20th Oct 2026 07:56
(Alliance News) - Bunzl has maintained its annual forecast, Anglo American's third quarter copper production declined, while Plus500 has unveiled a Brazil acquisition.
Here is what you need to know before the London market open:
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MARKETS
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FTSE 100: called down 0.5% at 10,714.69
GBP: higher at USD1.3353 (USD1.3316 at previous London equities close)
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ECONOMICS
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The UK unemployment rate surprisingly declined in the three months to August. The Office for National Statistics said the jobless rate fell to 4.7% in the three month period to August from 4.9% in the three month stretch to July. It had been expected to remain at 4.9%, according to market consensus cited by FXStreet. According to the ONS, payrolled employees in the UK fell by 111,000 on-year in August but edged up by 1,000 on-month. An early estimate for September showed payrolled employees were down by 66,000 annually, but up 13,000 on-month. Over the three-month period, average total earnings growth was 3.7%, cooling from 3.9% in the three months to July, and below the consensus cited by FXStreet of 3.8%. Excluding bonuses, earnings growth picked up to 3.7% in the three months to August from 3.6% in the period to July. Consensus had this wage inflation measure staying at 3.6%, according to FXStreet. Looking at the private sector alone, a figure closely tracked by the Bank of England, total pay growth was 3.1% in the three-month period, easing from 3.3%. When stripping out bonuses, however, it accelerated to 3.0% from 2.9%. On Wednesday, there is a consumer price index report published at 0700 BST. According to consensus cited by FXStreet, the pace of consumer price inflation is expected to have quickened to 3.4% in September from 3.1% in August.
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UK Chancellor John Healey has rejected calls to hike capital gains tax at the budget, amid concerns it could hamper economic growth. Several prominent Labour voices have called in recent months for a rise in the tax, which applies to the profit made from selling off assets like a house or shares. Cabinet ministers Wes Streeting and Louise Haigh both spoke of raising capital gains tax over the summer before Andy Burnham became prime minister. But Healey has ruled out the move after warnings it could end up costing the government money if wealthy people leave the country or defer selling off assets, according to the Times. The biggest revenue raising measure set to be in the budget is an increase in the rate banks pay on their profits, widely reported across the media last week. That is expected to fund cost-of-living support for households and businesses. The chancellor has acknowledged that Britain finds itself in a "tough" position ahead of the budget, and is reported to be downplaying the prospect of major revenue-raising measures in his October 28 statement.
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BROKER RATINGS
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Barclays cuts Vodafone to 'underweight' (equal-weight) - price target 105 (111) pence
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Barclays cuts BT Group price target to 155 (165) pence - 'underweight'
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COMPANIES - FTSE 100
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Distribution firm Bunzl says it had a "good" third quarter performance, and it has backed its annual outlook. Bunzl says revenue in the quarter rose 3.1% on-year at constant currency, with reported growth "broadly" at the same pace also. "Underlying revenue increased by 3.7%, supported by both inflation, reflective of year-on-year product cost increases, and volume growth, which continues to be driven by a strong performance in the North America Distribution business. Acquisitions contributed 0.4% to revenue growth, while fewer trading days in the period impacted revenue by 1.1%," Bunzl adds. The operating margin was in line with expectations, it adds. Bunzl last month lifted its outlook, saying it expects its operating margin to be broadly flat year-on-year. The margin in 2025 was 7.6%. It had previously forecast a slightly lower margin. The top line guidance stayed the same in September, with Bunzl still predicting modest underlying revenue growth. Bunzl says Tuesday: "Following the upgraded guidance provided at the half year, the group continues to perform in line with expectations and reiterates its full year outlook. We continue to expect modest underlying revenue growth, supported by some inflation, alongside a small benefit from acquisitions."
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Miner Anglo American says it is on track to meet annual guidance, after a "resilient" performance in the third quarter. Copper production fell 5% on-year to 175,000 tonnes in the third quarter from 184,000, while in premium iron ore, it fell 4% to 13.8 million tonnes from 14.3 million. The copper output decline was partly down to extreme weather in Chile. "Operational performance was resilient across the business, continuing our momentum from the first half of the year despite extreme winter weather in Chile. We are on track to meet our 2026 guidance, supported by the planned improvement in copper ore grades in the fourth quarter," Chief Executive Officer Duncan Wanblad says. Anglo American's steelmaking coal output rose 53% on-year to 2.9 million tonnes, while in diamonds, production fell 11% to 6.8 million carats. Nickel output rose 3% to 10,400 tonnes. Wanblad says the miner is continuing to make "progress on our portfolio optimisation", with the USD3.88 billion sale of its steelmaking coal offering in Australia to Dhilmar "on track to complete by the first quarter of 2027". It is also continuing to work with the European Commission's regulatory approval process for the sale of its nickel arm. It entered a deal in February 2025 to sell its nickel unit to MMG Singapore Resources for up to USD500 million. Wanblad adds: "At De Beers, we continue to work towards a transaction in a challenging market, having taken decisive action to protect cash and preserve value. Our merger with Teck to form a copper-focused global metals and minerals champion continues to progress and integration planning is now at an advanced stage. We continue to engage constructively with China's anti-trust regulator, with this being the final outstanding regulatory milestone required for completion. Expected completion timing by March 2027 remains unchanged."
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COMPANIES - FTSE 250
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Genuit Group says it has shown "resilience" in a tough backdrop but warns that market conditions have worsened and profit is to fall short of consensus. The provider of water, climate and ventilation systems says revenue in the nine months ended September 30 rose 3.5% on-year to GBP464.5 million, but declined 4.3% on a like-for-like basis. "Challenging market conditions have persisted since our interim results in August, and have worsened in some specific markets most notably our Heating businesses due to the unseasonably warm weather and anticipated interest rate rises," Genuit says. It now expects full year underlying operating profit of around GBP84 million, below the company compiled consensus range of GBP91 million to GBP96 million. Underlying operating profit in 2025 amounted to GBP94.4 million. Chief Executive Officer Joe Vorih says: "Looking ahead, whilst we expect challenging conditions to continue into the new year, Genuit remains well-placed in markets with regulatory and sustainability-related growth drivers. Structural tailwinds including the future homes standard, warm homes plan, social housing policies and the AMP8 water spending cycle will increasingly create further opportunities from next year. In addition, simplification initiatives already announced will generate over GBP4 million of operating profit benefit in 2027."
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Plus500 says it has acquired Guru Corretora de Titulos e Valores Mobiliarios, a Brazilian broker-dealer, growing its presence in Latin America. The trading platform operator says Guru provides it with a "direct local presence in Brazil". "Guru's local expertise will accelerate growth and enable the delivery of new products and services to local customers, and its regulatory framework will allow the Group to build and broaden its local offering to include Brazilian stocks, futures, options and fixed income securities," it adds. "The acquisition also advances Plus500's wider ambition to provide customers across Latin America access to US derivatives markets and a more comprehensive product offering. Powered by its proprietary technology and regulatory expertise, Plus500 will also continue to pursue additional growth avenues across Latin America, both organically and inorganically." Plus500 does not say how much it has acquired Guru for, but it notes the buy will be funded from its existing cash resources.
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OTHER COMPANIES
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Sabre Insurance has backed its annual guidance, but it says premium growth is set to moderate in the final stretch of the year. Gross written premiums in the nine months to September amounted to GBP173.4 million, a rise of 14% on-year from GBP151.7 million, the motor insurance underwriter says. Sabre says it still expects 2026 pretax profit to be "slightly higher" than the GBP51.0 million achieved in 2025. "Year-on-year premium growth is expected for the full-year, although growth is likely to moderate in the final quarter as Sabre's pricing discipline is maintained," it adds. "We continue to anticipate growing premium volumes and earnings into the medium term, with timing influenced by market conditions." CEO Geoff Carter says: "I am very pleased with our performance through the first nine months of 2026. Our continuing focus on "profit as the target and volume as an outcome" underpins our confidence in delivering a strong full-year result, which we expect will be slightly ahead of 2025. We have maintained pricing discipline, strong premium volumes and a robust solvency position despite continuing weak market conditions. We will continue to apply this discipline and focus as we move into 2027 rather than pursue volume for its own sake. Claims inflation continues to run slightly ahead of historical norms at 6% to 7%, but we do not see market premiums year-to-date keeping pace with this level of cost increase. Sabre is fully covering this through our own pricing, whilst delivering good premium volumes."
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James Cropper expects annual earnings ahead of market expectations, as the paper and packaging firm says its first half topped expectations. In a trading statement, it reports a "strong performance" during the half-year ended September 26. Trading was "ahead of the board's expectations, principally reflecting a much stronger than anticipated performance by the group's Paper & Packaging business from a combination of revenue growth and cost management". It now expects annual adjusted earnings before interest, tax, depreciation and amortisation to be around 10% to 20% ahead of current market expectations of GBP9.4 million. That gives a range between GBP10.3 million and GBP11.3 million, James Cropper adds, ahead of the GBP8.9 million achieved in financial 2026.
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By Eric Cunha, Alliance News news editor
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Related Shares:
VodafoneBTBunzlAnglo AmericanGenuit GroupPlus500Sabre Insurance GroupCropper (J)