Top Headlines
- Fed Cuts Rates, But Outlook Remains Cautious: The US Federal Reserve has cut interest rates by 25 basis points as expected. However, officials have signaled only one further reduction for 2026, causing some hesitation in global markets as investors digest the “higher for longer” reality.
- UK Inflation & Budget Impact: The Bank of England has told MPs that recent Budget measures are expected to reduce headline inflation by 0.5 percentage points by mid-2026. Despite this, high-risk mortgages have hit their highest level since 2008, signaling continued pressure on household finances.
- Inequality Widens: A new World Inequality Report reveals extreme wealth concentration, with the top 0.001% now holding three times the wealth of the poorest half of humanity. Economists warn this could suppress broad-based consumer spending, a key driver for SME growth.
- Netflix-Warner Bros Deal Scrutiny: President Trump has raised concerns over Netflix’s $72 billion bid to acquire Warner Bros Discovery’s studios, suggesting the resulting 30% market share could be anti-competitive.
Stock Market Movers
- Tech Stumbles on Oracle Earnings: Global tech stocks are under pressure today after Oracle released disappointing earnings, dragging down major indices.
- Apple (AAPL): Trading slightly lower in pre-market ($278.52) despite large institutional buying. Analysts remain split on the company’s AI-driven upside versus regulatory risks.
- UK Banks Rally: In London, the FTSE 100 is outperforming peers, driven by strong gains in the banking sector. Lloyds is up ~76% year-to-date, with Barclays and NatWest also posting significant gains for 2025.
- SpaceX IPO Rumors: Reports suggest SpaceX is advancing plans for a massive initial public offering (IPO) in 2026, aiming to raise over $30 billion. This potential listing is being viewed as a major confidence booster for capital markets.
Global Economy & Commodities
- Oil Prices Dip: Crude oil has weakened slightly (WTI ~$58.25, Brent ~$62) following news that the US seized an oil tanker off the coast of Venezuela, adding a layer of geopolitical complexity to supply forecasts.
- Global Trade Growth: The UN Trade and Development body (UNCTAD) forecasts global trade will hit a record $35 trillion in 2025, driven largely by a 7% surge in trade flows, although momentum is expected to slow heading into 2026.
- Gold & Silver: Gold remains rangebound around $4,220/oz, struggling to reclaim October highs. Silver, however, has rallied over 2% to record highs, driven by speculative inflows and industrial shortage concerns.
Company Watch
- Jamie’s Italian Returns: Six years after its collapse, Jamie Oliver’s restaurant chain is set to return to the UK high street next year, backed by new investors.
- Softcat & Trustpilot: Directors at both FTSE 250 firms have been buying up shares in their own companies, a signal often interpreted as insider confidence in future performance.
