The London Rush: Bringing home the bacon

Tesco shares gain on lifted guidance

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Hi, I'm Louise from Bloomberg UK's breaking news team, catching you up on this morning's business stories. Evidently, every little really does help. Tesco raised its full-year guidance a tad as competitive pricing and discounts helped volumes. The grocer now expects £2.9 billion in retail adjusted operating profit, rather than at least £2.8 billion.  Britain's largest supermarket chain is reaping the benefits of focusing heavily on low prices and loyalty offers to compete against increasingly popular discounters like Lidl. It's also a tentative sign that Brits are buying more as inflation pressures ease.  While the guidance increase was expected by some, the proof is in the pudding. The stock rose as much as 2.6%. 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

Sales at SSP Group grew 12% in the fourth quarter, but the Upper Crust-parent warned a stronger pound was denting revenue and profit. Property developer British Land is raising £301 million to help pay for the £441 million purchase of a portfolio of retail parks from Canadian investment group Brookfield. Hiring and firing is slowing in the UK as companies prepare for Labour to raise taxes and toughen workers' rights. The standstill threatens a wider economic drag, making interest rate cuts harder. But Bank of England Governor Andrew Bailey has said that, if inflation stays subdued, cuts could become a "bit more aggressive," in an interview with The Guardian. He also hit back at Liz Truss. Markets Today's Dave Goodman delves into the pound's reaction below.

Global Catch Up

Russian missiles killing Ukrainian civilians are full of US tech. Singapore jails its former transport minister for one year in bribery case. Miami Dolphins owner may sell stakes, assets at $8.1 billion valuation.

Markets Today: Powerful Words

Here's your daily snap analysis from Bloomberg UK's Markets Today blog: Andrew Bailey has this morning proved the power that central bankers have, in moving markets with just a few words. Bailey's interview with The Guardian touched on many things, including his fears over a new oil price spike due to events in the Middle East and another defence of the BOE's actions during the Truss crisis.  But traders have just seized on a couple of phrases. Bailey held out the prospect of becoming a "bit more aggressive" in cutting interest rates if the news on inflation continued to be good, and later that it could be "a bit more activist" in that situation. The comments, more dovish than Bailey has made in the past, have pushed the pound down sharply this morning, seeing it drop to the lowest in two weeks. The bulk of that move came since the interview was published at 6 a.m. A BOE more willing to cut rates would puncture the narrative of caution (especially versus the Fed) that has been such a big driver of sterling's recent rally. That might be welcome by some UK firms — SSP Group, which owns Upper Crust, Ritazza and other travel food outlets, today became the latest company to indicate a strong pound was hurting profit, following JD Sports yesterday. — David Goodman Check Bloomberg UK's Markets Today blog for updates all day.

What's Next

Construction PMI data for September drops mid-morning tomorrow — an important economic activity indicator. It's expected to fall slightly, but stay safely above the 50 level that represents expansion.  Three of the Best: UK Michelin Hotels Hi, it's Sarah from Pursuits. Michelin's newly released UK and Ireland hotels guide makes for great inspiration ahead of the October half-term — and not all will burn a giant hole in your pocket… Lucknam Park, Cotswolds Set on a 500-acre estate, this honey-coloured stone hotel has long been a Cotswold favourite. It offers an equestrian centre, individual cottages for more privacy and even a Michelin-starred restaurant. Rooms from around £500. The Gallivant, Camber Right next to beach in East Sussex, this boutique hotel is a great choice even with summer in the rear-view mirror. There's a big focus on English wine, with tours and tastings available from nearby vineyards including Gusbourne. Rooms from around £300. Penmaenuchaf, Dolgellau This gorgeous country house on the southern edge of Snowdonia National Park is ideal for those craving autumnal walks in the Welsh countryside. Some rooms come equipped with a jacuzzi to wind down after a long day in nature. Rooms from around £170.

Pub Quiz

Which British, digital bank has been fined £29 million by regulators for "shockingly lax" controls against financial crime?  "It left the financial system wide open to criminals and those subject to sanctions," according to the FCA. [Yesterday's answer: Pink Floyd is selling the rights to its music catalogue, merchandise and spin-offs to Sony for about $400 million.]

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