The FTSE 100 was holding firm on Friday in slow trade typical of an August Friday as investors digest a UK interest rate cut and ongoing trade disruptions that could still upset global growth.

The index has hugged 9,100 since the BoE’s decision to cut rates by 0.25% yesterday, and faded back towards this level after a strong start on Friday.

Investors are pondering yesterday’s Bank of England instalment and whether there is scope for further interest rate cuts this year.

The FTSE 100’s performance since the rate decision at 12pm on Thursday suggests the market is unsure about the bank’s latest messaging, as it continues its fight against inflation with the added pressure of a slowing economy.

“Death, taxes, and the BoE tying themselves in knots at every opportunity. Life’s three certainties,” said Michael Brown, Senior Research Strategist at Pepperstone.

“I jest, slightly, but yesterday’s MPC decision saw policymakers very nearly end up holding Bank Rate steady, despite five policymakers voting in favour of a rate reduction.”

Brown continued to explain that while the voting split was undoubtedly hawkish, the doves and equity bulls would have been marginally reassured by comments around gradual interest rate cuts in the future.

“While the 5-4 vote was much more hawkish than had been expected, the statement read a little more dovish,” Brown said.

The pound was flat against the dollar on Friday after surging higher in the wake of the rate cut.

FTSE 100 movers

Fresnillo was the top riser as gold prices rose amid tariff and geopolitical concerns. Adding 3% on Friday, Fresnillo shares extended their gains to 179% so far in 2025 and is by far the best performing FTSE 100 stock on the year.

“US gold futures hit a fresh record high on reporting that the Trump administration has imposed tariffs on imports of one-kilo bars. Sustained by factors like its safe haven credentials and a weakening dollar in 2025 – this latest development will have gold bugs eyeing the $4,000 level.

Glencore was among the top risers as the miner bounced back from a disappointing set of half-year results. Traders will be eyeing the 275p mark as a point of previous support that has once again held.

IHG took up the rear on Friday with a loss of 3% as traders booked short-term profits after the hotel group spiked yesterday.

The Smarter Web Company PLC has announced another significant Bitcoin purchase as part of its ambitious “10 Year Plan” treasury strategy.

The London-listed technology firm acquired 50 Bitcoin at an average price of £86,650 per coin, representing a total investment of £4,332,507.

This latest purchase brings the company’s total Bitcoin holdings to an impressive 2,100 coins. The total investment now stands at £171,091,407 with an average purchase price of £81,472 per Bitcoin.

The company maintains approximately £19.5 million in net cash reserves available for future Bitcoin acquisitions. This substantial war chest positions them to continue their aggressive cryptocurrency accumulation strategy – the main factor in the explosion in the firm’s share price since IPO.

While Bitcoin captures headlines, The Smarter Web Company’s foundation remains its web services business. The company provides web design, development, and online marketing solutions to clients.

Their revenue model combines initial setup fees with recurring annual hosting charges and optional monthly marketing services.

The Smarter Web Company shares trade at roughly 2.5x the value of their cash and Bitcoin holdings.

Premier African Minerals Limited has provided an encouraging update on its Zulu Lithium and Tantalum Project, revealing steady progress in the second phase of plant testing.

The company launched the second testing phase on schedule with the aim of implementing changes that will allow operations to run 22 days a month to meet production targets.

“We are generally pleased with progress and remain as confident as ever in the final successful conclusion of this phase,” said George Roach, CEO.

Despite encountering typical commissioning challenges, Premier said it continues to see ‘promising results’ at each phase.

Long-suffering investors have heard this before. The plant was supposed to be up and running over a year ago.

A critical decision looms within the next seven days regarding the purchase of a secondary spodumene float section. This decision will determine the timeline for expanding processing capabilities.

Premier is simultaneously addressing two significant plant issues requiring extended timelines. The company plans to replace original OEM-supplied sorters that have proven inadequate for their intended purpose and is targeting the completion of the tantalum recovery circuit.

The firm said several parties have expressed interest in purchasing tantalum, with some potentially willing to assist with circuit completion costs.

Premier African Minerals shares have lost more than 97% of their value since touching highs of 1p in 2023.

The FTSE 100 fell on Thursday after the Bank of England moved to cut interest rates by 0.25% and ex-dividends weighed on the index.

London’s leading index was trading at 9,098, down 0.7% at the time of writing.

As economists had predicted, the Bank of England cut interest rates by 0.25% to 4% in the face of mounting pressure to help stimulate the UK economy after a string of soggy data points.

With unemployment increasing amid tepid GDP growth, the Bank of England had little choice but to reduce borrowing costs, despite inflation jumping in the wake of Donald Trump’s tariffs.

However, the 5-4 split in the vote to cut interest rates reflects an indecision among voting members that reduces the chance of future rate cuts.

“It’s about time the Bank got on with it.  A cut was a done deal, but the question now is how far does the Bank of England go – while today’s cut was easy, it gets harder from here,” said Neil Wilson, Investor Strategist at Saxo 

The prospect of fewer rate cuts in the months to come weighed on investor sentiment, and the FTSE 100 extended losses as the decision broke.

Housebuilders, a reliable barometer of UK investor sentiment, immediately fell as the rate decision was announced. Persimmon was down 1% while Taylor Wimpey gave up 1.2%.

Ex-dividends and WPP

The FTSE 100 lagged gains in European shares and US futures before the rate decision, predominantly due to the impact of ex-dividends.

Several dividend-heavyweights, including AstraZeneca, BT, Barclays and NatWest, traded ex-dividend on Thursday, wiping off a considerable number of points from the index.

Poor corporate updates also dragged on the index.

WPP was lower after the advertising group shed further light on their troubles in the group’s first half results. A trading statement released in July sent shares into freefall as WPP outlined slowing revenues and disruption to their business caused by AI.

WPP shares fell another 2% on Thursday as the group slashed its dividend in half amid falling revenues across all business segments.

“It’s a measure of just how beaten down WPP’s share price is that today’s results only provoked a modest sell-off in the shares,” said AJ Bell head of financial analysis Danni Hewson.

“Make no mistake this was a really weak set of numbers – the last under departing CEO Mark Read.

“Rebasing the dividend takes an unpopular decision out of the hands of incoming CEO Cindy Rose. She will have plenty on her plate when she starts at the beginning of next month with a strategic review of the business.

“At one time WPP was considered a bellwether for the wider economy – given the breadth and depth of its operations and the link between advertising spend and clients’ confidence in their future prospects. However, it is now so consumed by its own problems this wider relevance has diminished.”

Hikma was the FTSE 100’s top faller on Thursday, shedding 7%, after announcing a sharp drop in operating profit due to one-off items. However, revenues were higher and Hikma were confident in an improvement later in the year. Possibly a buying opportunity.

A positive assessment of the macro environment by InterContinental Hotels Group helped shares to the top of the FTSE 100 leaderboard with a 6%.

Elie Maalouf, Chief Executive Officer, IHG Hotels & Resorts, said:

“We remain on track to meet full year consensus profit and earnings expectations. While some shorter term macro-economic uncertainties remain, many are subsiding, and we are confident in the ongoing successful delivery of our growth algorithm, driven by the strength of IHG’s enterprise platform and our ability to further capitalise on our scale, leading positions and the attractive long-term demand drivers for our markets.”

Harbour Energy delivered a transformational first half of 2025, with production more than tripling and free cash flow rising sharply as the company integrated its Wintershall Dea acquisition.

The FTSE 100 company reported average daily production of 488,000 barrels of oil equivalent (kboepd) for the six months to June, up dramatically from 159 kboepd in the same period last year.

The surge was driven by the addition of the Wintershall Dea portfolio, which contributed 173 kboepd from Norway and 75 kboepd from Argentina.

Production was well-balanced across regions and commodities, split roughly 40% liquids, 40% European natural gas, and 20% other natural gas.

New wells came online across key assets, including Maria Phase 2 in Norway, Vaca Muerta in Argentina, and several UK projects.

The elevated level of production is set to continue. Management raised full-year production guidance to 460-475 kboepd from the previous range of 455-475 kboepd, despite completing the sale of its Vietnamese operations in July.

Higher production meant higher revenue for Harbour with the top line surging to $5.3 billion from $1.9 billion year-on-year, whilst EBITDAX rose to $3.9 billion from $1.2 billion.

Lower operating costs played a part in boosting cash flow, as unit operating costs fell roughly 30% to $12.4 per barrel of oil equivalent, down from $18.5/boe.

Free cash flow jumped to $1.36 billion from $380 million in H1 2024, prompting management to upgrade its full-year free cash flow outlook to around $1.0 billion from $900 million previously.

Harbour Energy shareholder returns

Harbour declared an interim dividend of 13.19 cents per share, totalling $227.5 million, marginally above the 13.00 cents paid in H1 2024. More significantly, the company announced a new $100 million share buyback programme.

Combined with the annual dividend policy of $455 million, total expected payouts represent approximately 55% of projected free cash flow for the full year.

Harbour Energy investors cheered the results and shares rose over 14% on Thursday.

Advertising giant WPP has slashed its dividend as it delivered disappointing interim results that reflect the ‘challenging environment’ facing the industry, with revenue declining across key regions while the company invests heavily in repositioning its media operations.

WPP is being ravaged by the changing face of the industry amid the rise of artificial intelligence and shifts in consumer trends.

WPP shares were down over 4% at the time of writing.

A recent trading statement alerted the market to the problems WPP are experiencing, and today’s results provide investors with a breakdown of where things are going wrong.

Revenue Decline Continues

The London-based marketing services group reported H1 revenue of £6.7 billion, down 7.8% on a reported basis and 2.4% like-for-like. Revenue less pass-through costs fell 10.2% reported and 4.3% like-for-like to £5.0 billion.

The second quarter showed little improvement on a poor Q1. Q2 revenue dropped 10.4% reported with a 4.0% like-for-like decline. Revenue less pass-through costs fell even further, down 12.6% reported and 5.8% like-for-like.

Regional Performance Mixed

Geographically, the results paint a picture of widespread pressure. North America, WPP’s largest market, declined 2.4% in the first half, accelerating to a 4.6% drop in Q2.

The UK market proved particularly challenging with a 6.0% decline in H1, while Western Continental Europe fell 5.5%. China continues to struggle significantly, down 16.6% in the first half.

India provided one of the few bright spots, remaining broadly flat with just 0.1% growth.

Media Division Under Pressure

WPP Media, the company’s programmatic advertising and media planning arm, saw revenue less pass-through costs decline 2.9% in H1, worsening to 4.7% in Q2. This comes as the company undertakes what it describes as “significant repositioning and investment” in the division. This is an area that will be hit by the rising trend of AI.

Other integrated creative agencies fared worse, declining 5.8% in H1 and 7.2% in Q2. The public relations unit saw revenue fall 7.8% due to discretionary spend headwinds.

Group operating margins came under significant pressure as headline operating profit fell to £412 million, representing a margin of 8.2% compared to 11.5% in H1 2024.

The company attributed the margin decline to lower revenues and higher severance costs, particularly at WPP Media as it restructures operations.

Perhaps most telling of the company’s current challenges, the board cut the interim dividend to 7.5p from 15.0p in the prior year. Directors said the decision creates room for the incoming CEO to review the strategy. WPP’s net cash outflow will also likely play a part in the dividend cut.