Business
FTSE 100 hits another high despite concerns over US government shutdown
The FTSE 100 hit another record high on Wednesday, despite concerns over the US shutdown, as pharmaceutical stocks powered higher, with AstraZeneca up 11% alone.
The FTSE 100 index closed up 96.00 points, 1.0%, at 9,446.43, beating its previous record close on Tuesday.
The blue chip index had earlier set a new best level of 9,457.91.
The FTSE 250 ended 34.14 points higher, 0.2%, at 22,049.70, and the AIM All-Share ended up 3.24 points, 0.4%, at 786.41.
AstraZeneca led the FTSE 100 and rose 11%, regaining its crown as the most valuable FTSE 100 stock from HSBC, while peers Hikma Pharmaceuticals and GSK rose 5.7% and 6.2% respectively.
On Tuesday, the Trump administration announced a deal granting Pfizer a three-year reprieve on planned tariffs as the New York-based, pharmaceutical company vowed to voluntarily lower the prices of unspecified drugs for US purchase.
Under the deal, Pfizer is to charge “most favoured nation” pricing – matching the lowest price offered in other wealthy nations – to Medicaid, the US health insurance program for low-income Americans.
The White House also said it would unveil a website – called TrumpRx – that would allow consumers to directly purchase some medications from manufacturers at discounted rates.
JPMorgan sees Pfizer’s agreement as a potential “bellwether for the sector” which, “we anticipate is likely to be replicated by EU pharma companies and should therefore result in a broadly manageable impact”, from most favourable nation drug pricing, “reassuring investors”.
In economic data, the downturn in UK manufacturing worsened in September as output, orders and employment all fell at sharper rates, survey results from S&P Global showed.
The seasonally adjusted manufacturing purchasing managers’ index dropped to 46.2 points in September from 47.0 in August, marking its lowest level since April and remaining below the neutral 50-point mark for the 12th straight month.
The final figure came in line with the flash estimate published last Tuesday.
Production contracted for the 11th consecutive month, with declines across consumer, intermediate, and investment goods. New orders fell for a 12th successive month, one of the steepest drops in two years, as firms cited subdued client confidence, uncertainty linked to US tariffs, and high energy and labour costs.
Elliott Jordan-Doak, senior UK economist at Pantheon Macroeconomics, said demand for UK manufacturing exports continues to be beset by tariff-related uncertainty, although he thinks the worst of the tariff-related shock has passed.
He only expects manufacturing output to rise slowly over the course of the second half of the year.
The pound was quoted higher at 1.3477 US dollars at the time of the London equity market close on Wednesday, compared to 1.3443 dollars on Tuesday. The euro stood at 1.1729 dollars, up slightly against 1.1727 dollars. Against the yen, the dollar was trading at 147.15 yen, lower compared to 147.98 yen.
The yield on the US 10-year Treasury was quoted at 4.13% stretched from 4.12% on Tuesday. The yield on the US 30-year Treasury stood at 4.72%, widened from 4.69%.
In European equities on Wednesday, the CAC 40 in Paris closed up 0.9%, while the DAX 40 in Frankfurt advanced 1.0%.
Stocks in New York were little changed at the time of the London close. The Dow Jones Industrial Average was up 0.1%, the S&P 500 index was flat and the Nasdaq Composite 0.1% lower.
The US government entered a shutdown at midnight, as Congress failed to strike a deal to keep programmes funded.
Joshua Mahony, analyst at Rostro, said with little sign of progress toward a deal, traders are preparing for the possibility that both jobless claims and Friday’s non-farm payrolls release will be delayed.
He noted that, historically, shutdowns have delivered bouts of volatility, but the precedent has been that weakness tends to be short-lived and presents “buying opportunities”.
“Markets may therefore face turbulence in the days ahead, although historical evidence points towards shutdown declines providing opportunities for bulls that can take advantage of short-term dislocation,” he commented.
Citi analyst Andrew Hollenhorst said the economic drag from the shutdown should be limited, but would become more significant if the shutdown lasts more than two weeks or if a larger number of federal workers are permanently laid off.
“An earlier resolution is possible, but we would not be surprised if this shutdown lasts several weeks,” he added.
With the US jobs report under threat of delay, figures from ADP took on added significance.
According to the payroll services provider, the US private sector shed 32,000 jobs in September, an outcome that fell short of the FXStreet cited expectation of 50,000 additions. In August, 3,000 jobs were lost, in a reading massively revised from an initially reported 54,000 rise in payrolls.
Morgan Stanley said the negative print keeps the Federal Reserve “on alert”, and predicted consecutive quarter point rate cuts through to the January Federal Open Market Committee meeting.
Back in London, JD Sports Fashion rose 6.8% following better-than-expected results from its retail partner, Nike.
Nike rose 5.4% in New York. Its products account for about 45% of JD’s sales and their fortunes are closely linked.
On the downside, Tesco was a weak feature, down 3.6%, ahead of half-year results on Thursday.
On the FTSE 250, Greggs climbed 6.4% after a reassuring trading statement.
The bakery chain said trading had picked up in August and September after the “unusually” hot July had hurt sales.
But analysts said the share price jump reflected the absence of a further profit downgrade, and a short squeeze, rather than a burst of renewed enthusiasm for the company.
Peel Hunt said: “The market will be relieved the update did not bring a downgrade, but the pressure is still to the downside of forecasts.
“Big issues such as the viability of evening trade, the long-term store ambition, and the value-for-money image are still open discussions. There is too much to prove, in our view.”
But Tate & Lyle plunged 12% after cutting sales and earnings guidance amid subdued trading.
Chief executive Nick Hampton said the group has seen a “slowdown in market demand, particularly in the last two months which, in turn, has slowed our recent performance.”
Tate & Lyle now expects full-year sales to be down by low-single digit percent compared to prior hopes for growth at, or slightly below, the bottom of the firm’s medium-term range of 4% to 6%.
Brent oil fell to 65.53 US dollars a barrel on Wednesday from 65.99 dollars late on Tuesday.
But gold remained in demand, trading at 3,862.37 dollars an ounce on Wednesday, up against 3,836.50 dollars on Tuesday.
The biggest risers on the FTSE 100 were: AstraZeneca, up 1,254 pence at 12,436p; JD Sports Fashion, up 6.5p at 101.8p; GSK, up 97p at 1,671.5p; Hikma Pharmaceuticals, up 97p at 1,795p; and Melrose Industries, up 22p at 630p.
The biggest fallers on the FTSE 100 were: Babcock International, down 50p at 1,280p; Tesco, down 15.8p at 429.7p; Coca-Cola HBC, down 110p at 3,394p; Games Workshop, down 330p at 14,200p; and Imperial Brands, down 67p at 3,091p.
Thursday’s global economic calendar has eurozone unemployment data, and US weekly jobless claims figures and factory orders figures.
Thursday’s UK corporate calendar has half-year results from the UK’s largest retailer, Tesco.
Contributed by Alliance News
Gemma HandyBusiness reporter, St Johns, Antigua
Getty ImagesFor some Barbudans, thunderstorms still trigger flashbacks of the night in September 2017 when they lost everything they owned to Hurricane Irma’s devastating winds.
Eight years on, while memories may be close to hand, home insurance for many on Barbuda and other islands in the Caribbean’s hurricane belt is more prohibitively expensive than ever.
Across the region premiums have gone through the roof in the past two years, surging by as much as 40% on some islands, according to industry figures.
Experts blame a perfect storm of increasing risk – as the region sees worsening and more rapidly intensifying cyclones – yet tiny populations of people to pay for policies, equating to poor returns for insurance companies.
Dwight Benjamin’s Barbuda home was one of few left relatively undamaged by Irma. After the storm, he invested in a one-room extension topped with a concrete roof that will serve as a shelter for his family should disaster strike again.
“I think the house should be sound enough but that’s my added protection,” he says.
With peak hurricane season now in full swing, Dwight is among many Caribbean people anxiously monitoring weather platforms for activity in the Atlantic. Should a system head his way, he will do as he did during Irma – hope and pray.
“I’ve never had insurance; most Barbudans don’t really think it’s worth it. It’s just an added expense to the meagre resources we have,” he explains.
“Plus, we believe in what we have built and that it should be able to withstand the weather.”
Courtesy Dwight BenjaminLike Dwight, many Caribbean people build homes “out of pocket”, rather than opting for mortgages that can have high interest rates in this part of the world.
And the majority of homes on islands affected by hurricanes are uninsured. In Jamaica only 20% are reported to have cover, and just half in Barbados.
It is not just storms threatening the region, but earthquakes and volcanos too, points out Peter Levy, boss of Jamaican insurance company BCIC.
As a result of these threats of natural disaster, which Mr Levy calls the Caribbean’s “unique market”, the cost of home insurance will always be high.
One Antiguan insurance firm, Anjo, typically charges premiums of between 1.3% and 1.7% of a home’s value. Whereas in the UK, for example, it can be less than 0.2%.
Getty ImagesThe Atlantic hurricane season runs from 1 June to 30 November, with the most activity occurring between mid-August and mid-October. The northern Caribbean nations, such as Antigua and Barbuda, the Bahamas, British Virgin Islands, and the Dominican Republic, are among the most at risk of a direct hit.
The peak months can be torturous for people with Irma-related trauma, says Mohammid Walbrook, another Barbudan resident. “Whenever there’s an announcement of a storm coming our way, it brings back bad memories. For some, even thunder and lightning are a trigger,” he says.
Back in 2017, Mohammid took shelter in a bathroom with his mother, father, sister and nephews when Irma’s category five winds tore the roof from his parents’ home.
His own uninsured two-bedroom property was also badly damaged. He was one of several Barbudans to receive a new house through assistance from international donors.
Courtesy Mohammid WalbrookWhile some Caribbean countries – like British territory Turks and Caicos, also battered by Irma – have emergency cash reserves that can help with post-storm restoration, others do not have that luxury.
For deeply indebted nation Antigua and Barbuda, agencies like the United Nations Development Programme (UNDP) are a lifeline in the aftermath of a natural disaster.
The country’s prime minister Gaston Browne estimated the cost of rebuilding Barbuda after Irma, where 90% of buildings were damaged, topped $200m (£148m). Help came from China, the European Union and Venezuela, among others.
In 2017, the UNDP stumped up $25m for Barbuda and the island country of Dominica, which was ravaged by Hurricane Maria that same month.
The money restored more than 800 wrecked buildings across the two islands. But the body’s intervention was crucial in other ways too.
With livelihoods destroyed, the UNDP’s cash-for-work programme hired hundreds of local residents who had suddenly found themselves unemployed.
They assisted with everything from debris removal to reconstruction of homes and infrastructure, including Barbuda’s hospital and post office, the UNDP’s Luis Gamarra tells the BBC.
“Injecting economic resources into affected families helps reactivate the local economy,” he says.
Almost 1,000 contractors were also trained in more resilient “build back better” techniques, to safeguard structures against future disasters.
“The climate is changing and putting more pressure on governments and communities. Storms are becoming more frequent, more intense and happening earlier in the year too,” Mr Gamarra continues.
He thinks the expansion of partnerships with the private sector and with other countries in the region might help mitigate the impacts.
One such mechanism is the Caribbean Catastrophe Risk Insurance Facility, of which 19 Caribbean governments are members. Set up after Hurricane Ivan in 2004, the first-of-its-kind risk-pooling venture allows member governments to buy disaster coverage at low cost.
Last year it made record payments topping $85m to Hurricane Beryl-hit islands.
In Antigua and Barbuda, hurricane preparedness is a year-round endeavour, explains Sherrod James, director of the country’s office of disaster services.
Assessments of buildings to be used as storm shelters, along with training of volunteers to man them, starts months before the season starts, he says.
“We also meet with the private sector, helping them put policies and preparations in place, looking at the safety and resilience of their buildings. We make sure our critical partners, such as the ports, are prepared.
“And we do a lot of proactive work to address chokepoints within waterways that can exacerbate flooding,” adds Mr James. “These days, storms can go from a category one to five in a day. The new norm has thrown out the old regiment of what has to be done; we have to be much more proactive now.”
For many Barbudans, this time of year will always bring trepidation. Dwight was among dozens who recently attended a Hurricane Irma remembrance service at the island’s Pentecostal Church.
“It was very touching and brought back a lot of memories,” he says. “This time of year, we keep an eye on the weather and our fingers crossed. But we are resilient people and we know how to survive.”
Toy maker Jellycat is planning to pay its owners £110m in dividends after it more than doubled its annual profit in 2024.
From eggs with sad faces to smiling peanuts, the Jellycat craze has made a big impact on the toy industry.
Its viral cuddly toys are sold all over the world and made the company a before-tax profit of £139m in 2024, up from £67m the previous year.
Chief executive, Arnaud Meysselle, said Jellycat was “humbled” by its growth and will continue to “bring more characters to life”.
Jellycat founder and chairman Thomas Gatacre said: “Our mission is simple: to create joy and try to be the most loved soft toy company in the world.”
First reported by the Financial Times, Jellycat’s most recent Companies House accounts show the firm saw a 66% increase in revenue to £333m for the year to 31 December.
The dividends the privately owned company plans to pay are a 75% increase from the £63m paid out to its owners the previous year.
Mr Gatacre said the Jellycat team has been running “faster than ever” to keep up with demand for the soft toys in 80 countries.
He added that the company is striving to make sure “every Jellycat arrives in tip top condition, build to last, and made responsibly”.
Jellycat’s success has been linked to its popularity on social media and a rise in adults buying toys for themselves.
As well as just selling the toys, Jellycat has a range of pop-up “experiences”.
Currently at London’s Selfridges, you can buy fish and chips soft toys, sold to you by an assistant pretending to fry and put salt and vinegar on your selected teddies.
In New York, you can visit a Jellycat diner and Paris has its own Jellycat patisserie with adults lining up to buy the toys.
Videos of such experiences have millions of views online, with fans essentially advertising to each other.
House prices on the rise again – but one property type is bucking the trend
Nationwide data shows prices are up 0.5 per cent month to month, keeping annual prices rising at 2.2 per cent.
But the statistics show there are major differences in price changes between the north and south of the UK, as well as in the property type.
Semi-detached properties rose 3.4 per cent over the last 12 months, while detached (2.5 per cent) and terraced (2.4 per cent) saw slightly slower price rises. The cost of flats continues to decline, seeing average prices fall by 0.3 per cent.
Karl Matchett1 October 2025 16:00
Business and Money live – 1 October
Morning all, new economic data this week continues to paint a general picture of slow, perhaps grudging, growth in multiple areas – but not manufacturing.
We saw in GDP data that it had been hit in the second quarter and more numbers today back that up.
Karl Matchett1 October 2025 10:50
Manufacturing falls in ‘worrying news’ for industry
The latest data on UK manufacturing PMI from S&P shows a September slowdown, hot on the heels of ONS’ data showing the sector fell in the second three months of the year.
Rob Dobson, director at S&P Global Market Intelligence, said: “The final Manufacturing PMI results provide further worrying news for the health of UK industry.”
Commenting on what it might mean going forward, Mike Thornton, head of industrials at RSM UK, said: “The latest fall in manufacturing activity in September was another blow for the sector, showing a continued downward trend rather than a seasonal dip in August.
“The output index has dropped to 45.7, the lowest level since March, signalling a sharp slowdown in production levels as weak demand, falling new orders and subdued export activity continue to weigh heavily on the sector.
“This sustained contraction suggests manufacturers are scaling back operations to mitigate deteriorating market conditions, with little sign of a rebound in the short term. Businesses should therefore expect a stagnant outlook for the remainder of the year.”
Karl Matchett1 October 2025 10:58
UK business confidence plunges to lowest level on record
Business confidence slumped to its lowest level on record last month amid concerns over soaring costs, according to a new survey of company bosses.
Data from the Institute of Directors (IoD) showed that firms said higher labour costs has been the biggest contributor to growing pessimism about the economy.
The industry group’s monthly economic confidence index, which measures business leader optimism about the prospects of the UK economy, posted a minus 74 reading for September.
It marked a significant decline from minus 61 and struck the lowest level since the index was launched more than nine years ago.
Karl Matchett1 October 2025 11:02
Pound strengthens against the dollar after government shutdown
The US government is now in shutdown, with the two parties not managing to agree a funding plan.
While stock markets have generally not reacted too much to this outcome – futures show the S&P 500 down about 0.5 per cent – the dollar has weakened further.
That means you are right now getting more for your money if you are heading to the US.
£1 is now $1.3465, up almost 0.2 per cent today.
It was slightly higher earlier and we can expect a little more movement across the day.
At the start of the year it was $1.2521 – it’s up more than 7.3 per cent since then.
Karl Matchett1 October 2025 11:20
FTSE 100 surges to new record high
The City is cheering new FTSE 100 highs today, as the benchmark index topped 9,400 points for the first time ever.
After rising 0.7 per cent this morning, it’s currently around 9,414 points.
The highest risers include pharma trio AstraZeneca (up 6.1%), Hikma (3.6%) and GSK (2.5%).
“AstraZeneca, Hikma and GSK rallied after Donald Trump announced plans to launch a government-run website for consumers to buy drugs directly from manufacturers. It looks like investors are regaining confidence in the pharma sector following recent uncertainty around pricing and tariffs. More clarity on both points is helping to regain investors’ interest,” explained Russ Mould, investment director at AJ Bell.
Karl Matchett1 October 2025 11:40
Greggs sales growth cools after July heatwave deters consumers
Greggs has revealed its sales rose in recent months but blamed unusually hot July weather and a tough consumer backdrop for a slowdown in growth.
The high street bakery chain, with 2,675 shops in the UK, has continued to expand its sprawling estate across the country.
It reported a 6.1% increase in sales over the third quarter of 2025, compared with the same period a year ago.
On a like-for-like basis, which strips out the impact of new shop openings, sales growth across company-managed shops slowed to 1.5% year on year.
Karl Matchett1 October 2025 12:00
Key deadline approaching if you have a side hustle
Another reminder that 5 October is fast approaching – and that’s the deadline to register for self assessment if you have a side hustle and your income from it is beyond £1000.
To put that in perspective if you’re on Vinted, eBay and anywhere else – that’s only an average of £20 a week means you surpass that threshold.
Kate Steere, money expert at Finder, said: “Side hustles are becoming increasingly popular as household budgets are squeezed by inflation, but many people don’t realise they could be liable for tax even if they’re earning a relatively small amount on the side each month. All it takes is earning more than £80 a month, and you’ve exceeded the £1,000 yearly limit.
“If you’re in this boat, while you don’t need to submit your tax return until the end of January, you do need to register for Self Assessment before 5 October.
“Miss this, and you could face a failure-to-notify penalty. While you’re at it, why not give your future self a break by opening a dedicated business account? Separating your personal finances from your side hustle income will make the whole process that much smoother when it comes to filing your tax return.”
Karl Matchett1 October 2025 12:20
Young adults turn to TikTok more than uni for financial information
Credit card firm Aqua have released results of a survey of 500 young adults (18-24 year olds) and, while a small sample size, the results are eye opening.
The top financial lessons they wish they’d known earlier are ‘how to invest’ (21%), ‘how to budget’ (19%) and detail around what credit scores mean (18%).
Perhaps more notable is where they are going for this.
18-24-year-olds are more likely to turn to TikTok (22.2%) than to their university (15.8%) for financial guidance, reads the report.
Good that they are going out and trying to find the information, of course, but be wary on social media – there’s a lot of misinformed or outright incorrect stuff on there.
Always ensure you’re using reputable accounts, persons or companies if that’s where you go for info.
Aqua’s Sharvan Selvam said: “These results show that many young people feel underprepared when it comes to managing their money, especially around credit and budgeting. It’s worrying to see such high levels of stress around finances at such a formative stage in life, and it highlights the need for more practical, accessible guidance.”
Karl Matchett1 October 2025 12:40
Royal Mail to take over thousands of UK convenience stores
International Distribution Services (IDS), the firm which owns the postal service, has concluded a purchase of 49 per cent of shares in parcel company Collect+, with part of the deal meaning about 8,000 stores will now be branded Royal Mail.
It means high street stores will sell postage over the counter and customers can pay bills in person rather than only online.
The deal, which is worth £43.9m, will also see self-service kiosks installed in some shops next year, extended opening hours including weekends and evenings – plus retaining the normal operations of Collect+, which include sending and returning parcels from other carriers.
Karl Matchett1 October 2025 13:00
Colts’ Howard abruptly retires, says ‘family first’
Hurricane season brings financial fears in the Caribbean
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