22nd Jan 2026 07:50
(Alliance News) - London stocks were called higher on Thursday morning, after US President Donald Trump said he had reached a framework for a deal over Greenland following a meeting with Nato Secretary General Mark Rutte.
He added that his threatened tariffs against European countries that were resisting his quest to acquire Greenland were now off the table.
Also, the US Supreme Court appeared sceptical of Trump's effort to fire Federal Reserve Governor Lisa Cook. Justice Brett Kavanaugh, a Trump appointee, said setting a "very low bar for cause" could "weaken, if not shatter, the independence of the Federal Reserve."
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 71.6 points, 0.7%, at 10,209.69
GBP: lower at USD1.3434 (USD1.3437 at previous London equities close)
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ECONOMICS
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UK public sector net borrowing rose in December, the Office for National Statistics reported. Net borrowing, the difference between total public sector spending and income, was GBP11.58 billion in December, below the FXStreet-cited market consensus estimate of GBP13.5 billion. The December total was above November's net borrowing of GBP10.94 billion, which was revised downwards from GBP11.65 billion. It was down 38% from December 2024. Borrowing in the financial year to December was GBP140.4 billion, around GBP300 million or 0.2% less than in the same nine months in 2024. Also, the total current budget deficit in the financial year to December to GBP94.9 billion, GBP1.6 billion or 1.6% less than in the same nine-month period of 2024.
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UK consumer confidence showed tentative signs of improvement at the start of the year, though expectations for spending weakened sharply after the festive period, according to a new survey from the British Retail Consortium. The BRC's January consumer sentiment monitor, compiled with polling firm Opinium, found that expectations for the state of the UK economy over the next three months improved to a net score of negative 32 in January from negative 38 in December. Expectations for consumers' personal financial situation also edged higher, rising to negative 8 from negative 10. However, confidence around spending cooled markedly as households moved past Christmas. Expectations for personal retail spending over the next three months fell to negative 6 in January from positive 6 in December, while expectations for overall personal spending dropped to positive 5 from positive 17.
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BROKER RATINGS
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RBC cuts Admiral to 'sector perform' (outperform) - price target 3,100 (3,600) pence
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JPMorgan reinitiates Big Yellow with 'overweight' - price target 1,250 pence
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Berenberg starts Concurrent Technologies with 'buy' - price target 275 pence
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COMPANIES - FTSE 100
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Associated British Foods issues a trading update for the 16 weeks to January 3. Revenue is "in line" with the previous year's at actual currency, totalling GBP6.76 billion, but decreases 0.9% at constant currency. Like for like sales fall to 2.7%. Retail revenue increases 4.2% or 1.5% at CER to GBP3.50 billion, while grocery revenue is flat or up 0.7% at CER to GBP1.39 billion. Primark total sales increase 1% on-year, but decrease 2.7% on a LfL basis. The Primark owner expects to report results for the 24 weeks to February 28 on April 21.
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COMPANIES - FTSE 250
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AJ Bell updates on trading for its first quarter, which ended on December 31. Customer numbers increase 20% on-year to 673,000, with total advised customers rising 6% to 185,000 and D2C customers rise 26% to 488,000. AJ Bell reports "record platform assets under administration" which rise 21% on-year to GBP108.0 billion. Platform gross inflows also reach a record, of GBP4.6 billion, up from GBP3.6 billion, while net inflows rise to GBP1.5 billion from GBP1.4 billion. For AJ Bell Investments, AUM increases 32% to GBP9.5 billion. "We have started the year with strong momentum," says Chief Executive Michael Summersgill. "The platform market presents significant long-term growth opportunities, and our dual-channel model, supported by continued business investment, ensures we are well-placed to deliver on this opportunity."
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OTHER COMPANIES
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South32 says it put in a "consistent" operating performance in the first half of its financial year, benefitting from "strengthening" market conditions. The Perth-based diversified mining group says Worsley alumina production is up 2.3% on-year to 1.89 million tonnes for the six months to December 31. Brazil alumina production is 3.9% higher at 709,000 tonnes. Hillside aluminium production is unchanged at 362,000 tonnes. Australian manganese ore production multiplied to 1.7 million wet metric tonnes for the first half from 639,000 tonnes. South African manganese ore production decreases 2.3% to 1.1 million wet metric tonnes. Looking ahead, South32 maintains its production guidance for 2026 financial year for all operated assets. But it notes that annual guidance for non-operated Brazil Aluminium is under review as it awaits the operator's revised ramp-up profile.
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By Emma Curzon, Alliance News reporter
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