4th Aug 2025 08:03
(Alliance News) - London's FTSE 100 opened higher on Monday, as the US plans an extension of its tariff pause with China and small businesses in the UK brace for the impact of US tariffs on exports.
In early corporate news, Clarkson reports a 25% decline in interim profit due to a "complex" market environment, and Kosmos Energy swings to a loss in its first half as production falls short of guidance.
Here is what you need to know before the London market open:
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MARKETS
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FTSE 100: opened 0.2% higher at 9,083.44
GBP: up at USD1.3287 (USD1.3247 at previous London equities close)
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BROKER RATINGS
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HSBC cuts Shell to 'hold' (buy) - price target 2,950 (2,900) pence
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JPMorgan raises Lloyds Banking to 'neutral' (underweight) - price target 85 (79) pence
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Berenberg raises ITM Power to 'buy' (hold) - price target 100 (59) pence
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COMPANIES - FTSE 100
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BP announces an oil and gas discovery at the Bumerangue exploration well, offshore Brazil. The oil major says rig-site analysis indicate elevated levels of carbon dioxide at well 1-BP-13-SPS at the block located in the Santos Basin, adding that the well penetrated an estimated 500 metre gross hydrocarbon column in pre-salt carbonate reservoir with an areal extent of more than 300 square kilometres. BP will now begin further laboratory analysis. "We are excited to announce this significant discovery at Bumerangue, BP's largest in 25 years. This is another success in what has been an exceptional year so far for our exploration team, underscoring our commitment to growing our upstream. Brazil is an important country for bp, and our ambition is to explore the potential of establishing a material and advantaged production hub in the country," says Gordon Birrell, BP's executive vice president for Production & Operations. Bumerangue is BP's tenth discovery to date in 2025, and the company holds a 100% participation in the block with Pre-Sal Petroleo as the production sharing contract manager. BP maintains its aims to grow its global upstream production to 2.3 to 2.5 million barrels of oil equivalent a day in 2030, with the capacity to increase production out to 2035.
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ConvaTec says Chief Executive Officer Karim Bitar will take a medical leave of absence from the company for an undetermined period of time. Current Chief Financial Officer Jonny Mason will assume the role of interim CEO, and current Group Financial Controller Fiona Ryder will become interim CFO. Both Mason and Ryder have been at Convatec since January 2022.
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Lloyds Banking will not change its motor finance redress provision due to remaining "uncertainties", following a decision by the Supreme Court on Friday to overturn a ruling that would have seen motorists due compensation for potentially deceptive commission payments made to car dealers as part of finance arrangements. "The group's approach therefore continues to include the assessment of multiple scenarios", the bank says, as "the ultimate impact on the group will be determined by a number of factors still to be resolved". Lloyds notes the UK Financial Conduct Authority on Sunday announced it will propose a scheme to cover discretionary commission arrangements, which the FCA estimates will cost at least GBP9 billion. "After initial assessment of the Supreme Court judgment, and pending resolution of the outstanding uncertainties, in particular the FCA redress scheme, the group currently believes that if there is any change to the provision it is unlikely to be material in the context of the group. The provision will continue to be reviewed for any further information that becomes available, with an update provided as and when necessary," Lloyds explains. Merchant bank Close Brothers welcomed the outcome of the appeal, adding it provides clarity on important legal and commercial principles. It also noted uncertainties until the FCA confirms whether it will consult on a redress scheme.
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COMPANIES - FTSE 250
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Clarkson reports pretax profit of GBP37.5 million for the six months that ended June 30, falling 25% from GBP50.1 million the year before. Revenue slips 1.1% to GBP297.8 million from GBP301.1 million, while cost of sales increases 9.5% to GBP18.5 million from GBP16.9 million. The shipping and offshore services provider declares an interim dividend of 33 pence per share, up 3.1% on-year from 32p. "Clarksons has delivered another good performance in the first half of the year, demonstrating the resilience and adaptability of our business in what remains a highly complex global environment. While we have continued to navigate a backdrop of shifting economic conditions and evolving trade dynamics, our diversified model and disciplined approach have enabled us to maintain momentum," says Chief Executive Officer Andi Case. "We will continue our commitment to invest in people, technology, and market intelligence to ensure that we are well positioned to support our clients and deliver long-term value." Clarkson expects full-year results to be second-half weighted and in line with its existing forecast for underlying pretax profit between GBP85 million and GBP95 million, against GBP115.3 million in 2024.
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OTHER COMPANIES
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Kosmos Energy swings to pretax loss of USD63.8 million for the second quarter that ended June 30, from a USD135.1 million profit the year before. Pretax loss for the first half is USD157.8 million, against a USD277.1 million profit a year earlier. This is driven by total costs and expenses in the first half of the year rising 42% to USD841.7 million from USD593.0 million. First-half revenue declines 21% to USD683.9 million from USD870.1 million, including a second-quarter revenue slide of 13% to USD393.5 million from USD450.9 million. "On the balance sheet, we are enhancing resilience through increasing liquidity and additional hedges for 2026 with further progress expected as we pursue additional initiatives through the second half of the year," says Chair & Chief Executive Officer Andrew Inglis. "With production rising, costs falling and balance sheet resilience improving, we look forward to delivering long-term value for our shareholders through the second half of the year and beyond." Total net production in the second quarter averages around 63,500 barrels of oil equivalent per day, lower than guidance as a result of ramp up timing on its Greater Tortue Ahmeyim liquefied natural gas project and lower production at the Jubilee wells, in which Kosmos holds a 38.6% working interest. Kosmos forecasts full-year GTA production at roughly 20 gross LNG cargos, and sets overall production guidance for the year between 65,000 and 70,000 boepd. Net production in 2024 was around 66,800 boepd.
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Metlen Energy & Metals starts trading in Athens and on the equity shares (commercial companies) segment of London's Main Market from Monday, with a market capitalisation of EUR6.08 billion. The Maroussi, Greece-based environmentally-focused "green utility" business operating in the energy and metallurgy mining sectors says the reference price of ordinary shares is EUR47.16 per share, equal to the closing price of Metlen SA shares in Athens on Friday. The firm last week reported the success of a tender exchange offer for all shares of Metlen SA which it did not already hold, with around 90% of Metlen SA shares validly tendered when the acceptance period ended on Friday. Metlen plans to use its right of squeeze-out, which requires holders of the remaining 14.1 million Metlen SA shares to exchange their shares either for new Metlen shares or EUR39.62 in cash per share. The company expects to join the FTSE UK Index Series in September.
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By Emily Parsons, Alliance News reporter
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Related Shares:
ShellLloydsItm PowerBPConvaTecClarksonKosmos EnergyMetlen EnergyClose Bros