UK equities edged lower on Friday, with the FTSE 100 down slightly as investors digested the Bank of England’s recent interest rate cut. The British pound also dipped, while TBC Bank Group PLC (LSE:TBCG) slid sharply following its quarterly earnings report.

As of 12:44 GMT, the FTSE 100 index had slipped 0.1%, while sterling declined 0.07% against the U.S. dollar to $1.34. Elsewhere in Europe, the German DAX was down around 1%, while France’s CAC 40 inched up 0.1%.

TBC Bank Reports Higher Earnings, Shares Fall

TBC Bank reported a year-on-year increase in second-quarter earnings, with pretax profit climbing 3.1% to 402,294 Georgian lari (approximately $147,360). Operating income rose 23% to 834,627 lari, while net profit also rose 3.1% to 346,275 lari. Despite the improved financials, shares of the London-listed bank dropped over 5% following the announcement. TBC operates primarily in Georgia and is expanding its presence in Uzbekistan.

Barclays Downgrades Just Group After Price Surge

Barclays (LSE:BARC) downgraded Just Group PLC (LSE:JUST) to “equal weight” from “overweight,” even as it raised its price target to 220p from 185p. The brokerage cited the company’s recent share price gains and reduced its discount rate on the stock valuation from 14% to 12%, reflecting solid capital strength and organic growth. However, Just Group’s first-half 2025 results missed analyst forecasts on key metrics, with adjusted operating profit down 23% to £192 million.

Goldman Sachs Upgrades Diageo

Meanwhile, Diageo PLC (LSE:DGE) received an upgrade from Goldman Sachs (NYSE:GS), which shifted its rating to “neutral” from “sell” while keeping its 12-month price target at 2,000p. The move follows a 20.4% slide in Diageo’s share price since July 2024—significantly worse than the 2% decline in Goldman’s consumer staples coverage and contrasting with an 8.2% gain in the MSCI World Europe index. Analysts pointed to attractive valuation and potential portfolio shifts, though challenges in the U.S. spirits market remain a concern.

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