Crypto News: The London Rush: Not out the woods yet

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Morning, I'm Louise Moon from Bloomberg UK's breaking news team, bringing you up to speed on today's top business stories.

Just when companies thought they were out of the high inflation and high interest rate woods, the economy had other ideas.

Inflation in the UK accelerated (slightly) more than forecast in October to 2.3% from 1.7% in September, nudged higher by more expensive energy bills. The Bank of England and economists had expected 2.2%.

While the rise may seem small, it's the biggest inflation pickup between months since October 2022. Plus, the sentiment and implications matter. Crucially for companies, this morning's stats keep Andrew Bailey and his rate-setting gang on their path of cautiously cutting interest rates. More on that from Markets Today's Dave Goodman below.

That's just as things seemed to be looking up. A host of firms this morning pointed to better times ahead as the economy simmers, not least Severn Trent. The water company described a period characterised by unprecedented energy prices and other cost increases, but said lower inflation during the first half was helping. Perhaps it spoke too soon.

Plus, the BOE also thinks Rachel Reeves' budget could add fuel to the flames. So as costs increase and taxes rise, companies still have a whole lot to contend with.

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.

Pepsi and Robinsons owner Britvic expects its acquisition of Carlsberg to complete in the first quarter of 2025. Full-year profit and revenue both rose but missed estimates, with a strong performance in Brazil.

The value of British Land's portfolio of offices, warehouses and stores grew in the first half, due to a strong retail sector. While it warned about volatility due to the budget, US election and geopolitical risks, the landlord is benefiting from its decision to focus on retail parks and prime office space.

Affordability has hampered Crest Nicholson this year, but it says the "economic landscape is becoming more favourable." The homebuilder now expects annual adjusted pretax profit at the lower end of guidance.

Dunelm has bought Homefocus Group, which has 13 stores across Ireland and 140 staff. It's the homeware retailer's first entry into Ireland, where it plans to expand over time.

Venture capital investment firm Molten Ventures is anticipating a more stable investment climate to come. It expects to see more aligned views between buyers and sellers, and therefore more market activity, as interest rates stabilise.

Russia's war against Ukraine escalates to enter a dangerous new chapter.
Hong Kong media titan Jimmy Lai testifies in court, fighting charges.
Trump picks Cantor Fitzgerald CEO to lead commerce as cabinet fills out.

Here's your daily snap analysis from Bloomberg UK's Markets Today blog:

Everyone was expecting a big increase in the UK's headline inflation rate this morning, and the data certainly delivered that.

In the end, the reading was very slightly higher than expected almost across the board, with increases in core and services gauges also catching the eye.

The scale of the misses (0.1 or 0.2 percentage points) matters a lot for traders, who have reacted by pushing up the pound and trimming bets on Bank of England interest rate cuts. But they may be less worrying for the central bank itself.

This increase was widely anticipated (indeed the BOE was more pessimistic on this services reading than economists) so the shape of today's data was already baked into the decision to cut rates earlier this month.

With BOE officials touting a gradual approach to easing, they have the luxury of taking a longer-term view of the data than traders. It will ultimately take more than one month's volatility in inflation readings to knock them off course.

— David Goodman

Check Bloomberg UK's Markets Today blog for updates all day.

Bill Ackman's Pershing Square Holdings reports third-quarter figures. The influential billionaire earlier this month said he wants to delist the company from Amsterdam, partly because the majority of trading happens in London, so eyes will be on any more information about that.

Other notable results include JD Sports, Halma and post office parent IDS.

Thousands of farmers piled into central London yesterday to protest Labour imposing inheritance tax on their land for the first time in over three decades. Former Top Gear presenter Jeremy Clarkson joined the rally and took to the stage to make a speech.

Clarkson's Farm, his documentary series, follows him running Diddly Squat farm in Chipping Norton. One of its products is vodka — but what ingredient is it made from?

Farmers protest over inheritance tax changes in London, UK, on Tuesday, Nov. 19, 2024. Photographer: Chris J. Ratcliffe/Bloomberg

[Yesterday's answer: Gladiator II reaped $87m at the international box office over the weekend, making it director Ridley Scott's highest ever overseas opening.]

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