10th Jul 2026 12:16
(Alliance News) - Stock prices in London were slightly higher at midday on Friday, in a calmer day on the markets, as oil prices eased a little and easyJet was boosted by takeover activity.
The FTSE 100 index was up 4.79 points, 0.1%, at 10,477.24. The FTSE 250 was up 32.36 points, 0.1%, at 23,272.92, and the AIM all-share was up 2.34 points, 0.3%, at 764.65.
The Cboe UK 100 was up 0.1% at 1,039.62, the Cboe UK 250 was down 0.1% at 19,966.11, and the Cboe small companies was up 0.2% at 18,376.16.
In European equities on Friday, the CAC 40 in Paris and the DAX 40 in Frankfurt were both little changed from Thursday's close.
The pound was quoted at USD1.3435 at midday on Friday, up from USD1.3397 at the London equities close on Thursday. Against the euro, sterling strengthened to EUR1.1746 from EUR1.1717.
The euro was flat at USD1.1433 from USD1.1432. Against the yen, the dollar slipped to JPY161.77 from JPY162.37.
"Markets were in a calmer frame of mind at the end of the trading week, with gains across much of Asia and Europe, and oil prices easing back," said AJ Bell analyst Dan Coatsworth.
Brent crude traded at USD76.50 a barrel at midday on Friday, down from USD77.03 late Thursday.
The International Energy Agency said that "a recovery" in global oil demand had started as supplies tentatively start moving through the strategic Strait of Hormuz again and prices ease.
"A recovery in world oil demand is underway, with consumption set to rise from its May nadir," the IEA's monthly report said. The agency revised its forecast for demand through 2026 to be one million barrels a day lower than last year because of the Middle East war, against the 1.1 million fall predicted in its last report.
"Global oil supply rebounded by a sharp 4.1 million barrels a day to 98.8 mbd in June, as a resumption of flows through the Strait of Hormuz underpinned a partial recovery in Gulf production. World output was nevertheless some 9.4 mb/d below pre-war levels," it said.
Stocks in New York were called to open mixed. The Dow Jones Industrial Average was called up 0.2%, the S&P 500 index flat, and the Nasdaq Composite down 0.3%.
The yield on the US 10-year Treasury was quoted at 4.54% at midday on Friday, narrowing a little from 4.55%. The yield on the US 30-year Treasury was unchanged at 5.06%.
Back in London, shares in Vodafone were up 13%.
Investment vehicle Vega, owned by the Xavier Niel family, agreed to acquire Emirates Telecommunications' 16.2% stake in Vodafone Group for GBP4.4 billion, making it the telecom firm's largest shareholder, subject to regulatory approval.
Vega said it has no intention of making a takeover offer for Vodafone and plans to engage with the UK government over the transaction.
Vodafone said its relationship agreement with Emirates Telecommunications has ended, and e& nominee director Hatem Dowidar has stepped down from the board with immediate effect.
BT Group shares were up 1.6% in positive read-across from Vodafone.
AJ Bell analyst Dan Coatsworth said: "The market has responded favourably to Niel's latest move, with certain investors possibly believing he might want to buy the whole of Vodafone in time. That might not be the case, but it won't stop market speculation."
St James's Place was the biggest faller on the FTSE 100 and lost 9.4%.
The Cirencester, England-based wealth manager fell after Financial News reported that one of its largest partner firms, Sovereign Wealth, is set to leave.
It is reportedly in talks about joining Swedish wealth management group Soderberg & Partners.
On the FTSE 250 index, shares in Johnson Service Group sank 15% as it said revenue remained broadly flat in the first half of 2026.
Johnson Service expects revenue for the six months ended June 30 to be GBP258.0 million, unchanged from GBP257.5 million a year before.
"We anticipate that normal seasonality will support improved volumes over the remaining summer months," Johnson Service noted.
Turning to profit margins, Johnson Service said these improved in the first year, thanks to cost control. Managing labour costs remains a priority, the company said, as does a disciplined approach to pricing for its customers.
"Notwithstanding the challenges being experienced within hospitality, the board continues to expect to deliver another year of progress and margin improvement and, therefore, we remain on track towards achieving our targeted adjusted operating margin of at least 14.0% in 2026," Johnson Service concluded.
easyJet shares jumped 15% after it reached an agreement in principle with Apollo on a possible cash takeover worth GBP7.15 per share, valuing the airline at about GBP5.7 billion.
The offer is higher than Castlelake's latest GBP6.90-per-share proposal, and easyJet's board said it would be minded to recommend Apollo's bid to shareholders if a firm offer is made on the same terms.
Apollo is also proposing an equity alternative for eligible shareholders seeking continued exposure to easyJet.
The board said it is no longer inclined to recommend Castlelake's proposal. Apollo has until August 7 to announce a firm offer or walk away.
AJ Bell analyst Dan Coatsworth said: "The bidding war now comes down to price. Castlelake has already shown determination to get what it wants, hence multiple bids in quick succession. The spotlight now turns back to the original suitor to see if it will dig even deeper to beat Apollo. Shareholders will be putting their feet up and enjoying the ride."
On the AIM market, shares in Safestay more than doubled after it confirmed it is in talks with Infill Capital Partners over a possible takeover. The investment firm's website previously referred to a potential GBP40.9 million take-private deal.
Safestay said it has granted limited due diligence access and that discussions remain ongoing, but stressed that no firm offer has been made and that there is no certainty a bid will emerge.
Under UK takeover rules, Infill Capital must announce a firm intention to bid or walk away by August 7.
Shares in Sancus Lending were down 4.2% after it appointed UK managing director Andrew Charnley as chief executive, replacing Rory Mepham, who is joining majority shareholder Somerston Group.
The lender said challenging macroeconomic conditions continued through June, delaying profitability in the first half, but expects efficiency measures to return the business to operating profitability in the second half.
It also raised GBP500,000 through an 8% bond issue to Somerston Fintech, providing additional working capital flexibility.
Gold was quoted at USD4,107.63 an ounce at midday on Friday, down from USD4,126.64 on Thursday.
Still to come on Friday's economic calendar, Canada releases unemployment figures.
By Michael Hennessey, Alliance News reporter
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VodafoneBTSt James's PlaceJohnson ServiceeasyJetSafestaySancus Lend