Weekly review
By Josh White
Date: Friday 04 Apr 2025
(Sharecast News) - The FTSE 100 ended the week down 603.87 points, or 6.97%, closing at 8,054.98 on Friday.
Equity view
AstraZeneca and Daiichi Sankyo's Enhertu has been approved in the European Union as a monotherapy for the treatment of adult patients with unresectable or metastatic hormone receptor (HR)-positive, HER2-low or HER2-ultralow breast cancer, the companies said on Friday. The treatment is for patients who have received at least one hormone therapy and who are not considered suitable for the same approach as the next line of treatment, they added.
The chair of BP is to step down, the oil and gas major announced on Friday, amid calls by investor groups for a shake-up of the board. Helge Lund, who has held the role since January 2019, will leave "in due course", BP said, most likely in 2026 once his successor has been appointed. The announcement comes less than a month after activist investor Follow This said it would call for a vote against Lund's reappointment at April's shareholder meeting.
Science Group announced on Friday that it has further increased its stake in Ricardo to 19.09%, intensifying pressure on the engineering consultancy's board following a series of scathing critiques of its governance and strategic decisions. The enlarged holding, equivalent to 11.88 million shares, was acquired at an average cost of 235p per share, and made Science Group Ricardo's second largest shareholder. Its move followed a sharply worded statement issued by Science Group earlier in the week, in which it expressed deep concern over Ricardo's financial performance, governance standards, and recent strategic actions.
Buy and build business SDI Group has acquired electric boilers manufacturer Collins Walker for approximately £1.85m. SDI said on Friday that Collins Walker will join its industrial and scientific products division and provide intra-group value-add manufacturing opportunities. The AIM-listed group also highlighted that the addition represented a bolt-in acquisition for portfolio company, Applied Thermal Control - merging back-office functions and increasing manufacturing capacity for Collins Walker.
Greeting cards and gifts retailer Moonpig delivered a mixed fourth-quarter update on Thursday, with full-year revenues slightly missing expectations but margins at the top end of guidance, as it unveiled plans for a new share buyback. Ahead of the close of its financial year, which ends on 30 April, the company said annual revenues would be between £350m and £353m, up from £341.1m the year before but slightly short of the current consensus forecast of £354m. However, adjusted EBITDA margins should be at the top of the 25-27% guidance range, with double-digit percentage growth expected in adjusted earnings per share.
Real estate investment group Primary Health Properties has made a £1.5bn proposal to merge with Assura, the developer and manager of GP and primary care buildings. Under the cash and shares proposal, Assura shareholders will receive 0.3848 new PHP shares and 9.08p in cash, implying a value of 46.2p per Assura share - a 23.5% premium to its closing share price on the day before the offer period commenced on 13 February. If the proposed merger goes ahead, Assura shareholders would hold 48% of the combined group's issued share capital.
Mike Ashley's acquisitive Frasers Group has further upped its stake in German fashion brand Hugo Boss. In a statement released after markets had closed on Wednesday, Frasers said it had sold a number of put options in the Frankfurt-listed business. As a result, it now owns 13.5m shares, or 19.2% of the total share capital, and up to 16.7m shares through put options, representing 23.7% of the total share capital.
Workspace Group announced the appointment of Jessica Berney as head of portfolio management and a member of its executive committee on Thursday, effective 1 July. The FTSE 250 company said Berney was joining from Schroders Capital, where she had spent the last 13 years, most recently as fund manager for UK strategic partnerships. In that role, she was responsible for driving the growth of Schroders' UK real estate business.
London-focused real estate group Great Portland Estates has signed nine fully managed leasing deals over the past three weeks worth £7.2m of annual rent. The lettings, which represent 33,500 square feet of office space across six of its buildings, were secured at 14.1% ahead of estimated rental value, generating a 112% cash flow beat to an equivalent 'ready to fit' lease. The deals have all been signed since 10 March, when GPE completed its largest-ever fully managed letting with retailer Next at 31 Alfred Place, WC1.
Building materials distributor Grafton Group has agreed to buy HSS Hire Group's Irish business in a €32m deal, it was announced on Wednesday. Under the terms of deal, Grafton will buy HSS Hire Ireland, which operates from four branches and four customer distribution centres in the Republic of Ireland. Once the deal - which remains subject to competition clearance - completes, the business will be rebranded as part of Chadwicks, Grafton's Irish distribution business.
Chemring said on Wednesday that its Roke business has won a "strategically important" UK Ministry of Defence missile defence contract valued at £251m over six years. The framework contract, known as Science & Technology Oriented Research & development in Missile defence (STORM), encompasses a broad spectrum of missile defence activities and capabilities. "Partnering with the UK Missile Defence Centre (UK MDC) Roke will lead a UK sovereign industry collaborative effort to provide security to the UK, and its allies, by countering current and future threats, including ballistic and hypersonic missiles," Chemring said.
Wizz Air said in an update on Wednesday that it carried 5.1 million passengers in March - a 6.4% increase year-on-year - as the low-cost carrier expanded capacity and reported strong early trends for the summer season. The airline increased its seat capacity by 6.7% during the month, while the load factor edged down slightly by 0.3 percentage points to 90.5%. It put the marginal decline in load factor down to the timing of Easter, which falls entirely in April this year, in contrast to March in 2024.
Spire Healthcare on Tuesday said it had bought Acorn Occupational Health for £3.3m. Acorn provides services to a wide range of corporate clients in multiple industry sectors, as well as public-sector clients including the NHS, Spire said in a statement. "Occupational health is a £1.5 - 2bn market opportunity in the UK, growing at 6% per annum. The acquisition will provide further capability to win new nationwide contracts and support organic growth through the development of a wider range of services across the group," it added.
Packaging group Mondi has finalised the acquisition of certain assets from Schumacher Packaging, expanding its footprint across Germany, Benelux and the UK. The deal, first announced in October for an enterprise value of €634m, adds more than 1bn square metres of capacity when fully operations. The assets include two mega box plants in Germany's Ebersdorf and Greven, which are said to have best-in-class production speed and operational efficiency, and offer "significant growth potential" after a recent investment programme.
Capita announced on Tuesday that it has secured a £107m contract extension with the Education Authority of Northern Ireland, under which it will continue providing IT services to over 1,100 schools across the region. The London-listed firm said the two-year extension would run from 1 April 2025 to 31 March 2027, and include an option to extend by a further two years on a one-plus-one basis.
Investment bank Peel Hunt announced on Tuesday that FY25 losses would come in lower than previously expected thanks to cost-cutting efforts made throughout H2. "During the year we took action to reduce costs, and we expect to deliver a smaller loss before tax than market expectations," it noted. Peel Hunt said FY revenues were expected to be approximately £90.0m, up from £85.8m in the prior year, despite operating in what it called "a challenging second half".
Paul Marchant has resigned as Primark chief executive with immediate effect after a woman made a complaint about his behaviour "in a social environment", parent company Associated British Foods said on Monday. Group finance director Eoin Tonge will act as Primark CEO on an interim basis. Marchant's departure follows an investigation, initiated by ABF and carried out by external lawyers. It was not clear whether the complaint was made by a staff member or third party.
Luxury car maker Aston Martin on Monday said that chairman Lawrence Stroll's Yew Tree Consortium would plough another £52.5m into the company, lifting its stake to around 33%. It added that it would also offload its minority stake in the Aston Martin Aramco Formula One racing team, realising a premium to the current book value of about £74m.
Petershill Partners has unveiled another special dividend payment after a solid increase in profits in 2024, as the private equity group painted a confident outlook for future shareholder returns. The company, which was established by Goldman Sachs back in 2007, said it would return a further $151m to shareholders through a 14 cents-per-share special dividend, reflecting the gains made on the sale of its stake in venture capital firm General Catalyst announced in January.
Engineering and consulting business Wood Group revealed on Monday that its shares would most likely be suspended from tradi ng on the London Stock Exchange after finding "material weakness and failures" in its books. Wood Group said it had uncovered failings due to "inappropriate management pressure", including instances of management overriding financial reporting to maintain previously reported positions through "unsupported dispensations and over-optimism and/or lack of evidence in respect of accounting judgements".
Economic news
The UK's construction sector faltered in March, a closely-watched survey showed on Friday, as higher costs and a drop in new orders prompted companies to cut jobs. The S&P Global construction purchasing managers' index came in at 46.4 in March, an improvement on February's multi-year low of 44.6 and marginally ahead of consensus for 46.0. But it remains well below the neutral 50.0 benchmark. A reading above 50.0 suggests growth while one below it indicates contraction.
Underlying sales at UK retailers rose by less than inflation last month, according to figures out on Friday from accountancy and business advisory firm BDO, as strong sales online were offset by weak growth in stores. Total like-for-like sales in discretionary spend categories increased 1.8% year-on-year in March, after sinking by 2.2% in March 2024, according to the latest BDO High Street Sales Tracker. However, with growth firmly behind the rate of inflation, actual sales volumes were lower than the same month last year.
The British government has not ruled out retaliatory action against the US, it confirmed on Thursday, after Donald Trump imposed sweeping tariffs worldwide, including on the UK. Trump imposed a new 10% baseline tariff on all goods imported into the US on Thursday, with further taxes announced for countries who he deems unfriendly to American interests. A 20% tax was levied on the European Union and 34% on China, among many other countries. The tariffs are on top of an already announced 25% levy on cars, car parts and steel imports.
Growth in UK private-sector activity was lower than previously thought in March but still reached its highest rate in five months, according to data out on Thursday from S&P Global. The composite purchasing managers' index for March rose to 51.5 from 50.5 in February. While this was down from the initial estimate of 52.0 released last week, this was the highest reading since October. The main reason for the downward revision was lower-than-expected growth in the services industry, with the services PMI revised to 52.5 from the flash estimate of 53.2, though up from 51 in February.
Supermarket sales slowed in March, industry research showed on Wednesday, hit by the late timing of Easter. According to the latest NielsenIQ data, total till sales growth was 2.7% in the last four weeks, down on the 4% rise seen in the previous month. In-store visits rose by 6.8%, but online sales growth slowed to 0.7%. Spend per visit across all channels also dipped, falling 3.4% to £19.10.
Megan Greene from the Bank of England said on Tuesday that additional US import tariffs could actually lessen inflationary pressures in the UK, despite concerns that an escalating trade war will push up prices. Greene, who was appointed to a three-year term on the Monetary Policy Committee in mid-2023, said at a Royal Economic Society event that while tariffs are inherently inflationary, "there is a lot of diversion" depending on how trade dynamics change and the resulting impact on exchange rates.
Output in the UK manufacturing sector shrank in March, with new orders declining at the fastest pace in 19 months and business confidence slumping to a near two-and-a-half year low, according to a survey released on Tuesday. The S&P Global manufacturing purchasing managers' index fell to a 17-month low of 44.9 from 46.9 in February as rising costs and tariff threats took their toll. Still, it was a touch above the flash estimate of 44.6. Manufacturing production declined for the fifth month in a row and at the quickest pace since October 2023.
UK house prices were steady in March and are likely to remain "a little soft" in the coming months due to stamp duty changes, according to data released on Tuesday by Nationwide. House prices were up 3.9% on the year in March, unchanged on February. On the month, prices were flat, having risen 0.4% in February. The average price of a home stood at £271,316 last month, versus £270,493 in February.
UK shop prices slipped in March as retailers held back from hiking rates, according to data out on Tuesday from the British Retail Consortium (BRC), which warned of rising cost pressures for the industry over the coming months. Prices at UK tills declined by 0.2% last month following a 0.4% increase in February, the monthly BRC-NielsenIQ Shop Price Index showed, with non-food prices falling 0.2% and food prices holding steady. However, compared with March 2024, overall shop prices fell 0.4%, following a 0.7% year-on-year decline the month before. While annual food inflation accelerated to 2.4% from 2.1%, non-food deflation eased to -1.9% from -2.1%.
The Prudential Regulation Authority is proposing to lift the deposit protection limit by £35,000, the first change to its guarantee in eight years. The regulator wants to raise the protection limit of the Financial Services Compensation Scheme (FSCS) from £85,000 to £110,000, covering day-to-day current accounts and savings that the FSCS typically protects should a depositor's bank, building society or credit union become insolvent. The PRA said the aim of the change, which takes into account inflation since the limit was last changed in 2017, is to give consumers confidence that their money if "safe".
International events
Hiring in the US accelerated unexpectedly last month as hiring in Education and Leisure picked up. According to the Department of Labor, non-farm payrolls grew by 228,000 in March. Economists had forecast an increase of 135,000. Payrolls data for the previous two months were revised down by a combined 48,000. Average hourly earnings rose at a month-on-month pace of 0.3%, whilst the rate of unemployment ticked up by a tenth of a percentage point to 4.2%, both as expected.
Oil prices continued to tumble on Friday, hit hard by Donald Trump's swingeing tariff regime and a surprise output hike from Opec. Benchmark Brent and WTI crude had both lost 6% by noon BST, falling to $65.93 and $62.66 a barrel respectively. The last time Brent touched current levels was 2021. The benchmark has now lost more than 10% in the two days since the US president imposed tariffs on a host of countries, leaving the world on the brink of an all-out trade war.
China announced a 34% tariff on all US imports on Friday, matching new duties imposed by US president Donald Trump earlier this week and sharply escalating trade tensions between the world's two largest economies. The new measures, set to take effect on 10 April according to the Financial Times, signalled a deepening trade conflict that is rattling global financial markets. Beijing described Washington's latest tariff hike as an act of unilateral bullying that violated international trade norms and undermined China's legitimate interests.
The International Monetary Fund has warned that Donald Trump's sweeping tariff regime poses a "significant" risk to the global outlook. In a brief statement, IMF managing director Kristalina Georgieva said the Washington-based organisation was still assessing the full macroeconomic implications of the taxes, which Trump unveiled on Wednesday. But she warned: "They clearly represent a significant risk to the global outlook at a time of sluggish growth.
German factory orders unexpectedly stalled in February, official research showed on Friday. According to Destatis, the Federal Statistical Office, new orders in manufacturing showed no growth in February compared to the previous month. That was an improvement on January's 5.5% slump, which had been revised upwards from the provisional reading of -7%. But it remained well below forecasts for growth of 3.5%. Once large-scale orders were stripped out, orders softened by 0.2%.
Services sector activity in the US slowed last month, resulting in a sharp decline in hiring, the results of a closely followed survey revealed. The Institute for Supply Management's services sector Purchasing Managers' Index retreated from a reading of 53.5 for February to 50.8 in March. Economists had forecast a reading of 53.0. A sub-index for output levels rose by 1.5 points from the month before to reach 55.9.
Americans lined up for unemployment benefits at a slower pace in the week ended 29 March, according to the Labor Department. Initial jobless claims fell by 6,000 to 219,000 last week, down from the previous week's upwardly revised print of 225,000 and beating expectations for a print of 225,000, while continuing claims rose by 56,000 to 1.90m for the highest reading seen since November 2021. The four-week moving average, which aims to smooth out week-to-week volatility, decreased by 1,250 week-on-week to 223,000.
The eurozone economy expanded modestly in March, a closely-watched survey showed on Thursday, boosted by an uptick in the services sector. The latest HCOB eurozone services business activity index came in at 51.0, up from February's 50.6 and a two-month high. A reading above the neutral 50.0 benchmark indicates growth, while one below it suggests contraction. Business volumes were down marginally, with exports in particular weak. But activity levels rose at a quicker pace than in February, with backlogs cleared at a faster rate.
Producer prices across the eurozone nudged higher in February, official data released on Thursday showed. According to Eurostat, the European Union's statistical office, industrial producer prices increased by 0.2% month-on-month, or by 3% when compared to February 2024. The increase was marginally higher than forecast, with most analysts expecting an 0.1% uplift. In January, prices rose by a downwardly revised 0.7%.
America moved ahead with trade tariffs that some described as a "worst case scenario". "Admittedly, a lot is still unclear, and fully quantifying the impact of such a tariff tsunami, which actually brings back tariff levels of the 1930s, is almost impossible," economists at ING said. Investors were initially cheered the night before, when news broke of a minimum across the board 10.0% tariff. But that optimism quickly evaporated as it was later announced that the levy on the EU would be 20.0% and at least 54% in the case of China. The UK actually got off lightly with just a 10.0% tariff placed on its exports and perhaps even gained an advantage over exporters from EU countries who now faced larger levies.
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