London markets edged lower on Wednesday, with the FTSE 100 slipping 0.2% amid pressure on the pound, which dropped 0.5% against the U.S. dollar to 1.34. Across the continent, Germany’s DAX barely moved, down 0.02%, while France’s CAC 40 fell 0.7%.
Investor attention was drawn to European defense stocks, which advanced after former U.S. President Donald Trump signaled stronger support for Ukraine, boosting sentiment in the sector.
JD Sports Posts Profit Drop Amid U.S. Weakness, Keeps Full-Year Forecast
JD Sports Fashion PLC (LSE:JD.) reported a 13.5% decline in first-half profit, citing challenges in its U.S. operations, though the company maintained its full-year guidance.
The sportswear retailer posted £351 million in profit for the six months ending August 2, down from £405.6 million a year earlier. Despite the decline, JD Sports reaffirmed its full-year forecast, projecting adjusted profit before tax of £853 million to £914 million ($1.15-$1.23 billion), in line with market expectations of £878 million.
On The Beach Shares Drop After Profit Warning and B2B Exit
Shares of online travel firm On The Beach Group PLC (LSE:OTB) tumbled over 14% following a profit warning. The company now expects adjusted profit before tax for the fiscal year ending September 30, 2025, to range between £34.5 million and £35.5 million, below analyst consensus of £38.4 million.
The company also announced plans to wind down its loss-making B2B segment, Classic Collection, marking a strategic shift to focus on its core operations.
Trump’s Ukraine Remarks Lift European Defense Stocks
European defense companies saw gains after Trump expressed confidence that Ukraine could reclaim all territories lost to Russia, including Crimea and parts of Donetsk and Luhansk, with NATO and EU support.
Shares of Saab (BIT:1SAAB), Hensoldt (BIT1HENS), Renk Group (TG:R3NK), Leonardo (BIT:LDO), Thales (EU:HO), Rheinmetall (TG:RHM), Dassault Aviation (EU:AM), QinetiQ (LSE:QQ.), and BAE Systems (LSE:BA.) all moved higher on the news.
Eli Lilly CEO Criticizes UK Drug Pricing Policies
In an interview with the Financial Times, Eli Lilly (NYSE:LLY) CEO Dave Ricks described the UK as having some of the least favorable drug pricing conditions in Europe.
He warned that unless the government adjusts prices and removes the VPAG rebate system, which forces pharmaceutical companies to remit a portion of UK sales to the National Health Service, patients risk losing access to new treatments.
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