Weekly review
By Josh White
Date: Friday 18 Jul 2025
(Sharecast News) - The FTSE 100 ended the week up 51 points, or 0.57%, closing at 8,992.12 on Friday.
Equity view
Consumer products giant Reckitt Benckiser has announced it is selling off a controlling share in its Essential Home division to private equity firm Advent International in a deal that values the portfolio at $4.8bn. The transaction, which will see Reckitt retain a 30% equity stake in business, will see the company return $2.2bn to shareholders via a special dividend along with a share consolidation upon completion
Engineering firm Senior on Friday said it was selling its aerostructures business to Sullivan Street Partners, a UK-based private equity investor, for a total enterprise value of up to £200m. The proceeds will be used to reduce net debt and fund a £40m share buyback programme, Senior said in a statement.
Luxury fashion house Burberry said on Friday that retail revenues fell by 6% to £433.0m in the three months ended 28 June as the external environment remained "challenging". Burberry said comparable store sales were up 1% in its Europe, Middle East, India & Africa segment and 4% in the Americas, but dropped 5% in Greater China and 4% in its Asia-Pacific segment.
Australian mining giant BHP flagged a cost overrun of up to $1.7 billion at its Jansen potash fertiliser project in Canada and also reported record copper and iron ore output. The company also flagged a delay in first production to mid-2027 and said it now expected to spend between $7bn - $7.4bn for the first stage of the Jansen project, from an original estimate of $5.7bn.
Multinational energy company SSE said on Thursday that a final investment decision has been taken to build its Platin power station in County Meath. SSE said the €300.0m, 170MW plant was designed to run on hydrotreated vegetable oil, with the potential to convert to hydrogen. Completion was expected to take place in 2028.
Ocado Group has said its full-year outlook remains on track after swinging to a big profit in the first half, in which both the tech and logistics divisions delivered double-digit top-line increases. The company, which offers grocery fulfilment tech as well as owning a 50% share in Ocado Retail with M&S, said that current exclusivity terms with customers are expected to "roll off" in multiple markets towards the end of the year, as it guided to a slight softening of revenue growth over the second half.
Technology firm NCC confirmed late on Wednesday that it is in the early stages of reviewing all strategic options for its cyber business should the sale of the Escode arm be agreed. The company announced in April that it was exploring options for the Escode business that included a potential sale.
Budget airline EasyJet said on Thursday that pre-tax profits had grown to £286,0m in the three months ended 30 June, up £50.0m year-on-year, but warned that profits would be impacted by recent French industrial action. EasyJet said Q3 profit growth was driven by "strong demand" for its primary airport network and benefited from the timing of Easter. Airline passenger numbers increased 2% to 25.9m, while load factor improved by 0.2ppts to 90.2%.
Household products group McBride has said that profits will meet market expectations for the financial year ended 30 June, though it is seeing signs of a stabilisation in demand in the private label markets. The company, which produces white label cleaning and hygiene products as well as its own brands, said that, due to continuing inflationary pressures, "many retailers are seeking value to support their consumer proposition with an increased requirement for cost out actions to support lower market pricing".
Mining giant Antofagasta said on Wednesday that it had recorded increased production at its two largest copper mining districts, Los Pelambres and Centinela. On a quarter-on-quarter basis, group-level copper production increased by 3% and net cash costs fell by 27%, with costs benefiting from gold and molybdenum by-products, of which production was up 13% and 42%, respectively.
Clinical-stage biotherapeutics company PureTech Health said on Wednesday that chief executive officer Bharatt Chowrira has stepped down with immediate effect. The board of directors has appointed Robert Lyne as interim CEO with immediate effect. Lyne joined PureTech as chief portfolio officer in January 2024 and is an experienced leader of UK-listed life science innovation and venture capital companies, having previously served as CEO of Arix Bioscience.
Rio Tinto on Wednesday revealed that US tariffs added $300m in first half costs on aluminium exports from Canada. While a "substantial" part of the extra cost was offset by higher premiums on US sales when the 25% tariff was introduced in March, the premium could no longer fully compensate when President Donald Trump doubled duties on Canadian aluminium to 50% in June.
Close Brothers said it has reached a deal to sell Close Brewery Rentals to MML Capital for an undisclosed sum as it moves to simplify its portfolio. Established in 2007, CBRL provides rental and maintenance services for brewery containers such as kegs and casks in the UK.
Irish hotel giant Dalata is to be bought by Scandinavian property companies Pandox and Eiendomsspar for €1.4bn, the companies said on Tuesday. Dalata shareholders will receive €6.45 cash per share, a premium of about 12% to the closing price on June 2 - the day before the two investors first disclosed their interest.
Recruiter Robert Walters struck a downbeat tone on the outlook on Tuesday as it reported a drop in second-quarter fee income on Tuesday, citing macroeconomic uncertainty. Group net fee income fell 13% on the same period a year ago to £72.7m. The company said that while net fees were higher than in the first quarter, macroeconomic uncertainty became more pronounced, with forward indicators - new job flow and interviews - slightly weaker compared to the end of the first quarter.
Rio Tinto on Tuesday said it had appointed its iron ore chief Simon Trott to succeed Jakob Stausholm as chief executive of the mining giant. Trott's appointment will take effect from August 25, Rio said in a statement.
GSK said the US Food and Drug Administration has accepted an application for review to extend the indication of its Arexvy respiratory syncytial virus vaccine to adults aged 18-49 who are at increased risk. The vaccine is approved in the US for the prevention of lower respiratory tract disease caused by RSV in adults aged 60 and older, and for those aged 50-59 years who are at increased risk. A regulatory decision by the FDA on this submission is expected in the first half of 2026.
Asset manager Ashmore said on Monday that assets under management increased by $1.4bn over the three months ended 30 June, made up of a positive investment performance of $2.2bn and net outflows of $800.0m. Ashmore said net flows improved from Q3, with "significantly lower" redemptions, against a backdrop of "continuing trade tensions and geopolitical uncertainty", while subscription levels were consistent.
AstraZeneca has announced that its Baxdrostat hypertension treatment met the primary and secondary endpoints in a Phase III trial. The drug, which was tested in patients with uncontrolled or treatment-resistant hypertension over 12 weeks, demonstrated a "statistically significant and clinically meaningful reduction" of systolic blood pressure compared with the placebo, the pharma giant said.
Supermarket Income REIT said it had bought a Tesco supermarket in Ashford, Kent, for £54.1m at a net initial yield of 7%. The store comprises a 93,000 sq ft gross internal area omnichannel supermarket and a petrol filling station, situated on an 8.2 acre site.
Economic news
The government is preparing to scrap Ofwat, the water regulator for England and Wales, as part of sweeping reforms following a damning review of the sector, according to a report from the Guardian on Friday. A consultation on creating a new water regulator was expected to be announced next week, the Guardian said, timed to coincide with the publication of a government-commissioned review led by Sir Jon Cunliffe, the former deputy governor of the Bank of England.
The UK unemployment rate unexpectedly ticked higher in May, while pay growth slowed, according to figures released on Thursday by the Office for National Statistics. The unemployment rate rose to 4.7% in the three months to May from 4.6% a month earlier, hitting the highest level since early 2021. Economists were expecting the rate to remain unchanged.
House price inflation picked up in May as activity increased following a dip the previous month, signalling a slight rebound in activity following a stamp duty-related slump in April, while rents continued to climb. According to data from the Office for National Statistics on Wednesday, the average house price was £269,000 in May, up 3.9% over the year before, with the growth rate rising from 3.6% in April.
UK inflation continued to push higher last month, official figures showed on Thursday, outstripping forecasts. According to the Office for National Statistics, the consumer prices index rose by 3.6% in the 12 months to June, up from 3.4% in May and the highest since January 2024, when it was 4.0%. Analysts had largely expected the rate to remain unchanged.
Retail sales jumped in June, industry data showed on Tuesday, fuelled by demand for summer foods and electric fans as shoppers tried to beat the heat. According to the latest data from the British Retail Consortium and KPMG, UK total retail sales rose 3.1% year-on-year last month, compared to June 2024's 0.2% slip.
Further signs of a cooling down of the UK labour market were announced on Monday after a closely followed jobs survey indicated that candidate availability increased at its sharpest rate in four and a half years in June. The Report on Jobs, published jointly by KPMG and the Recruitment & Employment Confederation (REC), said that its index for the supply of labour rose to 66.1 last month from 63.3 in May, reaching a high not seen since November 2020.
The governor of the Bank of England has signalled larger cuts to interest rates could be on the cards, as the labour market loosens. Speaking in an interview with The Times, Andrew Bailey said there had been "consistent" evidence that firms had been "adjusting employment" following April's hike to employers' National Insurance contributions. This, he argued, would help bring down inflation, paving the way for further interest rate cuts.
International events
Consumer sentiment in the States only improved a tad, albeit alongside a second consecutive sharp fall in inflation expectations, the preliminary results of a closely-followed survey revealed. The University of Michigan's headline consumer confidence index edged up from a reading of 60.7 for June to 61.8 for July - a five-month high but still 16% below the end 2024 level.
Construction output across the eurozone slumped in May following the biggest monthly surge in four years in April, according to data from Eurostat on Friday. Seasonally adjusted production in construction fell by 1.7% in May, with building construction down 1.3%, civil engineering production down 0.7% and specialised construction activities dropping 1.7%.
Wholesale price deflation in Germany picked up to its steepest rate in nine months in June, according to the Federal Statistical Office on Friday. The producer price index fell at a year-on-year clip of 1.3% last month, following a 1.2% drop in May, Destatis reported. This was the fourth straight month of annual producer price deflation and in line with economists' predictions.
Americans lined up for unemployment benefits at a decelerated pace in the week ended 12 July, according to the Labor Department. Initial jobless claims fell by 7,000 to 221,000, well below market expectations of a rise to 235,000 for the lowest number of new claims since April.
Eurozone inflation rose as expected in June, according to final estimates released on Thursday by Eurostat, with consumer prices increasing in line with the European Central Bank's target rate of 2%. The annual increase in the consumer price index for the single-currency region was confirmed at 2.0% in June, up from the eight-month low of 1.9% registered in May.
June's producer price index revealed annual producer inflation fell to 2.3% year-on-year in June to the lowest level seen since September 2024, according to the Bureau of Labor Statistics, compared to an upwardly revised 2.7% increase in May and below forecasts of a 2.5% increase. On a monthly basis, however, producer prices were flat against May's upwardly revised 0.3% increase, ahead of the 0.2% increase expected by economists. Services prices were down 0.1%, while goods prices rose 0.3% month-on-month.
US mortgage applications fell by 10% in the week ended 11 July, according to the Mortgage Bankers Association of America. Last week's drop more than reversed the prior week's 9.4% increase as mortgage applications registered the sharpest decline in almost three months, as benchmark mortgage rates increased by five basis points.
Donald Trump has warned stringent tariffs on pharmaceutical products and semiconductors could come into force in a little over a fortnight, as his erratic global trade war continued. Speaking to journalists late on Tuesday, the US president said taxes on drug imports could be unveiled "probably at the end of the month, and we're going to start off with a low tariff and give the pharmaceutical companies a year or so to build, and then we're going to make it a very high tariff".
The eurozone's trade surplus widened by more than expected in May after a significant fall the month before, as ongoing US tariff uncertainty continued to cause dramatic swings in exports. The trade balance for the single-currency region increased to €16.2bn in May, according to figures from Eurostat released on Wednesday, coming in ahead of the €13bn consensus estimate.
Industrial production in the Eurozone sparked in May, official data showed on Tuesday, comfortably beating expectations as US buyers stocked up ahead of tariffs coming into force. According to Eurostat, the statistical office of the European Union, production rose by 1.7%, a notable improvement on April's 2.2% slide and ahead of forecasts for a more modest 0.9% rise.
Investor sentiment across the eurozone improved to a four-month high this month, but still came in shy of market estimates. The ZEW economic expectations index, which surveys institutional investors and analysts, inched 0.8 percentage points higher to 36.1% for July. This was up from the third straight increase following a temporary dip below the zero mark in April, but below the consensus forecast of 37.8%.
German investor sentiment improved more than expected in July, according to a survey released on Tuesday by the ZEW Center for European Economic Research in Mannheim. The economic sentiment index rose to 52.7 from 47.5 in June, coming in above expectations for a reading of 50.3. The index for the current economic situation rose to -59.5 in July from -72 a month earlier.
China's economy grew faster than expected in the second quarter, according to official data published on Tuesday, despite pressure from US tariffs. GDP expanded by 5.2% in the three months to June, the National Bureau of Statistics said, beating estimates of 5.1%, but slower than the first quarter's 5.4%.
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