Barratt Redrow shares today fell in the FTSE 100 index after the housebuilder trimmed its dividend alongside weaker half-year results.
Today’s session also saw more selling of AI disrupted stocks including St James’s Place, Relx and Sage Group.
Meanwhile, Heathrow has reported more record figures as it seeks to keep its crown as Europe’s busiest airport.
FTSE 100 Live Wednesday
- Barratt Redrow profits fall
- AI disruption fears continue
- Heathrow passenger record
Market update: Wealth firms hit by AI fears, Barratt Redrow down 5%
10:05 , Graeme EvansSt James’s Place shares today slumped 10% in the FTSE 100 index as the wealth management sector became the latest casualty of AI disruption fears.
The selling, which also hit Schroders alongside AJ Bell, Rathbones and Aberdeen in the FTSE 250, followed the US-launch of Altruist’s AI tax planning tool.
Susannah Streeter, chief investment strategist at Wealth Club, said: "The worry is that this is just the tip of the iceberg and fresh efficiencies will be unleashed by AI to disrupt the financial advice and investment industry and reduce the fees which can be charged.
“As the AI cards are shuffled, the pile of potential losers is mounting up, and speculation about which sector will be hit next is rife."
Fears of AI disruption in the price comparison sector yesterday caused the shares of Moneysupermarket and GoCompare owner Future to fall 9% and 3% respectively.
They dropped another 1.7p to 151p and 10p to 433.6p in today’s session.
LexisNexis owner Relx, which fell sharply last week after Anthropic launched an AI-driven legal tech services tool, lost another 4% or 87p to 2059p.
St James’s Place slumped 151p to 1298p, while other AI-hit fallers included Experian and Sage following declines of 3% and 2% respectively.
The support of mining and oil stocks including BP, Rio Tinto and Endeavour Mining meant the FTSE 100 index still rose 27.90 points to 10,381.74.
Barratt Redrow fell 5% or 19.9p to 369.1p after the housebuilder cut its dividend and posted a fall in half-year profits amid subdued market conditions.
Price comparison AI fears continue to impact Mony and Future
09:38 , Graeme EvansFears of AI disruption in the insurance price comparison sector today continued to weigh on the shares of Moneysupermarket and the GoCompare owner Future.
Mony Group and Future closed 9% and 3% lower last night after Insurify launched an app enabling users to research and compare car insurance directly in ChatGPT.
Mony fell another 1.7p to 151p and Future dropped 2% or 10p to 433.6p in today’s session.
Berenberg believes the sell-off has been overdone, adding that the market structure is different in the US versus the UK.
The City bank said: “While this is confirmation of the way the price comparison website market will likely evolve, concerns about how agentic AI models would affect consumer journeys in insurance have been around for a while and are already partly reflected in valuations.”
In a note on Mony, Panmure Liberum pointed out that the UK price comparison sector is already very competitive.
It said: “Irrespective of whether or not price comparison is under threat from AI, yesterday’s news should not change the narrative on the stock in the slightest – though it does underscore the indiscriminate selling of anything even tangentially linked to AI at the moment.”
Profits surge at Imperial Leather firm, shares jump 9%
08:48 , Graeme EvansPZ Cussons, whose brands include Imperial Leather and Carex, today said its sales were boosted by higher prices and stronger Christmas gifting.
Total revenues increased by 9.5% on a like-for-like basis in the six months to November 29, despite highly competitive UK market conditions
Sales growth was offset by a decline for self-tanning brand St Tropez, with sales down by 30% globally when excluding the US.
Shares rose 9% or 7p to 87.3p after the FTSE All-Share firm reported a 50.5% jump in half-yer pre-tax profits to £29.8 million.
FTSE 100 opens higher, Barratt Redrow down 7%
08:15 , Graeme EvansThe FTSE 100 index has risen 0.4% or 45.89 points to 10,399.73, fuelled by another strong session for commodities-focused stocks.
Glencore rose 4.25p to 500.7p, Rio Tinto lifted 2% or 133p to 7216p and Shell added 27p to 2859p.
AI disruption dealt another blow to the data stocks as LexisNexis owner Relx fell 3% or 76p to 2070p and Sage dropped 26.2p to 819.6p.
London Stock Exchange moved the other way, lifting 2% or 122p to 7490p after the Financial Times reported stake buiding by activist investor Elliott.
Barratt Redrow shares fell 7% or 25.5p to 363.5p following the release of half-year results, which includes a 13.6% drop in adjusted profits to £199.9 million.
The selling follows the housebuilder’s decision to cut its interim dividend from 5.5p a share to 5p.
Richard Hunter, head of markets at Interactive Investor, said: “A challenging growth outlook amid the economic backdrop will likely lead to limited growth in the year to come, and the dividend cut and contrast to a strong update from Bellway yesterday have weighed strongly on the share price at the open.”
US jobs report set to provide rate cut clues
07:56 , Graeme EvansUS markets will get a steer on the outlook for interest rates when the monthly non-farm payrolls report is released later today.
Hargreaves Lansdown analyst Derren Nathan said: “Forecasts are for an increase in hiring from 50,000 in December to 70,000 in January.
“That’s still a relatively light number, but anything lower could see markets gain more confidence in the scope for three rate cuts this year.”
The report was delayed from last Friday because of the partial government shutdown.
Deutsche Bank economists see non-farm payrolls growth of 75,000, with the unemployment rate staying at 4.4%.
The bank adds that today’s report will include the annual benchmark revisions to payrolls, which could rewrite some of the trends over recent history.
Heathrow growth continues but may lose crown as Europe's busiest
07:40 , Graeme EvansHeathrow has recorded its busiest January ever after 6.5 million people travelled through the airport last month, a rise of more than 2% on the same time last year.
The west London hub saw multiple peak days of over 250,000 passengers, surpassing the previous January record of 246,00 despite adverse weather across the US and Europe.
The airport, which handles more than 70% of the UK's non-EU air cargo exports by value, dealt with almost 125,000 tonnes of cargo in January.
It recorded 84.48 million passengers last year, just ahead of the annual figure for Istanbul airport.
Chief executive Thomas Woldbye said: “We remain Europe's largest airport, but latest figures show we may lose that position in 2026 and we cannot keep driving growth for the UK economy without more capacity.
“That's why Heathrow expansion is so critical.
“The decisions ministers and the CAA take this year are essential to enable the delivery of the UK's flagship growth project, secure planning permission by 2029, and ensure the UK has the flight and cargo capacity that it deserves."
Barratt Redrow profits fall amid subdued conditions
07:13 , Graeme EvansBarratt Redrow today reported a “resilient performance in a subdued market” after adjusted profits fell 13.6% to £199.9 million in the six months to 28 December.
The builder delivered 7444 home completions in the period and expects a total of between 17,200 and 17,800 across the year, which is in line with previous guidance.
Chief executive David Thomas said a strong land bank, solid forward sales and synergies following Barratt’s merger with Redrow left the business well placed for medium-term growth.
However, he added: “While progress made on planning reform is encouraging, a stable and supportive demand environment is essential to enable increased delivery at scale across the sector."
The group cut its interim dividend from 5.5p a share to 5p.
FTSE 100 seen higher, China inflation rate dips
07:01 , Graeme EvansThe FTSE 100 index is seen putting back yesterday’s losses, despite a largely disappointing performance for Wall Street markets overnight.
The Dow Jones Industrial Average rose 0.1% to set a new record but the S&P 500 index fell 0.3% and the tech-focused Nasdaq Composite lost 0.6%.
The FTSE 100 index fell 0.3% yesterday to close at 10,353.84, with BP shares down 3% after the oil group put share buybacks on hold.
In contrast, the midcap FTSE 250 index rose 0.6%. IG futures trading suggests that the FTSE 100 will open 0.3% or 27 points higher at today’s opening bell.
Stock markets in Shanghai and Hong Kong are slightly higher after China’s annual rate of inflation slowed more than expected to 0.2% in January.
The price of Brent Crude has risen 0.5% to $69.12 a barrel and gold by 0.7% to $5061 an ounce.
