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Stocks climb and pound firms as bond yields ease

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Stocks climb and pound firms as bond yields ease



Stocks in London rallied on Wednesday amid a calmer day on bond markets, supported by figures showing the UK services sector grew at its fastest rate since April 2024.

The FTSE 100 index closed up 61.30 points, or 0.7%, at 9,177.99. The FTSE 250 ended 150.18 points higher, or 0.7%, at 21,313.07, and the AIM All-Share finished up 2.90 points – 0.4% – at 768.47.

In Europe, the Cac 40 in Paris ended up 0.9%, while the Dax 40 in Frankfurt closed 0.5% higher.

The yield on UK 30-year government bonds fell to 5.61% on Wednesday from 5.71% at the time of the London equities close on Tuesday, while the yield on the 10-year bond narrowed to 4.75% from 4.81%.

The moves help ease some of the immediate pressure on Chancellor Rachel Reeves who set the date for her autumn Budget at November 26.

She acknowledged the economy is “not working well enough” and promised a “tight grip” on spending in her Budget, amid speculation about tax rises to plug a hole in the Government’s finances.

Ms Reeves said she had asked the Office for Budget Responsibility to prepare an independent forecast on the late November date to accompany the Budget.

Speaking to the House of Commons Treasury Committee, Bank of England governor Andrew Bailey said: “I do think it’s important not to focus on the 30-year bond rate… it is actually not a number that is being used for funding.”

He said that despite “dramatic commentary” he would not “exaggerate” the cost of government borrowing.

Mr Bailey said his main concern regarding the economy was the downside risks for the labour market.

In addition, he said there is “considerably more doubt” about how quickly and deeply the Bank can cut rates.

The pound rose to 1.3448 dollars late on Wednesday afternoon in London, compared with 1.3389 at the equities close on Tuesday. The euro firmed to 1.1679 dollars, against 1.1659. Against the yen, the dollar was trading lower at 147.95 compared with 148.20.

In better news for the Chancellor, the UK service sector grew in August at the fastest rate since April 2024, as output and new work climbed, a report from S&P Global showed.

The S&P Global UK services purchasing managers’ business activity index rose to 54.2 points in August from 51.8 in July, topping the flash reading of 53.6 released late last month.

“August data highlights a welcome acceleration of output growth and a swift rebound in order books after July’s dip, leaving the UK service economy on a much stronger footing as the end of summer comes into view,” said Tim Moore, economics director at S&P Global Market Intelligence.

Rob Wood, chief UK economist at Pantheon Macroeconomics, said the PMI signals growth close to potential, putting the Monetary Policy Committee in a tricky position, given that inflation is heading to double the 2% target shortly.

“The PMI suggests that rate setters will have to keep policy on hold for the rest of this year at least, as growth running around potential will fail to create the spare capacity needed to bring persistent wage and price inflation down,” he added.

In New York, markets were mixed after Tuesday’s hefty falls. The Dow Jones Industrial Average was down 0.4%, the S&P 500 rose 0.3% and the Nasdaq Composite was 0.8% higher.

Alphabet rose 9.5% and Apple 2.3% after a US antitrust ruling on Tuesday which rejected the US government’s demand that Alphabet sell its Chrome web browser was seen as a big win for the Google parent and the iPhone maker.

The yield on the US 10-year Treasury was quoted at 4.22%, narrowed from 4.28% on Tuesday. The yield on the US 30-year Treasury was quoted at 4.91%, lowered from 4.98%.

Data showed the number of job openings in the US surprisingly fell in July.

The number of job openings amounted to 7.181 million in July, falling from 7.357 million in June and 7.504 million 12 months earlier. The reading fell short of the FactSet-cited consensus of a rise to 7.373 million.

On London’s FTSE 100, Ashtead rose 0.8% as it raised cash flow guidance and stuck with its 4% rental revenue growth view for the current financial year.

The London-based industrial equipment hire company reported a pretax profit of 511.6 million dollars for the first quarter that ended July 31, falling 6.0% from 544.4 million dollars the year before.

Ashtead expects free cash flow between 2.2 billion and 2.5 billion dollars for the current financial year, compared with prior guidance for 2.0 billion to 2.3 billion dollars.

Chief executive Brendan Horgan said results were “solid” with revenues, profits and free cash flow “in line with our expectations as we continue to take advantage of secular tailwinds and the structural progression of our industry”.

On the FTSE 250, Hilton Food plunged 17% after it said a shortage of white fish prompted “significant” raw material inflation and softer UK demand, contributing to a drop in half-year profitability.

The Huntingdon-based food packaging company reported pre-tax profit of £24.3 million for the 26 weeks that ended June 29, falling 4.7% from £25.5 million the year before.

Weaker UK seafood demand has been driven by quota cuts leading to “significant” raw material inflation, the firm said.

Fresnillo and Endeavour Mining rose 8.1% and 3.6% respectively, reflecting the latest gains in the gold price.

JPMorgan thinks the gold price could reach 4,000 dollars per ounce by the second quarter of 2026 and 4,250 dollars by the end of next year.

Gold climbed to 3,565.82 dollars an ounce on Wednesday against 3,511.91 on Tuesday.

A barrel of Brent traded at 67.62 dollars late on Wednesday afternoon, down from 68.81 on Tuesday, after a Reuters report that the Opec+ group will consider a fresh increase to production when it meets over the weekend.

The biggest risers on the FTSE 100 were Fresnillo, up 155.0 pence at 2,074.0p, Endeavour Mining, up 96.0p at 2,760.0p, Babcock International, up 34.0p at 1,066.0p, Antofagasta, up 66.0p at 2,197.0p, and IAG, up 10.2p at 391.0p.

The biggest fallers were Pearson, down 38.5p at 1,047.0p, BT Group, down 3.6p at 206.1p, BP, down 6.8p at 427.3p, Airtel Africa, down 3.4p at 215.2p and Shell, down 36.5p at 2,694.0p.

Contributed by Alliance News



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Jaguar Land Rover staff to stay at home after cyber attack

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Jaguar Land Rover staff to stay at home after cyber attack


Jaguar Land Rover (JLR) has instructed factory staff to stay at home until at least Tuesday as the company continues to grapple with the fallout from a cyber attack.

The attack at the weekend forced the company to take vital IT systems offline, which has affected car sales and production.

Production remains halted at car factories in Halewood on Merseyside and Solihull in the West Midlands, as well as at its engine manufacturing centre in Wolverhampton.

The situation remains under review and output could remain suspended for longer.

Car sales have also been heavily disrupted, although the BBC understands some transactions have been able to take place.

JLR, which is owned by India’s Tata Motors, shut down its systems on Sunday in order to limit potential damage from the cyber attack.

It is now working to restore them in a controlled manner, but this is understood to be a highly complex process. It is also introducing work-arounds for systems that remain offline.

The attack occurred at what is traditionally a popular time for consumers to take delivery of a new vehicle. The latest batch of new registration plates became available on 1 September.

The disruption extends well beyond JLR’s own production lines, with its network of parts suppliers also forced to restrict their operations. Some have complained of a lack of transparency from the company.

Some repair garages have also warned that existing Jaguar or Land Rover owners may face delays if their cars need new parts.

James Wallis of Nyewood Express, an independent garage in West Sussex that repairs and services Land Rovers, told the BBC’s Today programme that he “can’t look up what I need to repair cars”.

“Essentially the parts list is a giant database of items that relates to every single car,” he said. “And if I can’t find the parts, I can’t buy them. I can’t fix the car.”

He added: “If you need parts which come from just one source and you can’t find them, you can’t order them. The job stops. You cannot repair the car. The car sits idle, and the poor old customer has to wait.”

On Wednesday a hacker group which was also responsible for a highly damaging attack on Marks and Spencer earlier in the year said it had infiltrated JLR’s systems.

The group of young English-speaking hackers – who are thought to be teens calling themselves “Scattered Lapsus$ Hunters” – told the BBC how they allegedly accessed the car maker but have not revealed if they successfully stole private data from JLR or installed malicious software onto the company’s network.

The group posted two images, which showed apparent internal instructions for troubleshooting a car charging issue and internal computer logs.

A security expert said those screenshots suggested the group had access to information they should not have.

JLR says it is investigating the hack, but there is no evidence at this stage any customer data has been stolen.

In 2023, as part of an effort to “accelerate digital transformation across its business”, JLR signed a five-year, £800m deal with corporate stablemate Tata Consultancy Services to provide cybersecurity and a range of other IT services.

The halt in production is a fresh blow to the firm which recently revealed a slump in profits attributed to an increase in costs caused by US tariffs.



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Rupee Hits All-Time Low Of 88.36 Against US Dollar; Likely RBI Intervention Caps Losses

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Rupee Hits All-Time Low Of 88.36 Against US Dollar; Likely RBI Intervention Caps Losses


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The rupee fell to 88.36 against the U.S. dollar, eclipsing its previous all-time low of 88.33 hit on September 1

Rupee depreciates against dollar.

Rupee depreciates against dollar.

The Indian rupee slipped to a record low on Friday as traders remained jittery over news related to U.S. tariffs on India, while likely dollar-selling intervention by the Reserve Bank of India curbed sharper losses, traders said.

The rupee fell to 88.36 against the U.S. dollar, eclipsing its previous all-time low of 88.33 hit on September 1. The currency was last at 88.2750, down 0.1% on the day.

Traders cited strong buying from foreign banks amid speculation about ongoing tariff pressures on India from the U.S.

The “spike on USD/INR was caused by worries of higher tariffs on India but state-run banks stepped in over 88.30 to cap losses, most likely on behalf of the Reserve Bank of India,” a senior trader at a bank said.

Merchant flows are relatively muted today so activity is skewed towards the dollar buying side, the trader added.

MUFG said the rupee could weaken to 89 by the first quarter of calendar year 2026 under the assumption that the steep tariffs remain for now but are eventually lowered to 25% sometime next year.

Foreign portfolio investors have continued to withdraw from Indian equities with net sales of $1.4 billion so far in September, taking the total outflow so far this year to over $16 billion.

(This story has not been edited by News18 staff and is published from a syndicated news agency feed – Reuters)

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Aparna Deb

Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a…Read More

Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a… Read More

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Retail sales boosted by sunny weather and football in July

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Retail sales boosted by sunny weather and football in July


Sunny weather and the women’s Euro football tournament helped to lift retail sales in July, according to the latest official figures.

Retail sales volumes rose by 0.6% in July, according to the Office for National Statistics (ONS), which was higher than analysts’ forecasts.

The release of the figures had been delayed by two weeks over concerns about the quality of the data.

The ONS has come under fire recently over the reliability of some of its statistics.

While sales volumes in July rose, sales in the three months to July were down 0.6% when compared with the previous three months.

“Supermarkets, sports shops and household goods stores had a strong start to the year, but spending there has fallen since March,” said the ONS’s director general of economic statistics, James Benford.

However, he added this was partially offset by strong sales online and at clothing and footwear stores.

Mr Benford apologised for errors in past data, and said the ONS had “improvement plans” in place.

The ONS had delayed the latest retail sales figures after it discovered a problem with its data, which meant that seasonal adjustments had not been made properly.

The latest release from the ONS revises most of the retail sales data for the past year.

“The new figures published today show a similar overall pattern of three-month on three-month growth, but with less volatile month-on-month changes,” Mr Benford said.

ONS statistics are used in deciding government policy which affects millions, and are used by the Bank of England to make key financial decisions.

The ONS said online retailers and clothing stores saw strong sales growth in July, which retailers put down to new products, the hot weather, and an increase resulting from the UEFA Women’s Euro 2025 tournament.

However, Paul Dales from Capital Economics warned that both these factors were boosts that “won’t be repeated”.

Dr Kris Hamer from the British Retail Consortium said July was a “good month for retail sales, as the warm, sunny weather and packed sporting schedule in the first half of the month got people spending”.

“Unfortunately, this level of sales growth makes little dent on the £7bn of new costs that retailers are having to shoulder following last year’s Budget.”



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