Weekly review
By Josh White
Date: Friday 09 May 2025
(Sharecast News) - The FTSE 100 ended the bank holiday-truncated week up 58 points, or 0.68%, closing at 8,554.80 on Friday.
Equity view
Pharma giant AstraZeneca has reported positive results from a Phase III trial of its treatment for non-muscle-invasive bladder cancer (NMIBC). Over a one-year period, Imfinzi, otherwise known as durvalumab, demonstrated "statistically significant and clinically meaningful improvement" in the disease-free survival of patients suffering from high-risk NMIBC.
Builders' merchant Travis Perkins said on Friday that it has appointed Gavin Slark - the current chief executive of construction group SIG - as its new CEO with effect no later than 1 January 2026. Travis Perkins said Slark is a highly experienced public company CEO, with "significant" experience of the building materials and merchanting industry. He has been CEO of SIG since 2023, prior to which he was CEO of Grafton Group between 2011 and the end of 2022.
Property company LondonMetric revealed on Friday that it has reached agreement on the terms of a recommended cash and share offer for Urban Logistics REIT. LondonMetric said the deal was priced at 150.3p per Urban Logistics share, valuing the REIT at a total of £698.9m. Urban Logistics shareholders will receive 0.5612 new LondonMetric shares, as well as 42.8p in cash for each share they own, and will hold a roughly 11% stake in the combined group. It also noted that Urban Logistics shareholders would receive a final interim dividend of 4.35p per share.
Rightmove said in an update on Friday that it remained confident in its full-year outlook, reiterating guidance for 8% to 10% revenue growth in 2025 and a 70% underlying operating profit margin. The FTSE 100 property portal operator reported continued progress in average revenue per advertiser in its core estate agency and new homes businesses, driven by product innovation and the ongoing migration of agents to its top-tier 'Optimiser Edge' package. Membership levels had risen since the year-end, with expectations for a 1% increase in member numbers this year remaining unchanged.
Shares in BP sparked on Friday, after it was reported that a range of possible suitors were running a slide rule over the oil and gas major. According to the Financial Times, Shell, Chevron, ExxonMobil, TotalEnergies and Abu Dhabi's Adnoc have run the numbers on a potential acquisition. Oil trader Vitol, meanwhile, is also thought to be potentially interested in parts of the business.
UK fashion retailer Next lifted annual profit guidance after reporting forecast-busting first-quarter sales, citing warmer weather which boosted purchases of summer clothing, but held annual estimates of flat revenues. Group sales in the three months to April 26 rose 11.4%, or £55m, compared with forecasts of a 6.5% increase. Pre-tax profit guidance was lifted by £14m to £1.08bn. "It is likely that some of these sales have been pulled forward from Q2. So, despite the strength of Q1, we are not increasing our sales guidance for Q2, or the rest of the year," the company said on Thursday.
Infrastructure group Balfour Beatty lifted its cash forecast on Thursday as it said trading since 1 January has been in line with expectations and it continues to expect an increase in profit from operations from its earnings-based businesses this year. In an update ahead of its annual meeting, the company said the positive momentum in its key markets has continued since the 2024 full-year results in March and that it remains committed to "a selective bidding approach in the continued pursuit of a high-quality and low-risk forward order book".
Morgan Advanced Materials said on Thursday that first-quarter sales were lower as expected, but that it does not anticipate a material impact from tariffs. In an update ahead of its annual meeting, the company said sales in the first three months to 31 March fell 3.5% on an organic constant currency basis compared to the same period last year, as expected. The maker of advanced carbon and ceramic materials said it continues to monitor and adapt its business to the recent introduction of new trade tariffs.
IMI reaffirmed its full-year guidance on Thursday after reporting a 3% year-on-year decline in organic revenue for the first quarter of 2025, as solid order growth in process automation offset softness elsewhere, and the group placed its transport business under strategic review. The FTSE 100 engineering company said adjusted revenue fell 5% during the period, with the impact of adverse foreign exchange movements and the disposal of its IMF business in April last year weighing on performance. Group margins, however, improved year-on-year.
InterContinental Hotels Group said it was on track to meet full-year consensus profit estimates, despite softer economic indicators and the impact of US tariffs and immigration policies. The Holiday Inn and Kimpton owner reported a 3.3% jump in global first quarter revenue per available room (RevPAR), a key industry metric, up from 2.6% last year. Analysts expect IHG to report adjusted core earnings of £1.32bn for the full year.
Pub landlord JD Wetherspoon revealed on Wednesday that both total sales and like-for-like sales had grown in Q1 as recent trading was helped by favourable weather. Wetherspoons said total sales were up 5.0% in Q1, while like-for-like sales increased by 5.6% in the 13 weeks ended 27 April. Year-to-date, total sales improved 4.2% and LFL sales were up 5.1%. Total sales were "slightly less" than like-for-like sales due to a small number of pub disposals during the period, according to the FTSE 250-listed group.
BAE Systems said in an update on Wednesday that trading so far this year had been in line with expectations, reaffirming its full-year 2025 guidance as it highlighted strong operational performance and a robust order backlog. The FTSE 100 defence specialist said in a statement ahead of its annual general meeting that it was maintaining its outlook for revenue growth of 7% to 9% and an 8% to 10% rise in both underlying EBIT and underlying earnings per share, based on 2024 comparatives. Free cash flow was expected to exceed £1.1bn.
Vodafone's finance chief announced his decision to step down to join another company. Luke Mucic was to leave the telecoms operator no later than "early 2026" to join German real estate firm Vonovia. "I would like to thank Luka for his commitment to Vodafone during this first stage of our transformation," Vodafone boss, Margherita Della Valle said.
Telecommunications testing company Spirent Communications said on Wednesday that its performance was "tracking to plan" as it issued a trading update for the three months ended 31 March. Spirent Communications said it has continued to "manage global market challenges and engage closely" with its customers, noting that Q1 orders and revenue were both in line with its plan and the same period a year earlier.
Refractory products supplier RHI Magnesita said both sales and margins had fallen in Q1 as downside risks to its FY25 trading outlook increased, driven by a weak outlook for H1 performance and rising global trade tensions, all of which could negatively affect end markets. RHI Magnesita said Q1 trading conditions "became more challenging", reflecting lower sales volumes, a continued decline in project business in the glass and non-ferrous metals sectors worldwide and lower pricing for cement and steel markets in India and the Middle East.
Intertek said it had agreed to acquire Brazil-based TESIS, a provider of building products testing and assurance services, for an undisclosed sum. The company on Tuesday said the deal represented an "attractive opportunity" to expand its building & construction quality assurance business into Brazil's construction industry, which is valued at $120bn and is forecast to grow at 4.8% per annum to 2033.
Associated British Foods on Tuesday confirmed it was in talks on a potential sale of its Allied Bakeries unit with Hovis bread owner Endless. In a short statement, London-listed ABF said it was in discussions "regarding a potential transaction" involving Allied, maker of Kingsmill bread. "Allied Bakeries continues to face a very challenging market. We are evaluating strategic options against this backdrop and we remain committed to increasing long-term shareholder value. A further announcement will be made as and when appropriate," ABF said.
Chemicals business Synthomer has agreed to divest William Blythe, its inorganic chemistry business, to its management team and H2 Equity Partners for £30.0m. Synthomer said on Tuesday that the sale of William Blythe, which was conditional on certain customary closing conditions, was expected to complete at the end of May, with net proceeds of the disposal to be used to reduce net debt.
Online food delivery company Deliveroo said on Tuesday that it has reached an agreement with US rival DoorDash on the terms of a recommended final cash offer, with its American rival set to pay £2.9bn for the consolidation. Deliveroo said the deal, which implies an enterprise value of £2.4bn and an enterprise value/underlying earnings multiple of approximately 13.4x, will see DoorDash pay 180.0p per Deliveroo share, a 44% increase on its share price from when takeover talks were made public in April.
Anglo American confirmed in an update on Tuesday that it does not expect the recent stoppage at its Moranbah North mine to trigger a material adverse change clause in its agreement to sell its Australian steelmaking coal assets to Peabody Energy. The FTSE 100 mining giant said it was committed to completing the transaction, adding that it is working with Peabody to address outstanding conditions. Operations at Moranbah North were halted following a contained ignition event in the goaf on 31 March, prompting the safe withdrawal of all personnel.
Economic news
The governor of the Bank of England warned on Friday that the current challenging and unpredictable global economic environment was set to continue. In a speech to Iceland's Reykjavik Economic Conference, Andrew Bailey acknowledged that forecasting had become more difficult in recent years. In particular, he said the central bank's models and analytical frameworks had been challenged by the "sheer scale and unpredictability" of the global shocks seen over the last five years, and warned: "We need no reminder that the global economic environment is likely to continue to be challenging - and less predictable - than it was in the past."
Warmer weather and the late timing of Easter helped boost retail footfall across the UK last month, industry data showed on Friday. According to the latest BRC-Sensormatic footfall monitor, total UK footfall across both March and April edged up 0.2% year-on-year. Within that, the high street showed a modest 0.2% uptick, while footfall at shopping centres decreased by 0.7%. But retail parks fared better, with footfall sparking 2.7%.
The Bank of England lowered interest rates to 4.25% on Thursday, as widely expected, its second cut so far this year. In a surprisingly tight vote, the Monetary Policy Committee agreed by a majority of 5 to 4 to reduce the cost of borrowing by a quarter point. Swati Dhingra and Alan Taylor argued for a larger cut, of 50 basis points, while chief economist Huw Pill and external member Catherine Mann wanted to leave rates at 4.5%. It is the fourth cut in the current cycle, after rates were hiked in response to soaring inflation.
The US has signed a "full and comprehensive" trade deal with the UK, Donald Trump insisted on Thursday, just weeks after unveiling his sweeping global tariff regime. In a post on Truth Social, Trump said the agreement was a "full and comprehensive one that will cement the relationship between the United States and the United Kingdom for many years to come". He continued: "Because of our long time history and allegiance together, it is a great honour to have the United Kingdom as our first announcement." He provided no further details.
UK house prices rose in April for the first time since January, according to data released by Halifax on Thursday. House prices ticked up 0.3% on the month following a 0.5% decline in March and a 0.2% drop in February. On the year, house prices rose 3.2% in April following 2.9% and 2.8% growth in March and February, respectively. The average price of a property stood at £297,781 last month, compared to £296,899 in March.
The UK housing market came under pressure in April, an industry survey showed on Thursday, hit by changes to the stamp duty regime and mounting economic uncertainty. According to the latest residential market survey from the Royal Institution of Chartered Surveyors, both agreed sales and buyer enquiries remained in negative territory last month. The new buyer enquiries indicator posted a net balance of -33, while agreed sales slid to -31 from -17, the weakest figure since August 2023. On the supply side, new instructions to sell were flat, with a net balance of 6.
The UK's construction sector continued to struggle in April, a closely-watched survey showed on Wednesday, although the decline was not as sharp as feared. The S&P Global UK construction PMI was 46.6 last month, down on March's 46.4 but ahead of analyst expectations for a further fall, to 45.7. A reading below 50.0 indicates contraction, while one above it suggests growth.
The UK services sector recorded its first decline in business activity in 17 months in April, revised estimates from an S&P Global purchasing managers' index showed on Tuesday, as sentiment was hit by the introduction of trade tariffs in the US. The services PMI was revised up marginally to 49.0 from the 'flash' reading of 48.9 released two weeks ago, but still signalled a contraction in activity for April, with a figure below the neutral mark of 50.0. This was the sector's first contraction since October 2023 and the steepest drop since January 2023.
International events
US President Donald Trump suggested on Friday that US tariffs on Chinese goods should be cut from 145% to 80%. Ahead of talks with China in Geneva, Switzerland this weekend, Trump wrote on his Truth Social site: "80% Tariff on China seems right! Up to Scott B." He also said that China should "open up its market" to the USA. "Would be so good for them!!!," he wrote, adding: "closed markets don't work anymore!!!"
Shares in Expedia fell sharply on Friday, after first-quarter numbers at the online booking platform missed Wall Street estimates. The Seattle-based travel firm - which owns Hotels.com, Vrbo and Trivago, among others - cited softer demand in the US as it posted a 3% uplift in revenues to $2.99bn. Gross bookings increased 4% to $31.45bn. Analysts had been looking for revenues closer to $3.01bn.
Japanese electronics giant Panasonic on Friday announced plans to shed 10,000 jobs worldwide as part of a "personnel optimisation" plan to improve efficiency and streamline operations. The company, which employs around 230,000 people globally, said it was planning to cut 5,000 roles in Japan and a further 5,000 overseas over the next two financial years. The changes would happen as part of a consolidation of sales and indirect operations, business terminations, and site consolidation/closures.
Americans lined up for unemployment benefits at a slower pace in the week ended 3 May, according to the Labor Department. Initial jobless claims fell by 13,000 to 228,000, a sharp contrast when compared to the two-month high of 241,000 from the previous week, while continuing claims fell by 29,000 to 1.87m, easing from the over three-year high seen during April. The four-week moving average, which aims to strip out week-to-week volatility, was 227,000, an increase of 1,000 from the previous week's unrevised average of 226,000.
Measured US labour productivity tumbled at the start of 2025, as a surge in imports led to a drop in aggregate demand. According to the Department of Labor, in seasonally adjusted terms, non-farm labour productivity shrank at a quarterly annualised pace of 0.8% during the first quarter (consensus: -0.4%). That was the result of 0.6% growth in the number of hours worked even as output dropped by 0.3% from the previous quarter.
Norway's central bank left interest rates on hold on Thursday at a 17-year high of 4.5%, as expected. Deputy Governor Paal Longva said: "The Committee has decided to keep the policy rate unchanged. Inflation is still above target. If the policy rate is lowered prematurely, prices may continue to rise rapidly." On the other hand, Norges Bank said, an overly tight monetary policy could restrict the economy more than needed to bring inflation down to target.
German exports rose by 1.1% in March compared with the previous month, according to data published by the federal statistics office on Thursday. After calendar and seasonal adjustment, Germany exported goods worth €133.2bn and imported goods worth €112.1bn. The trade surplus of €21.1bn in March compared with €18bn in February and €20.5bn a year ago.
Eurozone retail sales unexpectedly fell for the first time in five months in March, according to data released by Eurostat on Wednesday. Retail trade volumes were 0.1% lower over the course of the month, following a 0.2% increase in February and no growth over November to January. This was the first drop since a 0.3% decline in October and missed the consensus forecast for no growth.
The Eurozone's hard-pressed construction sector showed modest signs of improvement in April, a closely-watched survey showed on Wednesday. The HCOB Eurozone construction PMI total activity index remained in negative territory last month, at 46.0. A reading below the neutral 50.0 suggests contraction, while one above it indicates growth.
Eurozone business activity slowed last month, with a stuttering services sector offsetting a surprise jump in manufacturing, according to a survey published on Tuesday. The HCOB eurozone composite PMI output index fell to 50.4 for April, down from 50.9 in March as new orders fell on the back of weak demand. In the services sector, the services PMI hit 50.1 a five month low and down from March's 51.0. Any reading over 50 indicates expansion.
German shares fell sharply after Friedrich Merz surprisingly failed to secure enough votes to become chancellor after the first round of parliamentary voting. The result shocked markets across Europe, as Merz had been widely expected to win the vote and succeed Olaf Sholz six months to the day his government collapsed. His CDU/CSU/SPD coalition has a nominal 328 votes in the Bundestag - but he received only 310 and fell six short of the majority required to confirm him as the leader of Europe's biggest economy.
Economic activity growth across China's services sector slowed to its lowest level in seven months in April, as Washington DC's trade war impacted levels of new business. The closely followed Caixin services purchasing managers' index fell to 50.7 last month, down from 51.9 in March and well below the 51.7 reading expected by a consensus of analysts. This was the 28 straight month of a reading above 50 - which separates growth from contraction - but the lowest print since September.
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