FTSE 100 Live Wednesday
- WPP cuts profit outlook
- Builders pay £100m in CMA probe
- Jet2 later bookings continue
Market update: Tobacco giants drive FTSE 100, Jet2 falls 6% after results
10:00 , Graeme EvansA 16-year low for WPP shares and heavy selling of copper miners today failed to stop the FTSE 100 index edging closer to record territory.
London’s top flight lifted 23.09 points to 8877.27, which compares with the intraday record of 8908 set in March and last month’s all-time high close of 8884.92.
British American Tobacco led the FTSE 100 with a rise of 3% or 112p to 3640p and Imperial Brands added 43p to 2889p after City bank Jefferies backed the pair with Buy recommendations.
Among other stronger blue-chip stocks, Rolls-Royce put on another 11p to 977.4p and Barclays rose 3.85p to 338.5p.
The fallers board was led by WPP, which slumped by 16% to its lowest level since 2009 after the marketing and advertising group downgraded revenue and profit expectations for this year.
The group, whose brands include Ogilvy and Burson, has lost 45% of its value this year amid the twin challenges of declining spend during uncertain times and the rise of AI.
Chief executive Mark Read said: "Since the start of the year, we have faced a challenging trading environment with macro pressures intensifying and lower net new business.
“While we expected the second quarter to be similar to the first quarter, performance in June was worse than anticipated and we expect this pattern of trading in the first half to continue into the second half.”
Miners also unwound some of their recent gains after Donald Trump announced plans for 50% copper tariffs.
US-based COMEX copper futures yesterday surged as much as 15% to a record high level, whereas London Metal Exchange prices fell back.
UBS Global Wealth Management said: “While the 50% headline figure is high, metals traders and markets have anticipated US copper tariffs and have responded by building up US inventories in recent months.
“We think this stockpiling should help cushion the initial impact, but once tariffs take effect and lower-duty copper stockpiles are depleted, US buyers could face materially higher prices.”
Antofagasta fell 3% or 47p to 1872.5p, although the Chile-based firm is still 16% higher for the year. Glencore lost 6.3p to 300.1p, while Anglo American dropped 47p to 2178p.
Trump also mooted a 200% levy on pharmaceuticals but this development failed to make much of an impact on London-listed drugs stocks.
GSK fell 4.5p to 1409.5p and AstraZeneca eased 76p to 10,264p, which compares with Berenberg’s new and improved price target of 14,200p.
Analysts at the City bank said: “AstraZeneca has seen substantial pipeline progress already this year. In our view, the shares should factor in a larger pipeline valuation.”
The FTSE 250 index rose 33.44 points to 21,615.12, led by energy-focused engineering business Hunting.
Its shares jumped 12% or 35p to 335.5p after it reported a strong half year performance and said it planned to increase shareholder distributions.
Jet2, which is AIM’s largest stock with a market capitalisation of £3.8 billion, fell 6% or 108p to 1717p after publishing annual results.
Pre-tax profit rose 12% to £593.2 million but this was offset by continued late booking trends, which have reduced visibility for the current financial year. Peel Hunt reiterated its price target of 2,500p following the update.
Jet2 profits rise, later booking trends continue
09:00 , Graeme EvansAirline and package holidays business Jet2 today reported 12% growth in pre-tax profits to £593.2 million for the year to 31 March.
Revenues lifted 15% to £7.2 billion after the number of higher margin package holiday customers rose 8% to 6.58 million and flight-only passengers by 18% to 6.62 million.
The group said bookings for this summer 2025 continue to be made closer to departure.
Despite this trend, it said customers are still prepared to prioritise their holidays over other areas of discretionary spend as long as pricing is attractive.
The shares of AIM’s largest company fell 6% or 108.5p to 1716.5p, leaving them 11% higher for the year.
FTSE 100 higher despite mining weakness, WPP slides 14%
08:33 , Graeme EvansWPP shares are at their lowest level since 2009 after the marketing and advertising group downgraded profit guidance in an update today.
The latest decline of 14% or 73.8p to 453.8p means the shares have lost 45% of their value so far this year.
Other fallers came from the mining sector after Donald Trump announced plans for 50% copper tariffs. Antofagasta fell 3% or 60.5p to 1859p and Glencore lost 5.35p to 301.05p, while Anglo American dipped 31p to 2194p.
Trump also mooted a 200% levy on pharmaceuticals but this failed to make much of an impact on London-listed drugs stocks.
GSK fell 9.5p to 1404.5p, while AstraZeneca eased 66p to 10,278p after analysts at Berenberg lifted their price target to 14,200p.
They said: “AstraZeneca has seen substantial pipeline progress already this year. In our view, the shares should factor in a larger pipeline valuation.”
The FTSE 100 index rose 9.85 points to 8864.03, led by defensive stocks British American Tobacco and Imperial Brands after rises of about 2%.
Housebuilders pay £100m following CMA probe
07:51 , Graeme EvansSeven housebuilders are to pay a total of £100 million to affordable housing programmes as part of a package of commitments agreed with the Competition and Markets Authority (CMA).
The CMA launched an investigation last year following concerns that Barratt Redrow, Bellway, Berkeley Group, Bloor Homes, Persimmon, Taylor Wimpey and Vistry exchanged details about sales.
This included pricing, number of property viewings and incentives offered to buyers such as upgraded kitchens or stamp duty contributions.
The housebuilders have offered a package of commitments to address the CMA’s concerns, which it will now consult on until 24 July.
They have agreed to work with the Home Builders Federation and Homes for Scotland to develop industry-wide guidance on information sharing.
The firms will also not share certain types of information with other housebuilders, including the prices houses have been sold for, except in limited circumstances.
Persimmon is paying £15.2 million but said its decision to offer voluntary commitments did not constitute an admission of any wrongdoing.
Bellway, Vistry and Barratt Redrow issued similar statements to the stock market.
WPP cuts guidance after poor June trading
07:14 , Graeme EvansMarketing and advertising group WPP today cut full-year expectations after reporting a weaker-than-expected performance in the second quarter.
Chief executive Mark Read said: "Since the start of the year, we have faced a challenging trading environment with macro pressures intensifying and lower net new business.
“While we expected the second quarter to be similar to the first quarter, performance in June was worse than anticipated and we expect this pattern of trading in the first half to continue into the second half.”
The FTSE 100-listed company expects half-year revenue to be down by between 4.2% and 4.5%, including a decline of 5.5%-6% in the second quarter.
The headline operating profit margin for 2025 is now set to be between 50 and 175 basis points lower, which compares with April’s forecast of a flat performance.
FTSE 100 edges near record, Asia stocks mixed
07:01 , Graeme EvansThe FTSE 100 index is seen opening about 0.2% higher, having finished yesterday’s session about 30 points off last month’s record close.
Tuesday’s improvement of 0.5% to 8854.18 came as investors appeared to welcome US president Donald Trump’s new August 1 tariffs deadline.
On Wall Street, the Dow Jones Industrial Average fell 0.4%, the S&P 500 index lost 0.1% and the Nasdaq Composite was little changed.
Asia markets have posted a mixed performance, with the Nikkei 225 up 0.2% and the Hang Seng index down by 0.9%.
Meanwhile, copper prices hit a record in the US on Tuesday after President Trump announced plans for a 50% tariff on the metal, as well as a levy of 200% on pharmaceutical imports.
Hargreaves Lansdown head of equity research Derren Nathan said: “The President also said that semiconductor tariffs will be announced soon.
“But details of when, how and who remain thin on the ground. Confusion has become the new normal with Asian stocks showing little in the way of firm direction overnight.
“And despite the heavy weighting of pharmaceutical and mining companies on the FTSE 100, the index is expected to hold onto most of yesterday’s small gains at the open.”
