FTSE 100 Live Tuesday
- IWG trims full-year guidance
- BHP profit falls, cuts divi
- ONS lifts GDP estimate
Market update: Defence stocks falter, JD Sports leads FTSE 100
10:04 , Graeme EvansA retreat for defence stocks today failed to prevent the FTSE 100 index edging higher amid a strong session for JD Sports Fashion and Marks & Spencer.
BAE Systems fell 48.5p to 1742p after it was reported that Ukraine is to buy $100 billion of American-made weapons in a move financed by Europe.
Other stocks from the European defence industry fell this morning, while London-listed Babcock International lost 41p to 1006p and Rolls-Royce eased 13p to 1069p.
The FTSE 100 index stood 17.21 points higher at 9174.95, reflecting hopes for a Ukraine peace deal and gains of between 1-2% for miners Rio Tinto, Glencore and Anglo American.
They were cheered by the annual results of BHP after the Australian mining giant announced a smaller-than-expected dividend cut alongside a 26% decline in annual underlying profit to $10.16 billion.
Revenue declined 8% to $51.3 billion as lower iron ore and coal prices in the year to 30 June offset record copper production volumes and increased steelmaking coal output.
A final dividend 18% lower at 60 US cents a share represents 60% of underlying profit and brings the total returned to shareholders since January 2020 to $59 billion.
Other risers came from the retail sector, with JD Sports Fashion up 5% or 4.3p to 92.1p after Deutsche Numis lifted its price target to 100p.
Marks & Spencer shares were also in demand, lifting 8.9p to trade at its highest level since early July at 355.5p.
Applied Nutrition lifts guidance, shares up 8%
09:29 , Graeme EvansApplied Nutrition shares today surged after the sports nutrition and health business revealed stronger-than-expected sales for the past year.
The 24% jump in revenues to around £107 million for the year to July 31, compared with previous guidance of around £100 million. It also bolstered the outlook for the new financial year.
The Liverpool-based group, which sells products in over 85 countries, joined the stock market last September. The shares are back above their 140p offer price after today’s rise of 8% or 9.9p to 141.1p.
UK economy bigger than previously estimated - ONS
09:07 , Graeme EvansThe UK economy is larger than previously thought after the Office for National Statistics updated the methods and sources used in its GDP figures.
While the size of the economy now captured by GDP has increased, the ONS said today that the long-term pattern of growth is broadly unchanged.
The updated estimates of GDP since 1997 and up until the end of 2023 took into account improved research & development data and changes to the way the ONS measures the activities of large multinational companies.
The revisions mean that the economy was 2.2% larger at the end of 2023 than its previous peak shortly before the coronavirus pandemic began.
The ONS had previously reported that the economy had grown by 1.9% over the period.
IWG trims full-year expectations, shares down 16%
08:50 , Graeme EvansThe shares of office and hybrid workspace group IWG today fell 16% after it said annual earnings are likely to be towards the lower end of its forecast range.
The guidance, which reflects investment in the group’s managed and franchise segment, came as IWG reported 2% growth in system-wide revenues to a record $2.2 billion (£1.6 billion) for the first six months of the year.
IWG operates under workspace brands including Regus, Spaces, and Signature.
It opened nearly 500 centres globally over the period, with the majority in local communities, suburbs and rural areas.
Operating profit of $68 million (£50.3 million) for the half year was unchanged from 2024. Shares fell 37.7p to 191.7p.
FTSE 100 edges higher, oil giants under pressure
08:23 , Graeme EvansThe FTSE 100 index has risen 6.41 points to 9164.15, with BP and Shell among those under pressure after the price of Brent Crude fell to just above $66 a barrel.
The oil giants dropped 1.3p to 418.15p and 9.5p to 2623.5p respectively, alongside falls of about 0.5% for BAE Systems, GSK and Berkeley Group.
On the risers board, JD Sports Fashion lifted 2.1p to 89.9p after Deutsche Numis improved its price target to 100p.
Barclays also rose 2.35p to 373.55p and Anglo American advanced 19p to 2150p.
The FTSE 250 index is up 21.85 points to 21,771.42.
FTSE 100 seen higher, Asia markets lower
07:16 , Graeme EvansWall Street benchmarks finished broadly unchanged last night, reflecting caution ahead of this week’s Walmart results and the Jackson Hole economic symposium.
Asia markets posted a similar performance, with the Nikkei 225 and Hang Seng index both slightly lower and the Shanghai Composite flat.
The FTSE 100 index is seen opening about 0.1% higher, having closed Monday’s session up by 0.2% or 18.84 points at 9157.74.
On the bond market, the 30-year gilt yield starts the day at its highest level in 27 years at 5.61%. The 10-year yield is the highest since May at 4.74%, reflecting diminishing hopes of another interest rate cut this year.
Inflation figures due tomorrow are expected to show a further increase in the annual rate of CPI to 3.7%.
BHP cuts dividend, reports record production
07:15 , Graeme EvansMining giant BHP today cut its final dividend by 18% to 60 US cents a share after reporting a 26% decline in annual underlying profit to $10.16 billion.
Revenue slipped 8% to $51.3 billion, primarily due to lower iron ore and coal prices in the year to 30 June.
The top-line decline came despite record copper and iron ore production volumes and increased steelmaking coal output.
The dividend represents 60% of underlying profit and brings the total returned to shareholders since January 2020 to $59 billion.
Chief executive Mike Henry said: “The 2025 financial year was another strong year for BHP, marked by record production, continued sector-leading margins and disciplined capital allocation.”
He added: “We remain confident in the long-term fundamentals of steelmaking materials, copper and fertilisers, which are critical to global growth, urbanisation and the energy transition.”
BHP’s Australian-listed shares rose 2% following the publication of the results.
FTSE 100 seen higher, Asia markets lower
06:59 , Graeme EvansWall Street benchmarks finished broadly unchanged last night, reflecting caution ahead of this week’s Walmart results and the Jackson Hole economic symposium.
Asia markets posted a similar performance, with the Nikkei 225 and Hang Seng index both slightly lower and the Shanghai Composite flat.
The FTSE 100 index is seen opening about 0.1% higher, having closed Monday’s session up by 0.2% or 18.84 points at 9157.74.
