Weekly review
By Michele Maatouk
Date: Friday 14 Aug 2026
(Sharecast News) - The FTSE 100 ended down 0.2% at 10,750.11 on Friday.
Equity view
Insurance firm Aviva posted a strong set of interim results on Friday, with operating profits rising 24% to £1.33bn as the insurer continued to build momentum across its core markets and benefited from the integration of Direct Line. Operating earnings per share increased 10% to 31.8p, while IFRS return on equity improved to 20.3%, up from 18.2% a year earlier. However, IFRS profits for the period fell to £418m from £819m, reflecting negative investment variances linked to hedging and integration costs.
Diversified Energy confirmed on Friday that it has had preliminary discussions about a possible acquisition of oil and gas company Birch Resources. Talks are ongoing and remain at an early stage and no agreement has been reached, it said. It added that there is no certainty any transaction will occur, nor as to the terms on which any transaction might proceed.
Shares in gambling operator Rank jumped more than 5% on Thursday after it reported higher annual earnings. The casino and bingo hall owner said underlying operating profit increased 21 to £78.6m in the year to June 30. Grosvenor casinos delivered a 5% rise in average weekly net gaming revenue to £7.6m, helped by higher customer visits and spend per visit. The rollout of 850 gaming machines across 37 casinos and ongoing optimisation work supported growth, though table gaming was softer late in the year due to the conflict in the Middle East.
Copper miner Antofagasta posted a strong first‑half performance on Thursday, delivering higher earnings and margins, but shares fell in early trading as investors focused on weaker production and a reduced full‑year output outlook. Underlying earnings rose 27% year‑on‑year to $2.84bn, driven by an 18% increase in revenues to $4.48bn, supported by sharply higher realised prices. EBITDA margins widened five percentage points to 63.4%, while pre‑tax profits jumped 72% to $1.99bn and earnings per share climbed 62% to 85.9 cents.
Mike Ashely's Frasers Group confirmed on Thursday that it has bought department store chain Harvey Nichols from FTI Consulting after it went into administration. Frasers, which did not disclose any financial details, said the deal includes Harvey Nichols' portfolio of six stores including the newly refurbished Knightsbridge London flagship, Manchester, Birmingham, Bristol, Leeds, and Edinburgh, together with its online business, existing inventory and over 1,000 employees.
Savills backed its full-year expectations on Thursday as it posted a rise in first-half profit and revenue, with year-on-year growth across all business segments and a "significant" improvement in profitability in North America. In the six months to the end of June, underlying pre-tax profit was up 47% to £34.4m, on revenue of £1.2bn, up 9% on the same period a year earlier. Savills said revenue was driven by strong growth in its transactional businesses across all regions, a resilient performance from its less transactional businesses and the positive impact of previous restructuring.
Infrastructure construction group Balfour Beatty said full‑year performance is now expected to be slightly ahead of prior guidance, with the group forecasting low double‑digit profit from operations growth from its earnings‑based businesses and pointing to a £22.9bn order book and strong growth markets underpinning a positive outlook. The company on Wednesday posted a jump in first half underlying profit to £139m from £95m driven by rising demand in the UK and US. It now expects low-double-digit percentage growth in profit from operations in fiscal 2026, above the high-single-digit percentage growth previously forecast.
Mike Ashley's Frasers Group is reportedly putting the finishing touches to a rescue deal for department store chain Harvey Nichols. According to Sky News, Frasers is hoping to announce the acquisition through a pre-pack insolvency process on Thursday, after weeks of negotiations.
William Hill and 888 owner Evoke reported a drop in interim profit on Wednesday and flat revenue, as it took a hit from gaming duties. In the six months to the end of June, adjusted earnings before interest, tax, depreciation and amortisation fell 10% from the same period a year earlier to £150.2m, while revenue was flat at £887.5m.
InterContinental Hotels on Tuesday said it was on track to meet full-year earnings estimates as it reported a 10% jump in profits driven by better-than-expected demand globally. The Holiday Inn owner said revenue per available room - a key industry metric - grew 4.1% in the six months to June 30 as trading in the US accelerated in the second quarter due to the football World Cup, although it did slow in the second quarter to 3.5% from 4.4% in the first three months of the year.
Genuit said its expectations for the full year remain unchanged despite a sharp fall in interim profit, with pricing action, cost control and a strengthening infrastructure pipeline expected to support an improvement from next year. Revenue rose 3.4% to £307.8m in the six months to June 30, while underlying operating profit slipped 1.6% to £43.9m and underlying profit before tax fell 5.2% to £36.8m.
Thermal energy and fluid technology firm Spirax Group said on Tuesday that first‑half profits rose sharply, with margins also improving as it delivered organic growth ahead of global industrial production and reiterated its full‑year guidance. However, Spirax also cautioned that corporate costs would be higher this year due to increased investment in digital and services. Spirax said corporate costs would rise versus 2025 as it continued to invest in future growth initiatives, particularly across digital and services. Excluding those investments, underlying corporate costs were expected to grow broadly in line with inflation, while net financing costs, its effective tax rate and cash conversion were anticipated to be similar to last year.
Hybrid workspace provider IWG reported increased first‑half revenues on Tuesday but said operating profits had fallen sharply, with increased overheads and investment weighing on earnings despite continued network expansion. IWG said group revenue had risen 6% year‑on‑year to a record $2.0bn, driven by strong system‑wide growth of 11% to $2.4bn and further expansion across its managed and franchised network. Recurring management fee income jumped 84% to $35m, while company‑owned revenue grew 5% to $1.9bn.
Bellway said on Tuesday that it built more homes than expected in the year to the end of July, but also cautioned that the near-term outlook remained uncertain as it called on the government to introduce an immediate cut to stamp duty to boost demand. Total housing completions rose 10.8% to 9,695, coming in above the company's previously guided range of 9,300 to 9,500 homes, mainly driven by a strong conversion from its bulk sales pipeline.
Plus500 shares jumped by 5% on Monday as the fintech kept its full-year outlook unchanged and delivered record interim revenues, although expenditure on US expansion saw profits edge ahead by 1%. Revenue for the six months to June 30 rose 12% year on year to $462.9m while customer income jumped 24% to a five‑year high of $460.8m/ Core earnings were up 1% to $187.5m.
Building products manufacturer Marshalls said on Monday that adjusted profits had risen in the six months ended 30 June despite slightly lower year‑on‑year revenues, driven by improved execution and early benefits from its landscaping turnaround plan. Adjusted operating profits increased 8.1% to £30.7m, driven by a recovery in landscaping products as service levels and customer engagement improved, while adjusted earnings per share rose 14.4% to 7.6p, helped by lower finance costs and a reduced tax rate. Adjusted pre-tax profits grew 13.2% to £24.9m.
Vistry tumbled on Monday following a report that leading credit insurer Allianz Trade is reducing the cover it extends to suppliers of the housebuilder. According to the Financial Times, which cited people familiar with the matter, the insurer warned suppliers in recent weeks that it is adjusting its credit limits for Vistry, which could result in cover being reduced by up to 70%. One of the sources said that the final level of cover provided will depend on Vistry's financial performance in the weeks ahead.
Vimto maker Nichols said on Monday that it has bought VitHit, a maker of low-calorie, low-sugar drinks, for €75m in cash. Founded in Dublin in 2001 by former rugby player Gary Lavin, VitHit offers a portfolio of beverages fortified with vitamins and functional ingredients. Nichols said the products offer 100% of the recommended daily allowance of eight essential vitamins through a portfolio that spans bottled ready-to-drink beverages, sparkling cans and effervescent products, serving "a range of health and wellness consumption occasions".
Imperial Brands is reportedly preparing to cut thousands of jobs in critical markets, including the US and Europe, as part of a sweeping cost-cutting drive. According to Bloomberg, which cited people familiar with the matter, the tobacco company will begin notifying affected staff at ITG Brands - a subsidiary covering the US, the Dominican Republic and Puerto Rico - first from 19 August.
Economic news
Growth in the UK economy eased in the second quarter, as expected, according to figures released on Thursday by the Office for National Statistics. The economy grew 0.4% between April and June, down from 0.6% in the first quarter. The services sector was the biggest contributor to growth, expanding 0.5%, while the construction sector grew 0.3% and production output showed no growth.
UK consumer confidence hit its highest level in nearly two years in July as hospitality and leisure spending was boosted by warm weather and the World Cup, according to data released by Barclays on Tuesday. Confidence in the strength of the UK economy reached 30%, hitting a 21 month-high and marking a six-percentage point improvement on the month. Confidence in the European economy also grew, climbing six points to 35% - the highest level recorded since Barclays started tracking the measure in 2015
International events
US consumer sentiment weakened sharply in August, according to preliminary figures from the University of Michigan, with all major measures of household confidence deteriorating on both a monthly and annual basis. The headline index fell to 51.0 from 55.2 in July, leaving it more than 12% lower than a year earlier, while the current economic conditions gauge slipped to 51.8 from 54.8, and the index of consumer expectations dropped to 50.6 from 55.4, reflecting a broad pullback in views on the economic outlook.
US retail sales fell 0.6% month‑on‑month in July, according to the Census Bureau, sharply missing forecasts for a small increase and more than reversing June's 0.2% gain. July's reading marked the first decline since October 2025 and the largest drop since May last year. The weakness was broad‑based, led by a 2.2% fall in non‑store retailers, a 1.8% decline at motor vehicle and parts dealers, a 0.9% drop at gasoline stations and a 0.5% decrease at electronics and appliance stores.
Americans lined up for unemployment benefits at an accelerated pace in the week ended 8 August, according to the Labor Department, with initial claims coming in ahead of Wall Street estimates. Initial claims rose by 9,000 to 209,000 ahead of expectations for a reading of 202,000, while the four-week moving average, which aims to strip out week-to-week volatility, was unchanged week-on-week at 199,000. Meanwhile, continuing claims declined by 22,000 to 1.77m.
Norges Bank kept its deposit rate at 4.25% on Thursday, as widely expected and for the second meeting in a row, but suggested there could be more tightening ahead. Governor Ida Wolden Bache said: "Inflation has slowed and been lower than projected this summer. Slower inflation is welcome news, but inflation is still too high, and it is too early to conclude that the inflation outlook has changed materially. "It may thus still become necessary to raise the policy rate."
US inflation eased in July, with the headline consumer price index slipping to 3.4% year‑on‑year, down from 3.5% in June, as petrol prices fell, even as the economic impact of the conflict in Iran continued to filter through. The softer headline figure was driven by another decline in energy costs as, despite pump prices surging later in the month amid heightened tensions with Iran, petrol was still 2.9% lower on average than in June. Heating oil and other energy components also contributed to the overall moderation.
Germany's consumer price index rose 0.8% month‑on‑month and 2.8% year‑on‑year in July, with Destatis confirming provisional estimates and that inflation pressures had intensified yet again. The increase to the annual inflation rate was largely driven by a sharp rise in energy costs, with energy prices were 8.3% higher year-on-year in July as the end of the government's temporary fuel‑tax cut on 30 June pushed motor‑fuel prices up 23%.
US existing‑home sales dipped in July, with the National Association of Realtors reporting a 1.7% month‑on‑month decline, though activity was 0.7% higher than a year earlier at an annualised 4.06m units. Total inventory stood at 1.54m homes, down 1.9% from June and 0.6% from July 2025, leaving supply unchanged at 4.6 months, while the median existing‑home price rose 2% year‑on‑year to $434,100, marking the 37th consecutive month of annual price gains.
The National Federation of Independent Business' small business optimism index rose to 99.8 in July, its strongest reading since last August, up from 97.4 in June and ahead of expectations. Eight of the index's ten components improved, with hiring plans showing the biggest gain. Real sales expectations and reports of inventories being "too low" both slipped by two points.
The Reserve Bank of Australia maintained the official cash rate at 4.35% on Tuesday, as widely expected, following three hikes earlier in the year. The RBA, which pointed to rising unemployment and a weak property market, said its policy decision was unanimous.
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