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Yields on British government bonds declined across the spectrum, reflecting a similar trend in eurozone bonds ahead of the data release. Earlier this week, Trump increased tariffs on steel and aluminium imports, but the UK received an exemption due to a limited trade agreement established in early May that set the stage for future discussions. Global focus also remained on trade talks, with possible easing of tensions between the U.S. and China following Trump's phone conversation with Chinese President Xi Jinping on Thursday. In the stock market, homebuilders led the gains with an increase of 0.9%.

Finance Minister Rachel Reeves announced on Thursday that positive business surveys and a strong first-quarter GDP indicate the British economy is rebounding after a sluggish end to 2024. However, concerns persist among the public regarding slow improvements in living standards. This week's purchasing managers' indexes showed a recovery in economic activity following a sharp decline in April, caused by the effects of Trump's tariffs. Investors are closely monitoring employment data and April GDP estimates, set to be released next week, for further insights into the nation's economic health.

Single Stock Stories & Broker Updates:

• UK-listed shares of Canal rise 2.7% to 206.2p after reaching an agreement with French authorities on tax rules for TV services, with a one-off exceptional impact expected in H1 2025. No cash impact from litigation; confirms 2025 revenue and EBITDA outlook, anticipating cash flow from operations over 500 mln euros. YTD, CAN up 0.7%.

• UK-listed Canal shares rise 2.7% to 206.2p after agreeing with French authorities on tax rules for TV services, expecting a one-off impact on H1 2025 income statement. There is no cash impact from litigation, and the outlook for 2025 revenue and EBITDA has been confirmed; additionally, cash flow from operations in 2025 is expected to exceed 500 million euros ($571.3 million). YTD, CAN is up 0.7%.

• British automotive service provider Pinewood Technologies sees a jump of 15.5% to 461.2p, marking its highest price since August 2007. The company's customer-facing brand, Pinewood.AI, acquires a 51% stake in Pinewood North America LLC from Lithia UK Holdings, a subsidiary of Lithia Motors. The transaction is valued at $76.5 million and will be funded by the issuance of 14.6 million new ordinary shares at 386.5p each. This agreement establishes the joint venture's value at $150 million. As of the last close, PINE has gained 11.28% this year.

Technical & Trade View

FTSE Bias: Bullish Above Bearish below 8700

• Primary support 8500
• Below 8500 opens 8250
• Primary objective 8900
• Daily VWAP Bullish
• Weekly VWAP Bullish

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