Proactive Investors -
- FTSE 100 up 40 points at 7,673
- Shop price inflation at lowest since May 2022
- Diageo (LON:DGE) reports lower half-year sales and profit
IMF calls on UK not to cut taxes
The IMF has warned UK chancellor Jeremy Hunt against cutting taxes, an untimley intervention ahead of the budget in early March.
Instead of tax giveaways, the IMF argues the UK needs to curb public borrowing, rebuild its fiscal buffers, and prioritise spending in areas such as health, education and tackling climate change.
Pierre-Olivier Gourinchas, IMF chief economist, told the Financial Times the UK’s focus should be on “the path towards a fiscal consolidation” despite expectations that Hunt will cut taxes at his spring Budget.
Gourinchas said: "We would rather wish they would not do this type of tax cuts, and that they would instead focus on both addressing the spending needs and on the path towards a fiscal consolidation.”
Here’s a recap of the top risers and fallers on the market today
Shares in Microlise Group PLC (LON:SAAS), the transport software company, jumped 22% after its full-year results came in ahead of market expectations.
Revenues for the 2023 financial year are now expected to grow 13% to close to £72 million while underlying earnings are forecast to rise 14%, a trading update revealed.
Location Sciences Group PLC (LON:LSAI) jumped 2% as it published details of its reverse takeover (RTO) by e-commerce tracking software specialist Sorted.
The business will be called Sorted Group Holdings going forward with a new management team comprising Carmen Carey as chief executive and Mahmoud Warriah as CFO alongside Petar Cvetkovic as a non-executive director.
Flowtech Fluidpower slipped 3% as it reported lower sales in its latest financial year and cautioned the engineering sector backdrop currently is subdued.
Luceco (LON:LUCEL), the lighting company, fell by over 7% despite reporting guidance-beating full-year results.
One area attracting negative attention is the overall repair, maintenance and improvements market, which is said to be remaining “challenging” despite consumer confidence improving.
UK's CMA begins probe into loyalty pricing by supermarkets
The UK competition watchdog is reviewing whether supermarket loyalty pricing misleads or disadvantages shoppers.
The Competition & Markets Authority said the increase in some supermarkets making cheaper prices only available for loyalty card members has led to it examining the practice as part of its work to help tackle cost-of-living pressures in the groceries sector.
It said it will consider whether any aspects of loyalty pricing could mislead shoppers – for example, whether the loyalty price is a genuine promotion or as good a deal as presented – and whether any groups of shoppers are disadvantaged by the promotions.
It will also look at whether loyalty pricing is affecting consumer behaviour, and whether this has an impact on how supermarkets compete with each other.
The CMA said it will publish an update on its work in July, and expects to complete the review by the end of the year.
IAG, builders hit by downgrades
British Airways (LON:ICAG) owner, IAG, is down 1.3% after Morgan Stanley (NYSE:MS) downgraded the stock to 'underweight' from 'equal weight.'
The bank has moved Deutsche Lufthansa (ETR:LHAG) the other way to 'equal weight' from 'underweight' and raised its price target to €9.80 from €6.70.
Elsewhere, Bank of America (NYSE:BAC) has upgraded Taylor Wimpey (LON:TW) to 'buy' from 'neutral' but downgraded Persimmon (LON:PSN) to 'neutral' from 'buy' and cut Barratt Developments (LON:BDEV) to 'underperform' from 'neutral'.
Barratt is down 1.4% and Persimmon 1.0%.