The FTSE 100 started off its final trading session of the week in decent fettle, although remained a distance from its recent record highs above 10,700.
Threats of military action against Iran from the Trump administration, if the country doesn’t make a deal on its nuclear programme, created some jitters in the market yesterday – with selling in US stocks being matched in most Asian markets.
A resulting move higher in oil prices was helpful for the heavyweight energy stocks on the UK’s flagship index, and retailers were also in demand after official retail sales figures for January showed the biggest monthly bounce since May 2024 to a two-year high.
After a tricky period for the UK consumer there was some resilience on show at the start of the year and that, in turn, provided a boost to the unloved retail space.
Buy now pay later outfit Klarna endured a punishing session on Wall Street after it posted a hefty loss and increased its provisions for bad debts. Customers being unable to pay back loans feels like an inherent risk in the Swedish group’s business model and these results will only increase concerns about the issue.
Klarna shares are now down more than two thirds since their IPO in New York in September 2025 – with any investor who bought then certainly being made to pay now for that decision.
Anglo American
What is likely to be the last set of full-year numbers before Anglo American becomes Anglo Teck – barring a last-minute regulatory hitch – revealed a key reason why the deal is being pursued.
There is a scramble for copper in the sector to rival the clamour among pre-teens for Labubu dolls last year. The metal’s crucial role in the rollout of AI data centres, electric vehicles and renewable energy infrastructure and kit is driving prices to new record highs.
While profit from Anglo’s copper operations was up, production was down 10%. This underlines why a tie-up with Teck might be needed to build out scale in production of the metal.
The unwanted De Beers diamonds operation remains in the dirt with a third write down in value in three years. Efforts to offload the loss-making business are moving slowly thanks to weak market conditions, linked to a general drop-off in demand and disruption from cheaper lab-grown stones.
The company is making progress with cost savings and has brought down borrowings, with investors seemingly accepting of a dividend cut as they allow Anglo’s transformation efforts and its combination with Teck to play out.
Russ Mould: Investment Director
Russ Mould is AJ Bell's Investment Director. He has a Master's degree in Modern History from the University of Oxford and more than 30 years' experience of the capital markets.
He started out at Scottish...
