Barclays Downgrades WPP to Equalweight, Cuts PT

London's blue-chip FTSE 100 index closed 0.21% higher on Thursday as earnings of heavyweights dominated the news.

Rolls-Royce Holdings (RR.L) soared 15.18%, the biggest gainer on the index, after reinstating dividends in 2024 as its full-year attributable profit gained year over year. The British aerospace and defense company also reported revenue growth and the initiation of a 1 billion-pound share buyback.

"Rolls Royce has kicked off FY-24 with impressive results, boasting a significant revenue increase of 17% and a remarkable 57% surge in operating profit," Baader Europe said. "The Civil Aerospace division shines with strong aftermarket performance, while Defence secures substantial orders. With an optimistic outlook for 2025 and upgraded mid-term targets for 2028, Rolls Royce is set for growth and ready to reward its shareholders."

London Stock Exchange Group was the runner-up of the blue-chip index at 6.17% in the green as its adjusted attributable profit and revenue in 2024 climbed year over year.

Bucking the trend was WPP , which lost 15.66% after profit and revenue for 2024 declined year over year. For 2025, the group expects like-for-like revenue less pass-through costs to remain flat or fall up to 2%.

"We expect some improvement in the performance of our integrated creative agencies in the year ahead," CEO Mark Read said. "At the same time, we have comprehensive efforts underway to improve our competitive positioning through new leadership at GroupM, with further investment in AI, data and proprietary media."

On the economic front, analysts at BofA Global Research expect a modest pickup in consumer spending in the UK while the rest of Europe reacts to US President Donald Trump's plans for 25% reciprocal tariffs on European autos and other goods.

"We expect consumption growth to recover modestly to 1.0% in 2025 on the back of real income growth and reduced monetary drag," BofA said. "While inflation is expected to pick up in coming months, we expect wage growth to outpace inflation and expect real income growth of 1.4%y/y in 2025."

European equities traded in the US as American depositary receipts were trending lower late Thursday morning, declining 0.49% to 1,416.32 on the S&P Europe Select ADR Index.

From continental Europe, the gainers were led by internet browser company Opera and biopharmaceutical company Grifols , which rose 6% and 5.7% respectively. They were followed by biopharmaceutical company argenx and brewing company Anheuser-Busch InBev , which increased 4.3% and 1.9% respectively.

The decliners from continental Europe were led by electronics conglomerate Philips and 3D printer company Materialise , which lost 2.3% and 2.1% respectively. They were followed by software firm SAP and oil and gas company Eni , which fell 2% and 1.9% respectively.

From the UK and Ireland, the gainers were led by biopharmaceutical companies Akari Therapeutics and Verona Pharma , which climbed 12% and 7% respectively. They were followed by pharmaceutical company Silence Therapeutics and biopharmaceutical company Mereo BioPharma Group , which were up 4.7% and 2.2% respectively.

The decliners from the UK and Ireland were led by communications company WPP and biotech firm Trinity Biotech , which shed 16% and 2.5% respectively. They were followed by utilities company National Grid and alcoholic beverage company Diageo , which dropped 1.6% and 1.2% respectively.