2nd Dec 2025 07:56
(Alliance News) - UK house price inflation eases in November but edges higher month-on-month, Nationwide says, while Endeavour Mining sets a five-year target to discover up to 15 million ounces of new resources.
Here is what you need to know before the London market open:
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MARKETS
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FTSE 100: called lower 0.1% at 9,692.63
GBP: lower at USD1.3214 (USD1.3227 at previous London equities close)
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ECONOMICS
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Nationwide says UK house price growth slows in November, with annual inflation easing to 1.8% from 2.4% in October. However, prices rise 0.3% month-on-month after seasonal adjustment, slightly stronger than October's 0.2% increase, putting the average price at GBP272,998. Chief Economist Robert Gardner says the market has been "fairly stable in recent months", with modest price growth and mortgage approvals around pre-pandemic levels despite subdued consumer confidence and signs of labour market weakness. He says last week's budget measures are unlikely to materially shift market dynamics, though higher taxes on property income could dampen rental supply. Nationwide expects affordability to improve modestly as earnings outpace house prices and borrowing costs ease.
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All of the UK's seven largest lenders passed the latest stress test, the Bank of England says. "The system remains resilient in the stress scenario. All participating banks maintain capital and leverage ratios above regulatory minima and remain able to support households and businesses through the stress. The tables below present the capital results for each participating bank," the BoE says. It adds that Lloyds, Nationwide, NatWest and Santander UK were most affected by the UK macroeconomic stress, due to higher interest rates, inflation, unemployment and house price falls. Meanwhile, internationally diversified banks Barclays, HSBC and Standard Chartered face additional pressures from global downturns and market-traded risk shocks in markets such as Hong Kong, China, the US and Europe.
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BROKER RATINGS
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RBC raises Persimmon to 'outperform' (sector perform) - price target 1,750 (1,375) pence
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JPMorgan raises Entain to 'overweight' (neutral) - price target 1,090 (1,150) pence
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RBC raises Taylor Wimpey to 'outperform' (sector perform) - price target 150 (130) pence
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COMPANIES - FTSE 100
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Endeavour Mining sets a five-year exploration target of discovering 12 to 15 million ounces of mineral resources between 2026 and 2030 at an average cost of less than USD40 per ounce. The company says the programme will support its commitment to organic growth, with brownfield work aiming to find 6 to 9 million ounces to extend mine lives beyond 10 years, and greenfield exploration targeting a further 6 million ounces, including two to three new standalone cornerstone projects. Endeavour says it continues to see significant opportunities across its brownfield portfolio and notes that discovery costs remain competitive following two prior exploration campaigns that delivered 20.7 million ounces of measured and indicated resources since 2016. Chief Executive Officer Ian Cockerill says: "Our strong track record, highly prospective land packages and high-calibre team give us the confidence to set a new, ambitious exploration target; the discovery of between 12 and 15 million ounces of resources." The company says that exploration underpins its organic growth and remains a core capital allocation priority, with increased average annual exploration spend expected to exceed USD100 million over the 2026 – 2030 period.
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Schroders hosts an investor day focused on its private markets arm, Schroders Capital, highlighting its growth prospects and performance across private equity, infrastructure, real estate and private debt. The division reports assets under management of GBP72.8 billion at October 31, up from GBP71.0 billion at June 30, and a 17% gross fundraising rate. The group says Schroders Capital has now reached "critical size thresholds" in mid-market and thematic strategies and is supported by a 40-strong business development team and up to GBP500 million in seed and co-investment capital. Schroders reiterates its confidence in generating GBP20 billion of cumulative net new business between 2025 and 2027 and achieving GBP100 billion in assets under management by the end of 2027.
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NatWest says its CET1 ratio falls to 11.1% at the low point of the Bank of England stress test, from 13.6% at the end of 2024, with its Tier 1 leverage ratio dipping to 4.7% from 5.0%. The bank says no strategic management actions are required following the assessment. Santander UK Group Holdings reports a minimum CET1 ratio of 10.3% in the stress scenario, compared with 14.8% in December 2024, and a UK leverage ratio of 3.9% versus the 3.25% requirement. The low point UK leverage ratios in the stress test for Barclays, HSBC, Lloyds, Nationwide and Standard Chartered are, respectively, 4.2%, 5.1%, 4.6%, 4.8%, and 4.6%.
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Segro signs a pre-let agreement with a major international retailer for an 86,000-square-metre distribution centre in Germany's Rhine-Ruhr region. The company says the facility will support the retailer's European logistics network, with further details to be provided once development progresses.
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COMPANIES - FTSE 250
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Edinburgh Worldwide and Baillie Gifford US Growth Trust say their proposed merger will not proceed without the backing of major shareholder Saba Capital, which has rejected the deal. Both boards had been in advanced discussions on a combination to be implemented via a scheme of reconstruction, offering shareholders continued exposure to high-growth public and private companies as well as a cash exit option of up to 40% at a narrow discount to NAV. Edinburgh Worldwide says the merger would have delivered enhanced scale, improved liquidity and cost efficiencies, along with a blended six-member board and a management fee waiver from Baillie Gifford to support implementation. The trust highlights progress on its "path for growth" strategy over the past year, including portfolio rebalancing, a focus on more profitable and diversified holdings, and a GBP130 million share buyback and capital return programme. It says performance and discount management have improved, with NAV returns ahead of its benchmark and its discount far narrower than peers. However, Saba - which holds 29% of Baillie Gifford US Growth and is Edinburgh Worldwide's largest shareholder - has declined to support the merger. Both trusts say Saba's position prevents the proposal from moving forward, though engagement with shareholders will continue.
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OTHER COMPANIES
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CLS Holdings says leasing activity remains resilient despite slower decision-making caused by economic and political uncertainty. The company reports steady demand for high-quality office space and says recent significant leases in London and Germany will further reduce vacancy on a pro-forma basis. CLS is now more than halfway through its GBP400 million disposals programme and expects further asset sales to complete over the coming quarters. It adds that refinancing is progressing well, with all GBP373 million of 2025 maturities refinanced or repaid, and notes that rent collection remains strong at 99% for the first three quarters. Chief Executive Fredrik Widlund says: "Although broader economic and political developments have slowed down leasing activity and decision making since the summer, leasing activity continues to hold up well, with the same value of letting transactions as last year and rental growth continuing across our markets."
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NewRiver REIT reports a "strong" first half, with pretax profit for the six months to September 30 rising to GBP13.8 million from GBP8.2 million a year earlier. Net property income increases to GBP31.4 million from GBP21.8 million, and EPRA net tangible assets per share edge up to 104p at September 30 from 102p at March 31. The company lifts its interim ordinary dividend to 3.1p per share, compared with 3.0p a year before, and says the period was "another positive" one, supported by improved earnings and continued operational progress.
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By Eva Castanedo, Alliance News reporter
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Related Shares:
SchrodersSegroEdinburgh Worldwide Investment TrustBaillie Gifford US Growth TrustLloydsNatwestHSBC HoldingsBarclaysStandard CharteredCLS HoldingsPersimmonEntainTaylor WimpeyNewRiverEndeavour Mining