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UK stocks fall as BoE policymaker flags inflation risks, medical device makers weigh
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UK stocks fall as BoE policymaker flags inflation risks, medical device makers weigh
Sep 25, 2025 9:41 AM

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FTSE 100 down 0.4%, FTSE 250 down 0.5%

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British medical equipment shares slide on US tariffs fears

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Petershill Partners ( PHLLF ) fall amid delisting plan

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Mitchells & Butler dives on weak Q4 sales growth

(Updates after markets close)

Sept 25 (Reuters) - London stocks closed lower on

Thursday as investors turned cautious over inflation risks and

the Bank of England's interest rate outlook, while weakness in

medical device makers and healthcare shares added to the drag.

The benchmark FTSE 100 fell 0.4%, its biggest

percentage slide in a week. The domestically focused FTSE 250

was down 0.5%.

BoE policymaker Megan Greene said on Wednesday that the

risks of inflation in Britain will prove stronger than the

central bank's forecast, meriting a cautious approach to further

interest rate cuts.

The country has the highest inflation rate among Group of

Seven economies, at 3.8% in August, and the BoE thinks it will

peak at 4% in September before falling back to the central

bank's 2% target in the spring of 2027.

Meanwhile, Wall Street share indexes fell to their lowest in

a week on Thursday, as fresh economic data and comments from a

Federal Reserve official tempered optimism over further rate

cuts.

Yields on British government bonds climbed after data showed

the U.S. economy grew more quickly than previously expected,

pushing up borrowing costs on both sides of the Atlantic.

British medical equipment and services stocks

fell 2.3% after the U.S. Commerce Department said it had opened

new national security investigations into the import of personal

protective equipment, medical items, robotics, and industrial

machinery.

Medical equipment maker Convatec Group ( CNVVF ) was the

biggest decliner on the FTSE 100, falling 5.6%, while

Smith+Nephew declined 1.2%.

An index of healthcare stocks also

declined 1.8%.

Mitchells & Butlers ( MBPFF ) fell 8.5% after the British pub

and restaurant operator reported a weak sales growth compared to

the previous quarter.

Petershill Partners ( PHLLF ) jumped 34.2% after the

investment group, majority owned by Goldman Sachs, became the

latest UK-listed firm to announce plans to delist from the

London Stock Exchange, citing dissatisfaction with its share

price and valuation.

An index of industrial metal miners continued

gains from the previous session, up 1.5%, tracking gains in

copper prices.

Rio Tinto was the top gainer in the FTSE 100, up

3.5%.

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