London shares fell in early trading Monday as data showed Britain’s economy stalled in the third quarter.
At 0840 GMT, the FTSE 100 was down 0.2% at 8,066.81.
According to revised figures released by the National Bureau of Statistics, the economic growth rate was flat in the third quarter, a downward revision from the previous forecast of 0.1% growth.
The ONS also cut its April-June growth forecast to 0.4% from 0.5%.
The figures show no growth in the services sector in the latest quarter, with a 0.7% increase in construction offset by a 0.4% decline in production.
Liz McCune, head of economic statistics at the ONS, said: “The economy was weaker than initially expected in the second and third quarters of this year, with performance particularly weak for bars and restaurants, law firms and advertising. Ta.
“Household savings rates have fallen slightly in the recent period, but remain relatively high by historical standards. Meanwhile, real per capita disposable household income has not grown.”
Paul Dales, chief UK economist at Capital Economics, said: “Overall, these data suggest that after a strong first half of the year, the economy slumped in the second half due to lingering economic fallout.” said. Rising interest rates, weak overseas demand, and some concerns about the policies in the budget.
“Our hunch is that 2025 will be a better year for the economy than 2024. However, more recent data suggests there is not much momentum in the economy as the year ends.”
There was little news on the stock market, but insurance company Directline soared after agreeing to be taken over by rival Aviva for £3.75bn.
The offer values each DirectLine share at 275p, representing a 73.3% premium to the November 27 closing price of 158.7p.
Aviva said it plans to achieve pre-tax cost savings of at least £125m a year through job cuts, “economies of scale and increased efficiency”.
Matt Blitzman, senior equity analyst at Hargreaves Lansdown, said: “An early Christmas for Direct Line investors as Aviva’s £3.7bn takeover bid has been formally signed, sealed and delivered. The terms of the transaction have not changed from those originally proposed.” The market was announced earlier this month, and this festive confirmation upended expectations that many investors had already baked in, leaving few surprises under the tree.
“This transaction appears to strike a balance of value for both parties. Direct Line is a turbulent company with a steadily declining market share and a history of failures with previous management at the helm. Meanwhile, new management is working to steady the ship. Even they could not deny that Aviva’s proposal was a golden ticket that they would struggle to replicate on their own, although they expressed confidence in their own strategy. was too convincing to pass. Above.
“For Aviva, its price is at a bargain level, but its strategic potential could be the real crack. This transaction solidifies Aviva’s position as a champion.”This transaction not only strengthens our market advantage, but also provides an opportunity to accelerate Direct Line’s transformation while leveraging the efficiency gains that come with increased scale.” brings. The gift that keeps on giving. ”
market mover
FTSE100 (UK X) 8,066.81 -0.22%
FTSE250(MCX) 20,384.08 -0.33%
Techmark (TASX) 4,574.92 -0.10%
FTSE 100 – Riser
Airtel Africa (AAF) 107.00p 1.61%
Standard Chartered (STAN) 985.60p 1.40%
Smurfit Westlock (DI) (SWR) 4,189.00p 1.06%
BAE Systems (BA.) 1,166.00 pence 0.87%
HSBC Holdings (HSBA) 767.30p 0.85%
AstraZeneca (AZN) 10,318.00p 0.60%
easyjet (EZJ) 574.60p 0.52%
Pershing Square Holdings, Inc. NPV (PSH) 3,724.00p 0.49%
Rolls-Royce Holdings (RR.) 577.60p 0.38%
Barclays (BARC) 260.95p 0.27%
FTSE 100 – Falls
St. James Place (STJ) 850.00p -1.51%
Experian (EXPN) 3,456.00 pence -1.48%
Entain (ENT) 697.60p -1.41%
Spirax Group (SPX) 6,855.00 pence -1.37%
Relux SPLC (REL) 3,581.00p -1.32%
WPP (WPP) 822.40p -1.30%
Ashtead Group (AHT) 4,967.00 pence -1.25%
Persimmon (PSN) 1,197.50p -1.16%
3i group (III) 3,507.00 pence -1.16%
JD Sports Fashion (JD.) 93.94p -1.12%
FTSE 250 – Riser
Direct Line Insurance Group (DLG) 250.60p 3.04%
Victrex plc (VCT) 1,076.00 pence 1.89%
Carnival (CCL) 1,922.50p 1.88%
Vesuvius (VSVS) 418.50p 1.70%
Enerjan (ENOG) 993.00p 1.43%
Cinchona Limited NPV (SYNC) 101.20p 1.40%
Asia Dragon Trust (DGN) 430.00p 1.18%
Vietnam Enterprise Investment (DI) (VEIL) 591.00p 1.03%
Indivia (INDV) 922.50p 0.87%
Discovery Group (DSCV) 717.00p 0.84%
FTSE 250 – Falls
Kainos Group (KNOS) 747.00p -3.24%
Oxford Nanopore Technologies (ONT) 139.70p -2.38%
Felexpo (FXPO) 100.40p -2.14%
Wood Group (John) (WG.) 63.90p -2.14%
Fidelity China Special Situation (FCSS) 214.50p -2.05%
SDCL Energy Efficiency Income Trust (SEIT) 53.70p -2.01%
Delivery Lou Class (ROO) 139.30p -1.97%
Aston Martin Lagonda Global Holdings (AML) 102.80p -1.91%
VinaCapital Vietnam Opportunity Fund Ltd. (VOF) 441.50p -1.89%
JP Morgan Emerging Markets Investment Trust (JMG) 107.20p -1.83%
