World food prices fall for second month running
Good news in the fight against inflation – world food prices have fallen for the second month running.
The United Nations’ Food and Agriculture Organization (FAO) has reported that world food commodity prices fell in October, adding to a drop in September, thanks to ample global supplies and
The FAO Food Price Index, which tracks a basket of globally traded food commodities, averaged 126.4 points in October, down from a revised 128.5 in September. That’s 21.1% below its record high, set in March 2022.
The FAO reports that lower price indices for cereals, dairy products, meat and sugar in October outweighed an increase in the vegetable oil index.
The report says:
The FAO Cereal Price Index fell 1.3% in October and was 9.5% lower than a year ago, with wheat price falling thanks to “ample global supplies, favourable production prospects in the southern hemisphere where harvesting is underway, and steady progress of winter wheat planting across the northern hemisphere”.
Meat prices fell 2.5% in the month, but were 4.8% higher than a year ago. October saw sharp drops in pig and poultry meat prices and a fall in ovine meat prices, partially offset by higher bovine meat quotations.
Dairy prices fell 3.4% in October, but were 2.7% higher than a year ago.Butter fell by 6.5%, due to “ample export availabilities” from the EU and New Zealand. Whole milk powder by 6.0%, skim milk powder by 4.0%, and cheese by 1.5%.
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The biggest losses were on the FAO Sugar Price Index, which dropped by 5.3% during the month and was 27.4% lower than a year ago. The drop was mainly driven by expectations of ample global sugar supplies, with favourable weather in Brazil’s key southern growing regions, and expectations of higher output from Thailand and India.
Also, lower international crude oil prices pushed down sugar prices, due to lower demand by the biofuel sector.
However, the Vegetable Oil Price Index rose 1.5% in October to its highest level since July 2022, due to higher quotations for palm, rapeseed, soy and sunflower oils.
Rightmove shares plunge after it lays out AI investment plans
At the other end of the market, shares in property portal Rightmove have plunged by over 15% this morning, after it outlined plans to invest more in AI.
Investors seem unimpressed by Rightmove’s latest trading update, in which it predicts underlying operating profit growth will slow to 3-5% in 2026, down from 4-9% in 2024 and 2025.
Rightmove insists it is delivering “strong business value” from its platform. But it is also planning to boost its investments – including rebuilding its app, and boosting its AI-powered search capabilities.
It will also add AI interfaces to its backend infrastructure, including “AI interfaces to drive efficiency, speed and value for Rightmove and its partners”.
Rightmove insists these plans will lead to higher profit growth in the long term.
Johan Svanstrom, CEO of Rightmove, said:
“AI is now becoming absolutely central to how we run our business and plan for the future. We are already working on a wide range of exciting AI-enabled innovations for the benefit of our partners and consumers, and see vast potential utilising our leading reach and connected data.
We are investing to accelerate our capabilities, which we are confident will create an even stronger platform and higher-growth business over time. We aim to further advance our leading digital position in the UK property ecosystem.”
Updated
ITV shares hit one-month high
ITV’s shares have risen to their highest level since early October.
2025 had been a tough year for the company; yesterday, its shares were down 8% since the start of January.
This morning’s 18% surge means ITV’s shares are now up almost 9% year-to-date.
ITV shares jump 18%
Shares in ITV have jumped by 18% at the start of trading in London, after it confirmed it is in talks with Sky about the possible sale of its broadcasting operations.
ITV’s shares have risen sharply to 80p, up from a closing price of 67.7p last night, making it the top riser on the FTSE 250 index of medium-size companies listed in the City.
That lifts the company’s value to around £3bn, I calculate, up from just over £2.5bn last night.
Updated
UK house prices rise at fastest pace since January
Despite pre-budget uncertainty, UK house prices jumped by 0.6% last month according to new data from lender Halifax.
Halifax reported that the value of the average UK home increasing by almost £1,650 last month to £299,862 – the highest on record. This also lifted the annual rate of hous inflation to 1.9%, from 1.3% in September.
Amanda Bryden, head of mortgages at Halifax, said:
“Demand from buyers has held up well coming into autumn, despite a degree of uncertainty in the market, with the number of new mortgages being approved recently hitting its highest level so far this year.
“There is no doubt that affordability remains a challenge for many. Average fixed mortgage rates are currently around 4% and likely to ease down further, but with property prices at record levels, moving home can feel like a stretch.
According to @HalifaxBank HPI prices rose 0.6% in October after a fall of 0.3% in September. As a result the average UK property price, on this index, is now £299,862. Rising prices have arisen from significant growth in more affordable regions. Northern Ireland is up 8%,… pic.twitter.com/bDOujI4GoM
— Emma Fildes (@emmafildes) November 7, 2025
ITV talks: What the media say
There’s lots of interest in the prospect that ITV could be split, and its broadcasting arm gobbled up by Sky.
The Financial Times suggest it could unlock value:
A split of ITV’s operations is one of a number of options that the broadcaster’s management, led by chief executive Carolyn McCall, has looked at as part of efforts to boost the value of the company.
McCall’s team believes ITV is undervalued on the stock market.
The broadcaster is being advised by banks Robey Warshaw and Morgan Stanley. Some analysts argue the value of ITV’s studio arm alone, which makes TV shows such as Love Island, could be worth as much or more than the company’s current market capitalisation.
Bloomberg say it would be a bold move by Comcast:
Doubling down on UK broadcasting would mark a gutsy bet by Comcast, which has written down the value of Sky by billions of dollars since acquiring it for $39 billion in 2018. The US company agreed in June to sell its German business Sky Deutschland for an upfront price of €150 million ($173 million), a fraction of its valuation in previous years, showing how much the market for European broadcasters has deteriorated.
Comcast’s deliberations are ongoing and may not lead to a transaction, the people said, asking not to be identified because the information is private.
The BBC throws a little shade at its broadcasting rival, suggesting a takeover could be a rescue deal!
Media analyst Ian Whittaker told the BBC that a combination of Sky and ITV would mean that had “70% plus” of the UK TV advertising market, which he said “in normal circumstances” would be rejected by regulators because of the dominance it would give them.
But he added that with questions hanging over the future of TV, a takeover could be seen as almost a rescue deal.
Comcast’s potential purchase of ITV’s media and entertainment business would not include its production arm ITV Studios.
Studios has made a number of hit shows in recent years, including Love Island, I’m a Celebrity and Mr Bates vs The Post Office.
My colleague Mark Sweney reported last night:
The performance of ITV Studios has led analysts to argue that the production arm alone could be worth more than the broadcasting business, which includes some of the UK’s most popular channels.
ITV confirms it is in talks to sell its broadcasting arm
Newsflash: ITV has confirmed that it is in talks about the posssible sale of its media and entertainment operations to rival Sky.
In a statement to the City this morning, ITV says:
ITV plc notes the recent press speculation and confirms that it is in preliminary discussions regarding a possible sale of its M&E business to Sky for an enterprise value of £1.6bn.
The statement comes hours after reports that Comcast, the parent company of Sky, was in talks to buy ITV’s broadcasting business, a move that would upend the British television landscape.
ITV cautions that a sale isn’t certain, telling the City this morning:
There can be no certainty as to the terms upon which any potential sale may be agreed or whether any transaction will take place. A further announcement will be made in due course if appropriate.
News of the possible deal came shortly after ITV reported that it would “temporarily” cut £35m from its budgets as it deals the poor macroeconomic environment and advertiser uncertainty ahead of the budget later this month.
The company said it expected advertising revenues, which still account for most of its income, to fall by 9% in the key fourth-quarter advertising period in the run-up to Christmas.
Introduction: Bank of England governor Bailey pledges to serve out full term
Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy.
Bank of England governor Andrew Bailey is pledging not to be driven out of the central bank early by Nigel Farage.
Shortly after leaving UK interest rates on hold yesterday, Bailey declared that he intends to remain governor of the Bank of England until his term expires.
Asked about suggestions from Farage that he would replace the governor, if he became prime minister, Bailey told Bloomberg TV:
“I made a commitment to serve out my whole term. That’s what I intend to do.”
Farage started a hare running about Bailey’s future last month, when he said of Bailey “He’s had a good run, we might find someone new….He’s a nice enough bloke.”
However, Farage always seemed unlikely to determine Bailey’s leadership, given the governor’s single eight-year term is due to end in March 2028 and the prime minister, Keir Starmer, is only required to hold a general election sometime before 15 August 2029.
It emerged yesterday that Bailey was the swing voter on the Monetary Policy Committee, after it split 5-4 on whether to hold interest rates at 4% or cut to 3.75%.
The agenda
7am GMT: Halifax’s UK house price index
8.30am GMT: UN FAO food price index
12.15pm GMT: Bank of England’s chief economist Huw Pill briefs the BoE’s regional agents
