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Broadcom’s (AVGO) stock soared by 20% to a record high after the semiconductor giant delivered an upbeat forecast, stoking the growing excitement around artificial intelligence (AI).

The surge propelled the company's market value past the $1trn mark (£791bn) for the first time, as investors responded to both strong quarterly results and a robust outlook for AI-related products.

For the fiscal quarter, Broadcom reported revenue of $14.1bn, a 51% increase compared to the same period last year. A major driver of this growth was the company’s sales of AI-focused products, which have more than tripled year-over-year.

Looking ahead, Broadcom expects AI-related sales to surge by 65% in the fiscal first quarter—far outpacing the company’s overall semiconductor growth forecast of around 10%.

Tech stocks led Wall Street higher Friday as Broadcom (AVGO) jumped higher after the chipmaker predicted an AI-driven sales surge, the Yahoo Finance US team writes.

The S&P 500 (^GSPC) rose 0.3%, while the tech-heavy Nasdaq Composite (^IXIC) gained 0.6%. The Dow Jones Industrial Average (^DJI) hugged the flatline.

Broadcom's bullish forecast helped brighten the mood. Shares were up over 19% after executives predicted an AI sales gain of around 65%, a much brisker pace than expected.

Broadcom's peers rallied in tandem. Marvell Technology (MRVL) was up over 5%, while AMD (AMD) and chip titan Nvidia (NVDA) rose more modestly.

UK households are forecasting a rise in inflation over the next year, according to the latest survey from the Bank of England, reflecting concerns following chancellor Rachel Reeves' announcement of £40bn in tax hikes as part of her recent budget.

The Bank’s Inflation Attitudes Survey found that Britons now expect prices to rise at an annual rate of 3%, up from 2.7% in the previous quarter. This marks the first upward revision in inflation expectations since August 2023, despite the official inflation rate falling to 2.3% in October.

The increase in expectations comes after Reeves unveiled £40bn worth of tax increases, a move that many anticipate will put further upward pressure on living costs. The survey’s timing also coincides with Reeves' broader fiscal plan, which includes £70bn in additional public spending.

With inflation already a key concern for the Bank of England, the rise in public expectations could influence the central bank’s decisions on future interest rate moves.

The chancellor has said towns are at risk of becoming “banking deserts” as she opened the UK’s 100th banking hub, and declined to commit to a fresh increase to the government’s target despite calls to pick up the pace.

Rachel Reeves also admitted she was “not immune” to the cost pressures facing small businesses following the budget.

The chancellor opened the hub in the market town of Darwen, Lancashire, on Friday as part of efforts to protect communities’ access to cash.

A banking hub is a shared space on the high street that can be used by customers of different banks.

It offers a counter service operated by the Post Office and a community banker service with different banks working on rotation each day.

Reeves said the government was “on track” to roll out 350 hubs by 2029, with five opened this week and another 80 in the pipeline for next year.

Uber (UBER) - Shares in ride-hailing company Uber closed Thursday's session flat after the stock tumbled in the previous session.

Broadcom (AVGO) - Chipmaker Broadcom's shares surged in after hours trading, with the stock up 14% pre-market open on Friday, on the back of its latest results.

Costco (COST) - Wholesale retailer Costco slightly beat forecasts in its fiscal first quarter, with adjusted earnings per share coming in at $4.04, versus Bloomberg consensus estimates of $3.81.

International Distribution Services (IDS.L) - In the UK, regulator Ofcom said that it had fined Royal Mail £10.5m for "poor delivery performance".

Boohoo Group (BOO.L) - Fast-fashion retailer Boohoo said on Friday that it would be willing to offer a single seat on its board to Frasers Group, but not to its founder Mike Ashley nor to restructuring expert Mike Lennon.

Read the full story here

Matthew Ryan, head of market strategy at Ebury, on today’s UK GDP data:

Paul Dales, chief UK economist at Capital Economics, said that today’s 0.1% dip in UK output in October makes it unlikely that Britain's economy will meet its initial growth forecasts.

The consultancy had previously anticipated a 0.2% increase for Q4, while the Bank of England had projected 0.3%. Given the early signs of economic stagnation, Dales now believes a contraction for the quarter remains a distinct possibility.

He added: “That said, with the Bank still worrying that inflation is too high, we don’t think the economy is weak enough to prompt the Bank to follow November’s 0.25% rate cut with another cut at next Thursday’s December meeting.

“That said, we’re not as confident about that as we were before this data release.”

Diageo (DGE.L) emerged as the top performer on the FTSE 100 (^FTSE) on Friday, continuing its upward momentum following a double upgrade by UBS analysts on Thursday. Shares of the drinks giant rose by 2.1%, securing its place at the top of the index's gainers list, with no major movements elsewhere in the market to overshadow its performance.

The positive sentiment around Diageo came as UBS (UBS) raised its rating for the stock, citing robust growth prospects in key markets and a solid outlook for the company's premium brand portfolio.

Elsewhere, International Consolidated Airlines Group (IAG.L) , the parent company of British Airways, also saw a 0.4% increase, benefiting from a broader recovery in the airline sector as travel demand continues to pick up.

On the downside, mining giants Anglo American (AAL.L) and Rio Tinto (RIO.L) were among the biggest fallers of the day, slipping by % and 0.8%, respectively, as commodity prices remained under pressure amid concerns about global growth.

The UK has been placed “on recession watch” after official figures showed the economy shrank for the second month in a row in October.

Julian Jessop, economics fellow at the Institute of Economic Affairs, said: “The second successive monthly fall in economic activity in October should put the UK firmly on recession watch. Indeed, output per head may already be falling for the second quarter in a row.

“The loss of momentum is not contained to the UK. Indeed, the manufacturing sector appears to be struggling even more in the rest of Europe, notably Germany and France.

“Nonetheless, the new government’s negative rhetoric over the summer and the anticipation of a tight budget have damaged sentiment and encouraged many households and business to put spending, hiring and investment on hold.”

Wall Street overnight from my colleagues in the US:

Looking ahead to 2025, a big focus for investors will be what happens after US president-elect Donald Trump's return to office in January.

Here are some funds that she says investors could consider as options in 2025 and beyond.

Artemis US Smaller Companies (0P00013YAP.L) - Concerns around trade tensions, particularly between the US and China, have been ramping up recently. President Joe Biden's administration has already announced broader semiconductor export restrictions aimed at limiting China's access to advanced chips.

Invesco Tactical Bond (0P0000MUWI.) - Inflation in many countries is at or close to the widely used target of 2% which has led many major central banks to start cutting interest rates.

Read the full story here

The UK economy contracted by 0.1% in October, according to the Office for National Statistics (ONS).

Economists in a Reuters poll had expected growth of 0.1%. It follows sluggish expansion of 0.1% in the third quarter of the year, according to last month's figures.

Chancellor Rachel Reeves said she was “disappointed” by the data after a weak month for pubs and restaurants dragged on growth amid some uncertainty ahead of the autumn budget.

Arts and entertainment, hotels and food services, and wholesale were among the sub-sectors to slow in October, while transport and science and technology increased.

Read the full story here

Boohoo (BOO.L) has offered its largest shareholder Frasers Group (FRAS.L) a seat on its board – but not for the retail tycoon Mike Ashley, Frasers’ founder.

The fast fashion retailer said on Friday that it was willing to have “constructive” talks about Frasers joining its board.

But it said current nominees Ashley and Mike Lennon, a restructuring expert, would have “irreconcilable conflicts of interest”.

The fast fashion retailer has been subject to a campaign by Frasers’ boss Ashley to get himself installed as chief executive at Boohoo in recent months.

That was cut short when Boohoo appointed Dan Finley, former boss at Debenhams, which it owns, in November.

Ashley then reverted to trying to get a board seat instead, which Boohoo has also resisted.

Frasers claimed in a letter on Thursday that Boohoo’s opposition to Ashley and Mr Lennon joining the board is because of fears they would “dilute” the influence of co-founder Mahmud Kamani.

The retail conglomerate has also said it is trying to protect minority shareholders from a potential plan by Boohoo bosses to break the company up as part of a turnaround effort.

Frasers has a 27% stake in Boohoo and has forced an emergency shareholder meeting to vote on the matter on December 20.

In a Friday morning statement, Boohoo said the letter indicated that Frasers was taking a “selective approach” to shareholder protection.

Regulator Ofcom has fined Royal Mail £10.5m for missing its post delivery targets in the 2023-2024 financial year.

The fine is the second in two years, after the watchdog also gave Royal Mail a £5.6m penalty in November 2023.

Royal Mail said just under three-quarters of first class post was delivered on time during the period, well short of its 93% target.

And 92.7% of second class post was delivered on time, below its 98.5% target, it said.