Must read: FTSE 100 under pressure, UK housing market, WPP
ii’s head of investment rounds up the morning’s big news.
7th August 2025 08:18
by Victoria Scholar from interactive investor
GLOBAL MARKETS
The FTSE 100 is trading lower ahead of a likely quarter-point rate cut from the Bank of England at lunchtime.
A number of UK stocks go ex-dividend today including Rolls-Royce Holdings (LSE:RR.), Barclays (LSE:BARC), and NatWest Group (LSE:NWG).
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WPP (LSE:WPP) has sunk towards the bottom of the FTSE 100 on earnings, extending a weak run for the shares. Hikma Pharmaceuticals (LSE:HIK) is the top loser on the blue-chip index, also driven by earnings. InterContinental Hotels Group (LSE:IHG) is the top gain, up around 7.5% after results topped forecasts.
The UK Halifax house price index grew by 2.4% in July, down from 2.7% in June, hitting a one-year low. However the monthly figure was more encouraging with growth of 0.4%, eclipsing forecasts for a gain of 0.3% and the highest monthly gain this year.
In Asia, China’s export growth rose to 7.2% in July year-on-year and imports grew by 4.1%, beating expectations thanks to accommodative measures to support the economy from Beijing. Stocks in India sunk to a three-month low spooked by Trump’s additional 25% tariffs.
US futures are pointing higher, on track to extend yesterday’s gains. The Nasdaq led the charge with Apple Inc (NASDAQ:AAPL) gaining over 5% after announcing more US investment. Donald Trump threatened a 100% tariff on chips unless tech companies invest in US manufacturing. Apple pledged a further $100 billion (£74 billion) to domestic manufacturing, on top of the existing $500 billion.
Growing expectations for a September Fed rate cut are also supporting US markets.
WPP
WPP reported quarterly underlying revenue less pass-through costs of £2.54 billion, down 5.8% and reiterated guidance that this figure would fall by between 3% and 5% this year. Last month it downgraded both its annual profit and organic revenue outlook, citing a ‘challenging trading environment’.
WPP faces an uphill battle amid the macroeconomic uncertainty and after the loss of some major clients. Winning new business has been challenging and its share price has struggled as a result. Publicis Groupe SA (EURONEXT:PUB) overtook WPP to become the world’s largest ad agency last year.
WPP recently appointed Cindy Rose as CEO, replacing Mark Read from 1 September. Rose boasts an impressive CV having spent nine years at Microsoft rising to chief operating officer. Her tech background will be valuable to WPP, which is trying to navigate a rapidly changing ad landscape with the swift ascent of very high-quality AI content that risks cannibalising WPP’s core offering. WPP hopes that Rose will lead the company to integrate AI in a way that boosts its business, rather than having AI steal it.
It has been a difficult period for WPP investors with shares down around 50% this year. The stock is extending losses this morning. It has a hold recommendation from analysts.
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