Shares in brick maker Ibstock were under pressure on Wednesday after the company announced rising fixed costs attributed to increasing capacity.

Ibstock shares were down 14% at the time of writing. 

If it had not been for the rising costs base, Ibstock’s trading statement would have been very well received. Volumes in the first half of the year are expected to far outstrip those of the same period last year. The company has been dogged by slow housing sales, which are now eventually picking up.

However, rising cost inflation is weighing on margins and is proving to be a major disappointment for investors. The company now sees adjusted EBITDA in the range of £77 million to £82 million, flat on last year’s £79 million.

“Ibstock continues to build momentum in 2025, with an increase in residential construction leading to an uplift in demand for the brickmaker’s products. As a result, first-half sales volumes look set to land materially ahead of the prior year,” said Aarin Chiekrie, equity analyst, Hargreaves Lansdown.

“But it’s not all good news. As Ibstock’s been firing up the kilns used to make the bricks and adding back capacity at several of its factories, its fixed costs have soared.

“Until demand and production ramp up further, operations won’t be as efficient as the group would like, and profitability is getting squeezed in the meantime. On top of that, average selling prices have been hurt by a shift in mix towards newbuild markets, which have recovered quicker than the broader construction market. Again, that’s weighing on profitability and full-year underlying cash profit (EBITDA) guidance of £77-£82mn fell well short of the market’s £90mn expectations.”

Generative AI analytics firm GenIP is nearing $1 million in total orders since the company was listed in London last year. 

An announcement released on Tuesday revealed the AI company has won orders totalling more than $850,000 since its IPO in October 2025, following the expansion into Chile with an order for 30 analytical assessments from a leading research organisation.

“I am delighted to announce another new international contract with a leading research university, marking GenIP’s first entry into the Chilean market,” said Melissa Cruz, CEO of GenIP.

“The institution has purchased 30 Invention Evaluator assessments, to support technology commercialisation decisions across its research portfolio. This milestone strengthens GenIP’s growing footprint in Latin America and underscores global demand for its GenAI-enabled services.”

GenIP’s move into Chile comes as part of a wider expansion into Latin America, which includes a recent deal with a government agency in Brazil.

The number of orders received since GenIP’s IPO has picked up pace in recent months, with large contracts from clients in Saudi Arabia and Singapore.

Providing insight into the company’s cost base and expansion plans, Cruz continued to explain GenIP’s financial position, highlighting that a large proportion of last year’s costs were related to the IPO and would not recur. 

“GenIP’s global expansion is underpinned by a healthy balance sheet that allows the Company to capitalise on opportunities as they arise,” Cruz said.

“As outlined in our audited results, the reported Operating Loss of $888,545 included $358,924 of share-based payments relating to the IPO that are not expected to recur. Customers typically pay in advance for Invention Evaluator report orders, providing the Company with operating cash flow and future revenue visibility, with revenue recognised upon completion and delivery of the report to the client. These factors help maintain the Company’s strong financial position.”

The FTSE 100 was on course to breach record highs on Tuesday despite several UK economic data releases pointing to a slowdown in the UK’s jobs market and retail sector.

Today’s gain served as a reminder that the FTSE 100 is not a representation of the UK, as the index added over 0.5% in early trade, driven largely by a weaker pound and hopes that the Bank of England would soon cut interest rates again.

The housebuilders surged higher on Tuesday as investors positioned for an easing of monetary policy that could help support demand for new build properties. A strong trading statement from Bellway also helped bolster the sector.

“UK housebuilders were at the top of the wish list for many investors after Bellway reported ‘robust’ spring trading. It was enough to drive a rally in the sector, putting the likes of Persimmon, Barratt Redrow and Taylor Wimpey at the top of the FTSE 100 risers’ list,” explained AJ Bell’s Russ Mould.

Persimmon was the FTSE 100’s top risers with a gain of 4%.

The Bank of England has been measured in the pace of its interest rate cuts, pointing to higher inflation and relatively robust economic as reasons to be cautious. However, today’s data will pile pressure on the voting members of the MPC to take action to prevent any further deterioration in economic conditions.

This was reflected in a weaker pound against the dollar, which helped London’s overseas earners gain. Diageo, Shell, and Ashtead were all heading higher.

UK jobs market

UK unemployment is on the rise. The number of people on UK payrolls fell the most since the beginning of the pandemic in May.

“The first labour market data since the rise in National Insurance contributions and the increase in the National Living Wage has been effective and suggests that employers have responded to rising labour costs by scaling back their workforce and hiring plans,” said Seemanti Ghosh, Principal Economist at the Institute for Employment Studies.

“The number of payrolled employees in the UK declined further between March and April 2025, potentially reflecting employers’ reactions to new cost pressures, alongside wider economic uncertainty.”

The first month following the introduction of Rachel Reeves’ national insurance ‘jobs tax’ saw employers slash 109,000 staff from payrolls. The unemployment rate increased to 4.6%. 

The positive market reaction for UK stocks to what is by no means good news is predominantly the result of investor positioning for a response by the authorities. Either a Bank of England rate cut or a scrapping of the national insurance hikes by the Chancellor are entirely plausible reactions, given that the slowing job market has been manufactured by a seemingly economically illiterate government.

AIM-listed Filtronic, the advanced micro electronics firm, secured a $32.5 million follow-on order from SpaceX for its E-band Cerus 32 Solid State Power Amplifier.

This is Filtronic’s biggest contract to date under the two firms’ strategic partnership.

The order represents a significant milestone for the company, which serves the space, aerospace, defence, and telecoms infrastructure markets. Most of the contract value is expected to be fulfilled during the 2026 financial year. The Filtronic board now expects to exceed current revenue forecasts for FY2026.

Filtronic shares were 8% higher at the time of writing.

SpaceX, Elon Musk’s space exploration and services company, has maintained a strategic partnership with Filtronic that has steadily grown and now makes up a substantial part of Filtronic’s orderbook.

The contract triggers the vesting of 10,949,079 share warrants under the strategic partnership framework. These warrants represent 5% of Filtronic’s current share capital.

Combined with previous vestings, warrants over 21,805,054 ordinary shares have now been activated, representing 9.96% of the company’s issued share capital. Additional warrants covering 4.96% of issued shares remain unvested, subject to meeting certain criteria.

“We are delighted to have secured our largest order to date with SpaceX, reinforcing Filtronic’s growing reputation for delivering high-performance RF solutions to the high-growth space market. This milestone builds on the momentum of recent contract awards and highlights the progress we are making as we expand in key strategic markets,” said Nat Edington, Chief Executive Officer of Filtronic.

Today’s deal follows another recent contract win from Airbus.

The FTSE 100 got off to a benign start to the week as investors awaited news from trade talks between the US and China in London.

London’s leading index was down 0.1% at the time of writing.

“There’s caution at the start of the week, as trade talks get underway in London to try to stem a bigger trade war erupting between the world’s largest two economies,” said Susannah Streeter, head of money and markets, Hargreaves Lansdown.

“The UK has a new role as an intermediary between a belligerent US and an unyielding China. While Xi Jinping’s administration has shown determination not to bow down to Trump’s tariff intimidation, having already been forging deeper trading relationships with other nations, there are hopes that both sides will want to agree on a deal. China’s flexed its muscles by restricting the export of rare earth minerals, vital for so many industries, including car production.”

Although markets are becoming accustomed to the unpredictability of Trump’s approach to trade negotiations, the talks in London still have the power to move markets, and traders were holding off big bets on Monday.

China-focused FTSE 100 stocks were marginally bid in the hope of progress between China and US. Glencore rose 0.8% and Prudential rose 0.9%.

However, the optimism wasn’t shared among all mining stocks, with Antofagasta and Rio Tinto trading slightly negatively.

M&G was the FTSE 100’s top riser after the asset manager received a price target upgrade from UBS. Analysts now have a price target of 275p. M&G shares were 2% higher at 248p.

WPP was the top faller on the news that CEO Mark Read will step down at the end of the year, after a period of poor performance for the shares.

“The fact WPP’s share price had more than halved over the past three years meant Mark Read’s days were always numbered as CEO,” AJ Bell investment director Russ Mould.

“Shareholders can be patient, but there reaches a point where they can wait no longer and something has to change in order to revive the share price.”

American semiconductor giant Qualcomm has reached an agreement to acquire British chip designer Alphawave IP Group for approximately $2.4 billion in a deal.

The deal will see yet another UK tech stock leave London’s markets.

The cash offer of 183p represents a premium of 96% above the closing price of 94 pence 31st March 2025 – the closing price the may before an initial offer was made. There are a number of offers on the table for investors; a cash offer and two involving Qualcomm shares.

Alphawave shares were 22% higher at 183p at the time of writing.

“Qualcomm’s acquisition of Alphawave represents a significant milestone for us and an opportunity for our business to join forces with a respected industry leader and drive value to our customers,” said  Tony Pialis, President and Chief Executive Officer of Alphawave.

“By combining our resources and expertise, we will be well-positioned to expand our product offerings, reach a broader customer base, and enhance our technological capabilities. Together, we will unlock new opportunities for growth, drive innovation, and create a leading player in AI compute and connectivity solutions. For our shareholders, the Alphawave Board is pleased that Qualcomm’s offer provides an opportunity to realise compelling value for their shares.”

While the deal provides a substantial uplift on Alphawave’s share at the beginning of the year, it is well below the group’s 2021 highs when shares traded above 450p.

Alphawave’s revenue has nearly tripled over this period.

Qualcomm’s takeover of the group is the latest demonstration of London’s equity markets’ inability to price technology shares properly.