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FTSE 100 higher and US stocks in the red with earnings rush and jobs data in focus
The FTSE 100 (^FTSE) and European stocks headed higher on Tuesday, while US stocks lost ground. It comes as traders' attention turns to the crop of quarterly company updates slated for this week, as well as the Federal Reserve's two-day meeting, which starts on Tuesday. Barclays (BARC.L) bank reported second-quarter results before the opening bell in London, with its stock price soaring around 2.5% as it announced £1bn in share buybacks. The bank was scheduled to hold an earnings call this afternoon. In Europe a crop of fashion and luxury retailers are set to report, including Kering ( Christian Dior ( and L'Oreal ( In the US, earnings reports from Visa (V), Procter & Gamble (PG), United Health (UNH), Boeing (BA), Spotify (SPOT) and Starbuck's (SBUX) are all on the agenda. The mood soured in the US as a blockbuster week for markets gets into full swing. The JOLTS job openings update for June ushered in a series of crucial US employment market data culminating in Friday's nonfarm payrolls report. The data showed job openings declined in June while hiring also decreased, according to government data released Tuesday. The report comes as investors closely watch for any signs of slowing in the labor market amid a debate over when the Federal Reserve could cut interest rates again. Stocks: Create your watchlist and portfolio London's premier index was up 0.7% by the end of the session. At the top of the index were AstraZeneca (AZN.L) and Games Workshop (GAW.L). Over in Germany, the DAX (^GDAXI) added 1%. Paris shares rose, with the CAC 40 (^FCHI) also rallied 0.3%. The pan-European STOXX 600 (^STOXX) ticked up 0.6%. The S&P 500 (^GSPC) fell 0.2% on the heels of narrowly notching a sixth all-time closing high in a row, while the tech-heavy Nasdaq Composite (^IXIC) dipped 0.1%. The Dow Jones Industrial Average (^DJI) was 0.3% lower. That's it from me! Thanks for reading. Head over to our US site for more market moving news. US jobs numbers show decrease in hiring New data from the Bureau of Labor Statistics showed 7.44 million jobs open at the end of June, a decrease from the 7.71 million seen the month prior. May's report had shown the highest number of job openings since November 2024. The Job Openings and Labor Turnover Survey (JOLTS) also showed that 5.2 million hires were made in June, down from the 5.47 million made during May. The hiring rate ticked lower to 3.3% from the 3.4% seen the month prior and stood at its lowest level since November 2024. In one sign that workers remain cautious about labor market conditions, the quits rate, a sign of confidence among workers, hovered at 2%. Both the hiring and quits rates are hovering near decade lows, reflecting what economists have described as a labor market in "stasis." Oil higher for a second day Chris Beauchamp, chief market analyst at online trading platform IG, said: Chancellor and BoE governor clash over Revolut licence meeting: FT The governor of the Bank of England has reportedly blocked a meeting planned by Chancellor Rachel Reeves to address the regulation of Revolut, in a sign of potential friction between the Government and the central bank. The Chancellor had sought to set up a three-way meeting for Treasury officials, the fintech business and the Bank of England's Prudential Regulation Authority, with regulates UK banks. It is understood the Chancellor is pushing for Revolut to be fully authorised as a bank as soon as possible, after receiving initial approval last year. However, the Financial Times reported the meeting was scrapped by Governor Andrew Bailey due to concerns of political interference in the central bank's oversight process. The incident, which took place in recent weeks according to the publication, contributes to speculation of a growing rift between the Treasury and regulators. Ms Reeves is currently pushing forward with reforms designed to loosen the rules on financial firms, in a move which will increase risk-taking in the sector. The 'Leeds reforms', unveiled in the West Yorkshire city earlier this month, are set to be the biggest set of changes to financial services for more than a decade, according to the Government. Labour is hoping that cutting red tape in the financial services sector and other industries can help accelerate growth in the economy. In her annual Mansion House speech to the financial services sector earlier this month, she urged regulators to resist 'excessive caution'. She added: 'In too many areas, regulation still acts as a boot on the neck of businesses, choking off the enterprise and innovation that is the lifeblood of growth.' Shortly after the meeting, Mr Bailey said 'I don't use those terms' when asked about Ms Reeves's remarks on regulation. He also said: 'We cannot compromise on basic financial stability, that would be my overall message.' Last year Revolut was approved for a UK banking licence after a lengthy process with regulators, however its banking division still has a limit on deposits it can receive until it receives full approval from regulators. The Bank of England declined to comment. The Treasury has been contacted for comment. Rachel Reeves' comment on the latest IMF figures The Chancellor said: Trump's trade war hasn't harmed global growth outlook yet, says IMF Global growth has so far been relatively unscathed by the US's ongoing tariff spats, according to the International Monetary Fund (IMF), with growth of 3% projected in 2025 and 3.1% in 2026. This is higher than the respective 2.8% and 3% forecast in the previous report in April. The latest World Economic Outlook noted the pause on tariffs and a de-escalation of trade tensions between the US and China as factors, which have helped improve growth forecasts. "Despite these welcome developments, tariffs remain historically high, and global policy remains highly uncertain, with only a few countries having reached fully fleshed-out trade agreements," IMF chief economist Pierre-Olivier Gourinchas said in a speech in Washington that accompanied the report's release. Output projections could be cut by 0.3% for 2026 if tariffs are reset at higher levels on the August 1 deadline given by Trump, Gourinchas added. Read more on Yahoo Finance UK How US stocks are faring at the opening bell United Health reports mixed second quarter UnitedHealth Group (UNH) reported second quarter earnings on Tuesday beating Wall Street's expectations on the top line by a small margin, and missing on the bottom line. But its earnings continue a trend of higher-than-expected costs in the industry this quarter. The company reported revenues of $111.6bn, compared to Wall Street forecasts of $111.53bn, and adjusted earnings per share (EPS) of $4.08, compared to $4.59 expected by the Street. The revenues are up nearly $13bn compared to the second quarter in 2024. But margins have shrunk, from 4.3% in 2024 to 3.1% this quarter. The company also updated its guidance for the full year, after pulling it last quarter. It now expects revenues between $445.5bn to $448.0bn, and adjust earnings of at least $16 per share. UnitedHealth's stock fell more than 3% in premarket trading on Tuesday after the report. Read more on Yahoo Finance Spotify stock slides in premarket following earnings Our US team writes: Spotify (SPOT) shares fell as much as 10% in early premarket trading Tuesday after the company missed second quarter earnings and revenue expectations. The results follow a remarkable 120% rally over the past year, as the stock rebounded from 2022 lows on the back of price hikes, cost cuts, and investor enthusiasm for AI and advertising. Spotify hit a record high of $738.45 earlier this month, but shares slid to around $635 immediately following the results. Spotify reported second quarter revenue of €4.19bn ($4.86bn), missing analyst expectations of €4.27bn, though up from €3.81bn in the same period last year. The company posted an adjusted loss of €0.42 ($0.49) per share, sharply missing forecasts for a profit of €1.97 and down from earnings of €1.33 in Q2 2024. "Outsized currency movements during the quarter impacted reported revenue by €104m vs guidance," the company said in the earnings release. Operating income also came in below expectations, pressured by €116m in social charges, higher payroll and related costs, and an unfavourable revenue mix. Guidance for the current quarter likewise fell short of Wall Street estimates and "incorporates €25m in social charges based on a Q2 close share price of $767.30," the company noted. Read more on Yahoo Finance Car giant Stellantis warns of €1.5bn tariff hit Stellantis (STLA), darling of the EU auto industry, warned on Tuesday that tariffs have meant a €300m hit for the April to June quarter, with the toll potentially rising a further €1.2bn for the final six months of the year. The prediction comes just days after the EU and US struck a notional trade deal — a pact that so far has little detail. The Vauxhall maker reported a 23% drop in shipments to its North American market in the first half of the year. Its share price lagged by mid-morning following the report. FTSE risers and fallers UK mortgage approvals head higher in June The Bank of England's latest data shows: The number of mortgage approvals on house purchases for June was 64,167, up 1.4% from 63,288 in May. There have been two consecutive months of growth. Approvals are up 5.6% when compared to the 60,761 seen in June 2024. "A second consecutive monthly increase in mortgage approvals, despite the challenges faced in the broader market, is an encouraging sign for the mortgage sector and demonstrates that the market is very much on the up following the brief lull caused by the recent stamp duty deadline," said Jonathan Samuels, CEO of specialist lender Octane Capital. "This momentum is further supported by recent regulatory changes, including adjustments to loan-to-income caps and, with affordability continuing to improve, we expect the positivity seen over the past nine months to persist.' AstraZeneca reminds market of its value Russ Mould, investment director at AJ Bell, said: Greggs faces up to challenging environment Shares were down by 3% as Greggs (GRG.L) reported a 14% drop in pre-tax profit for the first half of the year, as winter storms and summer heatwaves kept customers away from its high street shops, adding to an already challenging consumer environment. The bakery chain, known for its sausage rolls and steak bakes, said profits fell to £63.5m in the six months to the end of June, down from £74.1m a year earlier. While total sales rose 7% to £1.03bn, the increase was not enough to offset a decline in margins and footfall. Company-managed shop like-for-like sales rose 2.6%, while franchised locations grew 4.8%. Greggs, which operates more than 2,600 stores across the UK, said the decline in profits 'reflected challenging market footfall and the phasing of cost headwinds that have particularly impacted the first half of the year.' 'These challenges were compounded by heavy snow and strong winds in January and unusually hot weather in June, which had a material impact on consumer behaviour and lowered like-for-like sales,' the company said. More than 200 shops in Scotland and Wales were temporarily closed during Storm Éowyn in late January, when a rare red warning was issued due to hurricane-force winds, heavy rain, and snow. Cost inflation was also a factor, with overall cost pressures running at 5.4% in the first half. Full-year cost inflation is expected to be around 6%. Greggs spent £3m on expanding manufacturing, logistics, and technology capabilities, and completed 108 shop refurbishments, up from 81 a year earlier. Chief executive Roisin Currie described the first half as a 'challenging market' with weak consumer confidence. 'People are saving, not spending,' she said. The interim dividend was held steady at 19p. While full-year sales are expected to remain resilient, profits are forecast to come in 'modestly below the level achieved in 2024.' Mark Crouch, market analyst at eToro, said: 'Greggs' 14% drop in first-half profit caps a bitter 10 months for the UKs favourite baker. "Management blames hot weather for weaker sales, but that doesn't account for a 50% collapse in market value. The more plausible culprit is the timing of Greggs expansion strategy, stretching margins, just as the consumer picture turns more fragile. 'Greggs has long been a reliable read on the UK high street. Its sudden stumble suggests consumers may not just be cooling on sausage rolls, but that appetite across the high street may be waning more broadly. "With inflation easing and real wages recovering, the macro backdrop should, in theory, be supportive. That it isn't showing up in Greggs' numbers, is a red flag. 'Greggs' brand still holds a strong place in the market, but scale isn't helping if margins and volumes can't keep up. The pressure is now squarely on management to regain the initiative, and not just blame it on the weather.' Read more on Yahoo Finance UK Tea and meat feed UK food price increases Yahoo Finance UK's Pedro Goncalves writes: UK families are paying more every time they go grocery shopping, as food price inflation surged for the sixth consecutive month in July, driven by a rise in the costs of meat and tea, according to the British Retail Consortium (BRC). The figures show that food prices are now 4% higher than a year ago, up from 3.7% in June and surpassing the three-month average of 3.5%. Fresh food inflation remained steady at 3.2%, while ambient food prices saw a more significant jump, climbing to 5.1% compared to last June, up from 4.3% the previous month. Overall, shop price inflation also increased, rising to 0.7% in July, up from 0.4% in June, and above the three-month average of 0.3%. Helen Dickinson, chief executive of the BRC, warned that the increase in food price inflation will be felt by households across the country. 'Families will have seen their food bills increase as food price inflation rose for the sixth consecutive month," she said. "Staples such as meat and tea were hit the hardest as wholesale prices for both categories have been hit by tighter global supplies. This has helped push up overall shop prices." Read more on Yahoo Finance UK Average rent surges to £2,712 in London and £1,365 across UK The cost of rent in London has climbed for a 15th consecutive quarter to hit a record high of £2,712 per month, while tenants across the rest of the UK are paying on average £1,365. The data from property site Rightmove (RMV.L) showed that new tenants are now paying an average of £417 more in monthly rent compared to 2020. This is a 44% increase in rents, well above the 36% rise in average earnings over the same period. Rightmove's property expert Colleen Babcock said: 'Despite another new record in average asking rents for tenants, the big picture is that yearly rent increases continue to slow, which is good news for tenants." "Supply and demand is slowly rebalancing towards more normal levels, though we still have a way to go before we reach pre-2020 levels of available homes for tenants. The good news is that the latest industry snapshot suggests more investors are taking out buy-to-let loans compared with last year, which should help to bring even more homes to the rental market.' Read more on Yahoo Finance UK How Barclays shares are faring in early trade Barclays announces £1bn buyback Yahoo Finance UK's Vicky McKeever writes: Barclays (BARC.L) beat profit expectations in the second quarter and announced a further £1bn in share buybacks. Pre-tax profit rose 28% in the second quarter to £2.84bn, results released on Tuesday showed. That exceeded expectations of £2.24bn, according to consensus estimates provided by the bank. For the first half, profit before tax totalled £5.2bn, which was up 23% from the same period last year. Total income was up 14% in the second quarter at £7.19bn, which was also ahead of expectations of £7.01bn. Group net interest income — the gap between what the bank pays out to savers and receives from borrowers in interest — excluding Barclays Investment Bank and head office, came in at £3.1bn, up 13% year-on-year. Barclays also recorded a return on tangible equity — a key measure of profitability — of 12.3% in the second quarter, up from 9.9% for the same period in 2024. Read more on Yahoo Finance UK US stock futures higher ahead of Fed and earnings Our US team writes: US stock futures made gains as Wall Street prepared for fresh earnings and economic data amid a blockbuster week poised to shake markets. Futures attached to the Dow Jones Industrial Average (YM=F) and the benchmark S&P 500 (ES=F) gained 0.2%. While contracts on the Nasdaq 100 (NQ=F) ticked up 0.3%. On Monday, the S&P 500 and Nasdaq eked out record highs amid an otherwise subdued trading session as Wall Street digested a new trade deal between the US and EU. Good morning! Hello from London. Lucy Harley-McKeown here — ready to bring you the business and markets news of the day. We kicked off the week with an EU-US trade deal. There will no doubt be more details on that to come. In central bank news, the US's Federal Reserve kicks of a two-day meeting about rates today. Traders are also readying themselves for a week of earnings. This morning in London: Barclays' (BARC.L) second quarter report In the US we're looking out for: Visa (V), Procter & Gamble (PG), United Health (UNH), Boeing (BA), Spotify (SPOT), Starbuck's (SBUX), among others. Let's get to it. That's it from me! Thanks for reading. Head over to our US site for more market moving news. Thanks for reading. Head over to our US site for more market moving news. US jobs numbers show decrease in hiring New data from the Bureau of Labor Statistics showed 7.44 million jobs open at the end of June, a decrease from the 7.71 million seen the month prior. May's report had shown the highest number of job openings since November 2024. The Job Openings and Labor Turnover Survey (JOLTS) also showed that 5.2 million hires were made in June, down from the 5.47 million made during May. The hiring rate ticked lower to 3.3% from the 3.4% seen the month prior and stood at its lowest level since November 2024. In one sign that workers remain cautious about labor market conditions, the quits rate, a sign of confidence among workers, hovered at 2%. Both the hiring and quits rates are hovering near decade lows, reflecting what economists have described as a labor market in "stasis." New data from the Bureau of Labor Statistics showed 7.44 million jobs open at the end of June, a decrease from the 7.71 million seen the month prior. May's report had shown the highest number of job openings since November 2024. The Job Openings and Labor Turnover Survey (JOLTS) also showed that 5.2 million hires were made in June, down from the 5.47 million made during May. The hiring rate ticked lower to 3.3% from the 3.4% seen the month prior and stood at its lowest level since November 2024. In one sign that workers remain cautious about labor market conditions, the quits rate, a sign of confidence among workers, hovered at 2%. Both the hiring and quits rates are hovering near decade lows, reflecting what economists have described as a labor market in "stasis." Oil higher for a second day Chris Beauchamp, chief market analyst at online trading platform IG, said: Chris Beauchamp, chief market analyst at online trading platform IG, said: Chancellor and BoE governor clash over Revolut licence meeting: FT The governor of the Bank of England has reportedly blocked a meeting planned by Chancellor Rachel Reeves to address the regulation of Revolut, in a sign of potential friction between the Government and the central bank. The Chancellor had sought to set up a three-way meeting for Treasury officials, the fintech business and the Bank of England's Prudential Regulation Authority, with regulates UK banks. It is understood the Chancellor is pushing for Revolut to be fully authorised as a bank as soon as possible, after receiving initial approval last year. However, the Financial Times reported the meeting was scrapped by Governor Andrew Bailey due to concerns of political interference in the central bank's oversight process. The incident, which took place in recent weeks according to the publication, contributes to speculation of a growing rift between the Treasury and regulators. Ms Reeves is currently pushing forward with reforms designed to loosen the rules on financial firms, in a move which will increase risk-taking in the sector. The 'Leeds reforms', unveiled in the West Yorkshire city earlier this month, are set to be the biggest set of changes to financial services for more than a decade, according to the Government. Labour is hoping that cutting red tape in the financial services sector and other industries can help accelerate growth in the economy. In her annual Mansion House speech to the financial services sector earlier this month, she urged regulators to resist 'excessive caution'. She added: 'In too many areas, regulation still acts as a boot on the neck of businesses, choking off the enterprise and innovation that is the lifeblood of growth.' Shortly after the meeting, Mr Bailey said 'I don't use those terms' when asked about Ms Reeves's remarks on regulation. He also said: 'We cannot compromise on basic financial stability, that would be my overall message.' Last year Revolut was approved for a UK banking licence after a lengthy process with regulators, however its banking division still has a limit on deposits it can receive until it receives full approval from regulators. The Bank of England declined to comment. The Treasury has been contacted for comment. The governor of the Bank of England has reportedly blocked a meeting planned by Chancellor Rachel Reeves to address the regulation of Revolut, in a sign of potential friction between the Government and the central bank. The Chancellor had sought to set up a three-way meeting for Treasury officials, the fintech business and the Bank of England's Prudential Regulation Authority, with regulates UK banks. It is understood the Chancellor is pushing for Revolut to be fully authorised as a bank as soon as possible, after receiving initial approval last year. However, the Financial Times reported the meeting was scrapped by Governor Andrew Bailey due to concerns of political interference in the central bank's oversight process. The incident, which took place in recent weeks according to the publication, contributes to speculation of a growing rift between the Treasury and regulators. Ms Reeves is currently pushing forward with reforms designed to loosen the rules on financial firms, in a move which will increase risk-taking in the sector. The 'Leeds reforms', unveiled in the West Yorkshire city earlier this month, are set to be the biggest set of changes to financial services for more than a decade, according to the Government. Labour is hoping that cutting red tape in the financial services sector and other industries can help accelerate growth in the economy. In her annual Mansion House speech to the financial services sector earlier this month, she urged regulators to resist 'excessive caution'. She added: 'In too many areas, regulation still acts as a boot on the neck of businesses, choking off the enterprise and innovation that is the lifeblood of growth.' Shortly after the meeting, Mr Bailey said 'I don't use those terms' when asked about Ms Reeves's remarks on regulation. He also said: 'We cannot compromise on basic financial stability, that would be my overall message.' Last year Revolut was approved for a UK banking licence after a lengthy process with regulators, however its banking division still has a limit on deposits it can receive until it receives full approval from regulators. The Bank of England declined to comment. The Treasury has been contacted for comment. Rachel Reeves' comment on the latest IMF figures The Chancellor said: The Chancellor said: Trump's trade war hasn't harmed global growth outlook yet, says IMF Global growth has so far been relatively unscathed by the US's ongoing tariff spats, according to the International Monetary Fund (IMF), with growth of 3% projected in 2025 and 3.1% in 2026. This is higher than the respective 2.8% and 3% forecast in the previous report in April. The latest World Economic Outlook noted the pause on tariffs and a de-escalation of trade tensions between the US and China as factors, which have helped improve growth forecasts. "Despite these welcome developments, tariffs remain historically high, and global policy remains highly uncertain, with only a few countries having reached fully fleshed-out trade agreements," IMF chief economist Pierre-Olivier Gourinchas said in a speech in Washington that accompanied the report's release. Output projections could be cut by 0.3% for 2026 if tariffs are reset at higher levels on the August 1 deadline given by Trump, Gourinchas added. Read more on Yahoo Finance UK Global growth has so far been relatively unscathed by the US's ongoing tariff spats, according to the International Monetary Fund (IMF), with growth of 3% projected in 2025 and 3.1% in 2026. This is higher than the respective 2.8% and 3% forecast in the previous report in April. The latest World Economic Outlook noted the pause on tariffs and a de-escalation of trade tensions between the US and China as factors, which have helped improve growth forecasts. "Despite these welcome developments, tariffs remain historically high, and global policy remains highly uncertain, with only a few countries having reached fully fleshed-out trade agreements," IMF chief economist Pierre-Olivier Gourinchas said in a speech in Washington that accompanied the report's release. Output projections could be cut by 0.3% for 2026 if tariffs are reset at higher levels on the August 1 deadline given by Trump, Gourinchas added. Read more on Yahoo Finance UK How US stocks are faring at the opening bell United Health reports mixed second quarter UnitedHealth Group (UNH) reported second quarter earnings on Tuesday beating Wall Street's expectations on the top line by a small margin, and missing on the bottom line. But its earnings continue a trend of higher-than-expected costs in the industry this quarter. The company reported revenues of $111.6bn, compared to Wall Street forecasts of $111.53bn, and adjusted earnings per share (EPS) of $4.08, compared to $4.59 expected by the Street. The revenues are up nearly $13bn compared to the second quarter in 2024. But margins have shrunk, from 4.3% in 2024 to 3.1% this quarter. The company also updated its guidance for the full year, after pulling it last quarter. It now expects revenues between $445.5bn to $448.0bn, and adjust earnings of at least $16 per share. UnitedHealth's stock fell more than 3% in premarket trading on Tuesday after the report. Read more on Yahoo Finance UnitedHealth Group (UNH) reported second quarter earnings on Tuesday beating Wall Street's expectations on the top line by a small margin, and missing on the bottom line. But its earnings continue a trend of higher-than-expected costs in the industry this quarter. The company reported revenues of $111.6bn, compared to Wall Street forecasts of $111.53bn, and adjusted earnings per share (EPS) of $4.08, compared to $4.59 expected by the Street. The revenues are up nearly $13bn compared to the second quarter in 2024. But margins have shrunk, from 4.3% in 2024 to 3.1% this quarter. The company also updated its guidance for the full year, after pulling it last quarter. It now expects revenues between $445.5bn to $448.0bn, and adjust earnings of at least $16 per share. UnitedHealth's stock fell more than 3% in premarket trading on Tuesday after the report. Read more on Yahoo Finance Spotify stock slides in premarket following earnings Our US team writes: Spotify (SPOT) shares fell as much as 10% in early premarket trading Tuesday after the company missed second quarter earnings and revenue expectations. The results follow a remarkable 120% rally over the past year, as the stock rebounded from 2022 lows on the back of price hikes, cost cuts, and investor enthusiasm for AI and advertising. Spotify hit a record high of $738.45 earlier this month, but shares slid to around $635 immediately following the results. Spotify reported second quarter revenue of €4.19bn ($4.86bn), missing analyst expectations of €4.27bn, though up from €3.81bn in the same period last year. The company posted an adjusted loss of €0.42 ($0.49) per share, sharply missing forecasts for a profit of €1.97 and down from earnings of €1.33 in Q2 2024. "Outsized currency movements during the quarter impacted reported revenue by €104m vs guidance," the company said in the earnings release. Operating income also came in below expectations, pressured by €116m in social charges, higher payroll and related costs, and an unfavourable revenue mix. Guidance for the current quarter likewise fell short of Wall Street estimates and "incorporates €25m in social charges based on a Q2 close share price of $767.30," the company noted. Read more on Yahoo Finance Our US team writes: Spotify (SPOT) shares fell as much as 10% in early premarket trading Tuesday after the company missed second quarter earnings and revenue expectations. The results follow a remarkable 120% rally over the past year, as the stock rebounded from 2022 lows on the back of price hikes, cost cuts, and investor enthusiasm for AI and advertising. Spotify hit a record high of $738.45 earlier this month, but shares slid to around $635 immediately following the results. Spotify reported second quarter revenue of €4.19bn ($4.86bn), missing analyst expectations of €4.27bn, though up from €3.81bn in the same period last year. The company posted an adjusted loss of €0.42 ($0.49) per share, sharply missing forecasts for a profit of €1.97 and down from earnings of €1.33 in Q2 2024. "Outsized currency movements during the quarter impacted reported revenue by €104m vs guidance," the company said in the earnings release. Operating income also came in below expectations, pressured by €116m in social charges, higher payroll and related costs, and an unfavourable revenue mix. Guidance for the current quarter likewise fell short of Wall Street estimates and "incorporates €25m in social charges based on a Q2 close share price of $767.30," the company noted. Read more on Yahoo Finance Car giant Stellantis warns of €1.5bn tariff hit Stellantis (STLA), darling of the EU auto industry, warned on Tuesday that tariffs have meant a €300m hit for the April to June quarter, with the toll potentially rising a further €1.2bn for the final six months of the year. The prediction comes just days after the EU and US struck a notional trade deal — a pact that so far has little detail. The Vauxhall maker reported a 23% drop in shipments to its North American market in the first half of the year. Its share price lagged by mid-morning following the report. Stellantis (STLA), darling of the EU auto industry, warned on Tuesday that tariffs have meant a €300m hit for the April to June quarter, with the toll potentially rising a further €1.2bn for the final six months of the year. The prediction comes just days after the EU and US struck a notional trade deal — a pact that so far has little detail. The Vauxhall maker reported a 23% drop in shipments to its North American market in the first half of the year. Its share price lagged by mid-morning following the report. FTSE risers and fallers UK mortgage approvals head higher in June The Bank of England's latest data shows: The number of mortgage approvals on house purchases for June was 64,167, up 1.4% from 63,288 in May. There have been two consecutive months of growth. Approvals are up 5.6% when compared to the 60,761 seen in June 2024. "A second consecutive monthly increase in mortgage approvals, despite the challenges faced in the broader market, is an encouraging sign for the mortgage sector and demonstrates that the market is very much on the up following the brief lull caused by the recent stamp duty deadline," said Jonathan Samuels, CEO of specialist lender Octane Capital. "This momentum is further supported by recent regulatory changes, including adjustments to loan-to-income caps and, with affordability continuing to improve, we expect the positivity seen over the past nine months to persist.' The Bank of England's latest data shows: The number of mortgage approvals on house purchases for June was 64,167, up 1.4% from 63,288 in May. There have been two consecutive months of growth. Approvals are up 5.6% when compared to the 60,761 seen in June 2024. "A second consecutive monthly increase in mortgage approvals, despite the challenges faced in the broader market, is an encouraging sign for the mortgage sector and demonstrates that the market is very much on the up following the brief lull caused by the recent stamp duty deadline," said Jonathan Samuels, CEO of specialist lender Octane Capital. "This momentum is further supported by recent regulatory changes, including adjustments to loan-to-income caps and, with affordability continuing to improve, we expect the positivity seen over the past nine months to persist.' AstraZeneca reminds market of its value Russ Mould, investment director at AJ Bell, said: Russ Mould, investment director at AJ Bell, said: Greggs faces up to challenging environment Shares were down by 3% as Greggs (GRG.L) reported a 14% drop in pre-tax profit for the first half of the year, as winter storms and summer heatwaves kept customers away from its high street shops, adding to an already challenging consumer environment. The bakery chain, known for its sausage rolls and steak bakes, said profits fell to £63.5m in the six months to the end of June, down from £74.1m a year earlier. While total sales rose 7% to £1.03bn, the increase was not enough to offset a decline in margins and footfall. Company-managed shop like-for-like sales rose 2.6%, while franchised locations grew 4.8%. Greggs, which operates more than 2,600 stores across the UK, said the decline in profits 'reflected challenging market footfall and the phasing of cost headwinds that have particularly impacted the first half of the year.' 'These challenges were compounded by heavy snow and strong winds in January and unusually hot weather in June, which had a material impact on consumer behaviour and lowered like-for-like sales,' the company said. More than 200 shops in Scotland and Wales were temporarily closed during Storm Éowyn in late January, when a rare red warning was issued due to hurricane-force winds, heavy rain, and snow. Cost inflation was also a factor, with overall cost pressures running at 5.4% in the first half. Full-year cost inflation is expected to be around 6%. Greggs spent £3m on expanding manufacturing, logistics, and technology capabilities, and completed 108 shop refurbishments, up from 81 a year earlier. Chief executive Roisin Currie described the first half as a 'challenging market' with weak consumer confidence. 'People are saving, not spending,' she said. The interim dividend was held steady at 19p. While full-year sales are expected to remain resilient, profits are forecast to come in 'modestly below the level achieved in 2024.' Mark Crouch, market analyst at eToro, said: 'Greggs' 14% drop in first-half profit caps a bitter 10 months for the UKs favourite baker. "Management blames hot weather for weaker sales, but that doesn't account for a 50% collapse in market value. The more plausible culprit is the timing of Greggs expansion strategy, stretching margins, just as the consumer picture turns more fragile. 'Greggs has long been a reliable read on the UK high street. Its sudden stumble suggests consumers may not just be cooling on sausage rolls, but that appetite across the high street may be waning more broadly. "With inflation easing and real wages recovering, the macro backdrop should, in theory, be supportive. That it isn't showing up in Greggs' numbers, is a red flag. 'Greggs' brand still holds a strong place in the market, but scale isn't helping if margins and volumes can't keep up. The pressure is now squarely on management to regain the initiative, and not just blame it on the weather.' Read more on Yahoo Finance UK Shares were down by 3% as Greggs (GRG.L) reported a 14% drop in pre-tax profit for the first half of the year, as winter storms and summer heatwaves kept customers away from its high street shops, adding to an already challenging consumer environment. The bakery chain, known for its sausage rolls and steak bakes, said profits fell to £63.5m in the six months to the end of June, down from £74.1m a year earlier. While total sales rose 7% to £1.03bn, the increase was not enough to offset a decline in margins and footfall. Company-managed shop like-for-like sales rose 2.6%, while franchised locations grew 4.8%. Greggs, which operates more than 2,600 stores across the UK, said the decline in profits 'reflected challenging market footfall and the phasing of cost headwinds that have particularly impacted the first half of the year.' 'These challenges were compounded by heavy snow and strong winds in January and unusually hot weather in June, which had a material impact on consumer behaviour and lowered like-for-like sales,' the company said. More than 200 shops in Scotland and Wales were temporarily closed during Storm Éowyn in late January, when a rare red warning was issued due to hurricane-force winds, heavy rain, and snow. Cost inflation was also a factor, with overall cost pressures running at 5.4% in the first half. Full-year cost inflation is expected to be around 6%. Greggs spent £3m on expanding manufacturing, logistics, and technology capabilities, and completed 108 shop refurbishments, up from 81 a year earlier. Chief executive Roisin Currie described the first half as a 'challenging market' with weak consumer confidence. 'People are saving, not spending,' she said. The interim dividend was held steady at 19p. While full-year sales are expected to remain resilient, profits are forecast to come in 'modestly below the level achieved in 2024.' Mark Crouch, market analyst at eToro, said: 'Greggs' 14% drop in first-half profit caps a bitter 10 months for the UKs favourite baker. "Management blames hot weather for weaker sales, but that doesn't account for a 50% collapse in market value. The more plausible culprit is the timing of Greggs expansion strategy, stretching margins, just as the consumer picture turns more fragile. 'Greggs has long been a reliable read on the UK high street. Its sudden stumble suggests consumers may not just be cooling on sausage rolls, but that appetite across the high street may be waning more broadly. "With inflation easing and real wages recovering, the macro backdrop should, in theory, be supportive. That it isn't showing up in Greggs' numbers, is a red flag. 'Greggs' brand still holds a strong place in the market, but scale isn't helping if margins and volumes can't keep up. The pressure is now squarely on management to regain the initiative, and not just blame it on the weather.' Read more on Yahoo Finance UK Tea and meat feed UK food price increases Yahoo Finance UK's Pedro Goncalves writes: UK families are paying more every time they go grocery shopping, as food price inflation surged for the sixth consecutive month in July, driven by a rise in the costs of meat and tea, according to the British Retail Consortium (BRC). The figures show that food prices are now 4% higher than a year ago, up from 3.7% in June and surpassing the three-month average of 3.5%. Fresh food inflation remained steady at 3.2%, while ambient food prices saw a more significant jump, climbing to 5.1% compared to last June, up from 4.3% the previous month. Overall, shop price inflation also increased, rising to 0.7% in July, up from 0.4% in June, and above the three-month average of 0.3%. Helen Dickinson, chief executive of the BRC, warned that the increase in food price inflation will be felt by households across the country. 'Families will have seen their food bills increase as food price inflation rose for the sixth consecutive month," she said. "Staples such as meat and tea were hit the hardest as wholesale prices for both categories have been hit by tighter global supplies. This has helped push up overall shop prices." Read more on Yahoo Finance UK Yahoo Finance UK's Pedro Goncalves writes: UK families are paying more every time they go grocery shopping, as food price inflation surged for the sixth consecutive month in July, driven by a rise in the costs of meat and tea, according to the British Retail Consortium (BRC). The figures show that food prices are now 4% higher than a year ago, up from 3.7% in June and surpassing the three-month average of 3.5%. Fresh food inflation remained steady at 3.2%, while ambient food prices saw a more significant jump, climbing to 5.1% compared to last June, up from 4.3% the previous month. Overall, shop price inflation also increased, rising to 0.7% in July, up from 0.4% in June, and above the three-month average of 0.3%. Helen Dickinson, chief executive of the BRC, warned that the increase in food price inflation will be felt by households across the country. 'Families will have seen their food bills increase as food price inflation rose for the sixth consecutive month," she said. "Staples such as meat and tea were hit the hardest as wholesale prices for both categories have been hit by tighter global supplies. This has helped push up overall shop prices." Read more on Yahoo Finance UK Average rent surges to £2,712 in London and £1,365 across UK The cost of rent in London has climbed for a 15th consecutive quarter to hit a record high of £2,712 per month, while tenants across the rest of the UK are paying on average £1,365. The data from property site Rightmove (RMV.L) showed that new tenants are now paying an average of £417 more in monthly rent compared to 2020. This is a 44% increase in rents, well above the 36% rise in average earnings over the same period. Rightmove's property expert Colleen Babcock said: 'Despite another new record in average asking rents for tenants, the big picture is that yearly rent increases continue to slow, which is good news for tenants." "Supply and demand is slowly rebalancing towards more normal levels, though we still have a way to go before we reach pre-2020 levels of available homes for tenants. The good news is that the latest industry snapshot suggests more investors are taking out buy-to-let loans compared with last year, which should help to bring even more homes to the rental market.' Read more on Yahoo Finance UK The cost of rent in London has climbed for a 15th consecutive quarter to hit a record high of £2,712 per month, while tenants across the rest of the UK are paying on average £1,365. The data from property site Rightmove (RMV.L) showed that new tenants are now paying an average of £417 more in monthly rent compared to 2020. This is a 44% increase in rents, well above the 36% rise in average earnings over the same period. Rightmove's property expert Colleen Babcock said: 'Despite another new record in average asking rents for tenants, the big picture is that yearly rent increases continue to slow, which is good news for tenants." "Supply and demand is slowly rebalancing towards more normal levels, though we still have a way to go before we reach pre-2020 levels of available homes for tenants. The good news is that the latest industry snapshot suggests more investors are taking out buy-to-let loans compared with last year, which should help to bring even more homes to the rental market.' Read more on Yahoo Finance UK How Barclays shares are faring in early trade Barclays announces £1bn buyback Yahoo Finance UK's Vicky McKeever writes: Barclays (BARC.L) beat profit expectations in the second quarter and announced a further £1bn in share buybacks. Pre-tax profit rose 28% in the second quarter to £2.84bn, results released on Tuesday showed. That exceeded expectations of £2.24bn, according to consensus estimates provided by the bank. For the first half, profit before tax totalled £5.2bn, which was up 23% from the same period last year. Total income was up 14% in the second quarter at £7.19bn, which was also ahead of expectations of £7.01bn. Group net interest income — the gap between what the bank pays out to savers and receives from borrowers in interest — excluding Barclays Investment Bank and head office, came in at £3.1bn, up 13% year-on-year. Barclays also recorded a return on tangible equity — a key measure of profitability — of 12.3% in the second quarter, up from 9.9% for the same period in 2024. Read more on Yahoo Finance UK Yahoo Finance UK's Vicky McKeever writes: Barclays (BARC.L) beat profit expectations in the second quarter and announced a further £1bn in share buybacks. Pre-tax profit rose 28% in the second quarter to £2.84bn, results released on Tuesday showed. That exceeded expectations of £2.24bn, according to consensus estimates provided by the bank. For the first half, profit before tax totalled £5.2bn, which was up 23% from the same period last year. Total income was up 14% in the second quarter at £7.19bn, which was also ahead of expectations of £7.01bn. Group net interest income — the gap between what the bank pays out to savers and receives from borrowers in interest — excluding Barclays Investment Bank and head office, came in at £3.1bn, up 13% year-on-year. Barclays also recorded a return on tangible equity — a key measure of profitability — of 12.3% in the second quarter, up from 9.9% for the same period in 2024. Read more on Yahoo Finance UK US stock futures higher ahead of Fed and earnings Our US team writes: US stock futures made gains as Wall Street prepared for fresh earnings and economic data amid a blockbuster week poised to shake markets. Futures attached to the Dow Jones Industrial Average (YM=F) and the benchmark S&P 500 (ES=F) gained 0.2%. While contracts on the Nasdaq 100 (NQ=F) ticked up 0.3%. On Monday, the S&P 500 and Nasdaq eked out record highs amid an otherwise subdued trading session as Wall Street digested a new trade deal between the US and EU. Our US team writes: US stock futures made gains as Wall Street prepared for fresh earnings and economic data amid a blockbuster week poised to shake markets. Futures attached to the Dow Jones Industrial Average (YM=F) and the benchmark S&P 500 (ES=F) gained 0.2%. While contracts on the Nasdaq 100 (NQ=F) ticked up 0.3%. On Monday, the S&P 500 and Nasdaq eked out record highs amid an otherwise subdued trading session as Wall Street digested a new trade deal between the US and EU. Good morning! Hello from London. Lucy Harley-McKeown here — ready to bring you the business and markets news of the day. We kicked off the week with an EU-US trade deal. There will no doubt be more details on that to come. In central bank news, the US's Federal Reserve kicks of a two-day meeting about rates today. Traders are also readying themselves for a week of earnings. This morning in London: Barclays' (BARC.L) second quarter report In the US we're looking out for: Visa (V), Procter & Gamble (PG), United Health (UNH), Boeing (BA), Spotify (SPOT), Starbuck's (SBUX), among others. Let's get to it. Hello from London. Lucy Harley-McKeown here — ready to bring you the business and markets news of the day. We kicked off the week with an EU-US trade deal. There will no doubt be more details on that to come. In central bank news, the US's Federal Reserve kicks of a two-day meeting about rates today. Traders are also readying themselves for a week of earnings. This morning in London: Barclays' (BARC.L) second quarter report In the US we're looking out for: Visa (V), Procter & Gamble (PG), United Health (UNH), Boeing (BA), Spotify (SPOT), Starbuck's (SBUX), among others. Let's get to it.
Telegraph
7 hours ago
- Business
- Telegraph
Barclays boss warns Reeves against further tax rises
The boss of Barclays has warned Rachel Reeves against raising taxes for British businesses, saying it would risk hindering the UK's growth push. CS Venkatakrishnan warned the Chancellor on Tuesday that imposing more taxes on Britain's banks as well as key growth sectors such as pharmaceuticals and biotech could sabotage her efforts to boost the country's economy. Fears of a fresh bank tax have grown in recent months after a leaked memo this year from Angela Rayner, the Deputy Prime Minister, urged Ms Reeves to raise the rate of corporation tax paid by Britain's largest lender. But Mr Venkatakrishnan said squeezing the banks for more tax would backfire and damage the economy. 'If growth is the primary objective for the UK ... higher taxation of businesses is not a path towards that growth. Banks are among the bigger taxpayers in the country,' he said. 'Growth has been an important objective of the UK economy and we want good quality growth, which is fuelled by the important sectors of the economy. 'Banks are one of them and not the only one. There are many other important sectors – biotech, pharma, technology itself – and we want all of these sectors to prosper. And in our prosperity and in our growth lies the growth of the country.' Unsustainable public spending plans Mr Venkatakrishnan's comments follow warnings from Charlie Nunn, Lloyds Bank's chief executive, that Ms Reeves's growth ambitions 'wouldn't be consistent with tax rises'. The Office for Budget Responsibility's recent warning that the UK public spending plans are 'unsustainable' has fuelled speculation that Ms Reeves might announce new taxes on banks in her autumn Budget. Lenders already face several taxes, including standard corporation tax as well as the bank surcharge and the bank levy. According to UK Finance, the bank lobby group, lenders paid £10.8bn in corporation tax last year, and the average tax rate is the highest in the world. Mr Venkatakrishnan was speaking alongside half year results from Barclays, which showed 28pc rise in pre-tax profits to £2.5bn in the second quarter of 2025 as its trading business capitalised on volatility caused by Donald Trump's tariffs. Barclays announced the launch of a new £1bn share buyback scheme, in addition to a 3p per share dividend worth £400m. The shareholder payouts in the first half of 2025 were 21pc higher compared to the same period in 2024, when Barclays launched a £750m share buyback initiative and a 2.9p per share dividend. Barclays was also boosted by the £600m takeover of Tesco Bank it completed in October 2024, which helped it make £350m of cost cuts in the first half of 2025. Mr Venkatakrishnan added that Barclays' three-year transformation plan remains 'on track' to deliver 'structurally higher and more stable returns.' Barclays' transformation is set to see the bank cut costs by £2bn, including slashing thousands of jobs throughout the bank. The lender, which is the UK's second biggest bank, aims to return £10bn to shareholders across the three-year period.
Bloomberg
8 hours ago
- Business
- Bloomberg
New Frameworks for Hyperscalers Power the AI Demand
Tech companies needing to power AI data centers could help unlock as much as $350 billion in funding for new nuclear capacity by 2050 through power-purchase agreements, behind-the-meter contracts and strategic equity investments, helping lower financing risks. If reappointed as commission chair, David Wright will guide the Nuclear Regulatory Commission through a punishing workload that includes the review of several permit applications for nuclear reactors across the nation, as well as operating license applications. The Trump administration has sought to quadruple the US' nuclear energy capacity by 2050. Trump wants to boost domestic uranium mining and look into recycling nuclear fuel. In May, Trump issued an executive order calling on the NRC to process license applications faster while at the same time cutting its staff. Tom Keene and Paul Sweeney spoke with Nick Campanella, analyst at Barclays, on Bloomberg Surveillance. (Source: Bloomberg)
The Independent
8 hours ago
- Business
- The Independent
FTSE 100 climbs as earnings cascade brings cheer
The FTSE 100 made strong progress on Tuesday, boosted by results from AstraZeneca and Barclays, but it was a gloomy day for investors in Novo Nordisk. Russ Mould, of AJ Bell, said: 'It's a busy week for corporate earnings in the UK and US, and investors have plenty of news to digest. The latest set of UK results was generally well-received.' The FTSE 100 index closed up 54.88 points, 0.6%, at 9,136.32. The index had earlier traded as high as 9,163.24. The FTSE 250 closed 158.73 points lower, 0.7%, at 21,793.07, and the AIM All-Share closed down 7.27 points, 0.9%, at 765.75. In London, investors weighed a barrage of earnings with shares of AstraZeneca, Barclays, Games Workshop and Entain moving higher, although Croda International struggled. Games Workshop led the way, up 5.4%, as it said pre-tax profit jumped 29% to £262.8 million in the financial year that ended June 1 from £203 million a year ago. The Nottingham, England-based fantasy game figurine maker and retailer said revenue rose 17% to £617.5 million from £525.7 million. Reflecting the strong earnings, the total dividend was £5.20, up 24% from £4.20 the year before. AstraZeneca, the largest FTSE 100 constituent, rose 3.4%. The Cambridge, England-based pharmaceuticals company said pre-tax profit jumped 30% to 3.13 billion dollars in the second quarter of 2025 from 2.4 billion dollars a year prior, or by 34% at constant currency. Revenue rose 12% to 14.46 billion dollars in the quarter from 12.94 billion dollars a year ago, or by 11% at constant currency, ahead of Visible Alpha's consensus of 14.31 billion dollars. Sales were driven by double-digit growth in Oncology and BioPharmaceuticals, with increases across all major geographic regions. Entain climbed 0.8% as it raised guidance at its BetMGM joint venture, while Barclays advanced 2.5% after well-received results and despite a lack of a guidance hike. Bank of America said Barclays printed a 'good' set of results, with underlying profit around 11% above consensus, driven primarily by higher income (particularly non-interest income) and lower impairments. But Croda International was down 10%. The speciality chemicals maker posted improved revenue for the first half, though impairments limited its bottom line. Croda's pre-tax profit in the first half of 2025 fell 19% to £85.5 million from £106.1 million, despite revenue improving 4.9% to £855.8 million from £815.9 million. Adjusted pre-tax profit rose 8.4%, however, to £138 million from £127.3 million. Revenue fell slightly short of the company-compiled consensus of £857 million. It beat on profit, however, as the adjusted pre-tax profit consensus stood at £136.6 million. The upbeat mood spread to Europe. The CAC 40 in Paris rose 0.7%, while the DAX 40 in Frankfurt advanced 1%. However, Denmark's Novo Nordisk plunged 23% as it lowered full-year sales and profit guidance, citing weaker-than-expected uptake of key weight-loss and diabetes treatments in the US. Novo Nordisk lowered its 2025 sales growth guidance to between 8% and 14%, down from 13% to 21%. It now expects operating profit growth of 10% to 16%, reduced from a previous range of 16% to 24%. The company blamed slower-than-expected Wegovy uptake in the US obesity market, compounded by ongoing sales of compounded GLP-1s, a more competitive landscape for Ozempic in the US, and lower-than-expected Wegovy penetration in select international markets. Analysts at Jefferies said the 2025 outlook cut suggests high single-digit percentage underlying profit forecast downgrades. In New York on Tuesday, the Dow Jones Industrial Average was down 0.3%, the S&P 500 was 0.1% lower, as was the Nasdaq Composite. A report from the Conference Board showed a slight pickup in consumer confidence, albeit from low levels, while another release showed a larger-than-expected drop in job openings. On Wednesday, the Federal Reserve is widely expected to leave interest rates unchanged. According to the CME FedWatch Tool, it is near-certain that the Fed will maintain rates at the 4.25%-4.5% range this week. The Fed held in each of the first four meetings this year. Its last cut was in December, a 25 basis points trim to the federal funds rate range. A fifth successive hold is in the offing during the final meeting before a summer break. A 'wait and see' approach will likely be the message from chairman Jerome Powell at the subsequent press conference, analysts at Morgan Stanley predict. 'We think chair Powell will remain balanced, acknowledging both upside risks to inflation and the projections for rate cuts later this year,' Morgan Stanley analysts said. Attention will focus on any dissent in the ranks of the Federal Open Market Committee, where Governors Michelle Bowman and Christopher Waller may back a rate cut. Meanwhile, Chinese and US delegations met for their second day of trade negotiations in Stockholm, with both sides said to be aiming to extend a truce due to end in two weeks' time. Neither side has so far made public any information about what has gone on in the talks, which started on Monday. Joshua Mahony at Rostro said: 'There is an expectation that an extension to the tariff deadline with China will open a pathway for Xi Jinping and Donald Trump to meet in person, heightening hopes for an impending trade deal between the world's two largest economies.' The pound eased to 1.3337 dollars late on Tuesday afternoon in London, compared to 1.3403 dollars at the equities close on Monday. The euro traded at 1.1537 dollars, lower against 1.1620 dollars. Against the yen, the dollar was trading slightly lower at 148.38 yen compared to 148.45 yen. The yield on the US 10-year Treasury was at 4.35%, trimmed from 4.42%. The yield on the US 30-year Treasury was at 4.88% narrowed from 4.96%. On Wall Street, Merck was another drugs maker in the news with shares down 4.8% as it announced plans to save 3 billion dollars annually by the end of 2027, and tightened full-year guidance, as second quarter sales fell short of expectations. The Rahway, New Jersey-based pharmaceutical company said GAAP net income fell 19% to 4.43 billion dollars in the second quarter of 2025 from 5.46 billion dollars a year prior. Sales decreased 1.9% to 15.81 billion dollars from 16.11 billion dollars a year ago, missing LSEG consensus of 15.89 billion dollars. Sales of human papillomavirus drug, Gardasil, slumped 55% to 1.13 billion dollars due to lower demand in China. Brent oil was quoted higher at 70.74 dollars a barrel in London on Tuesday, up from 69.65 dollars late on Monday. Gold rose to 3,327.45 dollars an ounce against 3,314.26 dollars. The biggest risers on the FTSE 100 were Games Workshop, up 830p at 16,090p; AstraZeneca, up 368p at 11,158p; Endeavour Mining, up 66p at 2,332p; Barclays, up 10p at 371.2p; and Rolls-Royce, up 24.6p at 1,006p. The biggest fallers on the FTSE 100 were Croda International, down 301p at 2,598p; Rentokil Initial, down 12.9p at 348.1p; Glencore, down 10.8p at 305.9p; Unite Group, down 21.5p at 764.5p; and Whitbread, down 86p at 3,108p. Wednesday's local corporate calendar has half-year results from defence manufacturer BAE Systems, Asia-focused lender HSBC, pharmaceuticals firm GSK, miners Rio Tinto and Glencore and housebuilder Taylor Wimpey. The global economic calendar on Wednesday sees interest rate decisions in the US and Canada, and US economic growth figures.
Times
8 hours ago
- Business
- Times
Games Workshop profit jumps but warns of tariff hit
The business behind the Warhammer fantasy universe has reported a near-third jump in annual profit, although it warned of a possible £12 million hit from tariffs next year. Pre-tax profit at Games Workshop came in at £262.8 million, up 30 per cent from £203 million the year prior and well ahead of the £255 million it had guided for in May. Revenue rose 14.2 per cent to £565 million, up from £494 million. A record set of financial results continued the Nottingham-based business's stellar performance in recent years, which included elevation into the FTSE 100 last December. Shares in Games Workshop have skyrocketed in recent years amid huge demand for its miniature figurines and games, and its market cap now sits at more than £5 billion. • Market turmoil drives profit surge at Barclays However, the company did warn that tariffs could have an impact on its pre-tax profit figure for the 2025-26 financial year by about £12 million and reduce reported gross margins by 2 per cent. Games Workshop insisted it was 'business as usual', with little change to any operational plans as of today. Shares in Games Workshop, which have risen more than 50 per cent over the past year, gained 4.6 per cent to £159.60. There had also been some concern after the company announced in May it would be unlikely to repeat a record revenue haul from licenses in the new financial year, a warning that sent shares down about 3 per cent. Licensing revenue rose from £31 million to £52.5 million in the year ended June 1, while licensing operating profit rose to £49.5 million from £27 million. Games Workshop said its licensing performance had been a 'nice surprise,' although this would be 'difficult to match' next year given its Warhammer 40,000: Space Marine 2 game performed well above expectations. Kevin Rountree, the chief executive, said: 'After a record year, we remain focused on delivering our operational plans and working tirelessly to overcome any significant obstacles that get in the way. 'We will continue to give ourselves the freedom to make some mistakes, constantly working on improvements in product quality and manufacturing innovation. Despite our recent successes we will never take our hobbyists' support for granted.' Founded in 1975 by three friends, John Peake, Ian Livingstone and Steve Jackson, Games Workshop employs around 1,500 people at its Nottingham hub, with 134 stores in the UK and more globally. It floated on the London Stock Exchange in 1994.
