Weekly review
By Josh White
Date: Friday 20 Jun 2025
(Sharecast News) - The FTSE 100 ended the week down 75.98 points, or 0.86%, closing at 8,774.65 on Friday.
Equity view
Japanese regulators have accepted GSK's application to expand the use of its RSV vaccine, Arexvy, to the entire adult population. Arexvy is now being considered for those aged 18 to 49 who are at increased risk of severe RSV disease, following positive Phase IIIb data showing immune response and safety in this population.
Renewable infrastructure company Octopus Renewables Infrastructure Trust has announced the €27m acquisition of a 32.6MW solar project on the outskirts of Dublin, Ireland. The site, its sixth at the operational Ballymacarney complex that ORIT already owns, will raise the total capacity of the complex by 14% to 274MW.
Shares in Downing Renewables & Infrastructure Trust soared on Friday, after it agreed to be taken over by Bagnall Energy in a £175m deal. Bagnall is to pay 102.6p per share for Dore, which owns a portfolio of renewable energy and other infrastructure assets in the UK and northern Europe.
Shares in currency and asset manager Record dropped on Friday after the company delivered a set of weaker financial results for the year to 31 March, and delivered an uncertain outlook. The company said the outlook for the current year is "highly dependent on the closing of large complex deals currently in the pipeline", though revenue is still expected to grow by a low single-digit percentage while earnings per share will be held flat.
Telecommunications firm Vodafone tapped Pilar López to take over as chief financial officer, with effect from 1 October. Pilar will succeed Luka Mucic and will begin a period of handover before her formal appointment as CFO on 1 December.
Retail conglomerate Frasers Group has walked away from the Revolution Beauty bidding process, just 10 days after confirming its interest. In a statement to the market on Thursday, the Sports Direct and Evans Cycles owner confirmed that it "does not intend to make an offer" for the cosmetics and make-up ecommerce brand.
Hotel operator Whitbread said on Thursday that it had continued to make "good progress" on each of its key strategic priorities. Whitbread said it was facing "a challenging market backdrop" in the UK, with total accommodation sales at Premier Inn down 2% year-on-year and food and beverage sales 16% lower despite a "strong outperformance" in London on both accommodation sales and revenue per available room.
Cybersecurity firm NCC Group said on Thursday that revenues had fallen in the six months ended 31 March amid a decline in its "high-volume, lower value testing and compliance engagements". NCC said overall revenue was down 6% at £156.8m, with cybersecurity revenues dropping 7.8% to £123.5m and Escode revenues growing 1.2% to £33.3m as the unit delivered a tenth consecutive quarter of year-on-year growth. Gross margins improved slightly, up from 42.8% to 43.2%.
Consumer goods company PZ Cussons said on Wednesday that like-for-like revenues were expected to have grown 8% in FY25, with reported revenues seen at roughly £505.0m. PZ Cussons said its H2 performance was driven by continued strong revenue growth in Africa, given the inflationary macroeconomic environment in Nigeria.
Online grocery fulfilment group Ocado has announced plans to build a new distribution facility in Catalonia as part of its partnership with Spanish supermarket chain Bon Preu. "Today is an exciting moment as we enter a new phase with our longest-standing international partner," said Gregor Ulitzka, president for Europe at Ocado Solutions.
Shares in Oxford Metrics tanked on Wednesday after the smart sensor tech group delivered a cautious outlook for its US business, though full-year results are still expected to be in line with expectations. Chief executive Imogen O'Connor said trading in the second half has "begun as expected", in line with previous years and usual seasonal trading patterns.
Talks about a possible merger between Tullow Oil and Canadian-listed peer Meren Energy have reportedly collapsed. According to Sky News, discussions about a tie-up were progressing as recently as this month but are now said to have been terminated. Sky said it was unclear on Tuesday evening what the reason was for the abandonment of the negotiations.
Publishing and events business Informa said on Tuesday that underlying revenues had grown 9.3% in the five months ended 31 May as it told investors that roughly 70% of FY target revenues had already been traded, booked or committed. Informa said B2B Live Events revenues were up 8.3% in the period, while its Academic Markets arm reported underlying revenue growth of 13.7%, and its Informa TechTarget wing posted an underlying revenue decline of roughly 5%, reflecting "continuing market softness" through the accelerated combination period.
Industrial equipment rental firm Ashtead posted record group rental revenues in the twelve months ended 30 April but said overall revenues had slipped as a result of lower sales of used equipment. Ashtead delivered 4% year-on-year growth in rental revenues to $9.98bn in FY25 but said group revenues were down 1% at $10.79bn as lower used equipment sales and second-hand values resulted in lower gains on sale.
Asos said on Tuesday that Aaron Izzard, currently director of group finance, has been appointed to the role of chief financial officer with effect from 1 July. Izzard succeeds Dave Murray, who will be stepping down as CFO to pursue other opportunities. He will remain with the company for a handover period to ensure a smooth transition, Asos said.
Building, fit-out and construction services group Morgan Sindall has revealed that full-year results for 2025 will be "significantly ahead" of previous expectations. The company said that, since its last update in May, strong trading activity in the Fit Out division has continued, providing increased visibility for the rest of the year.
Consulting and engineering firm Wood Group and its joint venture partner, Tendrill International, said on Monday that they had secured a five-year contract with Brunei Shell Petroleum for brownfield engineering, procurement, and construction services. Under the contract, the TendrillWood JV will deliver integrated, end-to-end brownfield EPC projects across Brunei Shell Petroleum's offshore and onshore assets.
Gambling and sports betting group Entain has upgraded its guidance for BetMGM following a strong first half from the US division. The company, which owns a 50% share of BetMGM with MGM Resorts, said net revenue growth in the second quarter so far was consistent with the 34% year-on-year surge seen in the first three months of the year.
Construction and engineering firm Costain announced a £10.0m on-market share buyback programme on Monday as it confirmed that trading has remained in line with internal expectations so far in H1. Costain said it retains a "strong, high-quality forward work position" that was more than four times its annual revenue and noted that it was "busy bidding further new work" across all sectors.
Peel Hunt reported a widening of its full-year losses on Monday despite a rise in revenues, as it took a hit from restructuring costs. In the year to the end of March, the loss before tax widened to £3.5m from £3.3m a year earlier due to an increase in the company's costs, mainly from exceptional group restructuring costs.
Economic news
Public sector borrowing rose to £17.7bn in May, official data showed on Friday, despite a jump in tax receipts. According to the Office for National Statistics, borrowing - the difference between total public sector spending and income - was £17.7bn last month, higher than the £17.1bn expected by the Office for Budget Responsibility. The figure was lower than April's £20.05bn, but up £0.7bn year-on-year.
UK retail sales fell more than expected in May in what turned out to be a "dismal" month for supermarkets, according to figures released on Friday by the Office for National Statistics. Retail sales fell 2.7% following a 1.3% increase in April, which was revised up from a 1.2% jump. Economists were expecting a much more modest 0.7% decline.
British consumer confidence ticked higher in June, a long-running survey showed on Friday, as hopes grew for the economic outlook. The latest GfK consumer confidence index was -18, still in negative territory but up two points on May and five on April. Within that, the indices for the personal finance situation over the last 12 months and expectations for the next year were unchanged.
The Bank of England kept interest rates on hold on Thursday, as widely predicted. The rate-setting Monetary Policy Committee voted by a majority of six to three to leave the cost of borrowing unchanged at 4.25%. External members Swati Dhingra and Alan Taylor, and deputy governor Dave Ramsden voted for a 25 basis point cut, to 4%.
UK consumer sentiment improved for the second straight month, hitting its highest since Christmas, though still low by historic standards, according to data from the British Retail Consortium on Thursday. The BRC's consumer sentiment monitor for June showed an increase in the current economic situation index to a net balance of -28% from -36% in May - the highest reading since December 2024.
House price growth slowed dramatically in April, official data showed on Wednesday, after the changes to stamp duty thresholds came into effect. According to data from the Office for National Statistics, average UK house prices rose by 3.5% in the 12 months to April, to £265,000. However, that was down notably on March's 7.0% uplift.
UK inflation eased as expected in May but food prices rose at the fastest pace in more than a year, according to figures released on Wednesday by the Office for National Statistics. The consumer price index rose 3.4%, down from 3.5% in April and in line with expectations.
UK economic growth is set to slow this year, a leading business group warned on Wednesday, weighed down by higher costs and the fallout from Donald Trump's global trade war. Publishing its latest economic forecast, the Confederation of British Industry said it now expects GDP growth of 1.2% this year, down on the previous prediction, made in December, for a 1.6% expansion. The report cited "considerable" domestic and international headwinds for the downgrade.
The UK has formally signed a crucial trade deal with the US, just over two months after Donald Trump unveiled his swingeing global tariff regime. Prime minister Keir Starmer met the US president at the G7 conference in Alberta, Canada to sign the bulk of the pact, which was agreed in May.
UK house prices eased in June, a closely-watched survey showed on Monday, following stronger-than-expected growth in April and May. According to the latest house price index from Rightmove, prices eased by 0.4% in June, compared to a 0.6% uplift in May and April's 1.4% jump. The average asking price is now £378,240. Rightmove said the fall was unusual for June. The average June increase has been 0.4% over the last ten years.
International events
Wholesale prices in Germany declined for the sixth straight month in May, with the annual rate of deflation hitting an eight-month high, according to the Federal Statistical Office on Friday. Germany's producer price index fell by 0.2% last month, less than the 0.6% drop registered in April and slightly above the consensus forecast of -0.3%.
Construction output across the eurozone rose at its fastest rate in more than two years in April, according to data out on Thursday from Eurostat. Construction output rose by 1.7% during the month of April, rebounding strongly after a 0.2% decline in March and a 0.6% drop in February.
Norway's central bank unexpectedly cut interest rates on Thursday as it pointed to a slowdown in inflation. Norges Bank cut its policy rate to 4.25% from 4.5%, where it has stood since December 2023. Analysts were expecting rates to be left on hold. The decision to cut rates was unanimous.
The Swiss National Bank cut interest rates to zero on Thursday, as it moved to tackle disinflation. The central bank said it was "countering the lower inflationary pressure" with the 25 basis point cut. It continued: "The SNB will continue to monitor the situation closely and adjust its monetary policy if necessary, to ensure that inflation remains within the range consistent with price stability over the medium term."
Central bankers in the US trimmed their forecasts for economic growth in 2025 and 2026, while raising those for inflation. They also continued to project only two interest rate cuts over the course of 2025, followed by a single reduction in each of the subsequent years.
Americans lined up for unemployment benefits at a decelerated pace in the week ended 14 June, according to the Labor Department, in line with expectations. Initial jobless claims fell by 5,000 from the prior week's upwardly revised print to 245,000 but still marked the fifth highest reading since August 2023.
Industrial production in the United States unexpectedly fell in May, according to data out on Tuesday from the Federal Reserve. Industrial production was 0.2% lower over the month, following a 0.1% increase in April, missing the consensus estimate for a 0.1% gain.
Retail sales in the United States declined more than expected in May as consumers scaled back for the second straight month following a spending surge before new trade tariffs took effect. Seasonally adjusted retail sales across the country fell by 0.9% last month to $715.4bn following a 1% fall in April, according to the Census Bureau.
Donald Trump has insisted that his decision to quit the G7 conference early had nothing to do with a possible ceasefire in the Middle East, and that Iran should instead "give up". The US president had been in Canada for the three-day G7 conference and on Monday signed the bulk of the US trade deal with the UK.
Investor sentiment in Germany rose much more than expected this month, as interest-rate cuts and improving government finances helped bolster confidence. The ZEW survey, which analyses sentiment levels among analysts and institutional investors, jumped to 47.5 in June, up from 25.2 in May.
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