14th Jul 2026 07:53
(Alliance News) - BP flags lower second-quarter production but expects stronger oil price realisations, while AstraZeneca agrees a lung cancer licensing deal with Dizal Pharmaceutical worth up to USD1.5 billion.
Also, Watches of Switzerland reports double-digit growth in annual revenue and pretax profit.
In trade news, Britain agrees what it calls its largest-ever services deal with Switzerland, paving the way for UK travellers to use Swiss e-gates and scrapping roaming charges between the two countries.
Here is what you need to know before the London market open:
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MARKETS
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FTSE 100: called down 0.1% at 10,492.79
GBP: lower at USD1.3358 (USD1.3378 at previous London equities close)
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ECONOMICS
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Britain has agreed its "largest ever services deal" with Switzerland and paved the way for UK citizens to use Swiss e-gates in a bid to ease travel for professionals and holidaymakers. Roaming charges also will be scrapped for tourists and business people to and from both countries as part of the agreement, the UK Department for Business & Trade said. Prime Minister Keir Starmer hailed the agreement as another "landmark" trade deal following five others with India, the US, the EU, Gulf states and South Korea. UK nationals will be able to exit via e-gates at Zurich Airport from as soon as the end of 2026 under new arrangements – and Switzerland will set out a timetable shortly for allowing entry at Geneva and Basel as well. The UK-Swiss services mobility agreement that was due to expire in 2029 has also been put on a permanent footing in the deal, so that business people will continue to be able to supply services for up to 90 days without requiring a work permit.
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UK Chancellor Rachel Reeves is expected to use what is likely to be her final Mansion House speech as chancellor to defend her economic record, saying the economy has "beaten the odds" because of decisions taken under her stewardship. Ahead of Andy Burnham's expected arrival as prime minister next week, Reeves will argue Britain has restored credibility with financial markets and must preserve that stability to sustain growth. She is set to highlight stronger investment, productivity and wages, lower government borrowing and faster NHS waiting list reductions, while backing greater devolution and closer ties with the EU. Her speech comes ahead of UK GDP data on Thursday, with economists expecting May growth to be flat.
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BROKER RATINGS
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JPMorgan cuts Pearson to 'neutral' (overweight) - price target 1,420 (1,430) pence
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Goldman Sachs cuts Drax Group price target to 928 (940) pence - 'neutral'
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COMPANIES - FTSE 100
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BP expects second-quarter upstream production to fall to between 2.17 million and 2.22 million barrels of oil equivalent per day from 2.34 million in the first quarter, reflecting seasonal maintenance and disruption in the Middle East. However, stronger oil price realisations, improved refining margins and "slightly higher" oil trading are set to support earnings, while gas trading is expected to be broadly flat. The oil major forecasts quarter-end net debt of USD22 billion to USD23 billion, down from USD25.3 billion at the end of the first quarter, despite USD2.9 billion of hybrid bond redemptions and USD1.1 billion of Gulf of Mexico settlement payments. Second-quarter results will also include around USD500 million of exploration write-offs, approximately USD1.0 billion of post-tax impairment charges and are due on August 4.
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AstraZeneca agrees to acquire worldwide rights to lung cancer drug Zegfrovy from China's Dizal Pharmaceutical in a deal worth up to USD1.5 billion. The UK drugmaker will pay USD600 million upfront, with a further USD900 million tied to development, regulatory and sales milestones, plus royalties. Zegfrovy is already approved in the US and China for certain patients with advanced non-small cell lung cancer carrying EGFR exon 20 insertion mutations. AstraZeneca says the deal strengthens its EGFR-targeted lung cancer portfolio, while the transaction is expected to complete in the second half of 2026 and does not affect its 2026 financial guidance.
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Shell on Monday said it has sold Solenergi Power Private Ltd, which includes the Sprng Energy group of companies, to Aditya Birla Renewables Ltd for USD1.8 billion. The London-based oil major said the deal is expected to be completed by the end of 2026, subject to regulatory approval. Sprng Energy supplies solar and wind power to electricity distribution companies in India. Its portfolio consists of 5.0 gigawatts-peak of assets. Shell bought Solenergi Power Private Ltd, including Sprng Energy, back in 2022 for USD1.55 billion.
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British Land says strong occupational demand continues to support leasing activity and underpins its earnings outlook, as it reiterates guidance for at least 30.5 pence in underlying EPS for financial 2027. In the three months to June 30, the property developer completed 567,000 square feet of lettings at rents 4.8% above estimated rental value and 8.7% above previous passing rents, with a further 1.1 million square feet under offer. The company says ahead of its annual general meeting that demand continues to exceed supply across its campuses and retail parks, while it sold or exchanged GBP83 million of assets and has a further GBP223 million under offer. British Land continues to expect like-for-like rental growth at the top end of its 3% to 5% target range and forecasts estimated rental value growth of 3% to 5% across its portfolio.
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COMPANIES - FTSE 250
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Watches of Switzerland reports annual revenue of GBP1.83 billion, up 11% from GBP1.65 billion, while pretax profit jumps 76% to GBP133 million from GBP76 million and free cash flow rises 65% to GBP162 million. The luxury watch retailer says trading has started the new financial year encouragingly and reiterates guidance for 5% to 10% constant-currency revenue growth and adjusted Ebit margin expansion of 40 to 80 basis points, citing continued momentum in the US and improving conditions in the UK. CEO Brian Duffy says: "Financial 2026 was a year of strong execution against a complex operating backdrop...This was all achieved while navigating tariff-driven price and margin changes in the US and continued pressure on consumers in the UK...We see a substantial runway for long-term growth, in both revenue and profit. The US represents a major opportunity, with considerable potential for further growth and market share gains. In our home market, the UK, the trading backdrop is showing encouraging signs of improvement."
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Genus expects adjusted pretax profit for the year ended June 30 of around GBP98 million, "moderately ahead" of market consensus, after stronger-than-expected second-half trading. The animal biotechnology and genetics company says growth at its PIC pig genetics business in Asia and Latin America offset weaker North American demand, while ABS delivered double-digit profit growth. Genus also reports strong cash generation, with net leverage falling to around 0.4 times following proceeds from its Chinese porcine joint venture, leaving it well positioned for the new financial year.
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Spire Healthcare says Chair Ian Cheshire will step down by no later than September 30 after taking on the chair roles at Ofcom and Anglian Water. Senior Independent Director Debbie White will become chair-designate with immediate effect and succeed him as chair, while independent non-executive director Natalie Ceeney will take over as senior independent director.
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OTHER COMPANIES
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Capita says it will deliver training services for the British Army's Collective Training System as part of the Omnia Training consortium led by Raytheon UK. The consortium, which also includes Cervus, Rheinmetall UK and Skyral, will deliver the programme in partnership with the British Army. The 15-year contract has a total value of GBP2 billion, with Capita expected to receive GBP54 million for providing training needs analysis, scheduling, management and evaluation services.
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IQE secures a USD14 million multi-year production order from a strategic global technology customer for AI and data centre applications. The compound semiconductor supplier says the order will be manufactured at its Newport foundry and supports growing demand for high-performance storage technologies. CEO Jutta Meier says: "This highlights the role IQE plays supporting high-performance infrastructure from the datacentre to the edge, enabled by our differentiated epitaxy portfolio, which also includes indium phosphide optical communications, silicon photonics and gallium arsenide VCSEL-based datacom applications."
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Robert Walters says first-half trading is in line with expectations, with net fee income down 3% and showing sequential improvement from a 14% decline in 2025. Second-quarter net fees fall 4%, though June returns to growth with a 1% increase, and the recruitment firm says it enters the second half with good trading momentum in a number of markets.
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By Eva Castanedo, Alliance News senior economics reporter
Comments and questions to [email protected]
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Related Shares:
AstrazenecaShellBritish LandBPCapitaGenusWatches SwitzSpire HealthcareIQERobert WaltersPearsonDrax