BUSINESS LIVE: UK GDP shrinks 0.3%; Provide boss exits; Workspace embraces solar energy

Chemring reported booming demand yesterday as it benefited from global instability.

The defense group, which makes materials and components for missile systems, explosives and propellants, said orders in the year to the end of October amounted to £756 million.

This was an increase of 40 percent compared to the year before. And the order book is at its highest level in more than a decade at £922 million, the company said.

Lindsay James, investment strategist at Quilter Investors:

'UK GDP fell 0.3% month-on-month in October, down from 0.2% in September and the lack of estimates increased pressure on the Bank of England ahead of Thursday's interest rate decision.

'While no rate cuts are expected tomorrow or for a while, it will be crucial to see how the BoE monitors future economic growth and what that could mean for the path of interest rates. Calls for interest rate cuts are likely to intensify if economic data like this continues.

'Services in Britain have always been the strongest part of the economy, but this month it has caused the decline in GDP due to the problems in information and communications services. If Britain is to avoid a recession, the services sector is likely to avoid it, so such a sharp fall this month will be a cause for concern.

'With GDP growth also flat over the past three months, economic conditions in Britain are clearly tough as we work through the winter months.

'The BoE will hope it can muddle through so its higher and longer narrative can continue, but how long this can continue remains to be seen.

“This may be a fairly backward-looking data set, given that it's October, but it will remain crucial to keep an eye on as we move into 2024. The Bank of England has done well not to plunge Britain into recession so far, but interest rates are now tight and further contraction cannot be ruled out. It may take some time before things get better again.'

Flexible office space provider Workspace Group has reached an agreement with Europe's largest renewable energy producer to meet around two-thirds of the company's expected electricity demand over the next decade.

Statkraft will supply Workspace with all electricity generated by a newly built solar power plant in Devon, contributing to the UK's clean energy capacity.

This agreement marks the first clean energy deal signed to date by a London office provider, sourcing electricity directly from a renewable energy producer, the group said.

Sonal Jain, head of sustainability at Workspace, said:

'Today we have taken an important step towards carbon neutrality by decarbonising around two-thirds of the electricity consumption in our portfolio.

'The recent agreement at COP28 that countries should triple their renewable energy capacity by 2030 is supported by decisions like ours, which enable new capacity on the electricity grid, rather than simply buying from existing supply.

'This is by far the most responsible way in which we can acquire a substantial share of clean green energy.'

Neil Birrell, Chief Investment Officer at Premier Miton Investors, said:

'The UK economy contracted by 0.3% in October, more than forecast, but given recent data this should not be too much of a surprise.

'It is clear that economic growth has stalled, as would be expected given the policy measures, and that is where all eyes will now be on.

'This data is historic, but it's all about what happens next, and we'll hear the thoughts of the major central banks over the next two days.

'The Bank of England will be pleased that their actions have worked, but are concerned that they have gone too far. We'll find out tomorrow.'

Bond yields fell yesterday as fresh signs of easing inflation pressures focused attention on central banks ahead of key interest rate decisions.

British figures showed a slowdown in wage growth, while in America inflation fell to 3.1 percent.

The data anticipates the US Federal Reserve's interest rate decision this evening.

The CEO of Ladbrokes owner Entain will resign from the gambling giant with immediate effect.

Jette Nygaard-Andersen will be replaced on an interim basis by Stella David, currently a non-executive director.

David will remain in this role until a permanent replacement is found.

Nygaard-Andersen said: “The last three years have been rewarding and challenging in equal measure.

“The resolution of the HMRC investigation into the legacy business, which was sold by a former management team in 2017, represents a clear turning point for me and for Entain.

“The Group is now safe, stable and sustainable and I believe this is the right time to transition to other business and career opportunities.”

The British economy shrank by 0.3 percent in October, leaving economists expecting flat growth this month, according to new data from the Office for National Statistics.