- FTSE 100 up 16 points at 8,988
- BP offloads US wind assets
- GSK sinks on US red light for Blenrep
- Reckitt jumps on Essential Home sale
4.46pm: FTSE 100 pulls back
The FTSE 100 pulled back from earlier highs near 9,000 to finish Friday’s session up 16 points at 8,988 points.
Across the Atlantic, US stocks were mixed with the Nasdaq powering higher to hit an intraday record of 20,950 points before reversing course, trading just slightly above the flatline at 20,905 points.
4.09pm: FTSE 100 sailing higher towards the close
The FTSE 100 has picked up a light second wind as the shoreline of the weekend approaches.
The leaderboard is led by miners, utilities, financials and defence, with pest controller Rentokil Initial in the crow's nest.
Antofagasta, United Utilities, Intermediate Capital, Severn Trent, Segro, Anglo American, DCC, BAE Systems and Schroders round out the top risers.
Oil giants Shell and BP are offering support too, with Brent up 1.3% at over $70 a barrel.
But seven of the top 10 largest companies are in the red, with three of the four largest HSBC, AstraZeneca (which lost its crown again this week) and Unilever only just below flat.
3.48pm: Crypto surge
This week, if you can remember back to Monday, had been flagged as "crypto week" by US lawmakers.
Congress has now passed a trio of landmark bills, including the GENIUS and CLARITY Acts passed yesterday in Washington.
This has "finally delivered the kind of regulatory clarity markets have long been waiting for", says analyst Axel Rudolph at IG.
After bitcoin hit a record high above $122K at the start of the week, it was hovering above $120K earlier on Friday but has since sunk to around $118K.
Ethereum, however, has climbed around 5% over the past day to a six-month high above $3,650, while other altcoins like XRP are up almost 7% and Dogecoin more than 14%.
Crypto altcoins are "roaring back", says Rudolph, "all against a backdrop of surging ETF inflows and renewed institutional interest.
"With the total crypto market cap pushing past $4 trillion, momentum is building on multiple fronts, and sentiment across the space is shifting decisively."
3.37pm: Looking to next week
Thoughts are turning to next week as this one comes to an end.
UK banks are one of the themes, as reporting season gets into a higher gear.
Lloyds's numbers are due on Thursday and NatWest will wrap up next week, with shares in the sector all in green so far this year, while there were strong earnings from US investment banks in recent days, though stock reactions on Wall Street did not reflect that.
Ahead of the earnings season, Shore Capital expects the sector to deliver another quarter of solid performance, underpinned by stable net interest margins (NIMs), robust credit quality and strong underlying capital generation.
Returns on tangible equity are expected to remain in double digits, supporting dividend growth and continued share buybacks, except Lloyds, which typically announces buybacks at the full year.
"The general backdrop for loan book growth has remained muted during the period, given the uncertain economic backdrop," said Shore Cap analyst Gary Greenwood.
Two big telecoms updates are also due. Citi had a rather dark prediction for BT Group, forecasting "a quiet watershed coming" at the Q1 results on Thursday as the Openreach infrastructure arm enters a decline.
"On one of the busiest reporting days of the year, it may go somewhat under the radar for many investors."
On the same day, Vodafone numbers will allow investors to check on the progress of the Germany turnaround that boss Margherita Della Valle flagged at the FY results.
The Italian CEO said she expected the coming year to see "broad-based momentum" across Europe and Africa, with Germany returning to top-line growth, with a 2% increase in underlying earnings for the full year and a 5% improvement in free cash flow.
2.55pm: Mixed on Wall Street
It's been a mixed open on Wall Street.
The Dow Jones is down 0.1%, while the S&P 500 and Nasdaq are up over 0.2%.
Small caps outperformed, with the Russell 2000 climbing 0.6%.
Among individual companis, Netflix shares are down 4%, which reported a solid second quarter and an improved outlook for 2025 revenue, but Jefferies called the results “solid” but not market-moving.
Invesco is up over 8% after the firm filed to change the massive QQQ tech fund, said to be the most profitable in the ETF industry, from an exchange-traded fund to an open-ended fund. As Bloomberg put it, Invesco currently "earns virtually nothing from running it. Now the asset manager is asking shareholders to change that."
Hess Corp is up 7% after Chevron was cleared to complete the $53 billion takeover, with Exxon failing to torpedo the deal.
And Charles Schwab was up 3% as earnings and revenues beat expectations.
1.29pm: Major setback for GSK
Analysts have been getting out their red pens after GSK got bad news from the US Food and Drug Administration’s (FDA) oncology drugs advisory committee.
The committee voted 5-3 and 7-1 against approving GSK’s multiple myeloma drug Blenrep in two separate phase III trials, sending the shares down 4% now.
JPMorgan said in a note to clients that it now sees non-approval of both regimens as the likely outcome.
"We see a very high likelihood the D8 regimen isn’t approved, and a high likelihood the D7 regimen is also not approved," said JPMorgan.
UBS echoed the negative tone, describing the ODAC vote as a “major setback”.
It noted that Blenrep was seen as a key growth driver between 2025 and 2031, with the US market accounting for roughly three-quarters of its modelled $2bn in potential sales.
12.22pm: FTSE slides
The FTSE 100 has slid back below 9,000 as the clock ticked past midday.
Continental European markets have also dipped but not as much as the London benchmark.
US futures have lost some momentum off too, with the big three indices all just above flat now.
While positive tone was evident early on Friday, after a week of record highs for global equities, there is renewed pressure from bond markets, where gilt yields are rising, says market analyst Kathleen Brooks at XTB.
The rising pound also creates some weight on the Footsie, up 0.3% versus the dollar at $1.3453 as it climbs off recent month lows.
But the pound is "at risk of breaking down", with the problem being bond yields "and fears of a fiscal crisis in the UK".
UK bonds have been a major underperformer in the developed markets in recent days, sending 2-year yields 10 basis points higher this week and 10-year yields 7bps higher.
"There does not seem to be much good economic news around either. In the past week, UK GDP has contracted, unemployment is higher, and inflation rose by more than expected.
"Even with this backdrop the FTSE 100 reached a record high, and the FTSE 250 reached its highest level since 2022.
"Why are UK stock markets recording these highs when the domestic economy is so weak? It is because they are not reliant on the UK, and they contain international companies.
"Even the FTSE 250 generates more than 50% of its revenue outside of the UK. Thus, the UK’s stock indices could still perform well, even as the UK economy is coming under unbearable pressure."
Talking of global factors, while tariffs dominated market sentiment at the start of this week, Brooks says a focus on President Trump’s health could mean that tariff risks recede.
11.19pm: RB reactions
Some analyst reaction to the Reckitt deal, where the news has sent the shares up 2% initially but now they are flat.
The deal financials are "weaker than anticipated", says JP Morgan Cazenove's Celine Pannuti, but on the plus-side Reckitt will return $2.2 billion to shareholders via a special dividend.
"Net net, the deal puts more clarity on unlocking SOTP [sum of the parts] at Reckitt - a strategy that was unveiled last year - and allow more focus now on the core performance and valuation," she says.
The deal compares to recent press reports outlining a figure nearer $5.4 billion/£4 billion, while Reckitt still retains "a large exposure and risks" to the Essential Home division's performance, with a 30% stake being retained and $1.3 billion contigent consideration, circa 27% of the deal value.
Pannuti says Reckitt’s valuation "looks inexpensive and appealing" on a SOTP basis, though she believes that "visibility on value crystallisation remains low in the core business as well as the potential disposal of non-core businesses while Mead Johnson remains beset by the overhang from NEC liability until H125".
Jefferies says it is a "compromised" or "less clean exit" of the asset than might have been planned, but notes that the implied valuation flags "the risks of sum of the parts" valuations as well as comparing to 'peer' multiples with very different growth and margins in the industry.
"The first hurdle has been crossed today on the journey to new Reckitt, but this is arguably the much lower bar to cross compared to the mountains to come," the analysts said.
10.25am: Small cap headlines
ATOME PLC (AIM:ATOM) has landed provisional backing of up to $135 million from the European Investment Bank for its green fertiliser plant in Paraguay. The support boosts the credibility of the Villeta project, which uses renewable power to make hydrogen-based fertiliser. A final investment decision is due by September. Read more
Great Southern Copper PLC (LSE:GSCU) is all-in on its Especularita project in Chile after strong copper-silver drill results at Mostaza. It’s planning more drilling there and at gold-prospective Viuda Negra. The company dropped less promising projects to stay focused and funded, with copper demand outlook still looking strong, says CEO Sam Garrett. Read more
Atlantic Lithium Ltd (AIM:ALL, OTCQX:ALLIF, ASX:A11) says it's confident of securing final approval for its Ewoyaa project in Ghana, now under Cabinet review. The company is seeking revised terms to reflect lower lithium prices and ensure strong returns. Ewoyaa would be Ghana’s first lithium mine, with strong local support and job creation potential. Read more
The Footsie is owned by back above 9,000, gaining 28 points to 9,000.56.
10am: Footsie flirts with 9,000, again
The Footsie is holding onto its morning gains, though not yet back above the 9,000 mark that it hit at the open.
As the session progresses, Melrose Industries PLC (LSE:MRO, OTC:MLSPF) and JD Sports Fashion PLC (LSE:JD.) are top of the leaderboard, with gains of 3% and 2.5% respectively.
BP is up there, too, following news of the sale of its US onshore wind business.
Marks and Spencer Group PLC (LSE:MKS) is also doing well, gaining 1.8%. The retailer has announced the relaunch of its Sparks loyalty programme, complete with birthday treats, fashion and home rewards, and the return of its popular Coffee Stamp scheme. The refresh follows almost seven weeks of disruption after a major cyberattack, which forced M&S to pause online orders and is expected to cost the retailer up to £300 million in profits this year.
On the downside, GSK has fallen 6.3% after a US advisory panel voted against its Blenrep drug combos for tough-to-treat myeloma.
“The FTSE 100 is the ultimate tease, once again flirting above the 9,000 level before taking a step back,” commented AJ Bell's Dan Coatsworth.
“The FTSE’s overall gain was all the more impressive when you consider that GSK was having a disastrous day and trying to be the mother of all anchors on the stock index. Shell and BP came to the rescue as they lifted the UK market up, with strong support from consumer giants Reckitt and Unilever."
9.30am: BP sells US onshore wind business
BP PLC (LSE:BP.) shares are on the way up this morning, gaining 1.8% so far, after it agreed to sell its US onshore wind business to LS Power. The deal covers 10 wind farms generating 1.3GW across seven states and will wrap by year-end.
It’s part of BP’s $20 billion plan to slim down and sharpen focus on high-value, low-carbon investments. The assets will shift to LS Power’s Clearlight Energy, boosting its renewable footprint to 4.3GW.
BP says it's no longer the best owner and wants a smooth transition for its wind team. LS Power is happy to expand—and to welcome the experienced crew running the turbines.
9am: BHP jumps on record output numbers
Shares in BHP Group Ltd (LSE:BHP, ASX:BHP) are up over 1.5% in London morning trade after the mining giant posted record copper and iron ore output for the year, with over 2 million tonnes of copper and 290Mt of iron ore. It closed 3% up on Australia's ASX.
CEO Mike Henry called it a strong showing despite global uncertainty.
Chile’s Escondida hit its best copper production in 17 years, and coal was up 5%. Capex stays around US$11 billion for FY26–27, but potash costs are rising—Stage 1 at Jansen is now expected to cost up to US$7.4 billion, with first production pushed to mid-2027. Inflation, design tweaks and slower productivity are to blame for the hike.
The Footsie is now 19 points up at 8,991.25.
8.15am - Footsie off to a strong start
The FTSE 100 leapt out of the starting gate at the open, rising more than 0.4% in the first few minutes of trade before retracing some of its gains.
The blue chip index is currently 8 points up at 8,981.01.
Fresnillo PLC (LSE:FRES) is leading the gainers, up 1.8%, with Reckitt Benckiser Group PLC (LSE:RKT, ETR:3RB) not far behind following the news that it's divesting from its Essential Home business.
GSK PLC (LSE:GSK, NYSE:GSK) has dropped more than 5.4% after an expert panel advising the US drug regulator voted against its Blenrep drug combinations for patients with relapsed or refractory multiple myeloma.
"Markets have put in a decent performance over the last 24 hours, with the S&P 500 and the Nasdaq both reaching fresh all-time highs with the global rally mostly continuing this morning," said Deutsche Bank's Jim Reid.
"The advance was driven by another batch of positive US data, including higher-than-expected retail sales, and then a 5th consecutive weekly decline in initial jobless claims. So that reassured investors that the US consumer was still resilient, and that the mid-Q2 jump in jobless claims was a blip rather than a permanent trend."
7.45am - Burberry back in fashion
Burberry Group PLC (LSE:BRBY) says it’s finally turning a corner, with like-for-like sales down just 1% in Q1—an upgrade from last year’s steeper slides.
Revenue hit £433 million, down 6% on paper. Europe and the Americas chipped in some growth, but China and Asia dragged.
CEO Joshua Schulman says the brand’s getting its mojo back, with stronger core categories and a new collection winning over luxury shoppers. The transformation’s still in early days, but there's cautious optimism.
Oh, and they’re still on track to save £80 million a year—because a penny saved is a trench coat earned.
7.30am: Reckitt selling Essential Home
Reckitt Benckiser Group PLC (LSE:RKT, ETR:3RB) is selling its Essential Home business to private equity firm Advent International in a deal worth up to $4.8 billion.
The consumer goods group says the move is part of its plan to streamline and focus on its core health and hygiene brands.
Essential Home includes familiar names like Air Wick, Calgon, and Woolite. Reckitt will keep a 30% stake and expects to return about $2.2 billion to shareholders via a special dividend.
CEO Kris Licht calls it a “significant step” in unlocking value. The deal is set to close by the end of 2025, pending approvals and separation processes.
7.16am: FTSE 100 called higher as Wall Street touches new highs
The FTSE 100 is likely to get off to a positive start on the final trading day of the week, taking its cue from record closes on Wall Street as retail sales data and upbeat corporate earnings reinforced confidence in the resilience of the US economy.
Futures for the London index were up 23 points, around a quarter of a percent, with less than an hour until the market opens.
Overnight, the Nasdaq jumped 0.7% to finish at a new all-time high, while the S&P 500 also notched a record with a 0.5% gain. The Dow Jones Industrial Average ended 0.5% stronger.
The Footsie closed 0.5% up at 8,972.64 on Thursday as weak UK jobs data implied a near-term interest rate cut.
Unemployment increased to 4.7% in the three months to May, rising from 4.6%, where it had been expected to remain.
Average weekly wage growth slowed to 5.0% from a revised-up 5.4%, as expected, while pay growth excluding bonuses also softened to 5.0% from a revised-up 5.3%.
“Weaker UK jobs data has given the Bank of England more reason to cut interest rates in August, despite higher-than-expected inflation figures,” commented AJ Bell's Dan Coatsworth.
“It was enough to put a spring in the step of rate-sensitive sectors such as property and housebuilding. It also boosted consumer-facing industries such as leisure and retail on hopes that a lower cost of borrowing would lead to more spending.
Asian markets are mixed this morning, with Tokyo's Nikkei down 0.3% and India's BSE Sensex down 0.7&, while Hong Kong's Hang Sang is up 0.9% and Shanghai's SSE composite is 0.3% firmer.