New car sales have surged by 13.7 percent year-on-year, reaching a total of 312,891 vehicles last month, marking the strongest September performance since 2020. This growth was bolstered by the introduction of a new electric car grant, as reported by the Society of Motor Manufacturers and Traders (SMMT). Notably, the month saw sales of 72,779 new battery electric vehicles—an unprecedented monthly volume. When combined with hybrid vehicles, electrified models now make up the majority of new registrations, with their market share climbing to 22.1 percent. Overall, the automotive market has shown a 4.2 percent increase year-to-date, following the second-largest sales month of the year.
In France, the resignation of Prime Minister Sébastien Lecornu—less than a month into his term—triggered a significant drop in the stock market, with the CAC 40 index plummeting by 2 percent to 7,921.14. The political upheaval led to rising government bond yields and a depreciation of the euro against both the dollar and the pound. Philip Shaw, chief economist at Investec, commented on the situation, indicating that Lecornu faced an “impossible” task with the measures he proposed. The uncertainty surrounding potential fresh elections remains a topic of speculation, as President Macron has accepted Lecornu’s resignation.
In corporate news, Speedy Hire’s shares rose sharply by 13 percent after the company entered a five-year supply agreement with HSS Hire Group, where Speedy will act as the principal equipment supplier to HSS’s digital marketplace. Additionally, Speedy gained a 9.99 percent stake in HSS, whose shares soared by 50 percent, signaling the completion of its strategic transformation. HSS also disclosed the sale of HSS Service Finance Limited, which is pending regulatory approval. Despite the challenges, HSS reported revenue growth from £312.4 million to £379 million over the past 15 months, though it faced a substantial loss before tax due to an impairment charge.
Meanwhile, the FTSE 100 index saw modest gains, climbing 4 points to 9,495.29, thanks to rising commodity prices and favorable global equity market conditions. Precious metals miners reported gains, with BP and Shell benefiting from an increase in Brent crude prices. However, shares in Mondi dropped significantly following a profit warning due to challenging trading conditions, including weaker performance and maintenance shutdowns.
In the flavor and fragrance sector, Treatt has recommended an increased takeover offer of £173.8 million from rival Natara Global, proposing 290p per share in cash, which is significantly higher than the earlier offer. The board considers this new proposal fair and reasonable, encouraging shareholder approval.
Shawbrook, a specialist lender, has announced plans to float on the London Stock Exchange, potentially valuing the business at £2 billion. The company, alongside private equity owners, will issue new shares to aid growth and offer retail investors an opportunity to participate. Recent results showed a pre-tax profit of £163.1 million for the first half of the financial year.
In the luxury automotive sector, Aston Martin has issued a warning regarding expected profits and production levels due to global economic challenges and tariff impacts. The company anticipates a decline in wholesale volumes for the current financial year and is conducting a thorough review of its cost structure and product plans.
Jaguar Land Rover (JLR) is preparing to resume production after the recent cyberattack that halted operations. Manufacturing is set to restart at the engine factory in Wolverhampton, while the company works toward restoring full production capacity across all facilities.
On the international front, Japanese stocks hit an all-time high following the election of Sanae Takaichi as leader of the ruling Liberal Democratic Party. Her ascent raises hopes for forthcoming fiscal stimulus. In the commodities markets, gold prices have surged above $3,900 an ounce as investors turn to safe-haven assets amid concerns over potential government shutdowns in the US. Bitcoin has also experienced gains, reflecting a trend of investing in alternative assets during financial uncertainties.
