marketsClosed Sep 19, 2025<\/p>\n
The pound and gilts slide as the UK\u2019s budget deficit overshoots forecasts, while retail sales increase thanks in part to warm weatherJoin the Markets Today team — Sam Unsted<\/a>, Kit Rees<\/a> and Jacob Reid<\/a> — for news and analysis vital to UK markets. Email us at marketstoday@bloomberg.net<\/a>12h 7m ago<\/p>\n It\u2019s been pretty busy for a Friday. Markets are still mulling the Bank of England\u2019s decision to keep rates on hold yesterday, and a wider-than-expected budget deficit in August \u2014 coming in at \u00a318 billion<\/a> \u2014 threw government borrowing<\/a> into the spotlight once again.<\/p>\n The pound<\/a> and gilts<\/a> sold off on the prospect that chancellor Rachel Reeves has a steep task on her hands in terms of balancing the public finances<\/a>. Sterling even dipped below $1.35, and the yield on 30-year bonds rose 4.5 basis points.<\/p>\n Even the FTSE 100 was little-changed, underperforming Europe as banking shares<\/a> have weighed.<\/p>\n Shares in LSE<\/a> dropped after US peer FactSet gave a disappointing forecast for 2026. Spire Healthcare<\/a> soared after saying it may put itself up for sale. And PureTech Health gained after an activist bought some shares in the biotherapeutics firm.<\/p>\n