28th May 2025 07:55
(Alliance News) - London's FTSE 100 is set to open higher on Wednesday, as new data shows UK homebuyers are typically agreeing sales more than GBP15,000 below the asking price, and Thames Water is hit with the biggest ever fine from Ofwat totalling nearly GBP123 million.
Meanwhile, tensions heighten between US President Donald Trump and his Russian counterpart, Vladimir Putin, as Trump warns the Russian president he is "playing with fire" following Russia's latest attack on Ukraine.
Gold was quoted higher early on Wednesday morning, restored to the same level as Friday morning, while the dollar was also quoted up following a US market rally on Tuesday.
In early corporate news, Rentokil Initial agrees to sell its Workwear business in France and Pets at Home reports a double-digit rise in profit.
Here is what you need to know at the London market open:
----------
MARKETS
----------
FTSE 100: called up 0.1% at 8,782.15
----------
Hang Seng: down 0.6% at 23,233.24
Nikkei 225: closed up 0.1% at 37,754.79
S&P/ASX 200: closed down 0.1% at 8,401.00
----------
DJIA: closed up 740.58 points, or 1.8%, at 42,343.65
S&P 500: closed up 118.72 points, or 2.1%, at 5,921.54
Nasdaq Composite: closed up 461.96 points, or 2.5%, at 19,199.16
----------
US 10-year Treasury yield: 4.47% (4.46%)
US 30-year Treasury yield: 4.98% (4.96%)
----------
EUR: down at USD1.1315 (USD1.1337)
GBP: down at USD1.3483 (USD1.3515)
USD: up at JPY144.26 (JPY144.22)
Gold: up at USD3,305.57 per ounce (USD3,295.13)
(Brent): up at USD63.66 a barrel (USD63.14)
(changes since previous London equities close)
----------
ECONOMICS
----------
Wednesday's key economic events still to come:
08:55 BST Germany unemployment
13:55 BST US Redbook index
15:00 BST US Richmond Fed manufacturing index
19:00 BSTUS FOMC minutes
----------
House sellers in the UK are agreeing sales at GBP16,000 below the asking price typically, according to a property website. Zoopla, which said the mean average asking price is GBP367,000, added that it is "important that sellers are realistic with their expectations on price," as home buyers return to the market after the Easter holidays. Buyers have more choice, with 13% more homes on the market than a year ago, according to Zoopla's figures. Some lenders have recently changed their mortgage affordability calculations, enabling some people to borrow higher amounts, and the website said this is supporting the growth in sales. The website also said that, within England, the North West is the hottest housing market for price rises. Higher home values and rents in bigger cities such as Manchester and Liverpool are pushing housing demand into nearby areas, boosting house prices, Zoopla said.
----------
German Foreign Minister Johann Wadephul, on the eve of his first official visit to Washington, where he will meet his US counterpart Marco Rubio, has called for closer cooperation with the US over Russia's ongoing attacks on Ukraine. "To finally bring Putin to the negotiating table, to ensure Russia enters into serious negotiations, we must maintain the pressure," Wadephul said before departing on Tuesday for his inaugural visit to the US. "We Europeans will continue to tighten the sanctions, and the US Congress is also ready for more sanctions," he said. Wadephul is scheduled to meet with Rubio on Wednesday to discuss a joint approach to current international crises.
----------
US Secretary of State Marco Rubio on Tuesday ordered a suspension of student visa processing in the latest swipe at foreign students in the country. The White House is cracking down on foreign students at US universities, revoking visas and deporting those involved in protests against the war in Gaza, accusing them of supporting Palestinian militant group Hamas. Rubio earlier rescinded hundreds of visas and President Donald Trump's administration moved to bar Harvard University from admitting non-Americans. A cable signed by Rubio and seen by AFP orders embassies and consulates not to allow "any additional student or exchange visa... appointment capacity until further guidance is issued." The government also plans to ramp up vetting of the social media profiles of international applicants to US universities, the cable said. The move came as Harvard students protested after the government said it intends to cancel all remaining financial contracts with the elite school, Trump's latest attempt to force the institution to submit to unprecedented oversight.
----------
BROKER RATING CHANGES
----------
RBC cuts National Grid to 'sector perform' (outperform)
----------
Berenberg cuts Intercontinental Hotels price target to 9,200 (9,700) pence - 'hold'
----------
Jefferies raises Chemring price target to 530 (500) pence - 'buy'
----------
COMPANIES - FTSE 100
----------
Kingfisher reports total sales of GBP3.31 billion in the first quarter that ended April 30, rising 1.6% from the year before and up 2.2% on a constant currency basis. This was particularly driven by a 6.1% growth in sales in the UK & Ireland, boosted by "favourable weather" and offset by a 4.9% decline in sales in France. Poland recorded a 0.4% slip in sales for the three-month period, with "current geopolitical factors adversely impacting the Polish consumer", while other international regions collectively returned a 2.5% sales growth. "It is still early in the year and consumer sentiment remains mixed across our markets. We are focused on executing our strategic growth priorities, maintaining discipline on margin and costs, and driving shareholder returns," says Chief Executive Officer Thierry Garnier. Kingfisher maintains its full-year guidance for adjusted pretax profit between around GBP480 million and GBP540 million, against GBP528 million the year before.
----------
Rentokil Initial agrees to sell its Workwear business in France to HIG Capital at a gross enterprise value of around EUR410 million, including an earn-out mechanism of up to EUR30 million linked to the unit's 2026 performance. France Workwear comprises Rentokil Initial's workwear, flat linen and clean room business in France. Total net cash proceeds are anticipated at around EUR370 million, with the sale expected to complete in the fourth quarter of 2025. The disposal will position Rentokil more clearly as a streamlined Pest and Hygiene & Wellbeing business, "enabling the group to effectively concentrate resources to better capitalise on the large, attractive long-term growth markets within these core areas", Rentokil says. Around 80% of revenue for the company will now be derived from its Pest unit and around 20% from Hygiene & Wellbeing. Proceeds will be used for general corporate purposes, including investing for growth through bolt-on mergers and acquisitions.
----------
COMPANIES - FTSE 250
----------
Pets At Home reports a pretax profit of GBP120.6 million in the financial year that ended March 27, rising 14% from GBP105.7 million the year before. Revenue grows 0.1% to GBP1.482 billion from GBP1.480 billion, while selling and distribution expenses reduce by 2.7% to GBP451.2 million from GBP463.6 million. The pet care firm declares a total dividend of 13.0 pence per share, up 1.6% on-year from 12.8p. "In FY25, we also saw another outstanding year of growth in our vets business, fuelled by the commitment and expertise of our partners, supported by our best-in-class scale services, platform benefits and industry knowhow. Our practices significantly outperformed a more subdued industry backdrop and delivered this progress despite the ongoing uncertainty of the CMA investigation - further demonstration of the power of our unique joint venture model," says Chief Executive Officer Lyssa McGowan. Looking ahead, Pets At Home expects Retail market growth of around 2% for financial 2026, and says the first six weeks of the year has begun "as expected". Underlying pretax profit in Retail is expected to decline during the year, while the first anticipates "further progress" in underlying pretax profit for its Vet arm. Pets At Home guides for group underlying pretax profit between GBP115 million and GBP125 million, against GBP132.0 million the year before.
----------
Softcat lifts its full-year operating profit guidance, as the firm reports that it delivered "strong" double-digit growth on-year in gross profit and operating profit during its third quarter that ended April 30. "Growth remains broad-based across technology areas and customer segments, supported by the conversion of some larger solutions projects in the period," the company says. Softcat now expects low-teens growth in operating profit for the year, upgraded from its prior guidance for low double-digit growth.
----------
EP Corporate says it has now received 90.15% acceptances for its proposed takeover of Royal Mail owner International Distribution Services and, as a result, the firm will now move to compulsory acquisition of remaining IDS shares. EP Corporate expects to cancel the trading of IDS shares by June 2. Under the terms of the offer, shareholders will receive 370 pence for each IDS share.
----------
OTHER COMPANIES
----------
Inspired announces its largest shareholder, Gresham House Asset Management, has indicated that it intends to accept an offer for takeover, should a firm offer be made by Palo Alto, California-based private equity firm HGGC. Gresham House holds a 29.73% stake in Inspired. Inspired on Tuesday said it was inclined to accept the offer of 81 pence in cash for each Inspired share, which would value the entire company at just under GBP130 million. This beat a rejected bid by Regent Acquisitions for 68.50p per share, which Inspired had called "wholly inadequate". Inspired notes that there can still be no certainty of a firm offer being made by HGCC.
----------
Thames Water has been fined GBP122.7 million after two investigations into wastewater and dividend payments, in the largest penalty Ofwat has ever issued, the regulator said. The Reading, England-based water company will pay GBP104.5 million for breaches of rules relating to its wastewater operations, after Ofwat said it "failed to protect the environment". Ofwat Chief Executive David Black said: "Our investigation has uncovered a series of failures by the company to build, maintain and operate adequate infrastructure to meet its obligations. The company also failed to come up with an acceptable redress package that would have benefited the environment, so we have imposed a significant financial penalty." Thames Water will pay an extra GBP18.2 million for breaking rules related to dividend payments, the first ever dividend-related fine, Ofwat said. The regulator said the money will be paid by the utility company and its investors, not by customers. The wastewater fine was first proposed last year and confirmed on Wednesday.
----------
By Emily Parsons, Alliance News reporter
Comments and questions to [email protected]
Copyright 2025 Alliance News Ltd. All Rights Reserved.
Related Shares:
National GridInterContinental HotelsChemringKingfisherRentokil InitialPets at homeSoftcatInternational Distributions ServicesInspired