S& P 500 hits all time highs U.S.-Japan trade deal optimism
Investing.com -- U.K. stocks declined on Wednesday, as the pound edged lower and bakery chain Greggs (LON:GRG) tumbled after issuing a warning on its full-year operating profit.
The blue-chip index FTSE 100 fell 0.2% and the British pound fell 0.9% against the dollar to $1.36.
DAX index in Germany rose 0.3%, the CAC 40 in France gained 1%.
BoE’s Taylor warns U.K. soft landing at risk
Bank of England official Alan Taylor warned on Tuesday that the likelihood of a soft landing for the UK economy is diminishing amid signs of slowing growth.
Speaking to Bloomberg TV, Taylor noted, *“I believe the soft landing scenario is now at risk. We’re observing a clear deceleration in economic activity.”
Bytes Technology (LON:BYIT) shares plunge as economic pressures delay sales
Shares of Bytes Technology Group fell over 32% following the company’s release of a negative trading update ahead of its annual general meeting.
The U.K.-based software and cloud services provider pointed to macroeconomic pressures causing customers to postpone buying decisions in the early months of the financial year.
These challenging economic conditions have particularly affected the corporate sector, according to the company’s statement issued before the meeting.
SSP Group shares jump on TFS IPO in India
SSP Group PLC (LON:SSPG) surged more than 7% on Wednesday after the company confirmed that its Indian joint venture, Travel Food Services (TFS), will move ahead with an initial public offering.
TFS is scheduled to debut on the Indian stock exchange on July 14.
The IPO price range has been set between 1,045 and 1,100 Indian rupees per share, valuing the company at approximately £1.17 billion to £1.23 billion.
Greggs shares fall as hot weather impacts sales
Shares of Greggs slumped sharply after the company warned that its full-year operating profit could be "modestly below" last year’s results.
The profit warning came as unusually hot U.K. weather weighed on customer traffic and June sales. Greggs said the heatwave increased demand for cold drinks but reduced overall footfall, resulting in weaker like-for-like sales last month.
Greggs shares dropped over 15% to 1,675 pence following the update.
Topps tiles shares climb on strong Q3 sales
Topps Tiles shares jumped 8.8% on Wednesday following the company’s report of robust sales for the quarter ending in June.
The retailer reported a 7.3% increase in like-for-like sales during the three-month period. According to the company, this growth was primarily driven by increased business from trade customers.
The company acknowledged challenges in the current cost environment, specifically citing increases in employer payroll taxes and minimum wage requirements.
Despite these pressures, Topps Tiles expressed optimism about margin improvements in the second half of the year, as the company expects gross profits to grow faster than operating costs.
Sabadell to sell TSB to Santander
In other market news, Banco Sabadell shares rose on Wednesday after the bank announced it had agreed to sell its U.K. unit, TSB, to Banco Santander (BME:SAN) for up to £2.9 billion.
The all-cash deal, which requires shareholder approval, is expected to close in the first quarter of 2026.
The proposed sale will be submitted for approval at a General Shareholders’ Meeting on August 6. The agreed price is based on a £2.65 billion valuation as of March 31, 2025, representing 1.5 times TSB’s book value.
KKR to Acquire Spectris
Spectris (LON:SXS) shares increased over 4% following the announcement that U.S. private equity firm KKR will acquire the precision measurement group in a £4.7 billion cash deal through its vehicle, Project Aurora Bidco Limited.
Under the agreement, Spectris shareholders will receive £40.00 per share, comprising £39.72 in cash from Bidco and an interim dividend of 28 pence, pending approval in the FY25 dividend cycle.
Shell (LON:SHEL) to revise SEC filings
In other corporate developments, Shell said it would update its 2023 and 2024 form 20-Fs filed with the U.S. Securities and Exchange Commission due to auditor EY’s non-compliance with the regulator’s audit partner rotation rules.
AstraZeneca (LON:AZN) weighs U.S. listing move - report
AstraZeneca is considering moving its stock market listing to the United States, according to a Tuesday report by the Times, which cited multiple sources.