Daily market update: Future, Richemont, Workspace, Character

“The FTSE 100 continued its ascent as investors loaded up on pharma and energy stocks,” says Russ Mould, Investment Director at AJ Bell.

“AstraZeneca, Shell and GSK were the biggest contributors to the FTSE 100 in terms of index points, suggesting that investors were fishing for opportunities among areas that have recently been weak.

“Pharma stocks have been volatile of late amid fears of tariffs on the sector, while a pullback in oil prices dragged down the big oil producers yesterday.

“All sectors on the UK market were in positive territory apart from industrials and real estate. Land Securities was the biggest FTSE 100 faller despite reassuring investors that it hadn’t seen an impact of economic uncertainty on customer demand or investment markets.

“Wall Street’s rally continued with pace last night and the S&P is now in positive territory year-to-date. That will be a relief to investors who feared that a lacklustre performance in the first part of 2025 marked the end of a bull run for US equities.”

Future

“The market was already nervous about the prospects for Future given the impact of tariff uncertainty on the advertising market. Such fears have now been confirmed, as full-year revenue guidance is cut alongside first-half results.

“Advertising spend is closely linked to the fortunes of the wider economy, given companies are far more likely to demonstrate largesse when they are feeling confident about life.

“Future built its success on acquiring publishing assets focused on niche interests and monetising content through an e-commerce and digital advertising platform. It would receive commission on purchases originated from someone clicking links in its articles to a retailer’s website. If readers are now clicking on fewer links because they are watching their wallets more closely, and if advertisers are reducing their spend, it makes Future’s life more difficult.

“Future’s price comparison site GoCompare – which you might expect to offer a measure of diversification – also saw revenue fall, although no more than had been expected by the market.

“Much may depend on Future’s ability to protect its profitability. If the market gets a whiff that margins are under pressure thanks to falling revenue then there may be more pressure on the share price and management.”

Richemont

“Demand for high-end jewellery in the US looks robust, judging by Richemont’s latest update which crept in ahead of analysts’ expectations.

“This still represented a slowdown from the growth seen in the previous quarter but in the current environment, and given the wider malaise in the luxury sector, high single-digit growth is nothing to be sniffed at all. Weak Chinese demand for watches is a negative and means Richemont needs to see continued resilience in the US market.

“The business is increasingly reliant on its jewellery arm and will hope the strength of its brands in this area will sustain it.

“However, Richemont continues to face several significant headwinds including the strength of the Swiss franc against the dollar, higher gold prices and the impact of tariffs.”

Workspace

“So much for the idea that serviced offices would thrive in times of economic uncertainty. A warning from Workspace that profit will be hit by various factors including higher large unit vacancies and an increase in costs has soured sentiment.

“The pressure is now on to get spaces filled and to convince companies that flexible workspace is the solution to their problems.”

Character

“One fifth of the toy company’s products are sold to US and made in China, placing Character in the firing line for tariffs. It had already withdrawn earnings guidance and problems seem to be getting worse.

“Character says tariff fears are weighing on customers in other parts of the world and committed orders for its toys are below expectations. That’s problematic as it has already halted shipments from China to the US, so it needs customers elsewhere in the world to pick up the slack.

“It sets the company up for a big earnings setback as the year goes on. Character is trying to stay optimistic and believes it will still turn in a full-year profit. However, if the tariff situation doesn’t ease, Character will have to pull out every trick in the book to ensure that customers are still placing orders for its toys.”

These articles are for information purposes only and are not a personal recommendation or advice.