The FTSE100 share index hit 9016.98 points at the start of trading in London, up about 0.2% today, taking its gains during 2025 to over 10%. That’s a new intraday high for the “Footsie” (as it is known in City circles). This year has already been a strong year for the Footsie, which has gained 10% since the start of this year. Stocks in London have benefited from some investors looking to diversify their holdings beyond the US market, due to concerns over Donald Trump’s policymaking. Growing confidence that Trump will back down and agree trade deals (the "Taco trade") has also helped markets since the president’s tariff U-turn in April. The FTSE100 has also benefited from the recent weakness of the pound, which pushes up the value of multinational companies with overseas earnings. More nervous traders will have found its defensive stocks attractive. The UK’s trade deal with the US has also bolstered confidence in British companies, at a time when Europe is being threatened with a 30% tariff from April. UK defence companies have had a strong year on the stock market, helping to push the FTSE 100 to a record high this morning.Defence contractor Babcock’s shares have risen by almost 120% this year, with BAESystems up 65%, as Nato members have agreed to increase defence spending.Engineering firm Rolls-Royce has gained 75%, as its turnaround plan has yielded results. AJ Bell investment analyst Dan Coatsworth says the UK has come out triumphant: "Not only has it got the framework of a (limited) trade deal in the bag, but its stock market has shown muscle in the wake of the EU worries. Its plethora of defensive industries have won over investors once again, with utilities, healthcare and grocers among the top risers on the FTSE 100. "The UK stock market is the calming cup of tea and biscuit in an uncertain world. There’s nothing fancy on offer, just reliable names that do their job day in, day out. That’s an underrated characteristic and a reason why investors are finally warming to the UK stock market’s appeal in 2025.” The futures market indicates the FTSE100 will open higher, over that 9,000-point mark. Troubled utility company Thames Water has reported a loss of over £1.6bn loss for last year, hours before its top executives are due to be grilled by MPs. Thames’s annual report, just released, shows it made a total loss before tax of £1.647bn million in the 2024/25 financial year, down from a £157m profit before tax in 2023/24. Thames blames this whacking loss on a range of ‘exceptional expenditure’, including fines imposed by the regulator and costs associated with its restructuring plan as the company tried to avoid collapse. The agenda • 9.30am BST: Chancellor Rachel Reeves to announce ‘Leeds’ reforms of financial services • 10am BST: The EFRA Committee will question Thames Water’s Sir Adrian Montague, Chris Weston, and Ian Pearson • 10am BST: ZEW index of eurozone economic sentiment • 10.15am BST: Officials from the Office for Budget Responsibility appear before the Treasury Committee • 1.30pm BST: US inflation report for June • 2:30pm BST: The Business and Trade Committee hold hearing with regulators, including FCA and Ofwat • Tonight: Mansion House speeches We'll be tracking all the main events throughout the day …
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