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London’s FTSE 100 underperformed European peers heading into Thursday afternoon, returning some of the advance it made after budget and as ex-dividend shares and a lack of US impetus kept a lid on the index. Financial markets in the US are closed on Thursday for Thanksgiving, and only return for an abbreviated trading day on Friday. The FTSE 100 index traded down 20.15 points, 0.2%, at 9,671.43. The FTSE 250 was up 88.79 points, 0.4%, at 21,974.31, and the AIM All-Share was up 3.09 points, 0.4%, at 746.35. The Cboe UK 100 was up 0.2% at 968.14, the Cboe UK 250 was up 0.7% at 19,085.98, and the Cboe Small Companies was up 0.3% at 17,377.65. In European equities on Thursday, the CAC 40 in Paris was marginally higher, while the DAX 40 in Frankfurt was up 0.2%. ‘European markets are showing a distinct lack of direction,’ Scope Markets analyst Joshua Mahony commented. ‘Traders shouldn’t expect too much given a threadbare economic calendar and US Thanksgiving market closure.’ ‘Coming hot off the heels of a budget that undoubtedly hit working people despite pre-election promises, there is a feeling that we have finally overcome a hurdle that has been looming large over the UK economy and markets for months. Notably, we have now seen businesses respond, with some more optimistic than others.’ UK Chancellor Rachel Reeves set out the gambling duty changes in her autumn budget on Wednesday. From April next year, there will be an increase in remote gaming duty in the UK to 40% from 21% and abolition of bingo duty from its current 10%. From April 2027, a new rate of general betting duty for remote betting will be introduced at 25%, excluding self-service betting terminals, spread betting, pool bets and horse racing, replacing the existing 15% general betting duty. The UK government also announced a freeze in casino gaming duty bands in 2026 to 2027. The changes to gambling duties are estimated to raise £1.1 billion for UK government coffers by 2029 to 2030. Paddy Power-owner Flutter Entertainment estimated the impact of the higher taxes on its own adjusted Ebitda at $320 million in 2026 and $540 million in 2027. This will be offset by $85 million in mitigation in 2026 and $201 million in 2027, leaving a net negative impact on earnings of $235 million in 2026 and $339 million in 2027. Flutter shares were 1.4% higher, however. Evoke was down 6.5%, however, as the 888 and William Hill owner said its expects the tax measures to increase its duty cost by between £125 million and £135 million on an annualised basis, once fully implemented from April 2027. It expects a £80 million cost in 2026. Both estimates are before mitigation measures, which it expects to take away about 50% of the gross impact. Scope’s Mahony added: ‘However, the JPMorgan plans to build a three-million square foot ’landmark tower’ in Canary Wharf have been shaped as a vote of confidence in the pro-growth budget from Reeves. We are also seeing greater confidence that the Bank of England will respond with a rate cut next month, with measures taken to bring down household costs helping to lower inflation expectations. With that in mind, the weakness seen in the pound this morning should come as no surprise.’ Sterling traded at $1.3229 on Thursday afternoon, down slightly from $1.3232 at the time of the London equities close on Wednesday. The euro slipped to $1.1585 from $1.1598. Against the yen, the dollar fell to JP¥156.33 from JP¥156.35. Rabobank analysts commented: ‘The gilts market had taken comfort from Reeves’ reassurances that she would keep a tight grip on public finances, from the news of an increase in fiscal headroom and, during her speech, from the perception that most budget measures had already been outlined by the press. By the end of yesterday’s session, UK borrowing costs were a little lower and the pound a touch higher. ‘The gilts market could worry about the lack of ’upfront’ tax revenue, since the full impact of the chancellor’s tax hike measures are not due until 2029/30. In addition, business groups have started to lament the lack of pro-investment incentives in the budget and the potential negative impact of the high tax burden on consumption. Against this backdrop, we see little room for the pound to maintain its better tone.’ A barrel of Brent rose to $62.59 early Thursday afternoon, from $62.41 late Wednesday. Gold was down at $4,158.72 an ounce from $4,163.25. In London, stocks going ex-dividend kept a lid on the FTSE 100. 3i Group was down 1.1%, while Imperial Brands shed 2.9%. Among the 250s, Johnson Matthey fell 1.0% and Ithaca Energy gave back 3.7%. boohoo shares jumped 41%. It announced a new management incentive scheme as it said its turnaround is ‘well underway.’ The Manchester-based online retailer which trades under the Debenhams name said it has a ‘clear line of sight’ to the Debenhams brand delivering £1 billion gross merchandise value and £50 million plus earnings before interest, tax, depreciation and amortisation within three years. boohoo said group GMV, post returns, fell 23% to £406.9 million in the half year that ended August 31 from £529.7 million a year prior, with revenue also down 23% to £296.9 million from £385.4 million. Pretax loss narrowed to £2.5 million from £130.0 million, while adjusted Ebitda rose 5.3% to £20.0 million from £19.0 million at a margin of 6.7%, improved from 4.9%. boohoo’s new management scheme would see Chief Executive Dan Finley net a £148.1 million maximum should the share price reach 300p within 5 years. Chief Financial Officer Phil Ellis stands to get a maximum £14.8 million under the proposals. boohoo said the planned scheme would not need a shareholder vote at a general meeting. In supporting its decision, boohoo pointed to the action of ‘a major competitor who is a significant shareholder of Debenhams’, has sought to ‘disrupt the Debenhams Group’s growth strategy and operations’. AJ Bell analyst Dan Coatsworth commented: ‘Boohoo’s patience with major investor Frasers has reached breaking point. The online retailer’s implied hatred for the Sports Direct owner means it won’t seek approval from its broader shareholder base before implementing a new management incentive plan. ‘Frasers hasn’t been explicitly named in the commentary, but it’s easy to guess which shareholder it is referring to. Boohoo says that ’a major competitor’ and ’significant shareholder’ continues to seek to cause disruption. In essence, it implies that asking Frasers to vote on the new incentive plan would be pointless as the 29.7% shareholder might reject it, no matter the contents.’ Copyright 2025 Alliance News Ltd. All Rights Reserved.
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