Author: Fiona Craig

British equities started Wednesday’s trading session on a positive note, with the FTSE 100 rising nearly 1% by 07:36 GMT. Meanwhile, the British pound regained ground against the dollar, climbing 0.2% to approximately $1.36 after previously dipping amid renewed worries about tariffs.

Across Europe, Germany’s DAX index gained 0.4%, while France’s CAC 40 also rose by 0.4%.

WPP Shares Tumble Over 12% Following Revenue Forecast Downgrade

Advertising giant WPP (LSE:WPP) saw its shares fall sharply after the company reduced its full-year revenue and profit guidance. Weak trading during June led to a steeper than anticipated decline in the first half of 2025.

WPP now expects its 2025 like-for-like revenue, excluding pass-through costs, to decline between 3% and 5%, a marked revision from its earlier forecast of flat to a 2% decrease. The company cited challenging macroeconomic conditions and reduced net new business wins as primary drivers of the weaker outlook.

Hunting PLC Raises Dividend Growth Target and Announces Buyback Plan

Engineering group Hunting PLC (LSE:HTG) reported a robust H1 2025, with EBITDA up around 16% year-on-year, reaching approximately $68-$70 million. The growth was largely fueled by strong performance in its OCTG product segment.

Hunting boosted its targeted annual dividend growth from 10% to 13% and revealed plans for a $40 million share buyback program, following the publication of its half-year results on August 28. The company maintained its full-year EBITDA forecast of roughly $135-$145 million and expects year-end cash between $65 million and $75 million prior to the buyback and any acquisitions.

Jet2 Posts 12% Increase in Pre-Tax Profits

Jet2 (LSE:JET2) announced a 12% rise in pre-tax profits for the year, driven by strong demand for its competitively priced holiday packages and flights. The company noted that bookings remain steady, although customers tend to arrange travel closer to departure dates.

Jet2 emphasized that consumer enthusiasm for relaxing overseas vacations in sunny destinations remains high.

Young & Co Benefits from Warm UK Weather with 7% Sales Growth

Pub operator Young & Co (LSE:YNGA) experienced a boost in like-for-like sales of 7% over the 14 weeks ending July 8, benefiting from prolonged warm and sunny weather in the UK. This increase was particularly noticeable in pubs located by riversides and with outdoor gardens. The growth comes despite tough comparisons with last year’s Euro 2024 football tournament period.

New Report Urges Chancellor Reeves to Reform Fiscal Rules

A recent report from the Productivity Institute and the National Institute of Economic and Social Research suggests that Chancellor Rachel Reeves should overhaul fiscal policy to improve productivity. The analysis argues current rules hinder essential investment for sustainable economic growth and tax revenue expansion.

The report advises setting a minimum public investment threshold of about 4%-5% of GDP and establishing a clear plan for government consumption in the upcoming autumn budget.

Competition Regulator Approves £100 Million Contribution from Homebuilders

In a separate development, the U.K.’s Competition and Markets Authority (CMA) has accepted a £100 million pledge from seven major homebuilders to support affordable housing initiatives. This follows an investigation into possible antitrust violations by these companies.

Apple Inc. (NASDAQ:AAPL) is reportedly exploring the acquisition of U.S. broadcasting rights for Formula 1, according to a Financial Times report on Wednesday. The tech giant aims to challenge Disney-ESPN’s current F1 broadcast contract in the U.S. once it becomes available for renewal next year, sources familiar with the matter revealed.

This potential bid follows the strong box office performance of Apple’s Formula 1-themed movie starring Brad Pitt, marking the company’s first major theatrical success since venturing into original film production for its Apple TV+ platform. The film grossed just over $300 million globally, aligning closely with its estimated production budget of $200 to $300 million.

Apple’s growing enthusiasm for Formula 1 ties into its broader strategy to expand its presence in the live sports streaming arena. In recent years, the company has secured broadcast agreements with Major League Baseball for Friday night games and with Major League Soccer in North America.

Formula 1 has yet to finalize its future U.S. broadcasting arrangements, and ESPN remains a contender for retaining the rights. Last year, ESPN had an exclusive negotiation period with the racing series, but no agreement was reached during that window.

European equity markets saw modest gains on Wednesday, as investors remained cautious while assessing the impact of U.S. President Donald Trump’s evolving trade tariff policies.

By 07:05 GMT, Germany’s DAX had risen by 0.4%, France’s CAC 40 climbed 0.4%, and the U.K.’s FTSE 100 increased by 0.3%.

Trade Discussions Take Center Stage

This week, market participants in Europe have been closely monitoring developments coming out of Washington regarding ongoing trade negotiations. President Trump extended the deadline for finalizing trade agreements from July 9 to August 1 via an executive order, granting negotiators an additional three weeks to reach a deal.

Despite this extension, Trump indicated there would be “no more extensions” beyond August 1. However, he also described the deadline as “firm, but not 100% firm,” leaving some uncertainty lingering.

Further adding to market jitters, the U.S. president unveiled a 50% tariff on copper imports and hinted at upcoming tariffs targeting other specific sectors. He also threatened pharmaceutical exports with duties as high as 200%, though he plans to delay their implementation by approximately one to one and a half years.

Amid these developments, investors are awaiting potential progress on a U.S.-EU trade agreement, although skepticism remains, especially as Trump mentioned preparing a new tariff notification.

ECB Officials and Fed Minutes in Focus

With limited significant European economic releases scheduled for Wednesday, attention will likely turn to speeches from European Central Bank officials Luis de Guindos and Philip Lane.

Meanwhile, data from China showed a slight improvement in consumer prices for June, surpassing expectations but still remaining relatively subdued. Producer prices, however, contracted for the 33rd month in a row and recorded their lowest level since July 2023.

Later in the day, the U.S. Federal Reserve is set to publish the minutes from its most recent policy meeting. Investors are eager for clues about the central bank’s outlook on interest rates for the remainder of the year.

Renault Poised to Appoint Interim CEO

On the corporate front, no major earnings reports are scheduled for Wednesday, but Renault (EU:RNO) is attracting attention after reports that the French automaker plans to name an interim CEO next week. This follows the impending departure of Luca de Meo, who will move on to lead luxury group Kering (EU:KER).

According to the Financial Times, Renault’s shortlist includes internal candidates Denis Le Vot and François Provost, alongside former Stellantis (NYSE:STLA) executive Maxime Picat.

Oil Prices Dip After U.S. Inventory Surge

Crude oil prices eased from recent two-week highs Wednesday, as data revealed a sharp rise in U.S. crude stockpiles, raising concerns that trade tariffs might suppress demand for oil.

At 03:05 ET, Brent crude futures fell 0.1% to $70.10 per barrel, while West Texas Intermediate futures also dropped 0.1%, settling at $68.28 per barrel.

Prices had surged to two-week peaks on Tuesday, driven by worries over supply disruptions after renewed attacks by Houthi forces on Red Sea shipping routes.

The American Petroleum Institute reported an unexpected build of 7.1 million barrels in U.S. crude inventories for the week ending July 4, far surpassing the anticipated drawdown of 2.8 million barrels.

Market participants are now awaiting confirmation from the Energy Information Administration’s official inventory report later in the day, especially as the Independence Day holiday weekend typically fuels strong travel demand.

In Wednesday’s Asian trading session, gold prices eased slightly as traders showed limited interest in the metal as a safe haven. Market uncertainty around U.S. trade tariffs and interest rate policies fueled demand for the U.S. dollar instead, putting downward pressure on gold.

Meanwhile, copper prices in the United States bucked the trend by climbing to record levels following President Donald Trump’s announcement of a potential 50% tariff on copper imports. This sharp tariff threat boosted domestic copper prices, even as London copper futures experienced declines on Tuesday and Wednesday.

The stronger dollar, recovering from recent three-year lows, weighed on most other metals, causing broad-based price retreats across the sector. The dollar’s rally was supported by rising expectations that the Federal Reserve would hold off on cutting interest rates after recent robust U.S. employment data.

Spot gold slipped 0.2% to $3,294.88 per ounce, while September gold futures declined 0.4% to $3,303.20 per ounce as of 00:55 ET (04:55 GMT). Gold hovered near its lowest point in over a week, as trade tensions failed to ignite typical safe-haven buying.

Investors shifted their focus to the heavily discounted dollar, which gained traction amid ongoing concerns about Trump’s tariff plans. The president began issuing official tariff notices this week targeting several major trading partners, adding to market uncertainty.

The Federal Reserve has cautioned that the tariffs, if fully implemented, could increase inflation pressures in the U.S., making interest rate cuts less likely in the near term. This dynamic contributed to subdued gold demand and pressure on other metals.

Precious metals saw some profit-taking after strong performances in June, with platinum futures down 1.1% at $1,376.35 per ounce and silver futures inching up slightly to $36.84 per ounce.

Copper prices in the U.S. surged on hopes of reduced supply due to tariffs. U.S. copper futures gained 2.6% to $5.6457 per pound on Wednesday, after reaching a record $5.8955 per pound the day before. The tariff threat is expected to benefit domestic producers such as Freeport-McMoRan, as the administration aims to boost local mining and reduce reliance on imports.

Copper’s strategic importance has grown amid the shift to green technologies, given its key role in electrical infrastructure and electric vehicles.

However, copper prices outside the U.S. declined amid concerns over softer import demand, especially from China, the world’s largest copper consumer. London Metal Exchange copper futures dropped 1.6% to $9,644.45 per ton, approaching a three-week low, as mixed inflation data from China fueled demand worries.

Oil prices slipped from a two-week high during Asian trading on Wednesday after industry data revealed a sharp increase in U.S. crude inventories. Investors remained cautious ahead of further trade tariff announcements expected from President Donald Trump.

As of 21:44 ET (01:44 GMT), Brent Oil Futures for September delivery fell 0.3% to $69.91 per barrel, while West Texas Intermediate (WTI) crude futures declined 0.4% to $68.10 per barrel. Both contracts had reached a two-week peak on Tuesday, driven by concerns over supply disruptions following recent attacks by Houthi forces on shipping lanes in the Red Sea.

A Reuters report on Tuesday detailed that four crew members aboard the Liberian-flagged, Greek-operated bulk carrier Eternity C were killed in a drone and speedboat attack off the coast of Yemen.

US crude stocks jump sharply

The American Petroleum Institute (API) reported on Tuesday a sharp and unexpected rise in U.S. crude oil inventories for the week ending July 4, with a build of 7.1 million barrels—far exceeding the forecasted drawdown of 2.8 million barrels. This followed a previous week’s modest increase of 0.68 million barrels.

Gasoline inventories fell by 2.2 million barrels, while distillate stocks declined by 800,000 barrels. The data suggests weakening demand and potential oversupply challenges in the U.S. market.

Market watchers now await confirmation from the Energy Information Administration (EIA), whose report is due later in the day. If the EIA data mirrors the API trend, it would mark the largest increase in crude inventories since January.

Trump announces copper tariff and more duties incoming

President Trump stated on Tuesday he would impose a 50% tariff on imported copper and plans to soon implement long-promised tariffs on semiconductors and pharmaceuticals.

The day before, he began sending tariff letters notifying 14 countries that sharply higher tariffs would take effect starting August 1. These letters outlined a 25% tariff on all goods from Japan and South Korea, with some countries facing levies as high as 40%.

Late Tuesday, Trump tweeted: “We will be releasing a minimum of 7 Countries having to do with trade, tomorrow morning, with an additional number of Countries being released in the afternoon.” He provided no further details, leading investors to adopt a cautious stance amid expectations of a new wave of tariffs.

Jet2 plc (LSE:JET2) posted record financial results for the year ending March 31, 2025, with revenue rising 15% to £7.17 billion and profit before tax increasing 12% to £593.2 million. The company achieved a 12% growth in flown passengers, reaching 19.77 million, and expanded its UK airport network by opening new bases at Bournemouth and London Luton. Strategic investments, including fleet expansion and a share buyback program, highlight Jet2’s commitment to growth and enhancing shareholder value. The company remains optimistic about future prospects, supported by a flexible business model and strong leisure travel demand.

Jet2’s strong financial performance is underpinned by solid revenue and profitability growth, effective equity leverage, and strategic capital management. However, elevated liabilities and some overbought technical indicators suggest caution. The stock appears undervalued, presenting a potential opportunity for investors despite mixed technical signals.

More about Jet2 plc
Jet2 plc is a leading Leisure Travel Group encompassing Jet2holidays, the UK’s top ATOL-protected package holiday provider to Mediterranean, Canary Islands, and European destinations, and Jet2.com, the UK’s third-largest airline by passenger numbers, specializing in scheduled holiday flights. The company operates from 13 UK airport bases, offering both package and flight-only options.

GSTechnologies Ltd (LSE:GST) has raised a total of £1.925 million through a retail offer (£175,000) and a placing of new ordinary shares (£1.75 million). The capital raised will be used to expand the company’s Bitcoin treasury reserve, supporting its GS Money strategy and reinforcing its position in the digital asset market.

Despite facing operational and profitability challenges reflected in weak financial performance and technical indicators, GSTechnologies’ recent strategic acquisitions provide potential growth avenues that partially mitigate the negative outlook.

About GSTechnologies

GSTechnologies Ltd is a fintech firm developing a borderless neobanking platform and next-generation digital money solutions. The company is advancing its Bake Cryptocurrency Platform and focuses on digital assets, including Bitcoin.

Hunting PLC (LSE:HTG) announced a strong trading update for the first half of 2025, with EBITDA growing 16% year-on-year to an estimated $68–$70 million, fueled primarily by solid performance in its OCTG (Oil Country Tubular Goods) division. The company plans to raise its targeted annual dividend by 13% and has initiated a $40 million share buyback programme to enhance shareholder value.

Recent acquisitions, including Flexible Engineered Solutions and Organic Oil Recovery technology, are expected to drive growth and improve capital returns in line with Hunting’s 2030 strategic vision. The firm reported a healthy sales order book of $450 million and a tender pipeline worth $1.1 billion, despite ongoing market volatility. Additionally, restructuring efforts in the EMEA segment are forecasted to generate annual savings of $10 million. Hunting continues to pursue further M&A opportunities to strengthen its market position.

While the outlook reflects strong revenue momentum and a solid balance sheet, profitability challenges and bearish technical indicators present some caution. Positive corporate developments and a competitive dividend yield provide optimism, though valuation concerns persist due to a negative P/E ratio.

About Hunting PLC

Hunting PLC is a precision engineering group serving the oil and gas sector, specializing in OCTG, subsea technologies, and advanced manufacturing. The company operates globally with key markets in North America, Asia Pacific, and EMEA.

SRT Marine Systems PLC (LSE:SRT) has reported a remarkable surge in revenue for the fiscal year ending June 2025, with sales soaring 423% to £77.5 million alongside a pre-tax profit of £4.4 million. The company recently landed a substantial $213 million contract with the Kuwait Coast Guard and currently holds active contracts totaling £320 million. Furthermore, its validated project pipeline is valued at £1.4 billion, positioning SRT for continued expansion.

Upcoming product launches, including the NEXUS transceiver, and the resumption of financial guidance by its partner Cavendish further bolster the company’s growth outlook. SRT’s strong market position in maritime surveillance reflects growing demand for digital solutions aimed at improving security, safety, and environmental sustainability across the maritime sector.

Despite clear business momentum driven by high-value contracts and innovation, SRT faces financial challenges that temper its outlook. While technical market indicators remain favorable, concerns around financial stability and valuation persist.

About SRT Marine Systems

SRT Marine Systems PLC is a leading player in the global maritime domain awareness industry, delivering cutting-edge technologies and systems that promote maritime safety, security, and environmental stewardship. Their portfolio includes proprietary tools like advanced analytics, data fusion, and augmented visualization, catering to a broad customer base spanning government agencies to commercial vessel operators worldwide.

ZIGUP plc (LSE:ZIG) has released its full-year results for the period ending April 30, 2025, highlighting strong operational achievements and an optimistic outlook. While overall revenue dipped slightly, the company recorded a 2.3% rise in underlying revenue, supported by strong performances in its rental division. ZIGUP expanded its market share notably in Spain and maintained steady vehicle supply alongside stable market conditions.

Strategic moves, including new collaborations and technological upgrades, have strengthened the company’s growth prospects with an emphasis on creating sustainable value for shareholders. Reflecting confidence in its financial health and future opportunities, ZIGUP increased its dividend payout by 2.3%.

Despite some financial headwinds such as rising debt levels and negative free cash flow, the company’s robust valuation, encouraging corporate developments, and favorable technical indicators underpin investor interest. Additionally, its attractive dividend yield adds to the stock’s appeal.

About ZIGUP plc

ZIGUP plc is a prominent provider of integrated mobility solutions, offering a wide-ranging platform that supports various stakeholders—including businesses, fleet operators, insurers, and OEMs—across the entire vehicle lifecycle. Its services encompass vehicle rental, fleet management, accident and repair services, and maintenance. The company is also noted for its commitment to social mobility and efforts to bring young talent into the automotive sector.