Bold: UK markets buoyed by spending surge and big surplus, as FTSE 100 climbs and Brent crude spikes on Middle East supply fears. But here’s where it gets controversial: does strong public spending really justify a brighter outlook, or risk fueling inflation later?
FTSE 100 Live 20 February: Spending surge and record surplus boost UK outlook, index higher
The FTSE 100 index opened higher after dipping from Wednesday’s record close, with traders eyeing Brent Crude’s renewed rise amid concerns about Middle East supply disruptions. The day’s momentum suggested a firmer mood across the market, even as headlines kept attention on energy risk.
FTSE 100 Live Friday
Live updates
1 hour ago
FTSE 100 higher, Burberry shares rise 3%
The FTSE 100 is up 15.12 points at 10,642.16, after retreating from a session high near 10,674 at the open. Front-foot stocks included Lloyds Banking Group, trimming earlier losses with a 0.85p gain to 102.85p. Burberry climbed 3% (35.5p) to 1210p, while St James’s Place added 51.5p to 1322.5p following UBS’s upgrade to a Buy stance. Anglo American rose 15p to 3593p after posting full-year results showing a 2% rise in underlying earnings, though the full-year dividend dropped 27% to 16 US cents per share.
1 hour ago
EDF earnings fall in UK, nuclear output down 12%
EDF reported lower profits in the UK due to weaker prices and a prolonged outage at one of its nuclear plants. Nuclear output from its five active sites fell 12% in the year versus 2024. EDF’s nuclear fleet supplied about 12% of the UK’s total electricity demand last year, underscoring its role as Britain’s largest zero-carbon power generator. UK earnings were £1.9 billion for 2025, down roughly a third from £2.9 billion in 2024.
1 hour ago
New year lift for Chancellor ahead of fiscal statement
Chancellor Rachel Reeves received a positive backdrop ahead of next month’s fiscal statement after retail sales and January’s public sector surplus exceeded forecasts. Today’s record surplus pushes cumulative borrowing for the first ten months of 2025/26 to £112.1 billion, about £14.6 billion below the previous year. January retail sales volumes rose 1.8% month-on-month, well above City expectations of 0.2%, signaling stronger consumer activity. Capital Economics noted that the economy has strengthened since late last year, suggesting the fiscal statement on 3 March could include favorable signals for the Chancellor.
1 hour ago
Brent crude at six-month high amid Iran disruption fears
Oil traders fear potential US military action in Iran as Brent crude neared a six-month high around $72 per barrel. This echoes last June’s price spike when US strikes temporarily added about $10 to Brent. While Iranian exports face sanctions, the bigger worry is the risk of Iran disrupting tanker routes through the Strait of Hormuz, a chokepoint for roughly 20% of global oil and LNG flows. Shore Capital warned that such disruption could spur broader supply shocks affecting Saudi Arabia and other regional producers, and key buyers like China and India.
2 hours ago
Public finances post record surplus
The UK recorded its highest monthly public surplus in the 1993-present era, with January receipts totaling £30.4 billion—double the prior year and £6.3 billion above the Office for Budget Responsibility’s forecast. National insurance contributions rose nearly 20% year-on-year to £17.7 billion. ONS chief economist Grant Fitzner noted that January typically sees strong self-assessed tax receipts, and the surplus reflects higher revenue alongside controlled spending, aided by lower debt interest payments. For the first ten months of the current financial year, borrowing is lower than a year ago, reinforcing fiscal improvement.
2 hours ago
Retail sales volumes show largest rise since May 2024
The retail sector kicked off the year strongly, with January volumes up 1.8%—the largest monthly increase since May 2024. The ONS attributed gains to artwork and antiques sales and continued strength in online jewelry, arts, tech, and furniture categories, even as supermarket sales dipped somewhat. Overall three-month volumes to January were up 0.1% from the three months to October, and 2.6% higher year-over-year. Grant Fitzner observed that retail activity regained momentum in the new year after a softer November, signaling a healthier start to 2026.
2 hours ago
Brent Crude price rises, index set for improved session
Brent Crude has continued its ascent amid concerns over Middle East supply, trading around $72.17 per barrel after a 0.7% rise during Asia hours and a weekly gain exceeding 6%. The prospect of US action against Iran unsettled equities, with the Dow slipping 0.5% and the S&P 500 and Nasdaq each down about 0.3%, before the trading day’s open. Analysts expect today’s session to open with a modest lift of roughly 46 points for the major indices.
