FTSE 100 Live Tuesday
- AstraZeneca unveils £50bn US plan
- Public borrowing tops forecast
- Compass upgrades guidance
Market update: Compass and Centrica rally in steady FTSE 100
10:09 , Graeme EvansDealmaking Centrica and Compass were the pick of London’s blue chips today as the FTSE 100 index held its position near to last night’s record close.
Centrica rose 4% or 6.9p to 163.5p as disclosure of its investment in the new Sizewell C nuclear power station ended weeks of uncertainty for investors.
The British Gas owner has committed £1.3 billion of construction funding and will hold a 15% stake alongside the UK government, La Caisse, EDF and Amber Infrastructure Group.
The Government has set the real allowed return on equity during the construction and initial operations phase at 10.8%, while Centrica will have a 20-year offtake agreement for its share of Sizewell C's production.
Today’s agreement forms part of Centrica's £4 billion green-focused investment programme and guidance through to the end of 2028.
It now has commitments worth £2.5 billion, of which around £1.7 billion is tied to assets with regulated or contracted earnings including Sizewell C.
Chief executive Chris O’Shea said: “This isn't just an investment in a new power station - it's an investment in Britain's energy independence, our net zero journey, and thousands of high-quality jobs across the country.”
Compass rose 5% or 132p to 2656p after the catering giant unveiled a major acquisition alongside an upgrade to full-year guidance.
The £1.3 billion deal for Vermaat adds the market leader in the Netherlands as well as a stronger presence in key markets of Germany and France.
Compass also expects underlying operating profit growth to be towards 11%, driven by organic revenue growth above 8% and ongoing margin progression.
The FTSE 100 index stood 3.80 points below last night’s record close of 9013, representing a resilient performance given heavier losses in Paris and Frankfurt.
Mining stocks continued to offer support after Glencore rose another 7.25p to 320p and Rio Tinto improved 58.5p to 4668.5p.
On the fallers board, AstraZeneca lost 8p to 10,224p after announcing its plan to invest $50 billion in the United States.
In the FTSE 250, Greencore jumped 10% or 25p to 266p as the supermarket sandwiches and ready meals supplier said 2025 adjusted operating profit will be stronger than expected in a range of £118-121 million.
Insurers told to improve claims handling
10:01 , Graeme EvansInsurers have been told by the Financial Conduct Authority (FCA) to improve their claims handling, following “concerning” evidence of poor practices in some cases.
The regulator said that, while rising motor insurance premiums are largely driven by external cost pressures, shortcomings persist in how some insurers handle claims.
Evidence of poor practices included a lack of oversight of outsourced services, delays in settling claims and high complaint volumes.
The FCA also highlighted insufficient management information, resulting in failures to promptly identify and resolve claims handling issues.
Compass and Centrica rally in FTSE 100, Greencore up 10%
08:32 , Graeme EvansCompass and Centrica are the best performers in a resilient session for the FTSE 100 index.
The caterer, which is to buy food services business Vermaat, rose 4% or 95p to 2619p after upgrading expectations for 2025 underlying operating profit growth.
The FTSE 100 index recovered from a weak start to stand broadly unchanged at 9013.
Centrica rose 4%, up 6.4p to 163.1p, after announcing it will hold a 15% stake as part of its £1.3 billion investment in the Sizewell C nuclear power station.
Mining stocks continued their strong run as Glencore rose another 3% or 8.6p to 321p and Rio Tinto improved 49p to 4659p.
AstraZeneca shares fell 10p to 10,222p after announcing its plan to invest $50 billion in the United States.
In the FTSE 250, Greencore jumped 10% or 24p to 265p after the supermarket food supplier said 2025 adjusted operating profit will be stronger than expected in a range of £118-121 million.
Public sector borrowing tops forecasts
07:47 , Graeme EvansGovernment borrowing shot up to £20.7 billion last month, highlighting the challenge facing Rachel Reeves in bringing the public finances back under control.
The worse-than-expected total was the highest deficit on record for June excluding the pandemic and £6.6 billion more than in June last year.
The scale of the borrowing, almost £700 million a day, makes it even more likely that the Chancellor will be forced into more tax rises in her second Budget in the Autumn.
The interest bill alone on central Government debt was £16.4 billion in June largely because of an increase in the rate of inflation.
The £20.7 billion compared with the £17.1 billion forecast by the Office for Budget Responsibility.
Capital Economics said: “Despite the £3.6 billion overshoot in June, public borrowing is still in line with the OBR’s forecasts after the first three months of the fiscal year.
“But things will probably get worse for the Chancellor. We think that she will need to raise £15-25bn at the Budget later this year, with higher taxes doing most of the heavy lifting.”
Compass unveils £1.3bn acquisition, upgrades guidance
07:33 , Graeme EvansCatering group Compass is to acquire European food services business Vermaat in a deal worth 1.5 billion euros (£1.3 billion).
Vermaat is the market leader in the Netherlands, with a growing presence in Germany and France — all of which are top ten markets for Compass.
Compass chief executive Dominic Blakemore said: “This strategic acquisition represents a step change in our core markets by creating a strong platform for expansion across Europe.”
As well as the deal, Compass upgraded guidance for 2025 after reporting organic revenue growth of 8.6% in the third quarter and 8.5% for the year to date.
The group now expects constant currency underlying operating profit growth to be towards 11%, driven by organic revenue growth above 8% and ongoing margin progression.
AstraZeneca unveils £50bn US investment plan
07:21 , Graeme EvansFTSE 100-listed pharmaceuticals giant AstraZeneca today announced plans for $50 billion of investment in the United States by 2030.
The flagship project will be a new multi-billion dollar US manufacturing facility that will produce drug substances for the company's weight management and metabolic portfolio.
The state-of-the-art centre in Virginia would be AstraZeneca's largest single manufacturing investment in the world, leveraging AI, automation and data analytics to optimise production.
Howard Lutnick, US Secretary of Commerce, said: "For decades Americans have been reliant on foreign supply of key pharmaceutical products. President Trump and our nation's new tariff policies are focused on ending this structural weakness.
“We are proud that AstraZeneca has made the decision to bring substantial pharmaceutical production to our shores. This historic investment is bringing tens of thousands of jobs to the US and will ensure medicine sold in our country is produced right here."
Centrica acquires 15% Sizewell C stake
07:11 , Graeme EvansCentrica today announced it is to acquire a 15% equity stake in the Sizewell C nuclear power station, with committed construction funding of £1.3 billion.
Chief executive Chris O'Shea said the agreement deepened the British Gas owner’s long-standing involvement in the UK nuclear industry.
He said: “This isn't just an investment in a new power station - it's an investment in Britain's energy independence, our net zero journey, and thousands of high-quality jobs across the country.”
Centrica will jointly own Sizewell C alongside the Government, La Caisse, EDF and Amber Infrastructure Group. The total cost of the project is £38 billion.
The Government has set the real allowed return on equity during the construction and initial operations phase at 10.8%.
The British Gas owner will have a 20-year offtake agreement for its share of Sizewell C's production.
Today’s investment forms part of Centrica's £4 billion green-focused investment programme and guidance through to the end of 2028.
It now has commitments worth £2.5 billion, of which around £1.7 billion is tied to assets with regulated or contracted earnings including Sizewell C.
FTSE 100 seen lower after record close, S&P 500 higher
07:00 , Graeme EvansThe FTSE 100 index is seen falling back from last night’s record of 9012.99, with futures trading pointing to a decline of about 0.3%.
The London top flight’s first finish above 9000 followed a strong session for mining stocks, including Glencore and Antofagasta.
On Wall Street, the S&P 500 index and Nasdaq Composite both established fresh records after closing 0.1% and 0.4% higher respectively.
The Dow Jones Industrial Average ended slightly lower.
