London pre-open: FTSE 100 called higher, UK CPI and Trump in focus

Commenting on the potential implications of the September consumer price data, Rabobank foreign exchange strategist, Jane Foley, indicated on Bloomberg TV that it likely did open the door to a 25 basis point rate cut by the Bank of England, but not necessarily two more reductions, given how some inflation measures remained high.

As of 0728 BST futures tracking the FTSE 100 were advancing by 16.5 points to 8,310.0.

Cable was down by 0.63% to 1.2992.

Over on the Continent, the Dax and Cac-40 were being called to start the day lower after a mixed showing for the main Asian benchmarks overnight.

UK inflation dropped sharply in September to its lowest level in two and a half years, according to data from the Office for National Statistics on Wednesday, likely ramping up the pressure on the Bank of England to get more aggressive with monetary easing.

The annual change in the consumer price index (CPI) slowed to just 1.7% last month, down from 2.2% in August. This was well below the 1.9% expected by economists and the first time below the 2% mark since April 2021.

Services price growth slowed from 5.6% to 4.9%.

Foley also commented on the content of an interview with US presidential candidate Donald Trump on Bloomberg, in which he defended his proposals for further trade tariffs.

The strategist judged that as a result, if Trump won the elections then the Federal Reserve's rate-cutting cycle would be shallower.

Whitbread hikes dividend

Premier Inn owner Whitbread on Wednesday lifted its half-year dividend and said it would buy back an additional £100m in shares, despite a fall in earnings. The company held annual guidance as pre-tax profit for the six months to August 29 fell 22% to £309m on flat revenue of £1.5bn. The dividend was increased 7% to 36.4p.

GSK announced on Wednesday that the US FDA has accepted its new drug application for ‘gepotidacin’, an investigational oral antibiotic for uncomplicated urinary tract infections (uUTIs) in female adults and adolescents, and granted it priority review with a decision expected by 26 March next year. The FTSE 100 pharmaceuticals giant said gepotidacin, which demonstrated positive results in phase three trials, could become the first in a new class of oral antibiotics for uUTIs in over 20 years. It said the trials showed gepotidacin was non-inferior to the current standard of care, nitrofurantoin, with a favourable safety profile.