ECB keeps interest rates on hold amid tariffs uncertainty
Investing.com -- British stocks gained on Thursday as Prime Minister Keir Starmer voiced strong backing for Chancellor Rachel Reeves, saying he expects her to remain in the role through the next election and beyond.
The blue-chip index FTSE 100 closed 0.6% higher and the British pound rose 0.2% against the dollar to 1.3650, after holding above 1.37 for the past two days.
DAX index in Germany rose 0.5% and the CAC 40 in France gained 0.2%.
U.K. PM backs Reeves after emotional Commons appearance
Starmer’s remarks about Reeves followed earlier hesitation in Parliament, where he stopped short of guaranteeing her position through the next election.
He later clarified in a BBC Radio 4 Political Thinking interview that he works “in lockstep” with Reeves and praised her performance, calling her “an excellent chancellor.”
A spokesperson for Reeves later said she had been affected by a “personal matter” during the Commons session.
Keller falls after downgrade
Shares of Keller Group (LON:KLR) fell more than 2% after Deutsche Bank (ETR:DBKGn) downgraded the stock to "hold" from "buy."
Deutsche Bank also reduced its price target for Keller to 1,660p from 1,800p. The company’s stock had closed at 1,434p on Wednesday.
Deutsche Bank analyst Jonathan Coubrough explained the downgrade in a note to clients, pointing to a transformation in Keller’s financial performance over the past five years.
Watches of Switzerland shares drop on limited margin outlook
Shares of Watches Of Switzerland Group PLC (LON:WOSG) fell close to 8% after the luxury watch retailer reported its annual results.
The company posted record revenue for the 52 weeks ended April 27, with sales rising 7% to £1.65 billion on a reported basis. At constant currency, revenue increased by 8%, with the company noting stronger trading in the second half of the year.
Watches of Switzerland’s adjusted EBIT grew 11% to £150 million, resulting in a margin of 9.1%. This represented a 30 basis point improvement from the previous year.
Currys reports profit above expectations
Currys PLC (LON:CURY) reported annual results that beat analyst expectations, posting an adjusted pre-tax profit of £162 million for the year ended May 3, above the consensus estimate of £159 million.
The strong performance was driven by solid sales growth and tight cost control, which helped offset inflation and higher wages. Group revenue rose 3% to £8.71 billion, while free cash flow surged 82% to £149 million.
The company also proposed a final dividend of 1.5p per share and outlined goals for margin growth and lower capital and cash costs in the coming years.
Chesnara (LON:CSN) to acquire HSBC’s UK life insurance arm
In other business news, Chesnara announced it has agreed to acquire HSBC (LON:HSBA) Bank’s U.K. life insurance business for £260 million ($354.85 million).
The HSBC Life (UK) acquisition is expected to generate over £800 million in additional lifetime cash flow, with annual cash generation exceeding £140 million during the first five years.
Chesnara plans to finance the purchase through a combination of existing cash, its revolving credit facility, and an equity raise via a rights issue.
Baltic Classifieds posts 40% profit jump
Meanwhile, Baltic Classifieds Group Plc reported a 40% increase in operating profit to €53.5 million for the year ended April 30. The company saw growth across its core classifieds segments, which helped offset a significant downturn in Estonia’s auto market.
The company’s revenue rose 15% to €82.8 million from €72.1 million in 2024, while EBITDA climbed 17% to €64.4 million, achieving a margin of 78%, up from 77% previously.
Adjusted net income increased 21% to €54.4 million, with profit for the year reaching €44.8 million.
Ryanair (LON:0RYA) cancels flights amid French ATC strike
In the airline sector, Ryanair (0RYA) announced it had to cancel 170 flights due to a nationwide air traffic controller strike in France scheduled for Thursday and Friday, affecting more than 30,000 passengers.