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Stocks in London were mixed at midday on Friday after US President Donald Trump announced new levies on pharmaceuticals, ahead of US personal consumption expenditures data, the US Federal Reserve’s preferred inflation gauge. The FTSE 100 index was up 30.23 points, 0.3%, at 9,244.21. The FTSE 250 was down 5.93 points at 21,581.84, and the AIM All-Share was up 1.92 points, 0.3%, at 775.54. The Cboe UK 100 was up 0.4% at 926.15, the Cboe UK 250 was down 0.1% at 18,852.51, and the Cboe Small Companies was down 0.2% at 17,467.03. In European equities on Friday, both the CAC 40 in Paris and the DAX 40 in Frankfurt gained 0.3%. The EU’s trade deal with the US shields the bloc’s drug exports from tariffs higher than 15%, Brussels said Friday, after US President Donald Trump announced new levies on pharmaceuticals. The July agreement capped tariffs on pharmaceutical products and other goods at 15%. Trump has now said he will impose a 100% tariff on drugs but Brussels dismissed concerns that the deal was under threat. The EU pointed to the joint statement under which the US agreed to ensure the tariff rate on pharmaceuticals, semiconductors and lumber does not exceed 15%. The US this week cut tariffs on auto imports from the EU to 15% as part of the agreement, down from 27.5%. The European Commission, which leads trade policy for the 27-country bloc, is working hard to secure carve-outs for other sectors including drinks. Stocks in New York were called to open fairly muted. The Dow Jones Industrial Average was called up 0.1%, the S&P 500 index flat, and the Nasdaq Composite down 0.1%. Meanwhile, EU countries on Friday were due to kick off discussions on a potential new €140 billion loan for Ukraine funded by frozen Russian central bank assets. The 27-nation bloc is scrambling to come up with ways to keep money flowing to Kyiv as Moscow’s invasion drags on through a fourth year and US backing dries up. Focus has increased on doing more to use some €200 billion of Russian central bank assets immobilised in the EU since 2022. The step would free EU member states from funding a large part of support for Ukraine needed in the near future themselves, according to German Chancellor Friedrich Merz. ‘That loan would only be repaid once Russia has compensated Ukraine for the damage it has caused during this war,’ Merz wrote in an opinion piece for the Financial Times on Thursday. The pound was quoted broadly flat at $1.3349 at midday on Friday in London, compared to $1.3348 at the equities close on Thursday. The euro stood lower at $1.1669, against $1.1676. Against the yen, the dollar was trading up at JP¥149.88 compared to JP¥149.74. ‘The US dollar held steady on Friday as investors awaited the release of the Federal Reserve’s preferred inflation gauge, the PCE price index, alongside personal spending and income data. Consensus expects core prices to rise 0.2% in August, slowing from July’s 0.3% pace, while personal spending is seen holding at 0.5% and income growth easing to 0.3%,’ commented Sky Links Capital analyst Daniel Takieddine. ‘The upcoming data are pivotal in shaping expectations for the Fed’s policy path after a week of cautious tone from Jerome Powell and resilient economic data. Stronger GDP, durable goods, and jobless claims yesterday questioned the urgency of aggressive easing, prompting markets to scale back the probability of multiple cuts this year and the next. Still, an interest rate reduction in October remains very likely.’ The yield on the US 10-year Treasury was quoted at 4.18%, narrowing from 4.20%. The yield on the US 30-year Treasury was quoted at 4.75%, trimmed from 4.78%. EnergyPathways shares more than doubled around midday. The West Sussex, England-based energy infrastructure project company reported a pretax loss of £607,201 for the six months that ended June 30, widened from £550,159 the year before as administrative expenses rose 13% to £572,490 from £508,421. The company made ‘strong operational progress’ at its Marram Energy Storage Hub development during the half year, and has signed strategic agreements with a number of contractors. EnergyPathways remains ‘optimistic’ in winning the required approvals to move the project to its next phase ‘in due course’. Further, EnergyPathways says that the UK Department for Energy Security & Net Zero considered details of the company’s proposals, concluding that the proposed MESH development is ‘nationally significant’ and that the proposed development is to be treated as development for which development consent is required. At the other end, Ceres Power fell 8.2%. The Horsham, England-based clean energy technology developer reported a pretax loss of £19.0 million for the six months that ended June 30, widened from £10.8 million a year prior. Driving the weaker bottom line was a 26% decline in revenue to £21.1 million from £28.5 million, driven by a weaker performance in Engineering services and licences. Looking to the full year, Ceres said the most probable revenue outturn for 2025 is around £32 million. This represents a 38% decline from £51.9 million recorded in 2024. However, the company noted that it is in discussions about a new manufacturing licence agreement, though completion and timing of revenue recognition is uncertain. Should negotiations succeed, ‘any revenue recognised in the current year would be in addition to the above [revenue] guidance,’ says Ceres. Tandem lost 6.0%. The Birmingham, England-based developer of sports, leisure and mobility products posted a pretax loss of £378,000 for the six months that ended June 30, narrowing from £606,000 a year earlier. Driving the improved bottom line was a 14% advance in revenue to £11.2 million from £9.8 million, with Tandem stating that it ‘continued to navigate a trading landscape defined by ongoing macroeconomic changes and shifts in consumer behaviour.’ On current trading, Tandem said consumer confidence remains subdued, as it noted a backdrop mix of rising unemployment, rising business costs and cost of living pressures. The company said it is ‘cautiously optimistic’ regarding a potential improvement in conditions through the rest of 2025 and beyond. Tandem added that it remains confident in delivering a full-year performance in line with market expectations. Brent oil was quoted down at $68.37 a barrel at midday in London on Friday from $69.15 late Thursday. Gold was quoted higher at $3,747.89 an ounce against $3,729.67. Still to come on Friday’s economic calendar are the US personal consumption expenditures figures and the Michigan consumer sentiment index. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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