The FTSE 100 closed down 2% on Friday after the U.K.'s Chancellor Kwasi Kwarteng outlined a 'mini budget' which included the country's biggest tax cuts since the early 1970s. The pound fell and government bond yields rose following the move. "The FTSE 100 has also slipped back sharply, dropping below 7,000 for the first time in over six months, with all sectors except healthcare in the red, and energy and basic resources leading the losses, over rising global recession risk," CMC Markets UK's chief market analyst Michael Hewson says. JD Sports led the fallers, ending down 6.7%, followed by Harbour Energy, down 6.1%, and then NatWest Group, which ended down 6.1%.

Companies News: 

Smiths Group FY 2022 Pretax Profit Fell on Higher Costs, Missed Consensus

Smiths Group PLC said Friday that pretax profit for fiscal 2022 fell after booking higher costs, missing consensus, and that strong order books and its leading market positions support sustained momentum.

--- Group Hangs Up 'for Sale' Sign; Withdraws Guidance Group PLC said Friday that it has started a formal review of its options, including a sale process, and withdrew its full-year guidance due to a deterioration of trade and the current financial position of the group.


Crossword Cybersecurity Raises GBP6.3 Mln in Discount Placing

Crossword Cybersecurity PLC said Friday that it has raised 3.6 million pounds ($4.1 million) from an oversubscribed fundraising, which it will use to increase sales and marketing, and for product development, general marketing and working capital purposes.

--- Swung to FY 2022 Pretax Profit; Backs FY 2023 Guidance PLC said Friday that it swung to a fiscal 2022 pretax profit as revenue rose significantly, while leaving its fiscal 2023 guidance unchanged, and that it reintroduced dividends.


B90 Holdings 1H Pretax Loss Narrowed on Website Launch, Acquisition

B90 Holdings PLC said Friday that its first-half pretax loss narrowed as revenue rose on the back of a website launch and an acquisition, and that July and August revenue was in line with the second quarter.


Amigo CEO to Step Down; CFO Danny Malone Named as Successor

Amigo Holdings PLC said Friday that Chief Executive Gary Jennison is stepping down and will be succeeded by Danny Malone, the company's chief financial officer.


Colefax Launches Buyback Program of Up to GBP5.4 Mln

Colefax Group PLC said Friday that it is launching a share buyback program of up to 5.4 million pounds ($6.1 million).


7Digital Group Gets GBP500,000 Loan from Shareholder; Chairman Steps Down

7Digital Group PLC said Friday that it has agreed to a 500,000-pound ($562,700) loan from Magic Investments SA, a significant shareholder represented by Director David Lazarus.


easyJet Holidays Expects Pretax Profit of More than GBP35 Mln for FY 2022

easyJet PLC said Friday that its holidays business is expected to report a pretax profit of more than 35 million pounds ($39.4 million) in fiscal 2022 and is on track to deliver over GBP100 million of profit in the medium term.


ScS Group Names John Walden as Nonexecutive Chairman Designate

ScS Group PLC said Friday that John Walden has been appointed the group's nonexecutive chairman designate.


Revolution Beauty Auditor Won't Sign FY 2022 Report; Sees FY 2023 Results Missing Views

Revolution Beauty Group PLC said Thursday that its auditor BDO LLP has identified a number of serious concerns in its fiscal 2022 audit and is unable to sign the report, and it expects to miss fiscal 2023 market views.


Tern's Shares Fall on Significantly Widened 1H Loss

Shares in Tern PLC on Friday fell after the company reported a significantly widened loss for the first half of 2022.


More Acquisitions SPAC Conditionally Agrees on Reverse Takeover of Megasteel

More Acquisitions PLC said Friday that it has agreed on a conditional heads of terms to acquire Megasteel Ltd. in a reverse takeover, valuing Megasteel at between 49.5 million and 63 million pounds ($55.7 million-$70.9 million).

Market Talk: 

Weak UK PMIs Show Government Challenges in Achieving 2.5% GDP Growth Target

1034 GMT - The slip in the U.K. composite flash purchasing managers index to 48.4 in September took it further below the boom-bust level of 50 and sits comfortably with recent data that suggests the economy is already in a recession, Capital Economics assistant economist Olivia Cross says in a note. At face value, the composite PMI points to a fall in GDP of around 0.2% on quarter in 3Q, which would confirm that the U.K. economy is in a recession, Cross says. The U.K. PMI for September adds to evidence of weakening activity that will make it challenging for the government to achieve its target of 2.5% real GDP growth, even with the huge fiscal support announced. (

UK Growth Plan Will Help Shore Up Consumer Demand, British Retail Consortium Says

1032 GMT - The U.K. Chancellor's growth plan should help shore up consumer demand as the country heads toward a challenging winter, the British Retail Consortium says in a statement. Furthermore, the announcements on National Insurance and corporation tax will help shield customers from some of inflation's effects, it says. The BRC adds there wasn't a mention of business rates, which look set to go up by 10% next April. The increase will ultimately be passed through to families in the form of higher prices, BRC Chief Executive Helen Dickinson says. "There is still time for the government to act. Freezing the business rates multiplier will stimulate investment and will allow retailers to focus on what's important - keeping prices down for households," Dickinson says. (

UK Tax Cuts Might Hit Pound and Boost Inflation, Rates

1028 GMT - U.K. government tax cuts could hit the pound, increase inflation and lead to higher interest rates, Liberum Capital says. Ministers reportedly will scrap a planned corporation-tax increase, introduce VAT-free shopping for tourists and abolish the 45% higher rate of income tax. The cuts, likely worth some GBP50bn or more, could boost growth by some 0.5 percentage points in 2023, but won't be enough to avoid a recession, Liberum says. They're also likely to increase the government deficit materially, given a lack of spending cuts, the brokerage says. "This will put additional pressure on sterling and increase import-price inflation. The Bank of England may react to this with another outsized rate hike in November," Liberum analysts say in a note. (

UK Plan to End Banker-Bonus Caps May Boost Market Risks

1027 GMT - The U.K. government's decison to scrap caps on bankers' bonuses following the country's EU exit could re-introduce risks and practices that some believe led to the 2008 global financial crisis, a law firm says. Ministers plan to scrap an EU-wide cap limiting bankers' bonuses to up to 200% of annual salary. Incentivising sales staff with unlimited bonuses means they may pay less attention to issues such as internal compliance and risk policies and suitability of financial products for customers, commercial-dispute law firm Quillon Law says. "Re-introducing what is perceived as one of the more insidious elements of a culture that no-one wants to see return carries risks that incentivising the sale of financial products will always bring," Quillon Law's Michael Barnett writes. (


Contact: London NewsPlus;


(END) Dow Jones Newswires

September 23, 2022 12:33 ET (16:33 GMT)

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