The FTSE 100 opened 19 points higher at 9,660.95, led early by WPP, while Anglo American and Teck shareholders approved a planned merger to create “Anglo Teck” — to be headquartered in Canada and become one of the world’s five largest copper producers with more than 70% exposure to copper, pending regulatory approvals. Berkeley Group reported a 7.8% drop in first‑half revenue to £1.18bn and a 7.7% fall in profits, sold 2,022 homes (‑4%) with average selling prices down 5% to £570,000, cut operating costs 6% and reiterated full‑year and 2027 pre‑tax profit guidance of £450m while flagging a new build‑to‑rent strategy that should lift long‑term value but depress near‑term returns (first rentals expected spring 2026). Macro focus centres on today’s widely‑anticipated 25bp Fed cut (markets ~88% priced), but uncertainty in the dot‑plot and rising global yields — with other central banks turning less dovish — mean the Fed’s messaging will be pivotal for yields and equity valuations into year‑end.
The FTSE 100 opened 19 points higher at 9,660.95 with early leadership from WPP, while shareholders of Anglo American and Teck Resources approved a planned merger to create "Anglo Teck"; the combined group will be headquartered in Canada, be among the five largest copper producers globally and carry more than 70% exposure to copper, although completion remains subject to regulatory approvals. This consolidation materially concentrates copper exposure in a single listed entity and will be a key event for commodity-focused portfolios as regulatory outcomes and integration execution will determine near-term risk and long-term commodity positioning. Berkeley Group reported a 7.8% decline in first-half revenue to £1.18bn and a 7.7% fall in profits, sold 2,022 homes (down from 2,103) with average selling prices falling 5% to £570,000, and cut operating costs by 6%; management reiterated full-year and 2027 pre-tax profit guidance of £450m. Stifel noted a 2% beat to profit before tax and margin expansion of 60bp, while management flagged a strategic shift into build-to-rent that will depress short-term returns but could enhance value as rents mature, with first rental units expected in spring 2026. Macro risk is dominant: markets price an ~88% chance of a 25bp Fed cut today but remain uncertain about next-year cuts in the dot plot, while benchmark yields have risen since September and other central banks (RBA, BoC, ECB, BoJ) are signaling less dovish paths; higher yields threaten valuations, especially for highly leveraged companies. JPMorgan’s 4% share drop after a cost warning underscores bank-level margin risks from card competition and AI spending; therefore, Fed messaging and subsequent yield moves will likely set tone for equities into year-end.
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