FTSE 100 Edges Higher as Pound Weakens and Mitchells & Butlers Shines

Blue-chip index benefits from currency moves while hospitality stocks outperform; UK car production and property activity weaken

The FTSE 100 ticked higher on Friday, supported by a softer pound and standout results from pub operator Mitchells & Butlers. Although wider European markets traded lower, the UK’s benchmark index managed modest gains as investors digested fresh corporate news, economic data and continued volatility surrounding the upcoming Budget.

FTSE 100 Opens Slightly Higher as Sterling Slips

At 08:30 GMT, the FTSE 100 rose 0.1% while the pound slipped 0.2% to $1.32, offering a tailwind to internationally focused UK companies whose revenues are earned in foreign currencies.

Across Europe:

• Germany’s DAX fell 0.09%
• France’s CAC 40 dipped 0.05%

The cautious tone reflected investor hesitancy ahead of key economic announcements and ongoing concerns around global demand.

Mitchells & Butlers Surges on Strong Results

One of the day’s standout performers was Mitchells & Butlers (MAB). Shares in the pub, bar and restaurant group jumped 7.6% after the company reported stronger-than-expected annual results despite continued cost pressures across the hospitality sector.

Key highlights:

• Adjusted operating profit up 5.8% to £330m, ahead of forecasts
• Total revenue rose 3.9% to £2.71bn
• Like-for-like sales up 4.3%, outperforming the broader market
• Food and drink sales each rose 4.0% year-on-year
• Operating margin improved to 12.2%, up from 12.0%

With brands such as All Bar One, Toby Carvery and Harvester, the group delivered strong growth in both food and beverage sales despite inflationary pressure. Investors interpreted the results as a sign of continued resilience in the UK eating-out market.

UK Car Production Hit by JLR Cyberattack

UK car manufacturing slumped 23.8% in October, with total output falling to 59,010 vehicles. The sharp decline was mainly driven by the severe cyberattack affecting Jaguar Land Rover, the country’s largest carmaker.

Industry reports described the incident as “unprecedented”, noting that the disruption is likely to affect production figures into the final quarter.

BoE’s Greene: Energy Bill Cut Won’t Shift Inflation Outlook

Bank of England policymaker Megan Greene said the Government’s recently announced energy bill reduction is unlikely to have a significant long-term impact on inflation.

Greene noted:

• The move may lower prices temporarily
• It is “a one-off” and unlikely to meaningfully shift inflation expectations
• Policymakers may “look through” the reduction when assessing medium-term pressures

Her comments added to expectations that interest rates will remain elevated for longer.

Housing Market Slows as Buyers Await Budget

UK home sales fell 4% in the four weeks to 23 November, with buyer demand down 12% year-on-year, according to Zoopla.

Key trends:

• Buyers paused activity amid fears of higher property taxes
• London and the South saw the first price declines in over 18 months
• The national average house price rose 1.3% year-on-year to £270,200

Zoopla said increased housing supply and Budget uncertainty have tilted negotiating power back to buyers.

Sources: (Investing.com, Reuters.com)