8th Apr 2026 07:50
(Alliance News) - Shell says the Middle East conflict hit output in its Integrated Gas arm, though it sees "significantly higher" trading and optimisation results. GSK announces a drug approval in China, while Close Brothers believes the cost of the final motor finance redress can be "comfortably absorbed".
Here is what you need to know before the London market open:
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MARKETS
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FTSE 100: called up 3.1% at 10,673.99
GBP: sharply higher at USD1.3436 (USD1.3248 at previous London equities close)
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ECONOMICS
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UK Prime Minister Keir Starmer has welcomed the ceasefire agreed between the US and Iran overnight and said it was an opportunity to secure a long-term solution for shipping through the Strait of Hormuz. The PM is travelling to the Middle East on Wednesday, where he is expected to discuss diplomatic efforts to support and uphold the ceasefire with leaders of allies in the Gulf. "I welcome the ceasefire agreement reached overnight, which will bring a moment of relief to the region and the world. Together with our partners we must do all we can to support and sustain this ceasefire, turn it into a lasting agreement and reopen the Strait of Hormuz," Starmer says.
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The UK housing market has seen a "recent slowdown" amid the conflict in the Middle East, the latest tracker from mortgage lender Halifax shows. UK house prices declined 0.5% on-month in March, after a 0.3% rise in February from January. On-year, growth eased to 0.8% in March from 1.2% in February, according to Halifax. "The recent slowdown in the housing market reflects the wide uncertainty regarding the conflict in the Middle East. Concerns about higher energy prices have pushed up inflation expectations, which in turn led to a rise in mortgage rates, reducing confidence that interest rates will be cut this year and dampening the initial momentum in the market seen at the start of the year," Halifax analyst Amanda Bryden says. "The effect on house prices will largely depend on how long‑lasting these pressures prove to be and the wider implications for the economy and unemployment."
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BROKER RATINGS
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Citigroup raises Relx to 'buy' (neutral)
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COMPANIES - FTSE 100
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Shell reports that output in its first quarter was hurt by the conflict in the Middle East, though refining margins increased. In its customary pre-results teaser, the oil major says it expects to report Integrated Gas output in the range of 880,000 to 920,000 barrels of oil equivalent per day for the first quarter, easing from 948,000 in the fourth quarter of 2025. The outcome "reflects the impact of the Middle East conflict on Qatari volumes". It had initially predicted output between 920,000 and 980,000 boepd. Upstream production between 1.76 and 1.86 million boepd is expected, easing from 1.89 million in the fourth quarter. It had previously predicted Upstream output of 1.70 million to 1.90 million boepd. Shell puts its indicative refining margin in the Chemicals & Products segment at USD17 a barrel for the first quarter, up from USD14. It says "trading & optimisation is expected to be significantly higher" than the fourth quarter.
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GSK's Exdensur drug has been approved in China to treat long-term sufferers of rhinosinusitis. China's National Medical Products Administration approved the treatment in adults as an add-on therapy with intranasal corticosteroids. "This follows the NMPA's recent approval for Exdensur as an add-on maintenance treatment of severe asthma," the drugmaker says. GSK says the drug is the only ultra-long-acting biologic in China for the treatment of chronic rhinosinusitis with nasal polyps, which are growths in the nose or sinuses caused by inflammation.
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COMPANIES - FTSE 250
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Merchant bank Close Brothers says it has reviewed the UK Financial Conduct Authority's final motor finance verdict, putting the cost of the scheme at around GBP320 million. This is "broadly similar" to its existing IAS 37 provision of GBP294 million. The GBP320 million can be "comfortably absorbed by existing capital resources, leaving the group well positioned to continue delivering its strategy". "At this stage, no provision changes have been recognised. The group's existing IAS 37 provision remains under review. The group will continue to closely monitor any further legal, regulatory and industry developments and is considering its next steps," it adds. It says the sum would trim its common equity tier 1 ratio by around 25 basis points to 14.0% on a pro forma basis. "This remains comfortably ahead of the group's medium-term target of 12-13%," it adds.
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Boot maker Dr Martens has named general managers "for all major markets" as the boot maker looks to simply its operating model. Nick Duff is the new UK GM, while Nathalie Schneider takes the same position in France. For the DACH region, which includes Germany, Austria and Switzerland, Kristin Staeren is the new GM, while Giorgio Trevisan will be the Italian GM. "All four are internal promotions and their talent and experience will be instrumental to growing consumers in their markets. We also recently welcomed Yoichi Oikawa as our new Japan GM. Yoichi has extensive experience in consumer engagement, multi-channel and building teams across Japan and APAC, most notably for Champion and Adidas. The USA market continues to be directly run by Paul Zadoff, president of Americas," the firm adds. "These six markets are each significant for our business, accounting for over 80% of global revenues, and the new market structure will ensure each market is run by a dedicated leader and team," Dr Martens says.
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OTHER COMPANIES
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Greatland Resources says it is "closely monitoring potential supply chain and cost impacts" due to the Middle East conflict. The gold producer says the Tefler asset is "not currently impacted by diesel supply disruptions" and that processing plant power at the project is generated onsite by natural gas that is delivered through the Pilbara Pipeline System in Western Australia. Greatland says output in the quarter ended March amounted to 82,723 ounces of gold, taking its financial year-to-date figure to 249,887 ounces. It expects output for the year to June "around, or slightly above" the upper end of its 260,000 to 310,000 ounces guidance range. "Greatland maintains full upside exposure to the gold price, with partial downside price protection provided from gold put options," it adds.
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Intuitive Investments Group says it has agreed "in principle" to a GBP600 million takeover by Main Market listed acquisition company Acceler8 Ventures. The deal will see Acceler8 issue 2.6052 new shares per Intuitive Investments share. "The independent directors of IIG currently intend that they would recommend this possible offer, if made on the terms set out in this announcement, to IIG shareholders," the investor in technology and life science companies says. "The board of IIG has given significant consideration to the ways in which a combination of IIG and AC8 could generate value for their respective shareholders. The boards of both IIG and AC8 believe that there is a strong rationale for undertaking the possible offer."
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By Eric Cunha, Alliance News news editor
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Related Shares:
RelxShellGlaxosmithklineClose BrosDr. MartensGreatland ResourcesIntuitive Investment GroupAcceler8