Business
FTSE 100 edges up after Trump backs down on Greenland tariffs threat
The FTSE 100 made modest progress on Thursday after Donald Trump walked back on threats to impose tariffs, but underperformed European peers amid soft mining, energy and defence stocks.
The FTSE 100 index closed up 11.96 points, 0.1%, at 10,150.05.
The FTSE 250 ended 299.64 points higher, 1.3%, at 23,370.93, and the AIM All-Share closed up 9.08 points, 1.1%, at 817.67.
US President Trump said late on Wednesday that he had reached a framework for a deal over Greenland following a meeting with Nato chief Mark Rutte and would waive tariffs scheduled to hit European allies.
“We have formed the framework of a future deal with respect to Greenland and, in fact, the entire Arctic region,” Mr Trump said in a post on Truth Social.
The US president did not provide any details on the framework, but added that his threatened tariffs against European countries who were resisting his quest to acquire Greenland were now off the table.
Kathleen Brooks, research director at XTB, said: “The tariff risk is now on the back burner, and this week’s price action tells us that financial markets fear tariffs more than geopolitical risks.”
Ms Brooks said there is still a way to go before markets reverse overall losses for this week, but noted the selloff in recent days “sent a jolt of volatility through financial markets, but it did not lead to a rout”.
This suggests that investors remain “dip buyers” and that the fundamentals for markets “remain strong”.
In European equities on Thursday, the CAC 40 in Paris closed up 1.0%, while the DAX 40 in Frankfurt ended 1.2% higher.
In New York, financial markets were higher at the time of the London equity market close.
The Dow Jones Industrial Average was up 0.9%, the S&P 500 was 0.7% higher, while the Nasdaq Composite climbed 1.0%.
The yield on the US 10-year Treasury was quoted at 4.27%, unchanged from Wednesday. The yield on the US 30-year Treasury was quoted at 4.87%, narrowed from 4.89%.
Data showed US third-quarter economic growth was slightly stronger than expected, according to numbers from the Bureau of Economic Analysis (BEA).
US gross domestic product expanded by 4.4% on an annualised basis, quarter-on-quarter, in the three months to September 30. The prior BEA estimate said growth was 4.3%.
“The increase in real GDP in the third quarter reflected increases in consumer spending, exports, government spending, and investment. Imports, which are a subtraction in the calculation of GDP, decreased,” the BEA said.
The pound was quoted higher at 1.3498 US dollars at the time of the London equities close on Thursday, compared to 1.3437 dollars on Wednesday.
The euro stood at 1.1749 dollars, higher against 1.1707 dollars. Against Japan’s yen, the dollar was trading at 158.27 yen, higher from 158.18 yen.
In London, figures showed UK public sector net borrowing rose in December by less than expected.
According to the Office for National Statistics, net borrowing was £11.58 billion in December, below the FXStreet-cited market consensus estimate of £13.5 billion.
The December total was above November’s net borrowing of £10.94 billion, which was revised downwards from £11.65 billion. But it was down 38% from December 2024.
Danni Hewson, AJ Bell head of financial analysis, said: “The significant fall in government borrowing in December will be a relief for the Treasury, especially since January’s numbers are likely to look even better with a surge in self-assessment receipts expected.”
Ms Hewson pointed out spending “nudged up” compared with the previous year, primarily because of increases to benefit payments and pay rises, but that was more than offset by an increase in the cash coming into the government’s coffers.
However, she noted the picture “isn’t quite as rosy” for the full financial year to date “with total borrowing to the end of December at levels only seen twice before”.
“The deficit is reducing, but the pace of the reduction is glacially slow. With further increases to benefit payments on the way in April, the pressure on the public purse is still uncomfortable,” Ms Hewson added.
On the FTSE 100, defence stocks BAE Systems and Babcock International gave up 3.7% and 1.4% on the cooler geopolitical temperature.
Miners were another weak feature after recent gains. Antofagasta fell 2.2%, Glencore dropped 2.0% and Anglo America eased 1.7%.
Insurer Admiral fell a further 4.6% as RBC Capital Markets downgraded to “sector perform” from “outperform”, the day after Goldman Sachs lowered the stock.
While the weaker oil price weighed on BP, down 1.9% and Shell, down 2.2%.
Brent oil traded lower at 64.26 US dollars a barrel on Thursday, down from 64.82 dollars late on Wednesday.
On the FTSE 250, Computacenter led the way, up 10%, after better than expected trading in 2025.
The services provider, based in Hatfield, Hertfordshire, said business performance in the fourth quarter, and 2025 as a whole, was ahead of its expectations.
As a result, the FTSE 250-listing expects full-year adjusted pre-tax profit to be no less than £270 million, “comfortably ahead” of market expectations which the firm put at £253.6 million. It would represent growth of as much 6.3% from £254 million reported in 2024.
“This is a strong pre-announcement, with results ahead of expectations, earnings upgrades to come and encouraging messaging on the pipeline and outlook,” analysts at JPMorgan said.
Senior rose 8.8% as it said it expects full year adjusted pre-tax profit to be “comfortably above previous expectations”, boosting guidance for the second time in three months.
The company, based in Royston, Hertfordshire, makes components and systems for aerospace and defence, land vehicle, and power and energy customers.
It said trading since the November update has been “stronger than expected trading, notably in Aerospace”.
On AIM, Kitwave soared 33% as it accepted a £251 million takeover offer from New York investment company OEP Capital Advisers.
The cash bid values each share in the food wholesaler, based in North Shields, North Tyneside, at 295 pence.
Gold was quoted at 4,874.80 US dollars an ounce on Thursday, after hitting another record high, up from 4,833.66 dollars on Wednesday.
The biggest risers on the FTSE 100 were: St James’s Place, up 62.5 pence at 1,511.0p; Hikma Pharmaceuticals, up 48.0p at 1,568.0p; JD Sports Fashion, up 2.56p at 84.62p; Spirax, up 220.0p at 7,370.0p; and ConvaTec, up 7.0p at 236.6p.
The biggest fallers on the FTSE 100 were: Admiral Group, down 136.0p at 2,812.0p; BAE Systems, down 77.0p at 1,985.0p; ICG, down 52.0p at 1,940.0p; Rio Tinto, down 155.0p at 6,486.0p; and Shell, down 59.5p at 2,674.0p.
Friday’s global economic calendar has a raft of flash composite PMI readings, an interest rate call in Japan overnight, plus UK consumer confidence and retail sales data.
Friday’s UK corporate calendar has a trading statement from currency and asset manager Record.
Contributed by Alliance News
Business
Clock ticks on Spirit Airlines as bondholders weigh Trump bailout. Here’s what could happen next
Spirit Airlines‘ future is hanging in the balance over the next week as President Donald Trump said the government could bail out the airline, as the struggling discount carrier‘s lenders assess a potential deal.
“We’re thinking about doing it, helping them out, meaning bailing them out, or buying it,” Trump told reporters in the Oval Office on Thursday.
“I’d love to be able to save those jobs. I’d love to be able to save an airline. I like having a lot of airlines, so it’s competitive,” Trump said.
The White House and major bondholders either didn’t immediately comment or declined to comment on the matter.
Trump told reporters that “when the price of oil goes down,” the government could “sell [Spirit] for a profit.”
Spirit expected to emerge from bankruptcy midyear, but that was before the U.S.-Israel attacks on Iran led to a surge in jet fuel costs. Spirit had a nearly $28.3 million operating loss in February, according to a court filing, which was before the fuel price spike hit carriers — and travelers’ wallets.
Spirit, the iconic budget carrier known for its bright yellow planes and bare-bones service that became a punchline for late-night comedians, has struggled to survive. The industry’s costs ballooned after Covid, as customer tastes changed for more upmarket offerings and international destinations.
Spirit has aggressively axed its costs, selling aircraft and shrinking its network. Last May, Spirit operated 19,575 flights, according to aviation data-firm Cirium. This May, it’s operating 9,353.
A planned acquisition of Spirit by JetBlue Airways was successfully challenged by the Biden administration, which the Trump administration said hurt Spirit.
“Spirit Airlines would be on a much firmer financial footing had the Biden administration not recklessly blocked the airline’s merger with JetBlue,” a White House spokesman said by email. “The Trump administration continues to monitor the situation and overall health of the U.S. aviation industry that millions of Americans rely on every day for essential travel and their livelihoods.”
Will others follow suit?
Some industry members and analysts have suggested other airlines, especially low-cost carriers, could seek similar assistance from the government.
Low-cost airlines met with Transportation Secretary Sean Duffy earlier this week to discuss the current surge in fuel costs, people familiar with the matter told CNBC.
The Trump administration has taken stakes in companies it views as a national security interest, while companies from automakers to banks to the airline industry as a whole have received bailouts in the past, but it’s highly unusual that the government would rescue a single company.
Delta Air Lines and United Airlines account for most of the airline industry’s profit in the U.S., spending years and billions of dollars to successfully court a less price sensitive clientele that is willing to pay up for roomier seats and other perks, as well as broad international networks. Many other carriers, including Spirit, have tried to catch up in recent years.
“We wonder if a potential Spirit deal could become a facility of last resort that other challenged carriers could seek in the future,” Barclays analyst Brandon Brandon Oglenski said in a note Thursday.
Possible deal
The terms of a tentative deal are for a $500 million loan that could eventually give the government a 90% stake in the Florida-based carrier, people familiar with the matter told CNBC. The potential plan would also put the government ahead of other investors, the people said, requesting anonymity to talk about the terms.
A U.S. bankruptcy court hearing to discuss the possible deal could be set for as early as Monday, according to comments in court on Thursday.
Mike Stamer, an Akin attorney who represents bondholders in the bankruptcy case, confirmed in court Thursday that “we did, in fact, receive a copy of the term sheet” for the potential deal with a loan from the U.S. government, a sign of how advanced the talks are.
The deal would also allow the U.S. government to select a board member, a person familiar with the potential terms told CNBC.
Spirit’s labor unions are also pushing for a deal.
“Any assertion that Spirit should just liquidate is only going to harm workers, passengers, and further strain our economy,” the Association of Flight Attendants-CWA said Thursday. “It’s unnecessary and mean spirited — when just a little help can stave off massive harm.”
Spirit’s lawyer, Marshall Huebner of Davis Polk, said in bankruptcy court Thursday that the loan would help Spirit get to “standalone fighting shape” but could also set it up for a potential merger.
Acquisition talks have failed before, however, most recently, with Frontier Airlines, which originally planned to merge with Spirit until a surprise all-cash offer by JetBlue.
Spirit’s challenges might also not go away, said Conor Cunningham, Melius Research airline analyst.
“How deep does he want to go?” he said of Trump and the possible rescue deal. “$500 million is probably not enough.”
The federal government announced a Rs26.77 per litre hike in the price of petrol and high-speed diesel each on Friday, according to a notification issued by the Petroleum Division.
The new prices will be effective from April 25, 2026 for a week, the notification stated.
Following the increase, the price of HSD has jumped from Rs353.42 to Rs380.19, while the petrol price now stands at Rs393.35.
The government has been reviewing petroleum prices every Friday night following the now-paused US-Israel war on Iran, which began on February 28.
In the previous weekly review, the prime minister announced a reduction of Rs32.12 per litre in the price of high-speed diesel, while the petrol price remained unchanged.
The government jacked up petrol and diesel prices despite oil prices falling globally on Friday after it appeared a second round of Middle East talks was back on, bolstering prospects for an end to a war that has crippled energy shipments from the Gulf.
Oil prices had been climbing earlier as investors worried about a lack of progress in ending the Middle East crisis, with Tehran keeping the Strait of Hormuz closed and the US maintaining a blockade of Iranian ports.
But they dropped on reports that Iran’s Foreign Minister Abbas Araghchi was to arrive in Islamabad on Friday night.
Brent crude, the international benchmark contract, fell back below $100 a barrel.
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The FTSE 100 ended the week on the back foot as the crisis in the Middle East remained deadlocked.
The FTSE 100 closed down 77.93 points, 0.8%, at 10,379.08. The FTSE 250 ended down 181.71 points, 0.8%, at 22,582.81, while the AIM All-Share fell 5.73 points, 0.7%, to 796.40.
For the week, the FTSE 100 fell 2.7%, the FTSE 250 also declined 2.7% and the AIM All-Share dipped 1.7%.
The oil price continued to tick higher amid few signs of a breakthrough in the Middle East crisis.
AFP reported that Iranian foreign minister Abbas Araghchi is expected to arrive in Islamabad on Friday night, citing an official source in Pakistan, without providing details about who he was likely to meet.
The Pakistan capital has been gearing up for an anticipated second round of talks between the US and Iran, but it was not clear whether Mr Araghchi and the delegation accompanying him would meet any US officials to discuss the Middle East war.
The BBC reported that the suggestion coming from Iran is that these are bilateral talks with Pakistan, not meeting the US.
Writing on X, Mr Araghchi said his trip to Islamabad is to “closely co-ordinate with our partners on bilateral matters and consult on regional developments”.
US defence secretary Pete Hegseth said Iran has a chance to “make a good, wise deal”, adding that the US naval blockade of Iranian ports “is growing and going global”.
Mr Hegseth said the US is not “anxious” to make a deal, and “the ball is in [Iran’s] court”.
Brent oil traded at 105.78 dollars a barrel on Friday afternoon, compared with 103.25 dollars at the time of the equities close in London on Thursday.
In European equities on Friday, the CAC 40 in Paris ended down 0.8%, and the DAX 40 in Frankfurt ended 0.1% lower.
The mood was brighter in the US. In New York, the Dow Jones Industrial Average was down 0.4%, but the S&P 500 was 0.5% higher and the Nasdaq Composite 1.2% to the good.
David Morrison, senior market analyst at Trade Nation, explained the war in the Gulf is hitting Europe and the UK harder than the US.
“The former are reliant on imported energy in a way the US isn’t. While the US still must deal with higher crude oil prices, it has few worries over supplies drying up,” he pointed out.
On Wall Street, Intel was the star of the show soaring 23% after better-than-expected first quarter results and guidance, reporting “unprecedented” demand for its chips.
The yield on the US 10-year Treasury stretched to 4.32% on Friday from 4.29% on Thursday. The yield on the US 30-year Treasury widened to 4.92% from 4.89%.
The pound eased to 1.3497 dollars on Friday afternoon from 1.3500 dollars on Thursday. Against the euro, sterling fell to 1.1532 euros from 1.1551 euros.
In the UK, retail sales increased faster than expected in March as fuel sales soared 6.1% amid surging oil prices.
According to the Office for National Statistics, the volume of retail sales rose by 0.7% in March, against market consensus for no growth.
Total retail sales, excluding automotive fuel, rose by 0.2% on-month, in line with FXStreet-cited expectations.
Danni Hewson, AJ Bell head of financial analysis, explained the figures show rising petrol and diesel prices are “eating into household budgets”.
“People can only spend a pound once and if they’re choosing to shell out more than normal on fuel, they’ll have less to spend on other purchases,” she explained.
A separate report showed UK firms think food inflation could jump as high as 7% this year.
According to a Bank of England survey the Middle East conflict has “eroded” confidence that the UK economy will improve later this year.
The Decision Maker Panel survey showed that firms expected to increase their prices by 3.8% over the next 12 months, according to data for the three months to April.
This is 0.3 percentage points higher than predicted over the three months to March.
Meanwhile, the Bank of England’s deputy governor, Sarah Breeden, told the BBC on Friday the the UK central bank expects stock markets around the world to fall as share prices do not reflect the many risks facing the global economy.
Ms Breeden, who is also the Bank’s head of financial stability, said: “There’s a lot of risk out there and yet asset prices are at all-time highs. We expect there will be an adjustment at some point.”
The euro traded lower against the greenback, falling to 1.1703 dollars on Friday from 1.1708 dollars on Thursday. Against the yen, the dollar was trading at 159.55 yen, from 159.50 yen.
On the FTSE 100, packaging firm Mondi slumped 11% as it missed profit forecasts in the first quarter.
The Weybridge-based packaging firm on Friday said underlying earnings before interest, taxes, depreciation and amortisation, including forestry fair value, fell 27% to 212 million euros for the first quarter that ended March 31, from 290 million euros a year earlier.
JD Sports Fashion fell 1.9% as the Financial Times said a boardroom rift sparked the departure of chairman Andrew Higginson this week.
The FT reported that Mr Higginson quit as chairman of JD Sports after pushing for chief executive Regis Schultz to be ousted and failing to win unanimous backing for the move.
But JD Sports told Alliance News that Mr Schultz has the “continued support” of its board.
A JD Group spokesperson said: “It was mutually agreed between Andy and the board that this is the right time for a change of chair; there has been no disagreement about the board’s continued support for the CEO. The board is grateful for the valuable role that Andy has played during his tenure at the business.”
Airlines headed south amid the higher oil price and fears over jet fuel supplies.
Wizz Air fell 6.0%, easyJet 2.3% and British Airways owner IAG 1.4%.
Gold traded at 4,718.34 dollars an ounce on Friday, down from 4,731.39 dollars at the same time on Thursday.
The biggest risers on the FTSE 100 were British American Tobacco, up 96.00p at 4,302.00p, Intercontinental Hotels Group, up 3.10p at 146.00p, London Stock Exchange Group, up 180.00p at 9,992.00p, Sage Group, up 14.60p at 902.80p and Marks & Spencer, up 5.35p at 347.00p.
The biggest fallers on the FTSE 100 were Mondi, down 93.60p at 748.20p, Babcock International, down 54.50p at 1,131.50p, Antofagasta, down 145.00p at 3,686.00p, AstraZeneca, down 536.00p at 13,956.00p and JD Sports Fashion, down 2.12p at 69.94p.
Monday’s global economic calendar has German consumer confidence data. Later in the week, interest rate decisions are due in the US, Europe, UK and Japan. Inflation prints will be released in Australia and for the euro area.
Next week’s local corporate calendar sees first quarter results from oil majors BP and Shell, pharmaceutical firms GSK and AstraZeneca and banks Barclays, NatWest and Lloyds.
Contributed by Alliance News
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