4.01pm: FTSE 100 off the mark late on
London’s blue chips headed for a second consecutive decline as Tuesday’s close drew near.
Come late trading, the FTSE 100 was off 22 points at 8,561, led lower by Vodafone Group PLC (LON:VOD), which dropped 7.2% on news of mounting woes within its German business.
Entain PLC continued to lead the risers on the index, jumping 6.2% after flagging subsidiary BetMGM expected to turn a profit over the coming year.
Marks and Spencer (LON:MKS) Group PLC was also among risers following figures from Kantar suggesting strong trading had continued after the key Christmas period into the new year.
London’s mid caps also faced falls on Tuesday, with the FTSE 350 down 11 points at 4,698.
The junior market gained in the meantime, with the AIM all-share just above the mark at 712.
Staffline Group PLC headed the small-cap risers, up 30.9% on a trading update, while Gaming Realms PLC also remained among winners after results.
3.02pm: Nasdaq, S&P tick up in mixed start on Wall Street
Wall Street faced mixed fortunes as trading got underway on Tuesday under an ongoing cloud of uncertainty around US-Chinese trade relations.
The Nasdaq ticked up 0.4%, regaining slightly after shedding 1.2% on Monday, while the S&P 500 opened flat and Dow Jones dropped a further 0.1%.
Focus remained on Donald Trump’s tariffs after deals saw US measures against Mexico and Canada pushed back for a month, but China respond with levies of its own.
Alphabet (NASDAQ:GOOGL) Inc’s Google, Nvidia Corp (NASDAQ:NVDA) and Intel Corp (NASDAQ:INTC) were also reportedly among companies facing investigation in China as the trade spat intensified.
Shares in both Alphabet and Nvidia headed higher early on though, while Intel slipped 0.4%.
Palantir Technologies Inc (NASDAQ:PLTR) topped the S&P 500 and Nasdaq’s risers in the meantime, jumping 24.5% after expectation-beating fourth-quarter figures… Read more
Estee Lauder Companies Inc (NYSE:EL) was among fallers, dropping 12.0% on plans to double job cuts to as many as 7,000 worldwide in preparation for the impact of tariffs.
Merck (NSE:PROR) & Co Inc also shed 11.2% on news of lower Gardasil vaccine sales and also plans to halt shipments of the drug to China, which it blamed on the likes of low demand.
2.28pm: China reportedly revives Nvidia probe, targets Intel in US trade spat
Chinese authorities have reportedly revived an investigation into Nvidia Corp as trade tensions mount with the US.
Reports earlier in the day had said China was probing Google among a string of companies as 10% tariffs, firmed up by Donald Trump at the weekend, came into force... Read more
According to the Financial Times, a probe previously launched in December against Nvidia was now also set to be revived.
A formal probe into Intel Corp was said to be under consideration too, with sources adding the decision could be affected by the state of US-Chinese relations.
Intel shares were down 1% in pre-market trading, while Nvidia and Google owner Alphabet Inc were flat.
1.40pm: Entain heads risers as FTSE 100 looks to regain
Entain PLC was firmly ahead of Tuesday’s FTSE 100 risers, having gained 9.5% after highlighting expectations from subsidiary BetMGM of profitability this year.
Though losses before interest, taxes, depreciation and amortization widened from US$62 million to US$244 million in 2024, a positive figure was expected this year, BetMGM said.
Revenue, having climbed 7% to US$2.1 billion over the year, was guided to sit between US$2.4 billion and US$2.5 billion in the meantime.
Entain led the likes of Marks and Spencer Group PLC, J Sainsbury PLC, International Consolidated Airlines Group (LON:ICAG) SA and easyJet (LON:EZJ) PLC among the risers as a result.
Supermarkets were buoyed by figures from Kantar earlier on showing improving turnover across the sector recently, while lower oil prices aided airline shares.
Come the afternoon, benchmark Brent crude was trading at US$74.54 a barrel, against Monday’s peak of US$76.88, as US tariffs on Mexico and Canada were delayed.
Vodafone Group PLC continued to head the fallers, dropping 6.9% after detailing worsening trading across its German division.
The FTSE 100 regained to sit 10 points lower at 8,573, as mid and small caps also remained off the mark.
Gaming Realms PLC was among the junior market risers, gaining 6.1% after hailing solid trading at the back-end of 2024 and into early 2025… Read more
12.39pm: Diageo (LON:DGE) figures hard to read on tariff threat - analysts
Diageo PLC’s interim figures have been dubbed hard to gauge after the drink firm pointed to uncertainty around tariffs under Donald Trump and scrapped medium-term guidance.
Despite organic sales and earnings growth beating consensus estimates over the first half to December, Barclays (LON:BARC) analysts noted it was “hard to make a firm conclusion” from the results.
On the positive side, four out of five divisions are in growth, with strong momentum in some key brands,” Barclays continued.
“On the flip side, the guidance has been withdrawn and consensus is being downgraded, which could either be interpreted as increased market uncertainty coupled with structurally weaker consumers or simply an attempt to underpromise.”
Diageo had said a “sequential improvement in organic net sales growth” on the first half’s 1% increase to US$10.9 billion was expected, before the impact of tariffs.
A “slight” year-on-year decline in profit over the second half was also signalled, which UBS highlighted was against market expectations for growth of 3.6%.
Shares slipped 0.4% on Tuesday, as the wider FTSE 100 recouped declines to sit four points lower at 8,579.
Entain PLC emerged as the biggest riser on the index, jumping 9.5% after flagging subsidiary BetMGM would become profitable this year... Read more
11.47am: Wall Street facing further declines as Chinese tariffs loom
Wall Street appeared to head towards Tuesday’s session on the back foot once again as Donald Trump’s tariffs remained at the centre of attention.
Having firmed up tariffs on Canadian, Mexican and Chinese goods at the weekend, respective deals saw measures against the US’ neighbours pushed back for a month.
Levies on Chinese imports were met with retaliatory tariffs though, of between 10% and 15% on US goods set to come into force next week.
Uncertainty appeared to hang over Wall Street as a result, with futures pointing to further declines of 0.2% and 0.1% respectively for the Dow Jones and S&P 500.
A flat start was seen for the Nasdaq in the meantime, following a 1.2% slump on Monday.
JOLTS job openings figures for December were due on Tuesday, with markets expecting 7.8 million over the month against November’s 8.1 million.
“With market uncertainty over how trade relations will look going forward, it is difficult to know whether to treat the economic data at face value,” Scope Market’s Joshua Mahony said.
“The prospective breakdown in trade relations with China, coupled with the potential tariffs kicking in next month for Mexico and Canada do bring a degree of uncertainty.
“As such, it is likely that markets take any higher inflation or lower growth metrics with the greatest degree of seriousness given the potential for them to worsen.”
10.55am: M&S tops risers as sales said to jump
Marks and Spencer Group PLC topped Tuesday's FTSE 100 risers after figures suggested the retailer’s strong end the last year had continued into 2025.
According to Kantar, brick-and-mortar sales at M&S had jumped by 10.5% over the 12 weeks to January 26.
This meant M&S’ in-store sales growth topped rivals, beating part-owned Ocacdo, where sales climbed by 11.3%, as till roll across the sector ticked up 2.8% to £36.83 million.
Tesco PLC (OTC:TSCDY) and J Sainsbury PLC, the UK’s largest supermarkets, saw sales grow by 5.6% and 4.2% respectively in the meantime.
Discounters enjoyed growth too, with sales at Lidl climbing by 7.4% and Aldi’s increasing 4.2%.
M&S had flagged record figures in the run-up to Christmas, aided by strong appetite for premium products over the festive period.
Shares climbed 2.3% to 343p on Tuesday.
9.57am: UBS slumps on mixed update
UBS Group AG (SIX:UBSG) slumped over 5% a new buyback of up to US$3 billion (£2.4 billion) failed to divert attention from underwhelming profit in results.
Net profit attributable to shareholders sat at US$770 million, which was above a company-polled forecast of US$483 million but off LSEG’s estimate of US$886 million.
Group revenue of US$11.635 billion in the meantime sat just below the US$11.64 billion expected by analysts, according to LSEG.
A US$3 billion buyback was also unveiled, incorporating US$1 billion of repurchases in the first half of 2025, before a further US$2 billion later in the year.
UBS noted this was subject to “financial targets and the absence of material and immediate changes to the current capital regime in Switzerland”.
Deutsche Bank (ETR:DBKGn) analysts dubbed the update “solid,” though flagged “division mix could have been better” as UBS’ wealth management wing matched expectations but its personal & corporate banking division fell short.
Shares fell 5.4% to 30.06 Swiss franc on Tuesday.
9.30am: European markets remain under pressure as tariff threat hangs
European markets continued to face pressure into Tuesday as the threat of tariffs from Donald Trump lingered.
Trump had said the European Union would “definitely” be hit after setting tariffs on Chinese, Canadian and Mexican goods over the weekend.
Canada and Mexico subsequently struck deals with the president, leaving the measures delayed for a month, while China hit back with retaliatory tariffs of 10% to 15%.
Having posted declines on Monday following the threats, European markets largely fell once again, with Germany’s DAX and France’s CAC both down, alongside London stocks.
“With markets on a tariff tightrope, volatility looks set to stick around,” Hargreaves Lansdown (LON:HRGV) analyst Matt Britzman noted.
Goldman Sachs (NYSE:GS) added expectations were for a “sizeable hit to activity” across the continent “from the ongoing rise in trade tensions”.
Gold, having hit a record US$2,833 an ounce on Monday, was trading at US$2,817 and up 0.6% into Tuesday.
The dollar also continued to gain, climbing 0.2% against the pound to sit at £0.8048.
Back in London, the FTSE 100 was down 28 points at 8,555.
9.05am: Supermarket inflation slows as Sainsbury’s, Tesco (LON:TSCO) grow share
Supermarket inflation slowed last month, thanks in part to a boom in promotional activity, figures showed on Tuesday.
According to Kantar, prices across UK supermarkets rose by 3.3% in January, against 3.7% a month earlier.
Spending on promotions hit £274 million to reflect the highest proportion of sales since January since 2021, with own-branded goods accounting for a record 52.3%.
Kantar’s figures also showed Tesco PLC and J Sainsbury PLC tightened their grip on the market to 28.5% and 15.9% respectively.
Asda’s share dropped by 1% to 12.6% year on year, while Aldi, Lidl and Ocado were among retailers to grow market share.
Tesco climbed by 0.2% on Tuesday, as Sainsbury's (LON:SBRY) edged up 0.9% and Ocado Group (LON:OCDO) PLC gained 0.8%.
8.49am: Google launches appeal against Play Store monopoly ruling
Google has appealed ruling that declared its Play Store an illegal monopoly in 2023.
Having lost a case brought by Fortnite maker Epic Games, Google argued in a San Francisco court on Monday that legal errors had been made in the previous judgment.
Google lawyer Jessica Ellsworth said the market had been defined differently than in a case around Apple Inc (NASDAQ:AAPL) and that a jury should have decided the verdict.
Epic had filed separate antitrust lawsuits against Google and Apple on the same day in 2020 around their respective app stores.
Apple ultimately won its trial in 2021, before Google was hit with penalties as its Play Store was ruled an illegal monopoly in 2023.
“You can't just lose an issue that was fully litigated the first time and then pretend it didn't happen,” Ellsworth said in reference to the Apple case.
Danielle J. Forrest, one of three judges hearing the appeal, noted there were “clearly some factual differences between the Android world and Apple world,” though.
“Even if Google vigorously competes with Apple, that doesn't mean it can't create a different ecosystem where it's a monopolist,” judge Gabriel Sanchez added.
Epic also vowed to "fight" to uphold to previous ruling, with a decision on the appeal potentially set to be made this year.
8.17am: FTSE 100 falls further
London’s blue chips extended declines for the week as trading got underway on Tuesday, with the FTSE 100 shedding 35 points to sit at 8,547.
Vodafone Group PLC tumbled 4.9% to lead the early fallers, as news of stronger third-quarter revenue appeared to be clouded by weaker trading for its German wing.
Diageo PLC followed with a 3.0% decline after flagging US tariffs on neighbours could hit trading ahead and reporting lower profit for the first half of the year.
Reckitt Benckiser (LON:RKT) Group PLC, BT Group (LON:BT) PLC and Rentokil Initial (LON:RTO) PLC were also among fallers, as Glencore (LON:GLEN) PLC headed risers in the absence of any major movers.
Mid and small caps also slipped, with the FTSE 350 down 22 points at 4,687 and AIM all-share off one point at 710.
Staffline Group PLC headed the junior market’s gainers, jumping 25.0% after detailing record cash flow and expectation-beating profit in full-year results… Read more
8.04am: Vodafone grows revenue ahead of Three merger
Vodafone Group PLC has unveiled stronger revenue for the third quarter as the telecommunications firm edges closer to completing its £15 billion Three tie-up.
Group revenue increased 5% to €9.8 billion (£8.1 billion), driven by growth in the UK, Turkey and Africa, Vodafone said on Tuesday.
Growth came despite a 6.4% decline in German sales on television law changes, with Vodafone flagging efforts to turn around the division.
Adjusted earnings climbed 2.2% to €2.8 billion, as service growth in “most markets” and lower European energy costs offset the impact from the German business.
Guidance for around €11 billion in full-year adjusted earnings and adjusted free cash flow of at least €2.4 billion was reiterated.
Vodafone had completed the sale off its Italian division for €8 billion during the quarter, as the merger of its UK business with Three was also approved.
Some €2 billion of proceeds would be used for buybacks once an existing repurchase programme was completed, with a final €0.5 billion tranche kicking off on Tuesday.
“When the UK merger completes in the next few months, we will have fully executed Vodafone's reshaping for growth,” chief executive Margherita Della Valle said.
“We are on track to grow in line with our full-year guidance for this year, which we reiterate today, and are looking forward to a stronger Vodafone in the years ahead.”
7.42am: Diageo warns tariffs to hit US recovery as profit slipped
Diageo PLC has warned over the impact of tariffs by the US on Mexico and Canada as the drinks maker grapples with recovery efforts.
Firmed up by Donald Trump at the weekend, tariffs on Mexican and Canadian imports were set to come into force on Tuesday but later delayed for a month on respective deals.
Diageo flagged that looming tariffs, “whilst anticipated,” threatened to impact momentum in the US, where it was said to have outperformed the market in the first half.
“It also adds further complexity in our ability to provide updated forward guidance given this is a new and dynamic situation,” the company said in interim results.
“We are taking a number of actions to mitigate the impact and disruption to our business that tariffs may cause, and we will also continue to engage with the US administration.”
Diageo also unveiled a 0.6% decline in net sales to US$10.9 billion (£8.8 billion) and 5% drop in reported operating profit to US$3.12 billion for the half year, as a flat US$40.50 per share dividend was declared... Read more
7.10am: Index set to tick up
Futures had the FTSE 100 ticking up by six points to 8,537 on Tuesday, after fears around US tariffs hammered stocks globally earlier in the week.
President Donald Trump had confirmed levies on Chinese, Canadian and Mexican goods on Saturday, before threatening similar measures against the European Union.
Tariffs on Canadian and Mexican goods were subsequently delayed after respective deals, with China laying out plans for levies of 10% to 15% on US goods in response.
Asian markets faced a mixed showing overnight, with stocks falling in China’s Shanghai and Shenzhen as the likes of Hong Kong’s HSI index surged.
5.00am: Tuesday's schedule
A busy Tuesday brings updates from Vodafone, Diageo, Crest Nicholson (LON:CRST) and Entain in London, before a string of reports from across the Atlantic.
Vodafone's £15 billion tie-up with Three looms ahead of it reports... Read more
Diageo's recovery story is set to be the focus when the Guinness maker updates... Read more
Crest Nicholson had delayed figures in order to assess the impact of fire remediation costs... Read more
Announcements due:
Trading updates: Staffline Group PLC, Vodafone Group PLC, Entain PLC
Interims: Alumasc Group PLC, Diageo PLC, Filtronic (LON:FTC) PLC, Nwf Group PLC
Finals: Crest Nicholson Holdings PLC
US earnings: Amgen (NASDAQ:AMGN), Ball Corp (NYSE:BALL), The Estee Lauder Companies, Merck & Co, PayPal (NASDAQ:PYPL) Holdings, PepsiCo (NASDAQ:PEP), Pfizer (NYSE:PFE), Spotify Technology (NYSE:SPOT) Inc, Willis Towers Watson (NASDAQ:WTW), Advanced Micro Devices (NASDAQ:AMD), Alphabet Inc, Mondelez (NASDAQ:MDLZ), Snap Inc (NYSE:SNAP), Super Micro Computer
AGMs: Asia Dragon Trust PLC, Ten Lifestyle Group PLC, Nwf Group PLC
Economic announcements: Factory Orders (US)