The London Rush: Glass Half Full

Drinks industry recovery around the corner?

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Hi, I'm Louise from Bloomberg UK's breaking news team, catching you up on this morning's business stories. Mitchells & Butlers, the owner of Harvester and All Bar One, is still nursing a hangover.  After years of pubs being ravaged by Covid and inflation, this summer's cold and wet weather - plus riots in August - dragged on sales.  But there's light ahead: rising labour costs were "substantially" offset by lower energy and food bills. That'll save the firm enough cash to boost its full year results to the top of estimates. Diageo also seems to be teetering between a miserable economic backdrop and a brighter future. The drinks conglomerate maintained its outlook for the year, saying growth will return when the consumer environment improves. Markets Today's Dave Goodman pours over the latest consumer confidence data below. What's your take? Ping me on X, LinkedIn or drop me an email at lmoon13@bloomberg.net. Oh, and do subscribe to Bloomberg.com for unlimited access to trusted business journalism on the UK, and beyond.

What We're Watching

Schroders named Meagen Burnett chief financial officer from January, replacing Richard Oldfield who is becoming CEO. Liquidity is returning, according to property investment firm Segro, which posted 94.3% occupancy in the third-quarter. Ratings agency S&P cut Thames Water deeper into junk after company announced that it may run out of funds to cover its liquidity needs after December. Jaguar Land Rover plans to pump another £500 million into retooling a factory near Liverpool that will manufacture electric SUVs.   Talking of Liverpool, Dan Friedkin's takeover of Everton is testament to the fact that the Premier League still holds appeal for US investors, argues Bloomberg Opinion's Matthew Brooker. But wish the billionaire luck.

Global Catch Up

China weighs $142b capital injection into top state banks to aid economy. US, Europe and allies offer three-week cease-fire to avert Lebanon war. OpenAI may give CEO Sam Altman 7% stake in shift to become for-profit.

Markets Today: Confidence in the Consumer

Here's your daily snap analysis from Bloomberg UK's Markets Today blog: We've seen another round of gloomy confidence data out today: the Recruitment and Employment Confederation suggests employers are turning more pessimistic on hiring and the British Retail Consortium says households expect the economy to deteriorate in the next three months. On the one hand, the numbers make sense. Most forecasters do expect the first half of the year was the high point for the economy, so a slight slowdown in growth or the labour market wouldn't be a shock. But the bigger question is if the drop in sentiment is going to drive any economic change. Early signs suggest perhaps not. Most company earnings we've seen for the August period have been pretty solid, with, if anything, the better weather driving a pick up in spending. Official retail sales for the month were also very positive. Yes, there has been some concerns over spending on big-ticket items, but those have been around for some time. Taking a step back, the story of the UK since at least 2016 has been one of incredible consumer resilience, where they largely kept spending despite uncertainty over Brexit, Covid or inflation. The latest drop in confidence pales against those events, so it might be unwise to get too concerned about the recent downturn in sentiment. — David Goodman Check Bloomberg UK's Markets Today blog for updates all day.

What's Next

We aren't expecting any major earnings or eco data tomorrow … its Friday, have a day off. Three of the Best: Autumn Sun Getaways Hi, it's Kate from Pursuits. With the pound breaking above $1.34 for the first time since 2022 on Tuesday, there's a case for taking advantage while it lasts. Here are some mini-break ideas to maximise the sun — and your currency. Seville, Spain Boasting sunshine almost all year round, the weather is ideal in Autumn. A walkable city known for gorgeous historic architecture, proximity to beaches and — crucially — delectable tapas joints.  Sicily, Italy The island was almost overrun after The White Lotus, but things have thankfully now calmed down. In Autumn, prices are a little lower and accommodation is less booked up. Plus, southern Italian food — all things pistachio, pasta alla Norma — and wine is miraculous.  Luxury yachts at Port Limpia, Nice. Photographer: Andrey Rudakov/Bloomberg Nice, France Hop on a plane at City Airport and about two hours later you'll land in Nice, which still boasts plenty of sun and far less crowds in October. Make sure to visit one of the world's great open air food halls, Liberation Market, and try socca (crisp-tender chickpea pancakes).

Pub Quiz

Instagram and Facebook-parent Meta has enlisted celebrities to voice its AI chatbot. Among the options, you'll be able to hear from the John Cena, Kristen Bell and which British Dame? Mark Zuckerberg and mixed martial artist Brandon Moreno debut Meta's first pair of augmented reality glasses in California on Wednesday. Photographer: David Paul Morris/Bloomberg [Yesterday's answer: Nadiya Hussain is the contestant who won The Great British Bake Off in 2015, and now boasts an MBE.]

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