Royal Mail has been fined £21 million for missing its annual first and second class mail delivery targets.
Outsourcer Capita was also hit with a big fine after hackers stole 6.6 million people’s information during a cyber attack in 2023.
The FTSE 100 index faded despite a strong session for luxury goods stocks including Burberry.
FTSE 100 Live Wednesday
- CMA unveils vet reforms
- Capita cyber hack penalty
- Royal Mail fined
Market update: Burberry leads FTSE 100, British Land up 5% on update
10:17 , Graeme EvansBurberry and Watches of Switzerland today surged in the FTSE 350 index after sentiment in the luxury goods sector was given a major boost by LVMH.
The owner of brands including Dior, Louis Vuitton, Moet-Hennessy and Bulgari followed two quarters of contraction with a surprise 1% rise in third quarter sales.
It fuelled hopes of a recovery in demand from China by reporting an improvement across all its business groups and all regions with the exception of Europe.
LVMH shares jumped 14% in the Cac40, which posted a wider rally of 2.6% after France’s Prime Minister put pension reform on hold until after the 2027 election.
In contrast, the FTSE 100 index faded after a strong start to stand 27.86 points lower at 9424.91.
AstraZeneca and GSK weighed with falls of 194p to 12,544p and 21.5p to 1616p respecitvely, while other defensive plays including BAE Systems and Imperial Brands also struggled.
Ladbrokes owner Entain dropped 2.5% or 21p to 818.4p as a run of customer-friendly sports results led to slower growth over the summer.
Burberry shares jumped 7% or 78p to 1239p, a rise of 90% since April as hopes build that interim results on 13 November will show further progress in the turnaround strategy of CEO Joshua Schulman.
Rolex and Cartier retailer Watches of Switzerland also rose 4% or 16.9p to 395.7p in the FTSE 250 index.
Diageo, whose portfolio includes Johnnie Walker whisky and Don Julio tequila, failed to benefit from the luxury goods sector revival.
Its shares only edged up 3p to 1773.5p after LVMH said trade tensions weighed on wine and spirits demand in its key markets of the US and China.
Elsewhere in the FTSE 100, Land Securities rose 3% or 19.5p to 629.5p after property sector confidence was lifted by the outlook guidance of British Land in its half-year update.
The FTSE 250-listed company rose 5% or 16.4p to 379p as it reported 4% like-for-like rental growth and strong occupancy trends, including at its London campuses.
It now expects earnings per share growth of "at least 6%" in the 2026/27 financial year, compared to previous guidance for the top end of the 3%-6% range.
Chief executive Simon Carter said: “Office attendance is accelerating, retailers are expanding out of town, and supply remains very constrained across both markets.”
Other risers in the FTSE 250 included Pets at Home, which benefited from the removal of uncertainty after the Competition and Markets Authority laid out its 21 recommendations for tackling excessive prices in the veterinary services sector.
The regulator, which began its investigation in September 2023, said average vet prices across the market rose by 63% between 2016 and 2023 – well above the rate of inflation.
Pets at Home shares rose 5% or 9.8p to 225.8p, while AIM-listed operator CVS lifted 3% or 47.6p to 1447.6p.
FTSE 100 fades, Burberry shares jump 7%
08:41 , Graeme EvansThe FTSE 100 index is unchanged at 9452.09 after surrendering gains earlier in the session.
Burberry led the top flight as its shares surged 7% or 80p to 1241p, boosted by the read across to figures showing a 1% quarterly sales increase by LVMH.
Paris-listed LVMH jumped 12% following its better-than-expected update, which included signs of a recovery in China trading.
The shares of Ladbrokes owner Entain fell back 2% or 14.6p to 824.8p following its trading update. Other fallers included AstraZeneca and GSK after 1% declines.
In the FTSE 250 index, British Land rose by 4% or 16.4p to 379p after shares were lifted by the company’s half-year trading update.
Vet chains targeted in CMA pricing reform, shares rise
08:21 , Graeme EvansPlans for a major overhaul of the veterinary services market were today revealed in a bid by the Competition and Markets Authority to tackle excessive charges.
The regulator has proposed 21 measures to help consumers get better deals when they take their unwell pets for treatment.
The CMA carried out a two year investigation into a sector that has seen huge consolidation in recent years.
Six large groups - owned by CVS, IVC, Linnaeus, Medivet, Pets at Home and VetPartners - now dominate the sector with small independent vets in a minority.
Average vet prices across the market rose by 63% between 2016 and 2023 – well above the rate of inflation. The CMA also found that pet owners pay 16.6% more on average at large vet groups than at independent vets.
The London-listed shares of Pets at Home and CVS rose by about 3% today.
Capita fined over 2023 cyber attack
07:41 , Graeme EvansOutsourcer Capita has been fined £14 million by the Information Commissioner’s Office (ICO) for failing to protect personal data after hackers stole 6.6 million people’s information during a cyber attack in 2023.
The data watchdog said the breach in March 2023 saw the hackers access information including pension details and staff records, as well as details of customers of organisations Capita supports.
The ICO fined Capita £8 million and Capita Pension Solutions a further £6 million.
Royal Mail fined after missing delivery targets
07:26 , Graeme EvansRoyal Mail has been fined £21 million for missing its annual first and second class mail delivery targets, regulator Ofcom has said.
It represents the third-largest fine ever imposed by the communications watchdog.
The group delivered 77% of first class mail and 92.5% of second class mail on time during the 2024-25 financial year, Ofcom found.
This was short of its respective 93% and 98.5% targets.
Ladbrokes owner Entain backs 2025 guidance
07:21 , Graeme EvansLadbrokes owner Entain today reiterated full-year expectations, despite the impact of customer friendly sports margins in September.
Guidance for underlying earnings remains within the range of £1.1 billion and £1.15 billion, including for online net gaming revenues growth of 7%.
Entain’s US joint venture BetMGM yesterday disclosed it traded ahead of expectations in the third quarter, meaning it is now set to deliver net revenues of at least $2.75 billion and earnings of about $200 million.
Entain chief executive Stella David said the company’s transformation “continues at pace”.
She added: “Whilst we still have more to do, our Q3 performance is further evidence of the quality of our diverse business and its underlying momentum.”
UK & Ireland net gaming revenues rose 8% in the quarter, reflecting 15% online growth and 2% in the retail estate.
FTSE 100 seen higher, gold price rise continues
07:00 , Graeme EvansThe FTSE 100 index is seen opening 0.4% higher, fuelled by a positive session for markets in Asia.
Tokyo’s Nikkei 225 rose 1.8% and the Hang Seng index lifted 1.4% despite a mixed handover from Wall Street.
The Dow Jones Industrial Average advanced 0.4% on the back of strong banking results, whereas tech weakness contributed to a fall of 0.2% for the S&P 500 index and 0.8% reverse for the Nasdaq Composite.
The FTSE 100 last night closed 9.90 points higher at 9452.77, despite a poor performance by stocks in the mining sector.
The gold price today lifted another 1% to $4188 an ounce while Brent Crude eased to $62.21 a barrel.
