Investors will be relieved that European stocks stabilised after bond market wobbles earlier this week.
Bond yields had jumped on fears of new inflationary pressures and what that could mean for interest rates, triggering a shift in investor risk appetite.
The latest UK inflation figures show the impact of the Middle East conflict on the cost of living and those pressures aren’t going away.
Fortunately, investors are not panicking, and financial markets have taken a breather.
The FTSE 100 stood firm as its plethora of miners stand to benefit from rising inflation, as that typically feeds into higher commodity prices. BP and Shell also flexed their muscles as oil prices held firm above $91 a barrel.
Trainline / Virgin Atlantic / RED Driving School
There’s nothing worse than ordering something and seeing extra charges added to each stage of the booking process. Most people would simply like to see one figure upfront so they know from the start what the total cost will be.
Unfortunately, plenty of companies are still playing tricks on users as they sneak in extra charges each time you click the ‘next’ button as the order progresses. It’s no wonder the Competition & Markets Authority is fighting a lengthy battle against so-called ‘drip pricing’.
Trainline, Virgin Atlantic and RED Driving School are the latest targets for the CMA’s clampdown on misleading pricing practices.
Trainline’s fees are relatively small, but they can add up for frequent travellers. The company says it will take steps to ‘enhance’ how certain fees are presented, but it could face potential fines and forced customer refunds if the CMA finds that consumer law has been broken.
Investors were shocked at the news, sending the shares down 15%. Trainline is already facing enough headwinds with increased competition and potential regulatory changes in Europe that investors can’t stand the thought of another headache on top.
Virgin Atlantic and RED Driving School are in the same boat with regards to a potential slap on the wrist from the regulator. Airlines are notorious for imposing extra charges at any given chance. As for RED Driving, the idea of a ‘digital charge’ separate to a booking fee seems cheeky, and it’s no wonder people have been moaning on social media about the company layering extra costs on top of the actual driving lesson.
Carlsberg
Against a backdrop where alcohol is being consumed less freely, Carlsberg’s decision to diversify into other parts of the beverage market is paying off.
And if anyone was wondering how it would go if Carlsberg did soft drinks, the answer is very well so far, with the purchase of Britvic delivering benefits ahead of schedule.
While no one is suggesting Carlsberg is about to do a 180 and abandon its brewing roots, selling a wider range of drinks using its existing marketing and distribution skill set seems a solid strategy.
Britvic’s strong early contribution has helped Carlsberg to take a positive view of full-year performance despite a rocky first half of 2026 as it contends with geopolitical turbulence and shifting drinking habits.
This mixed picture was reflected in the fact first-half profit came in slightly below expectations, but annual guidance was narrowed to the upper end of the previous range.
There may be a modicum of trepidation that the expected second-half improvement doesn’t come through, but management seem unlikely to make themselves a hostage to fortune in this way without a fair degree of confidence.
Unitree
It’s not just AI where China is seeking to rival higher profile players in the West. The closely associated robotics industry is another area where the world’s second largest economy is making strides.
This was crystallised as robot manufacturer Unitree made a splash with its stock listing in Shanghai.
Investors may have been tempted to break out Peter Crouch’s iconic robot dance as the shares chalked up eye-watering gains on their first day of trading.
Unitree is shipping an increasing number of humanoid robots, with more established companies like Amazon, Tesla and BYD nursing their own ambitions in this space.
Robotics is one of just several pulse points of 21st century innovation where Chinese companies’ ability to deliver technology at a lower cost is providing a competitive threat to its Western counterparts.
Dan Coatsworth: Head of Markets
Dan Coatsworth is AJ Bell's Head of Markets. Dan has been with the company since December 2012 and has more than 18 years' experience in the industry, following the markets and all things investing. He...
