1st May 2026 07:57
(Alliance News) - UK house price growth accelerated in April, while NatWest reported stronger first-quarter profit and income, and Santander completed its acquisition of TSB to expand its position in the domestic market.
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 0.3% at 10,351.12
GBP: higher at USD1.3597 (USD1.3588 at previous London equities close)
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ECONOMICS
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UK annual house price growth accelerates to 3.0% in April from 2.2% in March, according to Nationwide Building Society, beating the FXStreet-cited consensus for an unchanged reading. On a monthly basis, prices rise 0.4%, slowing from 0.9% in March but defying expectations for a 0.3% decline. The average UK house price increases to GBP278,880 from GBP277,186. Nationwide says the housing market continues to regain momentum after a slowdown at the start of the year, despite economic uncertainty linked to the Middle East conflict. Chief Economist Robert Gardner notes that higher energy prices have not derailed the recovery, although broader housing indicators, including new buyer enquiries reported by Royal Institution of Chartered Surveyors, have weakened.
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BROKER RATINGS
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JPMorgan raises Whitbread price target to 2,600 (2,500) pence - 'neutral'
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JPMorgan raises Glencore price target to 500 (460) pence - 'neutral'
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Deutsche Bank Research raises London Stock Exchange Group price target to 11,900 (11,400) pence - 'buy'
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COMPANIES - FTSE 100
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NatWest reports first-quarter pretax operating profit rises to GBP2.03 billion from GBP1.81 billion a year prior, as total income improves to GBP4.36 billion from GBP3.98 billion. Net interest income alone rises to GBP3.39 billion from GBP3.03 billion, supported by deposit margin expansion and lending balance growth. The bank says it generated more than GBP100 million of additional cost savings in the quarter, helping improve its cost-to-income ratio, excluding litigation and conduct, to 46.5% from 48.6%. Return on tangible equity remains strong at 18.2%. NatWest now expects 2026 total income excluding notable items to be at the top end of its previous GBP17.2 billion to GBP17.6 billion guidance range. It reaffirms the rest of the guidance provided with its full-year results. Chief Executive Paul Thwaite says NatWest has started the year with "positive momentum, underpinned by healthy customer activity."
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Pearson says underlying group sales rise 4% in the first quarter, with all business units performing in line with expectations. Virtual Learning is the standout performer, with underlying sales up 21%, while Assessment & Qualifications sales fall 1% as expected, though Pearson expects the division to return to growth from the second quarter. The education publisher reaffirms its 2026 guidance, targeting mid-single-digit underlying sales growth and adjusted operating profit of GBP640 million to GBP685 million, based on exchange rates at the end of 2025. It also expects a 90% to 100% conversion of free cash flow. Pearson says its medium-term outlook remains unchanged, with a target for mid-single-digit compound annual growth in underlying sales, sustained margin improvement, and strong cash conversion. Chief Executive Omar Abbosh says: "We have had an encouraging start to the year, with a good performance in line with our expectations and continued progress against our strategy...We remain confident in the momentum we are seeing for 2026"
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Santander UK says it has completed the GBP2.65 billion acquisition of TSB Banking Group PLC, creating the third-largest UK bank by personal current account balances and the fourth-largest in mortgages. The deal, completed on April 30 after regulatory approvals, also included around GBP213 million linked to changes in TSB's tangible net asset value, with a final adjustment to be made post-completion. Santander says the transaction will help lift its return on tangible equity to 16% by 2028 and deliver at least GBP400 million in cost synergies. The lender adds that TSB will be integrated into Santander UK through a banking transfer scheme expected in the first half of 2027, subject to court and regulatory approval.
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Pershing Square Holdings notes the USD5.0 billion initial public offering of Pershing Square USA Ltd has completed, alongside the listing of its manager's parent, Pershing Square Inc. The investment trust led by Bill Ackman that focuses on acquiring and holding significant positions in large capitalisation companies says shareholders will benefit from reduced performance fees, as its investment management agreement offsets fees based on income generated from funds such as PSUS that do not charge performance fees.
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COMPANIES - FTSE 250
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Rotork reports first-quarter performance in line with expectations, with revenue rising by a low single-digit percentage on an organic constant currency basis, while order intake declines by a low single-digit rate. The flow control specialist says growth in Chemical, Process & Industrial and Water & Power is offset by weaker Oil & Gas activity, particularly in EMEA, with some project delays in the Middle East due to supply chain disruption and customers prioritising production restarts. Rotork says it has not seen any material cost inflation in the period and retains pricing flexibility to protect margins. It keeps its 2026 outlook unchanged, expecting further organic constant currency progress, with a stronger second-half weighting as delayed projects are delivered.
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OTHER COMPANIES
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Meridian Mining begins trading on London's Main Market, with 485.5 million shares admitted, following a GBP25.0 million fundraising ahead of its IPO. The gold-copper explorer, focused on Brazil's Cabacal project, says it is targeting inclusion in the FTSE UK indices, aiming for FTSE All-Share entry at the next review and FTSE 250 inclusion within 12 months.
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Fermi says co-founder Toby Neugebauer has been terminated "for cause" and removed from the board on Thursday, citing conduct in violation of his employment contract. The company notes Neugebauer had previously stepped down as chief executive officer but remained a board member.
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By Eva Castanedo, Alliance News reporter
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Related Shares:
London Stock ExchangeGlencoreWhitbreadNatwestPearsonRotorkMeridian MiningFermi IncPershing Square Holdings