Asian stocks fall as US and Iran exchange fire – business live

WH Smith announced its intention to raise approximately £100 million through a share placement, aiming to bolster its financial position amidst growing economic uncertainty and the impact of Middle Eastern conflict on its profits. The high street retailer plans to issue up to 26 million shares, representing about 20% of its current share capital, with a separate offer targeted at UK retail investors. The company cited disappointing outcomes from certain acquired businesses and contract obligations in recent years, emphasizing a need for greater capital discipline and a focus on returns. WH Smith highlighted its strong core business and attractive markets, particularly in North America, as areas for profit expansion. The company stated that the share placement is a prudent measure to accelerate its transformation and drive a profitability-focused growth strategy, acknowledging the headwinds created by current economic uncertainty and its effect on consumer spending. This move is intended to provide the financial flexibility needed to address legacy issues while investing in the core business model. The announcement comes as consumer price index (CPI) numbers are anticipated to show a further increase in costs, with expectations of a 4.2% year-on-year rise and a 0.5% jump in May, driven by elevated wholesale energy costs spreading into the broader economy. The ongoing conflict in the Middle East is noted as a factor contributing to the entrenched and difficult-to-solve nature of the situation.