(Bloomberg) — Here’s the key business news from London-listed companies this morning.
GDP: The UK economy shrank in the second quarter for the first time since the pandemic, driven by a decline in spending by households and on fighting the coronavirus.
- Gross domestic product fell 0.1% after an 0.8% gain in the first quarter, the Office for National Statistics said
GSK Plc: The pharmaceutical company vowed to “vigorously defend” all claims relating to Zantac, a once-popular antacid, that sent its share price tumbling in recent days.
- The company said it is named as a defendant in about 3,000 personal injury cases in federal and state court, plus others elsewhere
- Meanwhile, the company’s recently spun-off consumer arm Haleon Plc, whose shares also fell, said it is not a party to any of the claims
Flutter Entertainment Plc: The gambling company said the UK government’s delay in publishing a white paper into the gambling industry is “disappointing,” as its revenue from the country declined 13% in the first half.
- In the US, the performance was more positive, with its unit, FanDuel, achieving adjusted Ebitda profitability in the second quarter, and its market share increase to 51%, setting it up to turn a profit next year
888 Holdings Plc: The gambling company’s UK revenue was down by a quarter in the first-half compared to last year, reflecting the implementation tougher safer gambling policies and reversing pandemic-era gains in online gaming.
Outside The City
Liz Truss ruled out a fresh windfall tax on energy companies if she becomes prime minister, while Rishi Sunak vowed to find up to another £10 billion to help Britons pay for soaring power bills.
Whoever wins the Tory leadership contest will have just weeks to line up an assistance package for struggling Britons before energy bills soar in October. Here are some of the candidates that Truss or Sunak might pick for Chancellor of the Exchequer.
In Case You Missed It
IPO activity in the UK has been shrinking since the Brexit vote. Can regulatory changes restore London’s reputation for being the go-to place to list in Europe? Listen to the latest episode of Bloomberg UK’s In the City podcast below — and subscribe on Apple or Spotify.
Soaring temperatures have been great for British pubs, shops and staycations. “Why not soak it up before a very long winter kicks in?,” asks Bloomberg Opinion’s Andrea Felsted.
As the City’s buzz is slowing down amid the holiday period, there’s still a considerable slew of companies due to report results next week — among them are homebuilder Persimmon Plc, construction group Balfour Beatty Plc and contract-for-difference broker Plus500 Ltd.
Also due next week are inflation data for July, which economists expect to hit 9.9%, up from 9.4% in June.
The Readout with Allegra Stratton will be back from its summer break on Aug. 30. In the meantime, here’s what Bloomberg journalists are reading this summer.