FTSE 100 Live: Blue-chips slump as bond market flexes muscles, JMAT soars

• FTSE 100 falls 47 points 
• Bitcoin hits new high of $111.7K
• BT results disappoint, easyJet H1 numbers too
• Johnson Matthey soars on ma deal

4:59pm: FTSE closes lower

The FTSE 100 closed down 47 points, or 0.54%, at 8,739.

London-listed stocks bore the brunt of the selling, particularly among consumer-related sectors. Housebuilders and retailers led the declines, reflecting renewed investor concern over the health of the consumer economy. The broad-based pullback suggests profit-taking is setting in after recent gains, amid growing caution over macroeconomic risks.

4.13pm: FTSE 100 giants all in the red

The FTSE 100 is down 0.8% as we amble towards the end of the session, with the FTSE 250 similar. 

All but one of the Footsie's 12 largest stocks are in the red, led by oil giants Shell and BP, while miner Rio Tinto is another down more than 1%. Rolls-Royce, up 1.4%, is the exception. 

At the top end, insurers Hiscox and Beazley are top and third on the leaderboard. Rising bond yields, as have been seen in recent days, boost investment income – and insurers sit on large bond portfolios. So, when yields climb, the coupons on new purchases rise too.

Other risers include US-focused investment trust Pershing Square Holdings.

BT is up 2.6%, a turnaround from its earlier fall on the back of this morning's full-year results. 

M&S and JD Sports are up, with the former still picking up as investors and analysts review its results yesterday, while JD has been given a boost by Nike's planned price hike.  

Housebuilders are among the fallers, perhaps a side-effect of rising bond yields.

Among the mid-caps, Johnson Matthey is up 31% after it said earlier that it has agreed to sell off its catalytic converter business. 

Across the pond, Wall Street is mixed again, with the Nasdaq up 0.5%, the Dow Jones down 0.2% and the S&P 500 just below flat. 

3.53pm: Barclays pushes back BoE rate call

Barclays no longer expects the Bank of England to cut interest rates at its next meeting in June.

Having previously forecast a quarter-point cut next month, it now predicts there will be cut in August, November this year and February 2026, taking the base rate to 3.5%.

"A revised inflation forecast and cautious tone from policymakers in the last fortnight" has led Barclays to change its call, said economist Jack Meaning.

Following this month's monetary policy report two weeks ago, Meaning's team had argued that an undershoot of wage growth and inflation relative to the MPC's modal forecast were "necessary conditions" for a rate cut in June.

Subsequently, there has been an undershoot in wage growth, CPI inflation surprised us to the upside, notably with services inflation higher. 

"Processing this information has led us to revise up our inflation forecast, and it is now more aligned in the coming months with the MPC's own modal expectation... We therefore do not think that a sufficient undershoot of inflation will be realised," the economist said.

3.14pm: Phoenix Group reportedly becoming Standard Life

Phoenix Group Holdings PLC (LSE:PHNX) may rebrand itself as Standard Life, Sky News has reported, which has not been approved by the board.

The FTSE 100 group, which acquired the Standard Life brand four years ago from Aberdeen Group PLC (LSE:ABDN), has been "drawing up plans" to swap to the 200-year-old brand.

A Phoenix spokesman told Sky that the Standard Life brand is already being used across three markets, while at its recent AGM articles of association were changed to allow a rebranding without shareholder approval.

"This board approval hasn't happened," they noted. Yet.

2.47pm: US stocks mixed

It's a mixed open for US stocks, with the Dow Jones and S&P 500 both marginally in the red, while the Nasdaq is up 0.2%. 

MicroStrategy is up 4% on bitcoin's new all-time high. Nike is up over 1.7%, top riser in the Dow, after its price rise.

Enphase Energy, down 16%, is among those expected to be hit by Trump's bill. 

Back in London, the FTSE 100 ha headed lower, down 0.95%. European markets are generally lower, with the DAX down 0.8% and the CAC losing 1.2%. 

1.30pm: Man Utd in the red

Shares in Manchester United Plc (NYSE:MANU) were down over 5% in US pre-market trading after the English football club lost to Tottenham Hotspur last night in the Europa League final.

The loss meant Man U missed out on a place in the Champions League money-spinner next season.

Currently placed in the bottom half of the Premier League, the Red Devils will not get to enjoy any European competition in the 2025/26 season, which will hit ticket and sponsorship revenues.

12.27pm: Stocks in synch with bonds as US passes tax breaks bill

After early losses for the FTSE 100 had started to be trimmed towards the end of the morning, as the clock ticked through the midday mark the index has headed lower again. 

The moves have been almost perfectly in synch with UK and US bond yields, which were easing off until about 10 minutes to midday when they jagged higher again. 

This came just as the lower House of Congress passed Donald Trump's 'one big beautiful' tax cut bill by a single vote. 

US futures are mixed, with the Dow Jones just below flat, those for the S&P 500 up 0.1% and the Nasdaq up 0.3%.

According to a report from AP, House Republicans "stayed up all night to pass their multitrillion-dollar tax breaks package, with Speaker Mike Johnson defying the skeptics and unifying his ranks to muscle President Donald Trump’s priority bill to approval".

Under pressure and last-minute concessions from Trump, holdouts in the party dropped their opposition to salvage the bill.

The House launched debate before midnight and by sunrise the vote was called, 215-214, with the bill now going before the Senate.

12.02pm: UK manufacturing sector to remain 'dismally weak for some time'

UK manufacturing activity is expected to remain subdued for some time, says economist Elliott Jordan-Doak at Pantheon Macroeconomics, following the PMI and CBI surveys today. 

"The UK’s trade deal takes the worst case scenario for exporters off the table, but still leaves duties to the US higher than they were before the deal was struck," he says.

What’s more, he adds that London's deal with Washington serves as a "poor blueprint for future deals the US might strike" due to the US’s trade surplus with the UK.

The fundamental consequences of tariffs such as dampening growth, raising prices and curbing productivity are "all likely" to still apply to the UK’s export partners by the end of the tariff reprieve, he says.

"We also see global uncertainty prevailing over the course of the US administration’s tenure, which will weigh on global growth."

Some of the details in the CBI’s survey for April "jar" with the flash manufacturing PMI, however, with the CBI finding firms more pessimistic on their expectations of future growth over the next three months, contrasting with the PMI’s future output index improving in May to a three-month high.

The CBI’s survey also points to the pace of price growth increasing, while the PMI’s input price balance fell sharply in May.

"The CBI’s price balance has a decent track record of anticipating core producer output inflation... so its increases in recent months represent point to rising producer prices."

All told, Jordan-Doak is "reluctant to read too deeply" into the granular detail of the CBI survey this month as it is "an erratic survey at the best of times".

"We continue to take a generalised steer from the output balance however, which continues to point to dismally weak activity within the manufacturing sector."

11.49am: High UK govt borrowing makes tax cuts likely 

A round of tax hikes in the Autumn Budget "looks likely", says Thomas Pugh, economist at RSM UK, after the public sector net borrowing figures earlier.

While there was good news that borrowing in the 24/25 fiscal year was revised down, the public finances are "in a pretty dire state going into what is likely to be a much tougher Q2 and second half of the year for the economy".

Looking ahead to the budget in October, Pugh says the persistent over-borrowing and underperformance of the economy "means some sort of fiscal consolidation is starting to look inevitable".

"Given the recent indications that there will be some sort of a U-turn on the cuts to winter fuel payments and the difficulty the government has had in getting even tiny reductions in welfare spending through parliament, it feels like any fiscal consolidation will come from higher taxes rather lower spending.

"Indeed, we expect a combination of higher taxes and slightly higher borrowing at the next budget."

Pugh concludes by saying that the good news is that with interest rates are likely to be around 4% at the time of the Budget, so there is "plenty of scope for the Bank of England to cut rates to offset the impact of any fiscal consolidation on the economy".

11.20am: Comments on pensioners' winter fuel payments

PM Keir Starmer announced a partial U-turn on the winter fuel allowance. 

The pension top-up, worth £300, became means-tested last year.

But Starmer said the government would look at how more pensioners could become eligible for the payments, saying it would be looked at as part of a fiscal event.

PensionBee's chief business officer, Lisa Picardo, said last year's move to limit these payments to only the very poorest retirees "raised significant concerns about the well-being of those who exist on modest retirement incomes set against the backdrop of the cost-of-living crisis".

She called for detailed information on the revised eligibility criteria and implementation timelines to be shared as soon as possible.

"Transparent communication is essential to ensure that pensioners can make informed decisions about their finances, and to restore trust in the systems designed to support them."

Helen Morrissey, head of retirement analysis at HL, said that while detail is still scant, it "could include a lowering of thresholds to enable more people to qualify".

She added: "However, as yet the change is not set in stone, and we do not know what it might look like. In addition, any change would not be announced until the Autumn Budget at the earliest. In the meantime, it is important that if pensioners feel that they might be eligible for Pension Credit that they put in a claim."

11.14am: More weak industrial data

More UK manufacturing data is out, via the CBI’s Industrial Trends survey, showing output volumes falling at the steepest pace since the summer of 2020 in the three months to May.

Industrial firms are pessimistic about the short-term outlook too, with output expected to fall further over the three months to August.

The CBI report showed the total orders balance fell to -30 in May from -26 in April, below the consensus forecast of -24.

"Total order books weakened marginally in May, relative to April, while export order books improved from a sharply negative reading last month," the CBI said. 

Both total and export order books were "well below" their long-run averages.

10.56am: Nike price hike helps JD bounce back

Shares in JD Sports Fashion PLC (LSE:JD.) have strutted to the top of the FTSE 100 leaderboard, up 4%, on news that Nike Inc (NYSE:NKE, ETR:NKE) plans to raise prices from this Sunday.

The UK high street retailer, which is the US sportwear brand’s largest stockist in the country and a major partner in the US via its Finish Line and Hibbett Sports chains, was recovering some ground after a 6% drop on Wednesday, when it issued a disappointing trading update and warned that tariffs were weighing on its business.

Nike said prices will rise by up to $10 on most shoes retailing above $100, while clothing and equipment will increase by between $2 and $10.

Good news for customers who wanting the snazziest trainer models, as the reports from CNBC and Footwear News suggested that flagship models such as the Air Force 1 and the Air Jordan range, items retailing for under $100 and children’s products will be excluded from the price rises.

10.15am: Impact on UK economy of PMIs

On the PMI, market analyst Joshua Mahony at Scope Markets says: "In the UK, the services sector pushed back into expansion territory, reversing last months concerning slump into contraction.

"While the manufacturing sector remains an ongoing concern, with the 10% tariffs on US exports doing little to lift a sector that already struggled for momentum.

"Notably, this morning saw the latest net migration figures, with the 2024 figure of 431k coming in 50% below the 2023 number of 860k. This could have significant political implications and Starmer will undoubtedly highlight that efforts to bring down migration are working.

"However, from an economic perspective, it is clear that migration has been utilised as a driver of growth, and thus any significant decline in population growth could have implications for UK output going forward."

Matthew Ryan, head of market strategy at Ebury, says the economy "looks destined to slow abruptly in the second quarter of the year, following an impressive rebound in the first three months of 2025", with the composite PMI remained stuck below the level of 50 for the second straight month, following what he calls stagnation in the services sector and a sharp downturn in manufacturing.

"While concerns surrounding US tariffs may be partly weighing on business confidence, we think that it would be far too simplistic to merely lump the blame on President Trump’s doorstep.

"We see the April hike to business tax rates and the national minimum wage as far more pressing issues for British firms, which have been saddled with hefty additional costs at a time when inflation remains high and global uncertainty is on the rise.

"We think that there are reasons for cautious optimism, however. Labour’s push for closer ties with the European Union could provide a fillip for growth, and the UK economy appears well shielded from the direct impact of the tariffs given a lack of dependence on the export of goods.

"Sterling should be well placed to perform well in this environment, and it remains one of our favoured major currencies in 2025.”

9.40am: UK PMI mixed

'Flash' purchasing managers' index surveys are in for the UK for mid-May.

The services PMI rose to 50.2, up from 49.0 in April and slightly above the forecast 50.

The manufacturing PMI fell to 45.1 from 45.4, below the forecast 46.1. 

Putting them together, with a bigger weighting for the larger services sector, the preliminary UK May composite PMI rose to 49.4 from 48.5, but below the forecast 49.3 due to the fall in manufacturing. 

9.25am: It's the bonds, stupid

Stock markets are "starting to wake up to the strife in bond markets", says market analysts Neil Wilson at Saxo UK.

"Trouble has been brewing in the bond market for weeks and now it's spread to the stock market.

"Worries about the US fiscal position and economy, with Donald Trump's 'big, beautiful' tax bill about to be signed that will raise debt and possibly inflation, as well as a weak 20yr auction, pushing bond yields higher.

"Stocks fell as investors realised this is not a drill – as heard on the floor earlier this week, they will break the equity market to save the bond market.

"The bond market is starting to flex its intimidating muscle because a) a tax bill will raise debt and b) the US economy is looking wobbly – Conference Board leading economic index fell to its lowest level in 11 years."

Gold and bitcoin have rallied, meanwhile, with the former at $3,323, not far off its record high from last month, while the cryptocurrency has notched a new all-time high, while the US dollar sold off yesterday and remains weak this morning.

"Investors are pushing back against the tax and spending plans by the US administration – the bond vigilantes are only ever sleeping lightly. This is not just a US problem – we have seen incredibly weak bond auctions in Japan this week too," says Wilson. 

He points out that the UK has the same problem, with figures from the ONS this morning showing borrowing at the fourth-highest April level since monthly records began in 1993. UK gilt yields have continued to tick up this morning.

Jim Reid at Deutsche Bank says that concerns have been mounting about debt sustainability over the past 24 hours but "sensible people have been worried about debt sustainability for years".

"Indeed if you'd have told anyone 10-20 years ago that the US could comfortably fund 7% mid-cycle deficits in recent years then most would have been incredulous at the prospect."

"So we could have sustainability fears for years to come before an inevitable accident or event happens. However it's fair to say that events in 2025 have brought forward any day of reckoning."

Yesterday saw the 30yr Treasury yield close above 5% for the first time since October 2023 and only 2bps away from its highest level since 2007.

He says yields were sent higher after a "soft" 20yr Treasury auction, where bonds were issued 1.2 basis points above the pre-sale yield, which "ended a pattern seen in the previous two sessions of an early Treasury sell-off reversing during US trading hours". 

9.10am: UK stocks mostly in the red 

The FTSE 100 is lumbering along in the red again, down 0.6%, with less than 15 of the index constituents in positive territory. 

Bottom of the fallers are Intertek Group, DCC, BT, Bunzl and Whitbread, with easyJet not far behind. 

Its mid-cap sibling, the FTSE 250 is also lower, down 0.5% with the losers led by Bloomsbury Publishing, down 16% on the back of its results that showed flat organic growth and a 22% fall in profits.

The company also announced that the current group finance director is to step down from her role and the search for her replacement has started.

Analyst Jessica Pok at Peel Hunt says: "Upcoming catalysts such as Sarah J. Maas’s new book and the Harry Potter TV series could further drive Consumer performance, which we believe are not yet reflected in market expectations."

Looking across to the Continent, Germany's DAX and France's CAC are both down 0.8%, with other benchmarks in similar territory.  

8.51am: UK public sector borrowing

UK government borrowing figures today show a rise to £20.2 billion of public sector borrowing in April, up £1 billion from a year ago and the fourth-highest April borrowing figure since monthly records began in 1993.

Public sector net debt excluding public sector banks was provisionally estimated at 95.5% of gross domestic product (GDP) at the end of April, which was 0.7 percentage points more than a year ago. As a reminder, these are levels that were last seen in the early 1960s.

A new estimate was also provided by the Office for National Statistics for the current budget deficit, which covers borrowing to fund day-to-day public sector activities. This is now estimated at £70.3 billion for the year to March, down £4.3 billion from the initial estimate in April, but still £9.6 billion higher than the £60.7 billion forecast by the Office for Budget Responsibility.

Latest receipts data close to forecast – our monthly commentary on the public finances will be published later this morning ???? pic.twitter.com/KC0D2lKiFt

— Office for Budget Responsibility (@OBR_UK) May 22, 2025

8.40am: Mid-cap risers

Johnson Matthey PLC (LSE:JMAT) is a big riser on the FTSE 250 as it released full-year results that beat at the earnings per share level, and also announced the disposal of its Catalyst Technologies division for £1.8 billion on cash and debt-free basis to Honeywell International.

The transaction is expected to deliver net sale proceeds of circa £1.6 billion to the group, of which it says it will return £1.4 billion to shareholders when the deal completes, expected in the first half of 2026.

Elsewhere in the mid-cap space, QinetiQ Group PLC (LSE:QQ.) is up 4.3% as the defence technology group said it has "taken decisive action" to restructure the business for growth.

It also announced a five-year extension to its long-term partnering agreement (LTPA) with the UK's Ministry of Defence worth £1.54 billion, which increases its total order backlog to roughly £5 billion. 

8.15am: FTSE 100 falls at open

The FTSE 100 dropped almost 50 points in opening trades, pulled lower by BT Group, easyJet and oil giants Shell and BP.

BT and easyJet fell 4.1% and 2.9%, respectively, as investors do not seem to have liked the look of their results. 

Shell and BP are down as oil prices are knocked lower as the Opec group of oil producers proposes increasing output.

Brent crude is down 1.7% to $63.8 a barrel.   

7.58am: easyJet losses increase

Half-year results from easyJet PLC (LSE:EZJ) are in too, showing larger losses than this time last year - but the budget airline says current bookings put it on course to hit full-year market forecasts.  

Pre-tax losses came in at £394 million for the six months to 31 March, which was 9% larger than a year ago but marks a slight improvement when adjusted for Easter timing and investments into longer leisure destinations.

Losses were larger despite total cost per kilometre (CASK) decreasing 5%, with CASK excluding fuel down 4% and fuel CASK down 8%.

For the full year, easyJet expects ASK capacity growth of around 8% and flat CASK ex fuel. The third quarter is 80% booked and the fourth is at 42%, both ahead of this time last year. 

7.37am: BT results in line 

BT Group PLC (LSE:BT.A) has raised its target for rolling out full-fibre broadband as it posted full-year results that were bang in line with expectations in most measures. 

For the past year, the FTSE 100 group reported a 1% rise in adjusted EBITDA to £8.2 billion for the year to 31 March, as cost savings helped offset a 2% fall in revenue to £20.4 billion.

The company cited lower international and handset sales as the main drivers of the revenue decline, though both revenue and EBITDA were as the market expected. 

7.21am: Bitcoin surges to new ATH

Bitcoin has hit a new all-time high, topping $111,000 for the first time. 

The largest cryptocurrency has risen 2.6% over the past 24 hours and surged over 8% in the past week and 26% for the month.

Other cryptos are up but not at highs.

Bitcoin is fast approaching $112,000, with analysts at Deutsche Bank noting that the gains are likely to be boosted by hopes increasing that Stablecoin regulation will soon pass after the advancement of legislation yesterday.

"The US debt instability has probably helped too."

7.15am: FTSE 100 predicted to see sharp fall

A sharp fall is expected for the FTSE 100 on Thursday morning, following a sell-off on Wall Street overnight sparked by rising global bond yields.

London's blue-chip index is predicted on the futures market to drop 43 points at the open, after it added five points yesterday to close at 8,786.46 in a five-day winning run. 

Also this morning, there are UK public sector borrowing numbers out, showing a £1 billion increase in April compared to last year, in what is the fourth highest for the start of the financial year in 30 years.

Last night, the main US stocks indices were all sent steeply lower, with the Dow Jones down 1.9% for its worst session in a month, while the S&P 500 dropped 1.6% and the Nasdaq 1.4%.

Asia is a sea of red this morning too, with Japan's Nikkei and India's Sensex down 0.8% and 0.9%, though the domestically focused Shanghai Compsite is down less than 0.1%. 

5.15am: What to watch on Thursday 22 May

Shares in easyJet PLC (LSE:EZJ) and other airlines lurched lower after Donald Trump’s initial tariff threats but the budget carrier is now over 20% higher than before the ‘liberation day’ announcement, even though some analysts see some turbulence in the summer months.

Since rival Ryanair announced this week that fares are rising again, easyJet's shares have added another 3.5%. 

Elsewhere, BT Group PLC (LSE:BT.A) shares have also rallied in 2025, outperforming the rest of the telecoms sector, but some believe this rally is not supported by fundamental, while this week the group found itself embroiled in a new pay dispute with managers.  

Property developer British Land Company PLC (LSE:BLND) is expected to report strong full-year results, with solid capital growth, driven by robust performance in retail warehouses and City office assets.

In the defence sector, QinetiQ Group PLC (LSE:QQ.) also reports final results, but these come after it warned in March that growth would be slower than expected and at lower margins, with a £140 million write-down also to be included due to restructuring and "challenging" conditions in the US market.

Analysts said there would be an 'uncertainty overhang' until the company reassured otherwise.

Among the macroeconomic news, there will be UK public sector borrowing and the 'flash' updates of the purchasing managers' index (PMI) surveys for the services and manufacturing sectors for the UK and other major economies. The CBI also puts out its industrial trends report and in the US there will be weekly jobless claims and home sales.

Several Bank of England rate setters are speaking too, including deputy governor Sarah Breeden.

Announcements due:

Trading updates: ConvaTec, Hill & Smith, Intertek, Pershing Square Holdings

Interims: easyJet

Finals: Bloomsbury Publishing, British Land, BT Group, Investec, QinetiQ, Tate & Lyle

Ex-dividends: Imperial Brands, Bunzl, Kingfisher, DCC, Whitbread ex-divs to reduce FTSE 100 by 3.68 points

Overseas earnings: Analog Devices, Dollar Tree, Intuit, Ralph Lauren

Economic announcements: Flash Manufacturing and Services PMIs (UK, EUR, US), CBI Industrial Trends (UK), Initial Jobless Claims (US), Existing Home Sales (US)