The FTSE 100 index successfully closed the first trading session of the week on a positive note, gaining 0.47%. This comes despite notable losses in the gambling industry as speculation mounts over potential tax increases from the government. Notably, Entain and Flutter Entertainment experienced significant declines of 8.03% and 5.99% respectively by the end of Monday's trading session. Reports have emerged that UK Chancellor Rachel Reeves is contemplating a proposal from two prominent think tanks aimed at raising taxes on online casinos and bookmakers.
This tax hike could potentially generate up to £3 billion sterling. The announcement of this significant decision could take place during the country's upcoming monthly budget, according to various media outlets. In other corporate developments, TI Fluid Systems has attracted attention by securing a fifth all-cash bid from ABC Technologies, with an offer priced at £2 sterling per share.
This proposal resulted in an impressive surge of 19.45% in the company’s stock price at closing. On a separate note, pharmaceutical giant GSK celebrated a moderate gain of 0.98%. This uptick followed the release of data from two late-stage trials that demonstrated the efficacy and safety of its ultra-long-acting biologic, depemokimab, in mitigating nasal polyp size and nasal obstruction in patients with chronic rhinosinusitis.
This result was notably compared to a placebo and standard care after 52 weeks. As investors brace for a busy week of economic events in the UK, anticipation builds for the publication of payroll and employment figures on Tuesday. This will be followed by inflation data on Wednesday and retail sales figures on Friday.
Analysts have forecasts that highlight a potential easing in inflation rates; having moved sideways in August, headline CPI is expected to revert below the Bank's 2% inflation target. Predictions indicate a decrease of 0.4 percentage points to 1.8% Year-over-Year, which would represent the lowest rate since April 2021.
This projection stands in contrast to the Bank of England’s estimate of 2.1% Year-over-Year for September, as detailed in its August Monetary Policy Report, according to insights from Daiwa Capital Markets..