Shares listed in London closed Wednesday in the red, with the blue-chip FTSE 100 index down 0.20%, reversing gains earlier in the session from an upgraded outlook for the UK economy. In its latest Economic Outlook, the Organisation for Economic Co-operation and Development (OECD) has raised its forecast for the increase of the UK's gross domestic product, adjusting expectations to 1.1% for 2024 and 1.2% for 2025.
These figures are significantly higher compared to projections made in May, which estimated growth at 0.4% and 1%, respectively. The OECD identified the UK as one of the G20 countries that is experiencing relatively robust growth, thanks to a resilient global output and a slowing rate of inflation. "The global economy is starting to turn the corner, with declining inflation and robust trade growth.
At 3.2%, we expect global growth to remain resilient both in 2024 and 2025," stated OECD Secretary-General Mathias Cormann. He further emphasized that declining inflation allows for an easing of interest rates, but he warned that monetary policy should remain prudent until inflation aligns with central bank targets.
Cormann stressed the need for decisive policies to enhance fiscal space by improving spending efficiency, reallocating funds to areas that foster growth, and optimizing tax revenues. On the corporate landscape, J Sainsbury has announced its expectation to generate a shared commission income from the divestment of its automated teller machine business to NoteMachine, a UK ATM provider.
The British retailer has stated that this transaction will also aid in simplifying its core banking operations and help in cost reduction. Following this announcement, Sainsbury's saw its shares increase by 1.16%. Meanwhile, Flutter Entertainment plc saw a notable surge of 6.84% after announcing a $5 billion share repurchase program that is anticipated to commence around November.
This initiative is projected to extend over the next three to four years, marking a significant strategic move for the world's largest online betting company..