Business
FTSE 100 at new high as gold rush boosts miners
The FTSE 100 hit new heights on Wednesday, boosted by gains in miners as the price of gold surpassed 4,000 dollars an ounce for the first time.
The FTSE 100 index closed up 65.29 points, or 0.7%, at 9,548.87, a new closing peak. It had earlier set a new intra-day best level of 9,577.08.
The FTSE 250 ended up 39.03 points, 0.2%, at 22,041.83, but the AIM All-Share closed down just 0.30 of a point at 796.07.
Gold traded at 4,044.28 dollars an ounce on Wednesday, up against 3,985.98 dollars on Tuesday, taking year-to-date gains to 54%.
It passed the 3,000 dollars milestone in March, just ahead of US President Donald Trump’s liberation day tariffs that sparked uncertainty and volatility on financial markets.
Gold has previously passed 2,000 dollars during the Covid-19 pandemic and 1,000 dollars during the global financial crisis back in March 2008.
Deutsche Bank’s Henry Allen pointed out that, as it stands, gold remains well on track for its strong annual increase since 1979, when the oil shock that year led to a huge surge in inflation.
Gold is traditionally seen as a safe port in a financial market storm.
But Russ Mould, investment director at AJ Bell noted gold’s strong performance this time around has, unusually, come at a time of strong market performance.
“Traditionally, investors would load up on the shiny stuff when markets look gloomy, not when they’re motoring ahead. It shows that investors are hedging their bets,” he said.
On the FTSE 100, gold miners Endeavour Mining and Fresnillo rose 2.7% and 3.0% respectively.
Another miner in the green was Anglo American which climbed 3.2% as Berenberg upgraded to ‘buy’ from ‘hold’, believing its deal with Teck Resources “will result in Anglo American shares continuing to outperform”.
Lloyds Banking Group climbed 3.7%, after the Financial Conduct Authority said the cost from car finance mis-selling would be at the lower end of its prior expectations.
The UK’s finance regulator said car finance mis-selling will cost providers around GBP8.2 billion, with an additional GBP2.8 billion of administrative costs, taking the total to GBP11 billion.
The UK’s financial regulator had previously estimated that the total cost of compensation could range from £9 billion to £18 billion.
Davy Research said the FCA review should be “well received as it further narrows the potential outcomes to the lower end of its initial range”, although it stressed “uncertainty remains”.
Other car finance providers were mixed. Close Brothers rose 5.4% and S&U PLC firmed 2.4% but Vanquis Banking fell 2.0%.
On the FTSE 250, Unite Group fell 10% after reporting beds sold for the 2025 to 2026 academic year fell to 95.2% from 97.5% the year prior, below its expectations.
Rental growth from the sales to date amounted to 4.0%, down from 8.2% a year ago.
Nonetheless, the company reiterated financial 2025 guidance for adjusted earnings per share of 47.5 pence to 48.25p, compared with 46.6p in 2024.
“We have sold 95% of beds and delivered rental growth of 4.0%. While this is slightly below our target, we saw a strong clearing period which has contributed to our outperformance of the wider (purpose-built student accommodation) sector,” said Joe Lister, Unite Students chief executive officer.
Tim Leckie, analyst at Panmure Liberum, said: “Citing outperformance versus the wider PBSA sector feels like a story we’ve heard before and investors may worry about buying the best house on the worst street.”
In economic news, the Office for National Statistics revised down UK government borrowing figures for the current fiscal year by £2 billion following an error in the tax receipts used to calculate the data.
The ONS said that HM Revenue & Customs had alerted it to inaccuracies in value-added tax receipts, the statistics agency relied on for its estimates for government borrowing published on September 19.
As a result of the errors, which cover the period from January to August this year, the ONS cut its estimate for government borrowing for the current fiscal year, which began in April, by £2 billion. It also reduced the borrowing figure for the previous fiscal year by £1 billion.
Correcting for the errors, the ONS said borrowing for the fiscal year to August was £81.8 billion, down from the £83.8 billion initially reported in its September 19 release.
The total is still above the £72.4 billion forecast for the period by the Office for Budget Responsibility, the UK’s official fiscal watchdog.
The pound was quoted lower at 1.3406 dollars at the time of the London equity market close on Wednesday, compared with 1.3440 dollars on Tuesday. The euro stood at 1.1615 dollars compared with 1.1672 dollars. Against the yen, the dollar was trading at 152.68 yen, higher compared with 151.02 yen.
In European equities on Wednesday, the CAC 40 in Paris leapt 1.2% and the DAX 40 in Frankfurt ended up 1.0%.
Stocks in New York were higher at the time of the London close. The Dow Jones Industrial Average was up 0.3%, the S&P 500 index was 0.5% higher and the Nasdaq Composite advanced 0.7%.
The yield on the US 10-year Treasury was quoted at 4.12%, narrowed from 4.13% on Tuesday. The yield on the US 30-year Treasury stood at 4.71%, trimmed from 4.73%.
Technology stocks climbed once on Wall Street shrugging off fears about AI profitability and concerns of a market bubble.
The Bank of England’s Financial Policy Committee thinks the risk of a “sharp correction” in the financial markets has increased.
The minutes of the FPC’s latest meeting read: “On a number of measures, equity market valuations appear stretched, particularly for technology companies focused on artificial intelligence.”
But Peter Oppenheimer at Goldman Sachs said while there are elements of investor behaviour and market pricing currently that rhyme with previous bubbles, there are key differences this time around.
“First, the appreciation of the technology sector has, so far, been driven by fundamental growth rather irrational speculation about future growth.
“Second, the leading companies that have seen the strongest returns have unusually strong balance sheets.
“Third, the AI space has, so far, been dominated by a few incumbents; most bubbles form in a period of huge competition as both investors and new entrants flock into the space.”
Brent oil traded at 66.40 dollars a barrel on Wednesday, up from 65.28 dollars late on Tuesday.
The biggest risers on the FTSE 100 were Antofagasta, up 113.0 pence at 2,793.0p, Lloyds Banking Group, up 3.08p at 86.38p, Anglo American, up 91.0p at 2,900.0p, Haleon, up 10.5p at 340.8p and Fresnillo, up 68.0p at 2,368.0p.
The biggest fallers on the FTSE 100 were ICG, down 96.0p at 2,176.0p, Segro, down 20.6p at 647.2p, Spirax, down 160.0p at 6,960.0p, Croda, down 49.0p at 2,823.0p and LondonMetric, down 2.5p at 180.6p.
Thursday’s global economic calendar sees German trade data and the Bundesbank’s monthly report.
Thursday’s UK corporate calendar has half year results from specialist finance provider S&U and a trading statement from Upper Crust owner SSP.
Contributed by Alliance News
Business
Budget 2026: CII pitches demand-led disinvestment plan; proposes four-step privatisation roadmap – The Times of India
The Confederation of Indian Industry (CII) suggested a four-fold privatisation process in their recommendations on the Union Budget 2026-27. They called for faster and more predictable disinvestment. The industry body claimed that a calibrated privatisation approach would help sustain capital expenditure and fund development priorities, particularly in sectors where private participation can improve efficiency, technology adoption, and competitiveness. CII Director General Chandrajit Banerjee highlighted the role of private enterprise in India’s growth. “A forward-looking privatisation policy, aligned with the vision of Viksit Bharat, will enable the government to focus on its core functions while empowering the private sector to accelerate industrial transformation and job creation,” he said, as quoted by ANI. To accelerate the government’s exit from non-strategic Public Sector Enterprises (PSEs), CII outlined a four-pronged strategy. First, CII recommended adopting a demand-led approach for selecting PSEs for privatisation. Contrary to short-listing entities and then checking the appetite for them, it was proposed that government needs to start by measuring market interest for a larger list of entities and short-list those with better interest and valuation. Second, the industry body called for announcing a rolling three-year privatisation pipeline in advance. According to CII, greater visibility would give investors time to plan, deepen participation, and improve price discovery. Third, CII proposed setting up a dedicated institutional mechanism to oversee privatisation. This would include a ministerial board for strategic direction, an advisory panel of industry and legal experts, and a professional execution team to handle due diligence, market engagement, and regulatory coordination. Fourth, acknowledging that complete privatisation is complex and time-consuming, CII suggested a calibrated disinvestment route as an interim measure. The government could initially reduce its stake in listed PSEs to 51 per cent, retaining management control, and later bring it down further to between 33 per cent and 26 per cent. CII estimated that lowering government ownership to 51 per cent in 78 listed PSEs could unlock nearly Rs 10 lakh crore. In the first two years, disinvestment in 55 PSEs could raise about Rs 4.6 lakh crore, followed by Rs 5.4 lakh crore from 23 additional enterprises. “A calibrated reduction of government stake balances strategic control with value creation,” Banerjee said, adding that the proceeds could fund healthcare, education, green infrastructure, and fiscal consolidation while maintaining control in strategic sectors. The Union Budget for 2026–27 will be presented on February 1.
Kevin PeacheyCost of living correspondent
Getty ImagesAs the new year got into its stride, so did the UK’s index of leading shares.
The FTSE 100 climbed above 10,000 points for the first time since it was created in 1984, cheering investors – and the chancellor, who wants more of us to move money out of cash savings and into investments.
The index tracks the performance of the 100 largest companies listed on the London Stock Exchange and rose by more than a fifth in 2025.
But with many people still struggling with everyday costs, and with talk of some stocks being overvalued, does the FTSE’s success really make it a good time to encourage first-time investors?
Investing v saving
People can invest their money in many different ways and in different things. Various apps and platforms have made it easy to do.
Crucially, the value of investments can go up and down. Invest £100 and there is no guarantee that the investment is still worth £100 after a month, a year, or 10 years.
But, in general, long-term investments can be lucrative. The rise of the FTSE 100 is evidence of that. Shareholders may also receive dividends, which they could take as income or reinvest.
For years, the advice has been to treat investments as a long-term strategy. Give it time, and your pot of money will grow much bigger than if it was in a savings account.
In contrast, cash savings are much more steady and safe. The amount of interest varies between account providers, but savers know what returns will be. Savings rates have held up quite well over the last year, but interest rates are generally thought to be on the way down.
Savings accounts are popular when putting money aside for emergencies, or for holidays, a wedding or a car – for one predominant reason: you can usually withdraw the money quickly and easily.
“It is important that everyone has savings. It gives you access when you need it,” says Anna Bowes, savings expert at financial advisers The Private Office (TPO).
“It means you do not need to cash out your investments at the wrong time.”
Getty ImagesEvangelists for investing agree that savings are an important part of the mix for everyone managing their money.
“People starting out should have a cash buffer in case of emergency before going into investing,” says Jema Arnold, a voluntary non-executive director at the UK Individual Shareholders Society (ShareSoc).
One in 10 people have no cash savings, and another 21% have less than £1,000 to draw on in an emergency, according to the regulator, the Financial Conduct Authority (FCA).
But Arnold and others point out that cash is not without risk either. As time goes on, the spending power of savings is eroded by the rising cost of living, unless the savings account interest rate beats inflation.
Risk and reward
Our brains make a judgement about risk and reward thousands of times every day. We consider the risk of crossing the road against the reward of getting to the other side and so on.
With money, those who are more risk-averse have tended to stick with savings, while others have moved into investments. It also helps if you have money you can afford to lose.
It is worth remembering that millions of people already have money for their pension invested, although it is often managed for them and they may not pay much attention to it.
The FCA says seven million adults in the UK with £10,000 or more in cash savings could receive better returns through investing.
Chancellor Rachel Reeves has advocated more risk-taking from consumers. For those with the money, she says the benefit of long-term investing for them, and the UK economy as a whole, is clear.
She is altering rules on tax-free Isas (Individual Savings Accounts) in a much-debated move aimed at encouraging investing.
It is also why, in a couple of months’ time, we are all going to be blitzed with an advertising campaign (funded by the investment industry) telling us to give investing some thought.
It will be a modern version of the Tell Sid campaign of the 1980s, which encouraged people to invest in the newly privatised British Gas.
British GasBut is this a good time for such a campaign? Back then, lots of people invested in British Gas for a relatively quick profit.
Invest now, and there is a chance the value of your investment could take a short-term hit.
A host of commentators have suggested an AI tech bubble is about to burst. In other words, they say there is a chance the value of companies heavily into AI has been over-inflated and will plunge – meaning anyone investing in those companies will see the value of those investments plunge too.
It isn’t only commentators. The Bank of England has warned of a “sharp correction” in the value of major tech companies. America’s top banker Jamie Dimon, the chief executive of US bank JP Morgan, said he was worried, and Google boss Sundar Pichai told the BBC there was “irrationality” in the current AI boom.
In truth, nobody really knows if and when this will happen.
New rules on getting investment help
All of this may leave people keen for some help, and the regulator has come up with plans to allow banks to offer some assistance.
Currently financial advice can be expensive, and regulated advisers may not bother with anyone who hasn’t got tens of thousands of pounds to invest.
Financial influencers have tried to fill the gap on social media. Some have been accused of promoting financial schemes and risky trading strategies with glitzy get-rich-quick promises in front of fancy cars – but without authorisation or any explanation of the risks involved.
Some first-time investors have turned to AI for tips. Some are vulnerable to fraudsters offering investment opportunities that are too good to be true.
Nearly one in five people turned to family, friends or social media for help making financial decisions, according to a survey by the FCA.
So, from April, registered banks and other financial firms will be allowed to offer targeted support, preferably for free. It will stop short of individually tailored advice, which can only be provided by an authorised financial adviser for a fee. But it will allow them to make investment and pensions recommendations to customers based on what similar groups of people could do with their money.
It is a big change in money guidance but, as with investments, no guarantees that it will be successful.
Business
Budget 2026: Punjab, Telangana flag higher fiscal burden under VB-G RAM G; seek more central funds – The Times of India
Opposition-ruled states Punjab and Telangana on Saturday sought additional fiscal support from the Centre in the Union Budget 2026-27, arguing that the proposed Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB-G RAM G) will place a heavier financial burden on states due to its revised cost-sharing formula, PTI reported.The demands were raised at the pre-Budget meeting chaired by Union Finance Minister Nirmala Sitharaman, which was attended by finance ministers of states and Union Territories, along with Union Minister of State for Finance Pankaj Chaudhary. The meeting also saw participation from the Governor of Manipur, chief ministers of Delhi, Goa, Haryana, Jammu and Kashmir, Meghalaya and Sikkim, and deputy chief ministers of several states, including Telangana.Opposition-ruled states said the changes to the rural employment framework weaken the employment guarantee and go against the spirit of cooperative federalism.Parliament last month passed the VB-G RAM G Bill, replacing the two-decade-old Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA). Under the new scheme, the Centre will bear 60 per cent of the cost and states 40 per cent, compared with the 90:10 funding pattern under MGNREGA.Punjab Finance Minister Harpal Singh Cheema strongly opposed the proposed changes, saying the new framework dilutes the employment guarantee while shifting a significant financial burden to states.“Proposed MGNREGA changes weaken employment guarantee and burden states,” Cheema said at the meeting, calling for the restoration of the original demand-driven structure and funding pattern of the scheme.Telangana Finance Minister Mallu Bhatti Vikramarka said the Union government had replaced MGNREGA with VB-G RAM G without consulting states. He noted that the shift from a 90:10 to 60:40 funding ratio would further strain state finances.He also pointed out that any additional man-days beyond the normative allocation would now have to be borne by states, which would create a serious obstacle in providing demand-based work to job seekers.“This is entirely against the spirit of cooperative federalism and starving them of funds for capital outlay, which is essential for maintaining growth momentum,” Vikramarka said.The Telangana finance minister also suggested that surcharges on income tax and corporation tax be credited to a non-lapsable infrastructure fund, from which states could receive grants for infrastructure development. Alternatively, he said, surcharges should be merged with basic tax rates to expand the divisible pool of central taxes.On GST reforms, Vikramarka said GST 2.0 may boost demand but questioned its sustainability, warning that states’ revenues could fall due to rate reductions. He called for a suitable mechanism to compensate states for any revenue loss.Punjab also sought a special fiscal package, citing the “double whammy” of border tensions and floods in 2025. On GST, Cheema said Punjab is facing an annual revenue loss of nearly Rs 6,000 crore following GST 2.0 and pressed for a predictable GST stabilisation or compensation mechanism for states.
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