Weekly review
By Josh White
Date: Friday 23 Jan 2026
(Sharecast News) - The FTSE 100 ended the week down 91.87 points, or 0.9%, closing at 10,143.44 on Friday.
Equity view
UK defence firm Babcock International said CEO David Lockwood would retire at the end of 2026 after almost five years in the job and be replaced by Harry Holt, currently head of the company's nuclear division. Former army officer Holt has been on the senior management team since November 2023. Prior to that he spent seven years at Rolls Royce in a number of roles, including president of its nuclear division.
Restaurant, bar and café operator SSP backed its full-year guidance on Friday as it posted a 5% jump in first-quarter like-for-like sales. In an update for the period from 1 October to the end of December 2025, the company said the positive trading momentum seen in the first eight weeks to 25 November continued through the remainder of the quarter.
Oil giant Shell is reportedly considering a sale of its assets in Argentina's Vaca Muerta shale play and has approached potential buyers in recent weeks to gauge their interest. According to Reuters, citing sources familiar with the matter, Shell is open to selling some or all of its interests in the highly sought shale oil and gas play, part of Argentina's Neuquen basin.
Pub group Shepherd Neame reported a rise in sales on Friday as it hailed strong trading over the Christmas period. In the 26 weeks to 27 December 2025, like-for-like sales growth across its pubs remained strong, it said, with retail like-for-like sales up 4.5%. The company said retail pubs traded well over the Christmas and New Year season, with LFL sales up 8.1% for the five weeks to 3 January, driven by a strong performance inside the M25, where sales grew 12.6%.
Specialist media group Future on Thursday said it had bought digital publisher SheerLuxe and its Blush Talent management agency for £39.9m funded from existing facilities, with an earn-out conditional on future performance capping the deal at £80m. Originally founded by Georgie Coleridge Cole in 2007 as a directory of online retailers, SheerLuxe has evolved into a digital publisher in women's fashion and lifestyle, Future said in a statement.
Precious metals giant Fresnillo has completed its $555m acquisition of Probe Gold following all the necessary approvals, marking its first entry into Canada and the prolific Val d'Or gold mining district in Quebec. Fresnillo said it has now received the required shareholder, court and regulatory sign-offs to settle the CAD$770m deal using existing cash on hand.
High technology components manufacturer Senior said on Thursday that it had seen "stronger than expected trading" following its November update, most notably in its aerospace unit, and now expects full-year adjusted pre-tax profits to be "comfortably above previous expectations". Since the trading update, Senior also said it has taken action and reduced its cost base in certain Flexonics operations, noting that the related restructuring costs were being treated as adjusting items and will be announced at the time of its full year results.
B&M European Value Retail slashed full-year guidance on Thursday, despite an uptick in festive sales. The embattled budget retailer said its seasonal ranges had sold well, with UK like-for-like sales up 3% in December and similar trends continuing into early January trading. Over the entire third quarter to 27 December, B&M UK underlying sales fell 0.6% to £1.41bn. Group sales, which include Heron Foods and B&M France, rose 2.9% in local currencies, to £1.74bn.
Educational publishing and services group Pearson has announced that it will kick off a new £350m share buyback programme as it reiterated confidence in meeting analysts' expectations this year. The new repurchase programme, which will see the company buy back £175m of shares by the middle of May before repurchasing the remaining £175m "in due course", follows a similar £350m buyback programme completed in August 2025.
Fashion house Burberry reported a 3% rise in comparable retail sales in the third quarter of FY26, as the luxury group highlighted improving product momentum and stronger engagement with younger consumers. Burberry said it delivered higher quality revenues across channels and regions, helped by a shorter and more discreet markdown period compared with last year.
Pub chain JD Wetherspoon has posted a 4.7% rise in like‑for‑like sales in the 25 weeks to 18 January, but warned that full-year profits looked set to be lower than FY25 levels. Wetherspoons said on Wednesday that sales were up 6.9% year-on-year, with food sales rising 1.3% and slot and fruit machine revenue surging 9.1%. Hotel room sales were the only category to decline, edging 0.7% lower.
Consumer credit reporting company Experian reported strong third-quarter growth on Wednesday, with total revenue increasing 12% at actual exchange rates and 10% at constant currency, alongside 8% organic revenue growth, in line with expectations. Experian maintained its full-year outlook, driven by continued momentum across its global operations, particularly in North America which saw 11% total revenue growth, and Latin America which saw a 15% organic revenue growth rate.
Electrical retailer AO World said on Tuesday that its recently acquired recommerce business, musicMagpie, has partnered with Timpson to offer customers a quicker and more convenient way to trade in old smartphones and receive payment almost immediately. After a successful four‑month trial, the service has now rolled out to more than 1,300 Timpson stores across the UK.
Self-storage operator Big Yellow Group reported higher revenues in its third quarter as increased space and higher rents offset a slight dip in occupancy levels compared with last year. Group revenues were up 2% year-on-year at £52.3m over the three months to 31 December, with like-for-like store revenues also growing 2%.
Infrastructure services group Kier backed its full-year expectations on Tuesday as it said it continued to trade well in the six months to the end of December. The company said in an update that its first-half and estimated full-year performance remained in line with the board's expectations. The order book as at the end of December was around £11.6bn, up from £11.0bn at the same time a year earlier and remaining at record levels, with 94% of FY26 group revenue estimated to be secured, "providing a high degree of visibility".
Building products manufacturer Ibstock said on Tuesday that market uncertainty had persisted into the new year, with residential construction and RMI activity expected to remain subdued in the near term, despite the prospect of modest year‑on‑year volume growth in the second half. Ibstock said it had delivered "a solid performance in FY25", with revenue rising 2% to around £372m, even as trading conditions became "progressively more challenging".
Workspace Group announced on Monday that chief executive Lawrence Hutchings is to leave the office operator after just 14 months in the role. Hutchings, who joined as CEO in November 2024, will be replaced by Charlie Green, the former co-CEO and co-founder of flexible workspace business, The Office Group (now trading as Fora).
Travel retailer WH Smith appointed Leo Quinn to the role of executive chairman on Monday, with effect from 7 April. Quinn will succeed current chair Annette Court, who will step down at the end of WH Smith's annual general meeting on 2 February but remain with the firm as a senior independent director. Simon Emeny will act as interim non-executive chairman until Quinn's start date.
Landscaping supply group Marshalls said it expected to report annual earnings in-line with market expectations despite subdued end markets and "prolonged" pre-Budget uncertainty during the second half which saw revenues come in flat. In a trading statement published on Monday, the company added that the outlook for 2026 "continues to be uncertain" but was confident that cost cutting last year would deliver an improved financial performance.
Great Portland Estates said on Monday that Jayne Cottam has been appointed chief financial officer with effect from 16 March. The company said Cottam brings significant financial leadership and operational experience, most recently serving as CFO of Assura from September 2017 to December 2025. She joined Assura from Morris Homes Limited, one of the UK's largest private national housing developers, where she was the finance director for operations.
Economic news
Business activity in the UK private sector saw its strongest upturn in January since April 2024, according to a survey released on Friday. The S&P Global flash UK PMI composite output index rose to 53.9 from 51.4 in December. This marked the ninth reading in a row that the index was above the 50.0 mark that separates contraction from expansion. It was also the highest since April 2024.
UK retail sales rose in December, official data showed on Friday, beating expectations, as spending picked up in the run-up to Christmas. According to the Office for National Statistics, retail sales volumes increased 0.4% last month, comfortably ahead of consensus for a 0.1% decline.
UK consumer confidence was little changed in January and has now been in negative territory for the last 10 years, according to a survey released on Friday by GfK. GfK's long-running consumer confidence index ticked just one point higher from December to -16, with three of the five measures up, and two down.
The British retail sector strengthened in January, an industry survey showed on Thursday, despite households remaining cautious about spending. According to the latest distributive trades survey from the Confederation of British Industry, retail sales volumes fell in January, with a balance of -17. However, that was a notable improvement on December's -44, and was well ahead of forecasts for -35. It was also the highest reading since April 2025.
UK government borrowing fell in December 2025, according to figures released on Thursday by the Office for National Statistics. Public sector borrowing declined to £11.6bn, down by £7.1bn or 38% on December 2024. Despite the drop, it was the tenth highest December figure since monthly records began in 1993, not adjusted for inflation.
UK consumers are becoming cautiously more optimistic about the health of the economy, a survey showed on Thursday. According to January's BRC-Opinium consumer sentiment monitor, respondents expect to spend less on retail over the next three months, with the measure falling to -6 from December's 6. Overall spending expectations were also notably lower post-Christmas, sliding to 5 from 17.
Inflation rose by more than expected in December, official data showed on Wednesday, after a jump in tobacco prices and airfares. According to the Office for National Statistics, the consumer price index rose by 3.4%, up from 3.2% in the 12 months to November. Consensus had been for a more modest rise, to 3.3%.
UK manufacturing output fell in the quarter to January, according to the latest Industrial Trends Survey from the Confederation of British Industry, and optimism remains weak. Output volumes declined, with a net balance of -25, down from -21 in December. A balance is the weighted percentage of firms reporting an increase and those reporting a decrease.
UK house price inflation picked up to a five-month high in November despite heightened uncertainty ahead of the Autumn Budget announcement, while rent price growth slowed slightly. House prices averaged £271,000 over the 12 months to November, up 2.5% from the year before, compared with the 1.9% annual growth registered in the year to October. That was the highest rate of year-on-year growth in house prices since July.
The UK unemployment rate was unchanged in November, official data showed on Tuesday, while wage growth slowed modestly. According to the Office for National Statistics, the unemployment rate in September through November was 5.1%, unchanged on the previous month. It was, however, notionally ahead of consensus expectations of 5%.
International events
Economic growth in the Eurozone was sluggish in January, a closely-watched survey of companies showed on Friday. January's flash HCOB composite PMI Output Index was 51.5, unchanged on December and notionally behind consensus for 51.6. However, it remained in positive territory. A reading above the neutral 50.0 benchmark indicates growth, while one below it suggests contraction.
The Bank of Japan held its key interest rate unchanged at 0.75% and raised its growth and inflation forecasts for the economy, suggesting this could be enough to raise the cost of borrowing as the country prepared for a snap election next month. In a quarterly outlook report, the BOJ raised its economic growth forecast for the fiscal year ending in March 2026 to 0.9% from 0.7% in October 2025 and also raised its GDP expansion outlook for the period to 1% from 0.7%.
US consumer spending continued to rise into the autumn, with personal consumption expenditures increasing in both October and November, according to the Bureau of Economic Analysis. The PCE price index, the Federal Reserve's preferred inflation gauge, rose by 0.2% in both October and November, as did core PCE, which strips out volatile food and energy costs.
Norges Bank kept its key rate at 4% on Thursday, as widely expected, for the third meeting in a row. Norway's central bank said in a statement that if the economy evolves broadly as expected, the policy rate will be reduced further in the course of the year. However, the Bank indicated that it was in no rush to cut rates.
The final reading of US gross domestic product for the third quarter of 2025 has been revised upwards to a two-year high, according to revised estimates from the Bureau of Economic Analysis on Thursday. The annual rate of GDP growth for the June-September quarter was adjusted to 4.4% from the initial reading of 4.3%, surprising economists who had expected no change from the flash estimate.
Americans lined up for unemployment benefits at an accelerated clip in the week ended 17 January, according to the Labor Department. Initial jobless claims rose by 1,000 to 200,000, up from the previous week's upwardly revised reading, while continuing claims fell by 26,000 to 1.85m.
US President Donald Trump said late on Wednesday that he was ditching plans to impose tariffs on European nations that opposed his plans to annex Greenland, as he hailed the framework of a deal on the territory. In a post on Truth Social, Trump said that based on a "very productive" meeting, he and Nato Secretary General Mark Rutte have formed "the framework of a future deal with respect to Greenland and, in fact, the entire Arctic Region".
Donald Trump insisted America had a historical right to own Greenland on Wednesday and called for "immediate negotiations", but ruled out taking the Danish territory by force. In a lengthy and at times rambling speech at the World Economic Forum in Davos, the US president said Greenland - which he described as a "big, beautiful piece of ice, it's hard to call it land" - was a "core national security interest" for America.
US mortgage applications rose 14.1% week-on-week in the week ended 16 January, extending the 28.5% surge in the previous period, according to the Mortgage Bankers Association. Applications to refinance a mortgage, which are more sensitive to week-to-week volatility, rose 20%, while applications for a mortgage to purchase a new home increased 5%.
Citi downgraded Continental European equities to 'neutral' from 'overweight' on Tuesday as it said the latest step-up in transatlantic tensions and tariff uncertainty dent the near-term investment case, casting doubt on broad-based earnings per share inflection in 2026. "We therefore downgrade continental Europe to 'neutral' in a global context for the first time in over a year," it said.
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