Closing post
And finally…. the UK stock market has ended the week at a new closing high.
The FTSE 100 share index has closed up 64 points, or 0.6%, at 10,910 points, having earlier hit a fresh record high of 10,934 points.
It’s the Footsie’s first foray over 10,900 points.
Russ Mould, investment director at AJ Bell, says:
“Two months in, it looks like 2026 could be a second bumper year in a row for investors putting their faith in UK stocks if current performance trends continue.”
That’s all for another week – here’s today’s stories so far:
Amazon disruption leaves customers unable to shop
Amazon shoppers are reporting issues completing purchases on its website and app.
Reports of disruption at the retailer started at around 11am this morning on the website Downdetector, which monitors internet outages. By 4pm, more than 1,900 customers had logged an issue with the online retailer.
Shoppers complained of receiving an error message when they attempted to check out. It read:
“We’re very sorry, but we’re having trouble doing what you just asked us to do. Please give us another chance – click the Back button on your browser and try your request again.”
Amazon customers have taken to social media to share their frustrations, with one X user writing: “i haven’t been able to buy anything from Amazon today.”
In the thread on Downdetector a number of affected customers shared their experiences of trying to make a purchase.
“App order history does now show and checkout fails,” posted Paul Walker. In the same thread John Reid added: “All past orders except 1 have disappeared, no idea if a delivery due today will materialise.”
Another poster, Neil, who had been in touch with Amazon customer service via live chat, said he was told that the company was having “issues globally”. Like other affected shoppers, his experience was that “our orders are not showing & we can’t buy anything we keep getting errors”.
Amazon have been asked for comment….
Updated
Pound weakens after Labour's 'humiliating' byelection defeat
The pound is weakening on the foreign exchange markets, as traders absorb the Green party’s landmark victory in the Gorton and Denton byelection.
The Labour party’s poor performance, sloping in third behind Reform, is putting renewed pressure on prime minister Keir Starmer.
As Mujtaba Rahman, managing director for Europe at Eurasia Group, puts it:
Labour’s defeat to the Greens in the Gorton and Denton by-election in Greater Manchester is another substantial blow for Prime Minster Keir Starmer; Eurasia Group remains of the view there is an 80% chance he will face and lose a leadership contest this year.
Rahman also predicts Starmer will “veer left” after his “humiliating defeat” in Manchester.
The pound is down a quarter of a cent against the US dollar now, at $1.3455.
It also hit its lowest level since last December against the euro, dipping below the €1.14 mark.
A change of leader could undermine the government’s commitment to its fiscal rules, potentially leading to higher borrowing.
However, UK government bond prices have strengthened this morning, pushing down the yield (or interest rate) on gilts – that suggests no market panic about a jump in borrowing….
Updated
Canada’s economy shrank at the end of last year, new data shows.
Canada’s economy contracted at an annualized pace of 0.6% in the October-December quarter, Statistics Canada said, the equivalent of a 0.15% drop in GDP during the quarter.
That follows annualised growth of 2.4% in the third quarter (or 0.6% on a non-annualised basis).
Streaming guide JustWatch have calculated the impact of combining Warner Bros Discovery with Paramount:
A combined Paramount+, HBO Max, and Discovery+ would hold roughly 19% of the US SVOD [streaming video on demand] market, tying Prime Video and nearly matching Netflix
Even without Discovery+, Paramount and HBO Max together would reach 18%, nearly tripling Paramount+’s current 5% share
Beyond platform scale, the deal would unite some of the most valuable IP in streaming, including Harry Potter, Game of Thrones, and DC
Combined, Warner Bros., New Line, and Paramount films generate about 26% of all U.S. movie clickouts on JustWatch, accounting for more than one in four streaming interactions
The merger would elevate Paramount from a mid-tier player to a direct competitor to the market leaders
Netflix shares jump, Warner Bros fall
Over on Wall Street, traders are reacting to Netflix’s decision to walk away from the Warner Bros, leaving rival Paramount clear to pursue its takeover.
Shares in Netflix have jumped by 8.5% at the start of trading, to $91.74. That indicates relief that the streaming service showed discipline and didn’t raise its offer in response to Paramount’s new bid.
Paramount’s shares are only slightly higher (despite having jumped in pre-market trading); they’re up 1% at $11.35.
Warner Bros Discovery’s, though, are down almost 2% at $28.24 each, a day after revealing that Paramount had raised its hostile bid to $31, prompting Netflix to walk away.
That suggests some concern that regulators could scupper the bid (with California pledging a vigorous review), and perhaps also some disappointment that Netflix wasn’t lured into a bidding war.
Updated
Something has gone wrong at Amazon today.
Downdetector reports a surge of reports of problems ordering from the e-commerce site today, with some customers unable to buy their purchases at the checkout.
I did manage to just place an order, though – so the problems aren’t universal….
I haven't been able to buy anything from Amazon today.@AmazonUK #outage pic.twitter.com/ahDO5CzgzI
— David Wainwright (@DavidWainwright) February 27, 2026
BoE's Pill: Underlying inflation is probably still running above target
Speaking of the Bank of England, its hawkish chief economist is warning that inflation has not been slayed.
Huw Pill said today the central bank should not be too reassured by future falls in headline inflation where they are driven by one-off factors, as underlying price pressures persist, Reuters reports.
Pill told a webinar hosted by Britain’s Society of Professional Economists and Elgin Advisory:
“I think it is ... important to recognise that the [disinflation] process is still incomplete. We shouldn’t be lulled into a false sense of security by movements in headline inflation which are partly driven by fiscal events or other events.
“Underlying inflation is probably still running above target,” he added
Updated
Barclays executive appointed deputy governor for prudential regulation
The UK government has appointed a senior banker at Barclays as the next deputy governor for prudential regulation at the Bank of England, as it continues to push regulators to spur growth in the UK economy.
Katharine Braddick, who currently works at Barclays as Group Head of Strategic Policy and senior adviser to the CEO, will succeed Sam Woods when he steps down from the BoE in June.
The Treasury says Braddick brings “brings deep City, regulatory and policy expertise to keep the UK safe and open for investment, and to support growth and competitiveness”.
But her appointment may add to existing concerns that the government deregulatory agenda could leave the economy exposed.
Chancellor of the Exchequer Rachel Reeves makes it clear what the Treasury is expecting from Braddick, saying:
Katharine Braddick is an accomplished pro-business leader with the experience to keep our financial system safe while backing the investment and lending that drives growth.
She understands the City and regulation, and will help ensure the UK remains one of the best places in the world to do business.
I want to thank Sam Woods for his dedicated service and the strength he has brought to the UK’s prudential regime. Katharine will build on that record — keeping standards high while driving a competitive, growth-focused approach to regulation.
Braddick’s LinkedIn page shows she was head of banking policy between 2001 and 2011 at the Financial Services Authority, before it was abolished after the financial crisis….
She then moved to the Treasury for seven years, where she was director general for financial services.
The Bectu (Broadcasting, Entertainment, Communications and Theatre) union is concerned that the takeover of Warner Bros Discovery could lead to job losses.
Responding to the news that Netflix is pulling out of its bid for Warner Bros Discovery, the head of Bectu Philippa Childs says:
Whoever takes over Warner Bros, continuing consolidation within the creative industries is worrying for anyone who values competition and a plurality of voices and stories in entertainment and the media.
I am concerned that the takeover will have a negative impact on jobs and add to uncertainty in what is already an incredibly precarious sector to work in.
We also need to be increasingly vigilant to prevent further homogenisation of content and the loss of any more of the UK’s unique and distinctive output.
Such developments highlight the importance of the BBC, which continues to provide a unique UK voice as well as playing a fundamental role in our cultural ecosystem. With the BBC charter currently under review, now is a critical opportunity to protect the independence of the creative sector. People in the industry should make their heard and respond to the government’s consultation on charter renewal.
Paramount has previously said it could achieve $9bn in synergies and cost cuts if it owned Warner Bros Discovery – much of which could come through job cuts…
Updated
CBS News and CNN staffers fear ‘disaster’ as Paramount wins Warner Bros battle
Netflix’s decision to walk away from its $83bn bid for Warner Bros Discovery (WBD) has left some staffers working at CBS News and CNN panicking about the future as the two top-tier news operations come under the same roof.
With Paramount Skydance emerging as the winning bidder, a deal that still requires the approval of WBD shareholders and government regulators, they fear the merging of the two networks – and, with it, the potential for a significant amount of job cuts.
Some CNN employees are also nervous about Paramount’s Trump-friendly ownership and leadership enacting ideologically driven programming changes at the network, with particular concern about the specter of CBS News editor-in-chief Bari Weiss possibly getting a significant role.
A new Bloomberg Intelligence note highlights potential antitrust considerations now that Paramount is on track to buy Warner Bros Discovery.
Jennifer Rie, senior litigation analyst, says:
Paramount has already cleared one hurdle -- clearance from the US Justice Department -- but still needs nods from the EU and UK before it can close, which could take another 10-13 months. Though an outright block is unlikely, remedies may be necessary.
Updated
Trust in the UK government remains low
Trust in the UK government has fallen since Labour’s triumph in the last general election, new data shows.
The Office for National Statistics has reported this morning that “trust in the UK government remains low”, with around one in five adults (21.9%) in Great Britain reporting trust in Dec 2025 to Jan 2026.
This is a statistically significant fall compared with the same period last year, the ONS says in its latest National Well-being report.
Trust increased to 27.6% after the July 2024 General Election, but declined steadily, reaching its lowest level since before the election by December 2025 to January 2026.
This trust measure fell to just 19.5% in November 2023.
However, the ONS only has data going back to January 2023, it is not yet clear whether these post‑election shifts are typical.
The report also flags the decline in living standards, pointing out that UK GDP per head fell in the third and fourth quarters of 2025.
The Green’s new Gorton and Denton MP, Hannah Spencer, touched on this theme in her victory speech last night, reminding voters that “working hard used to get you something. It got you a house, a nice life, holidays, it got you somewhere.”
The ONS also found that mean life satisfaction remains below its pre-pandemic peak, and that the share of adults reporting good or very good health has fallen “significantly” - from 76.0% in Quarter 4 2020 to 70.9% in Quarter 4 2025. That shows a sustained post‑pandemic decline in overall health.
Updated
UK bond prices a little stronger
UK government bond prices are rallying too, showing the lack of market panic following the Gorton and Denton byelection.
This has pushed down the yield, or interest rate, on UK 10-year and 30-year bonds by two basis points (0.02 percentage points); a small move, but one that shows the UK’s cost of borrowing has dipped.
Mark Dowdin of RBC BlueBay Asset Management, says:
In the UK, the Labour party suffered a humiliating defeat at the Gorton byelection. This outcome was largely expected, but the margin of defeat continues to heap pressure on Prime Minister Starmer.
Nevertheless, gilts have continued their recent outperformance, helped by an improving inflation narrative, which may also, in turn, benefit the outlook for UK government finances.
Updated
FTSE 100 hits new high over 10,900 points
Meanwhile in London, the stock market has hit a new record high.
The FTSE 100 index of blue-chip shares has extended its run of record, rising over the 10,900-point mark for the first time to reach 10,914 points.
That takes its gains so far this year to over 9%.
Property portal Rightmove is the top riser, after announcing a share-buyback scheme, profits in line with expectations, and plans for a “Rightmove app-in-GPT on OpenAI in the near future”.
Mining stocks are also higher.
Susannah Streeter, chief investment strategist at Wealth Club, says:
The FTSE 100 is sailing ever higher on a big wave of enthusiasm for London listed stocks. The blue-chip index has opened at fresh record levels. It’s been on a breathtaking run upwards, accelerating its surge higher since the start of the year, rising by more than 9%. Momentum appears to be on its side with the psychologically important 11,000 mark now in its sights. Its mining constituents have been benefitting for demand for metals in particular, as signs indicate that a commodities super-cycle is underway, with huge demand for metals and minerals needed to power the green revolution and build AI infrastructure. Geopolitical tensions and rising debt levels are keeping demand for safe precious metals intact, while defence contractors continue to benefit from the big uplift in spending on military capabilities.
Rightmove topped the leaderboard in early trade, after its results enthused investors. It saw a 9% uplift in revenues as estate agents upped spend on the portal’s extra services to keep homebuyers engaged. Rightmove is trying to move with the times, by dramatically increasing spend on AI innovations. The scale of the spend, with a bulk of a £60 million investment due to be spent on the technology over the next three years, had caused jitters among shareholders. However, now that revenues are showing some signs of keeping up with the company’s ambitions, it’s helped quell some concerns.
Updated
Paramount shares set to jump too
Paramount Skydance’s shares are also on track to rally today, after it saw off Netflix’s rival bid for Warner Bros.
Paramount is up 8.7% in pre-market trading, following a 10% jump on Thursday before Netflix decided not to raise its offer.
Updated
A Paramount takeover of Warner Bros will be less disruptive for the industry than if Netflix had won the battle, argues Ben Barringer, head of technology research at Quilter Cheviot:
For Paramount it has got the asset it always wanted and now probably feels like it is in a position to compete with Disney for that second spot behind Netflix when it comes to streamers. However, it has saddled itself with a lot of debt to get to this point and that will need to be paid off at some point – a fact Netflix was likely more than aware of. Meanwhile, for Warner Bros, it has managed to extract a huge amount of value from what was supposedly a depreciating asset.
Ultimately, this outcome probably doesn’t shake the media industry out as much as if Netflix had been successful here. Yes, it creates a new mega streamer in whatever Paramount-Warner Bros becomes, but Netflix has eyes on other competitors. YouTube remains the biggest threat to Netflix’s dominance, and with this saga now over, it can focus on keeping its place at the top of the streaming tree.
Updated
‘Win for everyone’ as Netflix quits Warner Bros takeover battle
The market reaction to Netflix walking away from Warner Brothers indicates all sides have done well, suggests Matt Britzman, senior equity analyst at Hargreaves Lansdown.
With Netflix and Paramount’s shares both up almost 9% in pre-market trading, Britzman says:
The streaming takeover saga took a dramatic turn after Warner Bros. Discovery formally recognised Paramount Skydance’s offer as the superior bid, prompting Netflix to walk away almost immediately. After weeks of drama, meetings and speculation, Netflix’s decision to step aside brought an abrupt end to what had been one of the market’s most closely watched corporate chess matches. In the end, it underlined just how fast things can move when big money, regulators and strategic pride collide.
For Netflix investors, the reaction has been positive with shares 8.5% higher in after-hours trading. While there was clearly scope for Netflix to push higher, management chose discipline over empire‑building, removing a major acquisition overhang that had been weighing on the shares. The bid always looked like a mix of offence and defence – shoring up content and scale, while keeping competition from gaining any edge, but at a very high price – and with that risk now off the table, investors are free to refocus on Netflix’s core strengths: pricing power, margins and execution. For now, at least, the market seems to be pricing this as a win for everyone.
[Whether the Ellison family’s growing control of the media world is a ‘win for everyone’ is less clear….]
Updated
UK consumer confidence dips as unemployment fears rise
Consumer confidence in the UK fell for the first time in three months in February, according to a long-running survey, amid rising unemployment and strained household budgets.
The GfK consumer confidence index, which polls households on their feelings about the economy and their own personal finances, fell by 3 points to -19 in February, from -16 the previous month and the lowest level since November. Analysts had expected a reading of -15.
Neil Bellamy, consumer insights director at GfK, said:
This decline is mainly driven by weaker perceptions of personal finances — both looking back a year and ahead. Fewer people say that now is a good time to make major purchases (a measure that has dropped 4 points) and fewer consumers intend to save money (the Savings Index is down 7 points).
Views on the broader economy remain firmly in negative territory, with consumers anticipating only limited economic growth this year. Unemployment has now reached its highest level in nearly five years, and this is increasing concerns about job security, particularly given the backdrop of weak wage growth.
The survey, which has been running since the 1970s, was taken before official figures revealed that inflation had dropped to 3% in January, from 3.4% a month earlier, which may boost household confidence.
Elliott Jordan-Doak, a senior UK economist at Pantheon Macroeconomics, said:
We think February’s drop in confidence looks more like a blip than the start of a downward trend. We think that consumers’ confidence should improve slowly over the coming year as the economic backdrop improves, though we expect some bumps along the way, particularly as the local and mayoral elections in July are likely to be a political flashpoint.
A separate survey released by Lloyds Bank found that businesses are feeling more optimistic, with an improvement in sentiment towards the economy. Optimism in UK growth jumped by 8 points to 36% in February. Overall business confidence remained the same as January at 44% as firms’ confidence about their own trading reduced by 6 points to 53%.
Updated
Pound calm after Green triumph in Gorton and Denton byelection
The Green party’s landmark victory in the Gorton and Denton byelection has not rocked the financial markets.
Sterling is slightly higher against the US dollar, up $0.02 at $1.3505, despite the fresh pressure on Keir Starmer after Labour came third at the polls overnight.
The pound is flat against the euro, at €1.1424, having hit its lowest level of the year earlier today.
UK government bonds are flat in early trading too.
Daniela Hathorn, senior market analyst at Capital.com, says one byelection upset alone is unlikely to trigger sustained sterling weakness unless it becomes part of a broader trend.
But the pound could weaken if there is a perception of rising political fragmentation, especially if it increases the probability of leadership uncertainty or fiscal ambiguity.
Hathorn says:
The headline signals more than just a local political upset, it reinforces the narrative of fragmentation within UK politics at a time when markets are highly sensitive to policy stability. A byelection result that pushes Labour into third place, particularly behind both the Greens and Reform UK, raises questions about the party’s cohesion and broader electoral positioning.
For markets, the issue is not necessarily the immediate seat count, but what it implies about political momentum, leadership authority and future policy direction. If leadership challenges or internal divisions intensify, uncertainty around fiscal plans, regulatory reform and economic strategy could rise.
Updated
Block shares surge as it lays off 40% of staff because of AI
Depressing market move of the day: Shares in tech company Block have surged after it announced it is cutting 40% of its staff.
Co-founder Jack Dorsey has blamed the cuts on the rise of “intelligence tools,” as he reshapes Block – the firm behind Square, Cash App and Afterpay – to capitalize on its use of artificial intelligence.
Dorsey told shareholders:
“The core thesis is simple. Intelligence tools have changed what it means to build and run a company.
A significantly smaller team, using the tools we’re building, can do more and do it better.”
The company is laying off more than 4,000 people, reducing the workforce to just under 6,000.
Block’s shares surged 23.52% in after hours trading…
Block Inc $XYZ surged 30% after Jack Dorsey announced plans to cut over 40% of its workforce.
— Bitget (@bitget) February 27, 2026
Markets are treating layoffs like an earnings beat, what's your take? pic.twitter.com/IOzMyz8202
Robert Fishman, senior analyst at Moffett Nathanson, says a combined Paramount/Warner Bros could be a ‘serious industry player’, if management stump up the necessary funds.
Fishman says:
“Altogether, while the war for Warner Bros. Discovery ended sooner than expected, this result confirms our ongoing view that WBD was a necessity for PSKY while Netflix was being opportunistic.
It signals that Netflix believes in its internal growth story enough to maintain M&A discipline. We also believe the future Paramount Skydance Warner Bros. Discovery — they’ll need a better name — could finally transform two subscale media companies into a more serious industry player, provided management has the financial flexibility to execute on its vision.”
California Attorney General: Paramount/Warner Bros is not a done deal
Analysts suspect that regulators, such as California Attorney General Rob Bonta, could attempt to challenge Paramount’s takeover of Warner Bros Discovery.
Bonta, a Democrat, said late on Thursday that his office would take a ‘vigorous’ approach to the deal.
In a statement issued Thursday evening, Bonta said:
“Paramount/Warner Bros is not a done deal. These two Hollywood titans have not cleared regulatory scrutiny — the California Department of Justice has an open investigation, and we intend to be vigorous in our review.”
Introduction: Netflix shares jump after walking away from Warner Bros Discovery deal
Good morning, and welcome to our rolling coverage of business, the world economy and the financial markets.
Every good drama needs a few twists and turns. And the race for ownership of Warner Bros Discovery has certainly delivered.
Overnight, Netflix has walked way from the deal, declining to match a new, improved takeover offer from its rival, Paramount Skydance.
Netflix’s hopes were blown away by Paramount lifting its offer for the whole of Warner Bros to $31 per share, beating Netflix’s bid of $27.75 per share for Warner Bros’ streaming and studio assets.
Backing out of the bout, Netflix said:
“We’ve always been disciplined, and at the price required to match Paramount Skydance’s latest offer, the deal is no longer financially attractive, so we are declining to match the Paramount Skydance bid.”
Netflix’s shares have surged by 8.5% in after hours trading, suggesting relief that the streaming company has not risked overpaying for Warner Bros.
Netflix’s shares had fallen by almost a third over the last six months.
Netflix $NFLX shares rise sharply amid the win-win $WBD acquisition bid situation. pic.twitter.com/ZFfhHOmGsC
— Tickerade (@tickerade) February 26, 2026
This clears way for Paramount to win WBD’s assets, including Warner Bros, the studio behind franchises including Harry Potter, Superman and Batman, as well as HBO, home to shows including Game of Thrones, The White Lotus and Succession.
It would also give Paramount, owned by Larry Ellison (a friend of Donald Trump) ownership of CNN – he already controls rival news network CBS.
Any deal still need to win regulatory approval, though, so this may not be the final act in the Warner Bros Discovery story…..
The agenda
7am GMT: Sweden’s GDP report for Q4 2025
10.30am GMT: India’s GDP report
1pm GMT: Bank of England chief economist Huw Pill: Panellist at Elgin Advisory and Society for Professional Economists ‘UK & US economics’ webinar
1.30pm GMT: Canada’s GDP report for Q4 2025
1.30pm GMT: US producer prices inflation report for January
Updated
