22nd Oct 2026 07:56
(Alliance News) - Barclays reports third quarter earnings below consensus, LSEG raises its outlook and announces an acquisition, while grocer Sainsbury's has upped the bottom end of its annual profit guide.
Here is what you need to know before the London market open:
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MARKETS
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FTSE 100: called 0.5% at 10,704.68
GBP: higher at USD1.3399 (USD1.3389 at previous London equities close)
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ECONOMICS
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UK Chancellor John Healey has said his budget will look at cutting "the cost of business". In an interview with The Times, he said he was "conscious" that businesses were also suffering under the cost-of-living crisis. "I want to be a chancellor who backs business in Britain making a profit, and those entrepreneurs who, in the end, are the ones who challenge the status quo, come up with innovative ideas and are trying, some of them through sheer bloody-mindedness, to keep going through these sorts of pressures," he told the newspaper. Healey also said firms had been under "a lot of pressure" in recent years. He continued: "And so when I talk about the cost of business, and recognising that in the same way as we're recognising the cost of living pressures, I'm conscious of that as I go into the budget for both businesses and households."
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BROKER RATINGS
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Berenberg raises RS Group to 'buy' from 'hold' - price target 900 (650) pence
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COMPANIES - FTSE 100
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Barclays reports a rise in third quarter earnings though profit is shy of consensus. In the third quarter of 2026, pretax profit increased 12% to GBP2.32 billion from GBP2.08 billion and total income was up 2.8% to GBP7.37 billion from GBP7.17 billion. Profit fell short of company-consensus of GBP2.42 billion, and total income of GBP7.62 billion was expected, so the top line outcome was also weaker than forecast. Barclays announces a new GBP500 million share buyback, "bringing year-to-date distributions to GBP2.8 billion, up 46% year-on-year", Chief Executive CS Venkatakrishnan says. "I am pleased with the ongoing momentum of Barclays' operational and financial performance," he adds. "With one quarter to go before the end of our original three-year plan, we have either achieved or are on track to achieve all of our 2026 group targets. We are confident in and committed to the 2028 targets that we laid out earlier in the year." For 2026, the firm is targeting a total income of around GBP31.5 billion, with net interest income, excluding the investment bank and head office, above GBP13.7 billion. It sees Barclays UK net interest income around the middle of a GBP8.1 billion to GBP8.3 billion guided range. Guidance is unchanged from the outlook it gave in its half-year results.
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London Stock Exchange Group has lifted its annual guidance and unveiled a deal to acquire Octus for USD3.54 billion, "creating a leading proposition" in credit and private market data. The exchange operator and provider of market data says third quarter gross profit improved 9.5% on-year to GBP2.21 billion from GBP2.02 billion, with total income including recoveries up 8.4% to GBP2.50 billion from GBP2.31 billion. Excluding recoveries, total income climbed 8.5% to GBP2.41 billion on-year, and was 8.8% higher on an organic, constant currency basis, LSEG says. Organic growth in total income excluding recoveries picked up from 7.1% in the second quarter, but was slower than the 9.8% stride made in the first three months of the year. For the whole of the year, it had risen 8.4%. "LSEG's record performance continued in Q3, with accelerating growth across our subscription businesses and sustained performance in Markets," CEO David Schwimmer says. "Our strong cash generation enables us to invest in compelling growth opportunities while also returning capital to shareholders. The planned acquisition of Octus adds valuable proprietary solutions in the high-growth illiquid and private credit space. Alongside the acquisition of Trumid's innovative credit trading services and our existing scale in liquid credit, we are becoming a global leader in fixed income data and trading." Octus is being acquired for USD3.54 billion in cash from funds advised by Permira, and Octus management, including its founder, Kent Collier. LSEG had confirmed talks for a deal earlier this month. The firm adds: "The acquisition of Octus will transform LSEG's presence in credit and private market data, creating a leading proposition in these high-growth areas. Combining Octus' capabilities with LSEG's fixed income data, analytics and distribution means customers will benefit from integrated solutions and intelligence across public and private credit enabling them to source deals, assess risk and manage their portfolios through LSEG's platform." It continues: "Octus significantly expands LSEG's fixed income offering. LSEG is becoming a leading end-to-end credit data, analytics and workflow provider, supporting customers at every stage of the credit lifecycle, across the full public and private credit continuum. Through LSEG's existing data and analytics capabilities and the acquisition of Octus, alongside Tradeweb's planned acquisition of Trumid, LSEG is creating a global leader in fixed income and credit." LSEG has lifted its annual guidance, now seeing organic constant currency growth in total income excluding recoveries of at least 8.0%. It previously saw growth between 7.0% and 7.5%. It sees now an earnings before interest, tax, depreciation and amortisation margin expansion between 100 and 120 basis points, its view upped from 100 basis points. Equity free cash flow of at least GBP2.8 billion is now forecast, up from previous guidance of GBP2.7 billion. LSEG adds that it has further buyback firepower for next year, meanwhile. "We repurchased GBP500 million of LSEG shares in Q3, taking our cumulative buybacks so far this year to GBP2.6 billion. Under our current programme we expect to repurchase a further GBP800 million in Q4 and Q1 2027, concluding by February 2027, with the final tranche expected to start in the coming weeks. We have capacity for further share buybacks of GBP1.0-1.5 billion in 2027," it says.
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Grocer J Sainsbury has lifted its outlook, reporting "volume growth, share gains and profit growth" in its half-year. In the 28 weeks to September 12 its pretax profit from continuing operations improved 7.7% to GBP306 million from GBP284 million, with revenue up 4.1% to GBP16.24 billion from GBP15.60 billion. Argos has been classed as a discontinued operation. In July, it said it agreed to sell the unit to Swift Partners. Sainsbury's has maintained its interim dividend at 4.1 pence per share. By category, Sainsbury's Grocery sales rose 2.9% on-year, but Sainsbury's General Merchandise & Clothing saw a 3.4% decline. Excluding fuel, total sales were 2.6% higher at GBP13.96 billion from GBP13.61 billion a year earlier. Half-year underlying operating profit climbed 3.6% to GBP525 million from GBP507 million, Sainsbury's says. The firm's underlying operating profit guide coming into the half-year earnings ranged from GBP975 million to GBP1.08 billion. This would be equivalent to GBP965 million to GBP1.07 billion on a continuing operations basis, removing the soon-to-be-sold Argos. Sainsbury's has lifted the lower end of that range to GBP1.03 billion. It still expects to deliver free cash flow of more than GBP500 million.
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COMPANIES - FTSE 250
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Rathbones reports a rise in funds under management and administration during the third quarter, despite its Wealth Management arm being gripped by a voluntary pause in inflows among some clients, and a "cautious backdrop ahead of the UK autumn budget". Funds under management and administration rose 0.3% to GBP121.09 billion at September 30, from GBP120.74 billion a quarter prior. It reports a net outflow of GBP401 million, but a positive market and investment performance to the tune of GBP752 million. Wealth Management attracted net inflows of GBP24 million in the third quarter, compared to GBP300 million outflow a year prior. "This is despite the voluntary pause on inflows from enhanced due diligence clients and a cautious backdrop ahead of the UK autumn budget," Rathbones says. Rathbones in June said it would voluntarily halt new inflows from some existing high-risk clients until they "meet certain requirements". "Net flows remained positive for the first nine months of the year at GBP11 million, compared to net outflows of GBP800 million in the first nine months of 2025. Excluding lower-margin, execution-only services, Wealth Management recorded positive net inflows of GBP300 million year to date," Rathbones says. Meanwhile, it reports its Vision Independent Financial Planning unit has received a Financial Conduct Authority "requirement notice". Rathbones expects costs associated with the regulatory review to be around GBP2.5 million. A section 166 notice sees the FCA commission a skilled person review on a firm.
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OTHER COMPANIES
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Media and entertainment group Canal+ says it is on track to achieve its annual aims, after "a solid performance in the first nine months of the year". Revenue over the first nine months of the year amounted to EUR6.41 billion, up 38% on-year from EUR4.66 billion. When including MultiChoice in the prior year's figure, growth was 1.0% on a reported basis, but down 0.3% like-for-like. Canal+ took over MultiChoice early in December last year. In the third quarter alone revenue rose 1.9% on-year to EUR2.13 billion from EUR2.09 billion when including MultiChoice. It was down 1.0% like-for-like, however. "We delivered a solid performance in the first nine months of the year as we continued to execute our strategy. Revenue was in line with our expectations, supported by strong momentum in French-speaking Africa and at STUDIOCANAL," CEO Maxime Saada says. "We remain well on track to achieve our 2026 synergies target and deliver our full-year guidance." It guides for flat revenue and adjusted earnings before interest and tax of EUR735 million for 2026. "While the group is cognisant of the macroeconomic and political backdrop, its medium-term guidance remains unchanged," Canal+ adds.
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By Eric Cunha, Alliance News news editor
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Canal+RathboneSainsbury'sLondon Stock ExchangeBarclays