Investing.com -- British stocks rebounded in Wednesday afternoon trading after opening lower as investors digested earnings reports from U.K. firms including Burberry Group PLC (LON:BRBY), Compass Group PLC (LON:CPG), and Imperial Brands (LON:IMB), with Burberry also flagging potential job cuts.
As of 1138 GMT, the blue-chip index FTSE 100 rose nearly 0.1% and the British pound rose 0.02% against the dollar to 1.33.
Meanwhile, DAX index in Germany fell 0.2%, the CAC 40 in France fell 0.4%.
Aviva’s £3.7 bln Direct Line takeover faces CMA scrutiny
Britain’s Competition and Markets Authority (CMA) has launched an initial probe into Aviva PLC’s (LON:AV) proposed £3.7 billion ($4.9 billion) takeover of Direct Line Insurance Group PLC (LON:DLGD).
The regulator confirmed on Wednesday that it has commenced a phase one review of the transaction.
Burberry flags 1,700 job cuts, surprises with profit
Burberry Group shares surged 15.4% after announcing surprise profit and plans to cut as many as 1,700 jobs as part of an expanded cost-cutting initiative tied to its turnaround strategy.
Burberry posted stronger-than-expected sales for the fourth quarter and a surprise full-year adjusted operating profit, signaling initial progress in CEO Joshua Schulman’s turnaround efforts.
The British luxury brand reported an adjusted operating profit of £26 million ($34.55 million) for the year ended March 29, down sharply from £418 million the previous year but exceeding the consensus forecast of £11 million and narrowly avoiding a loss.
Compass Group maintains full-year outlook
Compass Group reaffirmed its full-year guidance expressing confidence in its ability to manage ongoing economic pressures.
CEO Dominic Blakemore noted that while the company faces macroeconomic challenges, its diverse client portfolio and strong local sourcing capabilities are expected to mitigate the impact of tariffs.
Imperial Brands CEO Stefan Bomhard to retire
Imperial Brands announced that CEO Stefan Bomhard will retire after five years of leading the company through a strategic refocus on core tobacco products and improved shareholder returns.
Alongside the leadership change, the firm outlined its financial targets for fiscal years 2026 to 2030. It is aiming for adjusted operating profit growth of 3% to 5%, signaling a steady long-term strategy.
Shares fell over 7% in afternoon trade.
BoE’s Mann cites gradual job market cooling in BoE rate decision
Bank of England policymaker Catherine Mann said Wednesday that she opted to keep interest rates steady last week, a reversal from her earlier support for a 50-basis point cut in February.
Her shift in stance was driven by signs of continued strength in the U.K. labor market, which she noted has held up better than expected. While there are indications of a gradual cooling, Mann told CNBC the slowdown has been neither sharp nor sudden.
GSK (LON:GSK) to buy experimental gut disorder drug from Boston Pharma in $1.2 bln deal
British drugmaker GSK said Wednesday it will acquire efimosfermin, a Phase III specialty drug candidate, from Boston Pharmaceuticals in a deal worth $1.2 billion.
The full amount will be paid upfront under the agreement terms.