January saw a 0.2% expansion in gross domestic product (GDP), a rebound from the previous month's 0.1% contraction. Despite this, the UK faced a recession in the final quarter of 2023, with GDP falling by 0.3%. Industrial production, however, dipped by 0.2% in January, missing forecasts of a steady performance. The trade deficit also widened, with imports outpacing exports. 

US CPI came in slightly ahead of estimates in February (+3.2% vs 3.1% expectations), due to rising energy prices and rents. The market didn’t react much yesterday and Interest rate expectations were little changed. The FTSE 100 rose 1% on Tuesday, led by banks and miners.

In corporate news, British American Tobacco (BAT) has sold a portion of its stake in Indian conglomerate ITC for over $2 billion, aiming to use the proceeds for share buybacks through December 2025. BAT's divestment reduces its holding to 25.5% but remains a significant shareholder. The company plans to initiate a £700 million buyback in 2024.

Balfour Beatty reported a drop in annual profit but increased revenue, leading to a raised dividend and a £100 million share buyback plan. The infrastructure firm's order book strength underpins confidence in future cash generation and shareholder returns. Promotional products firm 4imprint saw a 36% surge in annual pretax profit and raised its final dividend by 25%. The company's performance aligns with board expectations and forecasts, with confidence in continued market share growth.

Metro Bank reported a smaller annual loss, supported by cost-cutting efforts and stabilized outflows after a last-minute capital injection.

Iron ore miner Ferrexpo needs more time to finalize full-year results, and Liontrust Asset Management stated it is not in talks to acquire rival Artemis.

In other updates, the UK is set to sign a trade cooperation agreement with Texas, aiming to boost investment without a broader free trade agreement with the US.

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