Welcome to the final Week Ahead of 2025. This weekly update will take a break over the festive period and return on 2 January 2026.
Company news is expected to be fairly thin next week, but the economic calendar is relatively busy. One key focus for UK investors will be the Bank of England interest rate decision on Thursday.
In theory, at least, November’s Budget is expected to result in a reduction in inflation of up to 0.5% by the middle of next year. This naturally supports the case for a rate cut.
City projections suggest the Monetary Policy Committee (MPC) will vote to cut the Bank Rate by 0.25% to 3.75%, after having held rates unchanged since August. A cut to interest rates is generally seen as positive for equity markets. It reduces the cost of borrowing and puts downward pressure on yield expectations, potentially supporting higher asset prices.
Source: Bank of England
Despite this consensus view, next week’s MPC vote is expected to be quite tight. There’s a still view among some MPC members – including BoE Deputy Governor Clare Lombardelli – that inflation remains a concern.
Ms Lombardelli was quoted in the FT (£) this week suggesting it might be wise to “slow down a bit” [on rate cuts], saying she worries “more about the upside risks to inflation”.
One factor that may prove relevant is the latest UK unemployment data, which is due on Tuesday. Higher unemployment could potentially ease the path to another interest rate cut, as it might suggest greater slack in the economy than is desirable.
Company news preview
UK and US company results are likely to be thin on the ground next week, if my usual data sources can be trusted. In the remainder of this piece I’ve selected three stocks (one US, two UK) for a closer look.
As usual, scroll straight to the bottom of this piece to see our Economic and Company Reporting calendars for the next week.
Nike (NYQ:NKE)
Shares in the sportswear giant have fallen by around 60% from their 2021 highs.
When I first saw this chart, I thought it might suggest a buying opportunity for the stock. But I’m not…
