11th Sep 2026 07:57
(Alliance News) - UK economic growth exceeds expectations in July and the country's trade deficit narrows, while Trainline reiterates its full-year guidance and announces a new GBP100 million share buyback programme.
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 0.2% at 10,633.92
GBP: lower at USD1.3525 (USD1.3532 at previous London equities close)
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ECONOMICS
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The UK economy grows by 0.4% in July, accelerating from 0.3% in June and comfortably beating market expectations for no growth, according to the Office for National Statistics. Growth is broad-based, with services output rising 0.4%, production rebounding 0.2% after two monthly declines, and construction edging 0.1% higher. Manufacturing output increases 0.9%, led by gains in electronics, pharmaceuticals and basic metals, although mining and quarrying contracts 4.4%. Compared with a year earlier, GDP is up 1.6%, while the economy expands 0.4% over the three months to July from the previous three-month period, matching the pace seen through June and marking the eighth consecutive rolling three-month period of growth. Despite the stronger monthly reading, production output falls 0.5% over the three months to July, and construction declines 0.5%, reflecting weakness in new work and the energy sector.
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UK goods imports rise by GBP1.3 billion, or 2.4%, in July, driven by a GBP1.7 billion increase in imports from non-EU countries, partly offset by a GBP400 million fall in imports from the EU, according to the Office for National Statistics. Goods exports increase by GBP900 million, or 2.8%, with exports to the EU rising GBP800 million and those to non-EU countries up GBP100 million. Over the three months to July, the UK's total trade deficit in goods and services narrows by GBP1.1 billion to GBP9.0 billion from the three months to April. The goods trade deficit shrinks by GBP400 million to GBP61.6 billion, while the services trade surplus widens by GBP700 million to GBP52.6 billion.
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South Korea Foreign Minister Cho Hyun and his Iranian counterpart Abbas Araghchi discuss the situation in the Middle East and the Strait of Hormuz in a phone call requested by Tehran, days after Seoul confirms it is considering a possible contribution to securing the vital shipping route. The talks follow an Iranian warning that any South Korean military involvement would have "serious consequences". Seoul says it has dispatched a fact-finding team to assess the situation but has yet to decide whether to deploy forces. Shipping through the Strait of Hormuz remains heavily disrupted amid the US-Iran conflict, while negotiations between Washington and Tehran over the strategic waterway remain stalled.
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BROKER RATINGS
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Jefferies raises Halma to 'hold' (underperform) - price target 3,660 (3,050) pence
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Jefferies raises XP Power to 'buy' (hold) - price target 2,330 (1,870) pence
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COMPANIES - FTSE 250
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Trainline reports a resilient first-half trading performance and reiterates its full-year guidance, as it announces a new GBP100 million share buyback programme. Group net ticket sales are broadly flat year-on-year at GBP3.26 billion, while underlying revenue slips 1% to GBP233 million. The company says UK rail demand remains resilient despite disruption from hot weather, strikes and a regulated fare freeze, and expects first-half adjusted Ebitda margin to be slightly ahead of its full-year target. Trainline reconfirms guidance for financial 2027 net ticket sales of GBP6.20 billion to GBP6.45 billion, underlying revenue of GBP440 million to GBP455 million, and an adjusted Ebitda margin of around 2.9%. It also announces a new GBP100 million share repurchase programme, due to begin after completion of its existing GBP150 million buyback, with the new programme to run over the next 12 months in two tranches. Since launching buybacks in 2023, the company has repurchased and cancelled GBP350 million of shares, representing around 28% of its issued share capital. Trainline will publish half-year results on November 4.
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Berkeley Group Holdings says trading remains in line with the cautious outlook outlined in June, as prolonged conflict in the Middle East and continued UK political uncertainty weigh on housing market activity. The housebuilder says enquiries remain stable, but buyers without an immediate need to move are delaying purchases, and some transactions may be deferred until after the UK budget in late October. Berkeley maintains its four-year GBP1.40 billion pretax profit target, with profits expected to be slightly weighted to the first half of the current financial year, subject to completions. The company returns GBP60 million to shareholders through share buybacks during the first four months of the year, taking total buybacks since October 2025 to GBP171 million, ahead of schedule. It expects half-year net cash of around GBP250 million and reiterates calls for stamp duty reform to support new-build housing demand and help meet the UK government's target of 300,000 homes a year.
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Harbour Energy agrees to buy 53 million of its own shares from BASF at 266 pence each for around USD190 million, alongside BASF's sale of a further 80 million shares to institutional investors at the same price. The purchased shares will be cancelled, with around USD40 million of the consideration counting towards Harbour's ongoing USD250 million share buyback programme. In total, BASF sells around 133 million Harbour shares at 266 pence each, reducing its stake in the oil and gas producer to around 16.4% from 24.3%. The placing to institutional investors is expected to settle on September 15, while BASF's remaining holding will be subject to a 60-day lock-up, subject to certain exceptions.
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OTHER COMPANIES
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C&C Group agrees to acquire Asahi UK's wholesale interests for a nominal consideration, including Nectar Imports Ltd and Asahi UK's direct distribution operations, which will be integrated into its Matthew Clark Bibendum business. The deal also includes a long-term partnership to distribute Asahi brands in the UK and is expected to complete in early October, with management expecting a small positive contribution to earnings in the current financial year. Separately, C&C says trading in the six months to August 31 is in line with expectations. Net revenue falls 3% on a constant currency basis, as 2% growth in branded sales is offset by a 4% decline in distribution revenue. The group expects first-half underlying operating profit of EUR43 million to EUR44 million and remains on track to deliver full-year operating profit in line with market expectations. C&C will host a capital markets day on September 24 and report interim results on October 28.
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Circle8 Group confirms it has submitted a proposal for a possible all-cash takeover of SThree, saying a combination would create a global IT and technology recruitment platform with combined gross revenue approaching USD3 billion. The Nasdaq-listed company says it would finance the proposed transaction entirely in cash, meaning existing Circle8 shareholders would not be diluted. Circle8 says the deal would expand its international scale, strengthen its technology capabilities and accelerate its growth strategy across AI, cybersecurity, cloud and software engineering. It notes there is no certainty an offer will be made or on what terms. Under UK takeover rules, Circle8 must announce a firm intention to bid or walk away by October 7, unless the Takeover Panel extends the deadline.
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Heathrow airport has revealed a fall in passengers during the peak getaway month of August as it flagged "big challenges" across the sector. The west London airport said 7.87 million passengers passed through its four terminals last month, down 2.1% year-on-year, despite cheering a record busy day on August 2, with nearly 272,000 passengers. It comes after the firm revealed recently it was overtaken by Istanbul as Europe's busiest airport in July. But Heathrow said it remained the most "punctual" airport in Europe. "Despite some big challenges across aviation this season, passengers consistently had smooth journeys, with 98% waiting less than five minutes at security, and 98% seeing bags depart as planned, helping retain the title of Europe's most punctual hub," the airport said.
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By Eva Castanedo, Alliance News senior economics reporter
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Related Shares:
HalmaXp PowerBerkeley GroupTrainlineHarbour EnergyC&C GroupSThree