Proactive Investors -
- FTSE 100 rises 31 points
- Haleon (LON:HLN) falls after Pfizer (NYSE:PFE) sells £2.4bn of shares
- Greggs (LON:GRG) reports slower rate of growth
- UK retail price deflation at steepest in three years
Vapes close to overtaking ciggies in UK
Numbers of UK smokers has fallen to the lowest level since records began, according to research released today by the Office for National Statistics, with numbers of vapers almost catching up.
Around 6.0 million people aged over 18 cigarettes in the UK last year, about 11.9% of the total, based on ONS estimates from the annual population survey.
The largest reduction in smokers was among those aged under 24, which fell to 9.8% from almost 26% when records began in 2011, while those aged 25 to 34 years had the highest proportion of current smokers at 14%.
Use of disposable vapes and other reusable e-cigrattes rose to around 5.1 million adults aged 16 years and over, or around 9.8% of the total, based on regular or occasional use.
It will not surprise many to hear that e-cigarette use was highest among people aged 16 to 24, with 15.8% using e-cigarettes either daily or occasionally.
Shares in cigarette makers British American Tobacco PLC (LON:BATS) and Imperial Brands PLC (LON:IMB) are little moved this morning, up 0.6% and down 0.7% respectively.
Eurozone inflation could see ECB step up pace of rate cuts
The euro-zone inflation reading was weaker than most analysts had expected, though a bounce back in the fourth quarter has been expected, says Bert Colijn, economist at ING.
He notes that the ECB knew that this inflation print would come in weak as President Christine Lagarde alluded to it at the September press conference.
The question is, says Colijn, whether the Q4 inflation rebound will materialise as petrol prices have been dropping quickly on the back of falling oil prices.
"With core inflation slowly dropping at this point, it looks like the 2% target in the medium term is achievable," he says, with recent survey data confirming slowing selling price expectations from businesses as demand weakens from an already modest pace in the second quarter.
"Since the summer, concerns about inflation have made way for concerns about economic growth," says Colijn.
"As the ECB seems quite convinced that inflation is on track towards 2%, the question is now how fast it wants to move interest rates back to neutral. If it keeps interest rates restrictive for too long with the economy already slowing, it risks pushing inflation below its 2% target.
"With growth under pressure now, it seems that the door is open for the ECB to move faster. While it does not seem like a done deal, it does bring the October meeting into play for a possible step up in easing."
Oil falls despite fighting in Lebanon
Oil prices are falling further despite reports of intense fighting in southern Lebanon, following the launch of a ground offensive by Israel.
Brent crude front-month futures prices are down 2.2% to $70.10 per barrel, while the US gauge, West Texas Intermediate, is down 2.4% at $66.53.
Analysts at Goldman Sachs (NYSE:GS) said the fall in oil prices was due to "softer realised and expected demand" from China and better than expected oil inventories.
Fiona Cincotta at City Index said prices were lower as the "prospect of increased supply from OPEC+ offsets supply concerns in the Middle East", with the oil producers cartel expected to gradually unwind some production cuts starting in December, raising concerns about an oversupplied market next year.
"Tensions in the Middle East are ramping up, which is offering some support to oil prices. However, given that oil production hasn't been materially affected yet, the risk premium on oil remains relatively low.
"This could change, and the risk of supply disruption would increase dramatically if Iran became more directly involved."
Gold prices picked up, though, from a week's low of $2,627 overnight to $2,648.
John Lewis sees swarm of customers after famous pledge returns
John Lewis has enjoyed a quick customer response to the return of its 'never knowingly undersold' pledge, with online and store sales both picking up “aggressively”, according to an interview given to a trade magazine.
Since a series of new ads featuring the slogan launched last month, the John Lewis website received an extra 89,000 visits per day through natural traffic, executive director Peter Ruis told Retail Week.
John Lewis said last month that the pledge will return after being ditched in 2022, with artificial intelligence used to match prices against 25 rival retailers, including M&S, Currys (LON:CURY) and House of Fraser, while also applying to online sales for the first time, having just covered in-store items before.
Euro-zone inflation falls below 2%
Eurozone inflation came in lower than expected for last month on an annual basis, with the consumer prices index actually falling month-on-month.
CPI was up 1.8% in September 2024 versus a year ago, down from 2.2% in August and in line with estimates from economists.
This followed the euro area CPI falling 0.1% from a month ago, following a 0.1% previous monthly move, while the market had expected a flat reading.