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Economy:

Bank of England set to hold interest rates despite hitting 2% inflation target

Monetary policy unlikely to change as services inflation numbers are still sticky

Trending tickers: Tesco, Adobe, Tesla and Crest Nicholson

The latest investor updates on stocks that are trending on Friday

Pedro Goncalves
·Finance Reporter, Yahoo Finance UK
·3-min read
FILE - This is a Monday, Sept. 22, 2014 file photo of pedestrians as they pass a Tesco shop in London. Tesco shares plunged 16 percent Tuesday Dec. 9, 2014 after the supermarket giant warned that its full-year profits will be significantly below market expectations. The company, one of the world's biggest retailers, said trading profits for the year to February will not exceed 1.4 billion pounds ($2.2 billion), far below market forecasts of about 2 billion pounds. (AP Photo/Kirsty Wigglesworth, File)
Tesco shares rise as profit guidance reaffirmed. (ASSOCIATED PRESS)

Tesco shares have risen after the supermarket reiterated its full-year guidance in Friday’s trading update.

The UK’s largest supermarket firm revealed total retail sales grew by 3.4% to £15.3bn ($19.5bn) in the 13 weeks to 25 May, compared with the same period last year.

Tesco says it is growing its UK market share faster than all its “key competitors”, with food sales up 5% in the quarter.

The retailer reiterated its guidance for the full year, expecting a retail adjusted operating profit of at least £2.8bn and retail free cash flow of between £1.4bn and £1.8bn.

“Tesco has done exceptionally well to grow market share given rising competition. Its full-line offering sets it apart from the likes of Aldi, and its product proposition puts it ahead of other big names,” said Sophie Lund-Yates, lead equity analyst at Hargreaves Lansdown.

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Read more: FTSE 100 LIVE: Stocks mixed in Europe as Tesco and Tesla CEO pay packets take spotlight

“Moving forwards, investors will want to see further growth kicked out from wholesaler Booker — as well as a clearer understanding on what the next chapter looks like for food.”

Shares in Adobe jumped 14% in pre-market trading on after the design software maker reported earnings and revenue that topped estimates and lifted full-year guidance.

The company called for adjusted earnings per share of $4.50 to $4.55 for the fiscal third quarter, with $5.33bn to $5.38bn in revenue.

Adobe now expects revenue of between $21.4bn and $21.5bn, compared with its prior forecast of between $21.3bn and $21.5bn.

The company also raised its fiscal-year profit forecast to as much as $18.20 a share, excluding some items, compared with a previous outlook of $18 a share.

Read more: Stocks that are trending today

“We’re excited about the accelerating pace of innovation across the Digital Media business and pleased with the adoption of AI functionality as well as its early monetization across Document Cloud and Creative Cloud, including our flagship applications, Firefly services and Express,” David Wadhwani, president of Adobe’s Digital Media business, said.

Adobe has developed its own AI image generation tool called Firefly which it trains on data it has the rights to, at a time of heightened concern regarding data privacy and copyright around AI-created content.

Tesla shareholders have voted both to reapprove a pay package for chief executive Elon Musk once valued at $56bn and to reincorporate the electric-vehicle maker in Texas.

Onstage at the annual shareholder meeting in Austin, Texas, the billionaire described himself as "pathologically optimistic".

"I just want to start off by saying, hot damn, I love you guys!" Musk said.

Read more: 'I wasn't an obvious choice as partner but our firm's success is down to retaining talent'

The proposal passed despite opposition from some large institutional investors and proxy firms.

The vote will strengthen the company’s hand as it attempts to overturn a January decision by a Delaware court to void the 2018 package of stock options — the largest in US history — due to concerns about its value and the independence of the board.

The judge invalidated it in January, describing it as "unfathomable".

Housebuilder Crest Nicholson has confirmed that it rejected a £650m takeover attempt by rival Bellway (BWY.L) last month.

The details came just after Crest, which has its headquarters in Surrey issued a profit warning that sent its shares tumbling.

The FTSE 250 developer said the offer, worth 253p per share, would have left its shareholders with about 17.1% of the new company.

But despite a 19% premium to its closing share price on Thursday, Crest Nicholson on Friday said the proposal “fundamentally undervalued Crest Nicholson and its future prospects”.

Crest said that demand had weakened amid ‘volatility’ in mortgage rates and that the General Election had created ‘short-term uncertainty’.

Annual profits are now expected to be between £22m and £29m, down from previous market expectations of £39m.

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