Investing.com -- British stocks traded higher on Friday, supported by market optimism following a major U.S.-U.K. trade deal and the Bank of England’s interest rate cut.
The blue-chip index FTSE 100 gained 0.3% and the British pound rose 0.6% against the dollar to 1.3318.
Meanwhile, the DAX index in Germany and the CAC 40 in France both rose 0.6%.
New U.S.-U.K. trade deal locked
On Thursday, the U.S. and the U.K. announced a major trade agreement aimed at expanding market access and strengthening economic ties.
The deal is expected to unlock billions of dollars in export opportunities for U.S. industries, particularly in agriculture, including increased access for American beef, ethanol, and other key farm products.
As part of the agreement, the U.K. will reduce or eliminate various non-tariff barriers that previously disadvantaged U.S. goods.
“This is shaping up to be a truly great deal for both countries,” according to the U.S. President Donald Trump, while the U.K. Prime Minister Keir Starmer echoed the sentiment, stating, “This agreement will enhance trade between our nations, protect existing jobs, and create new ones by opening up market access.”
U.K. plans fresh sanctions on Russia’s ’shadow fleet’
Prime Minister Sir Keir Starmer said on Friday that the measures would apply to as many as 100 vessels, which have been involved in transporting over £18 billion worth of cargo since the beginning of 2024.
“My government will safeguard working people from paying the price from the costly threat Putin’s fleet poses to U.K. critical national infrastructure and the environment,” Starmer said.
BP (NYSE:BP) shares climb after FT report of rival takeover interest
BP PLC (LON:BP) shares rose over 4% after the Financial Times reported that several major energy firms have explored the possibility of acquiring the U.K.-listed oil giant.
The report said that Shell PLC (AS:SHEL), Chevron Corp (NYSE:CVX), Exxon Mobil Corp (NYSE:XOM), TotalEnergies SE (EPA:TTEF) and Abu Dhabi’s Adnoc have all assessed the potential for a takeover.
Oil trader Vitol has also reportedly shown interest in acquiring parts of BP’s business.
Travis Perkins ’ new CEO
Travis Perkins PLC (LON:TPK) has appointed Gavin Slark, the current CEO of SIG (LON:SHI), as its next chief executive.
Slark will remain in his role at SIG during a transition period through the end of the year. He is set to assume his new position at Travis Perkins in early 2026.
Travis Perkins shares rose 6.9% after the announcement, while SIG fell over 13%.
British Airways’ parent posts revenue rise, maintains outlook
International Consolidated Airlines Group (LON:ICAG)), the parent company of British Airways, posted a 9.6% increase in revenue for the first quarter, surpassing expectations, while reaffirming its guidance for the full year.
Shares rose 2.4%.
Urban Logistics rises as LondonMetric plans takeover
Shares of Urban Logistics Reit PLC (LON:SHED) climbed 4.7% after commercial property firm Londonmetric Property Plc (LON:LMPL) unveiled plans to acquire the company.
Under the proposed deal, LondonMetric intends to purchase all current and future issued ordinary shares of Urban Logistics in a transaction valued at £698.9 million.
U.K. must ‘rebuild’ trade with EU, Bailey says
Bank of England Governor Andrew Bailey emphasized the importance of restoring the U.K.’s trade relationship with the European Union, stating in a BBC interview that improved trade with the bloc would benefit the British economy.
Bailey noted that fostering a more open trading relationship with the EU “would be beneficial.”