London midday: Stocks extend losses as Rightmove, IAG slide
By Michele Maatouk
Date: Friday 07 Nov 2025
(Sharecast News) - London stocks had extended losses by midday on Friday, dragged lower by Rightmove and IAG and as concerns about a potential AI bubble continued to weigh on investors' minds.
The FTSE 100 was down 0.9% at 9,651.47.
Highlighting disappointing updates from IAG and Rightmove, Russ Mould, investment director at AJ Bell, said: "Investors are feeling nervous in the wake of a mild tech sell-off in recent weeks, and the slightest hint of bad news has brought on a migraine.
"In the case of Rightmove, companies must spend money to make money, but investors are often short-term in their thinking and anything that depresses the profit outlook often gets a thumbs-down reaction.
"What's interesting is how the mention of AI would have previously received a ticker-tape parade from investors, now it's not necessarily the golden ticket to a booming share price."
Investors were mulling the latest figures from Halifax, which showed the biggest increase in house prices in October since the start of the year.
Prices rose by 0.6% last month, reversing a 0.3% decline in September and comfortably ahead of forecasts for a 0.1% rise. The average property price now stands at £299,862, up from £298,215.
On the year, house prices were up 1.9% in October following a 1.3% increase in September.
Amanda Bryden, head of mortgages at Halifax, said: "Demand from buyers has held up well coming into autumn, despite a degree of uncertainty in the market, with the number of new mortgages being approved recently hitting its highest level so far this year.
"There is no doubt that affordability remains a challenge for many. Average fixed mortgage rates are currently around 4% and likely to ease down further, but with property prices at record levels, moving home can feel like a stretch.
"Rising costs for everyday essentials are also squeezing disposable incomes, which affects how much people are willing or able to spend on a new property.
"Even so, while there has been some volatility, the market has proven resilient over recent months, as many buyers opt for smaller deposits and longer terms to help make the numbers work. With house prices rising more slowly than incomes for almost three years now, we expect the trend of gradually improving affordability to continue."
In equity markets, Rightmove tumbled as the property portal said investments, mainly in AI, would lead to underlying operating growth slowing to 3% to 5% in 2026.
British Airways and Iberia owner IAG also fell sharply as it posted weaker-than-expected third-quarter operating profit and revenues and highlighted "some softness" in the North American market, despite saying that demand for travel "remains strong".
Operating profit rose to €2.05bn from €2.01bn in the same period a year earlier, although this was weaker than the €2.19bn forecasts by analysts, while pre-tax profit was down 2.1% to €1.87bn.
Total revenue was flat in the third quarter at €9.33bn, missing forecasts for an increase to €9.43bn, while passenger revenue per available seat kilometre was down 2.4%. North Atlantic passenger revenue per ASK fell 7.1%.
On the upside, ITV surged as it confirmed it was in preliminary discussions regarding a possible sale of its broadcasting business to Sky for an enterprise value of £1.6bn.
It added that there could be no certainty on the terms of any potential sale of the business - which contains its TV channels and ITVX streaming service - or whether any transaction will take place.
Market Movers
FTSE 100 (UKX) 9,651.47 -0.87%
FTSE 250 (MCX) 21,792.53 -0.51%
techMARK (TASX) 5,437.14 -0.79%
FTSE 100 - Risers
Hikma Pharmaceuticals (HIK) 1,545.00p 1.51%
Coca-Cola Europacific Partners (DI) (CCEP) 6,760.00p 0.75%
WPP (WPP) 272.30p 0.74%
InterContinental Hotels Group (IHG) 9,582.00p 0.67%
Vodafone Group (VOD) 87.68p 0.60%
Coca-Cola HBC AG (CDI) (CCH) 3,528.00p 0.40%
Hiscox Limited (DI) (HSX) 1,358.00p 0.30%
Airtel Africa (AAF) 294.20p 0.27%
Lloyds Banking Group (LLOY) 91.36p 0.24%
JD Sports Fashion (JD.) 83.90p 0.17%
FTSE 100 - Fallers
Rightmove (RMV) 579.00p -11.66%
International Consolidated Airlines Group SA (CDI) (IAG) 377.60p -8.81%
Auto Trader Group (AUTO) 766.00p -4.08%
Metlen Energy & Metals (MTLN) 42.00p -3.78%
Experian (EXPN) 3,398.00p -3.36%
Relx plc (REL) 3,208.00p -3.26%
BT Group (BT.A) 175.80p -3.11%
Sainsbury (J) (SBRY) 345.60p -2.87%
IMI (IMI) 2,430.00p -2.49%
Entain (ENT) 725.40p -2.16%
FTSE 250 - Risers
ITV (ITV) 76.80p 13.44%
Oxford Nanopore Technologies (ONT) 143.50p 7.33%
Ceres Power Holdings (CWR) 390.80p 3.66%
Ithaca Energy (ITH) 230.50p 1.99%
Johnson Service Group (JSG) 135.40p 1.80%
Anglo-Eastern Plantations (AEP) 1,295.00p 1.57%
Watches of Switzerland Group (WOSG) 408.40p 1.39%
Frasers Group (FRAS) 699.50p 1.38%
SDCL Efficiency Income Trust (SEIT) 61.60p 1.15%
Close Brothers Group (CBG) 428.60p 1.13%
FTSE 250 - Fallers
Me Group International (MEGP) 171.80p -9.39%
Baltic Classifieds Group (BCG) 270.00p -6.09%
Ocado Group (OCDO) 192.45p -3.39%
Wizz Air Holdings (WIZZ) 972.00p -2.65%
Vietnam Enterprise Investments (DI) (VEIL) 734.00p -2.52%
Patria Private Equity Trust (PPET) 590.00p -2.48%
Breedon Group (BREE) 324.60p -2.46%
Finsbury Growth & Income Trust (FGT) 812.00p -2.40%
Helios Towers (HTWS) 167.80p -2.33%
Trainline (TRN) 263.00p -2.30%
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