Weekly review
By Benjamin Chiou
Date: Friday 16 Oct 2026
(Sharecast News) - The FTSE 100 closed Friday's session 0.38% higher at 10,881.9p.
Equity view
Recruiter Hays came under pressure following a disappointing trading update, as difficult conditions across global recruitment markets continued to weigh on activity. The shares fell as investors assessed the outlook for hiring demand amid economic uncertainty.
BP said that its new chief executive, Meg O'Neill, would present an updated company strategy in December, just eight months after taking charge. The oil major also flagged a sharp increase in refining margins ahead of its third-quarter results, with its indicative refining margin jumping nearly 60% to $46.70 a barrel from $29.60 in the previous quarter.
Kingfisher announced the appointment of Sebastian Gundel as its new chief executive, effective 1 February 2027. The former boss of European home improvement retailer OBI will replace Thierry Garnier, who is leaving the B&Q and Screwfix owner to lead Dutch supermarket group Ahold Delhaize.
Greencore upgraded its annual profit guidance following a strong finish to its financial year, with fourth-quarter trading outperforming the wider grocery market. The convenience foods manufacturer now expects adjusted operating profit of around £248m, while pro forma fourth-quarter revenues rose 4.5% to £1.04bn, supported by volume growth and the recovery of input cost inflation.
Reach reported a 14.1% decline in third-quarter revenues as disruption to digital referrals continued to affect the publisher. Digital revenues fell 20.3% and print revenues dropped 12%, although the company maintained its expectations for the full year and highlighted restructuring measures designed to offset the decline.
Plus500 agreed to acquire US broker-dealer Hedge as it prepared to launch a new US investment platform in early 2027. The acquisition will give the online trading group direct access to the US securities market and support plans to combine trading in futures, stocks, options and exchange-traded funds within a single application.
Entain reported that its BetMGM joint venture with MGM Resorts saw a 7% increase in third-quarter net revenue to $710m. The US gambling business reiterated its full-year forecasts, expecting revenues and adjusted EBITDA towards the lower ends of its previous guidance ranges.
Softcat reported another year of strong growth, with gross invoiced income rising 30.5% to £4.7bn and gross profit increasing 24.7% to £616.3m. Underlying operating profit advanced 19.4% to £215.1m, supported by larger technology projects, customer orders brought forward amid memory shortages and higher vendor rebates.
Chemring secured a multi-year strategic supply agreement through its Roke subsidiary with a major US defence contractor, worth at least $170m over its first five years. The deal covers the supply of miniature radar altimeters for high-speed platforms and uncrewed aircraft, with an initial $16m production order already received.
Self-storage group Big Yellow rallied after activist investor Ancora Holdings, which owns more than 4% of the company, urged its board to explore a sale. Ancora argued that Big Yellow was materially undervalued and called for a comprehensive strategic review, including discussions with potential buyers.
British Land reaffirmed its full-year guidance as strong leasing demand at its London campuses and retail parks supported rental growth. The commercial property group expects first-half underlying earnings per share to rise 5% to 16.1p, while underlying profit is forecast to increase to £166m from £155m. Like-for-like net rental income grew 12%.
Antofagasta shares fell after the Chilean copper miner raised its cost outlook while reaffirming production guidance. Third-quarter copper production rose 7% from the previous three months to 151,900 tonnes, supported by higher output at Los Pelambres, although the increase was slightly below market expectations.
AstraZeneca announced a strategic drug discovery partnership with US artificial intelligence biotechnology company Insitro, potentially worth up to $1.86bn. The collaboration will focus on identifying new treatments for liver and heart diseases, with AstraZeneca making an initial payment of $40m alongside potential milestone payments and royalties.
Wise raised its full-year revenue growth outlook after reporting a 21% increase in second-quarter net revenue to $739.1m. Active customers increased 20% to 12.5m, while cross-border transaction volumes grew 22% to $71.7bn. The payments specialist now expects annual net revenue growth in the upper half of its medium-term target range of 15-20%.
Man Group reported a rise in assets under management to $270.9bn at the end of September, up from $253.6bn three months earlier. The investment manager recorded $10.1bn of net inflows during the third quarter, alongside $5.9bn of positive investment performance, with growth across its alternatives and long-only strategies.
UK economic news
The UK government could face additional public spending pressures of up to £35bn a year by 2030-31, according to an analysis published by the Institute for Fiscal Studies. The think tank warned that higher defence and healthcare commitments, inflation, public sector pay demands and uncertain productivity improvements could force Chancellor John Healey into difficult spending and tax decisions.
UK retail sales growth slowed in September as households remained cautious ahead of expected increases in bills and taxes, according to the British Retail Consortium. Total retail sales rose 1.3% year-on-year, compared with growth of 2.3% in September 2025, while food sales increased 2.5% and non-food sales edged up just 0.3%.
The UK economy expanded by more than expected in August, according to figures released by the Office for National Statistics. Gross domestic product increased 0.1% month-on-month, compared with forecasts for a 0.1% decline, while growth over the three months to August reached 0.7%. Production output increased 0.8% during August, although services were unchanged and construction contracted by 0.2%.
UK grocery inflation ticked higher in the four weeks to 4 October, as shoppers sought autumn staples, according to figures released by Worldpanel by Numerator. Like-for-like grocery inflation increased to 2.5% from 2.3% in the previous four-week period, with prices rising fastest in markets such as water and squash, skincare and skin cleansing. Prices fell fastest in butters and spreads, chocolate and cheese.
Bank of England governor Andrew Bailey has warned that it remains too early to assess the full inflationary impact of the Middle East conflict amid signs that businesses are working hard not to pass higher energy costs on to customers. Speaking at an Institute of International Finance meeting in Bangkok on Friday, Bailey suggested that the risk of rising energy prices triggering more widespread, second-round inflation had so far been limited.
International economic news
The International Monetary Fund raised its global growth forecast for 2026, supported partly by investment in artificial intelligence, but warned that wars and elevated energy costs continued to threaten the outlook. The IMF now expects the world economy to grow by 3.1% this year, up from its previous forecast of 3%, and by 3.4% in 2027.
US consumer price inflation accelerated in September, adding to concerns about the outlook for interest rates. Consumer prices rose 0.6% month-on-month, following a 0.4% increase in August, while the annual inflation rate climbed to 3.7% from 3.4%. Core inflation, which excludes food and energy, increased to 2.6% year-on-year from 2.4%.
Eurozone industrial production unexpectedly contracted for a third consecutive month in August, according to Eurostat figures. Output fell 0.5% month-on-month, following declines of 0.3% in July and 0.1% in June, while production was 1.1% lower than a year earlier. Weakness in Belgium and Ireland was among the main factors behind the decline.
US producer prices recorded their strongest monthly increase in more than four years in September, driven by surging energy costs. The producer price index rose 1.3% month-on-month and 6.3% year-on-year, with goods prices increasing 2.6% and gasoline prices surging 20.3%.
US retail sales increased 0.8% in September, following an upwardly revised 1.3% rise in August, with higher fuel prices accounting for much of the growth. Sales at gasoline stations jumped 6.4%, while retail sales excluding gasoline increased by just 0.2%. The closely watched control group, which feeds into GDP calculations, rose 0.1%.
Eurozone inflation was confirmed at a three-year high in September, with annual consumer price growth accelerating to 3.8% from 3.2% in August, according to final figures released by Eurostat. Prices rose 0.6% month-on-month, with energy inflation reaching 18.9% year-on-year, while core inflation increased to 2.5% from 2.4%.
The eurozone recorded its largest trade deficit since January 2023 in August as imports surged, according to Eurostat. The single currency bloc reported a €16.1bn deficit, compared with a €10.7bn surplus in July, as imports jumped 16.7% year-on-year to €243.8bn, outpacing a 9.9% rise in exports to €227.7bn. The energy trade deficit widened to €26.7bn from €21.3bn a year earlier.
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