Trainline raises growth guidance, Lloyds assessing impact of motor finance court rulings

London open

The FTSE 100 is expected to open 18 points higher on Monday, having closed down 0.25% on Friday at 8,248.84.

Stocks to watch

Train and coach bookings platform Trainline has raised its full-year growth guidance after a strong first half. The company said it expects net ticket sales to increase by 12-14% in the year to 28 February 2025, up from a previous target of 8-12% growth, while revenue growth is tipped to be 11-13%, up from 7-11% previously.

Lloyds Banking Group updated the market on recent Court of Appeal rulings requiring motor dealers to disclose commission arrangements to customers on Monday, holding lenders liable for any non-disclosures by dealers. The FTSE 100 bank said the rulings set stricter requirements than previously understood, which were based on FCA guidance and past legal precedents. Lloyds said it was currently evaluating the potential impact of the decisions, and would provide further updates depending on the outcome of the lenders' application to appeal to the Supreme Court.

Newspaper round-up

Rachel Reeves has been urged not to carry out mooted funding cuts for nuclear sites including Sellafield amid safety concerns, as it emerged that the number of incidents where workers narrowly avoided harm had increased at the Cumbrian site. The GMB union has written to Reeves, the chancellor, before Wednesday’s budget to raise safety concerns after rumours emerged that the budget for the taxpayer-owned Nuclear Decommissioning Authority (NDA) could be reduced, which could result in cuts at nuclear sites including Sellafield and Dounreay in Scotland. – Guardian

Pubs and restaurants are warning of closures and a tough Christmas ahead if Rachel Reeves’s budget this week raises taxes and ends a Covid-era relief on business rates. Reeves is expected to reveal a tax-raising budget on Wednesday, to pay for improved public services, with Labour sources indicating the government is intending to raise taxes and cut spending by a combined £40bn. Businesses across the economy are bracing for higher taxes, which could dent consumer spending. – Guardian

Plans to shut down a vital terminal in the North Sea have sparked a bitter legal row over claims it will damage the UK’s oil and gas production. The proposal by French energy giant TotalEnergies to decommission the Gryphon terminal, which serves four offshore oil and gas fields, has triggered a claim from a rival operator. – Telegraph

A long-delayed independent review into whether Lloyds Banking Group covered up a £1 billion scandal may never fully emerge, leading to claims that the lender “cannot face the truth”. MPs on the Treasury committee had expected that the review by Dame Linda Dobbs of the bank’s handling of a fraud at HBOS, the lender rescued by Lloyds in 2009, would be shared with them in full. – The Times

Retail investors are piling into the government bond market amid fears that the Labour government will increase the capital gains tax rate on shares in the budget this week. The investment platform AJ Bell reported a 71 per cent increase in the volume of gilts purchased in September compared with August. This was an increase of 177 per cent in September last year. – The Times

US close

US stock markets finished mixed on Friday as investors refrained from taking on too much risk ahead of some crucial market-moving events over the coming weeks, though more gains from Tesla propelled the Nasdaq higher.

The Dow slipped for the fifth straight day with a fall of 0.6%, marking it down 2.5% over the week, while the S&P 500 finished flat. However, the Nasdaq gained 0.6%, edging closer to its record levels reached in mid-July.

Despite the mixed performance across the three main indices, the recent rally this year might not be over just yet, said Trade Nation analyst David Morrison.

Meanwhile, ongoing uncertainty surrounding the US elections in November is preventing investors from building on positions, though analysts say that markets are starting to price in a Trump victory.

On the macro front, durable goods orders decreased by 0.8% to $284.8bn in September, according to the Census Bureau, matching the previous month's revised drop.