The FTSE 100 (^FTSE) and European indices continued their positive run on Friday as the UK economy grew by a better-than-expected 0.6% between January and March. Wall Street followed suit, pushing higher in New York after economic data this week supported bets of interest rate cuts.
According to the Office for National Statistics (ONS), services output was up by an estimated 0.7%, while production output grew 0.8%. Meanwhile, construction was down 0.9%.
This rise in GDP means that the economy is no longer in a technical recession, after activity fell in the third and fourth quarters of last year.
London’s benchmark index was 0.7% higher on the day, jumping passed the 8400 point mark for the first time
Germany's DAX (^GDAXI) rose 0.4% and the CAC (^FCHI) in Paris headed 0.3% into the green
Susannah Streeter, head of money and markets at Hargreaves Lansdown, said: "The 0.6% growth registered in the first three months of the year was higher than forecast, with the green shoots seen in January and February flowering into a stronger growth spurt in March.
"Confidence breeds more optimism, and with the economy showing signs of repairing and the FTSE 100 rallying higher, the glass half full sentiment is settling in. The blue-chip index has powered higher in early trade and set fresh records, after a sheen of positivity has descended on the UK."
Roblox (RBLX) only came public in 2021, and its stock has fallen from a high above $130 a share in November of that year to around $30 now. That’s as its annual sales growth rate has moderated into the mid-twenties percentage range.
It feels like the jury’s still out on whether the Roblox craze ends up being a flash in the pan or a lasting trend. It’s tempting as an investor to buy what you know, as Warren Buffett has famously said. And when it comes to trends that we interact with, see, and judge on a regular basis, we develop opinions.
But what if the trend you know ends up being just a fad?
Workers at Morrisons are set to go on strike in a dispute over pensions, it has been revealed.
Unite the Union said almost 1,000 of its members working in Cheshire and Wakefield as warehouse stock controllers, canteen staff and administrators voted to take industrial action.
They will strike from 23 May to 26 May and again from 13 June to 16 June.
Unite general secretary Sharon Graham said:
Changes to pension contributions could leave workers £500 worse off.
LaToya Harding
Best savings accounts that offer above inflation rates
UK households are on the lookout for every little way to make their money go further amid the cost of living crisis, and savings accounts might help.
After years of low rates, high-yield savings accounts are having a moment as the Bank of England has kept interest rates at a 16-year high of 5.25%. While homeowners face higher mortgages, there is a silver lining in higher borrowing costs as consumers can now find UK savings accounts that offer more than inflation.
The UK rate of inflation came in at 3.2% in March, the lowest since September 2021, according to figures from the Office for National Statistics (ONS).
Savers should make sure they shop around to find the best deals and check what rate they are on – as they could still be sitting on a product that does not beat inflation.
The main factor you should be aware of when choosing a savings account is the difference between easy access and fixed term.
In a nutshell, easy access accounts allow you to access your money when you need it. Fixed term, as the name implies, are accounts where you can’t access your cash for the duration of the deal. They usually offer better rates but you must be comfortable with the idea of not touching your savings for a long period of time, usually between one to five years.
Jaguar Land Rover has posted its highest ever yearly sales and its biggest profit in almost a decade.
The luxury carmaker reported £29bn revenues in the year to March, over a quarter higher than the previous year, thanks to record sales of its Range Rover vehicles.
Around 133,000 vehicles had been ordered at the end of the financial year, three quarters of which were for Range Rover, Range Rover Sport and Defender models.
Pre-tax profit came in at £2.2bn, the highest amount since 2015.
LaToya Harding
Huw Pill: Clear signal of rate cut from downward inflation path
The Bank of England’s chief economist Huw Pill has said Threadneedle Street has sent a “relatively clear signal” on by recent falls in inflation.
LaToya Harding
UK economy set to grow 0.6% in Q2
Looks like the UK economy momentum will keep on going next quarter...
The UK economy is likely to keep growing during the current quarter, according to the National Institute of Economic and Social Research (NIESR).
They have predicted that GDP will increase 0.6% in the April to June period.
NIESR said:
LaToya Harding
Anglo American rises after Rio Tinto mulls offer
Shares in the mining sector were higher on Friday amid reports that Rio Tinto (RIO.L) had considered an offer for rival British miner Anglo American (AAL.L), which is now BHP’s (BHP.L) £31bn takeover target.
Rio “management had not ruled out making a play for part or all of the mining group and continued to study the day-to-day situation", the Australian Financial Review reported.
Anglo has turned down BHP’s proposal, saying it was opportunistic and significantly undervalued the British company. Under the UK’s takeover rules, BHP has until May 22 to make a formal offer.
“Shares in Anglo American are up on a report that Rio Tinto also considered a bid following BHP’s rejected offer. M&A speculation is helping to keep Anglo shares supported at the moment,” Victoria Scholar, head of investment at Interactive Investor, said.
BHP and Rio have a close working relationship at Escondida and Resolution Copper. One option for Rio is to informally assist BHP’s bid for Anglo by acquiring the assets that BHP does not want, such as Anglo’s diamond business, AFR wrote.
Glencore is also studying options for a possible approach for Anglo, Reuters reported earlier in the month, a move that could spark a bidding war.
Oil prices rose on Friday, after two days of gains, as US jobs data supported the case for Federal Reserve rate cuts this year.
Brent crude (BZ=F) the international benchmark, rose 0.4% to push above $84 a barrel after a two-day climb that added about 1%. This was after having exceeded the 100-day moving average. US-produced West Texas Intermediate neared $80.
The Organisation of Petroleum Exporting Countries and its allies (OPEC+) are due to meet early next month to decide on output in the second half.
“With crude oil prices now trading over $10 a barrel off their highs, we could not rule out some speculative buying,” Citigroup Inc. analysts Max Layton and Francesco Martoccia wrote in a note. However, “the right strategy in this balance between geopolitical risks and loosening fundamentals is to sell any rally.”
LaToya Harding
TSM April revenue rises 60%
Taiwan Semiconductor Manufacturing Company’s (TSM) April revenue jumped nearly 60% year-on-year, as the firm rides a wave of sustained demand for the advanced semiconductors used in artificial intelligence (AI) hardware.
The world’s largest contract chipmaker said consolidated revenues for April were approximately TWD236.02bn (£5.7bn/$7.2bn), an increase of 59.6% from April 2023. This compares with a 34.3% on-year jump in March 2024.
The company is Nvidia’s (NVDA) sole manufacturer for the most advanced training chips. TSMC also fabricates semiconductors for Apple (AAPL).
Last month, TSMC announced its newest semiconductor process, advanced packaging, and other technologies for powering the next generation of AI innovations.
"We are entering an AI-empowered world, where artificial intelligence not only runs in data centres, but PCs, mobile devices, automobiles and even the internet of things," said CEO C.C. Wei.
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LaToya Harding
Rightmove: UK property sector will improve this year
Rightmove has said that the UK property market will improve this year, as customer numbers rise compared to 2023.
The UK’s largest property portal expects the number of customers to rise 2% year-on-year, compared to a previous forecast of a “slight decrease”.
It said that while ongoing high mortgage rates and long completion times on transactions continue to weigh on the market, customers are “now increasingly looking to transact”.
Sales agreed between January and April came in 17% higher than the same period last year, with 1.1 million sales forecast to take place over this year.
The company said its house price index indicates annual house price growth of 1.7%, the highest for 12 months.
LaToya Harding
Homes with investment potential
There’s a lot to consider when investing in bricks and mortar – whether you’re after a steady income stream, long-term growth or a quick profit and if you plan to live in the property while it pays its way.
Then you’ll need to research locations, rental demand and yields and crunch the numbers to ensure that income exceeds expenses by a comfortable margin. These properties could present some great investment opportunities.
Money markets have lowered the odds of the Bank of England cutting interest rates next month.
Bets on a June rate cut now stands at 48%, while there is a 52% possibility that Threadneedle Street holds rates at 5.25%.
Yesterday, the decision stood at 55% chance of a cut in June.
It comes as the BoE left rates on hold yesterday, with two policymakers voting for a cut.
Derek Halpenny, head of research for global markets at financial group Mitsubishi UFJ, said:
LaToya Harding
Lower treasury yields see gold prices surge
In early Friday trading, gold prices surged by close to 1%, buoyed by lower treasury yields and a weakened dollar.
Prices are set to conclude the week with gains following two consecutive weekly losses.
Ricardo Evangelista, senior analyst at ActivTrades, said:
LaToya Harding
Lidl announces third pay rise in 12 months
Lidl has announced that it is raising pay for the third time in a year. The German discounter is increasing pay for hourly-paid colleagues to a minimum of £12.40 across the country, up from £12.
In London, colleagues will see entry level pay rise to £13.65, up from £13.55. The new base rates equal the best hourly pay in the sector and will ensure that the discounter continues to reward colleagues with industry-leading pay.
The latest move represents an investment of over £2.5m, following a £37m investment in March 2024, as well as an £8m raise in September 2023, bringing the total investment in pay over the past 12 months to nearly £50m.
Ryan McDonnell, CEO at Lidl GB, said:
LaToya Harding
British Airways owner hails strong quarter
International Consolidated Airlines Group (IAG.L), owner of airlines British Airways and Aer Lingus, has said its earnings have soared in recent months thanks to higher sales, lower fuel costs and stronger demand.
It reported an operating profit for the first three months of the year of €68m (£58.5m), up from €9m last year.
It was boosted by increased demand over the Easter holiday and added that it was seeing strong summer bookings.
"Our transformation initiatives and increased demand, including over the Easter holidays, have delivered another very good set of results with improvement to both revenue and operating profit," Luis Gallego, chief executive, said in a statement.
He added that IAG's exposure to the Middle East was very small so it hadn't seen a big impact from the conflict there.
Shares were 1.1% higher on the back of the news.
LaToya Harding
Pound rises as UK economy grows
The pound (GBPUSD=X) is currently up against the dollar as the UK economy exited recession at the start of this year.
Sterling has risen 0.1% versus the US greenback to $1.2531, even after Andrew Bailey, governor of the Bank of England (BoE) pointed to interest rate cuts later this year.
The pound was also up 0.1% against the euro, trading around €1.162.
LaToya Harding
FTSE hits fresh high
The FTSE has reached another all-time high in London today, surging passed the 8400 point mark for the first time, hitting a new intraday high of 8431 points.
London's benchmark index has been on a strong rally since mid-April, and is on track for its third weekly rise in a row. It has gained 9.2% so far this year.
Susannah Streeter, head of money and markets at Hargreaves Lansdown, said:
Meanwhile, Victoria Scholar, head of investment at Interactive Investor, said:
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LaToya Harding
UK economy growth better than G7 rivals
The British economy has grown faster than its G7 rivals at the start of this year. Compared to the 0.6% growth recorded in January-March, here is how the others performed:
The US rose 0.4%
Germany rose 0.2%
France rose 0.2%
Italy rose 0.3%
Canada is estimated to have also grown by 0.6% and Japan is predicted to have grown by 0.2%.
Watch: How does inflation affect interest rates?
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