UK equities opened lower on Thursday amid cautious sentiment ahead of the Bank of England’s expected decision to hold interest rates steady. Investor nerves were also heightened due to ongoing speculation about potential U.S. military action in the Middle East.

By 07:19 GMT, the FTSE 100 index had slipped 0.4%, while the British pound weakened 0.2% against the U.S. dollar, trading just above 1.34. European markets followed suit, with Germany’s DAX down about 0.7% and France’s CAC 40 retreating 0.6%.

Middle East Tensions Escalate

Israel and Iran exchanged air strikes on Thursday, intensifying regional hostilities. Meanwhile, a Bloomberg report indicated that senior U.S. officials are preparing for a possible strike on Iran as soon as this weekend, though the situation remains fluid.

Vodafone Names Microsoft Executive as CFO

Vodafone Group (LSE:VOD) revealed that Pilar López, a senior executive from Microsoft (NASDAQ:MSFT), will join as Chief Financial Officer starting October 1, 2025. She will succeed Luka Mucic, who had announced his departure earlier this year on May 7.

Frasers Group Withdraws Interest in Revolution Beauty

Frasers Group (LSE:FRAS), owned by Mike Ashley, confirmed it will not pursue a bid for Revolution Beauty (LSE:REVB), a British cosmetics company facing financial difficulties. Following the announcement, Revolution Beauty’s shares plunged more than 21%, while Frasers Group shares declined 1.5%.

Whitbread Q1: UK Softness Offset by Strong German Growth

Whitbread PLC (LSE:WTB) reported mixed first-quarter results for fiscal 2026. While Premier Inn’s UK accommodation revenue fell 2% year-on-year and like-for-like sales dipped 3%, the company’s German operations delivered solid growth. Whitbread also cited limited visibility ahead due to ongoing economic and geopolitical uncertainties.

Hays Predicts £45 Million Profit as Recruitment Slows Globally

Hays Plc (LSE:HAS) forecasted a pre-exceptional operating profit of £45 million for FY 2025, attributing the slowdown to subdued activity in permanent recruitment markets worldwide. The firm noted that Q4, ending June 30, experienced weaker engagement from both clients and candidates amid persistent macroeconomic concerns.

XPS Pensions Posts Strong Full-Year Performance

XPS Pensions Group PLC (LSE:XPS) reported robust full-year results ending March 31, 2025, with revenues rising 18% to £231.8 million, in line with prior guidance. Adjusted EBITDA increased 27% to £69.7 million, surpassing analyst expectations, while its EBITDA margin improved by 2.2 percentage points to 30.1%. Dividend growth also outpaced forecasts.

Eli Lilly to Appeal UK Rejection of Alzheimer’s Drug Reimbursement

Eli Lilly (NYSE:LLY) announced plans to appeal a U.K. health agency’s decision denying reimbursement for its Alzheimer’s treatment Kisunla, continuing its efforts to gain market access.

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