6th Nov 2026 07:54
(Alliance News) - UK house prices fall at their fastest annual pace in three years in October, according to the Lloyds house price index. British Airways owner International Consolidated Airlines Group reports a decline in third-quarter profit despite higher revenue, while Scottish Mortgage Investment Trust delivers strong half-year returns and outperforms its benchmark index.
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 1.1% at 10,662.66
GBP: lower at USD1.3400 (USD1.3473 at previous London equities close)
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ECONOMICS
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The Lloyds house price index shows that UK house prices fall 0.6% month-on-month in October, following a 0.1% decline in September, with the average property price dropping to GBP296,285 from GBP298,167. On an annual basis, prices decline 1.2%, the steepest fall since October 2023, while quarterly prices are down 0.5%. Lloyds mortgages director Andrew Asaam says elevated borrowing costs and renewed inflationary pressures linked partly to the Middle East conflict are weighing on housing demand and household finances. Northern Ireland records the strongest annual price growth at 4.4%, followed by Scotland at 2.8% and Wales at 1.6%. In England, the North West leads gains at 2.2%, while Greater London records the sharpest decline at 3.1%. Looking ahead, Lloyds expects subdued market conditions in the near term but does not anticipate a sustained period of falling prices, with wage growth expected to gradually improve affordability.
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BROKER RATINGS
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UBS cuts Aviva to 'neutral' - price target 800 pence
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Barclays raises Ryanair to 'overweight' (equal weight) - price target 29 (24) EUR
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COMPANIES - FTSE 100
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International Consolidated Airlines Group reports a decline in third-quarter profit despite higher revenue, as the British Airways and Iberia owner says it remains on track to deliver another year of strong operating profit and free cash flow. Operating profit falls to EUR1.73 billion from EUR2.05 billion a year earlier, while post-tax profit declines to EUR1.23 billion from EUR1.40 billion. Revenue rises 4.4% to EUR9.74 billion from EUR9.33 billion. IAG raises its third-quarter dividend by 10% to 5.3 euro cents per share from 4.8 cents. The airline group expects total fuel costs of EUR8.9 billion in 2026 and says it is currently 45% hedged for 2027. Meanwhile, IAG confirms it has started the first EUR500 million tranche of its EUR1.5 billion share buyback programme, which it expects to complete by the end of February.
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Scottish Mortgage Investment Trust reports a net asset value total return of 31.5% for the six months to September 30, outperforming the FTSE All-World Index's 16% return, while its share price total return reaches 33.8%. NAV per share rises 31% to 1,726.6 pence from 1,315.8p at the end of March, while its share price increases 34% to 1,590.5p from 1,191.0p. Shareholders' funds grow to GBP17.69 billion from GBP13.82 billion, while the discount to NAV narrows to 7.9% from 9.5%. Revenue earnings per share rise 45% to 2.25p from 1.55p, and the trust increases its interim dividend by 13% to 1.80p from 1.60p. Scottish Mortgage says strong performance reflects gains across its investment portfolio, including SpaceX and Moderna, while it also increases its investment in artificial intelligence company Anthropic. Following SpaceX's flotation, the trust reduced its holding to 11.1% of total assets as of November 4, down from 15% on September 30. During the half-year, it repurchases 72.9 million shares for approximately GBP1.06 billion and reissues 40.95 million treasury shares, raising GBP602 million. Net gearing falls to 4.3% from 11%.
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COMPANIES - FTSE 250
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Rightmove upgrades its full-year 2026 underlying earnings per share growth guidance to at least 7.0% from at least 5.0%, while narrowing its revenue growth forecast to 6.0% to 7.0% from 6.0% to 8.0%, amid challenging UK housing market conditions. The property portal expects underlying operating profit growth of at least 3.0%, within its previous 3.0% to 5.0% range, while lowering its average revenue per advertiser growth forecast to GBP100 to GBP110 from GBP110 to GBP120, reflecting weaker spending by housebuilders. Looking ahead to 2027, Rightmove expects revenue growth similar to 2026, underlying operating profit growth of 4.0% to 7.0% and underlying earnings per share growth of at least 10%. The company says buyer demand has fallen 10% and agreed sales are down 9.0%, while average house prices are 0.3% lower year-on-year amid elevated mortgage rates. Estate agency partner retention remains strong at 92%, compared with 93% a year earlier. Rightmove also reiterates plans to return more than GBP400 million to shareholders between July 2026 and July 2027, including a further GBP80 million in share buybacks by the end of this year. Chief Executive Johan Svanstrom says the company continues to deliver revenue and profit growth despite market headwinds, supported by product innovation, artificial intelligence tools and cost discipline.
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Chesnara agrees to acquire MetLife UK Ltd, the closed-book UK life insurance business of MetLife Inc, in a deal expected to generate approximately GBP90 million in lifetime cash flows, around half of which are expected within the first five years following completion. The life and pensions consolidator says the acquisition will add approximately 18,000 customer policies and GBP1.7 billion in assets under administration to its UK operations. The transaction is expected to increase Chesnara's own funds and contractual service margin by approximately GBP45 million, while having a broadly neutral impact on its solvency II ratio. Chesnara says the purchase consideration is not expected to be material, although it remains subject to adjustments at completion. The acquisition, its fourth announced in two years, is expected to complete in the first half of 2027, subject to regulatory approval. The deal excludes MetLife's ongoing UK protection business. Chief Executive Steve Murray says the acquisition adds scale and diversification to Chesnara's UK operations, while the company continues to see a healthy pipeline of further acquisition opportunities.
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Syncona reports positive interim clinical data from its portfolio company Resolution Therapeutics Ltd's phase I/II Emerald trial of RTX001, an experimental cell therapy for patients with end-stage liver disease. The life sciences investor says six-month interim results show encouraging preliminary findings, including numerical improvements across selected measures of treatment effectiveness, reduced biomarkers of inflammation and fibrosis development, and a favourable tolerability profile. The findings provide an early indication of potential therapeutic activity, supporting further investigation of the treatment. Resolution plans to advance RTX001 into a pivotal study, with a regulatory meeting scheduled with the US Food & Drug Administration in December 2026. Syncona says the results represent a key value inflection point for its investment in Resolution, potentially supporting future valuation growth. Syncona holds an 82.8% stake in Resolution, valued at GBP89.0 million as of June 30. Edward Hodgkin, managing partner of Syncona Investment Management, says the findings reinforce the company's investment thesis and support the potential of the therapy for patients with limited treatment options.
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OTHER COMPANIES
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Wheaton Precious Metals Corp reports third-quarter net earnings of USD410.2 million, up 12% from USD367.2 million a year earlier, as revenue jumps 62% to USD771.7 million from USD476.3 million. The precious metals streaming company says silver production rises 37% to 8.2 million ounces from 6.0 million ounces, while gold production falls 8.2% to 91,753 ounces from 99,943 ounces. Gold accounts for 51% of quarterly revenue, followed by silver at 46%, with the remainder coming from palladium and cobalt. Wheaton declares a fourth quarterly dividend of USD0.195 per share, up 18% year-on-year. Looking ahead, the company maintains its 2026 production guidance of 400,000 to 430,000 ounces of gold and 27 million to 29 million ounces of silver. Chief Executive Haytham Hodaly says Wheaton remains well positioned to meet its annual production targets, supported by progress at Montage Gold's Kone project and Hudbay's Copper World development, which are expected to contribute to future production growth.
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Record reports a 61% rise in half-year operating profit to GBP7.3 million from GBP4.5 million a year earlier, as revenue increases 19% to GBP22.8 million from GBP19.2 million. The specialist asset manager says profit after tax rises 61% to GBP5.3 million from GBP3.3 million, while profit attributable to shareholders increases 49% to GBP5.6 million from GBP3.7 million. Basic earnings per share rise to 2.84 pence from 1.93p. Management fees increase 6.0% to GBP18.6 million from GBP17.5 million, while performance fees jump to GBP2.2 million from GBP800,000. Assets under management reach a record USD130.3 billion from USD114.6 billion at the end of March, supported by net inflows of USD12.7 billion. Operating margin improves to 32.3% from 23.4%, reflecting higher-margin revenue growth and cost discipline. Record cuts its interim dividend to 1.00p per share from 2.15p, alongside a new dividend policy targeting a payout of 40% to 60% of annual after-tax profit. Chief Executive Jan Witte says the group remains well positioned to meet its full-year expectations, supported by continued demand across its three product pillars.
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By Eva Castanedo, Alliance News senior economics reporter
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Related Shares:
RightmoveInternational AirlinesScottish MortgageChesnaraSynconaWheaton Precious Metals Corp.RecordAvivaRYA.L