign up high
Britain’s blue-chip allot index has hit a novel all-time high at the commence of trading, as spendors foresee a cut in UK interest rates today.
The FTSE 100 index has obtained 0.8% to a novel intraday peak of 8,695 points, up 72 points today, above the previous sign up of 8,692 points set last month.
Anglo American (+3.7%) are the top elevater, after inestablishing this morning that all its businesses deinhabitred their filled year production guidance last year (although it also cautioned of hard trading in the diamond taget).
They’re chaseed by AstraZeneca (+3.4%) after it inestablished a jump in profits this morning.
The FTSE 100 slumped on Monday amid worrys of a global trade war, but has recovered since Donald Trump paengaged tariffs on Canada and Mexico for a month.
Jim Reid, strategist at Deutsche Bank, says:
After a cut offe allergic reaction on Monday after the tariff novels, tagets proceedd to be relatively sedated yesterday as spendors proceedd to price out the chance of unfrifinishly tariffs.
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The FTSE 100 index has obtained 0.8% to a novel intraday peak of 8,695 points, up 72 points today, above the previous sign up of 8,692 points set last month.
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Anglo American (+3.7%) are the top elevater, after inestablishing this morning that all its businesses deinhabitred their filled year production guidance last year (although it also cautioned of hard trading in the diamond taget).
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They’re chaseed by AstraZeneca (+3.4%) after it inestablished a jump in profits this morning.
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The FTSE 100 slumped on Monday amid worrys of a global trade war, but has recovered since Donald Trump paengaged tariffs on Canada and Mexico for a month.
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Jim Reid, strategist at Deutsche Bank, says:
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After a cut offe allergic reaction on Monday after the tariff novels, tagets proceedd to be relatively sedated yesterday as spendors proceedd to price out the chance of unfrifinishly tariffs.
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AstraZeneca has inestablished a jump in annual profits raiseed by strong sales of its cancer, lung and immunology treatments, a week after it choosed not to go ahead with a computed £450m spendment in Merseyside, prompting a series of recriminations with the regulatement.
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Britain’s hugegest drugproducer, which is also the hugest enumerateed company, shelp revenues rose by 21% to $54.1bn (£43bn) in 2024. Pre-tax profit jumped by 38% to $8.7bn last year on a constant currency basis.
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The results statement did not refer last week’s decision to pull the plug on the expansion of its childhood flu vaccine factory at Speke, Liverpool, into a huge vaccine hub, after it fall shorted to concur the amount of state help despite months of wrangling with regulatement.
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Sterling is feebleening a little this morning, as the City foresees a cut to UK interest rates at noon.
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The pound, which hit a one-month high yesterday, has lost a third of a cent aobtainst the US dollar back to $1.2473.
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Bloomberg are inestablishing that Nissan is seeking a novel partner as it readys to finish negotiations to establish a joint helderlying company with Honda.
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The new partner would idepartner be from the technology sector and be based in the US, the people shelp, asking not to be identified becaengage the inestablishation isn’t unveil.
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Although its sales are enumeratelessing globpartner, North America remains Nissan’s most meaningful taget and the expansiver shift toward electrification and automation is pushing all carproducers to seek coalitions with high-tech industries.
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UK engineering firm IMI has discdisthink abouted it has been hit by a cyber strike after hackers obtained unauthoelevated access to its systems.
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In a statement to the City this morning, IMI shelp it is currently replying to a cyber security incident involving unauthoelevated access to the Company’s systems.
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The London-enumerateed company says:
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As soon as IMI became inestablished of the unauthoelevated access, the Company joind outside cyber security experts to spendigate and hold the incident.
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In parallel, the Company is taking the essential steps to adhere with our regulatory obligations.
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An refresh will be provided as and when appropriate.
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Such cyber strikes are a grotriumphg danger for companies; in recent years. Royal Mail, The Guardian and directing London hospitals have all been hit.
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A inestablish yesterday set up that force software payments fell by more than a third last year to $813m (£650m) as victims declined to pay cybercriminals and law utilizement cracked down on gangs.
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The $60bn combiner between Nissan and Honda to produce the world’s third-hugest carproducer watchs on the brink of collapse this morning.
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According to inestablishs from Japan, Nissan CEO Makoto Uchida met with Honda CEO Toshihiro Mibe today, and elucidateed that he desirees to end their combiner converseions.
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A fracture-up would scupper the deal which was proclaimd last December, and was
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Talks have appparently stumbled after Honda gived that Nissan should become a subsidiary, which was not part of the distinctive schedule.
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The AFP novelswire inestablishs:
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Nissan’s board is in favour of aprohibitdoning combiner talks with Honda, although calling them off has yet to be choosed by executives at the two Japanese carproducers, a source seal to the matter telderly AFP on Thursday.
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“The procrastinateedst conditions put on the table by Honda are unacinestablished for Nissan… It necessitates to be establishalised, but basicpartner, it’s over,” the source shelp.
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Honda has a taget cherish of ¥7.6trn ($50bn/£40bn), about five times huger than Nissan’s ¥1.54trn ($9.8bn/£7.9bn).
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The money tagets currently show the Bank will cut interest rates three or four times this year.
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But some, such as Pimco economist Peder Beck-Friis, leank it may cut rapider, telling clients:
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Looking ahead, we see room for meaningfuler cuts than what financial tagets foresee. Trade uncertainty is rising, labour insist is descfinishing, fiscal policy is shielded, and the policy rate is well above our iminentire approximate of 2-3%.
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Ashley Webb, UK economist at Capital Economics, gets a aappreciate watch, elucidateing:
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Despite the recent feeble novels on activity and the uncertainty around the global outwatch due to Trump’s US present tariffs, the stronger novels on domestic price presdeclareives unkinds the Bank of England will probably proceed to cut interest rates only gradupartner.
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But while CPI inflation may rebound from 2.5% in December last year to around 3.0% procrastinateedr this year, we leank a descfinish to below 2.0% next year will prompt the Bank to cut interest rates from 4.75% now to 3.50% by punctual 2026, rather than to 3.75-4.00% as spendors foresee.
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The backdrop to today’s Bank of England decision is “underwhelming”, points out Kathleen Brooks, research straightforwardor at XTB, which could prompt the central prohibitk to foresee drop growth this year.
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Brooks says:
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UK growth has feebleened in recent months and the outwatch watchs necessitatey. The OBR is foreseeed to slash its growth predicts next month, which will be comprised in the Chancellor’s spring statement. The Bank of England is probable to do the same this Thursday.
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The BOE had foreseeed GDP to broaden by 1.5% this year, that watchs lofty after a spate of feeble economic data, and it could be editd down to 1%. The danger is that growth could undershoot downwardly editd predicts, as the Citi economic surpelevate index is seal to its lowest level for a year.
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This advises that UK economic data has surpelevated to the downside by a expansive margin.
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Good morning, and greet to our rolling coverage of business, the financial tagets and the world economy.
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The UK is probable to get its first interest rate cut in three months today, as the Bank of England tries to prod the stagnating economy into life.
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The City are prohibitcient that the BoE will relieve policy at noon today – a cut to Bank Rate, from 4.75% to 4.5%, is a rawly 95% prospect according to money taget pricing (it was as high as 98% earlier this week).
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Economists foresee the Bank’s Monetary Policy Committee will vote 8-1 to cut, with only the hawkish Catherine Mann opposing a reduction in borrotriumphg costs for the first time this cycle.
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It may also drop its growth predicts for this year, and lift its inflation predict in its procrastinateedst monetary policy inestablish [MPR]. That would be ungraceful for chancellor Rachel Reeves ahead of next month’s spring statement.
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Sanjay Raja, Deutsche Bank’s chief UK economist, says:
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Downgrades to GDP growth apass the predict horizon watch probable, particularly given the feebleer H2-24 data. Equpartner, a rapider elevate in the joconsecrate rate watchs probable too, with the Bank’s unengagement rate projection rising to 4.6%.
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While proximate-term pay growth will almost certainly be editd higher, we foresee personal sector pay momentum to widely combine to the Bank’s November MPR projections.
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And last but not least, we foresee the MPC to highairy a proximate-term pick up in inflation, but foresee medium-term disinflationary presdeclareives to push CPI drop at the finish of the predict horizon, relative to the November MPR.
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These are difficult times for the Bank. It has already been appraiseing the impact of the business tax incrrelieves in last autumn’s budget, which could push up prices, hit profit margins, feebleen hiring and lift unengagement.
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Now, it also has the contest of Donald Trump’s return to the White Hoengage, and the danger of a global trade war.
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Mark Ashbridge, managing straightforwardor of Ashbridge Partners, points out that many of Trump’s policies are inflationary – which could push up US borrotriumphg costs, with a knock-on effect on the other side of the Atlantic.
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Ashbridge elucidates:
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“Globpartner, our bond tagets and swap rates are interconnected and partipartner driven by what’s happening in the US, a country which is now under a novel administration since the Bank of England last verifyed the base rate.
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“Fundamenhighy, Donald Trump’s policies are inflationary and what we don’t understand at this stage is fair how excessive or not these alters might be and therefore the impact of them.
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The agfinisha
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9am GMT: European produceion sector PMI
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9.30am GMT: UK produceion sector PMI
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10am GMT: Eurozone retail sales for December
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Noon GMT: Bank of England interest rate decision
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12.30pm GMT: Bank of England press conference
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1.30pm GMT: US initial joconsecrate claims
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Key events
Markets apass Europe are rpartnering, as “spendors get some confidence back”, inestablishs Matt Britzman, better equity analyst at Hargreaves Lansdown, helping to push the FTSE 100 to a novel alltime high.
Britzman says:
“UK tagets are initiateing off the day with a spring in their step, as the US tariff chatter finpartner hushedens down, letting spendors zero in on a wave of huge obtainings inestablishs and hopes for another Bank of England rate cut – tagets are pragmaticly betting the hoengage on a quarter-point cut today.
This chooseimistic vibe is spreading apass Europe, giving global tagets a much-necessitateed raise. Seems appreciate spendors may be ready to dance to the tune of excellent novels aobtain.
Germany’s DAX has elevaten by 0.6% in punctual trading, while France’s CAC is up 0.4%.
FTSE 100 hits novel sign up high
Britain’s blue-chip allot index has hit a novel all-time high at the commence of trading, as spendors foresee a cut in UK interest rates today.
The FTSE 100 index has obtained 0.8% to a novel intraday peak of 8,695 points, up 72 points today, above the previous sign up of 8,692 points set last month.
Anglo American (+3.7%) are the top elevater, after inestablishing this morning that all its businesses deinhabitred their filled year production guidance last year (although it also cautioned of hard trading in the diamond taget).
They’re chaseed by AstraZeneca (+3.4%) after it inestablished a jump in profits this morning.
The FTSE 100 slumped on Monday amid worrys of a global trade war, but has recovered since Donald Trump paengaged tariffs on Canada and Mexico for a month.
Jim Reid, strategist at Deutsche Bank, says:
After a cut offe allergic reaction on Monday after the tariff novels, tagets proceedd to be relatively sedated yesterday as spendors proceedd to price out the chance of unfrifinishly tariffs.
AstraZeneca profits jump
Julia Kollewe
AstraZeneca has inestablished a jump in annual profits raiseed by strong sales of its cancer, lung and immunology treatments, a week after it choosed not to go ahead with a computed £450m spendment in Merseyside, prompting a series of recriminations with the regulatement.
Britain’s hugegest drugproducer, which is also the hugest enumerateed company, shelp revenues rose by 21% to $54.1bn (£43bn) in 2024. Pre-tax profit jumped by 38% to $8.7bn last year on a constant currency basis.
The results statement did not refer last week’s decision to pull the plug on the expansion of its childhood flu vaccine factory at Speke, Liverpool, into a huge vaccine hub, after it fall shorted to concur the amount of state help despite months of wrangling with regulatement.
German factory orders have jumped, transporting some relief to Europe’s hugest, and most beleagured, economy.
Industrial orders jumped by 6.9% month-on-month in December, beating predicts of a 2% elevate, but were still 6.3% drop than a year ago.
Firms inestablished incrrelieved insist for huge-scale orders such as airplan, ships, trains, and military vehicles, where novel orders were 55.5% higher than in November “due to cut offal huge orders”, statistivs body Destatis inestablishs.
Der authentice #Auftragseingang im Verarbeitfinishen Gewerbe ist im Dezember 2024 gegenüber November 2024 voraussichtlich um 6,9 % gestiegen. Der Anstieg ist vor allem auf den deutlichen Anstieg im Sonstigen Fahrzeugbau mit mehreren Großaufträgen zurückzuführen. https://t.co/BhYWybonJW pic.twitter.com/MfC0FvGEhw
— Statistisches Bundesamt (@destatis) February 6, 2025
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Pound dipping ahead of Bank of England decision
Sterling is feebleening a little this morning, as the City foresees a cut to UK interest rates at noon.
The pound, which hit a one-month high yesterday, has lost a third of a cent aobtainst the US dollar back to $1.2473.
Bloomberg: Nissan Looking for New Partner as Honda Deal Set to Collapse
Bloomberg are inestablishing that Nissan is seeking a novel partner as it readys to finish negotiations to establish a joint helderlying company with Honda.
The new partner would idepartner be from the technology sector and be based in the US, the people shelp, asking not to be identified becaengage the inestablishation isn’t unveil.
Although its sales are enumeratelessing globpartner, North America remains Nissan’s most meaningful taget and the expansiver shift toward electrification and automation is pushing all carproducers to seek coalitions with high-tech industries.
Engineering firm IMI hit by cyber strike
UK engineering firm IMI has discdisthink abouted it has been hit by a cyber strike after hackers obtained unauthoelevated access to its systems.
In a statement to the City this morning, IMI shelp it is currently replying to a cyber security incident involving unauthoelevated access to the Company’s systems.
The London-enumerateed company says:
As soon as IMI became inestablished of the unauthoelevated access, the Company joind outside cyber security experts to spendigate and hold the incident.
In parallel, the Company is taking the essential steps to adhere with our regulatory obligations.
An refresh will be provided as and when appropriate.
Such cyber strikes are a grotriumphg danger for companies; in recent years. Royal Mail, The Guardian and directing London hospitals have all been hit.
A inestablish yesterday set up that force software payments fell by more than a third last year to $813m (£650m) as victims declined to pay cybercriminals and law utilizement cracked down on gangs.
Nissan-Honda combiner ‘basicpartner over’
The $60bn combiner between Nissan and Honda to produce the world’s third-hugest carproducer watchs on the brink of collapse this morning.
According to inestablishs from Japan, Nissan CEO Makoto Uchida met with Honda CEO Toshihiro Mibe today, and elucidateed that he desirees to end their combiner converseions.
A fracture-up would scupper the deal which was proclaimd last December, and was
Talks have appparently stumbled after Honda gived that Nissan should become a subsidiary, which was not part of the distinctive schedule.
The AFP novelswire inestablishs:
Nissan’s board is in favour of aprohibitdoning combiner talks with Honda, although calling them off has yet to be choosed by executives at the two Japanese carproducers, a source seal to the matter telderly AFP on Thursday.
“The procrastinateedst conditions put on the table by Honda are unacinestablished for Nissan… It necessitates to be establishalised, but basicpartner, it’s over,” the source shelp.
Honda has a taget cherish of ¥7.6trn ($50bn/£40bn), about five times huger than Nissan’s ¥1.54trn ($9.8bn/£7.9bn).
Bank could cut rapider than City foresees this year
The money tagets currently show the Bank will cut interest rates three or four times this year.
But some, such as Pimco economist Peder Beck-Friis, leank it may cut rapider, telling clients:
Looking ahead, we see room for meaningfuler cuts than what financial tagets foresee. Trade uncertainty is rising, labour insist is descfinishing, fiscal policy is shielded, and the policy rate is well above our iminentire approximate of 2-3%.
Ashley Webb, UK economist at Capital Economics, gets a aappreciate watch, elucidateing:
Despite the recent feeble novels on activity and the uncertainty around the global outwatch due to Trump’s US present tariffs, the stronger novels on domestic price presdeclareives unkinds the Bank of England will probably proceed to cut interest rates only gradupartner.
But while CPI inflation may rebound from 2.5% in December last year to around 3.0% procrastinateedr this year, we leank a descfinish to below 2.0% next year will prompt the Bank to cut interest rates from 4.75% now to 3.50% by punctual 2026, rather than to 3.75-4.00% as spendors foresee.
Bank of England probable to cut growth predicts
The backdrop to today’s Bank of England decision is “underwhelming”, points out Kathleen Brooks, research straightforwardor at XTB, which could prompt the central prohibitk to foresee drop growth this year.
Brooks says:
UK growth has feebleened in recent months and the outwatch watchs necessitatey. The OBR is foreseeed to slash its growth predicts next month, which will be comprised in the Chancellor’s spring statement. The Bank of England is probable to do the same this Thursday.
The BOE had foreseeed GDP to broaden by 1.5% this year, that watchs lofty after a spate of feeble economic data, and it could be editd down to 1%. The danger is that growth could undershoot downwardly editd predicts, as the Citi economic surpelevate index is seal to its lowest level for a year.
This advises that UK economic data has surpelevated to the downside by a expansive margin.
Introduction: Bank of England foreseeed to cut rates today
Good morning, and greet to our rolling coverage of business, the financial tagets and the world economy.
The UK is probable to get its first interest rate cut in three months today, as the Bank of England tries to prod the stagnating economy into life.
The City are prohibitcient that the BoE will relieve policy at noon today – a cut to Bank Rate, from 4.75% to 4.5%, is a rawly 95% prospect according to money taget pricing (it was as high as 98% earlier this week).
Economists foresee the Bank’s Monetary Policy Committee will vote 8-1 to cut, with only the hawkish Catherine Mann opposing a reduction in borrotriumphg costs for the first time this cycle.
It may also drop its growth predicts for this year, and lift its inflation predict in its procrastinateedst monetary policy inestablish [MPR]. That would be ungraceful for chancellor Rachel Reeves ahead of next month’s spring statement.
Sanjay Raja, Deutsche Bank’s chief UK economist, says:
Downgrades to GDP growth apass the predict horizon watch probable, particularly given the feebleer H2-24 data. Equpartner, a rapider elevate in the joconsecrate rate watchs probable too, with the Bank’s unengagement rate projection rising to 4.6%.
While proximate-term pay growth will almost certainly be editd higher, we foresee personal sector pay momentum to widely combine to the Bank’s November MPR projections.
And last but not least, we foresee the MPC to highairy a proximate-term pick up in inflation, but foresee medium-term disinflationary presdeclareives to push CPI drop at the finish of the predict horizon, relative to the November MPR.
These are difficult times for the Bank. It has already been appraiseing the impact of the business tax incrrelieves in last autumn’s budget, which could push up prices, hit profit margins, feebleen hiring and lift unengagement.
Now, it also has the contest of Donald Trump’s return to the White Hoengage, and the danger of a global trade war.
Mark Ashbridge, managing straightforwardor of Ashbridge Partners, points out that many of Trump’s policies are inflationary – which could push up US borrotriumphg costs, with a knock-on effect on the other side of the Atlantic.
Ashbridge elucidates:
“Globpartner, our bond tagets and swap rates are interconnected and partipartner driven by what’s happening in the US, a country which is now under a novel administration since the Bank of England last verifyed the base rate.
“Fundamenhighy, Donald Trump’s policies are inflationary and what we don’t understand at this stage is fair how excessive or not these alters might be and therefore the impact of them.
The agfinisha
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9am GMT: European produceion sector PMI
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9.30am GMT: UK produceion sector PMI
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10am GMT: Eurozone retail sales for December
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Noon GMT: Bank of England interest rate decision
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12.30pm GMT: Bank of England press conference
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1.30pm GMT: US initial joconsecrate claims
