16th May 2025 06:44
(Alliance News) - London's FTSE 100 is set to open higher on Friday, ahead of Monday's talks with the EU on a potential defence deal.
IG says futures indicate the FTSE 100 to open up 10.7 points, 0.1%, at 8,644.45 on Friday. The index of London large-caps closed up 48.74 points, 0.6%, at 8,633.75 on Thursday.
Sterling was quoted at USD1.3320 early Friday, higher than USD1.3279 at the London equities close on Thursday.
The euro traded at USD1.1207 early Friday, higher than USD1.1178 late Thursday. Against the yen, the dollar was quoted down at JPY145.34 versus JPY145.81.
The EU and Britain will haggle to the wire over fishing rights and food checks as they seek a deal on closer defence ties at a landmark post-Brexit summit next week. The meeting in London on Monday between UK Prime Minister Keir Starmer and the EU's top officials was planned to bring the first results from London's much-vaunted "reset" in ties.
Diplomats in Brussels said negotiations were focused on getting Britain to keep its waters open for European fishermen, in return for the EU easing checks on some food imports from the UK. Other sticking points include an EU push for a scheme allowing young people to move more easily between the two sides that London fears threatens its red line on returning to free movement.
The move is aimed at opening the door to closer cooperation as both the EU and Britain race to rearm in the face of the threat from Russia and fears US President Donald Trump will no longer help protect Europe.
In the US on Thursday, Wall Street ended mixed, with the Dow Jones Industrial Average up 0.7%, the S&P 500 0.4% higher and the Nasdaq Composite down 0.2%.
In Asia on Friday, the Nikkei 225 index in Tokyo fell 0.1%. In China, the Shanghai Composite was 0.4% lower, while the Hang Seng index in Hong Kong faded 0.5%. The S&P/ASX 200 in Sydney closed up 0.5%.
Ministers in the UK have been urged by a cross-party parliamentary group to delay reforms to farming inheritance tax until 2027 over concerns that the changes threaten to hit "the most vulnerable".
The Commons Environment, Food & Rural Affairs Committee, which includes seven Labour MPs, said the government had failed to properly consult on the policy, leaving its potential impact "disputed and unclear".
From April 2026, a 20% inheritance tax rate will be levied on agricultural assets worth more than GBP1 million, which were previously exempt. This is half the usual rate of 40%.
In a report published on Friday, Efra called on the government to push back announcing its final agricultural property relief and business property relief reforms until October 2026, to come into effect in April 2027.
The group of MPs suggested that doing so would "allow for better formulation of tax policy" and protect "vulnerable farmers" who would have more time to seek professional advice.
Meanwhile, the amount of tax Revenue & Customs has secured from wealthy people through its compliance work has more than doubled in recent years.
HMRC collected GBP5.2 billion from wealthy people through its compliance yield in 2023-24, up from GBP2.2 billion in 2019-2020. The rise suggests there may be higher levels of wealthy taxpayers not complying than previously thought, the National Audit Office said in a report.
Gold was quoted higher at USD3,218.22 an ounce early Friday, against USD3,213.28 on Thursday.
Brent oil was trading at USD64.57 a barrel early Friday, up from USD64.28 late Thursday.
In Friday's corporate calendar, full-year results from property investor Land Securities.
In the economic calendar on Friday, eurozone trade data and the Michigan consumer sentiment index.
By Emily Parsons, Alliance News reporter
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