The FTSE 100 had another underwhelming session on Friday, despite US equities reaching fresh highs overnight.

US stocks were buoyed by better-than-expected US GDP and Federal Reserve members calling for rate cuts. The S&P 500 closed at 6,501, up 0.3% overnight.

Unfortunately, there was little direct read-across for UK stocks, and the FTSE 100 was driven largely by sharp declines in banking stocks following suggestions that the government should launch a windfall tax on banks to help plug budget gaps.

The reports were not taken well by the banks or the FTSE 100 as a whole, and the index was down 0.4% at the time of writing.

“Shares in UK banks including Lloyds and NatWest have taken a hit as the idea of a tax raid on lenders was suggested by think-tank IPPR,” said Russ Mould, investment director at AJ Bell.

“It’s hardly a surprise that every cushion is being upended in the hunt for extra cash to fill the much-discussed black hole in the Treasury’s finances.

“The issue is whether taxing the banks more will end up stifling the very growth the government is keen to foster, by crimping lending to businesses and households alike.

“The banks will undoubtedly argue as such, and shareholders may not want to see any such raid either. The wider public may see it differently, given how HSBC, Barclays, NatWest and Lloyds are expected to earn some £44 billion between them worldwide in 2025, their third-best year ever, after 2023 and 2024.”

NatWest was the FTSE 100’s top decliner, with a 4% decline. Lloyds was close behind with losses of over 3%.

Barclays also lost around 3%.

Banks have played a significant role in the FTSE 100 breaking record highs this year, so news of a windfall tax will weigh on investor sentiment.

There was strength in Rentokil, Babcock, and Rolls-Royce, but not enough to keep the index anywhere near positive on the session.

US data due for release later on Friday will likely dictate trade going into the weekend as traders position themselves for shifting interest rate expectations.

Metals One Plc has announced a ‘major’ strategic investment of C$750,000 in Lions Bay Capital Inc., expanding its global gold and copper exposure through Lions Bay’s portfolio of assets.

The AIM-listed minerals exploration company will acquire 7,500,000 common shares, giving it a 19.1% stake in the TSX-V listed Lions Bay.

Gold Processing Plant Revival

Lions Bay’s primary focus centres on bringing a South African gold processing plant back into production by Q4 2026. The company holds an option until November 2025 to acquire the cogeneration facility for US$1.4 million.

The plant represents exceptional value, having originally cost approximately US$20 million to commission before shutting down in 2021 after just 18 months of operation. It previously supplied steam and power to an adjacent chemical complex.

Once refurbished, the facility will process approximately 5,000 tonnes of gold-bearing concentrate per month. Metals One believe this provides an attractive alternative to exporting concentrate to Asian smelters, with roasting technology that exposes gold for conventional extraction.

“We believe the Lions Bay’s gold processing plant in South Africa offers exceptionally attractive economics,” said Craig Moulton, Chair of Metals One.

“The near-term cash flow opportunity complements our earlier stage critical metals exploration projects, balancing Metals One’s asset base. With a market capitalisation of under C$4 million and a portfolio of other projects, we regard this as a highly opportunistic investment.”

Through Lions Bay, Metals One gains exposure to a diversified portfolio of mining investments. Key holdings include a 45.22% stake in Fidelity Minerals, which owns copper-gold porphyry projects in Peru and Canada.

Other investments span Epic Minerals’ tin and copper-gold projects in Queensland, KALiNA Power’s low-carbon electricity generation, and Greensands Australia’s organic fertilizer technology.

Lions Bay also holds a debt loan related to the Bosveld gold mine, which operates a 60,000 tpa gold treatment plant as a toll processing facility.

The FTSE 100 was lower on Thursday as banks and utilities dragged on the index in what was a fairly benign trading session.

London’s leading index was 0.4% lower at the time of writing.

The FTSE 100 has posted a string of minor losses as the index retreats from record highs, but the losses have been minimal, and one strong session for the index will send it back into record territory.

With summer drawing to a close, all eyes were on Nvidia’s results last night for a potential catalyst for the stock market. The company’s earnings didn’t disappoint, but they weren’t enough to spark a rally in Nvidia shares or the broader market. Given Nvidia’s gains in recent months, a minor downtick in the stock price was to be expected, considering the numbers didn’t blow investors away.

 “The market was laser focused on the third-quarter guidance from artificial intelligence (AI) chip group Nvidia. Second-quarter results were in line with expectations, and the third quarter guidance was roughly in line with what had pencilled in, but Wall Street wanted more,” said Garry White, Chief Investment Commentator at Charles Stanley.

“Earnings and guidance are usually ahead of analysts’ expectations – and the market was disappointed that there was not a more bullish assessment of current quarter revenue. However, spending on data centres rumbles on and the growth story at the world’s largest company continues. These are still a good set of results – but volatility is likely as the bulls and bears of the AI industry continue to debate the industry’s future.”

US futures were heading for a slightly higher open as markets shrugged off Nvidia’s 2% pre-market decline.

There were very few big movers on the FTSE 100 leaderboard with a distinct lack of corporate news to drive shares. Aviva was the top faller with losses of 1.8% while Diageo gained 2% to take the top spot.

There were losses for banks Lloyds and NatWest, while housebuilders ticked marginally higher.

JD Sports looked set to continue its rally and was knocking on the door of 100p following upbeat results yesterday.

Nvidia shares were lower in the premarket on Thursday despite the chipmaker beating expectations and confirming demand remained robust.

It was beats all round for Nvidia in Q2 with revenue, EPS, and Q3 revenue guidance all outstripping analyst estimates.

However, such are the sky-high expectations of Nvidia, shares dipped in the premarket, as the stock followed a familiar playbook of rallying into earnings and dipping afterwards.

The gains were minimal, and the stock maintains its spot as the world’s most valuable company.

“The law of large numbers seems irrelevant here – despite its scale, Nvidia continues to defy expectations as consensus underestimates the opportunity at hand. Third-quarter revenue guidance at $54bn is a strong number, especially when it factors in no benefit from Chinese sales,” explained Matt Britzman, senior equity analyst, Hargreaves Lansdown.

“Nvidia’s dominance in AI infrastructure remains unparalleled, cementing its position as the cornerstone of the AI revolution. With a customer base spanning cloud giants to sovereign entities and a relentless pace of product innovation, Nvidia continues to set the standard for the industry. Under the leadership of its visionary CEO, it’s proving to be the ultimate way to play the AI investment theme.“

Nvidia’s results have broad implications. It is the ultimate bellwether for the adoption of AI and is a major beneficiary of spending by the hyperscalers. The AI trade has driven global equity markets higher over the past two years, so the financial system is highly exposed to the outlook for Nvidia. 

Investors will be largely reassured that momentum is intact after last night’s instalment.

Empire Metals shares jumped on Thursday after announcing a major ‘breakthrough’ in processing technology at its Pitfield Project in Western Australia.

The company achieved exceptional titanium recoveries and produced ultra-high purity titanium dioxide through conventional processing methods, with the initial rougher stage flotation achieving 77% recovery rates, while the cleaning stage performance reached an impressive 90% from fine, weathered ore samples.

The results represent a significant milestone for the AIM-quoted exploration company and shares reacted accordingly with a 17% gain.

Empire Metals shares are over 700% higher in 2025.

Testing confirmed that weathered ore at Pitfield can be processed using standard separation and refining techniques, delivering industry-leading performance metrics.

The final titanium dioxide product exceeded industry standards with 99.25% purity. Negligible impurities make the product suitable for both titanium sponge metal production and pigment manufacturing applications.

This purity level positions Empire’s potential product at the premium end of the titanium market, and the high-grade material commands superior pricing compared to standard titanium feedstock. Today’s announcement will go a long way to justifying meteoric gains in Empire’s shares.

“These results mark a step change in Pitfield’s development. We now have clear evidence that the ore is ideally suited to conventional mineral separation and refining, producing a high-purity titanium product with strong recoveries. This sets Pitfield apart from ilmenite-based projects, which typically face lower recoveries, higher costs, and significant environmental challenges,” said Shaun Bunn, Managing Director.

“Pitfield already stands out for its exceptional scale, continuity of high-grade near-surface mineralisation, and Tier 1 location with access to infrastructure. With this breakthrough in process development, we can now demonstrate a highly efficient and environmentally responsible route to producing multiple high-value titanium products.”

Tungsten West has received a significant boost for its Hemerdon tungsten and tin mine project in Devon, with the Export-Import Bank of the United States expressing interest in providing up to $95 million in financing.

The non-binding Letter of Interest comes under EXIM’s new Supply Chain Resilience Initiative, designed to strengthen critical mineral supply chains for US businesses. This potential funding could form a major component of the debt financing needed to restart production at the historic Devon mine.

Tungsten West shares were 41% higher at the time of writing.

Unlike traditional project financing, the proposed EXIM funding would not be tied to specific equipment purchases. Instead, it hinges on Hemerdon securing offtake agreements with US buyers, offering greater flexibility in how the funds are deployed.

EXIM has identified the project’s connection to its China and Transformational Exports Program, which aims to counter Chinese export support and advance American leadership in key sectors.

The US doesn’t mine its own Tungsten and is heavily reliant on China, something Donald Trump will want to change.

Tungsten is classified as a critical mineral by both the US and UK governments due to its essential role in defence, aerospace, and industrial applications. The metal’s scarcity and strategic importance make securing Western supply sources a priority for policymakers.

Next Steps for Hemerdon

While the Letter of Interest represents significant progress, Tungsten West must now work to satisfy EXIM’s requirements, particularly securing the necessary US offtake agreements.

The Hemerdon mine previously operated as one of Europe’s largest tungsten producers before closing in 2018.