FTSE 100 today: Index egdes higher, pound stays below $1.36

Investing.com -- British stocks gained on Wednesday, while the pound remained below the $1.36 level amid fresh tariff worries.

The blue-chip index FTSE 100 rose about 0.2% and the British pound declined 0.1% against the dollar to over 1.3580. 

DAX index in Germany gained 1.3%, the CAC 40 in France rose 1.4%.  

BoE warns of high financial market risks despite easing

The Bank of England warned that financial market risks remain high despite easing tensions following the U.S. decision to pause implementing tariffs announced in April.

In its mid-year review of financial stability risks, the central bank highlighted persistent threats from geopolitical tensions, growing global trade and market fragmentation, and rising pressures on government debt.

FTSE 100 mining stocks slide on Trump’s 50% copper tariff threat

London-listed mining stocks fell in early trading after U.S. President Donald Trump said he would impose a 50% tariff on red metal imports.

Antofagasta (LON:ANTO) shares dropped 2.9%, Hochschild Mining (LON:HOCM) fell 1.6%, while Glencore (OTC:GLNCY) (LON:GLEN) and Anglo American (JO:AGLJ) (LON:AAL) both declined more than 2%. Rio Tinto (NYSE:RIO) (LON:RIO) decreased 0.8%.

U.K. builders fall after £100M settlement

Seven U.K. housebuilders agreed to pay £100 million ($135.9 million) toward affordable-housing programs following a Competition and Markets Authority investigation into information sharing practices.

The companies involved - Persimmon (LON:PSN), Berkeley (LON:BKGH), Taylor Wimpey (LON:TW), Bellway (LON:BWY), Barratt Redrow (LON:LON:RDW), and Vistry - offered commitments to address the regulator’s concerns.

On Wednesday, Persimmon shares rose 1.2%, Taylor Wimpey fell 0.4%, Bellway lost 0.1%, Barratt Redrow rose 1.2%, and Vistry edged climbed 1.7%, while Berkeley rose 0.9%.

Merck to buy Verona Pharma for $10 billion

In pharmaceutical news, Merck (NSE:PROR) announced it has entered a definitive agreement to acquire Verona Pharma (NASDAQ:VRNA) for $107 per American Depository Share, valuing the transaction at approximately $10 billion.

The acquisition will add Ohtuvayre (ensifentrine), a first-in-class selective dual inhibitor of phosphodiesterase 3 and 4, to Merck’s cardio-pulmonary pipeline and portfolio.

WPP (LON:WPP) slumps after cutting annual forecast

WPP shares were dropped over 18% after the advertising group cut its full-year revenue and profit forecasts, citing weaker-than-expected trading in June that contributed to a steeper first-half decline.

The company now expects 2025 like-for-like revenue less pass-through costs to fall between 3% and 5%, a significant downward revision from its earlier guidance of flat to a 2% decline.

The company cited macroeconomic pressure and lower net new business as key factors behind the revised outlook.

Hunting lifts dividend growth target, plans buyback 

In other corporate news, Hunting PLC (LON:HTG) reported strong first-half 2025 performance with EBITDA growth of about 16% year-over-year to approximately $68-$70 million.

The precision engineering group’s growth was driven by robust contributions from its OCTG product group.

Hunting announced an increase in its targeted annual dividend growth from 10% to 13% and plans to launch a share buyback program of up to $40 million following its half-year results publication on August 28.

The company maintained its full-year 2025 EBITDA guidance of approximately $135-$145 million, with a projected year-end cash position of $65-$75 million before the share buyback and any potential acquisitions.

Jet2 profit climbs 12%

JET2 reported a 12% rise in annual pre-tax profit, driven by demand for its affordable holiday packages and flights.

The company said its current trading is in line with expectations, though travelers continue to book their holidays closer to departure dates.

The package holidays firm noted that "customers’ eagerness to get away from it all and enjoy a relaxing overseas holiday in the sun remains strong."

Young’s like-for-like sales rise as warm weather boosts pubs

Pub operator Young & Co reported benefiting from the long period of warm and sunny weather in the UK so far in its financial year.

The company said like-for-like sales were up by 7% for the 14 weeks to July 8, with the weather particularly benefiting its riverside pubs and those with gardens.

This sales growth comes against a tough comparator from the previous year, when the Euro 2024 football tournament was held.

New report says Reeves must rethink fiscal rules

In policy news, a new report from the Productivity Institute and the National Institute of Economic and Social Research suggests Chancellor Rachel Reeves should revamp her fiscal rules to revive productivity.

The analysis argues the existing design is damaging the investment needed to generate long-term economic growth and tax revenue.

The report recommends Reeves should mandate a minimum level of public investment, around 4%-5% of GDP, and set out a path for government consumption as soon as the upcoming autumn budget.

CMA accepts £100 mln pledge from builders 

Separately, the U.K.’s competition regulator has accepted an offer from seven homebuilders to pay £100 million to back building affordable housing.

This follows a probe by the Competition and Markets Authority into suspected breaches of antitrust rules by the companies.