The FTSE 100 is rising on Monday morning after some mixed US data and market movements at the end of last week. Eyes on this side of the water will be on the end of the week, when the latest GDP figures emerge as Rachel Reeves and co seek some positivity after another difficult week culminated in the departure of Angela Rayner.
In business, Jaguar Land Rover could see the cyber hack they suffered have an impact through until October, while the likes of Primark and John Lewis will be the midweek focus as their companies release financial results.
Meanwhile, redundancies mean the number of jobseekers is rising at the fastest rate in years, partly due to the rising cost of employing people for businesses and also with fewer entry level jobs being on the market as AI begins to impact.
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Key points
- FTSE 100 rises and European stocks surge early on
- Double boost for London Stock Exchange with one IPO and one jump from AIM
- Jaguar Land Rover profits hit to tune of £5m a day after cyber attack
- Rising mortgages and slowing pay growth signal concerns for Labour and housing market
FTSE 100 drops, US stocks rise
16:08 , Karl MatchettA final check-in on the stock markets before we close down for the day.
The FTSE 100 was up for most of today but dropped in the past hour so back down to basically flat - it’s at 0.01 per cent up shortly before closing time.
Over in the US there’s still a positive reading to the market.
The Nasdaq is up 0.78 per cent, the S&P 500 is up 0.37 per cent and the Dow is up 0.2 per cent.
Business and Money live - 8 September
08:01 , Karl MatchettMorning all and welcome to our first business and money live blog of the week.
Today we’ll look at the stock market, savings options and more, but first we’ll start with mortgage rates heading back up after several months dropping to below 4%.
FTSE 100 rises, European markets strong
08:19 , Karl MatchettThe FTSE 100 has started the week in positive fashion, rising 0.2 per cent this morning.
Out in front first thing is Marks & Spencer, the retailer up more than 3 per cent in early trading.
In France, there has been a lot of discussion about the state of their economy recently - the CAC 40 is up 0.5 per cent in a move mirrored across most of Europe.
Germany’s DAX is up 0.7 per cent with the Euro Stoxx 50 up 0.55 per cent.
Number of job hunters rises at fastest rate since Covid
08:30 , Karl MatchettRecruiters have observed the steepest increase in available job candidates in nearly five years, a new report reveals.
The figures have been driven by rising redundancies and fewer employment opportunities.
This surge coincides with starting salary growth easing to its slowest pace in four-and-a-half years.
New IPO for London Stock Exchange
08:45 , Karl MatchettProject Glow Topco Limited, the ultimate holding company of The Beauty Tech Group Limited, announced their intention to join the main market of the London Stock Exchange.
The firm owns a range of at-home self care products which are tech-led. Last year the group reported revenue of £101.1 million.
“There are significant opportunities ahead for us and an IPO on the London Stock Exchange will provide us with access to capital, and enable us to raise awareness and incentivise staff to take the business to the next level,” said Laurence Newman, Founder and CEO of The Beauty Tech Group.
“I am very excited to embark on this next chapter as we look to build on our position as a trusted and recognised leader in the market.”
Mining firm aims to leap from AIM to main market
09:00 , Karl MatchettMore market movement now and another gain expected for the main market on the London Stock Exchange.
Pan-African is a £1.4bn miner which is currently listed on the AIM, but now they intend to switch to the main. Their market cap would see them placed in the FTSE 250 - a similar size to Wizz Air or Curry’s, for example.
Cobus Loots, Pan African’s CEO, said:
“Our proposed listing on the Main Market of the London Stock Exchange represents a natural continuation of Pan African’s growth. Over the last decade, we have consistently grown both organically and through acquisitions whilst returning capital to our loyal shareholders. We are currently benefitting from the strong gold price environment which we expect will enable us to be fully de-geared (from a net debt perspective) during the course of FY26. We believe the proposed move from AIM to the Main Market will enable us to access a deeper pool of capital and enhance liquidity for the group as we continue our ambitious growth strategy.”
Biggest student loan on records nearly £300,000 - millions owe over £50,000
11:00 , Karl MatchettMore than 2.6 million people have an outstanding UK student loan balance of over £50,000, according to data obtained from the Student Loans Company (SLC).
As of August 10 this year, the highest student loan balance on records was £299,645, according to figures obtained from the SLC following a freedom of information (FOI) request from Compare the Market.
Some 2,652,997 student loan customers had an outstanding balance of more than £50,000, the SLC said.
Biggest student loan on records nearly £300,000 as 2.6m people owe over £50,000
JLR set for more disruption after hacks
11:27 , Karl MatchettJaguar Land Rover could face at least another month of disruption as a result of the cyber hacks, one report states.
The Times write today that the company computer system is currently almost “useless” meaning that JLR are “without the ability to perform diagnostic tests”.
Services cannot be undertaken on cars therefore and the report says it will be “weeks” rather than days to fix matters.
£5m a day is the figure being put on the cost to profits while they fight the issue.
Mortgage deals lasting only 17 days - and best deals may have gone
11:39 , Karl MatchettIf you’ve been waiting to snap up a new mortgage deal (or complete on a house move) for improved rates, you might be disappointed.
Moneyfacts data shows mortgage deals were only on the market for an average of 17 days before being altered - and with swap rates now rising, the sub-4% battle looks to be over for now and some lenders have increased rates on their products already.
Affordability rules have been relaxed though so it’s worth checking in to see if your circumstances mean you can get a deal you couldn’t do previously, says Rachel Springall, finance expert at Moneyfacts.
“First-time buyers may feel it’s not quite the right time to get a mortgage if they are struggling with the cost of living. However, lenders have been relaxing their stress testing over recent weeks by boosting loan-to-income multiples, so some buyers might be surprised to find they could now get their first foot on to the property ladder. Affordable housing remains a key issue, so there is always more room to help first-time buyers, who remain the lifeblood of the mortgage market.”
Four lenders who have raised mortgage rates
12:00 , Karl MatchettIt’s a tricky time if you’re looking for a good mortgage rate with several lenders changing the deals upwards as of today.
- Halifax is raising fixed rates for homemover and first-time buyers products by up to 0.15%
- BM Solutions is raising rates on buy to let products fixed rates by up to 0.09%.
- The Mortgage Works has increased some five-year fixed rate buy to let products by up to 0.19%.
- HSBC are upping rates on some of their selected products too.
If you’ve been due for a remortgage deal, might be time to look at locking one in now.
Insurer Phoenix changing name to Standard Life next year
12:30 , Karl MatchettInsurer Phoenix Group has revealed plans to change its name to Standard Life as it looks to “bring its most trusted brand to the forefront”.
The firm – which has around 12 million customers and manages over £295 billion in assets under administration – said it would rename the group in March next year.
It comes after Phoenix bought the Standard Life brand in May 2021 following its purchase of Standard Life Aberdeen’s insurance arm in 2018 for £3.28 billion.
More here:
New product makes private investment accessible in pensions
13:00 , Karl MatchettHargreaves Lansdown are to make it possible for those investing in SIPPs to access private markets for the first time.
Two Long-Term Asset Funds will be made available in partnership with Schroders so that investors can buy into the funds which focus on unlisted assets.
It should go live from mid-September and clients can invest if they have a minimum of £10,000 to put in.
SIPPs have significant tax relief advantages, while private market assets are typically less-liquid and can carry more risk for investors than some stock market-based assets.
US stocks set to open higher
13:30 , Karl MatchettUS stock markets are up in pre-trading, with the Nasdaq set to rise as much as 0.4 per cent when markets open soon.
The S&P 500 is slightly lower but still in the green to the tune of 0.26 per cent ahead of opening.
That comes as bets over a rate cut from the Federal Reserve continues to grow - lower interest rates typically see other riskier assets rise in price as their attractiveness grows for better returns.
Low-deposit mortgage choice ‘hits 17-year high’
14:00 , Karl MatchettThe number of low-deposit mortgages on the market has reached a 17-year high, according to a financial information website.
Moneyfacts counted 1,360 mortgage products requiring deposits of 5% or 10% in September – marking the highest total since 1,532 options in March 2008.
The low-deposit deals now make up around a fifth (19%) of the homeowner mortgage market overall, its analysis found.
Lower deposit deals are often used by first-time buyers to get onto the property ladder.
Rising mortgage rates signal fresh battle for homeowners ahead of Reeves’ Budget
14:36 , Karl MatchettInterest rates on some of the most competitive high street mortgage deals have risen in a fresh blow to homeowners and buyers.
HSBC and Halifax are among the lenders that have raised rates on some of their deals amid a “fraught political and economic climate”, with more expected to follow suit. One expert has urged buyers to “grab” any sub-4 per cent deals before they disappear entirely.
It will be seen as a fresh blow to Labour as the government hopes to improve consumer confidence and boost the UK economy ahead of Rachel Reeves’ Budget.
Rising mortgage rates signal fresh battle for homeowners ahead of Reeves’ Budget
Reach publisher to cut up to 600 jobs including editorial
15:00 , Karl MatchettReach, the publisher brand which owns the likes of the Mirror, Liverpool Echo, Birmingham Mail, the Express and other titles, is putting 600 jobs at risk in another round of redundancies.
A total of 321 editorial redundancies are expected, the group said, with staff in commercial and production also at risk.
It’s the latest push from Reach to deal with a strategy switch focusing on digital subscriptions, video and live news networks, with sports getting a central hub for content across their pages.
“Yet again, morale is being dragged down by the threat of mass redundancies,” said Chris Morley, the NUJ’s national coordinator for Reach. “The thought that any media business can afford to shed hundreds of talented journalists to secure its future makes you wonder what sort of future that will be.”
Volkswagen say tariffs have already cost billions
15:20 , Karl MatchettOne of Europe’s major car manufacturers, Volkswagen, says Donald Trump’s tariffs have already cost billions of euros.
Chief Executive Oliver Blume told Reuters that VW - which includes Audi and Porsche brands - are set to consider bigger US investments in a bid to offset import costs.
Auto tariffs from the EU to the US are at 27.5 per cent, due to lower to 15 per cent.
