London pre-open: Stocks to edge up as trade war worries ease
By Michele Maatouk
Date: Monday 13 Oct 2025
(Sharecast News) - London stocks were set to edge up at the open on Monday, as worries about US President Donald Trump's fresh tariff threats on China eased.
The FTSE 100 was called to open around 10 points higher.
Danske Bank said: "On Friday, Trump threatened China with 100% tariffs on top of the existing rates as a retaliation against China's new export control measures on rare earth minerals. However, comments received over the weekend appear to downplay the risk of trade war escalation.
"Focus now turns to a Xi-Trump meeting at the end of the month, where the two sides can dial back the escalation. We see a more than 50% chance for this.
"While the 100% tariff hike would push the pre-substitution US average tariff rate to around 28%, or close to the highs seen last May, the effective increase would be more modest due to re-routing of trade.
"Both importers and exporters have adapted to the new tariff landscape which alleviates downside risks to both US and Chinese economies even if the higher tariffs go into effect. We expect the Fed to cut rates by 25bp later this month irrespective of the near-term trade war outcome."
In corporate news, Lloyds said it is putting aside a further £800m to cover compensation costs related to the motor finance mis-selling scandal.
The bank said it has now made a £1.95bn provision, including both redress and operational costs, up from £1.15bn previously. This follows the FCA's ruling last week that lenders must pay out £11bn including costs after finding "widespread failings" in how motor finance firms disclosed commission payments and commercial ties between lenders and brokers on agreements signed between 6 April 2007 and 1 November 2024.
Financial services firm Legal & General said that Scott Wheway will succeed John Kingman as chairman following the group's next annual general meeting on 21 May 2026.
Wheway, who currently serves as chairman of Scottish Widows, will join the board of Legal & General as a non-executive director and chairman designate on 2 January 2026.
AstraZeneca said it has struck a deal with the White House to cut prices of the drugs it sells in America, allowing it to avoid steep tariffs on US imports.
The blue chip said it will provide direct to consumer sales to eligible patients with prescriptions for chronic disease at a discount of up to 80% off list prices.
In return, the US Department of Commerce has agreed to delayed section 232 tariffs for three years.
AstraZeneca will onshore medicines manufacturing during that time, it confirmed, so that "all medicines sold in America are made in America".
The agreement - specific details of which remain undisclosed - was first unveiled at a White House event over the weekend.
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