21st Oct 2026 07:53
(Alliance News) - Fresnillo says it has maintained its annual production forecast, GSK has landed a US drug approval and Quilter reports its net inflows for the year have already topped 2025's level. Meanwhile, drilling at a North Sea gas field co-owned by Shell has been approved.
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 just 0.9 of a point at 10,732.10
GBP: flat at USD1.3375 (USD1.3376 at previous London equities close)
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ECONOMICS
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UK consumer price inflation was hotter than expected, according to numbers on Wednesday. The Office for National Statistics said the annual consumer price inflation rate accelerated to 3.5% in September, from 3.1% in August. The September reading topped the FXStreet-cited consensus of 3.4%.
It was the quickest pace of yearly consumer price growth since October 2025. On a monthly basis, consumer prices rose 0.4% in September, having climbed 0.5% in August from July. September's reading was above the FXStreet-cited forecast of a 0.3% rise. The ONS said the largest contributions to the annual inflation pick-up came from transport, particularly motor fuels. "Restaurants and hotels made the largest, partially offsetting, downward contribution," the ONS said. The rate of annual producer input price inflation accelerated to 8.3% in September from 6.7% in August. "Crude oil provided the largest contribution to the rise in the annual inflation rate for input prices in September 2026, with prices increasing by 14% on the month," the ONS said. It was the loftiest rate of producer price inflation since May. The next Bank of England decision is on November 5.
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Public sector borrowing was higher than forecast, giving Chancellor John Healey some food for thought ahead of next week's budget. Public sector borrowing rose to GBP24.52 billion in September, from GBP17.25 billion in August. August's figure was downwardly revised from around GBP18.3 billion.
Borrowing for September was above the prior year's GBP22.76 billion. "Spending, including higher debt interest costs, increased more than government income, partly reflecting the impacts of inflation," the ONS said. "Borrowing in the financial year to September 2026 remained below the same period last year, although it was higher than the Office for Budget Responsibility's forecast." Borrowing was GBP97.8 billion in the financial year up to September, down 4.3% on-year, but GBP6.0 billion above an Office for Budget Responsibility forecast. The UK financial year runs from April 1 to March 31. The budget, the first under the new Andy Burnham government, is outlined by Chancellor Healey next week Wednesday.
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The UK government has approved plans to begin drilling in the Jackdaw gas field in the North Sea.
The decision by the North Sea Transition Authority ends months of speculation about the future of the project, which owner Adura said could deliver around 6% of UK North Sea gas production. Adura is co-owned by Shell and Equinor. Energy Secretary Miatta Fahnbulleh, who gave approval for the NSTA to grant consent for drilling, said the move will "support the country's energy security with homegrown gas this winter". Prime Minister Andy Burnham added the decision will "protect hundreds of jobs and help keep millions of homes warm", but stressed it would not hinder the government's targets on renewable energy. The drilling project is one of two – alongside the Rosebank oil field off Shetland – which were approved by the previous Conservative government. But this was overturned by the Scottish courts after a challenge from environmental campaigners. This came after a UK Supreme Court ruling that developers had to account for the climate impact caused by burning fossil fuels in their planning applications. A decision on Rosebank, the largest untapped oil field in the North Sea, is being made separately, with Fahnbulleh saying it will take "a bit longer". Adura owns 80% of Rosebank, with Ithaca Energy holding the remainder.
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BROKER RATINGS
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Barclays cuts Partners Group Private Equity target to 690 (1,060) pence - 'underweight'
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COMPANIES - FTSE 100
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Fresnillo says gold and silver output was in line with expectations in the third quarter, and it is on track to meet guidance. Quarterly attributable silver output was down 12% on-year to 10.3 million ounces, falling 5.5% on-quarter. Gold production was down 11% on-year to 135,053 ounces, sliding 13% on-quarter. "Our core assets continue to deliver reliably, highlighted by strong gold performance at Fresnillo, while lower production volumes overall reflect lower ore grades at Juanicipio, Saucito, and San Julian, along with reduced volume of ore processed at Herradura and Cienega," Chief Executive Officer Octavio Alvidrez says. The company mines in Mexico. Looking ahead, it still expects attributable silver production between 42.0 million and 46.5 million ounces, with gold production between 500,000 and 550,000 ounces.
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GSK says its Hibsago drug has received the US green light to treat chronic hepatitis B. The US Food & Drug Administration has approved the drug, in tandem with an antiviral, to treat some adults suffering from the virus infection. "Despite current therapies, many people living with chronic hepatitis B remain on treatment indefinitely and continue to face the risk of serious liver complications. For the first time, with Hibsago, US patients have the potential to achieve functional cure after a six-month treatment course, with the added convenience of the option of self-administration after the first dose," Chief Scientific Officer Tony Wood says. Separately, Hutchmed China says it has closed a licensing agreement with GSK for a KRAS-EGFR cancer therapy outside China. Hutchmed expects to receive an upfront payment of USD110 million shortly and is eligible for up to USD1.19 billion in milestone payments under the deal.
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COMPANIES - FTSE 250
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Quilter says its assets under management and administration have increased, and it notes net inflows for the year so far have already surpassed what it achieved in the whole of 2025. At the end of the third quarter of the year, assets under management and administration totalled GBP160.5 billion, a rise of 19% on 12 months prior. Reported net inflows in the third quarter amounted to GBP2.74 billion, climbing on-year from GBP2.12 billion. Core net inflows alone totalled GBP2.89 billion, up from GBP2.23 billion a year prior. "In the third quarter we maintained our strong momentum across the business. We have delivered core net flows of approximately GBP3 billion in each quarter of 2026, taking year-to-date core net flows to GBP8.9 billion by the end of the third quarter, just short of the record GBP9.1 billion delivered in the whole of 2025. We surpassed that milestone early in the fourth quarter," Chief Executive Officer Steven Levin says. "High net worth delivered another quarter of consistent positive flows, reflecting improving momentum and the strength of our client offering."
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Domino's Pizza Group says it is "confident of achieving our earnings expectations" as third quarter sales rose. The master franchise holder in the UK and Ireland for Domino's Pizza Inc says sales in the third quarter of 2026 rose 2.3% year-on-year. Like-for-like growth eased from 5.2% in the second quarter. Orders were 1.4% higher on-year like-for-like, the firm says, easing from a 2.2% stride in the second quarter. Third quarter total system sales were 3.5% higher. "Following the positive benefits of the World Cup at the start of the period, we continued to grow in both August and September," it says. "All major cost categories are fixed for FY26 and into FY27, providing good visibility over the cost base. Combined with our strategic growth initiatives, this gives us confidence in delivering earnings growth in FY27 and beyond. Consequently, the board remains confident of achieving our earnings expectations for the full year, in line with market expectations."
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OTHER COMPANIES
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Ashtead Technology Holdings has agreed to a GBP505 million takeover by private equity firm Ember Infrastructure Management LP. Ember will pay 615 pence in cash per share, an 81% premium to the subsea technology provider's share price on September 22, the day prior to its receiving an M&A approach. Ashtead Technology, which serves the offshore energy sector, confirmed in September that it received an unsolicited and non-binding indicative proposal from Ember. It noted that a 615p per share approach followed three previous tilts, "the first two of which were unequivocally" rejected. Chair Bill Shannon says Wednesday: "Throughout this process, the board's priority has been to ensure that the high quality of the Ashtead Technology group and its prospects are fairly recognised in the terms of Ember's cash offer. The board believes that the Acquisition recognises the strength of the Ashtead Technology group and provides shareholders with a compelling opportunity to realise significant value today when compared with the risk-adjusted return that would be expected to be delivered through the execution of Ashtead Technology's standalone strategy. Accordingly, the Ashtead Technology board intends to recommend that shareholders vote in favour of the acquisition."
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By Eric Cunha, Alliance News news editor
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