Weekly reviewThursday 17 Apr 2025
(Sharecast News) - The FTSE 100 ended the Good Friday-truncated week up 362.41 points, or 4.58%, closing at 8,275.66 on Thursday.
Equity view
Pest control firm Rentokil reported a rise in first-quarter revenue on Thursday despite a softer performance from its North American business. In the period from 1 January to the end of March, total revenue rose 1.5% on the year to $1.64bn, with organic revenue up 1.8%, held back by around 30 basis points due to one fewer trading day. Revenue in North America was up just 0.5% and 0.7% on an organic basis.
J Sainsbury reported a strong set of full-year results on Thursday, with solid momentum across its grocery business and a significantly strengthened balance sheet supporting further shareholder returns. The FTSE 100 retail giant said that for the 52 weeks ended 1 March, group sales excluding fuel rose 4.2% to £26.6bn, driven by continued market share gains in grocery. Fourth-quarter sales at the core Sainsbury's brand rose 4.1%, while Argos returned to growth with a 1.9% increase in fourth quarter sales.
GSK announced two important endorsements from the US Centers for Disease Control and Prevention's (CDC) Advisory Committee on Immunization Practices (ACIP) on Thursday, for its vaccines Penmenvy and Arexvy, potentially expanding protection against meningococcal disease and respiratory syncytial virus (RSV) for millions of Americans. The FTSE 100 pharmaceutical giant said the committee voted to recommend Penmenvy, GSK's newly approved five-in-1 meningococcal vaccine, for individuals over the age of 10. Penmenvy offers broad protection against Neisseria meningitidis serogroups A, B, C, W, and Y in a single dose.
Alphawave IP Group reported record annual bookings for 2024 on Thursday, reflecting strong demand for its high-speed connectivity IP, despite a drop in total revenue and a wider operating loss, although it withheld guidance for the current financial year amid global trade uncertainty. The London-listed company, which trades as Alphawave Semi, said total bookings rose 34% year-on-year to a record $515.5m, driven by a 45% increase in licence and non-recurring engineering (NRE) bookings.
Ninety One reported a slight increase in assets under management (AUM) in the final quarter of its financial year on Thursday, with total AuM rising to £130.8bn as at 31 March. The FTSE 250 company said that compared with £130.2bn at the end of December, and £126bn a year earlier. It said it would publish its full-year results on 4 June.
Bunzl has lowered its guidance for 2025 after a worse-than-expected start to the year, with profits down "significantly" in the first quarter due to a challenging economic backdrop. The international distribution and services group said it now expects only a "moderate" increase in revenues at constant exchange rates this year, down from an earlier projection for "robust growth", while the operating margin is now expected to reduce to 8.0% compared with the initial targets for no change from 8.3% in 2024.
Outsourcer Mitie lifted its full-year profit guidance on Wednesday following "continued good momentum" in the fourth quarter, and announced the launch of a £125m share buyback. In an update for the year to the end of March 2025, the company said revenue rose around 13% on the previous year to a record £5.1bn, with fourth-quarter revenue growth of approximately 9%, ahead of guidance and reflecting good project demand. For the year, it now expects operating profit of around £230m, up from £210m in FY24.
Diversified mining group Rio Tinto expects iron ore shipments at its Pilbara operation in Western Australia to be at the lower end of guidance due to losses as a result of extreme weather in the first quarter. Production from Pilbara totalled 69.8m tonnes in the first quarter, down 19% over the three-month period and 10% lower than the year before.
Barratt Redrow said in an update on Wednesday that it remained on track to deliver full-year home completions in the range of 16,800 to 17,200, including around 600 joint venture homes, as it reported a stable trading performance in the 13 weeks to 30 March. The FTSE 100 housebuilder also noted encouraging progress in integrating Redrow following last year's merger. It said its net private reservation rate excluding private rental sector and multi-unit sales rose slightly to 0.62 per active outlet per week, up from 0.61 a year earlier.
Mining giant Antofagasta maintained its full-year production guidance of 660,000 to 700,000 tonnes on Wednesday despite seeing "significant volatility" in global markets. Antofagasta said it had delivered "a solid quarter of operating performance" in the three months ended 31 March, with copper production up 19.6% year-on-year, while gold and molybdenum production rose 28.8% and 14.8%, respectively. Copper sales surged 47.1% to 170.2 kilotons.
Discount retailer B&M has said that adjusted operating profits should be above the mid-point of its guidance range for the year ended 29 March on the back of productivity gains and a pick-up in underlying sales growth in the fourth quarter. Guidance for adjusted EBITDA was cut in February to £605m-625m, down from an earlier forecast of £620m-650m. Full-year group revenues totalled £5.6bn, up 3.7% on the year before as the impact of a 5% increase in store numbers and positive like-for-like sales in France (+2.6%) offset falling LFL sales in B&M UK (-3.1%) and the Heron Foods division.
Mike Ashley's Frasers Group said on Tuesday that it has entered a long-term strategic retail agreement with Accent Group to launch and operate Sports Direct across Australia and New Zealand. Frasers pointed out that Accent Group has a significant presence in Australasia, where it is a key retailer and distributor of premium lifestyle and sports footwear with over 900 stores, 12 distributed brands and proven retail operations capability in the Australian market.
Food ingredients group Tate & Lyle said it expects to deliver full-year results in line with guidance, with the recently acquired CP Kelco division delivering margin improvements ahead of expectations. Tate & Lyle, which in November completed a deal to merge with pectin, gums and ingredients firm CP Kelco, said the integration of the two companies is on track, with the enlarged group operating as a combined business from the start of April.
FirstGroup said in an update on Tuesday that it expects full-year adjusted operating profit and earnings per share for the financial year just ended to come in ahead of previous guidance, driven by better-than-expected trading in its rail division and stable performance from its bus operations. The FTSE 250 passenger transport operator said that for the 12 months ended 29 March, its rail business outperformed forecasts due to stronger variable fees from Department for Transport-contracted train operating companies.
The PRS REIT said in an update on Tuesday that its portfolio was continuing to perform strongly in the third quarter of its financial year, with high occupancy and robust rent collection, as it neared the completion of its delivery programme. As of 31 March, the real estate investment trust had 5,443 completed homes in its portfolio, up from 5,308 a year earlier. Estimated annual rental value for the completed homes rose to £69.6m, from £62.6m.
Medical products group Convatec has said the sales outlook for InnovaMatrix has improved after an announcement by the US government late last week. InnovaMatrix, first FDA-cleared placental-derived extracellular matrix medical device for wound management, had been initially excluded from a Medicare list of approved products used to treat diabetic foot ulcers and venous leg ulcers.
Natural gas-focused exploration company Energean has signed an agreement to supply gas to Kesem Energy's new power plant in Israel, worth around $2bn in revenues. The new plant, which is estimated to be operational before the end of the current decade, will be supplied with around 1bn cubic metres of natural gas per year from Energean from around the middle of the 2030s for a 17-year contract period. The gas sale and purchase agreement (GSPA) represents over $2bn in revenues over the contract period, representing roughly 12.5bn cubic metres of natural gas in contracted supply.
Kainos Group said in an update on Monday that it expects to report full-year revenue and adjusted profit before tax in line with consensus forecasts, following a solid fourth quarter that was supported by cost discipline and steady operational performance. The FTSE 250 software and IT services firm, which operates across Digital Services, Workday Services, and Workday Products, recorded low single-digit percentage growth in the final quarter of its financial year ended 31 March.
Shares in Ashmore dropped sharply on Monday after the emerging markets-focused asset manager reported a 5% drop in assets under management (AUM) over the first quarter of 2025. However, the company said that while market volatility has heightened since the period-end as a result of an escalating trade war, its business model remains well placed to deal as investors rebalance their portfolios away from the US. AUM totalled $46.2bn by 31 March, down $2.6bn over the first three months of the year, comprising a positive investment performance of $1.3bn, offset by net outflows of $3.9bn.
Wood Group said on Monday that Dubai's Sidara has made a non-binding conditional takeover proposal valuing the company at 35p per share that it would be minded to recommend. The proposal also includes a possible capital injection of $450m from Sidara and would require Wood to seek an extension of its existing committed debt facilities. Wood Group said: "Work continues on a range of alternative refinancing options. However, having carefully considered the viability of these options together with its financial advisers, the board of Wood currently believes that the possible offer represents the better option for Wood's shareholders, creditors and other stakeholders.
Economic news
UK consumer price inflation slowed more than expected in the year to March, according to data released on Wednesday by the Office for National Statistics. Inflation rose 2.6%, down from 2.8% in February and coming in below expectations for 2.7% growth. The largest downward contributions came from recreation and culture, and motor fuels, the ONS said. The largest upward contribution came from clothing.
The UK unemployment rate was steady in February, while wage growth remained high, according to figures released on Tuesday by the Office for National Statistics. The unemployment rate was unchanged at 4.4% in the three months to February. The figures also showed that growth in annual average weekly earnings excluding bonuses was 5.9%, slightly lower than consensus expectations for 6% growth. Growth in average earnings including bonuses was 5.6%, in line with expectations.
UK shop sales were higher in March compared with last year, according to data out on Tuesday from the British Retail Consortium, which pointed to "green shoots" for retailers despite a tough trading environment. UK total retail sales were up 1.1% year-on-year last month despite March 2024 benefitting from an earlier Easter, according to the BRC-KPMG Retail Sales Monitor. This was below the three-month average growth of 1.6% but above the 12-month average growth of 0.6%.
International events
Americans lined up for unemployment benefits at a decelerated pace in the week ended 12 April, according to the Department of Labor. Initial jobless claims unexpectedly fell by 9,000 to 215,000 last week, the lowest reading in more than two months, with analysts actually expecting to see an increase of 1,000. Continuing claims rose by 41,000 to 1.88m, while the four-week moving average, which aims to strip out week-to-week volatility, decreased by 2,500 to 220,750.
Factory sector activity in the US mid-Atlantic region shrank sharply in April, as trade tariffs began to bite, according to the results of a closely followed survey. The Federal Reserve Bank of Philadelphia's manufacturing sector index fell from a reading of 12.5 in March to -26.4 for April (consensus: 2.0). A sub-index for new orders was especially weak, falling from 8.7 to -34.2, whilst another linked to the number of employees dropped from 19.7 to 0.2.
The European Central Bank cut interest rates on Thursday by 25 basis points, as expected. Policymakers reduced the deposit rate to 2.25%, in what marked the seventh cut in a row. The ECB said in a statement: "The euro area economy has been building up some resilience against global shocks, but the outlook for growth has deteriorated owing to rising trade tensions."
Spending by Americans spiked last month, in part due to an attempt to front run the imminent imposition of import tariffs. According to the US Department of Commerce, in seasonally adjusted terms, retail sales volumes increased at a month-on-month pace of 1.4% to reach $734.9bn (consensus: 1.3%). That compared to a 0.2% increase in February.
A growing number of fund managers is expecting a recession this year as Trump's tariff war takes its toll. According to the latest Fund Manager Survey from Bank of America, a net 42% of respondents think that the global economy will see a recession over the next 12 months, while a net 15% of European investors expect this to be the case in Europe. The survey found that 82% believe the global economy will weaken over the coming year - the highest proportion on record on the back of the Trump administration's tariff increases.
The annual rate of economic growth in China held steady in the first quarter of 2025, as industrial production and retail sales growth accelerated in March, though the looming impact of US trade tariffs is likely to weigh on activity in the coming months. GDP growth stood at 5.4% in the first quarter, compared with the same period a year before, surprising economists who had predicted a slowdown to 5.1%. Economic expansion was maintained at its strongest annual rate since the second quarter of 2023.
The cost of living in the euro area rose a bit more slowly last month, as energy prices fell back. According to Eurostat, in seasonally adjusted terms the euro area Consumer Price Index jumped at a month-on-month pace of 0.6% in March. In annual terms meanwhile, CPI was ahead by 2.2% or one tenth of a percentage point less than during the previous month.
Oil prices edged lower on Tuesday after the International Energy Agency (IEA) significantly reduced its forecast for global oil demand growth, citing mounting economic headwinds and escalating trade tensions. The move followed a similar downgrade by OPEC, amplifying concerns over a weakening outlook for energy consumption. The IEA said it now expected global oil demand to rise by just 730,000 barrels per day in 2025, down 300,000 daily barrels from its previous forecast.
Industrial production in the euro area rose by 1.1% in February compared with the prior month, according to fresh data from Eurostat on Tuesday. The broader European Union also recorded a 1% monthly gain, marking an acceleration from January's more modest increases of 0.6% and 0.1%, respectively. On a year-on-year basis, industrial output was up 1.2% in the euro area and 0.6% in the EU, with non-durable consumer goods providing a notable boost.
Investor sentiment in Germany has fallen at its sharpest rate since the start of the Russia-Ukraine war, according to the results of a closely watched ZEW survey on Tuesday, due to the "erratic" changes in Donald Trump's tariff plan. The ZEW's forward-looking indicator of economic sentiment dropped by 65.6 points, from 51.6 in March to -14 in April, well below the consensus forecast of 9.5. This was the first reading below zero since October 2023 and the lowest print since July 2023.
China has instructed its domestic airlines to halt deliveries of Boeing aircraft and suspend purchases of US-made aviation equipment and parts, it emerged on Tuesday, deepening a widening trade dispute with the United States. The move followed Beijing's announcement of new retaliatory tariffs, raising the total levy on US goods to 145%, in response to recent tariffs imposed by Washington. According to Bloomberg, the latest measures targeted Boeing directly, with the new Chinese tariffs - 125% announced last weekend - rendering deliveries of US-built aircraft and components economically unviable.
Chinese exports surged by more than expected in March as manufacturers attempted to get ahead of the impending tariff deadline on imports into the United States, while imports shrank. The Chinese trade balance stood at $102.64bn on a USD basis last month, nearly double the $58.65bn reported a year earlier, according to the General Administration of Customs on Monday. That was well ahead of the $77bn consensus forecast as exports jumped and imports declined.
Taiwan Semiconductor Manufacturing Company (TSMC) reported a robust start to 2025 on Thursday, posting a 60.3% year-on-year increase in first-quarter net income to TWD 361.56bn (£8.39bn) and a 41.6% rise in revenue to TWD 839.25bn. The results surpassed analyst expectations, and were driven by sustained demand for high-performance chips used in artificial intelligence and 5G applications. Despite geopolitical and trade pressures, including potential US tariffs and tighter export controls on clients such as Nvidia and AMD, TSMC maintained its full-year revenue growth forecast of 24% to 26% in dollar terms.
Shares in Eli Lilly & Co were set to soar on Wednesday on the back of positive results of a late-stage trial of its weight-loss pill Orforglipron, which is thought to be a needle-free alternative to Novo Nordisk's popular injectable Ozempic drug. Lilly said a Phase 3 trial of Orforglipron, which is a so-called oral GLP-1 receptor agonist, demonstrated "statistically significant efficacy results and a safety profile consistent with injectable GLP-1 medicines". This was the first of seven Phase 3 studies looking at the safety and efficacy of Orforglipron across people with diabetes and obesity.
Drinks maker Pernod Ricard said on Thursday that Q3 sales had come in weaker than expected as both a late Easter and a Chinese duty-free block weighed on sales. Pernod Ricard said organic sales fell 3% to €2.27bn in Q3, principally due to duty-free sales being blocked in China as part of anti-dumping measures, as well as a wider economic slowdown and trade tariffs on European brandy that were implemented in response to new EU import duties on Chinese electric vehicles. Chinese sales volumes were down 5% in the quarter, but Pernod Ricard also said sales had declined in Germany and Spain throughout the period.
Luxury fashion retailer Hermes revealed on Thursday that it would "fully offset" the impact of Donald Trump's recently announced tariffs by hiking selling prices for all products sold in the US. Hermes said it will add a premium to all products sold in the US, in addition to its regular price adjustments, which were around 6%-7% this year. Finance chief Eric du Halgouet said: " We are going to fully offset the impact of these new duties by increasing our selling prices in the United States from May 1, across all our business lines."
Heineken was able to grow underlying revenues more than expected in the first quarter despite a challenging consumer backdrop, with the Danish brewer keeping its full-year outlook unchanged on Wednesday. The beer giant reported revenues of €7.78bn over the first three months of 2025, down 4.9% on a reported basis but 0.9% higher on an organic basis. Organic beer volumes were 2.1% lower than last year due to calendar-related factors, but net revenues per hectolitre improved by 3.3% due to an improved price-mix as the company mitigated inflationary pressures and focused on "portfolio premiumisation". |
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FTSE 100: 5 Day Chart
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UK Markets
| Index |
Value |
1 Week % Change |
| FTSE 100 |
8,275.66 |
+4.58% |
| FTSE 250 |
19,250.01 |
+3.96% |
| FTSE AIM All-Share |
668.94 |
+3.72% |
| FTSE techMARK Focus |
6,019.98 |
+1.28% |
|
Biggest Risers
| Name |
Price |
1 Week % Change |
| Helical |
208.50p |
+19.8% |
| PureTech Health |
123.40p |
+19.8% |
| SIG |
12.76p |
+19.7% |
| ASA International Group |
98.25p |
+18.7% |
| Halfords Group |
142.00p |
+18.7% |
Biggest Fallers
| Name |
Price |
1 Week % Change |
| Wood Group (John) |
20.10p |
-18.8% |
| Pharos Energy |
17.90p |
-13.5% |
| Capricorn Energy |
193.60p |
-10.0% |
| Manchester & London Investment Trust |
534.00p |
-9.5% |
| Synthomer |
81.10p |
-7.8% |
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