Business
FTSE 100 hits record high after optimistic UK economic reports
The FTSE 100 hit another record peak on Friday fuelled by weaker-than-expected US inflation data, optimistic UK economic reports and strong results from NatWest.
The FTSE 100 index closed up 67.05 points, 0.7%, at 9,645.62, a new record close.
The FTSE 250 ended 167.61 points higher, 0.8%, at 22,529.02 and the AIM All-Share advanced 1.77 points, 0.2%, at 777.06.
For the week, the FTSE 100 rose 3.1%, the FTSE 250 advanced 3.4% and the AIM All-Share went up 0.7%.
In Europe on Friday, the CAC 40 in Paris ended flat, while the DAX 40 in Frankfurt closed up 0.1%.
Stocks in New York were sharply higher at the time of the London close. The Dow Jones Industrial Average was up 1.2%, the S&P 500 was 1.0% higher, and the Nasdaq Composite advanced 1.3%.
The yield on the US 10-year Treasury was quoted at 4.00%, unchanged from Thursday. The yield on the US 30-year Treasury stood at 4.58%, also flat from Thursday.
After a sluggish start, blue chips in London pushed ahead after US consumer price inflation accelerated at a slower pace than expected in September.
The delayed numbers from the Bureau of Labour Statistics showed the annual consumer price inflation rate was 3.0% in September, picking up speed from 2.9% in August.
But the reading was short of the FXStreet-cited consensus of 3.1%.
Core CPI, which excludes more volatile food and energy costs, rose 0.2% month-on-month, and 3.0% year-on-year. It had been expected to hold steady at August’s 3.1% level.
The figures were seen as giving the green light for the US Federal Reserve to lower rates at next week’s Federal Open Market Committee (FOMC) meeting. A quarter point cut is expected.
Analysts at Wells Fargo said: “Today’s softer-than-expected CPI data should lock the FOMC into a 25 (basis points) rate cut at its meeting next week. That said, today’s data were not so soft that the committee can sound the all clear on inflation.”
Economists think US inflation could remain “sticky” in 2026 due to the ongoing impact of tariffs and that this could have implications for future interest rate decisions.
Felix Schmidt, at Berenberg, thinks elevated inflation will make it difficult for the Fed to lower the key interest rate again beyond its October meeting.
In the UK, there was a welcome surprise from retail sales data which rose 0.5% in September, defying forecasts for a 0.2% fall.
Danni Hewson, AJ Bell head of financial analysis, said the figures should bring “cautious optimism” ahead of the sector’s most important shopping period, with Black Friday and Christmas looming.
Adding to the positive tone, flash PMI data showed business activity in the UK expanded at a faster pace in October, led by a rebound in manufacturing. The S&P Global flash composite output index climbed to 51.1 points, exceeding both the 50 no-change threshold and expectations for 50.6.
September’s reading had slipped to 50.1 points. The latest data showed the slowest pace of job cuts since May and the weakest input price inflation since November 2024.
In addition, consumer confidence increased marginally in October as shoppers look to Black Friday, despite nervousness around the upcoming Budget, figures showed.
GfK’s long-running consumer confidence index increased by two points, although it still languishes at minus 17.
The increase was largely driven by a four-point rise in the index’s major purchase marker, an indicator of confidence in buying big-ticket items, to minus 12, a nine-point improvement on last October.
The pound was quoted lower at 1.3301 dollars at the time of the London equity market close on Friday, compared to 1.3323 on Thursday.
The euro stood at 1.1631 dollars , up compared to 1.1609.
On the FTSE 100, it was nip-and-tuck between NatWest and London Stock Exchange Group for top billing, with the two swapping places as the trading day progressed.
Lender NatWest eventually won out, rising 4.9%, and hitting a 15-year high as the bank lifted its annual guidance and said profit in its third quarter jumped by around a third.
The Edinburgh-based lender reported third quarter pretax profit of £2.18 billion, a rise of 30% from £1.67 billion a year prior. Total income improved 16% to £4.33 billion from £3.74 billion.
London Stock Exchange Group took the silver medal, advancing 4.8%, after Thursday’s well-received trading update.
Elsewhere, the retail sales surprise and an upgrade helped do-it-yourself retailer Kingfisher, which rose 1.9%.
RBC Capital Markets raised the B&Q owner to “outperform” from “sector perform” on hopes that growth opportunities for Kingfisher in the UK and Poland, would provide upside to longer-term sales forecasts.
On the FTSE 250, WH Smith rose 4.2% as Peel Hunt upgraded to “buy” from “hold”, after being downgraded by Barclays on Thursday.
Next month, the Swindon-based company is expected to disclose findings into an investigation of its US business following an understatement of profit.
But Peel Hunt thinks even in a scenario that the US is worth “literally nothing”, the “shares are still worth owning” for its other divisions.
Brent oil traded at 66.56 dollars a barrel, up from 65.75 late Thursday. Gold traded at 4,125.47 dollars an ounce on Friday, down from 4,146.49 on Thursday.
The biggest risers on the FTSE 100 were NatWest Group, up 26.8 pence at 572.4p, London Stock Exchange Group, up 450.0p at 9,799.0p, Tesco, up 9.8p at 455.4p, Next, up 280.0p at 13,435.0p and Polar Capital Technology Trust, up 8.5p at 450.0p.
The biggest fallers on the FTSE 100 were GSK, down 26.5p at 1,620.0p, Airtel Africa, down 2.4p at 228.0p, Hikma Pharmaceuticals, down 17.0p at 1,753.0p, Diageo, down 15.0p at 1,811.0p and LondonMetric Property, down 1.6p at 196.9p.
Contributed by Alliance News
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Bank customers and investors in India can safeguard a portion of their regular income in accessible and beneficial emergency fund options.
Where should you maintain an emergency fund? (Representative Image)
An emergency fund is the financial cushion you require during stressful and uncertain times to sustain your existing livelihood and safeguard your family’s needs and interests. In India, due to rising inflation and other economic challenges, low-income and middle-class citizens are often just a medical bill or job loss away from facing poverty. An emergency fund helps you shield against such unforeseen events, helping you stay afloat despite paying for medical coverage and riding the wave during unemployment days.
Fortunately, bank customers and investors in India have the option to safeguard a portion of their regular income in accessible and beneficial emergency fund options such as savings accounts, fixed deposits and post office schemes. Here is what you should know before determining the best option among the three for yourself.
Saving Accounts: Easy Access But Moderate Interest
Holding a savings account gives you easy access to your bank balance while earning moderate interest on the savings. Bank customers having a savings account can undergo the fastest transactions and fund transfers during emergencies using UPI, debit card and ATM facilities. While the interest earned on maintaining a savings account is quite low, customers also enjoy easy liquidity and a clean audit trail. However, you should keep track of the minimum balance rules during heavy withdrawals and you can also opt for a sweep-in facility provided by certain banks, where the surplus automatically moves into short-term deposits.
Fixed Deposits: Safety Plus Predictable Returns
Fixed Deposit is a financial instrument offered by the bank where customers can deposit a lump sum amount for a predetermined period at a fixed interest rate. FDs are known for their low risk value and predictable returns, making them a highly attractive option for those looking to ensure coverage during uncertain periods of life in the near future. But while safe and beneficial, FDs don’t provide easy access or liquidity. Premature withdrawal is only allowed after paying a small penalty or signing up for lower interest.
Post Office Scheme: Govt’s Safety, Workable Access
For those looking to maintain an emergency fund via a post office savings account or schemes, the government of India provides safety for the sum assured, stability on interest and multiple tax benefits. The accessibility and liquidity are also usually great, with account holders able to access their funds and make quick transactions during tough times. They also enjoy tax benefits on different schemes and quarterly interest payout.
A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, we cover al…Read More
A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, we cover al… Read More
Delhi, India, India
October 25, 2025, 07:47 IST
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Rachel Reeves has declined to rule out raising income tax at next month’s Budget, according to reports.
The Chancellor has previously insisted that Labour’s manifesto commitment not to raise income tax, national insurance or VAT “stands” when questioned about how she will bridge a fiscal black hole in November.
But asked about reports the Treasury was considering an income tax hike, the BBC said Ms Reeves told reporters on Friday she would “continue to support working people by keeping their taxes as low as possible” but was still “going through the process” of writing the Budget.
The Chancellor said: “Although I can’t talk about individual measures at this stage, I understand that the cost of living is still people’s number one concern.”
Ms Reeves is widely expected to use the Budget to increase taxes once again, with the Institute for Fiscal Studies estimating she needs to find £22 billion of tax rises or spending cuts to meet her self-imposed fiscal rule.
The gap comes as a result of higher borrowing costs, weak growth and an expected downgrade to official productivity forecasts, although recent better-than-expected inflation figures have eased the pressure slightly.
Raising the basic rate of income tax by 1p could raise around £8 billion, but would break a clear manifesto pledge.
It would also be the first time the basic rate has been increased since the 1970s.
The Chancellor is also reported to be considering cutting the amount of money people can save in cash Isas as part of a drive to encourage investment in stocks and shares.
It is understood that no decision has yet been made and several options are being considered, including halving the allowance from £20,000 to £10,000.
Treasury minister Lucy Rigby told the Telegraph the Government was “looking at the right balance between cash and shares in the Isa”.
She said: “The bottom line is, we want people to be better off and one way we can do that is to build a shareholding democracy in this country.”
Meanwhile, The Times reported that the Chancellor would use the Budget to increase the minimum wage once again, and make further moves towards abolishing lower minimum wage rates for younger people.
Hoka shoes are seen in a store in Krakow, Poland on February 1, 2023.
Jakub Porzycki | Nurphoto | Getty Images
Shares of footwear maker Deckers Brands plunged 15% Friday after the company trimmed its sales guidance for Hoka and Ugg — the two brands driving its growth — over concerns that tariffs are leading to a slide in demand.
Hoka, an up-and-coming running shoe brand, is now expected to grow by a low-teens percentage in fiscal 2026 after growing 24% in the year-ago period, while Boots brand Ugg is expected to grow in the range of a low to mid single-digit percentage, after growing 13% in the year-ago period.
In May, the company said Hoka and Ugg were expected to grow in the mid-teens and mid-single digits, respectively, in fiscal 2026 but it caveated that forecast by saying it was conceived prior to the introduction of President Donald Trump’s tariffs. At the time, it quantified the expected impact to its costs but said it remained to be determined what kind of impact the new duties could have on demand.
When reporting fiscal second-quarter earnings on Thursday, finance chief Steven Fasching said the impacts tariffs and higher prices are having on demand are now more clear.
“Part of the framework that we gave at the beginning of the year really said if tariffs did not have an impact on consumers, how we saw kind of certain growth, and we still believe that, right? But we do know and we are more currently seeing some impacts on the U.S. consumer,” Fasching told analysts on the company’s conference call. “So as U.S. consumers are beginning to see some price increases. It is impacting their purchase behavior within the consumer discretionary space.”
He added the guidance isn’t far off from what the company originally thought but acknowledged there is a “little bit of a reduction” in its forecast.
The slower pace of growth for Deckers’ two top-performing lines, along with the trim to their sales guidance, signals the two brands could be losing momentum after years of outperformance. Together, Hoka and Ugg account for the vast majority of Deckers’ revenue and have been critical in offsetting weaknesses in other categories.
CEO Dave Powers, however, downplayed fears of a long-term slowdown, telling investors that both brands remain strong among core consumers.
“We’re confident in the long-term trajectory of our portfolio,” Powers said. “While tariffs and inflation are creating near-term pressure, Hoka and Ugg continue to lead in brand heat and market share gains across their categories.”
Beyond Hoka and Ugg, Deckers’ full-year revenue guidance came in lower than analysts’ expectations. In fiscal 2026, the company expects revenue of about $5.35 billion, shy of Wall Street’s $5.45 billion forecast, according to LSEG. It expects earnings per share to be between $6.30 and $6.39, roughly in line with the $6.32 per share estimate, according to LSEG.
In the company’s call with analysts, Fasching warned that tariff costs could total about $150 million this fiscal year. Executives said they expect to offset roughly half of those costs through price adjustments and cost-sharing with factory partners.
Deckers’ shares have dropped more than 55% year to date, leaving investors on edge about any signs of decelerating demand.
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