FTSE 100 Live Tuesday
- AB Foods hit by sugar loss
- BP earnings below hopes
- HSBC flags tariffs impact
Market update: BP and Astra weigh on FTSE 100, HSBC and Howden rally
10:28 , Graeme EvansWeaker BP and AstraZeneca shares during a busy session for blue-chip earnings today dented the chances of a 12th successive rise by the FTSE 100 index.
London’s top flight stood 1.43 points lower at 8415.91, with a big fall by Primark owner Associated British Foods another factor in the lacklustre showing.
On a brighter note, the resilience of HSBC boosted demand for banking stocks and Howden Joinery and Ladbrokes owner Entain fared well after robust updates.
BP shares fell 4% or 15.1p to 346.95p after first quarter earnings of $1.38 billion came in about 10% short of already reduced City forecasts.
Cash flow from operations of $6.2 billion missed hopes and net debt showed a further increase to $27 billion, although this is set to reduce later in the year.
A share buyback for the quarter of $750 million was at the bottom of the guidance range and compared with $1.75 billion before February’s reset of the oil giant’s financial framework.
With the price of Brent Crude still below $70 a barrel, BP shares have fallen 14% this year and by a third in the past year.
The pressure on AstraZeneca shares came despite forecast-beating first quarter results, with earnings per share up 21% to $2.49. It also reiterated revenues and earnings guidance for 2025.
However, shares fell 446p to 10,080p amid uncertainty over the company’s outlook in China and the United States and after it halted a late stage trial of a prostate cancer drug.
Associated British Foods led the fallers board, reversing 7% or 147p to 2092p after cutting guidance for its sugar operation.
Persistent low European prices and the performance of its UK bioethanol business, Vivergo led to the division posting a half-year loss of £16 million,
Its Primark unit has also experienced tough conditions in the UK, although first-half sales still rose 1% to £4.5 billion due to growth in Europe and the US.
The group, which also owns Allied Bakeries and the brands Twinings and Ovaltine, reported a 10% drop in interim profits to £818 million.
Chief executive George Weston said: "These results reflect a robust performance in four of our five divisions.
“I am frustrated with the results in our Sugar business, but we are clear on what needs to be done by way of operational and regulatory solutions to improve financial performance.”
On the risers board, HSBC shares lifted 2% or 16.7p to 850.4p after first quarter results showing a $1 billion rise in underlying constant currency profit to $9.8 billion easily beat City forecasts.
The rise came even though it warned a “plausible downside” scenario of surging tariffs could add an extra $500 million (£372.8 million) in bad debts. It is also braced for muted lending demand during 2025.
The shares of Barclays and Standard Chartered rose by about 1% following the HSBC results.
Other risers in the top flight included easyJet, which lifted 13p to 501.2p on the read-across to a strong year-end trading update by Jet2.
The AIM-listed airline and package holidays firm jumped 16% or 219p to 1569p after accompanying its statement with a £250 million share buyback.
Howden Joinery posted the biggest rise in the FTSE 100 index after the kitchens specialist provided a reassuring update on recent trading.
Underlying revenue rose 3% in the year to date, or 1.8% on a same depot basis against a strong prior year comparator.
Shares rose 6% or 47p to 786p, leaving the stock broadly unchanged for this year.
Ladbrokes owner Entain lifted 22.4p to 650.6p, boosted by a better-than-expected start to its financial year after net gaming revenue rose 11% on a constant currency basis when including the company’s 50% share of BetMGM.
It also announced the appointment of Stella David as chief executive. She has been in temporary charge since February and a member of the board since March 2021.
Howden Joinery and Entain rally after updates
09:31 , Graeme EvansHowden Joinery is the best performing stock in the FTSE 100 index after the kitchens specialist provided a reassuring update on recent trading.
Underlying revenues rose 3% in the year to date, or by 1.8% on a same depot basis against a strong prior year comparator.
Chief executive Andrew Livingston said: “Our approach continues to deliver sustainable market share gains, and we are on track with our outlook for 2025."
Shares rose 46.5p to 785.5p, leaving the stock broadly unchanged for this year.
Ladbrokes owner Entain lifted 18.4p to 646.6p, boosted by better-than-expected first quarter growth in net gaming revenues of 11%. The figure, which is on a constant currency basis, includes the company’s 50% share of BetMGM.
It also announced the appointment of Stella David as chief executive. She has been in temporary charge since February and a member of the board since March 2021.
David said: “Entain has a clear strategy and we are making great strides in strengthening our operational capabilities.”
HSBC flags potential tariffs impact, shares rise
08:51 , Graeme EvansHSBC, which is heavily exposed to Chinese and Asian markets, has warned over the potential hit to its business from significantly higher global tariffs.
In the “plausible downside” scenario of surging tariffs, it said it faces a “low single-digit percentage” impact on its revenues and around an extra $500 million (£372.8 million) in bad debts.
The group increased its provision for loans expected to turn sour by $202 million year-on-year to $876 million (£653.4 million) in the first quarter of 2025.
It added that “given current levels of uncertainty and market turmoil, we expect demand for lending to remain muted during 2025”.
The group’s shares rose 2% or 17.4p to 851.1p after its first quarter results came in ahead of expectations.
FTSE 100 lower amid BP and AstraZeneca selling, AB Foods down 9%
08:29 , Graeme EvansPrimark owner Associated British Foods has fallen 9% in the FTSE 100 index, down 197p to 2042p after the retail-to-ingredients conglomerate highlighted the weaker-than-expected performance of its sugar division.
BP also dropped 4% or 13.9p to 348.1p after first quarter profit came in below expectations and it cut its share buyback programme to $750 million.
AstraZeneca weakened 408p to 10,118p on the back of its Q1 figures, leading to a worse-than-expected start for the FTSE 100 index.
London’s top flight fell 4.24 points to 8413.10.
HSBC shares rose 16.2p to 849.9p after posting a robust set of results, while Howden Joinery lifted 6% or 47.5p to 786.5p on the back of 3% revenues growth at the start of its financial year.
AstraZeneca lifts Q1 earnings, pledges US investment
08:11 , Graeme EvansChief executive Pascal Soriot today said AstraZeneca’s “strong growth momentum” has continued into 2025 after reporting higher revenues and earnings for the first quarter.
He reiterated full-year targets, as well as Astra’s longer-term ambition to grow revenues to $80 billion by 2030.
Total revenue lifted 10% to $13.6 billion in the first quarter, driven by double-digit growth in Oncology and BioPharmaceuticals. Core earnings per share increased 21% to $2.49.
Soriot said that Astra is firmly committed to investing and growing in the US, including at its two large R&D sites in Gaithersburg in Maryland and Cambridge, Massachusetts.
AB Foods hit by sugar loss and tough Primark UK trading
07:56 , Graeme EvansAssociated British Foods has reported a 10% drop in half-year profits to £818 million, impacted by its loss-making sugar division and challenging conditions for Primark in UK and Ireland.
Persistently low European prices and the performance of its UK bioethanol business Vivergo led to the sugar division posting an operating loss of £16 million.
Primark sales grew 1% to £4.5 billion, while the division’s adjusted operating profit increased 8% to £540 million amid growth in Europe and the US.
The group also owns Allied Bakeries and the brands Twinings and Ovaltine.
Chief executive George Weston said: "These results reflect a robust performance in four of our five divisions.
“I am frustrated with the results in our Sugar business, but we are clear on what needs to be done by way of operational and regulatory solutions to improve financial performance.
“Primark delivered good growth in Europe and the US, with continued consumer caution in the UK. Primark's profit and margin delivery was strong and our low-cost operating model is working well. ”
The group expects Primark trading conditions in the UK will remain challenging in the second half of 2025, although it adds there have been some early signs of improvement in recent weeks.
BP cuts buybacks, Q1 earnings below forecast
07:35BP today cut its share buyback programme to $750 million, down from the $1.75 billion in the previous quarter. The dividend is unchanged at eight US cents a share.
Alongside the reduction in shareholder returns, BP’s first quarter replacement cost profit fell year-on-year by more than City expectations to $1.38 billion.
This compared with $2.7 billion the year before but marked an improvement on $1.2 billion in the previous quarter as stronger refining margins offset a weaker gas marketing and trading result.
In February, chief executive Murray Auchincloss announced a reset of the company’s strategy.
He said today the company expects proceeds from divestments of $3-4 billion this year, underpinning a net debt target of $14-18 billion by the end of 2027.
He said: “We continue to monitor market volatility and changes and remain focused on moving at pace.
“I'm confident that our plans to strengthen the balance sheet, reduce costs, and improve cash flow and returns will grow long-term shareholder value and strengthen the resilience of BP.”
HSBC reports “strong” quarter, sees muted demand in 2025
07:18 , Graeme EvansHSBC today said it expected demand for lending to remain muted during 2025 amid the ongoing impact of tariffs uncertainty and market turmoil.
The forecast came as the group reported a sharp drop in first quarter profit, a performance distorted by last year’s disposal of its banking business in Canada.
Excluding one-offs, constant currency profit before tax increased by $1 billion to $9.8 billion. At the bottom line, profit dropped $3.2 billion to $9.5 billion.
It reported a strong performance in wealth banking and in FX as well as debt and equity markets, partly offset by higher expected credit losses and other credit impairment charges.
Chief executive Georges Elhedery called the results strong, crediting the firm’s ability to weather the recent global economic turbulence.
He said: “Our strong results this quarter demonstrate momentum in our earnings, discipline in the execution of our strategy and confidence in our ability to deliver our targets.”
FTSE 100 set for another positive session, Brent Crude 1% lower
07:02 , Graeme EvansThe FTSE 100 index is seen opening about 20 points higher after last night edging up to post its 11th consecutive rise.
The prospect of another positive session for London’s top flight follows an afternoon improvement on Wall Street as the Dow Jones Industrial Average closed up 0.3% and the S&P 500 index added 0.1%.
In Asia, traders have largely remained on the sidelines ahead of this week’s flurry of US tech sector earnings and economic releases.
Gold is slightly lower at $3312 an ounce and Brent Crude at $65.19 a barrel after a decline of 1%.
