Gold prices steady, holding sharp gains in wake of soft U.S. jobs data
Investing.com -- U.K. shares closed lower on Friday after data revealed that the British economy shrank for a second consecutive month in May, adding to calls for the Bank of England to consider loosening monetary policy.
The blue-chip index FTSE 100 fell 0.4% and the British pound dropped 0.5% against the dollar to just above 1.35.
DAX index in Germany slipped 0.9%, the CAC 40 in France dropped 0.9%.
U.K. GDP figures disappoints
Data released by the Office for National Statistics showed U.K. gross domestic product fell by 0.1% in May on a monthly basis, following a 0.3% contraction in April, which was the largest decline since October 2023.
The May figure fell short of the 0.1% growth economists had forecast. Industrial production dropped 0.9% while manufacturing production fell 1.0% during the month.
U.K. Finance Minister Rachel Reeves described the latest GDP figures as "disappointing" but stated she is "determined to kickstart economic growth."
SSP Group shares fall as UBS downgrades
Shares of SSP Group PLC (LON:SSPG) fell more than 8% on Friday after UBS downgraded the company to "sell" from "neutral."
The Swiss bank cited weaker airline capacity growth and downside risks to earnings forecasts as key reasons for the rating cut.
The downgrade comes after SSP shares had rallied 12% since May, partly driven by market optimism surrounding the company’s Indian IPO pricing. However, UBS believes there will be limited near-term benefits from this event.
BP (LON:BP) forecasts higher Q2 oil and gas output, net debt to fall
BP (NYSE:BP) issued a trading update stating it expects second-quarter upstream production to exceed first-quarter levels, citing higher production in its US onshore oil and gas business bpx energy and in gas and low carbon energy.
The company also anticipates slightly lower net debt at the end of the second quarter compared to the first.
Warehouse REIT backs enhanced Blackstone (NYSE:BX) takeover, snubs Tritax
In other corporate news, Warehouse REIT’s board has recommended a sweetened cash takeover offer from US private equity group Blackstone over a rival proposal from Tritax Big Box.
Flutter (LON:FLTRF) to buy Boyd’s 5% FanDuel stake
Flutter Entertainment (NYSE:FLTR) will acquire Boyd Gaming’s (NYSE:BYD) 5% stake in FanDuel for approximately $1.76 billion, giving it complete ownership of the online betting operator.
Heathrow plans to add 10 mln passengers a year
Britain’s Heathrow Airport announced it could serve an additional 10 million passengers annually by 2031 through changes to existing terminals if allowed to increase fees, according to plans presented to regulators Friday.
Unilever (LON:ULVR) sells Venezuelan ice cream arm
Unilever has sold its ice cream business in Venezuela, including the Tio Rico brands, to Mack de Venezuela, a truck company representing Mack, Volvo (OTC:VLVLY) and Dongfeng in the country.
Meanwhile, Unilever’s ice cream spin-off Magnum has appointed Jochanan Senf as the new CEO of Ben & Jerry’s, effective mid-July.