BUSINESS LIVE: GDP grows 0.6%; Evoke losses soar; Admiral profits motor ahead

Just before close, the FTSE 100 was 0.8% up at 8,347.41.

Meanwhile, the FTSE 250 was 0.64% higher at 21,086.42.

Mark Crouch, market analyst at investment platform eToro, comments on Walmart’s results:

American discount retailer Walmart reported healthy sales growth for its fiscal second quarter, beating expectations with both its top and bottom line.

Although earnings dropped substantially from the same quarter a year ago, the decrease was smaller than analysts had expected, and came alongside a robust increase in revenue, seen across both physical stores and eCommerce channels.

The latter was a particular bright spot, with global eCommerce sales growing 21%, while newer parts of the business, such as Walmart Marketplace, are beginning to contribute meaningfully to performance.

Walmart is the biggest retailer in the States and is consequently considered a bellwether for the US consumer. The sales strength shown in these numbers should help to allay concerns about the health of consumer demand, which plays a major part in the US economy.

Digital banks are leading the way when it comes to customer satisfaction, official data shows.

Monzo, Starling and Chase are Britain’s favourite banks, the latest survey from the Competition and Markets Authority reveals.

Many people could avoid stiffer death duties for their loved ones by putting life insurance into trust, new figures from HMRC reveal.

Nearly one in four of estates liable for inheritance tax took a hit on policies that could have been put beyond the taxman’s reach, according to data for the 2021/22 tax year.

(Reuters) – Dubai-owned DP World reported a 59% drop in first-half profit on Thursday as the ports and logistics company grappled with shipping disruptions in the Red Sea as tensions flare in the Middle East due to the ongoing Israel-Hamas war in Gaza.

Missile and drone attacks in the Red Sea since October by Yemen’s Houthi militants, who say they are acting in solidarity with Palestinians in the Gaza war, have forced many ocean freight firms to re-route vessels away from the Suez Canal to around the Cape of Good Hope on the southern tip of Africa.

Analysts say Middle East ports like those in the Gulf have lost out on trans-shipment traffic as ships sail around Africa.

Overall profit attributable to DP World’s owners was $265million in the six months to June 30, down from $651million a year earlier, the company said, adding that its operations had been “partially impacted” by Red Sea disruptions.

Revenue rose 3.3% to $9.3billion, driven by the company’s logistics as well as ports and terminals divisions, with consolidated container volumes up 3.7% on a like-for-like basis.

It’s no secret that Britain is in the midst of a shoplifting crime wave.

In short, there has been a large rise in thieves simply strolling into shops – big and small – and walking out with armfuls of goodies, with little fear of being caught.

Admiral Group has revealed a bumper dividend hike after first half profits were supercharged by strength in the firm’s motor insurance business.

The insurer said investors would receive a 71 pence per share payout, consisting of a 51.3p per share normal dividend and a 19.7p per share special dividend.

(PA) The mobile network Three UK continued to make a loss in the first half of the year as it called investing in its network “unsustainable”, ahead of its planned merger with Vodafone.

Three said pre-tax losses narrowed to £30million for the six months to June 30, an improvement on a £76million loss at the same time last year.

The loss was driven by the growing cost of running and improving its network of mobile phone towers and digital infrastructure, which it put down to inflation.

Vodafone and Three hope to complete a tie-up, after the two companies agreed a £15billion deal last summer which would create the UK’s largest mobile phone network.

The deal has not yet got the green light to go ahead, however, after attracting concerns from regulators.

Three’s losses come despite the company managing to grow its customer base by 3% versus last year, bringing it to 10.9 million people.

The British economy enjoyed a stronger than expected start to 2024, bouncing back from last year’s technical recession despite high interest rates and a subdued consumer environment.

The country appears to have emerged from stagnation, with official data on Thursday confirming two consecutive quarters of growth at the same time as consumer price inflation has returned to more tolerable levels.

Evoke’s losses soared in the first half of 2024 as the William Hill owner was impacted by a slowdown in high street trade.

The gambling operator, formerly called 888 Holdings, revealed its losses more than quadrupled to £143.2million in the six months ending June, from £32.5million during the same period last year.

This time of year typically marks a slow one for the housing market, with summer holidays dampening demand – and 2024 is no different.

But once September rolls around, it’s entirely possible there is going to be a meaningful uptick in buyer interest – more so than usual – according to many property experts.

Business leaders have warned Angela Rayner her workers’ rights plan could harm jobs and growth.

The deputy Prime Minister and business secretary Jonathan Reynolds held talks with the top bosses of business groups and trade unions yesterday.

Amanda Blanc is one tough cookie. Since she got her teeth into Aviva four years ago, she’s cleaned up operations, cut jobs and given the insurer a new sense of purpose.

It worked: Aviva is the country’s biggest pensions and insurance provider, one that looks after 19m customers with more than £300billion of assets.

Victoria’s Secret has poached the boss of Rihanna’s lingerie brand in a bid to turn around its fortunes.

The troubled group said Hillary Super will replace Martin Waters as chief executive next month.

The FTSE 100 is flat in early trading on the back of in-line UK GDP data, offset by losses in companies that trade without entitlement to their latest dividend payouts.

The pound is higher against the US dollar and money markets still see a 40 per cent chance of BoE cutting rates by 25 basis points in September.

Overall, the investor sentiment remains sanguine partly after the benign US consumer inflation data overnight reinforced bets for the Federal Reserve to start cutting interest rates next month.

Industrial metal miners is down 1.1 per cent, on track for its third session of declines, as Rio Tinto and Anglo American traded ex-dividend.

Admiral Group has jumped 11.6 p er cent after the motor and home insurer posted a forecast-beating 32 percent rise in pre-tax profit for the first half of the year, and said it would pay a special dividend.

HSBC, Barclays, and Entain were among the bottom performers as these companies also traded without entitlement to their latest dividend payouts.

Interest rates look set to fall on both sides on the Atlantic amid growing hopes inflation is back under control.

Official figures in the United States yesterday showed that inflation in the world’s biggest economy dipped from 3 per cent to 2.9 per cent in July.

AstraZeneca’s £450million investment in a vaccine manufacturing site is in doubt after the Treasury threatened to cut state aid.

The pharmaceuticals giant is reportedly considering scrapping a planned facility near Liverpool and could relocate the project to France.

Chocolate giant Mars is to buy the owner of Pringles in a £28billion mega-deal that brings two of the world’s biggest food companies together.

The US conglomerate behind snacks such as Snickers and Skittles will pay £64.96 a share for Kellanova in an all-cash offer.

Aviva boss Amanda Blanc has sounded the alarm over a possible raid by Labour on pension savers – urging the Government to beware of the long-term consequences.

Chancellor Rachel Reeves has warned she faces tough choices in her first Budget in October after identifying a £22billion black hole in public finances that she claims the Tories left behind.

That has prompted speculation of tax raids, including cutting pension tax relief for higher-rate earners.

Admiral has posted a forecast-beating 32 per cent rise in pre-tax profit for the first half of the year, led by strong UK motor performance, and said it would pay a special dividend.

Pre-tax profit came in at £310million, compared with an expected £304million, according to a company-supplied consensus poll.

Motor and home insurance premiums have risen in the past two years, with insurers blaming inflation and supply chain issues for an increase in the cost of claims, following the Covid-19 pandemic and the war in Ukraine.

However, Admiral said it had become more competitive on price, enabling it to grow its customer base by 12 per cent to 10.5 million in the first half of the year. UK motor insurance customers grew by 15 per cent to 5.5 million.

Boss Milena Mondini de Focatlis said: ‘We continue to evolve our core technical competences leveraging new data and technology,’

William Hill-owner Evoke has posted a £143.2million loss for the first half of the year, up from £32.5million over the same period last year, reflcting the cost of the group’s ambitious turnaround plan.

The group’s core earnings plummeted 67 per cent to £43.8 million over the half, which the group formerly known as 888 said was ‘disappointing and behind our initial plan’ as revenue fell 2 per cent to £862million.

The London-listed firm told investors its turnaround plan had involved more investment in marketing, cost-cutting efforts and changes to the business’s ‘country and product mix’.

Per Widerstrom, chief executive of Evoke, said the ‘underlying health of the business is continually getting stronger’.

‘The corrective actions we have already taken give us even more confidence that our strategic approach is sound and that we will achieve sustainable success.

‘We are completely transforming this business. Whilst the scale of change is significant, it is necessary for us to deliver mid and long-term profitable growth and value creation.’

The pound is stengthening in early trading after data showed Britain’s economy grew 0.6 per cent in the second quarter of 2024.

Sterling is up 0.18 per cent at $1.285. It has also strengthened versus the euro, which dipped 0.16 per cent to 85.7p.

Shares in Britain’s housebuilders rose as a smaller-than-expected rise in inflation fuelled hopes of further interest rate cuts this year.

In a boost for millions of borrowers with mortgages, consumer price increases of 2.2 per cent in the year to July was less than the 2.3 per cent pencilled in by economists.

Despite rising for the first time this year, inflation is just above the Bank of England 2 per cent target.

Neil Birrell, chief investment officer at Premier Miton Investors:

‘The second quarter seems like a long time ago, but the GDP data confirms that the UK economy is in good health.

‘The Bank of England is in the nice position, unlike other central banks, of having a level of surety in the data it is seeing, when setting policy.

‘With inflation playing ball as well, the path to lower interest rates looks to be set, the timing of the cuts is now the focus.’

Richard Carter, head of fixed interest research at Quilter Cheviot:

‘One contributor to growth might have been the Taylor Swift effect, with her Eras tour driving a surge in consumer spending across major cities helping to boost the services sector by 0.8% in the three months to June 2024.

‘However, on the flipside the general election will have played a part in stifling growth as businesses and investors put plans on hold as they waited for the results of the election.

‘In a significant move the Bank of England reduced interest rates by 0.25% in August, bringing the base rate down to 5%. This cut should help stimulate more economic growth by making borrowing more affordable for households and businesses.

‘Lower borrowing costs encourage consumer spending on goods and services, while businesses are more likely to invest in expansion, all of which contribute to boosting GDP. Although the effects of this change may take time to fully manifest, it is expected to prove some economic support in the coming months, but further cuts will be needed to truly make an impact.

‘Looking ahead, Labour’s first budget, now scheduled for 30th October, will provide further clarity on the government’s fiscal strategy. With expected changes in taxation and public spending, businesses may then gain better visibility.

‘However, it is unlikely that we will see a marked acceleration in GDP in the short term. For now, the economy is expected to continue on its relatively moderate growth path, bolstered by wage growth that remains ahead of inflation and the recent easing of monetary policy.’

The UK economy expanded by 0.6 per cent year-on-year in the second quarter, fresh data from the Office for National statistics shows.

Growth was in-line with forecasts in the three months to the end of June and followed an expansion of 0.7 per cent in the first quarter.

Just before close, the FTSE 100 was 0.8% up at 8,347.41.

Meanwhile, the FTSE 250 was 0.64% higher at 21,086.42.

Mark Crouch, market analyst at investment platform eToro, comments on Walmart’s results:

American discount retailer Walmart reported healthy sales growth for its fiscal second quarter, beating expectations with both its top and bottom line.

Although earnings dropped substantially from the same quarter a year ago, the decrease was smaller than analysts had expected, and came alongside a robust increase in revenue, seen across both physical stores and eCommerce channels.

The latter was a particular bright spot, with global eCommerce sales growing 21%, while newer parts of the business, such as Walmart Marketplace, are beginning to contribute meaningfully to performance.

Walmart is the biggest retailer in the States and is consequently considered a bellwether for the US consumer. The sales strength shown in these numbers should help to allay concerns about the health of consumer demand, which plays a major part in the US economy.

Digital banks are leading the way when it comes to customer satisfaction, official data shows.

Monzo, Starling and Chase are Britain’s favourite banks, the latest survey from the Competition and Markets Authority reveals.

Many people could avoid stiffer death duties for their loved ones by putting life insurance into trust, new figures from HMRC reveal.

Nearly one in four of estates liable for inheritance tax took a hit on policies that could have been put beyond the taxman’s reach, according to data for the 2021/22 tax year.

(Reuters) – Dubai-owned DP World reported a 59% drop in first-half profit on Thursday as the ports and logistics company grappled with shipping disruptions in the Red Sea as tensions flare in the Middle East due to the ongoing Israel-Hamas war in Gaza.

Missile and drone attacks in the Red Sea since October by Yemen’s Houthi militants, who say they are acting in solidarity with Palestinians in the Gaza war, have forced many ocean freight firms to re-route vessels away from the Suez Canal to around the Cape of Good Hope on the southern tip of Africa.

Analysts say Middle East ports like those in the Gulf have lost out on trans-shipment traffic as ships sail around Africa.

Overall profit attributable to DP World’s owners was $265million in the six months to June 30, down from $651million a year earlier, the company said, adding that its operations had been “partially impacted” by Red Sea disruptions.

Revenue rose 3.3% to $9.3billion, driven by the company’s logistics as well as ports and terminals divisions, with consolidated container volumes up 3.7% on a like-for-like basis.

It’s no secret that Britain is in the midst of a shoplifting crime wave.

In short, there has been a large rise in thieves simply strolling into shops – big and small – and walking out with armfuls of goodies, with little fear of being caught.

Admiral Group has revealed a bumper dividend hike after first half profits were supercharged by strength in the firm’s motor insurance business.

The insurer said investors would receive a 71 pence per share payout, consisting of a 51.3p per share normal dividend and a 19.7p per share special dividend.

(PA) The mobile network Three UK continued to make a loss in the first half of the year as it called investing in its network “unsustainable”, ahead of its planned merger with Vodafone.

Three said pre-tax losses narrowed to £30million for the six months to June 30, an improvement on a £76million loss at the same time last year.

The loss was driven by the growing cost of running and improving its network of mobile phone towers and digital infrastructure, which it put down to inflation.

Vodafone and Three hope to complete a tie-up, after the two companies agreed a £15billion deal last summer which would create the UK’s largest mobile phone network.

The deal has not yet got the green light to go ahead, however, after attracting concerns from regulators.

Three’s losses come despite the company managing to grow its customer base by 3% versus last year, bringing it to 10.9 million people.

The British economy enjoyed a stronger than expected start to 2024, bouncing back from last year’s technical recession despite high interest rates and a subdued consumer environment.

The country appears to have emerged from stagnation, with official data on Thursday confirming two consecutive quarters of growth at the same time as consumer price inflation has returned to more tolerable levels.

Evoke’s losses soared in the first half of 2024 as the William Hill owner was impacted by a slowdown in high street trade.

The gambling operator, formerly called 888 Holdings, revealed its losses more than quadrupled to £143.2million in the six months ending June, from £32.5million during the same period last year.

This time of year typically marks a slow one for the housing market, with summer holidays dampening demand – and 2024 is no different.

But once September rolls around, it’s entirely possible there is going to be a meaningful uptick in buyer interest – more so than usual – according to many property experts.

Business leaders have warned Angela Rayner her workers’ rights plan could harm jobs and growth.

The deputy Prime Minister and business secretary Jonathan Reynolds held talks with the top bosses of business groups and trade unions yesterday.

Amanda Blanc is one tough cookie. Since she got her teeth into Aviva four years ago, she’s cleaned up operations, cut jobs and given the insurer a new sense of purpose.

It worked: Aviva is the country’s biggest pensions and insurance provider, one that looks after 19m customers with more than £300billion of assets.

Victoria’s Secret has poached the boss of Rihanna’s lingerie brand in a bid to turn around its fortunes.

The troubled group said Hillary Super will replace Martin Waters as chief executive next month.

The FTSE 100 is flat in early trading on the back of in-line UK GDP data, offset by losses in companies that trade without entitlement to their latest dividend payouts.

The pound is higher against the US dollar and money markets still see a 40 per cent chance of BoE cutting rates by 25 basis points in September.

Overall, the investor sentiment remains sanguine partly after the benign US consumer inflation data overnight reinforced bets for the Federal Reserve to start cutting interest rates next month.

Industrial metal miners is down 1.1 per cent, on track for its third session of declines, as Rio Tinto and Anglo American traded ex-dividend.

Admiral Group has jumped 11.6 p er cent after the motor and home insurer posted a forecast-beating 32 percent rise in pre-tax profit for the first half of the year, and said it would pay a special dividend.

HSBC, Barclays, and Entain were among the bottom performers as these companies also traded without entitlement to their latest dividend payouts.

Interest rates look set to fall on both sides on the Atlantic amid growing hopes inflation is back under control.

Official figures in the United States yesterday showed that inflation in the world’s biggest economy dipped from 3 per cent to 2.9 per cent in July.

AstraZeneca’s £450million investment in a vaccine manufacturing site is in doubt after the Treasury threatened to cut state aid.

The pharmaceuticals giant is reportedly considering scrapping a planned facility near Liverpool and could relocate the project to France.

Chocolate giant Mars is to buy the owner of Pringles in a £28billion mega-deal that brings two of the world’s biggest food companies together.

The US conglomerate behind snacks such as Snickers and Skittles will pay £64.96 a share for Kellanova in an all-cash offer.

Aviva boss Amanda Blanc has sounded the alarm over a possible raid by Labour on pension savers – urging the Government to beware of the long-term consequences.

Chancellor Rachel Reeves has warned she faces tough choices in her first Budget in October after identifying a £22billion black hole in public finances that she claims the Tories left behind.

That has prompted speculation of tax raids, including cutting pension tax relief for higher-rate earners.

Admiral has posted a forecast-beating 32 per cent rise in pre-tax profit for the first half of the year, led by strong UK motor performance, and said it would pay a special dividend.

Pre-tax profit came in at £310million, compared with an expected £304million, according to a company-supplied consensus poll.

Motor and home insurance premiums have risen in the past two years, with insurers blaming inflation and supply chain issues for an increase in the cost of claims, following the Covid-19 pandemic and the war in Ukraine.

However, Admiral said it had become more competitive on price, enabling it to grow its customer base by 12 per cent to 10.5 million in the first half of the year. UK motor insurance customers grew by 15 per cent to 5.5 million.

Boss Milena Mondini de Focatlis said: ‘We continue to evolve our core technical competences leveraging new data and technology,’

William Hill-owner Evoke has posted a £143.2million loss for the first half of the year, up from £32.5million over the same period last year, reflcting the cost of the group’s ambitious turnaround plan.

The group’s core earnings plummeted 67 per cent to £43.8 million over the half, which the group formerly known as 888 said was ‘disappointing and behind our initial plan’ as revenue fell 2 per cent to £862million.

The London-listed firm told investors its turnaround plan had involved more investment in marketing, cost-cutting efforts and changes to the business’s ‘country and product mix’.

Per Widerstrom, chief executive of Evoke, said the ‘underlying health of the business is continually getting stronger’.

‘The corrective actions we have already taken give us even more confidence that our strategic approach is sound and that we will achieve sustainable success.

‘We are completely transforming this business. Whilst the scale of change is significant, it is necessary for us to deliver mid and long-term profitable growth and value creation.’

The pound is stengthening in early trading after data showed Britain’s economy grew 0.6 per cent in the second quarter of 2024.

Sterling is up 0.18 per cent at $1.285. It has also strengthened versus the euro, which dipped 0.16 per cent to 85.7p.

Shares in Britain’s housebuilders rose as a smaller-than-expected rise in inflation fuelled hopes of further interest rate cuts this year.

In a boost for millions of borrowers with mortgages, consumer price increases of 2.2 per cent in the year to July was less than the 2.3 per cent pencilled in by economists.

Despite rising for the first time this year, inflation is just above the Bank of England 2 per cent target.

Neil Birrell, chief investment officer at Premier Miton Investors:

‘The second quarter seems like a long time ago, but the GDP data confirms that the UK economy is in good health.

‘The Bank of England is in the nice position, unlike other central banks, of having a level of surety in the data it is seeing, when setting policy.

‘With inflation playing ball as well, the path to lower interest rates looks to be set, the timing of the cuts is now the focus.’

Richard Carter, head of fixed interest research at Quilter Cheviot:

‘One contributor to growth might have been the Taylor Swift effect, with her Eras tour driving a surge in consumer spending across major cities helping to boost the services sector by 0.8% in the three months to June 2024.

‘However, on the flipside the general election will have played a part in stifling growth as businesses and investors put plans on hold as they waited for the results of the election.

‘In a significant move the Bank of England reduced interest rates by 0.25% in August, bringing the base rate down to 5%. This cut should help stimulate more economic growth by making borrowing more affordable for households and businesses.

‘Lower borrowing costs encourage consumer spending on goods and services, while businesses are more likely to invest in expansion, all of which contribute to boosting GDP. Although the effects of this change may take time to fully manifest, it is expected to prove some economic support in the coming months, but further cuts will be needed to truly make an impact.

‘Looking ahead, Labour’s first budget, now scheduled for 30th October, will provide further clarity on the government’s fiscal strategy. With expected changes in taxation and public spending, businesses may then gain better visibility.

‘However, it is unlikely that we will see a marked acceleration in GDP in the short term. For now, the economy is expected to continue on its relatively moderate growth path, bolstered by wage growth that remains ahead of inflation and the recent easing of monetary policy.’

The UK economy expanded by 0.6 per cent year-on-year in the second quarter, fresh data from the Office for National statistics shows.

Growth was in-line with forecasts in the three months to the end of June and followed an expansion of 0.7 per cent in the first quarter.