LIVE: GDP grows 0.6%; Evoke losses soar; AstraZeneca drug in US rises

William Hill owner Evoke posted a loss of £143.2m in the first half of the year, down from £32.5m in the same period last year, reflecting the cost of the group’s ambitious turnaround plan.

Core group profits plunged 67 per cent to £43.8m during the half, which the group formerly known as 888 called “disappointing and behind our initial plan”, as revenue fell 2 per cent to £862m.

The London-listed company told investors its turnaround plan had involved increased investment in marketing, cost-cutting efforts and changes to the business’s “country and product mix.”

Evoke CEO Per Widerstrom said the “underlying health of the business is getting stronger.”

‘The corrective measures we have already taken give us even greater confidence that our strategic approach is sound and that we will achieve sustainable success.

“We are completely transforming this business. While the scale of change is significant, we need to achieve profitable growth and value creation in the medium to long term.”

The pound is strengthening in early trading after data showed the British economy grew 0.6 percent in the second quarter of 2024.

Sterling rose 0.18 percent to $1.285 and also strengthened against the euro, which was down 0.16 percent at 85.7 pence.

Shares in British housebuilders rose as a weaker-than-expected rise in inflation fuelled hopes of further interest rate cuts this year.

In a boost for millions of borrowers with mortgages, the 2.2 percent rise in consumer prices in the year to July was less than the 2.3 percent rise expected by economists.

Despite rising for the first time this year, inflation is still just above the Bank of England’s 2 percent target.

Neil Birrell, Investment Director at Premier Miton Investors:

‘The second quarter seems a long way off, but GDP data confirms that the UK economy is in good health.

‘The Bank of England is in a good position, unlike other central banks, to have a certain level of confidence in the data it looks at when setting policy.

‘With inflation also in play, the path to lower interest rates appears set; the timing of cuts is now in focus.’

Richard Carter, head of fixed rate research at Quilter Cheviot:

One factor that may have contributed to growth was the Taylor Swift effect, whose Eras tour fuelled a surge in consumer spending in major cities, helping to boost the services sector by 0.8% in the three months to June 2024.

‘On the other hand, however, the general election will have played a role in stifling growth, as businesses and investors postponed their plans while awaiting the election results.

‘In a significant move, the Bank of England cut interest rates by 0.25% in August, bringing the base rate down to 5%. This cut should help stimulate further economic growth by making borrowing more affordable for households and businesses.

‘Lower borrowing costs encourage consumer spending on goods and services, while businesses are more likely to invest in expansion, all of which helps boost GDP. While the effects of this change may take time to fully manifest, it is expected to provide some economic support in the coming months, but further cuts will be needed for it to really have an impact.

‘Looking ahead, Labour’s first budget, due on 30 October, will bring more clarity to the Government’s fiscal strategy. With planned changes to tax and public spending, businesses will be able to gain greater visibility.

“However, we are unlikely to see a marked acceleration in GDP in the near term. For now, the economy is expected to continue its relatively moderate growth path, driven by wage growth that remains above inflation and the recent easing of monetary policy.”

The UK economy expanded by 0.6 per cent year-on-year in the second quarter, new data from the Office for National Statistics shows.

Growth was in line with forecasts in the three months to the end of June and followed a 0.7 percent expansion in the first quarter.

William Hill owner Evoke posted a loss of £143.2m in the first half of the year, down from £32.5m in the same period last year, reflecting the cost of the group’s ambitious turnaround plan.

Core group profits plunged 67 per cent to £43.8m during the half, which the group formerly known as 888 called “disappointing and behind our initial plan”, as revenue fell 2 per cent to £862m.

The London-listed company told investors its turnaround plan had involved increased investment in marketing, cost-cutting efforts and changes to the business’s “country and product mix.”

Evoke CEO Per Widerstrom said the “underlying health of the business is getting stronger.”

‘The corrective measures we have already taken give us even greater confidence that our strategic approach is sound and that we will achieve sustainable success.

“We are completely transforming this business. While the scale of change is significant, we need to achieve profitable growth and value creation in the medium to long term.”

The pound is strengthening in early trading after data showed the British economy grew 0.6 percent in the second quarter of 2024.

Sterling rose 0.18 percent to $1.285 and also strengthened against the euro, which was down 0.16 percent at 85.7 pence.

Shares in British housebuilders rose as a weaker-than-expected rise in inflation fuelled hopes of further interest rate cuts this year.

In a boost for millions of borrowers with mortgages, the 2.2 percent rise in consumer prices in the year to July was less than the 2.3 percent rise expected by economists.

Despite rising for the first time this year, inflation is still just above the Bank of England’s 2 percent target.

Neil Birrell, Investment Director at Premier Miton Investors:

‘The second quarter seems a long way off, but GDP data confirms that the UK economy is in good health.

‘The Bank of England is in a good position, unlike other central banks, to have a certain level of confidence in the data it looks at when setting policy.

‘With inflation also in play, the path to lower interest rates appears set; the timing of cuts is now in focus.’

Richard Carter, head of fixed rate research at Quilter Cheviot:

One factor that may have contributed to growth was the Taylor Swift effect, whose Eras tour fuelled a surge in consumer spending in major cities, helping to boost the services sector by 0.8% in the three months to June 2024.

‘On the other hand, however, the general election will have played a role in stifling growth, as businesses and investors postponed their plans while awaiting the election results.

‘In a significant move, the Bank of England cut interest rates by 0.25% in August, bringing the base rate down to 5%. This cut should help stimulate further economic growth by making borrowing more affordable for households and businesses.

‘Lower borrowing costs encourage consumer spending on goods and services, while businesses are more likely to invest in expansion, all of which helps boost GDP. While the effects of this change may take time to fully manifest, it is expected to provide some economic support in the coming months, but further cuts will be needed for it to really have an impact.

‘Looking ahead, Labour’s first budget, due on 30 October, will bring more clarity to the Government’s fiscal strategy. With planned changes to tax and public spending, businesses will be able to gain greater visibility.

“However, we are unlikely to see a marked acceleration in GDP in the near term. For now, the economy is expected to continue its relatively moderate growth path, driven by wage growth that remains above inflation and the recent easing of monetary policy.”

The UK economy expanded by 0.6 per cent year-on-year in the second quarter, new data from the Office for National Statistics shows.

Growth was in line with forecasts in the three months to the end of June and followed a 0.7 percent expansion in the first quarter.