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FTSE 100 closes lower as geopolitical issues worry investors

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FTSE 100 closes lower as geopolitical issues worry investors



The FTSE 100 gave back early gains to close lower on Wednesday as weak retailers and increased geopolitical concerns limited progress.

The index closed down 17.14 points, 0.2%, at 9,225.39. The FTSE 250 ended 62.61 points lower, 0.3%, at 21,534.10 and the AIM All-Share finished down 6.29 points, 0.8%, at 762.01.

In Europe, the Cac 40 in Paris ended up 0.2%, while the Dax 40 in Frankfurt closed 0.4% lower.

Investors were unsettled by events in the Middle East following Israel’s missile strike on Qatar. Also, Nato fighter jets shot down Russian drones over Polish airspace for the first time.

Poland’s foreign minister Radoslaw Sikorski said on Wednesday that the overnight intrusion of several Russian drones into the Nato member’s airspace was “not an accidental event”.

“We are dealing with an unprecedented case of an attack not only on Poland’s territory but also on the territory of Nato and the EU,” Mr Sikorski told reporters.

In London, airlines came under pressure over fears that flights will be disrupted. British Airways owner IAG fell 4.1% while low-cost airlines easyJet and Wizz Air dropped 2.2% and 1.8% respectively.

In New York, at the time of the London equities market close, the Dow Jones Industrial Average was down 0.6%, the S&P 500 rose 0.4%, as did the Nasdaq Composite.

Across the pond, Oracle leapt 42%. After Tuesday’s US market close, the Texas-based cloud technologies-focused company astounded analysts as it reported a significant increase in bookings and gave an extremely bullish outlook for its cloud infrastructure business.

Chief Executive Safra Catz told investors that Oracle has made an “amazing start” to the financial year, signing significant cloud contracts with the “who’s who of AI”, including Meta, AMD and Nvidia.

Catz expects Oracle Cloud Infrastructure revenue to grow 77% to 18 billion dollars this financial year.

Ahead of Thursday’s consumer inflation figures, data showed US producer prices rose 2.6% year-on-year in August, easing from a 3.1% advance for July, and below 3.3% FXStreet consensus.

Month-on-month, prices fell 0.1% in August, after a 0.7% rise in July from June. It was the first monthly decline since April. The monthly figure undershot expectations of a 0.3% rise.

Excluding foods, energy and trade, producer prices rose 2.8% on-year in August, picking up speed from 2.7% in July. They rose 0.3% in August, easing from 0.6% in July from June.

The pound edged up to 1.3548 dollars late on Wednesday afternoon in London, compared to 1.3545 at the equities close on Tuesday. The euro nudged down to 1.1722 dollars, against 1.1724.

The yield on the US 10-year Treasury was quoted at 4.06%, trimmed from 4.08% on Tuesday. The yield on the US 30-year Treasury was quoted at 4.71%, narrowed from 4.73%.

On the FTSE 100, retailers were a weak feature, not helped by softer-than-hoped-for sales at fast fashion business Primark, owned by Associated British Foods.

Shares in AB Foods tumbled 13% as analysts bemoaned “vague” guidance, soft sales at Primark and a less-than-sweet performance at its Sugar business.

AB Foods said sales growth at Primark, which generates around 47% of group revenue, is expected to be around 1% in the second half of the financial year to September 13 compared to the prior year, and below Visible Alpha consensus of 3.4%.

In addition, the firm said it expects the consumer environment to remain “uncertain”.

AJ Bell analyst Russ Mould said the idea that value retailers will automatically thrive in a period where consumers are watching their pennies “no longer stacks up”.

“Cheap prices do not mean goods will fly off the shelf, just as Primark has found out,” he said.

Marks & Spencer fell 3.0%, and Next eased 1.8%. Kingfisher dropped 1.7%, as did JD Sports Fashion.

Anglo American gained a further 1.7% as its tie-up with Teck Resources continued to be well received while Haleon, up 1.1%, benefited from an upgrade by Goldman Sachs to ‘buy’.

Elsewhere, Vistry fell 4.5% as it reported a drop in profit and revenue.

The Kent-based housebuilder reported pretax profit of £40.9 million for the six months that ended June 30, down 55% from £91.2 million a year earlier. Revenue fell 5.1% to £1.64 billion from £1.72 billion.

Vistry noted lower levels of demand from its affordable housing partners, which it said reflected uncertainty ahead of the June spending review, coupled with transitional funding constraints as part of the move towards a new social & affordable housing programme.

Serica Energy slid 14% as it said further maintenance is required at the Triton Floating Production Storage & Offloading unit, resulting in a temporary reduction in production.

The North Sea-focused oil and gas producer suspended production at the FPSO back in January, following issues resulting from Storm Eowyn.

In August, Serica Energy said production had resumed with activity ramping up in line with its expectations.

In addition, Dana Petroleum, which operates the Triton FPSO, has told the company that subsea intervention work on the Bittern field has been scheduled for November.

The resultant production deferrals mean that Serica’s production guidance for 2025 has been reduced to 29,000 to 32,000 barrels of oil equivalent per day from 33,000 to 35,000 boepd previously.

A barrel of Brent traded at 67.31 dollars on Wednesday afternoon, up from 66.31 on Tuesday. Gold firmed to 3,646.88 dollars an ounce on against 3,640.80 on Tuesday.

The biggest risers on the FTSE 100 were Prudential, up 33.4p at 1,027.0p, Polar Capital Technology Trust PLC, up 9.5p at 414.0p, BAE Systems, up 39.0p at 1,832.0p, HSBC, up 17.8p at 996.8p and Fresnillo, up 38.0p at 2,174.0p.

The biggest fallers on the FTSE 100 were Associated British Foods, down 295.5p at 1,945.5p, Relx, down 146.0p at 3,337.00p, IAG, down 16.2p at 381.7p, Auto Trader, down 25.2p at 788.2p and Marks & Spencer, down 10.6p at 342.1p.

Contributed by Alliance News



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OpenAI shares data on ChatGPT users with suicidal thoughts, psychosis

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OpenAI shares data on ChatGPT users with suicidal thoughts, psychosis


OpenAI has released new estimates of the number of ChatGPT users who exhibit possible signs of mental health emergencies, including mania, psychosis or suicidal thoughts.

The company said that around .07% of ChatGPT users active in a given week exhibited such signs, adding that its artificial intelligence (AI) chatbot recognizes and responds to these sensitive conversations.

While OpenAI maintains these cases are “extremely rare,” critics said even a small percentage may amount to hundreds of thousands of people, as ChatGPT recently reached 800 million weekly active users, per boss Sam Altman.

As scrutiny mounts, the company said it built a network of experts around the world to advise it.

Those experts include more than 170 psychiatrists, psychologists, and primary care physicians who have practiced in 60 countries, the company said.

They have devised a series of responses in ChatGPT to encourage users to seek help in the real world, according to OpenAI.

But the glimpse at the company’s data raised eyebrows among some mental health professionals.

“Even though .07% sounds like a small percentage, at a population level with hundreds of millions of users, that actually can be quite a few people,” said Dr. Jason Nagata, a professor who studies technology use among young adults at the University of California, San Francisco.

“AI can broaden access to mental health support, and in some ways support mental health, but we have to be aware of the limitations,” Dr. Nagata added.

The company also estimates .15% of ChatGPT users have conversations that include “explicit indicators of potential suicidal planning or intent.”

OpenAI said recent updates to its chatbot are designed to “respond safely and empathetically to potential signs of delusion or mania” and note “indirect signals of potential self-harm or suicide risk.”

ChatGPT has also been trained to reroute sensitive conversations “originating from other models to safer models” by opening in a new window.

In response to questions by the BBC on criticism about the numbers of people potentially affected, OpenAI said that this small percentage of users amounts to a meaningful amount of people and noted they are taking changes seriously.

The changes come as OpenAI faces mounting legal scrutiny over the way ChatGPT interacts with users.

In one of the most high-profile lawsuits recently filed against OpenAI, a California couple sued the company over the death of their teenage son alleging that ChatGPT encouraged him to take his own life in April.

The lawsuit was filed by the parents of 16-year-old Adam Raine and was the first legal action accusing OpenAI of wrongful death.

In a separate case, the suspect in a murder-suicide that took place in August in Greenwich, Connecticut posted hours of his conversations with ChatGPT, which appear to have fuelled the alleged perpetrator’s delusions.

More users struggle with AI psychosis as “chatbots create the illusion of reality,” said Professor Robin Feldman, Director of the AI Law & Innovation Institute at the University of California Law. “It is a powerful illusion.”

She said OpenAI deserved credit for “sharing statistics and for efforts to improve the problem” but added: “the company can put all kinds of warnings on the screen but a person who is mentally at risk may not be able to heed those warnings.”



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UK airline Eastern Airways suspends operations with all flights cancelled

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UK airline Eastern Airways suspends operations with all flights cancelled



UK domestic airline Eastern Airways has suspended operations and all of its flights have been cancelled.

Customers of the airline, which operated regional services from airports across the UK, are being urged not to go to the airport as flights will not be operating, the UK Civil Aviation Authority said.

Destinations the airline flew to included Aberdeen, Humberside, London Gatwick, Newquay, Teesside International and Wick, according to its website.

Eastern Airways customers are being urged to make their own alternative travel arrangements via other airlines, rail or coach operators.

On Monday morning Eastern Airways (UK) Ltd filed a notice of intention to appoint an administrator at the Insolvency and Companies Court, which is within the High Court.

Selina Chadha, consumer and markets director at the UK Civil Aviation Authority, said: “We urge passengers planning to fly with this airline not to go to the airport as all Eastern Airways flights are cancelled.

“Eastern Airways customers should visit the Civil Aviation Authority’s website for the latest information.”

Following the suspension of Eastern Airways operations, London and North Eastern Railway, ScotRail, TransPennine Express, and Northern will offer free standard class travel to Eastern Airways staff and customers on October 28 and 29, on suitable routes operated by each train company, the UK Civil Aviation Authority said.

To access this support, present either an Eastern Airways employee ID, boarding pass, or flight confirmation to station staff.



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EU sanctions on Russia: New opportunities for Indian businesses; bilateral trade up, says IBA – The Times of India

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EU sanctions on Russia: New opportunities for Indian businesses; bilateral trade up, says IBA – The Times of India


The European Union’s latest package of sanctions on Russia has opened new avenues for Indian businesses to expand trade with Moscow, according to the Moscow-based Indian Business Alliance (IBA).On October 23, the Council of the European Union adopted its 19th round of restrictive measures targeting key Russian sectors—including energy, finance, and defense — in response to what it called “Russia’s illegal invasion of Ukraine.”In a statement, the IBA said, “The EU sanctions against Russia have had an unexpected effect — instead of weakening the Russian economy, they have spurred local production and innovation. Russian industries have responded dynamically, filling the gaps left by the withdrawal of Western companies,” as cited by PTI.The alliance added that the measures have deepened Russia’s partnerships with “friendly nations, particularly India.” As Western firms exited Russia, Indian businesses stepped in to meet growing demand. “Bilateral trade between India and Russia has now reached a record $68.7 billion, reflecting the growing momentum in bilateral relationship,” the statement, signed by IBA president Sammy Manoj Kotwani, said.The 19th sanctions package also bans exports of several goods — including sanitaryware, electric motor toys, and tricycles — to Russia. The IBA said Indian companies have been quick to capitalize on these gaps. “Indian generic drug manufacturers, who in the past have been targets of western rivals’ smear campaigns, are today ensuring stable supplies for Russian hospitals and pharmacies,” it said.Indian exporters of engineering goods and machinery have expanded shipments of equipment, components, and spare parts, while Indian consumer products have reappeared on Russian shelves. The IBA noted that Indian tea, rice, spices, and garments are increasingly replacing European brands.“This cooperation benefits both nations — Russian consumers enjoy stable access to quality products, while Indian exporters gain new and growing markets,” Kotwani said, as quoted by PTI. He added that the IBA is actively helping businesses from both countries connect, facilitating logistics, partnerships, and guidance to build mutual trust. “Together, Russia and India are transforming global challenges into new opportunities — and emerging more resilient, united, and forward-looking than ever,” he said.The EU sanctions came a day after the United States announced its own measures against Russia. On October 22, Washington imposed sanctions on Rosneft and Lukoil, Russia’s two largest crude oil producers, prohibiting all American entities and individuals from doing business with them.At the same time, the US levied a 25% tariff on India for purchasing Russian oil, in addition to existing reciprocal duties on Indian exports. Indian goods are currently subject to nearly 50% additional import tariffs in the US. New Delhi has called these duties “unfair, unjustified and unreasonable.”Meanwhile, India on Monday reviewed progress in negotiations for a proposed free trade agreement (FTA) with the European Union. Commerce and Industry Minister Piyush Goyal met with EU Commissioner for Trade and Economic Security Maros Sefcovic in Brussels to discuss the ongoing talks.





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