- FTSE 100 opens flat
- Another change at the top at BP
- UK results from Pets at Home and Hollywood Bowl
- S&P, Nasdaq rally as a new member joins trillion-dollar club
- Oil price steady but inflation worrying the European Central Bank
Anna Macdonald, Investment Strategy Director, Hargreaves Lansdown:
“The FTSE 100 has opened just a few points shy of where it ended on Tuesday.
BP is undergoing yet another leadership change, with the unexpected and immediate removal of Chair Albert Manifold, after a period marked by strategic shifts and boardroom friction. The development highlights ongoing instability within the group, particularly compared with peers who have navigated the shift back towards oil and gas with more stability.
Hollywood Bowl continues to deliver solid growth, with half-year revenue up 9.5%. New centres in both the UK and Canada are performing ahead of expectations, while higher spend per game. The business remains tightly run, with labour costs well controlled, a large proportion of revenues shielded from cost inflation, and a high degree of energy costs already hedged. Combined with its relatively low-cost, family-friendly offering, that’s helping underpin a resilient model. There’s been no upgrade to guidance today, but the positive tone’s been enough to drive the shares up 1.4%.
Pets at Home reported a 30% decline in underlying pre-tax profits, in line with expectations, as weaker retail performance and price cuts weighed on results. However, the veterinary side of the business continues to grow and remains a key area of strength. The group’s pet insurance offering is moving ahead, with FCA approval secured and a launch still planned for 2026. Meanwhile, the CMA’s veterinary market review concluded positively, recognising the competitiveness and outcomes delivered by its joint venture model. The group’s comfortable with market expectation of modest profit growth this year, but that’s not been enough to wag the markets tail, with the shares down a touch today and still firmly in the doghouse. The stock opened down 4.5%.
The Nasdaq hit fresh highs, driven in part by a sharp rally in Micron Technology, which rose 19%. The move reflects a broader shift in the AI trade. Investors are looking beyond graphics processors to memory chips, which are essential for storing and moving the vast amounts of data AI systems rely on. Strength across the sector is also feeding into labour dynamics, with Samsung approving a large bonus scheme, worth around 10.5% of operating profit and an average of $400,000 per employee, to retain staff and avoid strike action.
Oil prices are holding around $97 a barrel. Tanker traffic through the Strait of Hormuz continues, with vessels reportedly moving in small groups through a diplomatically sensitive corridor. While flows remain uninterrupted for now, the situation remains fragile.
Rates and policy: UK gilt yields have eased in recent days, with the 10-year falling back below 4.9% from recent highs of near 5.17%. In Europe, the tone is turning more hawkish. Some European Central Bank members have indicated a rate rise as soon as June may be needed, signalling they can no longer look through persistent inflation pressures. Markets are now pricing in two further increases this year in Europe.”
