The FTSE 100 was marginally lower on Wednesday, reflecting minor disappointment with soft UK GDP figures that hit some of London’s more UK-centric large caps.

After flatlining in June, UK GDP growth again produced zero growth in July, raising concerns about the health of the UK economy in a period that should have seen some uplift from various sporting events.

Some may blame the weather, but two consecutive months of zero growth are concerning, and investors sold off UK-focused sectors such as housebuilders and retailers on Wednesday.

Persimmon and Berkeley Group Holdings were down more than 1% as the market digested the construction component of GDP and a slowdown in July.

“A rise in output from the large services sector was offset by a fall in production and construction during the month. This picture of stagnation is another piece in the jigsaw for Bank of England policymakers to consider when they meet next week,” said Susannah Streeter, head of money and markets, Hargreaves Lansdown.

“There may be slightly heightened concerns around the table that the economy is on the cusp of a downturn. This will reinforce expectations for two rate cuts in the months to come, but the jury is still very much out when it comes to next week’s decision. Financial markets have been assessing the chance that rates will be kept on hold as above 75%, so this data point alone is unlikely to move the dial significantly.”

Rentokil Initial

Rentokil Initial shares plunged on Wednesday after the pest control group made worrying sounds about its North American business. The company said branch integration and softer sales is likely to lead to a £20m drop in operating profit. The news wasn’t taken well by investors and shares were down 17% at the time of writing.

“You would think pest control is a stable business with consistent demand but that consistency hasn’t been reflected in the performance of Rentokil of late,” said Russ Mould, investment director at AJ Bell.

“Its latest warning is a bit of mess. While its business in the rest of the world is getting on OK, the company is struggling in North America.

“Weaker than expected revenue has been compounded by problems of the company’s own making such as insufficient control of costs hitting profitability.”

Entain was the top gainer on Wednesday as the gambling company continued its rally after recent upbeat news from US operations. Entain was 2% higher shortly before lunch.

Rightmove are standing its ground and have rejected an unsolicited bid from Rupert Murdoch’s REA Group.

REA Group announced its interest in Rightmove in August, and according to a statement by the Rightmove board released on Wednesday, a bid received has fundamentally undervalued the company.

In a cash and shares offer, REA Group have offered the equivalent of 698p for Rightmove, a 26% premium to the share price 30th August. Rightmove shares were 0.5% higher at 674p at the time of writing on Wednesday.

Should a deal eventually be struck, Rightmove, the UK’s leading property portal, would sit alongside similar Australian property portals in REA Group.

Rightmove is the latest UK-listed company to receive interest from an overseas entity. Yesterday, Centamin accepted an approach from AngloGold Ashanti. 

REA have until 30th September to make a firm offer for Rightmove.

Sponsored by Hexigone

Hexigone, with its award-winning, patented, corrosion preventing technology, was founded in 2016 by Dr. Patrick Dodds, with the aim to make a safer, more sustainable, anti-corrosion for all metal assets.    

Now, through their Crowdcube campaign, Hexigone is raising to fast track the upscale of their manufacturing capacity and capitalise on their recent UKSPF infrastructure grant – to accelerate their growth and meet the growing global demand for a sustainable, high performance, corrosion inhibitor – with the aim to eliminate toxic chemicals from industrial processes and champion a more circular economy approach. 

Corrosion silently causes billions in damage each year, crippling metal infrastructure and industrial equipment worldwide. Traditional corrosion inhibitors, such as Hexavalent Chromate, have long been the industry standard. However, Hexavalent Chromate, infamous for its role in the Erin Brockovich case, is a known human carcinogen and environmental hazard. Although restricted in Europe, it continues to be used globally, posing significant risks to human health and the environment.  

After decades of research and driven by the growing need for a safer, more sustainable solution, Dr. Patrick Dodds made a breakthrough discovery that aims to revolutionise the coatings industry. His creation, Intelli-ion® AX1, is a ‘smart’, high-performance corrosion inhibitor that is both sustainable and poised to disrupt the $1 billion corrosion protection market. 

As the coatings industry searched for alternatives, Zinc Phosphate emerged as a “sustainable” solution. Yet, this compound comes with its own environmental issues. Extracted through strip mining, Zinc Phosphate not only depletes natural reserves but also contributes to large-scale environmental degradation. Alarmingly, Zinc Phosphate has been added to the EU’s critical materials list as natural reserves dwindle.  

(The coatings industry urgently needs a safe, effective, and sustainable solution.) 

Intelli-ion® AX1—Hexigone’s innovative corrosion inhibitor is not only safer but also highly effective – providing superior protection against corrosion. 

But the innovation doesn’t stop there. Hexigone’s Intelli-ion® AX1 also embodies the principles of a circular economy. Unlike traditional inhibitors, which depend on finite natural resources and follow a linear model—where resources are manufactured, used, and discarded—Intelli-ion® AX1 is part produced from repurposed chemical waste streams – reducing environmental impact and minimising industrial waste.  

Proven Success and Growing Demand 

Intelli-ion® AX1 has already demonstrated its superior performance across a range of industries, from automotive to infrastructure. Extensively tested in harsh environments—Intelli-ion® AX1 consistently outperforms traditional inhibitors, offering longer-lasting protection. 

In 2022, Hexigone saw a 3000% increase in manufacturing, underscoring the rising global demand for sustainable corrosion protection. With major partnerships secured and a robust international distribution network, Intelli-ion® AX1 is rapidly gaining traction among industry giants. Their technology has already garnered international recognition and industry awards for its innovation and sustainability. 

With growing global demand for sustainable solutions, they are now positioned for a new phase of rapid growth. 

Join the Revolution: Help Us Accelerate Global Impact 

Your investment will enable Hexigone to accelerate the production of Intelli-ion® AX1, replacing traditional strip-mined chemicals with a sustainable solution that is safer for both people and the planet. Together, we can drive the transition to a more sustainable, circular economy while revolutionising corrosion protection across multiple industries.

WH Smith shares soared on Wednesday after the retail group issued an encouraging trading update revealing further growth for its travel division.

The group enjoyed a 10% increase in travel sales in 2024, driving group revenue 7% higher. The UK travel unit enjoyed sales growth of 12% while the Rest of the World saw revenues surge 15%. North American sales ticked 6% higher.

High street sales were 4% softer, but investors won’t care as the company no longer prioritises this area of the business amid a general reduction in footfall.

WH Smith shares were over 10% higher at the time of writing.

While the high street dies a slow, painful death, WH Smith has switched its focus to the captive travel market. In a travel setting, WH Smith charge a premium, and consumers have little or no other options at airports or train stations. 

The strategy has been a complete success, and WH Smith is emerging as a travel-focused retailer largely unscathed by the destruction of the high street, which has sent so many into administration.

 “It’s no secret amongst WHSmith shareholders that following the pandemic the retailer’s travel arm has more or less dominated the company’s earnings. The post-Covid travel boom encouraged WHSmith to double down on the sector, investing in more stores in airports, train stations and service stations across the UK, the US and around the globe,” said Mark Crouch, Market Analyst at investment platform eToro.

“This morning’s trading update reaffirms that case, as once again WHSmith’s travel business has played a dominant role for the company as peak summer travel demand boasted the retailers’ revenues and overall financial position, leading management to announce a $50m share buyback this morning.”

Investors, already happy with the strong progress in sales, will be delighted to learn WH Smith has announced a £50m share buyback today as part of their capital

On 14 November, WH Smith will release preliminary results for the year ending 31 August.

Prediction markets are one of the latest crazes in trading on the outcomes of future events; with the rise of prediction market tokens, investors now have a whole new way of speculating. The tokens represent bets on the yes/no outcomes of certain events and while they do offer exciting investment opportunities, they are also fraught with risks-especially regarding market volatility.

Market volatility is the degree of fluctuation or change in price within a market or of a specific asset within a given period. Variance measures the degree of fluctuation in an asset’s price within a given time; a high variance means that the asset price fluctuates a lot within a short time while a low variance means that the price changes are not very frequent. In the context of prediction markets, volatility can be attributed to a number of factors which include; forecasting errors, the general mood of the market and any other events that may affect the commodities being traded.

In their nature, prediction market tokens are inherently speculative. Unlike traditional investments, which might be based on tangible assets or set revenue streams, the value of the prediction tokens depends on the expected events to take place. It is because of such speculation that prices can wildly fluctuate as traders react to news, sentiment shifts and unexpected developments concerning the event forecasted.

One example of a prediction market token is BTC Bull Token, which is associated with the future price of Bitcoin. This token enables investors to predict whether the cost of the Bitcoin is likely to rise or drop. Given that Bitcoin is known to have a rather high level of price fluctuations, the same can be said about the token. Several factors have made the prices volatile.

Cryptocurrency markets reflect a great variety of factors, including news in regulation, technological advances and macroeconomic trends. Since the prediction markets are speculative, it is often observed that traders are not trading based on the fundamental value of an asset but based on their expectations of future events. For instance, information about probable changes in the legal framework, or dramatic entries of large institutional investors into the Bitcoin market, may lead to sharp and unpredictable changes in the price of a token. It is due to such events that traders may purchase or sell the token to profit from the bitcoin fluctuations.

Another important factor affecting volatility is liquidity. Many times, the prediction markets may be illiquid; that is, either side may be shallow in the buyers or sellers hence, may not afford to absorb trades without having a very significant effect on the price. In an illiquid market, even small trades could lead to disproportionate movements in the price, therefore increasing volatility.

Due to these factors, risk management in the context of prediction market tokens needs to be done in a specific manner. Diversification is one of the ways of controlling risks in the investment process. By diversifying investments across various assets and including several prediction market tokens and other types of investments, it is possible to minimize the negative effect of the volatility in a particular asset. This approach assists in reducing the risks of loss that may result from the fluctuations in the prices of a specific token through other stable investments.

It is very important to assess the risk before investment. Knowing the particular risks of the prediction tokens, including market volatility and uncertainties of the event, will give more confidence in your decisions. Before deciding on investments in tokens, consider the dynamics of the market on which the token price depends. To mitigate risk, one also needs to have information on the market conditions as well. This will enable you to be in a position to know when a particular event is likely to affect the price of cryptocurrency and thus the price of a token. Knowing what is likely to happen in the market at a given time will help to plan for it and hence minimize losses when the market is volatile.

Another effective way of risk management could be implemented using stop-loss orders. These will serve to limit potential losses by the immediate sale of tokens when their prices fall below a predetermined price level. This may turn out to be one of the effective ways to protect oneself against sudden plunges in the value of one’s investment during very volatile days.

As such, investing in the tokens of prediction markets is bound to be rewarding but challenging in equal measure due to their naturally volatile nature. By knowing what leads to volatility, making use of diversification, risk assessment, staying informed and using stop-loss orders, an investor will sail through this speculative landscape with a lot more ease. It is the prudent and well-informed approach, whether one is betting on the momentum of Bitcoin’s prices or other events, balancing potential rewards with associated risks for more strategic investments.