British stocks climbed on Wednesday, driven by earnings momentum from companies such as Prudential and JD Sports, while Hochschild Mining fell sharply following a disappointing guidance update.
At 0800 GMT, the FTSE 100 rose 0.2%, while the pound slipped 0.2% against the U.S. dollar to 1.34. Germany’s DAX slipped 0.1%, and France’s CAC 40 gained 0.5%.
U.K. Energy Bills Set to Increase as Ofgem Raises Price Cap
U.K. households will face higher energy costs this winter after regulator Ofgem announced a 2% increase in the price cap effective from October through December. This will add around £2.93 per month, or £35.14 annually, to the average household on a default tariff, with a typical monthly bill rising to £102 from £100.
Despite the increase, the new cap of £1,755 for annual costs remains £625, or 26.3%, below its peak at the start of 2023 during the energy crisis. Adjusted for inflation, costs are 0.9% lower than the same period last year. Ofgem cited higher electricity balancing costs as the main driver, contributing about £1.23 per month to bills.
Rio Tinto Streamlines Operations into Three Core Divisions
Rio Tinto Ltd (LSE:RIO) announced a major reorganization, forming three primary divisions: Iron Ore, Aluminium & Lithium, and Copper, to focus on its most profitable assets. Matthew Holcz was appointed CEO of the Iron Ore unit, which will integrate the company’s Western Australian operations with its Canadian business and the Simandou project in Guinea. Jérôme Pécresse will lead Aluminium & Lithium, combining Atlantic and Pacific aluminium operations with the newly acquired Arcadium Lithium business. Katie Jackson continues to oversee Copper, focusing on ramping up production from the Oyu Tolgoi mine.
Prudential Shares Rise on Strong H1 Results, $5 Billion Buyback Plan
Prudential PLC (LSE:PRU) shares rose after the insurer reported first-half results above expectations and announced a capital return plan exceeding $5 billion through 2027. The group posted an Annual Premium Equivalent of $3.29 billion, slightly above the $3.27 billion consensus.
JD Sports Sees Steeper Q2 Sales Decline Amid U.K. Weakness
JD Sports Fashion PLC (LSE:JD.) reported a 3% drop in like-for-like sales for Q2, compared with a 2% fall in Q1. Weakness in the U.K., where sales fell 6.1%, weighed on results. North America and Europe declined 2.3% and 1.1%, respectively, while Asia Pacific grew 0.3%. First-half sales were down 2.5%.
Hochschild Mining Cuts Gold Output, Increases Cost Guidance
Hochschild Mining PLC (LSE:HOC) shares fell more than 13% after lowering its full-year production outlook. The Mara Rosa mine in Brazil is now expected to produce 35,000-45,000 ounces of gold in 2025, less than half the previous forecast. Overall attributable production guidance was reduced to 291,000-319,000 gold equivalent ounces, down from 350,000-378,000. Cost expectations were raised to $1,980-$2,080 per ounce from $1,587-$1,687.
Boohoo Boosted by Debenhams Performance
Boohoo Group PLC (LSE:DEBS) shares rose 2.6% after reporting FY25 adjusted EBITDA of £41.6 million. The Debenhams brand performed strongly, with GMV up 34% year-on-year to £654 million and adjusted EBITDA of £25 million, a £14 million increase from the prior year. The group is also exploring a potential sale of PrettyLittleThing.
Frasers Group Acquires Minority Stake in We Do Play
Frasers Group PLC (LSE:FRAS) expanded into leisure activities by purchasing a minority stake in We Do Play. The company highlighted synergies with its existing portfolio, which includes the Sports Direct retail chain. Financial terms were not disclosed.
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