Weekly review
By Michele Maatouk
Date: Friday 07 Aug 2026
(Sharecast News) - The FTSE 100 ended up 0.3% at 10,901.09 on Friday.
Equity view
Oxford Biomedica on Friday slashed its full year revenue and margins forecast citing short‑term client ordering delays, programme deferrals and the later‑than‑expected readiness of its Durham, North Carolina facility. It now expects 2026 revenue of £180m-200m compared with prior guidance of £220-240m.
Goodwin confirmed on Friday that it is considering the sale of a substantial part of its mechanical engineering division. Responding to recent press speculation, the engineering firm said: "The board of Goodwin confirms that it has commenced a strategic review to consider a range of potential options to maximise value for shareholders whilst ensuring continuity for all stakeholders, including customers, and the long-term prosperity of its businesses. "These options include the potential sale of a substantial part of the mechanical engineering division, which includes GSC, GI, Noreva, Easat and Pumps."
US investment firm Castlelake said on Thursday that it was abandoning its pursuit of easyJet, clearing the path for a £5.7bn takeover by Apollo. The statement from Castlelake was swiftly followed by confirmation from easyJet that it has agreed to be taken over by Apollo for 715p per share in cash.
Housebuilder Persimmon said on Thursday that full-year completions were set to be at the upper end of guidance, as it reported a rise in first-half profit and completions but warned over inflationary pressures. In the six months to 30 June, underlying pre-tax profit edged up 3% from the same period a year earlier to £170.1m, new home completions rose 13% to 5,189 and the average sales price of a new home was 1% higher at £285,752.
Diageo shares fizzed higher on Thursday as the drinks giant outlined plans to save around $1bn over the next three years alongside its full-year results. The company said the redesign of its operating framework will deliver around $850m of savings, while supply chain initiatives will deliver approximately $150m. Restructuring costs will total around $1.2bn, said the owner of Guinness and Johnnie Walker, among others.
US investment firm Castlelake said on Thursday that it was abandoning its pursuit of easyJet, clearing the path for a £5.7bn takeover by Apollo. "Castlelake is very appreciative of the constructive engagement with the easyJet board and management team, and would like to thank them for their time and consideration of this potential transaction," it said. The statement from Castlelake was swiftly followed by confirmation from easyJet that it has agreed to be taken over by Apollo for 715p per share in cash.
Shares in advertising giant WPP were sharply higher in early trade after revealing it had delivered higher first‑half operating profits despite a drop in revenues, with margins improving as cost savings and lower severance helped offset weaker client spend. WPP said reported operating profits rose 18.1% to £261m, while headline operating profit came in at £398m, giving a margin of 8.4%, up 0.2pts on a like‑for‑like basis.
Insurance firm Admiral Group posted a sharp drop in first‑half profits on Thursday, with both pre-tax earnings and earnings per share dropping 18% year-on-year, reflecting lower earned premiums in UK Motor after last year's rate cuts and higher quota‑share reinsurance charges. Admiral said pre‑tax earnings from continuing operations fell to £429.2m, while EPS dropped to 109p and return on equity declined to 45% from 57%.
Asia-focused Prudential and HSBC tumbled on Wednesday following a report that Chinese mainland tax authorities have started levying personal income tax on the returns of offshore insurance policies. Tax lawyers and insurance insiders told Caixin that early enforcement cases in Beijing and Hangzhou show authorities applying a 20% tax rate to returns from Hong Kong policies. The levies target dividend payouts and interest earned on prepaid premiums.
Bodycote surged on Wednesday as the provider of heat treatment and specialist metallurgical technologies confirmed it had received takeover offers from private equity firms CVC and Veritas Capital. CVC offered 915p per share for Bodycote. This includes 907.8p in cash, plus the interim dividend for the year to the end of December 2026 of 7.2p. Meanwhile, Veritas offered 914p per share, comprised of 906.8p in cash, plus the interim dividend.
First-half profits at Beazley more than halved as a result of "rapidly softening conditions" in the specialty insurance market, with the combined ratio climbing significantly compared with last year. Pre-tax profit totalled $237.7m over the six months to 30 June, down from $502.5m the year before, while the undiscounted combined ratio - a key measure of insurers' profitability - jumped to 93.3% from 84.9%. Insurance written premiums fell to $3.06bn from $3.19bn.
Mining giant Glencore reported a markedly stronger first‑half performance on Wednesday, with higher commodity prices and disrupted energy markets driving a sharp uplift across both earnings and cash flow. Glencore said group revenues jumped 49% year‑on‑year to $174.4bn in the first half, up from $117.4bn in H125, while overall group adjusted underlying earnings rose 86% to $10.1bn, supporting a 158% increase in funds from operations to $8.1bn.
Coca‑Cola HBC lifted its full‑year guidance on Wednesday after delivering a strong first half, with operating profit rising sharply on the back of broad‑based volume growth and improved margins. The group said organic EBIT is now expected to grow 8%-10% in 2026, up from its previous 7%-10% range, reflecting better‑than‑expected profitability across all segments.
Shares in Next surged on Wednesday as the UK retailer lifted profit guidance again after second quarter full-price sales smashed estimates due to the hotter summer and the release of pent‑up demand in the Middle East and Northern Europe. The retailer said it now expects pre‑tax profit of £1,243m for 2026/27, an increase of £25m from its prior forecast in March, which itself was an upgrade from January. Next shares were up 7% in early trade.
Segro said on Tuesday that it has agreed to be taken over by US logistics giant Prologis in a £14.3bn deal. Under the terms of the agreement, Segro will shareholders will receive 0.0920 new Prologis shares for each of their shares and a partial cash alternative of up to £3.5bn. The deal values Segro at 1,031.7p per share, which is a 39% premium to the closing share price on 23 June, the last day before the start of the offer period.
Travis Perkins reported a drop in first-half revenue on Tuesday and flat operating profits once property profits were stripped, but shares in the builders' merchants surged as analysts pointed to early signs of a turnaround. In the six months to 30 June, revenue fell 1.8% to £2.2bn, or 0.7% on a like-for-like basis, mainly driven by the merchanting segment, where end markets remain challenging, and the comparative effect of the disposal of Staircraft, the company said.
BP smashed forecasts on Tuesday as second-quarter underlying profits more than doubled on the back of a surge in oil prices, but acknowledged that its operational performance "fell short" of expectations, with upstream plant reliability and refining throughput both lower. The energy major reported an underlying replacement cost profit of $5.73bn for the three months to 30 June, up from $3.20bn in the first quarter and $2.35bn the year before. The consensus forecast was $5.01bn.
Fresnillo beat expectations with its interim results on Tuesday, helped by higher volumes and lower-than-forecast operating costs, with gross profits more than doubling compared with last year. The Mexico-focused precious metals miner held on to full-year product guidance, but lowered its capex projections for 2026 to $500m-550m as a result of the "rationalisation of capex across mining operations". This is significantly lower than the $765m guided to at the time of the company's annual results in March.
HSBC posted a better-than-expected 23% jump in first-half profit driven by a strong second quarter on the back of net interest income and fees. Pre-tax profit rose to $19.5bn, compared with the $18.9bn average forecast by analysts in a company-compiled consensus. The bank said it was resuming share buybacks with a $1bn repurchase plan.
AstraZeneca is reportedly in talks to combine with US rival Bristol Myers Squibb in a deal that would create one of the world's biggest pharmaceutical groups, valued at nearly $400bn. According to the Financial Times, citing people familiar with the matter, the companies have held discussions about a tie-up in recent months. It was understood the talks could yield a deal in the near future but may be delayed or fall apart.
Utilities firm National Grid said on Monday that it will streamline its operating structure to sharpen execution and improve performance, unveiling a new model that reduces its group executive committee from 13 members to eight from 1 September. National Grid said leadership of its UK and US business units will be consolidated under newly created regional presidents, each responsible for driving operational improvement, disciplined delivery and the wider rollout of technology.
Economic news
UK retail footfall fell in July, albeit less than in June, with high streets still the worst performers as the hot weather continued, according to data released on Friday by the British Retail Consortium. The BRC-Sensormatic footfall monitor showed that total footfall declined 2.1%, an improvement on June's 3.4% slump. Footfall on the high street fell 3.8% in July, having dropped 6.2% in June, while retail parks saw a 1.2% increase, having fallen 0.3% the month before. Footfall at shopping centres was down 1.4% last month following a 2.5% decline in June.
The downturn in the UK construction sector eased in July, according to a survey released on Thursday. The S&P Global construction purchasing managers' index rose to a four-month high of 44.7 from 38.4 in June. It remained above the 50.0 mark that separates contraction from expansion, however. The survey found that total new business received by construction companies fell at the slowest pace for 10 months in July. Some firms noted a recent turnaround in tender opportunities, including for commercial development, residential projects and transport infrastructure work.
UK new car registrations increased sharply in July, recording their strongest performance for the month since 2019 as demand for electric vehicles surged, according to industry figures released on Wednesday. The Society of Motor Manufacturers and Traders said registrations rose 11.7% year-on-year to 156,571 units, marking an eighth consecutive month of growth.
EY nudged up its 2026 UK growth forecast on Monday but warned of a potential recession if the Strait of Hormuz stays closed until early-mid 2027. According to its new UK Economic Outlook, the economy is projected to grow by 0.9% in 2026, up a touch on the 0.8% growth forecast in May. EY noted a better-than-expected performance in the second quarter as oil prices returned to pre-conflict levels more quickly than expected.
Growth in the UK manufacturing sector eased in July, according to a survey released on Monday. The S&P Global manufacturing purchasing managers' index fell to a four-month low of 51.9 from 52.5 in June, coming in below the flash estimate of 52.8. Still, it was the ninth month in a row the index was above the 50.0 mark that separates contraction from expansion.
International events
The US economy unexpected shed jobs in July, according to data released on Friday by the Bureau of Labor Statistics. Non-farm payrolls fell by 23,000 following a revised 20,000 increase in June, missing consensus expectations for an 80,000 increase. June's figure was revised down from a 57,000 jump. The BLS said employment declined in local government, education and retail trade. Employment continued to trend up in healthcare, however. Meanwhile, the unemployment rate dipped to 4.1% last month from 4.2% in June, versus expectations for it to be unchanged.
German exports and industrial production beat expectations for June, according to official data published on Friday. Exports rose 0.9% on the month, above expectations of a 0.2% increase, while imports jumped 4.4%, according to the Federal Statistics Office.
German industrial orders rose in June driven by a surge in large scale orders and helped by a downwards revision to May's readout. New orders increased 3.1% month‑on‑month, seasonally and calendar‑adjusted, according to provisional figures from the Federal Statistical Office.
The eurozone's construction sector remained in contraction in July, though the pace of decline eased slightly from June, according to a survey published on Thursday. The S&P Global Eurozone construction PMI registered 42.9, up from 41.7 the previous month, marking the ninth consecutive month below the 50.0 no‑change threshold. The latest reading points to another sharp fall in activity, driven by weak demand, reduced new project starts and ongoing financial pressures across the sector.
US employers announced 33,429 job cuts in July, according to Challenger, Gray & Christmas, down 27% from June and 46% below the same month last year to mark the lowest monthly total in two years. Artificial intelligence remained the top driver of reductions for a fifth straight month, accounting for 10,970 cuts, while the tech sector once again led industry‑level declines with 9,867 planned layoffs, followed by financial services at 3,157, government at 2,962 and services at 2,581.
Eurozone business activity strengthened in July, with the bloc's private sector expanding at its fastest pace in eight months, according to data published on Wednesday. The S&P Global Eurozone Composite PMI rose to 52.0, up from 50.0 in June, signalling a solid improvement in economic momentum at the start of the third quarter.
US factory orders dipped again in June, marking a second monthly decline, according to the Census Bureau, with softer shipments partly offset by continued strength in unfilled orders and inventories. New orders edged 0.3% lower to $656.5bn after a 1.1% fall in May, while shipments slipped 0.2% to $652.1bn following six straight monthly increases.
Growth in China's manufacturing sector eased in July as output and new orders grew more slowly, according to a private survey released on Monday. The RatingDog China general services purchasing managers' index, compiled by S&P Global, fell to a four-month low of 50.9 from 51.7 in June. The index was in expansionary territory for the eighth month in a row, but came in below expectations for a reading of 51.5.
Retail sales in Germany fell by the most in more than a year in June, according to figures released on Monday by the country's federal statistical office, with consumer uncertainty dampening hopes for a rebound in economic activity. Retail sales declined by 1.1% in price-adjusted terms, offsetting the revised 1.2% increase registered in May, Destatis reported. This was much worse than the 0.5% fall expected by analysts and the steepest decline since May 2025.
Japan and the United States confirmed a rare coordinated intervention to support the yen after the currency hit 40‑year lows, with Tokyo signalling it was prepared to act again if needed. Japan's Ministry of Finance said Friday's joint move with the US Treasury was aimed at countering "excessive volatility" in recent months, following a statement from Donald Trump that Washington was helping to prop up the yen "as a sign of friendship and to support the global economy".
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