Luxury fashion brand Burberry (LON:BRBY) is cautiously emerging from a tricky patch. The FTSE 100 giant narrowed its half-year operating loss to £18 million, down from £53 million a year ago, while revenue dipped slightly to £1.03 billion. Shares have risen over 10% over the past five days on optimism around its ‘Burberry Forward’ turnaround plan, which focuses on outerwear, heritage collections, and £100 million in cost savings by 2027. Sales growth in the Americas and China has picked up, and CEO Joshua Schulman says customers are returning to the brand. After a prolonged period of decline, analysts see this as a small but welcome sigh of relief for the luxury retailer.
Rolls-Royce (LON:RR), meanwhile, continues to soar. The aerospace and defence giant upgraded its full-year profit forecast to £3.1–3.2 billion, reflecting strong demand in civil aerospace and defence. Global air travel recovery, rising engine flying hours, and new export deals have powered the rise. The company is also making inroads into small modular reactor technology in the UK, a move expected to create jobs and economic growth. Rolls-Royce shares hit new highs on the back of the results, up nearly 95% year-to-date.
The UK housing sector is under pressure. Taylor Wimpey has cited “challenging” market conditions and uncertainty ahead of the upcoming Budget, with net private sales falling and the order book shrinking. Shares have been declining over the past week, dragging other homebuilders lower. Analysts note that chatter around possible higher taxes on expensive homes and other measures aimed at higher earners is keeping buyers on the sidelines.
Looking north, Scotland is preparing to enter the bond market for the first time. First Minister John Swinney confirmed that bonds could be issued in 2026–27, subject to market conditions and the outcome of the next Holyrood election. High credit ratings from Moody’s and S&P show confidence in Scotland’s fiscal management and economic stability, putting it on par with the UK. The proceeds are intended to fund infrastructure projects, offering a flexible alternative to borrowing from the UK National Loans Fund. Analysts say the move will help Scotland raise its profile and attract investment while managing public finances prudently.