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.

The FTSE 100 made another measured gain on Wednesday and was set to close at a fresh record high as investors shook off a weak session for US stocks overnight and focused on more positive domestic stories.

After closing at a fresh record high of 9,142 yesterday, London’s leading index was trading at 9,160 at the time of writing.

While investors may be cautiously optimistic that interest rate traders are increasingly pricing more cuts by the Federal Reserve this year in the wake of poor US economic data, the real driver of gains in London on Wednesday was strong corporate updates.

Hiscox soared 8% to the top of the FTSE 100 leaderboard after reporting increased premiums, and investors looked past the impact of US wildfires.

Fresnillo was back among the gainers with a 5% rise as analysts upped their price targets on the stock following very impressive results released yesterday. Berenberg now has a price target of 1,700p.

Diageo was also riding a wave of optimism after releasing results yesterday. Shares gained another 2.7%.

Glencore was among the losers on Wednesday after the mining giant reported falling profits due to weakness in their coal business. The group also said it planned to stick to its primary listing in London. Shares were 4% lower at the time of writing.

“News Glencore is shelving plans for a New York listing may be good news for the London market,” explained AJ Bell head of financial analysis Danni Hewson.

“However, rather than being a ringing endorsement of the merits of a UK listing, it may instead reflect the fact the company is not exactly in the best place to appeal to a new investor base elsewhere.

“The company’s first-half results saw deepening losses. In part this was due to lower commodity prices, something outside Glencore’s control, but production was also lower, hinting at operational issues. 

“Unlike several of its peers Glencore has stuck with thermal coal and weakness in this market is not making that decision look too smart just at the moment.”

Legal & General shares fell over 2% on steady-as-you-go half-year results that failed to inspire investors. There’s nothing for investors to be majorly concerned about; operating profit rose 6% and the dividend increased 2%. Income investors may be looking for further weakness to lock in L&G’s ever-attractive yield.

Coca-Cola Europacific Partners and Coca-Cola HBC were the top fallers after Coca-Cola Europacific Partners slashed its revenue growth outlook.

Tekcapital’s portfolio company Guident has announced a significant expansion of its autonomous vehicle safety technology patents, with new approvals granted in South Korea and the United States.

According to a Tekcapital announcement released on Wednesday, Guident has received Notices of Allowance for patent applications covering artificial intelligence-powered remote monitoring and control software for autonomous vehicles in South Korea.

The global expansion of the patent portfolio comes as Guident prepares for a NASDAQ listing.

The newly approved patents protect Guident’s innovative remote monitor and control centre (RMCC) system, which utilises distributed sensor fusion and artificial intelligence to enhance autonomous vehicle safety.

The technology is designed to monitor multiple self-driving vehicles simultaneously, collecting sensor data not only from vehicles under its direct control but also from independently operated autonomous vehicles in the vicinity.

When the system detects that a vehicle is operating at an unsafe risk level, it can take immediate control of the vehicle, implement necessary safety measures, and return control once safe operation is restored.

Global Patent Protection

These latest approvals significantly strengthen Guident’s international intellectual property portfolio in autonomous vehicle safety technology. The company now holds granted or validated patents across multiple jurisdictions worldwide, including the United States, Japan, South Korea, Hong Kong, and Canada.

The European coverage is particularly comprehensive, with patent protection secured in 20 European Union countries. These include major markets such as Germany, France, and Italy, alongside Austria, Belgium, Bulgaria, Denmark, Estonia, Finland, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Portugal, Romania, Slovenia, and Sweden.

Growing Autonomous Vehicle Market

The timing of these patent approvals coincides with the rapid expansion of the global autonomous vehicle market.

As self-driving technology becomes increasingly prevalent, safety systems like Guident’s remote monitoring capabilities are expected to play a crucial role in public acceptance and regulatory approval of autonomous vehicles.

Each jurisdiction is developing its own framework for AV safety, with many incorporating remote control and monitoring system requirements.