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London open: Stocks fall as UK growth slows
London stocks fell in early trade on Friday as data showed that economic growth in the UK unexpectedly slowed in the third quarter.
At 0820 GMT, the FTSE 100 was down 0.4% at 8,038.45.
Figures released earlier by the Office for National Statistics showed the economy grew by 0.1% in the last quarter, slightly below expectations.
The ONS said growth in the three months to September had been led by strength in the retail trade, excluding motor vehicles, and new construction work.
Output in the construction sector jumped 0.8%.
The 0.1% uptick was, however, below second-quarter growth of 0.2%. It also missed analyst expectations for a 0.2% improvement.
In September, GDP fell 0.1%. The ONS said a “notable” increase in car sales had been offset by a “slow month for IT companies”. Also weighing on growth was the manufacturing sector, with production output down 0.5% .
The services sector, one of the main drivers of economic growth in the UK, was flat.
Liz McKeown, director of economic statistics at the ONS, said: “The economy grew a little in the latest quarter overall, as the recent slowdown in growth continued.
“Retail and new construction work both performed well, partially offset by falls in telecommunications and wholesale. Generally, growth was subdued across most industries in the latest quarter.”
Kathleen Brooks, research director at XTB, said: “The risk for the UK economy is that the Q3 data does not take account of the UK Budget, and the hike to employers’ national insurance, which won’t take effect until next year. The Budget has been criticized for being anti-business, which could threaten the Labour government’s professed desire to boost growth.
“Added to this, Trump hasn’t taken office in the US yet, and we don’t know what his tariff plan will look like, or how his relationship with the UK will evolve. Thus, there are still plenty of headwinds that could hold back UK GDP in future.
“In the short term, Rachel Reeves and co. should focus on boosting GDP per capita, as right now, the population continues to grow, immigration surged in 2023, yet that is not having an impact on our GDP, which is deeply concerning.”
In equity markets, Land Securities gained after saying it returned to profit in the six months to 30 September as the property market continued to recover, underpinned by growing demand.
InterContinental Hotels was also in the black, boosted by an upgrade to ‘overweight’ at Barclays.
Premier Inn owner Whitbread fell, however, after a downgrade to ‘equalweight’ by the same outfit.
Outside the FTSE 350, TT Electronics surged on news it had rejected two takeover offers from Volex.
Top 10 FTSE 100 Risers
| Sponsored by Plus500 |
|
| # | Name | Change Pct | Change | Cur Price | |
|---|---|---|---|---|---|
| 1 |  |
Banco Santander S.a. | +2.42% | +9.00 | 380.50 |
| 2 |  |
Sainsbury (j) Plc | +1.42% | +3.40 | 243.00 |
| 3 |  |
Aviva Plc | +1.18% | +5.60 | 481.00 |
| 4 |  |
Hsbc Holdings Plc | +1.10% | +7.80 | 714.00 |
| 5 |  |
British American Tobacco Plc | +1.07% | +30.00 | 2,833.00 |
| 6 |  |
Haleon Plc | +0.97% | +3.50 | 365.50 |
| 7 |  |
Sse Plc | +0.94% | +16.00 | 1,726.00 |
| 8 |  |
Imperial Brands Plc | +0.85% | +20.00 | 2,372.00 |
| 9 |  |
Shell Plc | +0.85% | +21.50 | 2,553.00 |
| 10 |  |
Anglo American Plc | +0.82% | +18.50 | 2,262.50 |
Top 10 FTSE 100 Fallers
| Sponsored by Plus500 |
|
| # | Name | Change Pct | Change | Cur Price | |
|---|---|---|---|---|---|
| 1 |  |
Astrazeneca Plc | -2.76% | -284.00 | 10,008.00 |
| 2 |  |
Gsk Plc | -2.18% | -29.50 | 1,324.00 |
| 3 |  |
Aib Group Plc | -1.87% | -8.50 | 445.50 |
| 4 |  |
Carnival Plc | -1.65% | -29.00 | 1,725.00 |
| 5 |  |
Melrose Industries Plc | -1.61% | -8.10 | 494.50 |
| 6 |  |
Rolls-royce Holdings Plc | -1.50% | -8.20 | 537.00 |
| 7 |  |
Bae Systems Plc | -1.18% | -15.50 | 1,299.50 |
| 8 |  |
Smurfit Westrock Plc | -1.16% | -46.00 | 3,908.00 |
| 9 |  |
Scottish Mortgage Investment Trust Plc | -1.13% | -10.60 | 931.40 |
| 10 |  |
Wise Plc | -1.01% | -8.50 | 832.50 |
Friday newspaper round-up: London Capital & Finance, airlines, Resolute Mining
Investment firm London Capital & Finance (LCF), whose failure in 2019 triggered one of Britain’s biggest retail investment scandals, operated as a Ponzi scheme, a London judge ruled on Thursday. The high court said former chief executive Michael Thomson and four others had knowingly participated in the fraud, misled investors and misappropriated assets in a ruling welcomed by LCF’s joint administrators, which brought the case. – Guardian
The UK government has promised to introduce tougher enforcement action against airlines that fail to protect customers from losses caused by flight disruption after an inquiry into last August’s air traffic meltdown, which led to more than 700,000 people facing delays and cancellations. The transport secretary, Louise Haigh, said she wanted “all passengers to feel confident when they fly” and would introduce changes to “provide air travellers with the highest level of protection possible”. – Guardian
Britain must rebuild trade ties with Europe to help stem the economy’s long-term decline, the Bank of England Governor has told Rachel Reeves. In a major intervention in the wake of Donald Trump’s US election victory, Andrew Bailey urged the Chancellor to “welcome opportunities to rebuild” post-Brexit relations with the Continent as Ms Reeves orders regulators to focus on growth as part of plans to fire up the City. – Telegraph
A London-listed goldminer whose boss has been detained in Mali over a dispute with the government has been thrown into further turmoil after trading in its Sydney-quoted shares was suspended. Resolute Mining’s Australian stock has temporarily stopped trading after “various articles published relating to the status of negotiations with the government in Mali”, the company said in a statement. – The Times
A former BDO manager has been banned from the profession for 20 years after she was found to have forged signatures, falsified emails and fabricated letters. An investigation by the Financial Reporting Council (FRC), the audit watchdog, found that Amanda Nightingale, née Cleaver, a senior manager in BDO’s Gatwick office, acted with “sustained dishonesty” over a five-year period. – The Times
