Weekly review
By Josh White
Date: Friday 02 May 2025
(Sharecast News) - The FTSE 100 ended the week up 181.1 points, or 2.15%, closing at 8,596.35 on Friday.
Equity view
Asia-focused bank Standard Chartered reported better-than-expected first-quarter profit, driven by strong growth in its wealth management but also warned of the impact of US President Donald Trump's trade war. Pre-tax profit for the three months to March came in at $2.10bn, up from $1.91bn and the $1.905bn consensus average.
Shell posted better-than-expected first quarter adjusted earnings and launched a fresh $3.5bn share buyback programme. The oil major's adjusted profit reached $5.58bn (consensus: $4.96bn) on $69.23bn of revenues, for earnings per share of 92 US cents. Cash flow from operations came in at $9.28bn (consensus: $9.6bn).
Industrial flow components manufacturer Rotork said on Friday that Q1 revenues had slipped despite reporting increased order intake during the period. Rotork said revenues were "modestly lower year-on-year" in the quarter, reflecting order book phasing and a strong comparator, even as order intake was said to be up mid-single digits year-on-year.
NatWest first quarter profit beat expectations with a 36% jump Friday, driven by higher margins on deposits and increased mortgage lending, in its first results since the UK government ceased being a major shareholder. Operating profit before tax for the three months to March 31 came in at £1.8bn, up from £1.3bn a year earlier and consensus estimates of £1.6bn.
Chemicals business Synthomer said on Thursday that underlying earnings and margins had both improved year-on-year during Q1 despite "modestly lower" volumes, driven by self-help initiatives. Synthomer said its Adhesive Solutions and Health & Protection and Performance Materials divisions both delivered increased gross margins and underlying earnings, principally through a further improvement in product and geographical mix and self-help cost efficiency programmes.
Student accommodation business Unite has entered into a joint venture framework agreement with Manchester Metropolitan University for the development of 2,300 new student beds at the University's Cambridge Halls site in Manchester city centre for delivery in 2029 and 2030. Unite said on Thursday that Manchester Metropolitan University has committed to closing the existing accommodation on the site, with work due to commence on-site later in 2025 and construction expected to commence in 2026.
National Grid has announced that chief executive John Pettigrew is to leave the role after nearly a decade as head of the utilities company. The group said the board and Pettigrew both believe it is the "right time to transition leadership" following a comprehensive succession planning process. Zoë Yujnovich, currently the head of integrated gas and upstream operations at Shell, has been appointed as Pettigrew's replacement.
Information technology services business Computacenter said on Thursday that it had delivered a "good performance" in Q1, which was ahead of the prior year and in line with internal expectations. Computacenter said group technology sourcing revenue increased "strongly" against a relatively soft comparison, largely driven by North America, while group services revenue was also ahead of FY24, reflecting "good growth" in professional services and a "slight decline" in managed services revenue.
GSK shrugged off the potential impact of tariffs on Wednesday and reiterated its full-year outlook, following a strong start to the year. The blue chip drugs giant said total sales rose 2% in the first quarter, or by 4% on a constant currency basis, to £7.52bn. Strong demand for speciality medicines, its largest unit, drove the performance, with sales up 17% at £2.9bn. It also helped to mitigate a 6% decline in vaccines, to £2.1bn.
Barclays Bank lifted bad loan provisions in response to macroeconomic uncertainty in the US as it also reported a better-than-expected 19% rise in pre-tax profit to £2.7bn. Credit impairment charges increased to £643m from £513m a year ago, primarily driven by a £74m adjustment for "elevated US macroeconomic uncertainty" and the impact of the Tesco Bank acquisition.
Luxury carmaker Aston Martin is limiting exports to the US in response to President Donald Trump's tariffs and also managed to post narrower-than-expected first-quarter losses. Trump slapped a 25% levy on all auto and parts imports, although he pledged some relief on Tuesday amid fears his measure could hurt US factories.
Taylor Wimpey said on Wednesday its spring selling season was progressing well, leaving it on track to meet full-year forecasts. Updating on trading, the blue chip house builder said it was seeing good levels of customer interest, despite recent macroeconomic volatility and ongoing affordability issues. Net private sales for the year to 27 April were 0.77 per outlet per week, compared to 0.74 a year previously. The cancellation rate rose to 16% from 13%, however.
BP reported lower-than-expected quarterly income on Tuesday, as the energy major continued to overhaul its long-term strategy amid tumbling oil prices. The blue chip said underlying replacement cost profits - its core measure of income - were $1.38bn in the first quarter of 2025. That was an improvement on the previous three months' $1.17bn, but down sharply on the $2.72bn posted in the first quarter of 2024. It was also below analyst forecasts for $1.53bn.
First-half profits at Associated British Foods fell by a tenth with sales slightly behind last year, as growth in retail and food ingredients was offset by a "frustrating" performance in the sugar division. In sugar, persistently low European sugar prices and struggles at its loss-making UK bioethanol business, Vivergo, have weighed on profits so far this year, while challenges in Tanzania (which saw high levels of sugar imports in 2024) and South Africa (impacted by drought) are hit operations.
Cybersecurity firm NCC Group said late on Monday that it is exploring a number of options for its Escoe business, including a potential sale. In a statement responding to press speculation, the company said the process is at a very early stage. "No proposals have as yet been received, and no decision has been made on whether to proceed with any transaction," it said. "The company will keep shareholders updated as and when appropriate."
Troubled transport operator Mobico said chief executive Ignacio Garat would be stepping down, days after the company issued a profit alert that sent its shares plunging by more than 40%. Guarat will step down on Wednesday with Phil White, chair designate, taking on the role of interim-executive chair from May 1. Mobico also reported annual adjusted operating profit of £187.7m - just above the lower end of the £185m - £205m range of analyst expectations.
Fintech group Plus500 has said it expects 2025 results to be ahead of current market forecasts after an "excellent" start to the year, driven by recent macroeconomic and financial market conditions. The company, which operates proprietary tech-based trading platforms, reported revenues of $205.8m over the first three months of the year, up 13% on the fourth quarter but 5% behind last year.
Great Portland Estates said it retained 91% of its fully managed customers at break or expiry for the year to March, driven by strong demand for office space. The transactions secured an average rental uplift of more than 6% per annum and in total will deliver around £6.5 million of annual rent, 10% ahead of estimated rental value, the company said on Monday.
Marlowe has raised its share buyback programme after delivering a "strong" performance over the financial year ended 31 March, with profits expected to be ahead of market forecasts. The company, which provides services that ensure regulatory compliance like installing fire detection systems, said continuing operations delivered £305m in revenues and £32.5m in adjusted EBITDA over the year - more or less in line with market expectations.
Deliveroo said on Monday that it was suspending the £100m share buyback programme announced last month after receiving a 180p per share takeover proposal from US rival DoorDash. In a brief statement, the company said that any recommencement of the buyback programme will be announced to the market. Deliveroo announced late on Friday that it had received an indicative £2.7m takeover proposal from DoorDash on 5 April. It said it was minded to recommend the proposal should a firm offer be made.
Economic news
UK lending to individuals picked up in March, but some economists saw signs of caution on the part of consumers in the latest data, even before the recent announcement of US trade tariffs. In seasonally adjusted terms, total net lending to individuals grew by 0.7% month-on-month in March, or by £13.8bn, to reach £1,899.7bn, the Bank of England said. Within that, consumer credit grew by £0.9bn or 0.4% on the month (consensus: £1.2bn), following a £1.3bn rise in February, hitting £235.9bn in the process.
Supermarket sales jumped in April, industry data showed on Wednesday, as the late Easter and sunny weather supercharged demand. According to data from NielsenIQ (NIQ), total till sales at UK supermarkets rose 9.6% in the four weeks to 19 April, up from the 2.7% growth seen in March. Easter Sunday fell unusually late this year, on 20 April. The strongest-performing category was confectionery, snacks and soft drinks, which jumped 19.3%.
House prices fell by more-than-expected in April, a closely-watched industry survey showed on Wednesday, following changes to the stamp duty regime. According to Nationwide's latest house price index, prices fell 0.6% month-on-month. Analysts had been expecting no change, in line with March's 0.0% print. On an annual basis, growth slowed to 3.4% from 3.9% in March. Consensus had been for a 4.1% rise.
Overall shop prices in the UK fell in April compared with last year, though the rate of the decline eased as food inflation picked up on the back of rising labour costs. Shop prices were 0.1% lower than last April, following a 0.4% decline in March, according to the British Retail Consortium's shop price index released on Tuesday. Non-food prices were down 1.4% over last year, as deflation slowed from -1.9% in March. Meanwhile, food prices were 2.6% higher than last year, after growing by 2.4% in March, reaching its highest rate in 11 months.
Fewer UK retailers reported falling sales in April, according to a survey from the Confederation of British Industries, though top-line pressure is expected to ramp up in the coming month. Retail sales volumes fell at a modest rate in the year to April, the Distributive Trades Survey on Monday showed, as the CBI's overall gauge improved to -8% from -41% in the year to March. This was still the seventh month in a row that retailers reported falling sales, and the indicator for May is expected to sink to -33%.
The EY Item Club downgraded its UK economic growth expectations for this year and the next on Monday, citing trade disruption and "persistent" inflation. The leading forecaster now expects GDP growth of 0.8% this year, down from a forecast of 1% growth in February, while its 2026 growth forecast was downgraded to 0.9% from 1.6%.
International events
Factory sector activity in the US slowed a tad further in April, but not by as much as anticipated by some, the results of a closely followed survey showed. The Institute for Supply Management's manufacturing sector Purchasing Managers' Index dipped from a reading of 49.0 for March to 48.7 in April (consensus: 48.0). A key sub-index tracking new orders improved, from 45.2 to 47.2, but remained beneath the 50 point no change threshold.
Americans lined up for unemployment benefits at an accelerated pace in the week ended 26 April, according to the Department of Labor. Initial jobless claims rose by 18,000 on a seasonally adjusted basis to 241,000, the highest since February and much higher than expectations for a reading of 224,000. On a non-seasonally adjusted basis, initial claims increased by 12,901 to 223,614, with notable increases in New York and Massachusetts.
March's personal consumption expenditures price index pointed to a softening in inflationary pressures across the US, according to the Bureau of Economic Analysis, potentially giving the Federal Reserve room to move when it comes to monetary policy. The PCE price index grew 2.3% year-on-year in March, down from February's revised 2.7% print. On a monthly basis, the index was flat. Core PCE, which strips out volatile food and energy prices, rose 2.6% year-on-year, below February's 2.8% clip, and was unchanged on a monthly basis.
America's economy contracted at an annualised rate of 0.3% in the three months ended 31 March, according to a preliminary reading from the Bureau of Economic Analysis, the first decline since Q122 and a sharp reversal from the 2.4% growth rate seen in Q4. The Q1 contraction, which puts the US on the brink of a technical recession, was principally driven by a 41.3% surge in imports as both businesses and consumers looked to stockpile goods in order to get ahead of 2 April's "Liberation Day" tariff announcements by Donald Trump, who was wrapping up his first 100 days in office on Wednesday . Economists had been expecting to see a 0.3% increase in GDP during Q1.
China's manufacturing sector faltered last month, official data showed on Thursday, as Donald Trump's trade war started to hit home. According to the National Bureau of Statistics, the manufacturing purchasing managers' index fell into contraction, coming in at 49.0 from 50.5 a month previously. A reading below the neutral 50 indicates contraction, while one above it suggests growth.
Economic activity across the eurozone increased by more than expected in the first quarter of 2025, according to figures out on Wednesday from Eurostat, though a potential slowdown is looming as the impact of US trade tariffs are felt over the coming months. Euro area gross domestic product expanded by 0.4% over the first three months of the year, picking up from the 0.2% growth rate seen in the fourth quarter. This was comfortably ahead of the consensus forecast for another 0.2% expansion, and matched the highest quarterly growth rate seen for the region since the third quarter of 2023.
Eurozone economic sentiment deteriorated in April, according to a survey released on Tuesday by the European Commission. The EC's economic sentiment indicator fell by 1.4 points in both the European Union and the eurozone, to 94.4 and 93.6, respectively. Economists were expecting a reading of 94.5 for the eurozone. Meanwhile, the employment expectations indicator declined 0.7 points for the EU to 96.9 and was unchanged for the euro area at 96.5.
Consumer sentiment in Germany has risen to its highest level in six months, according to a survey published jointly by GfK and the Nuremberg Institute for Market Decisions (NIM) on Tuesday, as public confidence remained unfazed by ongoing trade tensions. The forward-looking Consumer Climate Indicator rose 3.7 points to -20.6 for May, surprising economists who had pencilled in a deterioration to -26. This was the highest reading since November and the second straight monthly improvement in the indicator.
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