Level 2

Weekly review

By Josh White

Date: Friday 08 Aug 2025

(Sharecast News) - The FTSE 100 ended the week up 27.15 points, or 0.3%, closing at 9,095.73 on Friday.
Equity view

Professional services firm Capita said on Friday that its Contact Centre subdivision has secured a three-year extension to its partnership with ScottishPower for an undisclosed sum. Capita said the contract extension, which builds on a relationship that began in 2022, will see it continue to deliver five key work packages across prepayment, homemover, SME, smart meter, and direct debit, each "critical" to ScottishPower's service delivery.

Drugmaker GSK said on Friday that it had reached a settlement, alongside CureVac, to resolve long-running patent litigation with BioNTech and Pfizer over mRNA-based COVID-19 vaccines. The agreement, which includes a substantial upfront payment of $370m and future royalties, marks a significant step in monetising GSK's intellectual property portfolio.

Georgian bank TBC reported a 23% increase in second quarter operating income to 835m Georgian lari (£235m), while net profit rose 5% to GEL 346m, driven by strong net interest income and an increased loan book. Net interest income increased by 27% year-on-year, supported by loan book growth of 16% and a net interest margin of 7.1%, up by 0.7 percentage points year-on-year and 0.4 pp quarter-on-quarter.

Investment firm the Renewables Infrastructure Group reaffirmed its FY dividend guidance on Friday as it navigated a challenging operating environment in H1, marked by weak wind resources across key European markets. TRIG said power generation came in 10% below budget, driven by poor wind conditions in the UK, France, and Germany, and said this, alongside lower power price forecasts, contributed to a 7.7p decline in net asset value per share to 108.2p.

InterContinental Hotels posted a solid set of H1 results on Thursday, underscored by strong trading momentum, record hotel openings, and continued investment in its global estate. Operating profits from reportable segments rose 13% to $604m, while total revenue climbed 8% to $2.52bn. Fee business revenue increased 7% to $908m, helping push fee margins up 3.9 percentage points to 64.7%. Adjusted earnings per share jumped 19% to USD 242.5 cents.

Ad agency WPP reported a slump in half-year earnings as clients spent less and the use of artificial intelligence hit the bottom line. Operating profit fell 48% to £221m on the back of a 7.8% decline in revenue to £6.6bn. "It has been a challenging first half given pressures on client spending and a slower new business environment," said chief executive Mark Read.

Deliveroo said on Thursday that full-year core profit was set to be in the upper half of its guided range following a strong first-half performance. In the six months to 30 June, orders rose 8% to £147m, with revenue also 8% higher, at £1.05bn. Gross transaction value picked up 9% to £3.8bn.

Morgan Advanced Materials warned on Thursday that full-year adjusted operating profit was set to be around the bottom of the consensus range due to weak market conditions, mix effects and foreign exchange headwinds. In results for the six months to 30 June, the company said adjusted operating profit declined to £58m from £71.3m in the same period a year earlier, with revenue down 8.7% to £522.6m.

Insurance firm Legal & General said on Tuesday that it had an "excellent" six months ended 30 June, with both pre-tax and core operating profits growing, underpinned by strategic progress and a reshaped portfolio. Core operating profits rose 6% to £859m, while IFRS pre-tax profits surged 28% to £406m, buoyed by a strong performance in its institutional retirement segment, which saw double-digit profit growth and over £5bn in new business written.

Logistics-focused landlord Tritax Big Box REIT said on Wednesday that it had delivered a solid H1 performance, with rental growth, development momentum, and a strategic pivot into data centres helping offset a dip in reported earnings. Tritax said net rental income rose 17.3% to £149.2m, lifting operating profits 16.4% to £144.1m, and adjusted earnings per share 6.4% to 4.63p. It also said its portfolio value climbed from ££6.55bn to £6.82bn, supported by stable yields and development gains.

Coca-Cola HBC said on Wednesday that its full-year performance was set to be at the top end of guidance as it hailed "strong" first-half results, with particular strength in emerging markets. In the six months to 27 June, operating profit (EBIT) rose 13.9% to €644.6m, with net profit 23.3% higher at €470.6m. Net sales revenue grew 8.6% to €5.6bn.

Lancashire Holdings lifted its guidance for full-year return on equity on Wednesday as it hailed a "resilient" first half. In the six months to 30 June, pre-tax profit fell to $118.6m from $213.6m in the same period a year earlier, coming in ahead of a Bloomberg estimate of $113.3. Profit after tax declined to $109.2m from $200.8m.

The takeover battle for Spectris took another twist on Tuesday after the specialist instrument maker accepted an increased offer from KKR valuing it at £4.2bn, trumping rival private equity firm Advent. KKR is now offering £41.75 per Spectris Share, made up of £41.47 in cash and an interim dividend of 28p each.

Alcoholic beverage giant Diageo posted a mixed set of FY results on Tuesday, as the group navigated FX headwinds and restructuring costs while maintaining organic growth. Organic net sales rose 1.7%, supported by balanced volume and pricing gains, while operating profits before exceptional items dipped just 0.7% to $5.7bn, reflecting continued investment in overheads, while adjusted margins narrowed 68 basis points to 28.2%.

Spirent Communications reported a rise in first-half revenue and profit on Tuesday as it hailed a "particularly good" performance in the second quarter of the year and said that trading had been resilient in a challenging market. In the six months to 30 June, adjusted pre-tax profit increased 31% to £8.9m. Revenue pushed up 5% to £208.1m, with Lifecycle Service Assurance down 2% and Networks & Security up 11%.

Mining firm Fresnillo posted a solid set of interim results on Tuesday, with higher precious metal prices and disciplined cost control driving a sharp improvement in profitability. Fresnillo said robust gold output and operational efficiencies had helped offset weaker silver volumes and a non-cash hit of $133m after tax from the termination of its Silverstream contract.

Online marketplace operator Auction Technology Group said on Monday that it has acquired Chairish, a US-based marketplace for vintage furniture and art. The $85m acquisition, which was expected to broaden ATG's reach in the Arts & Antiques segment, adds 1.3m curated items and 12,000 sellers to its network, significantly expanding its inventory and buyer traffic.

ConvaTec's chief executive Karim Bitar is to take a medical leave of absence from the company, the medical products and technologies group announced on Monday. Chief financial officer Jonny Mason will step in to become interim CEO, and be replaced by group financial controller Fiona Ryder, while the company waits for Bitar's return.

Shipping broker Clarkson reported weaker interim earnings as US tariffs and an uncertain economic environment continued to hit freight rates. Pre-tax profit for the six months to June 30 fell to £37.5m from £50m a year earlier. Revenues declined to £298m from £310m. The company said it expected annual earnings to be second half weighted.

High technology components and systems manufacturer Senior's interim results came broadly in line with expectations on Monday, with the group underlining progress on its transformation into a focused fluid conveyance and thermal management business. Senior said revenue from continuing operations rose 5% to £371.2m, driven by growth in aerospace and flexonics, while adjusted operating profit climbed 10% to £31.2m, with margins improving by 60 basis points to 8.4%.

Economic news

UK retail footfall dipped in July but the decline eased markedly from a month earlier, according to figures released on Friday by the British Retail Consortium and Sensormatic. Total footfall fell 0.4% year-on-year, but this was an improvement on June's 1.8% drop.

The Bank of England cut interest rates on Thursday by 25 basis points to 4.0%, as widely expected. This marked the fifth cut this year, leaving Bank Rate at its lowest level since March 2023. With the rate cut as expected, the hawkish voting split is what caught investors' attention.

UK house prices rose in July at the fastest monthly pace since the start of the year, according to figures released by Halifax on Thursday. House prices increased 0.4% on the month following a 0.1% rise in June. On the year, prices rose 2.4% in July, down from 2.7% growth a month earlier.

UK construction activity fell in July at the fastest pace in over five years amid a fresh drop in residential building, according to a survey released on Wednesday. The S&P Global construction purchasing managers' index declined to 44.3 from 48.8 in June, remaining below the 50.0 mark that separates contraction from expansion. Economists were expecting the index to be unchanged.

Growth in the UK service sector slowed in July amid a renewed fall in total new work, according to a survey released on Tuesday. The S&P Global services PMI business activity index fell to 51.8 from 52.8 in June, but remained above the 50.0 mark that separates contraction from expansion.

International events

Square burger specialist Wendy's reported a 1.8% decline in global systemwide sales in its second quarter on Friday, to $3.7bn, prompting a downgrade to its full-year guidance amid continued pressure on its US business. The fast-food chain's revised forecast now anticipated global sales to fall between 3% and 5%, compared to earlier projections of a flat to 2% decline.

The UK's Competition and Markets Authority (CMA) cleared Boeing's $4.7bn acquisition of Spirit AeroSystems on Friday, ruling out a deeper phase two probe and allowing the deal to proceed without further regulatory hurdles in Britain. The decision followed an initial investigation launched in June into whether the deal would lead to a "substantial lessening of competition" in the UK's aerospace supply chain.

Americans lined up for unemployment benefits at an accelerated pace in the week ended 2 August, according to the Labor Department. Initial jobless claims increased by 7,000 to 226,000 from the prior week's upwardly revised level, above market expectations of a softer increase to 221,000, while continuing claims soared by 38,000 to 1.974m, ahead of the 1.95m print expected by economists.

Shipping giant Maersk reported a stronger-than-expected Q2 performance on Thursday, buoyed by resilient freight demand and operational gains across its logistics and terminal divisions. Underlying earnings rose 7% year-on-year to $2.3bn, ahead of analyst forecasts of $1.98bn, while revenue climbed 3% to $13.1bn. EBIT in its logistics segment jumped 39% to $175m, helping lift margins from 3.5% to 4.8%.

China's export growth surprised to the upside in July, with exporters accelerating shipments ahead of a looming tariff deadline and early signs of recovering domestic demand. Exports rose 7.2% year-on-year, according to the General Administration of Customs of the People's Republic of China, beating expectations of a 5.4% increase and marking a sharp pickup from June's 4.8% growth, driven by front-loaded shipments amid a fragile tariff truce with the United States, set to expire on 12 August.

German industrial output fell more than expected in June as the rush to get goods shifted before US tariffs were imposed faded, according to official data published on Thursday. Industrial production fell 1.9% month on month, the federal statistics office said. Economists had predicted a 0.5% decline.

US president Donald Trump on Wednesday slapped an extra 25% tariff on goods from India, saying the country directly or indirectly imported Russian oil. In an executive order, Trump also said he would set up "a process for the potential imposition of similar tariffs on other countries that directly or indirectly import oil from the Russian Federation". The move means India now faces duties of 50%.

McDonald's delivered second-quarter earnings and revenue that exceeded Wall Street expectations on Wednesday, buoyed by global growth and a rebound in US sales. However, the fast-food giant warned that consumer weakness among low-income Americans continued to pose a challenge. Global comparable sales rose 3.8% in the quarter to 30 June 30, led by international growth and a recovery in US performance.

Uber reported strong second-quarter results on Wednesday, with revenue and profitability exceeding expectations and prompting the company to authorize a $20bn share repurchase program - its largest to date. Revenue for the quarter ended 30 June 30 rose 18% year-on-year to $12.7bn, slightly ahead of analyst estimates.

Walt Disney reported stronger-than-expected earnings for its third quarter on Wednesday, driven by continued growth in its streaming business and higher spending at US theme parks, although revenue just missed expectations as its traditional television networks weighed on overall results. The entertainment giant also raised its full-year profit outlook, citing strategic gains in streaming and experiences.

OpenAI is in early-stage discussions with investors about a secondary share sale that could value the artificial intelligence company at approximately $500bn, it was reported on Wednesday. According to Bloomberg, citing sources familiar with the matter, the proposed transaction would allow current and former employees to sell their shares.

Commerzbank reported its strongest operating performance on record for the first half of 2025 on Wednesday, prompting the German lender to raise its full-year profit targets.The bank posted a 23% year-on-year rise in operating profit to €2.4bn, with second-quarter earnings up 34% to €1.2bn.

Eurozone retail sales rose more than expected in June, according to figures released on Wednesday by Eurostat. Retail sales in the bloc grew 3.1% on the same month a year earlier, beating expectations for a 2.6% jump. Sales of food, drinks and tobacco rose 1.7%, while non-food products saw a 4.3% increase and sales of automotive fuel in specialised stores pushed up 4%.

The downturn in the eurozone construction sector deepened in July, according to a survey released on Wednesday. The HCOB eurozone construction PMI total activity index fell to 44.7 from 45.2 in June. This marked the strongest rate of decline since February, with the index below the 50.0 mark that separates contraction from expansion for 39 months in a row.

German factory orders fell unexpectedly last month, missing consensus forecasts, according to official data published on Wednesday. Orders were down 1% compared with a fall of 0.8% in May and expectations of a 1% rise.

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