LIVE BUSINESS: Dollar Soars as Trump Declares Victory; Increases in hospitality prices; M&S breaks forecasts

Futures markets show a strong reaction when the United States opens later today, with the Dow, S&P 500 and Nasdaq set to open up 2.3, 2 and 1.7 percent, respectively.

Hetal Mehta, head of economic research at St. James’s Place:

‘Given the focus of Trump’s campaign messaging on tariffs, as well as his use of tariffs in international negotiations in his last term, we expect these to be a key feature of his second term.

‘This could have a short-term inflationary impact, especially in sectors such as traditional energy, finance and defense, as companies try to pass on costs through price increases.

‘Looking a little further into the future, Fed Chairman Jerome Powell’s current term ends in 2026. As chairman, Powell’s policies are key to keeping inflation under control. With Trump potentially preferring an alternative Federal Reserve chair, political uncertainty could increase further.”

The crisis affecting the automobile financing market could spread to other sectors of the insurance sector, experts warned.

The Court of Appeal ruled last month that commissions paid between banks and brokers for car transactions may be illegal because they were not clearly disclosed to the customer.

The decision plunged the auto finance industry into confusion.

Housebuilder Persimmon has raised concerns over signs that construction costs are emerging in 2025 price negotiations.

British builders have recently seen an improvement in sales, but concerns that the Bank of England may delay interest rate cuts due to rising inflation, spurred by the UK’s ambitious new budget plans, are extinguishing hopes of an immediate recovery.

Financial markets are primed for the Bank of England’s rate decision due on Thursday, and a second rate cut in four months would offer a major boost to the property sector.

Persimmon, which also told shareholders that sales rates since the start of the third quarter were well above last year, said: “We are working closely with our supply chain to manage our costs, which will also be affected. by new building regulations and employers’ national insurance increases announced in the recent (UK) budget.

Aarin Chiekrie, equity analyst at Hargreaves Lansdown:

‘With the embers of Bonfire Night still cooling, Marks & Sparks lit up the market with its own fireworks show, delivering a dazzling series of results in the first half. Its good run of better-than-expected results continued in the first half, driven by a strong increase in food sales.

‘High quality and value propositions have been refined, helping the group to record volume growth for four consecutive years. In Apparel & Home, performance was strong, with continued growth reflecting improved customer perceptions of value, quality and style. This is by no means an easy task and is a key reason why M&S is able to sell over 80% of clothing at full price, much more than many of its rivals.

‘You have to give them credit, M&S has done a great job breathing new life into the business over the last few years. Operational and strategic improvements mean the business is healthier than it has been for some time.

‘Debt levels are moving in the right direction and plenty of cash is being generated to help fund the group’s store rotation plan, which focuses on opening new locations in high-growth areas. There is even cash left to support the newly reinstated dividend payments, meaning M&S could once again attract income-focused investors.’

Marks & Spencer’s profits soared 17.2 per cent in the first half as the retailer continued to beat expectations as its market share increased.

Chief executive Stuart Machin’s mission to revitalize the chain gained further momentum, amid a focus on improving its food and clothing lines, online operations and stores.

The FTSE 100-listed group made a profit before tax and adjustment items of £407.8m in the six months to September 28, ahead of analyst forecasts and profit of £ £348.1m at the same time a year ago.

Wetherspoon chairman Tim Martin warned of rising prices after the autumn budget as he said the pub chain’s tax bill will rise by two-thirds next year.

Martib said he believes “all hotel companies” are planning to pass on the higher costs through price increases.

He said: ‘Cost inflation, which had jumped to high levels in 2022, slowly declined in the following two years but has now risen substantially again after the Budget.

“We believe all hotel companies plan to increase prices as a result.

“Wetherspoon, as always, will do everything possible to remain as competitive as possible.”

Expectations of Donald Trump’s imminent US election victory have sent the dollar higher in early trading, with Treasury yields rising as so-called Trump trading returns.