ADVFN UK Market News

Category: Top Story

  • FTSE 100 Falls as U.S.-Iran Strait Tensions Shake Investor Confidence

    FTSE 100 Falls as U.S.-Iran Strait Tensions Shake Investor Confidence

    British equities moved lower on Friday after intensifying military confrontations between U.S. and Iranian forces in the Strait of Hormuz unsettled global markets, despite U.S. President Donald Trump maintaining that a ceasefire remained active and urging Tehran to agree to a peace settlement “fast.”

    By 07:20 GMT, London’s benchmark FTSE 100 index had fallen 0.81%, while sterling remained broadly stable, with GBP/USD rising 0.13% to 1.3584. Elsewhere in Europe, Germany’s DAX slipped 1%, while France’s CAC 40 declined 0.8%.

    According to Washington, three U.S. destroyers passed through the Strait of Hormuz while facing attacks involving Iranian fast boats, missiles and drones, although no damage was reported.

    “They trifled with us. We blew them away,” Trump said, while also claiming negotiations with Tehran were “going very well” and warning that any future military response would be “a lot harder, and a lot more violently” if Iran failed to reach an agreement quickly.

    Intertek Rejects Improved EQT Takeover Proposal

    Intertek (LSE:ITRK) rejected an increased £8.93 billion takeover proposal from Swedish private equity group EQT on Friday, arguing that the bid materially undervalued the testing and inspection company and carried excessive execution risk.

    The rejection signals that Intertek’s board remains confident in the company’s standalone growth strategy despite the substantial premium offered by the bidder.

    IAG Cuts Profit Expectations as Fuel Costs Rise

    IAG (LSE:IAG), owner of British Airways, warned that full-year profits are now expected to come in below previous forecasts as rising jet fuel costs linked to the Iran conflict and broader supply disruptions place greater pressure on earnings than initially anticipated.

    The downgrade highlights the growing financial impact of Middle East tensions on European airline operators.

    UK House Prices Show Further Weakness

    UK house prices slipped 0.1% in April, according to mortgage lender Halifax, leaving annual growth at 0.4%, below economists’ expectations of 0.6%.

    The weaker reading suggests affordability challenges continue to weigh on the housing market as higher borrowing costs and geopolitical uncertainty dampen buyer demand.

    Labour Suffers Heavy Losses in Local Elections

    The UK Labour Party endured significant setbacks in Friday’s English local elections, with Prime Minister Keir Starmer’s party losing support across several traditional strongholds in central and northern England less than two years after its general election victory.

    Nigel Farage’s Reform UK emerged as the main beneficiary, winning more than 300 council seats and strengthening its position as a growing opposition force in both Scotland and Wales.

  • Barclays (BARC) Says Q1 Earnings Growth Has Reached Multi-Year Highs in Europe and the U.S.

    Barclays (BARC) Says Q1 Earnings Growth Has Reached Multi-Year Highs in Europe and the U.S.

    Barclays (LSE:BARC) said first-quarter earnings-per-share growth is currently running at its strongest pace in more than three years across Europe and more than four years in the United States, based on the bank’s assessment of the ongoing earnings season.

    According to Barclays’ analysis, blended EPS growth stands at 27% in the U.S. and 7% in Europe, which would represent the strongest quarterly performance since the fourth quarter of 2021 in the U.S. and the first quarter of 2023 in Europe. Among companies that have already released results, EPS growth is tracking at 16% in the U.S. and 4% in Europe.

    European Companies Beat Expectations but Outlook Turns More Cautious

    Barclays noted that European businesses have generally delivered earnings results in line with market expectations. However, corporate guidance has become more cautious due to the impact of ongoing geopolitical conflict.

    The bank’s review of European earnings call transcripts found that roughly 75% of reporting companies have been affected by the conflict through weaker demand conditions, supply chain disruption or increased input costs.

    AI and Technology Drive Stronger U.S. Earnings Revisions

    The bank also said full-year 2026 EPS revisions in the U.S. have moved back into positive territory, led primarily by artificial intelligence and technology-related sectors. This has widened the performance gap between U.S. and European earnings expectations.

    Energy and semiconductor companies have received some of the largest upgrades in both markets, contributing to higher forecasts for FY2026 earnings growth overall.

    Financials and Consumer Sectors Show Mixed Performance

    Within Europe, sectors including Financials, Materials and Consumer Discretionary recorded some of the strongest earnings beats. In the U.S., Technology and Consumer Staples companies were among the leading performers during the reporting season.

    Most other sectors, however, experienced modest earnings downgrades. Barclays said the majority of downward revisions were concentrated in consumer-focused industries such as luxury goods, automotive and leisure.

    Global Earnings Revisions Begin to Stabilize

    Barclays added that global EPS revisions have started to stabilize as recent economic indicators and activity data, including purchasing managers’ indexes, have shown some improvement.

    Nevertheless, the stronger economic momentum remains largely concentrated in the United States, while earnings revisions across Europe continue to trend slightly negative.

  • IAG Releases First-Quarter 2026 Results and Announces Investor Webcast

    IAG Releases First-Quarter 2026 Results and Announces Investor Webcast

    International Consolidated Airlines Group (LSE:IAG) has released its interim management statement for the first quarter of 2026, covering the period ended 31 March. The results are now available through both the London Stock Exchange and the company’s investor relations website.

    The filing has also been submitted to the UK financial regulator’s storage mechanism, reflecting the group’s continued commitment to transparency and providing investors and analysts with updated financial and operational information.

    Airline Group Expands Investor Engagement Through Live Presentation

    The company confirmed that it will host a Q1 2026 results presentation and live webcast for analysts and institutional investors on 8 May.

    By organising a dedicated investor event and making supporting materials broadly accessible online, IAG is continuing to strengthen communication with the capital markets community and support informed evaluation of its performance and long-term strategy.

    Strong Financial Performance Balanced by Industry Pressures

    IAG’s outlook continues to benefit from solid underlying financial performance, including healthy operating margins and strong cash generation. Valuation metrics are also viewed as attractive despite some risks linked to leverage and softer revenue and free cash flow conversion during 2025.

    At the same time, technical indicators remain weaker, with the shares trading below key moving averages and the MACD remaining negative. Additional pressures highlighted during recent earnings discussions include foreign exchange and fuel price volatility, engine-related operational constraints and ongoing litigation and cost challenges, despite management maintaining confident guidance and continuing shareholder return initiatives.

    More about International Consolidated Airlines

    International Consolidated Airlines Group, S.A. is a multinational airline holding company operating major passenger carriers across international markets. Through its portfolio of airlines, the group provides both short-haul and long-haul air transport services for leisure and business travellers while competing across the global aviation sector.

  • Seraphim Space (SSIT) Raises £137 Million Through C Share Fundraising

    Seraphim Space (SSIT) Raises £137 Million Through C Share Fundraising

    Seraphim Space Investment Trust (LSE:SSIT) has raised approximately £137 million through the issuance of 136.5 million C Shares priced at 100 pence each, representing the largest fundraising completed by a UK investment company since 2023.

    The capital raise was conducted through a combination of a placing, a direct institutional subscription and a retail offer, attracting strong support from both existing shareholders and new institutional and retail investors.

    New Capital to Support Expansion of SpaceTech Investment Portfolio

    The proceeds from the fundraising will be allocated toward a pipeline of pre-identified early-stage and growth-stage SpaceTech investments, further strengthening Seraphim’s position as a specialist investor in the global space technology sector.

    The newly issued C Shares are set to trade on the London Stock Exchange and will carry full voting rights before periodically converting into ordinary shares. Following the transaction, the company’s total voting rights will increase to approximately 373.7 million shares, expanding its capital base to support future growth opportunities within the rapidly developing space economy.

    Strong Balance Sheet Offset by Earnings and Valuation Concerns

    Seraphim Space’s outlook continues to benefit from a strong debt-free balance sheet and supportive technical indicators, including positive momentum and a sustained upward trend in the shares.

    However, the company’s outlook remains constrained by weaker cash flow quality and highly volatile earnings driven largely by portfolio valuation movements. Valuation metrics are also viewed as less supportive given the reported price-to-earnings ratio and the absence of dividend yield data.

    More about Seraphim Space Investment Trust Plc

    Seraphim Space Investment Trust Plc is the world’s first listed investment fund dedicated exclusively to SpaceTech. The company primarily invests in early-stage and growth-stage private space technology businesses with potential for global market leadership and first-mover advantages across sectors including climate, communications, mobility and cyber security. Its shares are listed on the London Stock Exchange Main Market.

  • Rightmove (RMV) Maintains 2026 Targets Amid Expanding AI and Product Innovation

    Rightmove (RMV) Maintains 2026 Targets Amid Expanding AI and Product Innovation

    Rightmove (LSE:RMV) has reaffirmed its guidance for 2026, forecasting revenue growth of between 8% and 10%, Underlying Operating Profit growth of 3% to 5%, and at least 5% growth in Underlying EPS. The outlook is expected to be supported by product-led increases in average revenue per advertiser within its core estate agency and new homes operations, alongside modest membership expansion.

    The company also said its Strategic Growth Areas, which include commercial property, mortgages and rental services, remain on course to deliver revenue growth of 20% to 30% despite weaker new-build activity and a challenging macroeconomic environment.

    AI Expansion and Product Releases Drive Engagement Strategy

    Rightmove highlighted accelerating technology and AI development across the business, reporting a record pace of product launches and 43 AI initiatives currently underway. The company is continuing to expand AI-powered conversational search capabilities, alongside new valuation and rental tools and enhanced mortgage and partner-education services aimed at increasing user engagement and lead generation.

    Management also pointed to resilient activity in the resale housing market, ongoing supply-demand imbalances in the rental sector and historically low levels of new homes development. In addition, Rightmove upgraded its ADR programme in the U.S. and continued executing its £90 million share buyback programme, reinforcing confidence in both its business model and long-term shareholder proposition.

    Strong Financial Performance Supports Outlook Despite Technical Weakness

    Rightmove’s outlook continues to be supported by strong financial fundamentals, including high operating margins, robust free cash flow generation and low leverage levels. Earnings expectations remain positive, aided by continued capital returns to shareholders.

    However, technical indicators remain weaker, with the shares trading below key longer-term moving averages and the MACD remaining negative. Valuation support is also viewed as moderate, with the stock trading on a price-to-earnings ratio of around 15.9 and offering a dividend yield of roughly 2.27%.

    More about Rightmove

    Rightmove plc operates the UK’s largest online property platform, including the country’s leading residential portal for homes for sale and rent. The business also provides services across new homes, rentals, commercial property and mortgages. Rightmove focuses heavily on technology, data and AI-driven innovation to support the home-moving process while offering marketing, lead-generation and valuation tools for estate agents, developers and other property professionals.

  • Henry Boot Appoints Edward Hutchinson as Next Chief Executive

    Henry Boot Appoints Edward Hutchinson as Next Chief Executive

    Henry Boot PLC (LSE:BOOT), a UK land, property development and home building group with activities across residential, industrial, logistics and urban development projects, continues to expand through its Hallam Land, HBD, Stonebridge Homes and Banner Plant divisions. The company manages extensive land holdings and development pipelines while delivering large-scale commercial and housing schemes across the UK. Employing around 400 people, Henry Boot has established a reputation for long-term partnerships, quality delivery and an increasing focus on responsible business practices.

    Tim Roberts to Step Down After Six Years as CEO

    The company confirmed that chief executive Tim Roberts will leave the role later this year, with Edward Hutchinson, currently serving as interim managing director of Stonebridge Homes, selected as his successor.

    Roberts has been credited with reshaping and modernising the business during his tenure, including simplifying the group’s strategic focus and overseeing significant portfolio actions such as the phased acquisition of Stonebridge Homes and the disposal of Henry Boot Construction. He will continue working alongside Hutchinson during the transition period to support a smooth handover, highlighting the company’s focus on internal succession planning and operational continuity.

    Outlook Impacted by Weak Cash Flow and Bearish Technical Signals

    Henry Boot’s near-term outlook is being weighed down by weak cash generation in 2025, with both operating and free cash flow remaining negative. Technical indicators also point to continued weakness, with the shares trading below all major moving averages and the MACD remaining negative.

    These concerns are partially balanced by the company’s conservative balance sheet position, along with a relatively reasonable valuation and supportive dividend yield.

    More about Henry Boot

    Henry Boot PLC is one of the UK’s longest-established land, property development and home building businesses, having operated since 1886 and listed on the London Stock Exchange. Through divisions including Hallam Land, HBD, Stonebridge Homes and Banner Plant, the group focuses on residential, industrial and logistics, and urban development projects throughout the UK. The company also manages significant development and land pipelines while pursuing a target of achieving net zero carbon emissions by 2030.

  • European markets retreat after previous rally: DAX, CAC, FTSE100

    European markets retreat after previous rally: DAX, CAC, FTSE100

    European equities traded lower on Thursday following strong gains in the prior session, when investor sentiment was boosted by optimism surrounding artificial intelligence and hopes for easing tensions in the Middle East conflict.

    Losses were partially limited after fresh economic data showed German factory orders increased more strongly than expected in March.

    German factory orders beat forecasts

    According to data released by Destatis, factory orders in Germany climbed 5.0% in March following a revised 1.4% increase in February.

    Manufacturers reportedly accelerated purchases of raw materials amid concerns over potential supply disruptions and future price increases.

    The March reading came in well above the 1.0% forecast and marked the strongest monthly increase in three months. Excluding large-scale orders, new orders rose 5.1% compared with the previous month.

    Major European indexes move lower

    The U.K.’s FTSE 100 Index declined 0.6%, while Germany’s DAX Index slipped 0.1%.

    France’s CAC 40 Index traded near flat territory.

    Corporate movers across Europe

    Shares of Coca-Cola HBC (LSE:CCH) dropped 3.3% after the beverage bottler posted first-quarter organic revenue growth that missed expectations.

    Retailer JD Sports Fashion (LSE:JD.) advanced 5% after reporting full-year sales and profit figures that were broadly in line with market forecasts.

    Shell (LSE:SHEL) fell 2% after the energy company reduced its quarterly share buyback program from $3.5 billion to $3 billion.

    InterContinental Hotels (LSE:IHG) gained 2.8% following stronger first-quarter revenue results.

    Defense and aerospace company BAE Systems (LSE:BAE) declined 3.4% despite reaffirming its 2026 sales and underlying earnings-per-share outlook.

    German stocks mixed after earnings and deal updates

    Henkel (TG:HEN3) jumped 4.3% after the consumer goods and adhesives manufacturer reported first-quarter sales growth that exceeded expectations.

    Rheinmetall (TG:RHM) lost 2.8% after announcing it had submitted a non-binding bid to acquire German Naval Yards Kiel.

    Medical technology group Siemens Healthineers (TG:SHL) fell 4.7% after lowering its full-year revenue growth guidance.

    Global shipping and logistics company A.P. Møller – Mærsk (TG:DP4A) declined 4.3% as lower freight rates weighed on first-quarter profit.

    French companies also under pressure

    French utility Engie (EU:ENGI) dropped 2.2% after reporting weaker first-quarter earnings.

    Meanwhile, conglomerate Bouygues (EU:EN) slipped 2% after stating it does not intend to sell assets to finance its joint €20.35 billion cash offer for telecom operator SFR.

  • European markets edge higher as investors monitor possible U.S.-Iran negotiations: DAX, CAC, FTSE100

    European markets edge higher as investors monitor possible U.S.-Iran negotiations: DAX, CAC, FTSE100

    European equities traded mostly higher on Thursday as investors reacted to reports suggesting that the United States and Iran were working toward restarting negotiations aimed at ending the ongoing conflict between the two countries.

    By 07:10 GMT, the pan-European Stoxx 600 index had gained 0.1%, while Germany’s DAX rose 0.1% and France’s CAC 40 advanced 0.4%. In contrast, the UK’s FTSE 100 slipped 0.3%.

    Reports point to renewed diplomatic efforts

    According to reports, Washington and Tehran have been working with mediators on a one-page framework intended to relaunch discussions around a lasting peace agreement. The Wall Street Journal said negotiations are expected to begin next week in Pakistan.

    The report added that talks over the following month would aim to address disputes surrounding Iran’s nuclear programme and the potential easing of sanctions, although major disagreements remain over issues such as uranium enrichment and international inspections.

    President Donald Trump suggested that the U.S. military campaign against Iran, launched jointly with Israel in late February, could end if Tehran “agrees to give what has been agreed to.”

    Oil prices fall as hopes for de-escalation grow

    U.S. markets rallied strongly on Wednesday as expectations increased that the conflict could move toward a resolution.

    Oil prices also declined sharply amid hopes that tanker traffic through the Strait of Hormuz could resume. The key shipping route off Iran’s southern coast handles roughly one-fifth of global crude oil flows and has been heavily disrupted during the conflict.

    Brent crude futures, the global benchmark for oil prices, were last down 3.7% at $97.92 per barrel on Thursday.

    Corporate earnings influence market sentiment

    Company earnings releases across Europe also remained a focus for investors.

    Shares in Shell (LSE:SHEL) moved lower after the energy major reported quarterly earnings above market expectations but announced a reduction in the pace of share buybacks.

    Meanwhile, semiconductor designer Arm Holdings (NASDAQ:ARM) issued first-quarter revenue guidance ahead of analyst forecasts, reinforcing optimism that demand for artificial intelligence-related chips remains strong.

    European semiconductor stocks traded higher following the announcement.

  • FTSE 100 opens lower as investors monitor US-Iran negotiations

    FTSE 100 opens lower as investors monitor US-Iran negotiations

    London stocks opened slightly weaker on Thursday as investors weighed conflicting signals surrounding ongoing negotiations between the United States and Iran, despite increasingly optimistic comments from U.S. President Donald Trump regarding the possibility of a diplomatic agreement.

    By 07:14 GMT, the FTSE 100 had fallen 0.28%, while European markets showed a firmer tone, with Germany’s DAX rising 0.20% and France’s CAC 40 gaining 0.41%. Sterling was broadly stable against the dollar, with GBP/USD up 0.18% at 1.3621.

    Trump signals optimism over potential Iran agreement

    Market sentiment was influenced by comments from President Trump, who told reporters at the White House that discussions with Tehran over the previous 24 hours had been “very good” and that reaching a deal remained “very possible.”

    In later remarks to PBS, Trump said he believed an agreement could potentially be finalised before his scheduled visit to China next week, although he warned that military action could resume if negotiations fail.

    Iran’s Foreign Ministry stated that no formal response had yet been delivered to Washington’s latest proposal, with diplomatic communication continuing through Pakistani mediators.

    Reuters, citing both a Pakistani source and an individual briefed on the talks, reported that the two sides were nearing agreement on a short memorandum aimed at formally ending the conflict. Meanwhile, Axios reported that a proposed 14-point framework included commitments from Iran not to pursue nuclear weapons development and to suspend uranium enrichment activities for at least 12 years.

    Iranian officials issue warnings amid ongoing talks

    Despite the diplomatic progress, tensions remained elevated. A senior official from the IRGC Navy warned that any renewed US military action would trigger a response “beyond the enemy’s calculations.”

    Iran’s parliamentary speaker also criticised Washington’s strategy around the Strait of Hormuz, describing it as “Operation Trust Me Bro” and claiming the approach had failed.

    UK market movers and corporate updates

    JD Sports warns on profits

    JD Sports (LSE:JD.) said profits are expected to decline further in the 2026/27 financial year, citing subdued consumer demand and uncertainty linked to Middle East tensions. The retailer also reported a 2.3% decline in first-quarter like-for-like sales.

    BAE Systems maintains strong outlook

    BAE Systems (LSE:BAE) reiterated guidance for earnings growth of between 9% and 11% in 2026 as elevated geopolitical tensions continue to support defence spending and order activity. The company’s order backlog has expanded significantly since Russia’s invasion of Ukraine in 2022.

    M&G returns to positive inflows

    M&G (LSE:MNG) reported £600 million of net inflows during the first quarter, reversing outflows recorded a year earlier. Demand from Japanese partner Daiichi Life and external institutional clients supported the improvement.

    Hiscox posts premium growth

    Hiscox (LSE:HSX) announced a 10.2% increase in first-quarter insurance contract written premiums, driven by strong retail insurance performance across the UK, Europe and the United States.

    IHG beats expectations despite regional risks

    InterContinental Hotels Group (LSE:IHG) exceeded market forecasts with first-quarter RevPAR growth of 4.4%, ahead of expectations for 3.3%. Strong US leisure demand supported performance, although management warned that Middle East tensions could affect future travel activity.

    Shell beats earnings forecasts

    Shell (LSE:SHEL) reported first-quarter adjusted earnings of $6.92 billion, ahead of analyst expectations of $6.36 billion. However, the company reduced its quarterly share buyback programme to $3 billion from $3.5 billion and noted a higher debt ratio following conflict-related disruption at its Pearl gas facility in Qatar.

    BP receives licence extension

    BP (LSE:BP.) was granted an extension to a US licence allowing the use of a payment mechanism involving sanctioned Iranian and Russian entities tied to a major Azerbaijani gas development, according to Bloomberg.

    Intertek likely to reject takeover approach

    Intertek (LSE:ITRK) is reportedly preparing to reject an improved £58-per-share takeover proposal from Swedish private equity firm EQT, according to the Financial Times.

    UK economic data points to slower activity

    Separate economic surveys released on Thursday indicated that UK construction activity contracted at its fastest pace in nearly six years during the three months to March.

    Meanwhile, a separate labour market survey showed that private sector pay settlements remained unchanged in March, with median annual pay offers holding steady from the previous month.

  • BAE Systems (BAE) maintains guidance after strong start to 2026

    BAE Systems (BAE) maintains guidance after strong start to 2026

    BAE Systems (LSE:BAE) reaffirmed its full-year financial guidance after reporting a strong operational and financial performance during the opening four months of 2026. The defence and aerospace group said rising military spending across its major markets continues to support robust demand for its products and services.

    Management highlighted approximately £4.5 billion in new orders secured so far this year, more than double the level reported during the equivalent period in 2025.

    Major defence contracts strengthen order book

    Among the new business secured was a £2.5 billion training and support agreement linked to Turkey’s recent Eurofighter acquisition, alongside £1.1 billion of new orders for MBDA missile systems.

    BAE Systems said it continues to see additional opportunities emerging across several high-priority defence sectors, including missile and air defence systems, space technologies, drone and counter-drone capabilities, and electronic warfare solutions.

    The company noted that increasing global security threats are driving governments to raise defence budgets, creating favourable long-term conditions across its core markets.

    Full-year targets remain unchanged

    The group maintained its 2026 guidance, continuing to expect sales growth of between 7% and 9%, underlying EBIT growth of 9% to 11%, and underlying earnings per share growth within the same range.

    BAE also reiterated expectations for free cash flow to exceed £1.3 billion during the year.

    Analysts said the company remains well positioned to benefit from sustained increases in defence spending globally, particularly due to its exposure to strategically important areas such as air defence, naval platforms, drones, space systems and electronic warfare.

    Dividend increased following strong trading momentum

    The company also announced a final dividend for 2025 of 22.8 pence per share, up from 20.6 pence in the previous year, reflecting confidence in cash generation and ongoing earnings growth.

    More about BAE Systems

    BAE Systems is a UK-based multinational aerospace, defence and security company supplying advanced military technology, weapons systems and support services to governments and defence organisations worldwide. The group operates across air, maritime, land, cyber and space domains, with major programmes spanning combat aircraft, naval vessels, missile systems, electronic warfare and defence electronics.