Must read: latest UK earnings, bitcoin
ii’s head of investment rounds up the morning’s big news.
14th August 2025 09:03
by Victoria Scholar from interactive investor
The FTSE 100 is bucking the uptrend, opening down despite gains for the CAC 40 and DAX. A number of stocks are ex-dividend today including HSBC Holdings (LSE:HSBA), London Stock Exchange Group (LSE:LSEG), Haleon (LSE:HLN) and Fresnillo (LSE:FRES).
Diploma (LSE:DPLM) is the worst-performing stock on the blue-chip index after its chief financial officer Chris Davies stepped down over personal conduct issues. Meanwhile, Admiral Group (LSE:ADM) is the top performer, on track for its best intraday performance in two years thanks to a surge in first-half earnings.
- Learn with ii: ISA Investment Ideas | Top ISA Funds | Buy US Shares in UK ISA
In terms of UK data and another sign of housing market weakness, the July RICS house price balance plunged to -13% in July, from -7% in June to hit the softest level in a year. The figure was sharply below expectations for a reading of -5%. Sentiment improved on a 12-month view but was still at a January 2024 trough.
- Aviva going from strength to strength with profit rise and dividend hike
- FTSE 100 insurer slides despite profit beat
In the US, futures are pointing to a slightly softer open after the S&P 500 hit a record closing high again. The focus today is on US PPI data for July, which will provide further insight into the inflation picture and the likelihood of a rate cut from the Fed in September, which markets are currently pricing in as a near certainty.
UK GDP
UK GDP grew by 0.3% in the second quarter (Q2), beating expectations for growth of 0.1%, but still a slowdown from 0.7% in Q1. This was driven by strong growth in construction (+1.2%) and services (+0.4%), partially offset by a drop in production (-0.3%).
According to the Office for National Statistics (ONS), growth was led by services, in particular computer programming, health and vehicle leasing as well as updated source data for April which provided a tailwind. Growth in government spending and exports were partly offset by weaker household spending and business investment.
For the month of June, the economy grew by 0.4% rebounding from a decline of 0.1% in May. The ONS said services again was responsible for the monthly improvement with growth in scientific R&D, engineering and car sales.
Chancellor Rachel Reeves said the data is “positive with a strong start to the year and continued growth in the second quarter”.
Today’s figures point to a slowdown in the second quarter after a very strong start to the year. However there is plenty to cheer in this update, given that growth eclipsed albeit low expectations even in the face of a troublesome cocktail of domestic and international headwinds including President Donald Trump’s tariff uncertainty that has undermined consumer and business confidence.
Also taking its toll is elevated inflation, higher business costs, and the possibility of further tax increases in the autumn. We’ve seen these pressures weigh on the labour market with vacancies on the decline and unemployment at a four-year high. However, the UK services sector has proven to be quite resilient this year and continues to act as the key growth engine for the economy. This data is a win for the chancellor, who has made growth a policy cornerstone of her time in office.
The pound is reacting positively to the news, trading higher against most major currencies.
BITCOIN
Bitcoin hit fresh record highs, surpassing $123,000 overnight but has since pared gains. However, other cryptos such as ether and solana are still trading higher. $125,000 is the next key resistance level to watch with a break above potentially fuelling further gains.
So far this year bitcoin is up around 30% and 100% over the past 12 months against the US dollar. An accommodative stance from the Trump administration combined with expectations of a September Fed rate cut have helped to propel gains for bitcoin.
Cryptos remain a high-risk bet because of how much and how quickly their value can change unexpectedly. Cryptos should only take up a small proportion of a well-diversified portfolio.
These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties. The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.
Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company's or index name highlighted in the article.