FTSE 100 Live Wednesday
- HSBC profit falls
- BAE Systems ups guidance
- Taylor Wimpey takes profit hit
Market update: FTSE 100 weakens on HSBC setback, Taylor Wimpey down 7%
10:04 , Graeme EvansBlue-chip earnings were given a cool reception today as weaker HSBC and BAE Systems shares drove the FTSE 100 index into negative territory.
A bout of Wall Street caution ahead of tonight’s US interest rate decision and Microsoft results set a tough backdrop for those reporting.
HSBC fell 4% or 41.5p to 928.5p after an otherwise robust second quarter performance was overshadowed by bigger-than-expected writedowns.
They included one of $2.1 billion on its investment in China’s Bank of Communications, having spent $1.7 billion on a 19% stake in 2004.
HSBC’s profit fell 26% for the first half of the year, although the performance excluding one-off items in the second quarter was better than forecast.
The Asia-focused bank expects lending to remain muted over the rest of 2025 but chief executive Georges Elhedery said HSBC continued to navigate economic uncertainty and market volatility from a position of strength.
BAE Systems fell 36p to 1785p, despite upgrading its sales and earnings guidance for 2025 on the back of a strong first half performance.
The new targets moved BAE in line with the existing City consensus, which is why the defence stock lost ground today following a 55% rise so far this year.
It was a similar story for GSK, which signalled 2025 results at the top end of its guidance range but fell half a penny to 1396.5p. In contrast to BAE, the drugs maker’s shares have barely moved in the year to date.
Taylor Wimpey posted the biggest fall in the FTSE 100, off 7% or 7.05p to 100.1p after the housebuilder disclosed a £20 million “unexpected” charge in half-year results.
The hit covered remediation on defective workmanship by a principal contractor on one of its London developments built between 2012 and 2015.
This means full-year operating profit will now be about £424 million, rather than previous guidance of £444 million.
It is still on course for full year UK completions between 10,400 and 10,800, despite softer market conditions in the second quarter.
Additional charges from an increase in cladding fire safety provisions led to a bottom-line loss of £92.1 million in today’s results.
Other housebuilders were impacted by the release as Persimmon weakened 23.5p to 1136p and Barratt Redrow lost 6.9p to 370.1p.
The FTSE 100 index fell 18.57 points to 9117.75, with Glencore the best performer after a second quarter production update lifted shares 4.95p to 310.75p.
London’s FTSE 250 index rose 37.99 points to 21,831.06, led by Bodycote after the thermal processing firm posted half-year results in line with expectations and announced an additional £30 million shares buyback.
The stock jumped 14.5% or 83p to 655.5p, whereas Aston Martin Lagonda dropped 3% or 2.7p to 76.1p on the back of its half-year figures.
The car maker highlighted the impact of US tariffs on its performance as underlying earnings fell 33% to £57 million in the second quarter.
Santander UK profit down 5%, cuts 2000 roles
08:51 , Graeme EvansSantander UK today reported a drop in half-year profits as it revealed more than 2000 roles have been cut amid an ongoing cost-saving overhaul.
The high street lender, whose Spanish parent company recently announced a £2.65 billion deal to buy UK rival TSB, posted a 5% fall in pre-tax profits to £764 million for the first six months of 2025.
Today’s figures come ahead of Friday’s Supreme Court car finance commission ruling, which will influence the Financial Conduct Authority’s plans for a compensation scheme.
The bank made a £295 million provision in last year’s results, which it said “continues to reflect the Santander UK group’s best estimate” in relation to the matter.
FTSE 100 struggles, HSBC and Taylor Wimpey under pressure
08:34 , Graeme EvansThe FTSE 100 index has fallen by 0.4% or 36.64 points to 9099.68, reflecting results-day weakness for HSBC, Rio Tinto and Taylor Wimpey.
The Asia-focused lender dropped 5% or 45p to 925p after reporting a sharp fall in second quarter earnings, while the mining giant declined 96p to 4552.5p.
Downgraded guidance by housebuilder Taylor Wimpey left its shares 5% or 5.4p lower at 101.75p.
BAE Systems also came under pressure, falling 24p to 1797p despite its upgrade to 2025 guidance. GSK also surrendered initial gains to stand 6.5p lower at 1390.5p.
Accounting software group Sage led the FTSE 100, rising 53.5p to 1311p on the back of its third quarter trading update.
Taylor Wimpey takes profit hit, market conditions soften
08:08 , Graeme EvansHousebuilder Taylor Wimpey today lowered profit guidance for 2025 after disclosing a £20 million “unexpected charge” in half-year results.
The matter relates to defective workmanship by a principal contractor on one of its London developments built between 2012 and 2015.
The cost of remediation means the group now expects to deliver operating profit of about £424 million, which compares with previous guidance of £444 million.
It reiterated guidance for full year UK completions between 10,400 and 10,800, despite reporting softer market conditions in the second quarter.
Chief executive Jennie Daly said: “While affordability remains constrained, particularly amongst first-time buyers, lenders remain committed to the UK mortgage market and long term fundamentals are positive, with significant unmet need for UK housing.”
Half-year results today showed a 21% decline in underlying profits to £148.1 million, while exceptional charges following an increase in cladding fire safety provisions led to a bottom-line loss of £92.1 million.
Shares fell 5% or 5.2p to 102p.
Robey Warshaw sold in £146m deal
07:46 , Graeme EvansRobey Warshaw, the Mayfair takeover adviser where George Osborne is a partner, has been sold to US investment bank Evercore in a £146 million deal.
The boutique M&A specialist founded by investment bankers Sir Simon Robey, Simon Warshaw and Philip Apostolides in 2013, has worked on some of the biggest deals of the past decade.
These have included Comcast’s takeover of Sky UK, Todd Boehley’s bid for Chelsea FC and Abu Dhabi-backed RedBird IMI’s protracted struggle to take control of the Telegraph newspaper.
GSK upbeat after strong second quarter
07:43 , Graeme EvansGSK has bolstered 2025 financial guidance after a strong performance in specialty medicines lifted second quarter constant currency sales by 6% to £8 billion.
Total operating profit rose 33% to £2 billion and earnings per share by 35% to 35.5p, when currency movements are stripped out.
GSK now expects a 2025 performance towards the top end of its forecast range, which is currently for turnover of 3%-5%, core operating profit growth of 6%-8% and core earnings per share growth of 6%-8%
Chief executive Emma Walmsley said it had been a quarter of “excellent performance”, driven by specialty medicines after the company’s largest division lifted sales by 15% to £3.3 billion.
She said GSK continued to make “very good progress” in R&D, with three major US drug approvals achieved so far this year and 16 assets now in late-stage development.
“With all this, we now expect to be towards the top end of our financial guidance for 2025 and remain confident in our long-term outlooks."
BAE Systems lifts guidance after strong half year
07:25 , Graeme EvansBAE Systems today upgraded its sales and earnings guidance after reporting a strong operational performance in the first half of the year.
The defence group now expects a 2025 sales increase in the range of 8-10%, up from previous guidance of 7-9% and compared with last year’s total of £28.3 billion.
Underlying earnings growth is forecast in the range of 9-11%, having posted a figure of £3 billion in 2024.
Sales in the first half of the year rose 11% to £14.6 billion, while underlying earnings lifted 13% to £1.55 billion. It secured £13.2 billion of orders in the period, alongside progress executing on long-term major programmes.
Chief executive Charles Woodburn said: "In this heightened global threat environment, we continue to deliver mission critical capabilities to armed forces around the world and invest in our people, technologies and facilities to drive the improved efficiency, capacity and agility needed to meet the increasing demand for our highly relevant products and services.
“The breadth and depth of our geographic and product portfolio, together with our trusted track record of delivery, strengthen our confidence in the positive momentum of our business."
HSBC profit falls, sees muted lending demand
07:11 , Graeme EvansHSBC has warned that it expects lending to “remain muted” for the rest of 2025 after posting lower-than-expected profits for the first half of the year.
The surplus fell by $5.7 billion (£4.3 billion) from the first half of 2024 to $15.8 billion (£11.8 billion).
HSBC attributed $3.6 billion (£2.7 billion) of the decline to the sale of its Argentina and Canada operations while “dilution and impairment losses” on its stake in China’s Bank of Communications accounted for $2.1 billion (£1.6 billion).
Constant currency profit excluding one-off items increased by $900 million (£674 million) to $18.9 billion (£14.2 billion), with a strong performance in international wealth and premier banking and HSBC’s Hong Kong business segments cited.
Chief executive Georges Elhedery said: “We’re making positive progress in becoming a simple, more agile, focused organisation built on our core strengths.
He added: “We continue to navigate this period of economic uncertainty and market volatility from a position of strength, putting the changing needs of our customers at the heart of everything we do.”
HSBC announced a second interim dividend of 10 US cents a share, while it also intends to initiate a share buyback of up to $3 billion (£2.25 billion).
FTSE 100 seen near record, US shares drop
07:03 , Graeme EvansWall Street shares last night weakened, with the S&P 500 index down 0.3% ahead of tonight’s interest rate decision and latest batch of megacap earnings.
The Dow Jones Industrial Average also fell 0.5% and the Nasdaq Composite ended its strong run with a decline of 0.4%.
The Federal Reserve is expected to keep interest rates on hold later, with the main focus on the outlook for a cut in September. Meta Platforms and Microsoft report figures after tonight’s closing bell.
The latest UK earnings last night propelled the FTSE 100 index to its second highest ever close, up 54.88 points or 0.6% at 9136.32.
It is forecast to add another 0.1% at today’s opening bell, having set an all-time intraday high of 9163.24 in yesterday’s session..
