- FTSE 100 opens at new all-time high
- Entain’s CEO drama
- Tui’s strong quarter slightly dampened by softening demand
- UK retail sales top forecasts in January
- US futures dip as Trump signs in new tariffs
- OpenAI in the headlines
- Oil prices rise on supply concerns
Matt Britzman, senior equity analyst, Hargreaves Lansdown:
“UK markets are shrugging off Trump’s latest tariff storm, with the FTSE 100 rising at the open, extending gains from yesterday to reach another all-time high. But the real drama is in the boardroom – Ladbrokes owner Entain has abruptly parted ways with CEO Gavin Isaacs after less than six months in the role. Details are scarce, and while Entain used the moment to reassure investors that it’s on track to meet 2025 profit expectations, sudden leadership shake-ups rarely go down smoothly – questions will be flying.
Speaking of flying, TUI delivered a strong start to the year, with profits soaring on record performances in Hotels and Cruise, setting the stage for what should have been smooth sailing. However, while winter bookings are holding up, summer demand is showing signs of softening, with a slowdown in booking growth detracting from the strong quarter. Despite this, pricing remains resilient, and management is sticking to its full-year targets, keeping hopes high for a steady journey ahead.
The UK retail doomsday narrative just got a surprise twist with sales in January up 2.5%, far outpacing the mere 0.2% forecasted. Non-food items made a comeback from last year’s slump, while food sales slowed, leaving the UK shopping cart fuller than expected. But with an extra £7 billion of costs on the cards for retailers this year, this retail renaissance could be short lived.
US markets put on a strong show last night, but Trump’s latest round of steel and aluminium tariffs has investors bracing for impact, with futures slipping lower this morning. It’s déjà vu on Wall Street – every new tariff threat sparks trade war fears, yet history suggests these storms often blow over just as quickly as they form. But this time, the smart money isn’t so sure – currency, bond, and commodity traders are hedging their bets, sending the dollar, Treasury yields, and gold climbing as tensions heat up.
OpenAI stole the spotlight yesterday, first with news that it’s gearing up to take on Nvidia in the chip game – though whether it can truly crack the code to compete at scale remains an open question. Custom silicon isn’t new, and while Amazon and Alphabet have carved out modest successes, Meta and Microsoft have shown just how tough the chip race can be. Then came the bombshell that Elon Musk and a group of investors were eyeing a staggering $100bn bid for OpenAI – a rumour swiftly shut down by CEO Sam Altman. Tesla shares dipped, perhaps a sign that investors are starting to worry Elon’s juggling act is spreading him too thin.
Brent crude oil futures surged above $76 in early trading, pushed higher by tighter Russian supplies, new US sanctions on Iranian crude shipments, and heightened geopolitical tensions after Trump urged Israel to end its ceasefire with Hamas. Yet mounting trade frictions, tariffs on key materials, and Europe’s soaring natural gas prices are keeping broader market gains in check.“
