13th Nov 2025 07:59
(Alliance News) - UK GDP barely grows in the third quarter, rising just 0.1%, while Aviva lifts its outlook as the Direct Line integration boosts performance and Burberry narrows its interim loss.
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 0.1% at 9,916.32
GBP: up at USD1.3141 (USD USD1.3134 at previous London equities close)
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ECONOMICS
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The UK economy barely grows in the third quarter of 2025, with GDP rising just 0.1% in the three months to September, slowing from 0.3% in the second quarter and missing the FXStreet-cited consensus of 0.2%. Year-on-year growth comes in at 1.3%, slightly below expectations, while September GDP falls 0.1% following flat output in August and a 0.1% decline in July. The weak finish to the quarter is dragged down by a sharp 2.0% monthly drop in industrial production, driven by a 29% collapse in motor vehicle output after a cyber incident halted Jaguar Land Rover production and restructuring weighed on commercial vehicles. Manufacturing falls 1.7% on the month. Services grow 0.2% in September, while construction inches up 0.1% on the quarter and 1.5% annually.
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UK goods imports fall GBP1.0 billion, or 2.0%, in September 2025, led by declines in shipments from both EU and non-EU markets. Goods exports drop more sharply, down GBP1.7 billion or 5.5%, with exports to the US plunging GBP500 million to their lowest level since January 2022. The UK's total trade deficit in goods and services widens to GBP5.6 billion in the third quarter, as rising imports outpace weakening exports. The goods deficit increases to GBP59.6 billion, partly offset by a services surplus that edges up to GBP54.0 billion.
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BROKER RATINGS
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JPMorgan raises SSE price target to 2,600 (2,425) pence - 'overweight'
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Berenberg raises Helios Towers price target to 215 (175) pence - 'buy'
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COMPANIES - FTSE 100
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Aviva reports "strong" third-quarter momentum and raises its medium-term ambitions as the integration of Direct Line accelerates performance. The insurer says it is on track to meet its 2026 financial targets one year early and now expects 2025 operating profit of around GBP2.2 billion, including GBP150 million from Direct Line. Wealth assets under management rise 7% in the three months to September 30 to GBP224 billion from GBP209 billion in June, with nine-month net flows up 8% year-on-year to GBP8.31 billion. General insurance premiums grow 9% to GBP9.97 billion from GBP9.12 billion, reflecting strong pricing and the consolidation of Direct Line. Aviva upgrades its Direct Line cost-synergy target to GBP225 million by 2028, nearly double the original estimate, and expects more than GBP500 million of capital synergies by the end of 2026. It reaffirms its expectation for mid-single-digit dividend cost growth from 2026 and says the final 2025 dividend will reflect the 10% uplift applied to the interim payout. The group sets new three-year goals, targeting 11% compound annual growth in operating EPS from 2025 to 2028 and an IFRS return on equity above 20% by 2028. CEO Amanda Blanc says: "The outlook for Aviva has never been better. The advantages of our diversified business, 25 million strong customer base, and majority capital-light earnings, mean we expect to deliver more and more for our shareholders and customers."
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Luxury fashion firm Burberry narrows its pretax loss for the 26 weeks ended September 27 to GBP48 million from GBP80 million a year earlier, as its turnaround plan shows early signs of progress. Revenue for the period, however, declines 5.0% to GBP1.03 billion from GBP1.09 billion, while adjusted operating profit improves to GBP19 million from a GBP41 million loss, lifting the margin to 1.9% from negative 3.8%. The British label says retail comparable sales are flat overall but return to growth in the second quarter, marking the first quarterly improvement in two years. CEO Joshua Schulman says Burberry is "beginning to see customers return to the brand they love." He adds: "While it is still early days and there is more to do, we now have proof points that Burberry Forward is the right strategic path to restore brand relevance and value creation. We move forward with confidence that Burberry's best chapters lie ahead."
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Rolls-Royce says "strong performance" across all divisions remains in line with expectations, underpinned by demand for civil engines and defence orders. The group reaffirms full-year 2025 guidance for underlying operating profit between GBP3.1 billion and GBP3.2 billion and free cash flow between GBP3.0 billion and GBP3.1 billion. Chief Executive Officer Tufan Erginbilgic says: "We are continuing to progress our transformation programme, delivering profitable growth, and further strengthening our balance sheet." In Civil Aerospace, large engine flying hours rise 8% year-on-year to 109% of 2019 levels, boosted by orders from IndiGo, Malaysia Airlines, and Avolon. Defence trading "remains robust" with growing demand from the Global Combat Air Programme and a Typhoon aircraft deal between the UK and Turkey. Power Systems posts continued order growth led by demand from data centres and government projects.
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Barratt Redrow says Chief Financial Officer Mike Scott has stepped down with immediate effect by mutual agreement and will remain available for transitional support until January 31, 2026. The board has begun a search for a permanent successor. Micheal Passmore joins immediately as interim deputy CFO, taking responsibility for core finance functions and reporting to Chief Executive Officer David Thomas.
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COMPANIES - FTSE 250
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Budget airline Wizz Air reports pretax profit up 24% for the six months to September 30 to EUR450.6 million from EUR363.0 million a year earlier and revenue rising 9.0% to EUR3.34 billion. Passenger numbers grow to 36.5 million from 33.3 million, with the load factor steady at 92%. Wizz Air says it is accelerating a strategic pivot away from high-cost locations, completing the closure of its Abu Dhabi base and planning to shut its Vienna base by March 2026. New lower-cost bases at Bratislava, Tuzla, Podgorica, Yerevan and Warsaw Modlin will drive future savings, company says. The group has amended its Airbus order book, deferring 88 aircraft to the next decade and converting 36 A321XLR commitments to A321neos. It expects the "most significant changes" to its aircraft delivery profile in around 12 months' time.
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OSB Group says Chief Executive Officer Andy Golding will retire from the board and his role as CEO by December 31, 2026. The board has begun a search process, assisted by a third party. Golding will remain in post throughout the transition.
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OTHER COMPANIES
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WH Ireland Group says it has received an indicative, non-binding all-share proposal from Team PLC, offering 0.195 Team shares for each WH Ireland share. The board is evaluating the possible offer with its advisers and says there is no certainty a firm bid will follow. Under the Takeover Code, Team has until December 10 to announce a firm intention to make an offer or walk away.
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By Eva Castanedo, Alliance News reporter
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