Weekly review
By Josh White
Date: Friday 19 Sep 2025
(Sharecast News) - The FTSE 100 ended the week down 66.62 points, or 0.72%, closing at 9,216.67 on Friday.
Equity view
Kainos Group said it had bought Canadian IT specialist consultancy Davis Pierrynowski for an undisclosed sum. Established in 2014, Nova Scotia-based Davis Pier and Kier have partnered to work across public sector and community organisations, including projects to modernise the Registry of Motor Vehicles, Nova Scotia Healthcare, and Early Learning and Childcare. Kainos added.
Banking and wealth management firm Investec said on Friday that it expects interim results to be broadly in line with the prior period, supported by a solid performance across its core banking and wealth operations despite a volatile macro backdrop. For the six months ended 30 September, adjusted earnings per share were expected to be between 38.7p and 41.5p, compared with 39.5p a year earlier, while adjusted operating profits before tax were seen between £451.0m and £481.8m, versus £474.7m previously. Pre-provision adjusted operating profits were seen at £509.4m to £540.3m, slightly behind last year's £541.6m figure.
Online trading provider IG Group said on Friday that it had agreed to acquire Independent Reserve, one of Australia's largest cryptocurrency exchanges, in a deal worth up to AUD $285.1m (£139.0m), marking a major strategic push into the Asia-Pacific digital asset market. IG will initially acquire 70% of Independent Reserve for AUD $109.6m (£53.4m), with a further AUD $15.0m (£7.3m) contingent on FY26 performance.
Shares in Spire Healthcare Group surged on Friday, after the FTSE 250 company confirmed it was exploring a possible sale. The private healthcare group, which runs around 90 hospitals and other medical centres, said it was pleased with the progress it had made so far in implementing various strategic and efficiency initiatives.
C&C Group said chief financial officer Andrew Andrea was leaving to take up the same role at Domino's Pizza. The Bulmers cider maker added that Andrea would stay in post until the current financial year is completed. In a separate trading update, C&C held full-year earnings guidance, despite a challenging macroeconomic environment. Underlying operating profit for the six months to August 31 is expected to be in the range of €41.5m - €42.0m - also in line with forecasts.
Software and security firm Bytes Technology said Thursday that it had delivered "a resilient performance" in the six months ended 31 August, with trading "substantially in line" with expectations. Gross invoiced income was expected to be roughly £1.33bn, while gross profits were seen at no less than £82m, and operating profits were pegged to be at least £33m.
Independent publisher Bloomsbury said it had appointed Keith Underwood as chief financial and operating officer. Underwood is currently in the same role at newspaper publisher Guardian Media Group and will join Bloomsbury next February. He joined GMG in June 2020 from Channel 4 where was CFO and spent more than eight years on the executive committee. Prior to that he was employed by Discovery Networks International, Sky and PwC.
Restaurant chain Domino's Pizza Group said Thursday that Andrew Andrea has been appointed chief financial officer, succeeding current CFO Edward Jamieson. Andrea will join Domino's from C&C Group on 16 March 2026, while Jamieson will, by mutual agreement, leave the company immediately.
GSK has announced plans to invest $30bn across the US in research and development and supply chain infrastructure over the next five years, amid fears of tariffs being imposed on the pharma industry by US President Donald Trump, who is in the UK on a state visit. The company said it would commit $1.2bn towards advanced manufacturing facilities and AI and advanced digital technologies, to deliver new, next-generation biopharma factories and laboratories.
Housebuilder Barratt Redrow delivered annual profits ahead of forecasts despite completions missing its initial guidance range, but pointed to ongoing market challenges and additional uncertainties ahead of the upcoming Budget. Chief executive David Thomas pointed to "limited growth in FY26", with private homebuyer confidence still "fragile given the continuing affordability challenges".
Games Workshop has declared a new dividend as it confirmed trading over the first two months of the financial year was in line with forecasts. The board game company announced on Wednesday that it was declaring a dividend of 85p per share, taking dividends declared so far for the fiscal year ending 1 June 2026 to 225p, up from 100p at the same point last year.
AstraZeneca said Monday that asthma drug Fasenra had failed to meet core targets in trials involving patients with severe lung disease. The drugs giant said phase III trials into Fasenra, which is already approved as an add-on maintenance treatment for severe eosinophilic asthma, had shown numerical improvement.
FMCG giant Unilever has announced that acting finance lead Srinivas Phatak has been appointed as its permanent chief financial officer, having "performed strongly" since stepping in over the past seven months. After a thorough internal and external search process, the board "unanimously" agreed that Phatak was the best candidate for the role, and that he would be appointed effective immediately.
Shipping services provider Clarkson revealed Tuesday that chief financial officer Jeff Woyda had informed the board of his intention to retire after more than 18 years with the company. Clarkson said it would now proceed with a formal search for a successor, considering internal and external candidates. Woyda will support the board in ensuring an orderly transition during his 12-month notice period.
Anglo American has announced that it has finalised a "landmark agreement" with Chilean copper miner Codelco to jointly mine their adjacent mines, which is expected to unlock 2.7m additional tonnes of copper. Anglo American Sur (AAS), 50.1%-owned by the UK-listed miner, on Tuesday signed a "joint mine plan" with Codelco for their Los Bronces and Andina operations, first earmarked back in February.
Fund administrator JTC reported a 17.3% year-on-year increase in interim revenues to £172.6m on Tuesday, driven by strong organic growth and record new business wins. JTC said underlying earnings had risen 15.1% to £56.5m in the six months ended 30 June, with a margin of 32.8%, while underlying basic earnings per share improved 7.1% to 21.3p. It also declared a 5.0p interim dividend, up 16.3% on the prior year.
Trading platform operator IG Group announced Monday that its chair Mike McTighe will step down after nearly six years in the role. McTighe, who has been at the helm since February 2020, will leave at the end of the year, and a process is now underway to find his successor. "It has been a great honour and privilege to lead the board over the past five years. I am grateful for the trust and support I have received from colleagues," said McTighe in a statement.
Self-storage firm Big Yellow has exchanged contracts to acquire a half-acre freehold property in Bethnal Green, East London, for £10.8m. Big Yellow said on Monday that completion of the purchase was unconditional and will take place in 18 months, allowing time for it to secure planning consent to develop a 68,000 square foot self-storage centre on the site, which it expects to yield approximately 8% net operating income on the capital deployed at stabilisation.
Talks between J Sainsbury and China's JD.com over the potential sale of Argos have collapsed, the supermarket chain confirmed Monday. In a brief statement, the blue chip retailer said JD.com was now only prepared to engage on a "materially revised" set of terms and commitments, which were not in the best interest of shareholders. It continued: "Accordingly, Sainsbury's confirms that it has now terminated discussions with JD.com."
Media company S4 Capital has cut its full-year sales targets after a challenging first half, but said it is considering raising its dividend if the second half picks up as expected. The company, which confirmed last month that it was in discussions about a potential merger with MSQ Partners, said that full-year like-for-like revenues are now expected to fall at a mid-single-digit percentage rate, compared with guidance in June for a low-single-digit decline.
Economic news
Public sector borrowing surged by a worse-than-expected £18bn in August, official data released on Friday showed. According to the Office for National Statistics, the government borrowed £18bn in August, as surging levels of spending and higher borrowing costs outstripped an increase in tax and National Insurance receipts, to £84.3bn. Up £3.5bn on the same month a year previously, it was the highest August borrowing for five years.
Retail sales rose in August, official data showed on Friday, boosted by the warm summer weather. According to the Office for National Statistics, retail sales volumes rose 0.5% last month, following a downwardly-revised 0.5% increase in July. Analysts had been expecting a more modest 0.3% rise in August.
Consumer confidence tracked lower in September, a long-running survey showed on Friday, as concerns about day-to-day costs mounted. The latest GfK consumer confidence index came in at -19. That was two points down on August, and one point higher than September 2024. Within that, all sub-measures were lower. Looking ahead to the next 12 months, the personal financial situation index softened one point to 4, while the general economic barometer lost two points to -32.
The Bank of England left the cost of borrowing unchanged on Thursday, as widely expected, on the back of persistent inflation. The rate-setting Monetary Policy Committee voted by a majority of seven-to-two to leave interest rates at 4%. Swati Dhingra and Alan Taylor, both known for their more dovish positions, voted to cut by 25 basis points.
Consumer perceptions about the state of the economy worsened in September, according to a confidence survey out on Thursday, as high inflation continued to weigh on sentiment. The British Retail Consortium's consumer sentiment monitor showed that 52% of the public expected UK economic conditions to worsen in the coming three months, up from 49% in August.
Ofwat launched a consultation on proposals to introduce "fit and proper person" tests for senior executives at water companies on Wednesday, as part of wider reforms to raise standards and accountability in the sector. Under the plans, firms would be required to assess whether individuals being appointed to senior roles, including chief executives, meet three key standards - honesty and integrity, relevant knowledge and experience, and financial soundness.
UK house price growth slowed in July even as private rents continued to rise sharply, underscoring mounting affordability pressures across the housing market, according to fresh figures from the Office for National Statistics. The ONS said average UK house prices rose 2.8% in the year to July to £270,000, easing from 3.6% annual growth in June. Prices increased by 2.7% to £292,000 in England, 2.0% to £209,000 in Wales, and 3.3% to £192,000 in Scotland.
Supermarket sales jumped in August, industry research showed Wednesday, as hard-pressed shoppers sought out promotions and back-to-school bargains. According to NielsenIQ, total till sales growth was 4.1% in the four weeks to 6 September, up from 3.7% a month previously. NielsenIQ said shoppers had shifted focus from summer staples to back-to-school items and early preparations for Christmas.
Microsoft announced a $30bn (£22bn) investment in the UK to build out artificial intelligence infrastructure and operations this week, marking its largest commitment outside the United States and forming the centrepiece of a wider £31bn "Tech Prosperity Deal" between the UK government and major US technology firms. The plan, unveiled as US president Donald Trump arrived in Britain for a three-day state visit, would see Microsoft spend $15bn on capital projects to expand its UK data centre footprint, including building the country's largest AI supercomputer in Loughton, Essex, using more than 23,000 Nvidia GPUs in partnership with developer Nscale.
Inflation remained unchanged in August, official data showed Wednesday, underpinned by higher food prices. According to the Office for National Statistics, the consumer prices index was 3.8% in the 12 months to August, unchanged on July and in line with expectations. On a monthly basis, CPI rose 0.3%, also in line with consensus. However, the core inflation rate - which strips out the more volatile elements of energy, food, alcohol and tobacco - softened to 3.6% from 3.8%.
International events
The Bank of Japan left interest rates unchanged on Friday, as it voted to start selling off billions of dollars-worth of exchange traded funds. The central bank kept its short-term interest rate at 0.5%, in line with consensus. However, markets were surprised by a split in the vote, after two board members proposed a hike to 0.75%.
The vice president of the European Central Bank has said that policymakers are following a "very prudent" approach after last week's decision to hold interest rates, suggesting that a further rate cut in the current easing cycle could still be on the table. "We do not know if the easing cycle is over," said Luis de Guindos in a livestreamed MNI Connect discussion in London. "If circumstances change, then we will change."
Americans lined up for unemployment benefits at a decelerated pace last week, according to fresh data from the Department of Labor, after hitting the highest level for initial claims since October 2021 a week earlier. Initial jobless claims dropped by 33,000 to a seasonally adjusted 231,000 in the week ended 13 September, better than consensus forecasts of a smaller decrease to 240,000, while continuing claims, which track those still receiving benefits, dropped by 7,000 to 1.92m, better than the increase to 1.95m expected by economists.
Norges Bank cut its policy rate on Thursday by 25 basis points to 4% as it signalled a more gradual easing path going forward. Governor Ida Wolden Bache said: "The job of bringing inflation back to target has not been completed, but a cautious easing of monetary policy will pave the way for returning inflation to target without restraining the economy more than needed.
Construction output across the eurozone rebounded slightly in July, according to statistics out on Thursday from Eurostat, bouncing back after two months of solid declines. Seasonally adjusted production in construction increased 0.5% over the single-currency region in July, only partially offsetting the 0.7% contraction in June and the 2.1% slump in May.
The Bank of Canada cut interest rates Wednesday by 25 basis points to 2.5%, as widely expected. This marked the first rate cut since March. The Bank said in a statement: "With a weaker economy and less upside risk to inflation, Governing Council judged that a reduction in the policy rate was appropriate to better balance the risks. Looking ahead, the disruptive effects of shifts in trade will continue to add costs even as they weigh on economic activity.
Two leading economic indicators for the US housing market came in well under forecasts for August, pointing to a slump in activity for new residential construction. Building permits - a closely watched gauge of future construction activity - dropped 3.7% from 1.362m to 1.312m, surprising economists who expected a rise to 1.370m.
Eurozone consumer price inflation for August was revised down from a flash estimate, according to official figures published on Wednesday. The European Union's statistics agency Eurostat said inflation was unchanged at 2.0% compared with July. A flash estimate came in at 2.1%.
Industrial output across the United States inched higher in August, unexpectedly rebounding after a contraction the month before, according to data out on Tuesday from the Federal Reserve. Industrial production was 0.1% higher over the month, after a revised 0.4% decrease in July - the steepest decline since September 2024. This was ahead of analysts' expectations for 0.1% decline.
Fund managers were the most bullish in September they have been since February, according to the latest fund manager survey from Bank of America released on Tuesday. The survey highlighted low cash levels - which remained at 3.9% for the third month in a row - and equity longs at seven-month highs amid the biggest jump in global growth expectations since October 2024. The bank said fading tariff worries and expectations of easing outweighed concerns over weak US jobs.
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