UK equities opened lower on Friday following the release of May’s economic data showing the British economy contracted for the second month running. This adds to pressure on the Bank of England to potentially ease monetary policy.
At 07:45 GMT, the FTSE 100 index slipped 0.07%, while the British pound weakened 0.1% against the US dollar, trading near 1.35. Across Europe, Germany’s DAX fell 0.6% and France’s CAC 40 declined 0.4%.
UK GDP falls short of expectations
The Office for National Statistics reported that UK GDP decreased by 0.1% in May, following a 0.3% drop in April—the largest since October 2023. This result was below economists’ forecast of 0.1% growth. Industrial output dropped 0.9%, and manufacturing production fell by 1.0% during the month.
UK Finance Minister Rachel Reeves called the figures “disappointing” but affirmed her commitment to reigniting economic growth.
BP forecasts increased Q2 oil and gas production, expects net debt reduction
BP (LSE:BP.) provided a trading update, anticipating that upstream production in Q2 will surpass Q1 levels, thanks to higher output from its US onshore operations at BPX Energy and growth in gas and low-carbon segments. The company also expects net debt to slightly decrease by the end of the quarter compared to earlier months.
Warehouse REIT favors enhanced Blackstone bid over Tritax offer
In corporate developments, Warehouse REIT’s (LSE:WHR) board has recommended an improved cash takeover bid from US private equity firm Blackstone (NYSE:BX), turning down a competing offer from Tritax Big Box (LSE:BBOX).
Flutter to buy Boyd Gaming’s 5% stake in FanDuel
Flutter Entertainment (LSE:FLTR) announced plans to purchase Boyd Gaming’s (NYSE:BYD) 5% share in FanDuel for roughly $1.76 billion, gaining full control over the online betting platform.
Heathrow aims to increase annual passenger capacity by 10 million by 2031
Heathrow Airport revealed plans to expand capacity by 10 million passengers per year by 2031, contingent on regulatory approval for higher fees and modifications to existing terminals.
Unilever divests Venezuelan ice cream business
Unilever (LSE:ULVR) has sold its Venezuelan ice cream operations, including the Tio Rico brand, to Mack de Venezuela, a local truck company representing Mack, Volvo, and Dongfeng brands. Separately, Unilever’s Magnum spin-off has appointed Jochanan Senf as the new CEO of Ben & Jerry’s, effective mid-July.
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