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- FTSE 100 up 67 points, sets new record at 8,625
- Shell unveils buyback as profit drops
- BT tumbles as profit climbs but revenue knocked
3.07pm: Wall Street gains as GDP growth undershoots
Wall Street saw a positive start on Thursday after figures showed gross domestic product growth slowed in the fourth quarter to miss expectations.
The Nasdaq and S&P 500 both climbed by 0.6%, as the Dow Jones ticked up 0.3%.
Figures earlier on had shown the US economy grew by 2.3% over the final three months of last year, against 3.1% previously and below estimates for 2.6%.
“Although GDP growth slowed […] the growth rate of final sales to private domestic purchasers dropped off only marginally, from 3.4% to 3.2%,” Capital Economics analysts flagged.
“The latter is a better gauge of underlying strength and suggests the economy remains strong, particularly given the fourth-quarter disruptions like the Boeing strike and hurricanes.”
Among companies, International Business Machines surged by 13% as trading got underway on expectation-beating figures overnight, which showed its artificial intelligence business surging.
Microsoft Corp shed 4.7% in the meantime, after detailing underwhelming guidance in its expectation-topping results.
2.41pm: Shell, Equinor see Rosebank, Jackdaw consent blocked
Consent to exploit the UK’s largest untapped oil reserve, Rosebank, and smaller Jackdaw project has been revoked by a Scottish court.
Having been granted under the previous government, a Court of Session hearing saw Equinor and Ithaca Energy’s licenses to exploit the Rosebank field overturned.
Shell was also told production at its Jackdaw field would not be allowed unless a new licence was granted.
“The public interest in authorities acting lawfully and the private interest of members of the public in climate change outweigh the private interest of the developers,” Lord Ericht ruled.
Some £3 billion has already been spent on the projects overall, with the trio allowed to continue development but barred from extracting oil and gas while the North Sea Transition Authority makes a decision on future licences.
Downstream emissions from the oil and gas would have to be considered this time around, after permission was originally granted for Jackdaw in 2023 and Rosebank the year prior.
1.42pm: US GDP growth slows; ECB cuts interest
The US economy grew at a slower rate over the fourth quarter to miss market estimates, figures showed on Thursday.
According to the Bureau of Economic Analysis, gross domestic product expanded by 2.3% over the final three months of 2024.
This marked a slowdown against the 3.1% seen over the third quarter, while analysts had expected growth of 2.3%.
Futures continued to a mixed start on Wall Street, with both the S&P 500 and Nasdaq seen higher but Dow Jones lower.
Elsewhere, the European Central Bank has opted to cut its key interest rate by 0.25% to 2.75% on the back of figures showing the eurozone economy flatlined late last year.
“The [cut] falls into the ‘nothing to see here, move along’ category,” Deutsche Bank analysts noted.
“The economic recovery is still facing headwinds. Disinflation remains on track. Interest rates are restrictive.
“This is the fifth cut in total and the fourth in quick succession. There is really no reason to think the ECB won’t continue to cut rates, at least to a neutral level, and we think quite probably below neutral by year-end.”
Back in London, the FTSE 100 remained in record-breaking territory, up 55 points at 8,613.
12.57pm: Nasdaq, S&P seen higher as economic data looms
Wall Street appeared set for a mixed start as traders awaited gross domestic product figures for the fourth quarter.
Futures had the Nasdaq and S&P 500 up by 0.4% and 0.2% respectively, while the Dow Jones was seen dipping 0.1%.
Stocks had dropped on Wednesday as the Federal Reserve opted to hold interest rates, with the S&P 500 and Nasdaq both slipping 0.5%.
Thursday’s figures were set to offer the first insight since the decision, which saw a hawkish tone on inflation later dialled back on by chair Jerome Powell.
“Powell indicated policy is well-positioned for dual goals and noted progress towards a ‘meaningfully less restrictive’ stance,” Tickmill Group partner Patrick Munnelly highlighted.
“He clarified that the change in statement language was not a signal,” though, “overall, the hawkish read on inflation was walked back in the press conference”.
“President Donald Trump’s policies continue to pose a risk to the Fed’s policy perspective, and new tariffs are expected to be imposed on Canada, Mexico, and potentially China on Saturday.”
11.57am: FTSE 100 notches record high
London’s blue chips have set a new record intraday high, climbing 32 points come late morning to hit 8,590.
Having only surpassed the 8,500 mark earlier this month, the latest surge follows a record-breaking run in recent weeks.
Airtel Africa PLC remained ahead of the blue-chip risers, as just a handful of the FTSE 100’s constituents dipped into the red.
Gains were also enjoyed by mid-caps, with the FTSE 250 jumping 174 points to 20,734, and small-caps as the AIM all-share rose 5 points to 717.
St James’s Place PLC was another of the day’s risers following results, while Wizz Air Holdings PLC remained under pressure on the back of a profit warning.
Mossman Oil & Gas Ltd topped the junior market in the meantime, rising 38% after highlighting advancements of its American helium venture… Read more
Kromek Group PLC followed with a 27% jump on a deal with Siemens which was set to pave the way to profitability… Read more
10.58am: European economy flatlines
The eurozone economy flatlined over the final three months of last year, missing expectations for growth, figures showed on Friday.
According to the European Commission, gross domestic product grew by 0% in the fourth quarter, against 0.4% in the previous three months and below the 0.3% expected.
On an annual basis, GDP growth remained unchanged at 0.9% and missed market forecasts for a 1.2% uptick.
“Declining activity in Germany – the Eurozone’s largest economy – has weighed on the bloc’s growth,” Centre for Economics and Business Research economist Charlie Cornes said.
“In 2025, further loosening of monetary conditions is expected to provide a modest uptick in activity for both Germany and the Eurozone, with growth expected to amount to 0.3% and 1.0% respectively.”
The European Central Bank is set to make its latest decision on interest rates later on Thursday, with markets forecasting a reduction.
Back in London, the FTSE 100 was just off its record intraday high, up 27 points at 8,585.
10.11am: Royal Mail allowed to cut down on second-class deliveries
Ofcom has said Royal Mail will be allowed to scale back second-class letter deliveries under a regulatory shake-up.
Ofcom on Thursday proposed cutting delivery of such post to alternate weekdays and removing Saturday rounds.
Some £250 million to £425 million could be saved a year through the changes, Ofcom said.
Royal Mail would still be required to deliver first-class mail six days a week and keep a cap on second-class stamps.
“The world has changed,” Ofcom communications director Natalie Black said, “we’re sending a third of the letters we were 20 years ago”.
She added: “We need to reform the postal service to protect its future and ensure it delivers for the whole of the UK.”
Royal Mail, owned by International Distribution Services PLC, is on the brink of a £3.6 billion takeover by Czech billionaire Daniel Kretinsky’s EP Group.
9.56am: FTSE 100 near record as European stocks brush another high
The FTSE 100 had a new intraday record in its sights once again on Thursday, climbing 14 points to 8,572 to sit just off the previous all-time high of 8,586 seen earlier this month.
London’s blue chips have edged towards the record throughout the week and sat just two points off on Wednesday afternoon.
Airtel Africa PLC continued to head Thursday’s risers with a 10.5% gain after unveiling solid third-quarter figures earlier on.
Revenue had climbed by 21.3% on a constant currency basis, while post-tax profit, aided by an exceptional gain on currency appreciation, sat at US$248 million.
St James’s Place PLC followed among the risers, up 8.3%, while BT Group PLC headed the fallers on a 3.0% decline.
Elsewhere, European stocks continued a record-breaking run for the week on Thursday, with the Europe Stoxx 600 climbing as high as 537.
9.39am: Mulberry flags shift away from China under reshuffle
Mulberry Group PLC has said it will reduce focus on China and rebranding product offerings under a major strategic shift.
Alongside appointing former Milk & More’s Billie O’Connor as chief financial officer, the fashion group laid out plans to simplify its operations and refresh offerings.
Mulberry would refocus on the UK and aim to buoy growth in the US as emphasis was reduced on China, it said in a statement.
Rebranding to “celebrate British lifestyle” would also be carried out, alongside efforts to strengthen direct-to-consumer operations.
Targets for mid-term annual revenue of above £200 million and a 15% adjusted earnings margin were laid out.
“We need to get back to where we came from and return to the spirit of Mulberry,” chief executive Andrea Baldo commented, adding the business needed to be “simplified”.
Mulberry also laid out figures for the 13 weeks to December 28 showing an 18.3% drop in revenue as sales in the likes of the UK and the Asia Pacific region tumbled.
Shares climbed 2.6% to 100p.
9.11am: Wizz Air tanks after profit warning
Wizz Air Holdings PLC has warned on profit due to surging costs, sending shares down more than 12% on Thursday.
Income was set to sit between €250 million (£209 million) and €300 million, against the €350 million to €450 million previously expected, Wizz said on Thursday.
Despite stronger demand over the third quarter, the airline flagged cost pressures around groundings related to suspected Pratt & Whitney engine issues on its A321neo fleet.
Revenue had increased by 10.5% to €1.18 billion, aiding a 57.9% reduction in operating losses to €75.9 million.
However, cost per available seat kilometre ticked up 16.8% to €2.88 as groundings led to inefficiencies, while a €160 million negative foreign exchange charge was recognised.
“Disappointingly, the benefits of the stronger demand environment did not flow through to our reported profit level due to these cost headwinds,” chief executive József Váradi said.
Shares fell 12.1% to 1,205.60p.
8.53am: Fevertree jumps on US partnership with Molson Coors
Fevertree Drinks PLC skyrocketed after unveiling a long-term partnership with Molson Coors in the US on Thursday.
Molson Coors would buy an 8.5% stake in Fevertree for £71 million and take on exclusive sales, distribution and production of the carbonated mixer brand in the US.
Fevertree would in turn launch a buyback using the proceeds, a statement said, adding further shareholder returns could be considered.
“With a national network providing significant scale and muscle, alongside its proven track record, supply chain expertise and clearly stated strategic desire to drive the future of their business beyond beer, Molson Coors are the ideal long-term partner to take the Fever-Tree brand to the next level across the US,” Fevertree head Tim Warrillow said.
“This partnership will be fuelled by a step change in marketing investment to take advantage of the highly compelling opportunity ahead.”
Fevertree jumped 15.1% to 757p on Thursday.
8.31am: St James’s Place reports record assets under management
St James’s Place PLC surged over 7% after revealing its assets under management hit a record last year on Thursday.
Net inflows sat at £4.33 billion in 2024, the firm said on Thursday, after the fourth quarter brought £1.5 billion.
Though this was lower than the previous year, assets under management hit a new high of £190.21 billion, driven by its pension division, as inflows were recorded across the board.
“Our investment management approach has continued to work well for our clients, with our portfolios delivering strong returns that compare favourably against peer groups,” chief executive Mark FitzPatrick said.
“This, together with another year of net inflows, drove our funds under management.”
Shares jumped 7.2% to 996p.
8.13am: FTSE 100 struggles for direction early on
The FTSE 100 opened little changed on Thursday, dropping one point to 8,556.
St James’s Place headed the early risers, surging 6.6% after unveiled net inflows of £4.3 billion in 2024 to bring assets under management to a record £190.2 billion.
Airtel Africa PLC followed with a 5.1% gain after the telecommunications firm unveiled an 11-fold increase in third-quarter net profit, driven by exceptional gains.
BT Group PLC headed the fallers in the meantime, down 4.1% on news of stronger profit but weaker revenue in the third quarter.
Shell PLC, which also reported, gained 0.5%.
8.01am: Shell hikes shareholder rewards despite lower profit
Shell PLC has hiked shareholder rewards despite unveiling weaker profit for the fourth quarter on the likes of lower oil prices and squeezed margins.
A US$3.5 billion (£2.8 billion) buyback was unveiled in results on Thursday, alongside a 4% increase in dividends to US$0.3580 per share.
Adjusted earnings slumped just under 50% year on year and by 39% against the third-quarter to US$3.7 billion.
Shell cited higher exploration well write-offs, lower oil prices, squeezed margins and unfavourable tax movements.
Cash flow from operating activities of US$13.2 billion was down 10% but 5% higher than a year earlier as working capital inflows partly offset tax and timing of emission certificate payments.
Shell added capital expenditure over the coming year was expected to be lower than 2024’s US$21 billion.
7.39am: BT profit grows despite falling revenue
BT Group PLC’s profit grew in the third-quarter thanks to cost control as revenue declined.
Reported pre-tax profit climbed 1% to £427 million in the three months to December, as adjusted earnings grew 4% to £2.1 billion, BT reported on Thursday.
Revenue slipped 3% to £5.2 billion in the meantime, as record fibre rollout and price increases were offset by challenging conditions outside of the UK.
BT noted fibre to the premises build rate had surpassed one million homes for a fourth consecutive quarter, leaving 17 million homes and over half of the UK connected.
Openreach revenue nudged up 1% to £1.5 billion, as consumer and business sales both declined.
Efforts to cut costs remained on track, with BT citing lower energy usage, labour costs and a reduction in Openreach repair volumes.
“Our ongoing modernisation continues at pace,” chief executive Allison Kirby said, “benefits from our cost transformation more than offset lower revenue outside the UK and weak handset sales”.
“We continue to make progress towards becoming fully focused on the UK, with the sale of our data centre business in Ireland.
“BT’s continued delivery means we remain on track to deliver our financial outlook for this year and our cash flow inflection to [around] £2.0 billion in 2027 and £3.0 billion by the end of the decade.”
BT also announced Jon James, formerly of Danish telecoms provider Nuuday, would be appointed chief executive of its business division.
7.12am: FTSE 100 seen higher
Futures had the FTSE 100 ticking up once again on Thursday, by 11 points to 8,541.
London’s blue chips had just missed out on an intraday record in Wednesday’s session, having sat two points off before scaling back for a 23-point gain.
US stocks had dropped in the meantime, as the Federal Reserve opted to hold interest rates.
Asian markets then saw a mixed showing overnight, with China’s Shenzhen index the biggest faller, having shed 1.3%.
5.00am: Thursday’s schedule
BT, Shell, Sage and St James’s Place all feature on a packed Thursday, before the likes of Apple and GDP figures from across the Atlantic.
BT faced damming commentary from UBS ahead of its update… Read more
Hot on the heels of underwhelming production figures, Shell’s finals will be all about cash flow… Read more
Apple has faced pressure around muted iPhone demand prior to its report… Read more
Announcements due:
Trading updates: 3i Infrastructure PLC, BT Group PLC, Sage Group PLC, St James’s Place PLC, Glencore PLC
Interims: Airtel Africa PLC, ITM Power PLC, Rank Group PLC, Wizz Air Holdings PLC
Finals: Shell PLC, Velocity Composites PLC, Patria Private Equity Trust PLC
US earnings: Blackstone, Caterpillar Inc, Mastercard Inc, Takeda Pharmaceutical, Thermo Fisher Scientific, Apple Inc, Intel Corp, Visa Inc
AGMs: Auction Technology Group PLC, Hollywood Bowl Group PLC, Greencore Group PLC, Loungers PLC
Economic announcements: Car Production (UK), BoE Consumer Credit (UK), Mortgage Approvals (UK), GDP (EU), Unemployment (EU), GDP (US)
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