GlaxoSmithKline Plc Wednesday reported a decline in second-quarter profit, reflecting mainly a drop in turnover due to weak respiratory drugs sales, as well as ongoing bribery investigation in China. The company also cuts its core earnings per share outlook for full year 2014. The shares fell more than 5 percent on the NYSE and London.
Bank of England Governor Mark Carney said on Wednesday that interest rate will have to start rising to maintain price stability as the economy normalizes. "As the economy normalizes, Bank Rate will need to start to rise in order to achieve the inflation target," Carney said in a speech in Glasgow, Scotland.
Bank of England policymakers unanimously decided to maintain the key interest rate and quantitative easing at the meeting held on July 9 and 10, but signaled the possibility of a rate hike late this year as growth became more established.
Mining giant BHP Billiton Ltd. reported Wednesday a 19 percent year-over-year increase in iron ore production for the fourth quarter, and a 15 percent growth from the previous third quarter. Production of metallurgical coal grew 9 percent. Total iron ore production for the full-year 2014 also increased 20 percent, delivering its fourteenth consecutive annual production record.
Chipmaker ARM Holdings Plc. (ARM.L, ARMH) Tuesday said profit for the second quarter increased significantly from last year, as sales improved with increase in demand for the company's technology in smart mobile devices, consumer electronics and embedded computing chips.
British supermarket chain Tesco Plc. Monday warned that first-half sales and trading profit are somewhat below expectations as the current trading conditions are more challenging than expected earlier. Following this, Philip Clarke, chief executive officer, decided to step down. Tesco shares are gaining around 3 percent in the morning trading in London.
The Ernst & Young ITEM Club estimates the U.K. economy to post the strongest growth among the G7 nations as investment from firms is set to surprise on the upside. The think tank projected 3.1 percent growth for this year, which is higher than the 2.9 percent predicted in the previous Spring forecast. The economy started to rebalance from consumption towards investment and ultimately exports.