31st Mar 2026 07:59
(Alliance News) - The FTSE 100 was called lower on Tuesday, after the ONS revised up UK GDP growth for 2025 while leaving fourth quarter growth unchanged; meanwhile Nationwide reported that UK annual house price growth sped up in March. Also, Unilever confirmed press reports of a planned combination for its Foods business.
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 15.6 points, 0.2% at 10,112.36
GBP: higher at USD1.3195 (USD1.3191 at previous London equities close)
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BROKER RATINGS
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Deutsche Bank Research raises Diageo to 'buy' (hold) - price target 1,650 (1,790) pence
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Barclays cuts JD Wetherspoon to 'underweight' (overweight) - price target 540 (825) pence
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Jefferies cuts everplay price target to 380 (440) pence - 'buy'
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ECONOMICS
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UK annual house price growth accelerated to 2.2% in March, from 1.0% in February, Nationwide reports. Monthly price growth, seasonally adjusted, sped up to 0.9% from 0.3%, and beating FXStreet-cited consensus for 0.6% growth. The seasonally adjusted monthly house price index rises to 552.6 from 547.7. The average house price rises to GBP277,186 from GBP273,176.
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The UK grew as expected in the fourth quarter, the Office for National Statistics reports. UK real gross domestic product is estimated to have increased by an unrevised 0.1% quarter-on-quarter in the fourth quarter of 2025, unchanged from 0.1% in the third quarter and in line with FXStreet-cited consensus. On an annual basis, GDP rose 1%, also in line with consensus and unchanged from the prior quarter. GDP is estimated to have increased by 1.4% annually in 2025, revised up from 1.3%, the ONS says, following unrevised growth of 1.1% in 2024. Total business investment for the fourth quarter fell 2.5% on-quarter, however, better than consensus expectations for a larger 2.7% drop. The prior quarter showed growth of 1.1%, revised from a 2.7% decline. Investment rose 2% annually, as expected, but growth slowed from 3.5%, revised upwards from 2%, in the previous quarter. Meanwhile, the ONS announces that the underlying UK current account deficit excluding precious metals narrowed to GBP8.4 billion, or 1.1% of gross domestic product, in the fourth quarter of 2025, from GBP9.0 billion in the third quarter. The UK current account deficit, including trade in precious metals, widened by GBP7.7 billion to GBP18.4 billion, or 2.4% of GDP, in the fourth quarter. It was, however, lower than the consensus of a sharper increase to GBP23.4 billion.
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COMPANIES - FTSE 100
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Unilever, responding to media reports, confirms that it is in advanced discussions with Maryland, US-based food ingredients and flavours company McCormick & Co "regarding a potential transaction", involving a merger of Unilever Foods and McCormick. Says this would come with an upfront cash component of approximately USUSD15.7 billion but the majority of the consideration would come in McCormick equity. Expects to hold 65% of the combined company. The Financial Times reported earlier on Tuesday that Unilever was close to confirming combination plans, its sources indicating that the combined company would be worth around USD60 billion.
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Lloyds Banking notes the Financial Conduct Authority's announcement on Monday evening on the final rules for its industry-wide redress scheme for motor finance. "The details of the final scheme differ from the scheme as laid out in October 2025 and require careful analysis," Lloyds says. "Accordingly, the group is assessing the implications and impact of the final rules." The FCA said it estimates that around 12.1 million agreements will be eligible for redress, down from 14.2 million proposed at the consultation stage, after tightening eligibility criteria. The scheme is expected to see firms pay out around GBP7.5 billion in compensation, with total costs including administration estimated at GBP9.1 billion. This is lower than earlier projections of up to GBP11 billion. Lloyds, one of several lenders affected, previously raised its provisions for exposure to the scheme to GBP2.0 billion from GBP1.2 billion. Also, Bank of Ireland notes the FCA's announcement and says it "is committed to achieving a fair outcome for customers, ensuring appropriate redress is provided where loss has occurred." BoI says its cumulative provision regarding the UK motor finance commissions is EUR429 million, and that it remains highly capital generative.
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COMPANIES - FTSE 250
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3i Infrastructure issues a trading update for the six months ended March 30. Says it is on track to meet its full-year return target, "driven by the exceptional sale outcome achieved for TCR, and ongoing earnings growth across the portfolio as a whole in the last 12 months." 3i agreed to sell its 71% stake in TCR in March for expected net proceeds of EUR1.14 billion once the deal completes in the third quarter, a roughly 50% uplift to the pre-sale valuation at March 31, 2025. Says it expects its portfolio companies to remain resilient to the effects of the war in the Middle East, noting that the portfolio is positively correlated with inflation, and that the vast majority of the companies' debt is fixed-rate or hedged, with little debt maturing in the next three years.
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Ashmore Group announces a strategic partnership with life insurance group Japan Post Insurance Co Ltd, which it says intends to invest an initial USD1 billion into a range of Ashmore-managed emerging market funds. "Ashmore will be Japan Post Insurance's strategic partner in emerging market asset classes, providing investment strategies that meet JPI's investment and risk objectives, with the potential for longer-term collaboration and additional capital allocations over time," Ashmore says. "Under the terms of the partnership, it is envisaged that Japan Post Insurance will acquire up to a 2.9% equity stake in Ashmore through open-market purchases."
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OTHER COMPANIES
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BRCK Group says that on February 17 it received an unsolicited, indicative and non-binding takeover approach by Atlas Holdings LLC, followed by a non-binding indicative proposal to buy the company for 65 pence per share. Says the board unanimously concluded that this proposal fundamentally undervalued BRCK. Says it has agreed to provide some limited further information to Atlas to establish whether it is prepared to improve its indicative offer price, but that entry into a detailed due diligence process would be subject to Atlas putting forward a proposal on terms that BRCK would be minded to recommend to shareholders. Says it remains fully confident in its prospects as an independent listed company and the continued execution of its strategy under its leadership team. Atlas has until April 28 to announce a firm intention to make an offer for BRCK, or to announce that it does not intend to make an offer.
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By Emma Curzon, Alliance News reporter
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UnileverLloydsBank Of IrelandAshmore Group3i InfrastructureBrickability GroupDiageoWetherspoon (J.D)Everplay Group