6th Aug 2025 08:05
(Alliance News) - London's FTSE 100 opened higher on Wednesday, as investors weigh warnings of a potential tax increase in the UK and ahead of talks between Russia and the US.
In early corporate news, Glencore reports a widened interim loss, while TP ICAP reports "record" revenue for its first half.
Here is what you need to know before the London market open:
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MARKETS
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FTSE 100: opened 0.3% higher at 9,166.68
GBP: up slightly at USD1.3303 (USD1.3301 at previous London equities close)
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BROKER RATINGS
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DZ Bank raises BP to 'buy' (hold) - fair value 465 (360) pence
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Jefferies cuts Travis Perkins price target to 600 (658) pence - 'hold'
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Berenberg starts Luceco with 'buy' - price target 160 pence
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COMPANIES - FTSE 100
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Glencore posts a pretax loss of USD1.13 billion for the six months that ended June 30, widened from a USD370 million loss the year before. This is partly driven by the mining firm's selling and administrative expenses rising 22% to USD1.21 billion from USD991 million, a USD136 million impairment of financial assets against a USD16 million reversal a year earlier, and interest expenses increasing 11% to USD1.57 billion from USD1.41 billion. Revenue edges up 0.3% to USD117.40 billion from USD117.09 billion the year prior. Adjusted earnings before interest, tax, depreciation and amortisation sink 14% to USD5.43 billion from USD6.34 billion, primarily the result of weaker coal prices and lower copper volumes. "While our zinc and coal assets are largely operating at the required run rates to deliver full-year volumes, our copper business is currently navigating various temporary, but largely expected, operational factors, including mine sequencing, lower grades, water constraints and cobalt stockpiling. These significantly impacted H1 2025 production at Collahuasi, Antamina, Antapaccay and KCC, with all these operations expecting a substantial step-up in H2", explains Chief Executive Officer Gary Nagle. "While there is much uncertainty around the impacts of geopolitics and trade in the shorter-term, we remain of the view that, in certain commodities, the scale and pace of required resource development will struggle to meet the demand projections for such materials into the future. We are well placed to participate in bridging this gap, through the flexibility embedded in both our Marketing and Industrial businesses to respond to global needs." Glencore will pay the second tranche of its USD0.05 per share base dividend in September, and continues to progress its ongoing share buyback programme for up to USD1 billion. The buyback was launched last month after Glencore closed the merger between its former agriculture investment Viterra and New York-listed Bunge Global. The deal generated USD900 million in cash for Glencore, which was received in addition to a 16.4% stake in the enlarged firm. Glencore on Tuesday said its shareholders have endorsed its plan to enter into a contract that will see UBS run the buyback programme, which is expected to wrap up by the time of its full-year results release in February next year.
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Legal & General reports pretax profit of GBP476 million for its first half to June 30, rising 7.9% from GBP441 million a year earlier. Core operating profit grows 6.2% to GBP859 million from GBP809 million. Pretax profit for its Institutional Retirement unit jumps 37% to GBP400 million from GBP291 million, while its Asset Management division falls 51% to GBP78 million from GBP159 million and Retail advances 1.9% to GBP163 million from GBP160 million. Its Corporate Investments business posts a narrowed pretax loss of GBP34 million against a GBP116 million loss the year before. The insurer declares an interim dividend of 6.12 pence per share, up 2.0% on-year from 6.00p. "The outlook for our businesses is positive and we are firmly on track to achieve our financial targets," says Chief Executive Officer Antonio Simoes. "We are delivering on our promise to return more to shareholders with over GBP5 billion in dividends and share buybacks over three years." Looking ahead, Legal & General continues to expect full-year core operating earnings per share growth within its three-year target range of 6% to 9%. In the medium-term, the company is also targeting a more than 20% operating return on equity between 2025 and 2027.
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Pershing Square says its investment manager, Pershing Square Capital Management, has proposed changes to the management deal that will reduce the management fees paid by Pershing Square Holdings. The amendments follow the investment manager's purchase of USD900 million of shares in Howard Hughes, bringing Pershing's total stake to 46.9%. The management fee reduction will be equal to the fees payable to the investment manager by Howard Hughes. The trust also announces a voting proxy deal, agreed alongside Pershing Square LP, Pershing Square International and the investment manager's holding company Pershing Square Holdco. The voting proxy deal gives the trust's investment manager sole authority to determine how to vote securities held by Pershing Square, unless otherwise specifically agreed under the terms of the agreement.
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COMPANIES - FTSE 250
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TP ICAP reports a "record" level of revenue growth in its first half, with revenue rising 7.0% to GBP1.22 billion in the six months that ended June 30 from GBP1.14 billion the year before. Specifically, its Global Broking and Liquidnet franchises reach "all-time high levels of profitability", the financial services firm says, with revenue for each business up 12% and 15% respectively. Group pretax profit grows 2.5% to GBP123 million from GBP120 million, as total operating costs increase 6.9% to GBP1.09 billion from GBP1.02 billion. The company declares an interim dividend of 5.2 pence per share, up 8.3% on-year from 4.8p. "Capital discipline remains a key priority," says Chief Executive Officer Nicolas Breteau. "We are launching another GBP30 million buyback, our fifth in 24 months...Furthermore, based on our current outlook, and in line with our capital allocation framework, the group anticipates it can organically generate in excess of GBP200 million across 2026 and 2027, to be made available for investment in the business and shareholder returns over the same period." TP ICAP notes, however, that its outlook is "largely subject to macroeconomic events which impact market conditions, and therefore levels of trading in the OTC market. Ongoing geopolitical tensions, including uncertainty surrounding global trade policies, inflation, as well as future interest rate movements, should continue to drive volatility that will broadly support our business in the second half for 2025...We anticipate remaining well placed to deliver sustainable shareholder value over the medium term".
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OTHER COMPANIES
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THG agrees to divest Claremont Ingredients, a flavour manufacturing and development laboratory for sports nutrition, from its THG Nutrition business for around GBP103 million in cash. The sale is being made to Nactarome Group, which is majority-owned by TA Associates. THG says the disposals marks a "significant" return on its investment, as the retail firm bought Claremont Ingredients in late 2020 for GBP52 million. Claremont reported around GBP14 million in revenue in 2024. Proceeds from the sale will contribute towards reducing net leverage and borrowing costs, in line with THG's capital allocation strategy targeting a neutral net cash and net debt position. As a result of the disposal, THG's full-year earnings before interest, tax, depreciation and amortisation for 2025 and 2026 are expected to reduce by around GBP5 million and around GBP10 million respectively. For the first half to June 30, THG expects to post adjusted Ebitda of roughly GBP24 million, down 35% from GBP37.1 million the year before, due to "substantially higher" whey pricing in its Nutrition segment. The company's interim results will be published in September.
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By Emily Parsons, Alliance News reporter
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Related Shares:
GlencoreLegal & GeneralPershing Square HoldingsTP ICAPThgBPTravis PerkinsLuceco