Source: Sharecast
Stocks to watch
UK defence contractor BAE cautioned that delays to contract funding and payment timings could occur if the US government shutdown persisted. The company also held annual guidance as trading in the second half was in line with expectations. BAE said it was “encouraged” by a vote in the US Senate to approve a compromise bill to resume funding until the end of January which still needs lower house and presidential approval.
Housebuilder Taylor Wimpey said it still expects full-year results to be in line with guidance despite experiencing “softer market conditions” so far in the second half. Net private sales per outlet have averaged 0.63 a week since 30 June, down from 0.71 the year before, while underlying pricing remains broadly flat, impacted by uncertainty ahead of the upcoming Autumn Budget and continued affordability pressures on consumers, the company said.
SSE said it will spend billions on the UK’s electricity network as it unveiled a five-year investment plan alongside interim results. The power generator said the £33bn, five-year plan would increase its exposure to UK electricity networks and drive earnings growth. The update came as it posed a 29% fall in adjusted earnings per share, to 36.1p, which SSE said was in line with expectations and consistent with typical seasonality.
Newspaper round-up
Renewables will grow faster than any major energy source in the next decade, according to the world’s energy watchdog, making the transition away from fossil fuels “inevitable”, despite a green backlash in the US and parts of Europe. The world is expected to build more renewable energy projects in the next five years than has been rolled out over the last 40, according to the flagship annual report from the International Energy Agency (IEA). – Guardian
The music industry contributed a record total of £8bn to the UK economy in 2024, powered in part by Taylor Swift’s Eras tour and Take That’s stadium run. According to figures in the annual report from UK Music, the umbrella organisation encompassing a range of bodies including the BPI and PRS for Music, the figure is a 5% rise from the £7.6bn contributed to UK GDP in 2023. As well as tours generating revenue through ticket sales, tourism and more, the £8bn figure also factors in revenue from recorded music, whether via sales, streaming, commercial deals and other sources. – Guardian
Heathrow has accused Rachel Reeves of an “own goal” on tax, warning that a planned £500m increase in the airport’s business rates bill will undermine pro-growth expansion plans. The airport said proposals for a fivefold rise in its business rates bill from the current £121m would be “unacceptable” to any company. – Telegraph
One of Britain’s leading artificial intelligence entrepreneurs has moved his residency to Switzerland, according to new company filings, amid concerns about the departure of high-net worth individuals. Karim Beguir, the co-founder and chief executive of InstaDeep, the London-registered AI company, which was sold to BioNTech for up to £562 million two years ago, changed his residency from the UK at the end of July, the filing at Companies House suggests. – The Times
Lower gas prices are on the horizon after a surge of approvals for new liquefied natural gas projects this year compounded forecasts of a looming global supply glut, according to the International Energy Agency. By 2030 global supplies of LNG are expected to increase by 50 per cent, adding an “unprecedented” 300 billion cubic metres of annual supply capacity, the agency said in its annual World Energy Outlook. – The Times
US close
US stock markets finished mixed on Tuesday, with the Dow surging to a new record but the S&P 500 and Nasdaq trading within a narrow range after strong gains the previous day.
The Dow jumped 1.2% to a new closing high of 47,927.96, topping a previous peak of 47,706.37 reached on 28 October.
However, the S&P 500 gained just 0.2% and the Nasdaq slipped 0.3%, finishing in a more subdued fashion after surging 1.5% and 2.3% on Monday, respectively.