Daily market update: gold, Barclays, British Land, Heineken, Auction Technology

Markets dipped as investors feared about the independence of the Federal Reserve.

US prosecutors launched a criminal investigation into Fed chair Jay Powell over a renovation of the central bank’s headquarters. Powell implied the root of the issue was the Fed’s refusal to cut interest rates as fast as Trump wants, rather than any matters involving a building.

The probe has unnerved markets and raised questions about what might happen to the Fed once Powell steps down in May. There is a fear that Trump is meddling too much with policies that are meant to be set independently.

The Fed bases its monetary policy decisions on various data points, and a key purpose is to keep inflation in check.

Trump wants to lower borrowing costs, so consumers and businesses spend more money and propel the economy. However, what’s worrying markets now over Trump’s implied intervention is that the loss of Fed independence could lead to inflation getting out of control.

Investors rushed to buy gold, taking the precious metal price to a new record high of just over $4,600 per ounce. It’s a popular hedge against inflation and it is an asset with safe-haven qualities that often shines in an uncertain market.

The rise in gold propelled Fresnillo to the top of the FTSE 100 risers’ list, while investors also piled into defence stocks including BAE Systems.

Barclays

Barclays fell 4% after Trump called for a one-year 10% cap on credit card interest rates. The UK bank entered the US credit card market in 2004 with the acquisition of Juniper Financial and it is now one of the largest issuers in the country via partnership brands.

While consumers would love to see lower rates on credit cards, Trump may not be able to enact such a move without approval from Congress. It also raises questions about the knock-on effect of a cap on credit and whether a drop in associated earnings for lenders could lead to reduced availability of credit in general, forcing some consumers and businesses to seek more costly alternatives.

British Land

It’s only taken 12 days for the first FTSE 100 CEO change to be announced, disregarding changes which had already been flagged last year. If we were to continue at a similar rate in the remainder of 2026 there would be more than double the changes made in 2025.

For British Land, it is less a tale of shareholder impatience or a more cut-throat corporate environment. Chief executive Simon Carter is leaving to pursue a new opportunity in warehousing and logistics.

The market reaction implies mild disappointment at his departure, after Carter steered the company through the disruption of the pandemic. It’s been a difficult time for the UK property space but there are green shoots of recovery now appearing.

Heineken

The departure of Heineken CEO Dolf van den Brink after six years in charge comes at a difficult time for the alcohol industry thanks to pressure on household finances and greater moderation in drinking, particularly among younger cohorts.

Even within this context, Heineken has underperformed counterparts like AB InBev and Carlsberg in share price terms. In that sense van den Brink’s departure is not a shock.  

Part of any future strategy may involve seeking to diversify into new areas, selling underperforming brands and leaning more into zero and low alcohol products as well as the classic playbook of taking out costs.

Many of these avenues would represent a continuation of Heineken’s existing ‘Evergreen’ strategy but it will be interesting to see if the brewer goes outside of the company for this appointment given van den Brink was an internal promotion.  

An outsider might have more scope and a fresh enough perspective to push through more radical changes in an attempt to restore Heineken’s fortunes.

Auction Technology

Dan Coatsworth, Head of Markets at AJ Bell, comments:

FitzWalter has gone hostile in its attempts to buy Auction Technology. Having had 11 bids rejected by the company, it has taken the nuclear option of bad-mouthing the group in public to try and get more shareholders on its side.

The bidder has shamed Auction Technology over destroying shareholder value since being a listed company and criticised its desire to sell a division and recycle any proceeds into more acquisitions. FitzWalter argues that the negative market reaction to an acquisition last summer was bad enough, let alone giving Auction Technology the means to do more deals.

These remarks mean FitzWalter has now burned any bridges between the two companies. It now turns to Auction Technology to see whether it pulls up the drawbridge after being named and shamed in public, or whether it seeks the views of other shareholders over its destiny.

The fact that FitzWalter was prepared to make 11 bids shows it is determined to own the company. Going hostile is a high-risk strategy as it can easily backfire. The market reaction to the news is non-plussed, suggesting that it’s just a playground spat and that it doesn’t increase the likelihood of a higher offer from the bidder, or Auction Technology lowering its guard.