22nd Jun 2026 07:49
(Alliance News) - Stocks were called higher on Monday after the US and Iran, mediators said, agreed to set up communications lines to keep the vital Strait of Hormuz open and end fighting in Lebanon after their first round of talks in Switzerland.
Also, Castlelake announced that it recently made a third takeover proposal, which easyJet's board rejected, saying it wants the airline's shareholders to be able to consider it before this week's PUSU deadline.
Meanwhile, UK Prime Minister Keir Starmer is expected to announce his resignation as early as Monday, as Andy Burnham is due to be sworn in as Makerfield's MP, with plans to press Starmer to set out plans to stand down.
Here is what you need to know before the London market open:
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MARKETS
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FTSE 100: called up 19.7 points, 0.2%, at 10,382.97
GBP: lower at USD1.3210 (USD1.3227 at previous London equities close)
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BROKER RATINGS
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JPMorgan raises Standard Life price target to 975 (950) pence - 'overweight'
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Goldman cuts Big Yellow Group price target to 810 (830) pence - 'sell'
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COMPANIES - FTSE 100
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Babcock International reports final results for the year ended March 31. Revenue increases organically by 8% to GBP5.18 billion, up from GBP4.83 billion, which it attributes to strong performance in Nuclear and Aviation. Pretax profit, however, decreases to GBP283.7 million from GBP329.1 million. Diluted earnings per share fall to 41.3 pence from 48.0p. Babcock recommends a full-year dividend of 7.5p, up 15% from 6.5p, including a final dividend of 5.0p, up from 4.5p. Says its expectations for financial 2027 are unchanged, anticipating "another year of good progress". Notes that around 70% of revenue is under contract as of April 1. Babcock also reiterates its medium-term guidance of average mid-single digit organic revenue growth, an underlying operating margin of at least 9%, and average underlying operating cash conversion of at least 80%.
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BAE Systems commences the third tranche of its three-year, up to GBP1.5 billion buyback programme. The current tranche is worth up to GBP500 million, and BAE expects to complete it by June 30, 2027.
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COMPANIES - FTSE 250
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Castlelake says easyJet's board has now rejected three non-binding indicative takeover proposals. The third, most recent proposal offers 625p per easyJet share in cash. The first two gave offer prices of 560p and 600p per share. "As with the second proposal, Castlelake expected that the third proposal would elicit prompt engagement from the easyJet board," the private credit group says. "However, the easyJet board rejected the third proposal on [Sunday]." Castlelake now says it is publicly announcing the third proposal "to enable easyJet shareholders to consider its merits and provide their views...to the easyJet board" before its put-up-or-shut-up deadline on Friday evening. Castlelake adds that it respects the importance of EU ownership requirements, saying it partnered with Peter Bellew and Mark Breen as EU national individual investors. Further, Castlelake says it could make a reduction to its 625p per easyJet proposal, should the company declare or pay any dividend or any other distribution or return of value to shareholders.
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Ocado says it notes recent media speculation regarding succession planning for its chief executive officer. "Ocado confirms that the CEO and the board continually engage in long-term succession planning and regularly engage with potential candidates," it says.
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OTHER COMPANIES
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SulNOx signs a new four-year supply agreement with Eastern Pacific Shipping, which it expects to generate "significant revenue" and says represents the largest commercial agreement in its history. The deal "significantly expands" EPS's deployment of Sulnox Eco, from approximately 30 vessels to over 50 vessels. SulNOx will supply approximately 1.2 million litres of its core product over the term of the contract. Also, EPS affiliate EPS Ventures is increasing its strategic investment in SulNOx, subscribing for up to 5.5 million new shares at 2p each. The company notes that EPS has introduced it to "a number of major shipowners, operators and fleet managers worldwide". Also, EPS has reported positive results from using Sulnox Eco alongside biofuel blends.
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The Spanish owner of Banco Santander SA UK has revealed that it aims to cut costs by more than EUR500 million or GBP433 million by accelerating the use of artificial intelligence across its global operations. Banco Santander said it is targeting more than EUR1 billion or GBP860 billion in extra revenues and cost savings from AI between 2026 and 2028, with over half expected to come through cost-cutting. The savings are set to come from automation, productivity gains and process simplification. The lending company did not disclose how many jobs would be impacted as part of the plan.
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By Emma Curzon, Alliance News reporter
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