Investing.com -- British equities closed flat on Tuesday, while the pound slipped against the dollar and European markets traded mixed.
The blue-chip index FTSE 100 edged 0.03% lower and the British GBP/USD declined 0.3% against the dollar to 1.3430.
The DAX index in Germany was flat and the CAC 40 in France fell 0.1%.
Arm Holdings faces growth slowdown, BofA downgrades to neutral
Arm Holdings is expected to experience a near-term slowdown in revenue growth while increasing its dependence on major backer SoftBank into the 2026 calendar year, according to BofA Securities analysts.
The bank downgraded the chip designer to "neutral" from its previous rating. Analysts Vivek Arya and Duksan Jang cited concerns about Arm’s revenue prospects in their note explaining the rating change.
BofA Securities highlighted that Arm’s revenue streams from both licensing and royalties are likely to be negatively impacted by projected weakness in the smartphone market. Specifically, analysts pointed to an anticipated low-single-digit percentage decline in annual global smartphone unit shipments as a key factor behind their more cautious outlook on the U.K.-headquartered company.
Deutsche Bank downgrades BAE Systems, Leonardo and Thales
Deutsche Bank downgraded BAE Systems PLC (LON:BAES), Leonardo SpA (BIT:LDOF) and Thales (EPA:TCFP) on Tuesday, citing weak Maritime margins, French budget uncertainty and limited near-term upside in Europe’s aerospace and defense sector.
Shares of the three defense companies fell following the announcement. BAE Systems, Leonardo and Thales were trading down between 0.5% and 1.9% at 03:48 ET (08:48 GMT).
Deutsche Bank lowered BAE Systems Plc to a "hold" rating from its previous "buy" recommendation. The bank also reduced its target price for BAE Systems to 2140p from 2220p.
ING flags EUR/GBP undervaluation, sticks with March BoE cut call
The EUR/GBP exchange rate has settled below 0.870, a level ING’s models flag as moderately undervalued in the near term.
ING continues to expect the Bank of England to deliver a rate cut in March, a more dovish stance than market pricing, which currently implies a 10 basis point move. This view underpins ING’s expectation of a gradual EUR/GBP rebound in the months ahead.
Rentokil appoints new CEO
Rentokil Initial PLC (LON:RTO) has appointed Mike Duffy as its new Chief Executive Officer and Executive Director, effective March 16, 2026.
Duffy will join the company on February 16 as CEO Designate before taking over from Andy Ransom, who will step down after serving as CEO for several years. Ransom will continue working with the company to ensure a smooth transition until Rentokil’s Annual General Meeting on May 7, 2026.
FTSE 100 earnings round up
Building materials supplier SIG announced that its underlying operating profit for 2025 is expected to reach approximately £32 million, representing an increase of around £7 million compared to the previous year. The company reported that like-for-like sales remained flat year on year, with total revenues amounting to about £2.6 billion. SIG attributed the profit improvement to its restructuring and productivity initiatives, which helped boost performance despite the stagnant sales figures. The expected profit figure falls within market expectations, the company stated.
Pagegroup PLC (LON:PAGE) reported a 4.6% decline in fourth-quarter gross profit as weaker conditions in Europe and the UK counterbalanced growth in the Americas and Asia Pacific regions. The recruitment firm’s gross profit for the quarter totaled £190.7 million, down from £200.1 million in the same period of 2024, representing a 3.1% decrease on a reported basis.
In other corporate news, Trustpilot Group PLC (LON:TRST) announced it expects full-year 2025 bookings to rise 18% on a constant currency basis to $291 million, up from $239 million a year earlier. The reviews platform projects annual recurring revenue to reach $296 million, compared with $231 million in 2024, while revenue is expected to increase to $261 million from $211 million.
Whitbread PLC (LON:WTB) reported a 2% increase in third-quarter group sales, reaching £781 million, supported by higher accommodation revenue in both the UK and Germany.
Games Workshop Group PLC (LON:GAW) delivered a record half-year performance with core revenue rising 17.3% to £316.1 million for the 26 weeks ended November 30, 2025. The tabletop gaming company saw profit before taxation increase to £140.8 million from £126.8 million in the same period last year, while earnings per share grew to 319.9p from 288.9p.
Persimmon PLC’s (LON:PSN) total completions in 2025 rose 12% year on year to 11,905 homes, ahead of market expectations. Private completions increased 8% to 9,830 homes, while partnership completions declined following softer demand in the bulk and build-to-rent market late in the year.
THG Holdings PLC (LON:THG) delivered its strongest quarterly revenue growth since 2021 in Q4 2025, with sales rising 7.0% on a constant currency basis. The e-commerce group reported H2 revenue increased 6.7% year-over-year, approximately 14% ahead of the top end of its previous guidance range of 3.9% to 5.9%.
Gamma Communications PLC (LON:GAMA) announced its financial performance for the year ended December 31, 2025, is expected to be in line with market expectations, with Adjusted EBITDA and Adjusted EPS projected to fall within the consensus range.
Hunting PLC (LON:HTG) reported a 7% year-on-year increase in EBITDA to approximately $135 million for the full year 2025, with EBITDA margin improving to 13% from 12% in the prior year. The global precision engineering group ended the year with a sales order book of around $350 million.
