FTSE 100 Live Wednesday
- Persimmon backs 2025 targets
- Shoe Zone halves profit forecast
- TUI earnings surge to Q3 record
Market update: FTSE 100 higher, Persimmon and Beazley fall on results
10:10 , Graeme EvansA record Wall Street close and the support of AstraZeneca and BAE Systems today helped the FTSE 100 index edge nearer its own all-time high.
London’s top flight rose by 0.2% or 16.34 points to 9164.15, which compares with July’s intraday peak of 9190.73 and last Wednesday’s record close of 9164.31.
Sentiment benefited from yesterday’s reassuring US inflation release, which kept alive hopes for a September interest rate cut by the Federal Reserve.
The S&P 500 rose 1.1% to peak at 6,445 while the tech-focused Nasdaq Composite surged 1.4% to a new record. The Dow Jones Industrial Average closed up 1.1%, with futures trading indicating a positive start at today’s opening bell.
The mood was also positive elsewhere as the Nikkei 225 rose 1.3% to set a new record and the Hang Seng index surged 2.6%.
The FTSE 100’s most valuable stock led the way in London as AstraZeneca lifted 2% or 194p to 11,280p, placing it ahead of gains of 1% for GSK and BAE Systems.
On the fallers board, BP fell 6.1p to 417.95p and Diageo weakened 26p to 2036p.
The release of interim results left Persimmon 38.5p lower at 1097p, despite the housebuilder offering reassurance with its full-year guidance.
New home completions lifted 4% to 4605, keeping the company on track for its target of 11,000-11,500 in 2025. The current estimate for 2026 is 12,000 units, with operating margin progression similar to 2025.
However, the group said the outlook continued to be influenced by ongoing affordability constraints and increased industry-wide costs.
UBS said the half-year performance was slightly ahead of expectations but that early guidance on 2026 implied downside to consensus, albeit consistent with messaging from peers. The bank has a price target of 1540p.
Beazley fell 9% after the specialist insurer reduced its premium growth guidance for 2025 to low/mid single digits, reflecting signs of a more competitive market.
Growth in the first half was 2%, compared with 6.9% the year before. Beazley said this was “entirely consistent” with the nature of the insurance cycle: “It is both familiar and something we know how to manage well.”
Peel Hunt, which has a price target of 995p, said: “We had already been assuming slowing top-line growth in the medium term, but this seems to have been brought forward.
“Beazley’s strategic focus turns to cycle management and enhancing the underwriting platform whilst continuing to build up excess capital.”
In the FTSE 250 index, the confident outlook of Balfour Beatty in half-year results failed to prevent the shares from falling 20.5p to 548p.
The group, which has risen 25% in value this year, said an order book worth £19.5 billion underpinned its expectations of “further growth in 2026 and beyond”.
Balfour reported that half-year underlying profit from its earnings-based businesses rose by £7 million to £108 million.
Hill & Smith jumped 11% or 217p to 2185p after the infrastructure products business marked in-line half-year results with a £100 million buyback and 9% dividend hike.
TUI earnings jump, heatwave impacts summer bookings
08:49 , Graeme EvansTUI has reported record earnings of 321 million euros (£278 million) for the quarter to 30 June, up from 232 million euros (£201 million) a year earlier.
This was supported by a 56.2% jump in earnings from its cruise business, which was buoyed by the launch of two new ships and strong trading conditions.
The Germany-based tour operator said total underlying earnings are now on track to grow by between 9% and 11% this year. It previously forecast growth of between 7% and 10%.
Summer bookings are 2% lower in a “competitive market”, with the impact of the June and July heatwaves in source markets adding to later booking trends.
FTSE 100 nears record, Persimmon lower despite robust results
08:36 , Graeme EvansThe FTSE 100 index today neared its record of 9190.73, up 33.92 points to 9181.73 following gains of 1.5% for heavyweights AstraZeneca and BAE Systems.
Persimmon shares fell 16p to 1119.5p, despite the housebuilder reiterating guidance in full-year results.
RBC Capital Markets, which has a price target of 1375p, said all key operating metrics were moving in the right direction and that the results appeared to be “stronger and more robust” than peers who have already reported.
Other stocks under pressure included specialist insurer Beazley, which dropped 6% or 56p to 856p after cutting premium growth guidance in half-year results.
In the FTSE 250 index, Balfour Beatty shares slipped a penny to 567.5p despite reporting significant order book momentum in interim results.
Broker Peel Hunt lifted its price target to 625p in order to reflect the “medium-term visibility, margin momentum, capital allocation options and shareholder returns”.
Balfour Beatty upbeat as earnings rise
08:07 , Graeme EvansBalfour Beatty today said an improved order book worth £19.5 billion underpinned its expectations of “further growth in 2026 and beyond”.
The FTSE 250-listed group told investors in half-year results that the outlook across its four strategic growth markets of UK energy transition and security, UK transport, UK defence, and US buildings continued to strengthen.
Underlying profit from its earnings-based businesses rose by £7 million to £108 million in the first six months of the year, driven by “particularly strong growth” in UK construction and support services.
It reported a loss in US construction, where the cost of delays at one civil engineering project in Texas cancelled out a strong performance from the buildings business.
The £19.5 billion order book grew by 6%, with growth in each segment proving clear visibility in the short and medium term.
Chief executive Leon Quinn said: “Recent UK Government announcements confirm a deep pipeline of major infrastructure projects which closely align with the group's unique expert capabilities and will further enhance the quality of the future order book.”
Shoe Zone warns on profit after tough summer
07:44 , Graeme EvansFootwear retailer Shoe Zone today slashed annual profit guidance after its performance was hit by challenging conditions during June and July.
The group, which trades from more than 300 stores, now expects adjusted profits of about £2.5 million for the year to 27 September. This compares with a previous forecast of £5 million and last year’s result of £10 million.
It said the post-Budget weakening in consumer confidence has continued, with the impact of inflation, interest rates and higher savings rates also contributing to decreased footfall.
The company has withdrawn its current dividend policy.
It added: “Management remain confident with the underlying strategy, with the 200th new format store opening this month.
“The company remains debt free and confident in our cash management, with cash levels currently higher than the same period last year.”
Persimmon posts higher profit, flags affordability constraints
07:13 , Graeme EvansHousebuilder Persimmon today reported an improved half-year performance, with underlying profit 11% higher at £164.9 million.
New home completions lifted 4% to 4605, keeping the company on track for its target of 11,000-11,500 in 2025. The current estimate for 2026 is 12,000 units, with operating margin progression similar to 2025.
The group added that the pace of margin progress will be impacted by diminishing embedded build cost inflation, on-going affordability constraints and increased industry-wide costs.
Chief executive Dean Finch said: "I am pleased that we have continued to grow in the first half of the year despite challenging market conditions and with affordability still an important constraint.
“Our average sales price, sales, completions, planning approvals, active sites and forward order book are all up, many against industry trends, showing that our strategy including a focus on self-help has continued to deliver.”
FTSE 100 seen higher, Asia markets surge
07:02 , Graeme EvansWall Street benchmarks last night set fresh records after US inflation figures boosted hopes for a September interest rate cut by the Federal Reserve.
The S&P 500 index rose 1.1% to peak at 6,445.76 while the tech-led Nasdaq Composite surged 1.4% to a new record.The Dow Jones Industrial Average closed up 1.1%.
The unchanged headline CPI reading of 2.7% compared with expectations of 2.8%, although core inflation came in above forecast at 3.1%.
The release helped the FTSE 100 index to close 0.2% higher at 9147.81, with London’s top flight seen adding another 0.2% in today’s session.
Asia markets are also stronger this morning, with the Nikkei 225 deeper in record territory following a rise of 1.3% and the Hang Seng index up 2%.
