Aarin Chiekrie, equity analyst, Hargreaves Lansdown:
“The FTSE 100 opened broadly flat this morning, after hitting record highs yesterday. The muted start to Friday’s trading comes despite UK Retail Sales landing much better than expected, up 0.5% month-on-month, and marking the fourth month in a row of strong sales. Markets had been predicting a 0.2% decline, but rising real wages and a steadying house market are helping to drive an uplift in overall consumer spending.
Pet healthcare company CVS Group has announced its intention to step off AIM and move to the main market. The news follows last week’s long-awaited provisional decision from the Competition and Markets Authority (CMA), which had been looking into the sector amid concerns about pricing and ownership disclosure. The CMA’s proposed remedies focused on improving price transparency for pet owners, with little in the way of price controls and no suggestion of a break-up of the group. The move to the main market should give CVS Group access to deeper pools of capital and increase trading liquidity, and is expected to be completed early in 2026, subject to FCA approval. To sweeten the announcement, CVS noted that positive sales momentum has continued into its new financial year, giving management the confidence to announce a new £20mn share buyback programme, worth around 2% of the company value.
US stock futures edged higher this morning as investors brace for a crucial inflation report, which could shape the outlook for the economy and interest rates. The report, delayed by the ongoing US government shutdown, is expected to show that consumer prices have worsened in September for the second straight month, as Trump’s tariffs have lifted the cost of some groceries and other goods.
Gold prices have continued their downward slide this week, falling below $4,100, and are on track to end their nine-week winning streak. The decline stems from heavy selling as traders look to take profits after the yellow metal repeatedly hit record highs in recent weeks. Still, gold remains up around 55% this year, so investors won’t be too disheartened by this week’s relatively modest decline.
Brent Crude prices have moved up to a two-week high of around $66 per barrel as fresh US sanctions on major Russian producers have once again stoked supply concerns. Washington has blacklisted state-run oil giants Rosneft and Lukoil, which account for nearly half of Russia’s exports and are vital to funding the Kremlin’s budget. The move comes as the US looks to heap more pressure on Moscow over the war in Ukraine, and early reports suggest that China and India are taking heed of the sanctions.”
Matt Britzman, senior equity analyst, Hargreaves Lansdown:
“NatWest delivered a strong set of results, comfortably beating expectations with profits about 10% ahead of consensus. The good news was broad-based: revenues were higher, costs were lower, and even loan impairments came in better than feared. Net interest margins – a key measure of how much banks earn on lending – held up well, and management has enough confidence to nudge full-year guidance higher once more. Even so, that upgrade still feels a touch cautious given the margin strength, leaving room for more upside if trends continue.
This is another reminder that UK-focused banks are quietly performing better than many give them credit for. Lloyds showed similar resilience recently, though its motor finance charge muddied the picture. Strip out the noise, and both lenders are proving they fully deserve their improving valuations. For investors, these results reinforce the idea that the domestic banking story still has more room to run.”
