
FTSE 100 Live Thursday
- WPP profits slide
- Interest rate cut due
- House prices up in July
Market update: FTSE 100 stalls ahead of Bank update, IHG up 6%
10:13 , Graeme EvansA below par FTSE 100 index today faded from its record close amid the impact of interest rate jitters, ex-dividend trading and a mixed bag of earnings.
London’s top flight weakened 0.2% or 21.93 points to 9142.38, whereas the Dax in Frankfurt rose 0.7% and Wall Street futures pointed higher.
The global resilience came despite the imposition of higher US tariffs on dozens of economies and President Trump’s threat of 100% levies on semiconductor imports.
Tech valuations were instead boosted by Apple’s pledge to invest $100 billion in the US and the encouragement of recent forecast-beating corporate earnings.
The UK’s cautious mood came ahead of today’s release of updated Bank of England projections alongside an expected quarter point cut in interest rates to 4%.
There will be particular focus on the outlook for inflation, which at a forecast 4% by September could act as a potential brake on future interest rate cuts.
Big fallers in the FTSE 100 included heavyweights AstraZeneca, BT and NatWest after shares began trading without the right to their latest dividend awards.
Rolls-Royce, whose shares were also marked ex-dividend, fell 6.5p to 1081.5p despite a big upgrade in Deutsche Bank’s price target to 1220p.
Hikma Pharmaceuticals posted the biggest fall in the top flight, losing 133p to 1751p after an otherwise robust set of half-year results included weaker margins guidance in its injectables division.
WPP profits were down sharply as expected, having already highlighted the impact of pressure on client spending and a slower new business environment.
Investors were dealt a fresh setback, however, as the marketing and advertising group halved its interim dividend to 7.5p a share.
The cut boosted flexibility for incoming chief executive Cindy Rose but still sent shares to a fresh 16-year low - down 4% or 14.8p to 387.3p.
On the risers board, InterContinental Hotels rose 6% or 538p to 9218p after half-year operating profit of $623 million came in well ahead of City expectations. The interim dividend rose 10%.
Shares rallied even through revenue per available room – a key measure for the industry – pulled back sharply to 0.3% in the second quarter from 3.3% in the first.
Bank set to update GDP and inflation projections
09:09 , Graeme EvansThe Bank of England monetary policy committee (MPC) is set to publish its projections for GDP and inflation alongside today’s expected cut in interest rates to 4%.
City economists expect a downgrade to the Bank’s estimate for growth in the second quarter to just 0.1% but with medium-term projections largely unchanged.
The MPC is also likely to highlight expectations for a looser labour market in the near term, with wage growth projections also revised down.
Deutsche Bank said: “We don’t expect any major surprises around the Bank’s guidance. We see the MPC retaining its view of a ‘gradual and careful’ unwind of restrictive policy.”
It expects that the MPC’s CPI guidance will be revised higher, but will likely converge to 1.9% at the very end of the forecast horizon in 2028.
Deliveroo orders surge ahead of US takeover
08:33 , Graeme EvansDeliveroo has reported stronger levels of sales and customer orders for the first half of 2025.
The delivery giant nonetheless revealed it swung to a loss ahead of its planned takeover by US firm DoorDash.
Gross transaction value – an industry metric for the total value of transactions on platforms, including things like delivery costs – was £3.8 billion for the first six months of the year.
This was 9% higher than the same period a year ago, at constant currency rates, while GTV was 10% higher in the UK and Ireland.
The total number of orders across its global markets was 147 million – 8% higher than last year.
WPP and Hikma struggle in weaker FTSE 100, Rolls-Royce upgraded
08:27 , Graeme EvansWeaker trading by ex-dividend stocks including AstraZeneca, Barclays, BT and NatWest today weighed on the performance of the FTSE 100 index.
London’s top flight fell 0.3% or 27.41 points to 9136.90, with BT down 7.7p to 204.4p after its shares began trading without the right to its latest dividend award.
Rolls-Royce shares were also marked ex-dividend but the engines giant held firm at 1086.5p after Deutsche Bank lifted its price target by 22% to 1220p.
WPP shares fell 5% or 19.1p to 383.3p after announcing a big dividend cut alongside weaker half-year results.
Hikma Pharmaceuticals dropped 119.3p and 1764.7p and InterContinental Hotels rose by 5% or 454p to 9134p following their interim figures.
WPP slashes dividend as operating profit tumbles
07:45 , Graeme EvansMarketing and advertising group WPP today halved its interim dividend after reporting a sharp deterioration in its half-year performance.
The group said the cut to 7.5p a share created room for incoming chief executive Cindy Rose to review the group’s strategy and capital allocation policy.
Outgoing boss Mark Read said: “It has been a challenging first half given pressures on client spending and a slower new business environment.”
Today’s results met previously downgraded guidance, with half-year revenues down 7.8% to £6.7 billion and headline operating profit 36% lower at £412 million.
House prices up 2.4% in a year, Northern Ireland 9.3% higher
07:21 , Graeme EvansHouse prices rose by 0.4% or an average £1,080 in July, the biggest monthly increase recorded by lender Halifax since January.
The average house price is now £298,237, 2.4% higher than a year ago.
Northern Ireland continues to record the strongest annual price growth in the UK, up 9.3% over the past year to £214,832.
The South West and London and the South East continue to see moderate growth, with prices rising by 0.2% and 0.5% respectively.
Halifax head of mortgages Amanda Bryden said: ““Challenges remain for those looking to move up or onto the property ladder. But with mortgage rates continuing to ease and wages still rising, the picture on affordability is gradually improving.
“Combined with the more flexible affordability assessments now in place, the result is a housing market that continues to show resilience, with activity levels holding up well.
“We expect house prices to follow a steady path of modest gains through the rest of the year.”
Bank of England seen cutting interest rate
07:07 , Graeme EvansThe Bank of England’s monetary policy committee (MPC) is widely expected to cut interest rates by 0.25% to 4% at noon today.
The move would mark the fifth reduction since August last year, when rates started steadily coming down from a peak of 5.25%.
The anticipated cut comes against a backdrop of weak economic growth and a deteriorating labour market. Earnings growth has also cooled, although the MPC remains wary given that inflation is seen heading towards 4% later this year.
Economists forecast a three-way split on the vote, with two members backing a larger cut of half a percentage point and two others on the nine-strong MPC preferring no change.
FTSE 100 seen lower, US tech stocks rally
07:04 , Graeme EvansGlobal markets have held firm in the face of today’s higher US tariffs, with the Nikkei 225 and Hang Seng index both in positive territory this morning.
The FTSE 100 index is seen opening about 0.1% down on its record close of 9164.31, having risen by 21.58 points or 0.2% yesterday.
A strong session for the tech sector after Apple announced plans to invest $100 billion in the US helped the S&P 500 index close 0.7% higher last night.
Apple shares jumped 5%, a performance that helped Wall Street’s group of Magnificent Seven megacaps close at a record high.
The Nasdaq Composite lifted 1.2% and the Dow Jones Industrial Average rose by 0.2%.
Stocks benefited after President Trump said the US is “very close to a deal” to extend a China tariffs truce.
Meanwhile, dozens of economies including the EU and India are today facing higher US tariffs after Trump’s long-threatened “reciprocal” duties took effect.