marketsClosed Sep 19, 2025
The pound and gilts slide as the UK’s budget deficit overshoots forecasts, while retail sales increase thanks in part to warm weatherJoin the Markets Today team — Sam Unsted, Kit Rees and Jacob Reid — for news and analysis vital to UK markets. Email us at marketstoday@bloomberg.net12h 34m ago
It’s been pretty busy for a Friday. Markets are still mulling the Bank of England’s decision to keep rates on hold yesterday, and a wider-than-expected budget deficit in August — coming in at £18 billion — threw government borrowing into the spotlight once again.
The pound and gilts sold off on the prospect that chancellor Rachel Reeves has a steep task on her hands in terms of balancing the public finances. Sterling even dipped below $1.35, and the yield on 30-year bonds rose 4.5 basis points.
Even the FTSE 100 was little-changed, underperforming Europe as banking shares have weighed.
Shares in LSE dropped after US peer FactSet gave a disappointing forecast for 2026. Spire Healthcare soared after saying it may put itself up for sale. And PureTech Health gained after an activist bought some shares in the biotherapeutics firm.
That’s it from us for today, folks. Have a lovely weekend, and join us again on Monday. Feel free to reach out to us at marketstoday@bloomberg.net.