In the UK, the economy eked out a modest 0.1% growth in November 2024, missing the anticipated 0.2% mark. This uptick was largely thanks to the services sector. However, the economy remained flat over the three months leading to November, with a trade deficit widening to £3.8 billion. The Bank of England's Alan Taylor hinted at the possibility of significant interest rate cuts—up to six in 2025—to stave off a hard landing.
In corporate news, Safestore reported a whopping 92% increase in pretax profit to £398.6 million, despite a slight dip in revenue. The company credited its profit surge to gains from investment property revaluations. Meanwhile, Antofagasta forecasted copper production for 2025 to be between 660,000 and 700,000 tonnes, with a slight uptick in 2024 production.
Elsewhere, London's AIM market is facing headwinds, with more companies contemplating delisting or shifting to the main market due to falling valuations and tax rule changes. In 2024, 89 companies exited AIM, with only 18 new listings. The halving of inheritance tax relief has also prompted some AIM-listed companies to consider leaving.
In a strategic move, The People's Pension, one of the UK's largest independent master trusts, announced plans to significantly invest in private markets, aiming to allocate £4 billion by 2030. This aligns with the government's focus on economic growth and improving living standards in the UK.
Things to read today:
- Britain should stop pretending it wants more economic growth (Financial Times)
- Farewell to a mediocre president (Persuasion).
- Short-seller Nathan Anderson to close Hindenburg Research (Financial Times).