Weekly review
By Josh White
Date: Friday 22 May 2026
(Sharecast News) - The FTSE 100 ended the week up 271.51 points, or 2.66%, closing at 10,466.26 on Friday.
Equity view
Warhammer maker Games Workshop on Friday said it expected higher revenue and profits in the year to May, but licensing revenue would likely be lower. In a typically brief trading statement, the company said annual core revenue would be at least £625m, compared with fiscal 2025's £565m and licensing revenue not less than £30m, against £52.5m last time.
Softcat lifted its full-year profit outlook on Friday, saying it continued to perform well in the third quarter, delivering strong double-digit year-on-year growth in gross profit and underlying operating profit. The company, which provides IT infrastructure technology and services, said growth remains broad-based with particular strength in corporate. This is supported by customer demand for AI-enabled infrastructure and continued pull-forward of some orders due to memory shortages.
Automotive distributor Inchcape said on Friday that it has agreed to buy Silver Star, the official distributor of Mercedes-Benz passenger vehicles and Daimler trucks and buses in Bulgaria, for an undisclosed sum. Inchcape, which has operated in Bulgaria since 1996, said the acquisition will further scale its share of passenger vehicles in the market there, and expand its presence into the truck category.
Shares in Genuit fell on Friday as the pipe maker said it expected annual operating profit to be at the lower end of estimates after revenues fell in the first four months of the year amid tough markets and uncertainty due to the Iran war. The company forecast flat underlying operating profit for the first half of 2026 - against 2025's £44.6m - and targeted £4m - £5m of annualised cost savings.
Commercial real estate investment trust LondonMetric Property reported a double-digit increase in rental income during the fiscal year ended 31 March, helped by last year's acquisition of Urban Logistics REIT, though statutory profits dropped. LMP, which invests across the logistics, convenience, entertainment/leisure and healthcare sectors, said net rental income rose 16.6% to £455.3m, with underlying earnings up 13.9% at £305.3m.
Smiths Group cut full-year guidance on Thursday, as the conflict in the Middle East weighed on trading. The 175-year-old firm had previously forecast organic revenue growth of between 3% and 4% for the current year, excluding any impact from the war.
Tate & Lyle conceded on Thursday that its full-year performance had been "disappointing" as it posted a drop in profit and revenue amid "muted" market demand. In the year to the end of March, adjusted pre-tax profit dipped 5% from the previous year to £238m on revenue of £2.0bn, down 3%. Group adjusted earnings before interest, tax, depreciation and amortisation were down 3% at £415m.
Clay bricks and concrete building products manufacturer Ibstock said it still expects to meet market forecasts despite a weak start to the year, with trading momentum picking up in recent months. Group revenues were down 10% on a like-for-like basis over the first four months of 2026, with residential activity dampened by wet weather in January and February.
Final results from British Land revealed a record 12 months of leasing for the real estate investment trust, with the firm predicting further profit growth this year. Underlying profits rose 5% to £294m in the 12 months to 31 March, with underlying earnings per share up 1% at 28.9p.
Investment platform group Integrafin reported a double-digit increase in underlying earnings over its first half, helped by strong net inflows and favourable market movements. The company, which operates the Transact platform for clients and UK financial advisers, said underlying profit before tax was up 16% year-on-year to £43.9m over the six months ended 31 March, while underlying earnings per share rose 14% to 10.0p.
Gambling software development company Playtech hailed a "very strong" start to 2026 on Wednesday, with particular strength in the Americas. In an update on trading for the period from 1 January to the end of April, the company said the stronger-than-expected performance in the Americas that was flagged in its full-year results in March has continued.
4imprint said on Wednesday that trading in the first four months of the year was in line with the board's expectations. In a statement to be made at the annual general meeting, chairman Paul Forman said trading reflects a "solid" operational and financial performance, with group revenue consistent with the same period a year earlier.
Standard Chartered has raised its return targets over the coming years after delivering on its 2026 ambitions a year earlier than planned, with the banking group on Tuesday unveiling plans to improve efficiency, productivity and drive further growth. The wealth management, corporate and investment banking firm said it now expects to deliver a return on tangible equity of over 15% by 2028, more than 3 percentage points higher than 2025, rising to around 18% by 2030.
Food producer Cranswick hiked its dividend on Tuesday as it reported a jump in full-year profit and revenue amid strong demand across its core categories. In the year to 28 March, adjusted pre-tax profit rose 11.2% to £220m on revenue of £2.98bn, up 9.5% on the previous year. Like-for-like revenue was 6.8% higher.
Fresnillo has reiterated confidence in its outlook, helped by a strong balance sheet, solid cash generation and a more positive political climate in Mexico. At the miner's annual general meeting on Tuesday, chair Alejandro Baillères told shareholders that 2025 was "one of the most rewarding periods in Fresnillo's history", fuelled by a significant increase in profits as a result of cost reductions and rising precious metal prices.
Diploma boosted annual guidance for the second time on Tuesday, after the blue chip saw interim earnings rocket. Organic revenues at the industrial group, which provides a range of critical products and services to customers in various markets, rose 15% in the six months to 31 March to £851.1m, while adjusted operating profits surged 33% to £208.9m.
Recruitment firm Hays said it had appointed interim CEO Mark Dearnley to the post on a permanent basis. Prior to being appointed interim CEO in February, Dearnley was Hays chief digital and technology officer having joined from Inchcape.
Prudential is to acquire a majority stake in India's Bharti Life Insurance, the blue chip confirmed on Monday. The insurer and asset manager has agreed to pay Bharti Life Ventures and 360 One Asset Management around $389m in cash for a 75% stake in the life insurer. A further $78m is payable dependent on various conditions being met.
Venture capital firm Molten said it had sold a further stake in fintech Revolut, generating proceeds of around £63m. Molten has now realised proceeds of around £120m from its investment in the banking and investment app, delivering a multiple on invested capital of approximately 20 times.
Two AstraZeneca drugs have been given the green light in America to treat high blood pressure and breast cancer, the blue chip confirmed on Monday. Baxfendy has been approved by the US Food and Drug Administration as a first-in-class aldosterone synthase inhibitor for the treatment of hypertension in combination with other blood pressure-reducing drugs in adults who are not adequately controlled. The drug works by inhibiting the production of aldosterone, a hormone that raises blood pressure to unhealthy levels.
Economic news
The UK government borrowed more than expected in April, according to data released on Friday by the Office for National Statistics. Borrowing came in at £24.3bn last month, up £4.9bn on the same month a year earlier. It was also £3.4bn more than the £20.9bn forecast by the Office for Budget Responsibility.
UK retail sales fell more than expected in April, with drivers conserving fuel amid rising prices, according to figures released on Friday by the Office for National Statistics. Retail sales volumes declined by 1.3% following a revised 0.6% increase the month before. This was the worst monthly drop since May 2025, when sales were down 1.4%, and much steeper than expectations for a 0.6% fall.
UK consumer confidence unexpectedly edged higher in May, a long-running survey showed on Friday, although households remained reluctant to splash out on big ticket items. The latest GfK consumer confidence barometer was -23, still in negative territory but up two points on April. It was also notably better than consensus expectations for a fall to -28.
Manufacturing orders shrank in May at the fastest rate since September 2020, according to data released by the Confederation of British Industry on Thursday. The CBI's monthly balance of total new orders declined to -41 from -38 in April.
UK business activity fell in May for the first time since April 2025 as political uncertainty at home added to the impact of the war in the Middle East. The flash S&P Global composite output index fell to a 13-month low of 48.5 from 52.6 in April and versus expectations of 51.6. A reading above 50.0 indicates expansion, while a reading below signals contraction.
UK consumer sentiment improved a touch in May, although high prices continued to weigh on people's minds, a survey released on Thursday showed. According to May's BRC-Opinium consumer sentiment monitor, the measure for expectations about the state of the economy over the next three months improved to -48 from -53 in April.
UK house prices stalled in March, according to the latest figures from the Office for National Statistics, marking the first time that prices haven't increased in annual terms in nearly two years. Average UK house prices remained at £268,000 in March, unchanged from the year before, with growth slowing dramatically from the 1.7% annual gain registered in February.
The UK inflation rate eased in April, official data showed on Wednesday, despite the war in the Middle East. According to the Office for National Statistics, the consumer prices index rose 2.8% in the 12 months to April, down from 3.3% in March and below consensus for 3%. The fall was driven by lower electricity and gas prices, following a reduction in the regulator's cap on charges on 1 April.
UK unemployment ticked higher in the first quarter, official data showed on Tuesday, while wage growth slowed. According to the Office for National Statistics, the UK unemployment rate was estimated to be 5.0% in January to March, up 0.5 percentage points year-on-year but down 0.1 percentage points on the previous three months.
The International Monetary Fund raised its growth forecast for the UK on Monday, but warned risks remained, including "domestic uncertainty". The IMF still expects economic growth to slow in 2026, as the Iran war dampens the UK's near-term prospects. In April it said the country would likely be one of the hardest hit by the conflict and predicted growth would slow to 0.8% this year from 1.4% in 2025.
International events
German business sentiment unexpectedly improved in May, according to a survey released on Friday by the Ifo Institute. The business climate index rose to 84.9 from 84.5 in April, beating expectations for a drop to 84.2.
The German economy grew by 0.3% in the first quarter of 2026 compared with the previous three months, according to official data published on Friday, confirming a flash estimate. In a separate release, consumer sentiment in Europe's largest economy recovered heading into June, as households' income expectations improved, according to a widely-read survey.
Iran's Supreme Leader Mojtaba Khamenei has issued a directive that the country's near-weapons-grade uranium should not be sent abroad, according to two senior Iranian sources cited on Thursday by Reuters. "The Supreme Leader's directive, and the consensus within the establishment, is that the stockpile of enriched uranium should not leave the country," one of the two Iranian sources told Reuters.
The European Commission has slashed its growth forecasts for the eurozone and wider EU as a result of the "energy shock" caused by the Iran war, adding a whole percentage point to its inflation projection this year. The EU's main executive body said it now expects the EU economy to expand by just 1.1% in 2026, down from an earlier forecast of 1.4%, after growing by 1.5% in 2025. Growth is then expected to accelerate to 1.4% in 2027, marking a 0.1 percentage-point reduction from its Autumn Forecast in November.
Construction output across the eurozone bounced back in March after two consecutive months of declines, powered by a strong increase in civil engineering works, though activity is likely to have come under increased pressure in recent months as a result of uncertainty caused by the Iran war. Total production in construction across the single-currency region rose 0.8% over the month, following a 0.8% decline in February and a 1.1% fall in January.
The Eurozone downturn deepened in May, a closely-watched survey showed on Thursday, as the war in the Middle East ramped up inflationary pressures. The latest flash S&P Global Eurozone PMI composite output index was 47.5, down on April's 48.8 and a 31-month low. It was also below forecasts for no change. A reading above the neutral 50.0 benchmark suggests growth while one below indicates contraction.
Iran has threatened to attack countries outside of the Gulf if the US and Israel resume military campaigns against the Middle East state. In a statement carried on state media on Wednesday, the powerful Islamic Revolutionary Guard Corps said: "If aggression against Iran is repeated, the promised regional war will extend beyond the region this time, and our crushing blows will bring you ruin in places you cannot imagine.
Eurozone inflation was confirmed at a two-and-a-half-year high in April, according to final estimates from Eurostat on Wednesday, as energy prices jumped by more than a tenth compared with last year. The annual inflation rate for the single-currency region was 3.0% in April, in line with preliminary estimates released at the end of last month.
China once again kept benchmark lending rates on hold on Wednesday, as widely expected. The People's Bank of China left the one-year loan prime rate at 3.0% and the five-year LPR at 3.5%. Consensus had been for no change. The central bank has now left the cost of borrowing unchanged for 12 consecutive months.
Global fund managers lifted their equities allocation in May by the most on record, according to the latest fund manager survey from Bank of America. Allocation to equities rose from a net 13% 'overweight' in April to 50% in May - the highest allocation since January 2022.
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