FTSE 100 Hits New Record as Markets React to AI Layoffs and Global Shifts
It’s been another eventful day on the markets, with London’s FTSE 100 edging higher once again—marking its fourth consecutive day of record gains. The index added a modest 0.06%, closing at 9,659.52 points. While that rise may seem small, it was enough to push the FTSE into new territory, reflecting cautious optimism among investors despite some major shakeups in the business world.
One of the biggest headlines driving global attention came from Amazon. The tech and retail giant announced that it will cut about 14,000 corporate jobs as part of a major restructuring aimed at integrating artificial intelligence into more areas of its operations. The company explained that these cuts are designed to streamline management layers and make teams more agile as Amazon invests billions in AI technologies. CEO Andy Jassy described this wave of innovation as the most transformative since the Internet itself, saying the company must move faster to keep up with rapid advances. Despite the layoffs, Amazon made clear it still plans to hire in key AI and engineering roles through 2026.
In the UK, HSBC played a key role in supporting the FTSE’s rise. The banking giant’s shares gained ground even after reporting a 14% drop in third-quarter profits, largely due to a legal provision related to the Bernie Madoff case. Still, HSBC raised its annual profit forecast, reassuring investors that the bank remains resilient despite the one-off hit.
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Elsewhere, UK government borrowing costs dropped to their lowest point this year. The yield on 10-year bonds fell to 4.38%, signaling investor confidence amid speculation that the Bank of England could move toward interest rate cuts. That optimism has been helped by inflation holding steady at 3.8%—slightly better than expected.
In the energy and commodities sector, Anglo American reaffirmed its 2025 production targets and slightly lifted its iron ore forecast for its Minas-Rio operation in Brazil. Meanwhile, BAE Systems made headlines with a massive £4.6 billion deal tied to Turkey’s purchase of 20 Eurofighter Typhoon jets, a move that reinforces the UK’s growing strength in the defense industry.
Adding to the day’s momentum, Barclays confirmed it will acquire US personal loan company Best Egg for $800 million, expanding its American footprint. And in a move aligning the UK more closely with the US, the Financial Conduct Authority announced plans to stop publishing the names of short-sellers, a decision welcomed by hedge funds seeking fewer regulatory hurdles.
So, while Amazon’s job cuts highlight the disruptive force of AI reshaping industries, the overall market mood remains upbeat. With the FTSE 100 pushing new highs and UK borrowing costs easing, investors seem to be betting on a more stable economic outlook heading into the final stretch of 2025.
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