UK retail sales experienced an unexpected uptick in September, rising by 0.5% month-on-month and 1.5% year-on-year, defying economists’ forecasts of a 0.2% monthly decline. The Office for National Statistics attributed the growth to strong performance in tech and non-food sectors, whilst online jewellers also saw increased sales amid record-high gold prices. In other UK economic data announced this week, inflation remains stubbornly above the Bank of England’s 2% target, at 3.8% for September. The persistence of inflation continues to challenge policymakers and consumers alike. However, as the inflation figure was lower than the 4% predicted, Gilts rallied as traders increase their bets the Bank of England will cut interest rates again before the end of the year.
In other UK economic data announced this week, inflation remains stubbornly above the Bank of England’s 2% target, at 3.8% for September.
In corporate news, Lloyds Banking Group reported a 36% drop in third-quarter profits, posting £1.17bn in pre-tax earnings, impacted by an £800mn charge related to the car finance mid-selling scandal. Despite the hit, the result exceeded analyst expectations of just over £1bn. Meanwhile, NatWest Group’s share price hit a 15-year high at 583p this morning, buoyed by strong Q3 performance and stable customer activity. CEO Paul Thwaite highlighted continued lending growth and deposit stability, reinforcing the bank’s strategic momentum.
Lloyds Banking Group reported a 36% drop in third-quarter profits, posting £1.17bn in pre-tax earnings, impacted by an £800mn charge related to the car finance mid-selling scandal.
Across the pond, Tesla reported its third-quarter results with record-breaking revenue of $28.1bn, thanks to strong sales of electric vehicles and energy products, as the company delivered more cars than ever and expanded its energy storage business. However, profits came in lower than expected, with operating margin having nearly halved to 5.8%. The share price dropped 3.5% in after-market trading.
Our specialist's final thought
"While production costs fell slightly, new tariffs and increased spending plans raised concerns among investors. Operating expenses rose by 50% to $3.4bn as Elon Musk’s AI ambitions have started repositioning the company towards autonomous driving and robotaxis."
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