12th Sep 2025 07:56
(Alliance News) - The UK economy had a tepid July, as expected, keeping a lid on the pound in morning trade.
Here is what you need to know before the London market open:
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MARKETS
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FTSE 100: called 0.2% at 9,316.78
GBP: lower at USD1.3552 (USD1.3578 at previous London equities close)
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ECONOMICS
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The UK economy registered no growth in July, as expected, numbers on Friday showed. According to the Office for National Statistics, the UK economy tread water in July, an outcome in line with consensus, after gross domestic product advanced 0.4% in June from May. "Real gross domestic product grew by 0.2% in the three months to July 2025 compared with the three months to April 2025, down from three-month-on-three-month growths of 0.3% in June 2025 and 0.6% in May 2025," the ONS said. "Services output grew by 0.4% in the three months to July 2025, compared with the three months to April 2025, and was the main contributor to GDP growth over this period, after growing 0.4% in the three months to June 2025." In July alone, service and construction output rose 0.1% and 0.2% from June, but production fell 0.9%. The production reading fell short of consensus. It had been expected to be flat, according to FXStreet. Separate data from the ONS showed the UK trade deficit widened in July. The trade gap stretched to GBP5.26 billion from GBP5.02 billion in June.
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The UK government is "absolutely committed" to its pledge to build 1.5 million new homes in England by 2029, the new Housing secretary has said. Steve Reed said the government was standing firm behind the vow, which was part of Labour's pre-election manifesto, telling the BBC: "It's what we're going to do." Reed told the broadcaster: "We'll do it by working in partnership with the developers and with the builders. "My job is to get every barrier out of the way that is stopping that construction going ahead."
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BROKER RATINGS
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Berenberg cuts WH Smith to 'hold' (buy) - price target 700 (1,600) pence
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COMPANIES - FTSE 250
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Murray Income Trust says its recently ended financial year has seen market that "equally - if not more - volatile". The investor focused on UK equities international and domestic equity markets were "remarkably sanguine overall" in the face of the turbulence, which Murray Income partly puts down to the UK government budget last year. "These domestic policy shifts, combined with the broader international climate, have contributed to periodic fluctuations and instability in both UK and global financial markets," it says. Murray Income's net asset value per share at the end of June faded to 936.3 pence from 946.0p the year prior. The net asset value total return was 2.7%, easing from 9.9% in financial 2024, and below the 11.2% achieved by its benchmark, the FTSE All-Share Index. Murray Income reports it has lifted its dividend to 40.00p per share from 38.50p. "The board recognises and shares shareholders' disappointment that, against this backdrop, the company's NAV and share price returns over the year were only 2.7% and 4.3%, once again lagging behind the benchmark. In fact, the company is now trailing the benchmark over one, three, five and ten years," it adds. "As part of the review announced in July 2025, which remains ongoing, the board is considering proposals regarding the company's future and its management arrangements from a range of candidates, including third party investment managers, other investment companies, and the incumbent manager. The board is taking into account factors including historic record, portfolio construction, investment philosophy, investment management structure, income generation, risk controls and commitment to investment trusts."
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OTHER COMPANIES
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Big Technologies says it looking to "expand its claim" against former CEO Sara Murray. The provider of electronic monitoring solutions reports that "further very serious matters that have come to light". Big Technologies alleges the new developments centre on a "forgery or deliberate falsification by Sara Murray of various documents". These include board minutes of Buddi, a unit which Big Technologies acquired in 2018. These minutes show Buddi board members agreeing "to sell their shares in Buddi" to Big Technologies. Big Technologies alleges: "Sara Murray created or otherwise forged or deliberately falsified the affected documents more than three years after the dates on their face and, specifically, in the days immediately after the claimants first notified the company and Buddi on 20 July 2021 that they were challenging the exercise of the drag right and claiming that they were wrongly forced or induced to sell their shares in Buddi." Big Technologies has the view that a drag right exercise was invalid and this will have a "material adverse impact" on its position in the Buddi litigation, where some former shareholders of Buddi allege they were wrongly forced to sell their shares in Buddi "and were not given the opportunity to reinvest into Big Technologies". "As a result of this, the company has also concluded that it and Buddi are unlikely to be able to successfully defend material elements of the claim in the Buddi litigation," it adds. Big says that while the new developments are serious in nature, it has "offered to Sara Murray and others that the claims against them be addressed through alternative dispute resolution". Big says that Murray has denied the allegations but is yet to provide a "substantive explanation".
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Newbury Racecourse reports stronger half-year revenue and a narrowed loss, amid a rise in raceday attendance. The horse racing, entertainment and events firm says its pretax loss in the first half of 2025 narrowed to GBP146,000 from GBP256,000. Revenue increased 4.3% to GBP9.7 million from GBP9.3 million. Declared raceday attendances grew to 53,569 from 43,733 a year earlier. Chair Dominic Burke says: "Trading for the first half of 2025 is marginally ahead of our expectations, despite strong raceday attendances up 22% on 2024. Compared with the first six months of last year, our revenues have grown across the majority of our income streams, but due to the impact of high inflationary costs, the increase in the national living wage and national insurance contributions as well as our continued commitment to prize money, the company has only been able to reduce losses compared to the same period last year."
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By Eric Cunha, Alliance News news editor
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Wh SmithMurray Income TrustBig Technologies