- UK markets open flat, while US futures point to a positive open
- UK pay growth at its highest level in six months
- Banks receive a helping hand in the motor finance debacle
- Tritax makes moves in the data centre world
- Bitcoin traders take some profit
- Oil prices steady, awaiting Trump action
Matt Britzman, senior equity analyst, Hargreaves Lansdown:
“UK markets are feeling their way tentatively through the first day of a Trump Presidency, with the FTSE 100 opening flat, taking cues from across Europe. US markets were closed yesterday, but futures suggest investors had a positive reaction to Trump’s inauguration speech and his string of day-one executive orders.
Wage growth in the UK has hit a six-month high, driven by strong private sector pay growth, creating a solid foundation for consumer spending in 2025. Real wages, up 2.5% after inflation (excluding bonuses), are boosting household spending power – a positive for retailers and the broader economy. While rising wages reignite inflation concerns, softening unemployment figures and expectations of a downward trend in pay from here suggest the Bank of England is still on track to cut rates in February.
The UK government’s backing in the motor finance case is a clear positive for Lloyds, the bank most exposed to the issue, with shares popping 5% as a result. By urging the Supreme Court to adopt a fair and measured approach, the Treasury is helping to ease fears of hefty penalties, potentially softening the financial blow for lenders. While Barclays has less exposure and NatWest none, the government’s bank-friendly stance should help lift confidence across the sector.
Tritax’s move into the data centre market marks a significant step in aligning with the AI and digital transformation trends, capitalising on the surging demand for cloud computing infrastructure. The 147 MW project at Heathrow leverages a strategic joint venture to address the critical challenge of securing sufficient grid power, a major barrier to data centre development. With a pipeline exceeding 1 GW of future opportunities, Tritax is positioning itself as a key player in a rapidly evolving and essential industry, underscored by its ability to unlock high-value land, with access to power, in prime locations.
Bitcoin pulled back from record highs, but held steady above the $100,000 mark. The retreat looks like little more than profit-taking after its recent rally, with traders balancing optimism over growing institutional adoption against caution around regulatory uncertainties. Despite the dip, sentiment remains strong as the market eyes more favourable conditions with Trump in office. Given the launch of ‘his’ and ‘hers’ meme coins in recent days for the Trumps, the crypto bulls will be expecting more to come in 2025.
Brent crude oil prices steadied around $79 a barrel, as markets reacted to President Trump’s string of executive orders. Tariffs are on the cards, but there wasn’t any specific mention of China, the world’s top oil importer. Even so, traders remain on edge, awaiting further details on both tariffs and potential sanctions targeting major oil exporters like Russia, Iran, and Venezuela.”
