12th Jun 2026 07:58
(Alliance News) - The UK economy contracts 0.1% in April, Flutter Entertainment says it will delist from the London Stock Exchange in August, while Alternative Income REIT's largest shareholder makes a takeover bid.
Here is what you need to know before the London market open on Friday:
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MARKETS
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FTSE 100: called up 0.8% at 10,387.08
GBP: higher at USD1.3402 (USD1.3342 at previous London equities close)
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ECONOMICS
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The UK economy contracted 0.1% in April, in line with forecasts, according to data from the Office for National Statistics. Monthly gross domestic product contracted by 0.1% in April, following growth of 0.3% in March and 0.4% in February. This was in line with the FXStreet-cited consensus. This fall was driven by a 0.2% fall in services, which was partially offset by a 0.1% rise in construction. Production showed no growth. Over the three months to April, real GDP grew by 0.7% compared with the three months to January. This follows 0.6% growth in the period to March and a 0.5% rise in the three months to February. On an annual basis, GDP is estimated to have grown by 1.1% in the three months to April. GDP is estimated to be 1.2% higher in April compared with the same month a year ago. Also on Friday, trade data shows the UK total goods and services trade deficit widened by GBP7.7 billion to GBP9.9 billion in the three months to April, compared with the three months to January. Goods imports increased by 1.5%, or GBP800 million, in April. A rise in imports from the EU was partially offset by a fall in non-EU imports. The value of exports rose by 2.6%, GBP800 million, with increases in both EU and non-EU countries.
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BROKER RATINGS
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Berenberg raises Rolls-Royce to 'buy' (hold) - price target 1,430 (1,270) pence
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Citigroup raises Halma to 'buy' - price target 4,600 pence
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COMPANIES - FTSE 100
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Barclays announces that its UK subsidiary Barclays Bank UK has entered into an agreement to buy GoHenry from Acorns Grow, with completion of the acquisition expected to occur in the fourth quarter of 2026. GoHenry is a money management platform for 6-18-year-olds. Barclays expects the acquisition to reduce its common equity tier 1 ratio by about 5 basis points upon completion, based on its CET1 ratio as of March 31. The transaction will not affect financial guidance or targets for Barclays Group or Barclays UK 2026 or 2028, it adds. Vim Maru, chief executive officer of Barclays UK, says: "GoHenry has played a pioneering role in creating youth-focused financial services, building a market-leading brand for children thanks to its innovative all-in-one app. We're excited to welcome GoHenry to Barclays, where it will turbocharge our offering for households and families. GoHenry supports our vision to offer a deep and seamless banking experience to customers through all of life’s big moments, whether opening a very first account, saving for retirement, and everything in between."
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GSK says momelotinib receives orphan drug designation from the US and EU medicines regulators. The London-based pharmaceuticals firm says the designation is granted by the US Food & Drug Administration and the European Medicines Agency for Vexas syndrome. Vexas syndrome is a clonal myeloid disorder with rheumatologic and haematologic clinical features. It has poor prognosis and a 30% to 40% five-year mortality rate. There are currently no approved treatment options. Orphan drug designations are granted by regulators to support the development and evaluation of new medicines that have the potential to treat or prevent rare disorders.
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COMPANIES - FTSE 250
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Kier secures a GBP140 million extension to its role on the Network Services Alliance. The Manchester, England-based infrastructure services, construction and property investment firm says the framework extension runs until March 2028, with Kier the solar contractor appointed. It means Kier will "continue delivering vital maintenance and improvements across South West Water's network". As part of the extension Kier will deliver repair and maintenance, leakage activity, network reliability schemes, metering and developer services.
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OTHER COMPANIES
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Flutter Entertainment says it plans to delist its shares from the London Stock Exchange on August 3. The New York-based betting company says its shares will continue to be listed on the New York Stock Exchange. Last month, the firm said it was undertaking a review of its LSE listing. Flutter says it has concluded it is in the best interests of shareholders to proceed with the delisting. It considered the level of trading activity on the LSE as well as the additional cost and regulatory and administrative obligations from retaining the listing.
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Alternative Income REIT's largest shareholder, Glenstone REIT, makes an all-cash takeover offer for the firm. Glenstone offers 70.0 pence in cash per share, which is a 0.4% premium to the undisturbed share price of 69.70p. The offer price values Alternative Income REIT at around GBP56.4 million. Glenstone and its concert parties currently hold around 26% of the commercial real estate investor. Glenstone says: "In the light of AIRE's performance and failure to grow since its IPO in 2017, Glenstone is disappointed that a transaction capable of delivering an exit for shareholders has yet to be achieved, during a period in which many other subscale REITs have consolidated with larger REITs or been taken private." Last month, Alternative Income said it is not in a position to "form a view on the merits or otherwise" of a takeover proposal from Glenstone as it did not include an offer price.
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MedPal AI says the UK approval of Novo Nordisk's Wegovy pill is "directly relevant" to its weight management clinic, New Health. The London-based digital health and AI company says the table is not currently available on the NHS, meaning private provision is the only route to access. The firm says it considers US demand for the same product earlier this year to be an "instructive leading indicator" of likely UK demand. US prescriptions for the table surpassed three million in just over five months. The company says it believes its vertically integrated model positions New Health to respond to anticipated patient demand in the UK. "This approval has arrived faster than the market expected, and the timing for New Health could hardly be better... New Health was built for exactly this moment: clinician-led, technology-enabled, and ready to make this treatment available safely and at scale as we take our national campaign live," says MedPal AI Chief Executive Officer Jason Drummond.
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By Michael Hennessey, Alliance News reporter
Comments and questions to [email protected]
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Rolls-RoyceHalmaGlaxosmithklineBarclaysKierFlutter EntertainmentAlternative IncMedpal AI