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London markets steady as Burberry rallies and Bank of England defends rate stance

2025/05/14/14:12
in Financial insights
Reading Time: 2 mins read
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The London Stock Exchange opened flat this morning and remained largely stable throughout the session, with the FTSE 100 edging down by 0.01% and the FTSE 250 ticking up by 0.06%. Investor sentiment appeared cautious following recent optimism around easing global trade tensions, particularly between the United States and China. Goldman Sachs raised its 12-month FTSE 100 forecast from 8,500 to 8,800, reflecting a modestly upbeat outlook.

Among standout performers, Burberry surged nearly 12% after reporting stronger-than-expected fourth quarter sales and unveiling a plan to cut 1,700 jobs globally. The announcement focused on trimming office roles, mainly in London and Leeds, in a move to streamline operations and boost profitability.

On the downside, Imperial Brands fell over 6% following the surprise retirement of Chief Executive Stefan Bomhard. Chief Financial Officer Lukas Paravicini has been named as his successor. Engineering group Spirax also saw its shares tumble by 6% as it reported pressure on profit margins due to delayed customer orders. Homebuilders and chemical firms, including Vistry Group and Victrex, registered losses of around 2–3%.

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In monetary policy, Bank of England official Catherine Mann defended her decision to vote against further interest rate cuts, citing resilience in the labour market despite signs of slight cooling. The central bank recently reduced its benchmark rate by 0.25 percentage points.

Elsewhere in corporate news, Zopa Bank raised £80 million in AT1 capital through its first bond issuance on the LSE, preparing for its forthcoming current account launch. In the AI sector, Kondor AI rebranded as Sundae Bar PLC, announcing plans for a public listing. Meanwhile, U.S.-based FirstCash revealed it will acquire H&T Group, the UK’s largest pawnbroker, marking a major move into the British market.

Several new listings were admitted to trading today, including exchange-traded products from 21Shares and Amundi, and debt instruments issued by Barclays and the Canadian Imperial Bank of Commerce.

Despite today’s muted index moves, analysts suggest that favourable global trends and select corporate strength may offer a stable platform for further growth in the coming weeks.

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