21st Jan 2026 07:59
(Alliance News) - UK inflation rose more than expected in December, Experian says it delivered "strong" quarterly growth while JD Wetherspoon says costs have been higher than anticipated.
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 10,133.38
GBP: lower at USD1.3444 (USD1.3462 at previous London equities close)
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ECONOMICS
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UK inflation unexpectedly rose more than expected in December, according to figures published from the Office for National Statistics. The consumer prices index including owner occupiers' housing costs, or CPIH, rose by 3.6% in the 12 months to December, up from 3.5% in November. On a month-on-month basis, CPIH rose by 0.4% in December, compared with a rise of 0.3% in the same month last year. Headline consumer prices index inflation also accelerated. CPI rose by 3.4% year-on-year in December, up from 3.2% in November. The figure was above the FXStreet-cited consensus of 3.3%. Monthly CPI rose by 0.4% in December, compared with a 0.3% rise a year earlier. This was in line with the consensus. The ONS said alcohol, tobacco and transport made the largest upward contributions to the monthly change. Prices for alcohol and tobacco rose 1.0% monthly in December after a 0.2% decline in November, while transport costs rose 1.3% on-month in December, up from 1.0% in November. Core CPIH, which is CPIH excluding energy, food, alcohol and tobacco, rose by 3.5% in the 12 months to December, unchanged from the previous month. Within this, goods inflation rose to 2.2% from 2.1% while the services annual rate remained at 4.5%. Similarly, core CPI was unchanged at 3.2%. The CPI goods annual rate rose to 2.2% from 2.1% while the CPI services annual rate rose to 4.5% from 4.4%. A separate ONS release showed producer input prices rose by 0.8% in the year to December, slowing from a 1.1% rise in November. On a monthly basis, producer input prices fell by 0.2%. Producer output prices, which measure factory gate inflation, rose by 3.4% in the year to December, unchanged from November. Producer output prices showed no movement on-month. The annual rate of import price inflation rose to 1.3% in December, the ONS said. The retail prices index also accelerated, with RPI inflation at 4.2% year-on-year in December from 3.8% in November. This was ahead of the FXStreet-cited consensus of 4.0%. On-month, RPI was 0.7% in December, ahead of the FXStreet consensus of 0.5%.
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FTSE Russell is considering changes to its rules that would make it easier for foreign companies to join its UK stock indices, Bloomberg News reported. The index provider is said to be in discussions about reducing free float requirements for foreign domiciled companies listing in London to 10% from 25%, Bloomberg sources said. It would put international companies on equal footing with businesses based in the UK. The move could potentially push smaller domestic firms out of the FTSE 100 in favour of larger global rivals. A consultation could be announced next week, one of Bloomberg's sources said. A spokesperson for FTSE Russel said it "continues to evolve its indexes to ensure that they remain fit for purpose and accurately represent financial markets".
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BROKER RATINGS
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Goldman Sachs cuts Admiral Group to 'sell' (buy) - price target 2,920 (3,954) pence
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Goldman Sachs raises Phoenix Group to 'neutral' (sell) - price target 752 (593) pence
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COMPANIES - FTSE 100
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Experian says it delivered "strong" growth in the third quarter, as total revenue rises 12% at actual exchange rates. The Dublin-based credit checking firm says in North America, revenue rises 11% in the three months to the end of December. In Latin America, revenue rises 25%, by 9% in the UK and Ireland and by 7% in Europe, Middle East and Africa and Asia Pacific. The firm says the figures are from ongoing activities. At constant exchange rates, total quarterly revenue rises 10%, while organic revenue is 8%. In North America, the financial services division delivered a "strong performance". In the UK and Ireland, it says it has driven sequential improvement despite continued soft economic activity. It expects to release its full results for the 12 months to the end of March 2026 on May 20. "With continued strong momentum, our full year expectations are unchanged. We continue to leverage our scaled proprietary data assets, strong technology foundations and deep expertise to deliver on our strategic priorities and crystallise exciting new AI opportunities," says Chief Executive Officer Brian Cassin.
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JD Sports Fashion expects full year profit before tax and adjusting items to be in line with current market expectations, which it sees as GBP849 million. The Manchester, England-based sportswear retailer says in the fourth quarter to date, or the nine weeks to January 3, group sales fall 1.8% on a like-for-like basis, but climb 1.4% on an organic basis. In the year-to-date, like-for-like sales fall 2.1%, and rise 2.2% on an organic basis. The firm says it sees an improved like-for-like sales trend in its largest market, North America. In the fourth quarter to date, like-for-like sales in America rise 1.5%, compared to a 1.7% fall in the third quarter. This is offset by weaker like-for-like trends in Europe and the UK, which are down 3.4% and 5.3% respectively, compared to 1.1% and 3.3% falls in the third quarter. The firm expects its gross margin for financial 2026 to be 50 basis points lower than the prior year as it notes "controlled price investments in the period". The firm says it is on track for GBP400 million free cash flow in financial 2026, as it completes GBP200 million of share buybacks. "Overall sales during the peak period were in line with our expectations, against a volatile consumer backdrop. Black Friday saw strong customer engagement across all regions, but demand softened in the first half of December, particularly in Europe and the UK," says Chief Executive Officer Regis Schultz. "We responded decisively in the final weeks of the period by choosing to make targeted price investments, and we saw improved sales in the immediate run-up to Christmas Day and the period after, demonstrating the strong customer appeal of JD and its complementary fascias, in a challenging market... Looking ahead, we remain confident that our agile, multi-brand, cross-category approach will enable us to outperform the market, and deliver strong cash flows and enhanced shareholder returns."
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Zurich Insurance Group is preparing to launch its first Lloyd's of London syndicate as a back-up for its bid to takeover Beazley, the Financial Times reported. Zurich on Monday confirmed it had made a GBP7.7 billion offer to buy London-based Beazley, a FTSE 100 insurer that operates in the Lloyd's market. Beazley later on Monday confirmed it receive an "unsolicited, non-binding and conditional proposal" from Zurich on January 4 at 1,230 pence per share. The Beazley board unanimously rejected that approach on Friday on the basis that it "significantly" undervalued the company, it said. Zurich said it then submitted an improved offer of 1,280p per share. Beazley said its board had not yet had the opportunity to consider the revised proposal and will update shareholders in due course. In the meantime, shareholders were urged to take no action. Zurich Chief Executive Mario Greco told the FT the company is finalising plans for a Lloyd's syndicate, which would provide it with an alternative entry into the market if its offer for Beazley is rejected. Greco said the Lloyd's launch could be as soon at April 2, the newspaper said. Beazley shares closed at 1,129.00 pence on Tuesday, giving it a market capitalisation of GBP6.77 billion. Zurich Insurance ended in Zurich at CHF568.40 for a CHF83.19 billion, about GBP78.19 billion, market cap.
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COMPANIES - FTSE 250
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JD Wetherspoon says costs have been higher than anticipated, as it expects profit in the first half to be lower than a year ago. It also expects full year trading to be down on last year. The Watford, England-based pub chain says like-for-like sales in the 25 weeks to January 18 rise 4.7%, as bar sales increase 6.9%, food by 1.3% and slot and fruit machines by 9.1%. Hotel room sales fell by 0.7%. Like-for-like sales for the second quarter of the year were 6.1% higher than the same period a year ago. Total sales are up 5.3% in the year-to-date. Like-for-like sales in the main Christmas period, the three weeks to January 4, were up 8.8%. The firm expects its year-end debt to be between GBP740 million and GBP760 million, compared to GBP724 million a year prior. The interim results for the six month period will be released on March 20. "Costs have been higher than anticipated, with energy, wages, repairs and business rates, for example, increasing by GBP45 million in the first 25 weeks," says Chair Tim Martin. "If the current sales momentum continues, the company currently anticipates a full year trading outcome slightly below that achieved in FY25."
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OTHER COMPANIES
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1Spatial recommends a cash offer from Vertigis which values it at around GBP87.1 million. The Cambridge, England-based location master data management software company says under the acquisition, each 1Spatial shareholder will receive 73 pence in cash. It expects the takeover to complete during the first half of 2026. "Vertigis's proposed offer highlights the inherent value of the 1Spatial Group and represents an attractive valuation, providing shareholders with certainty through cash consideration, and greater opportunities for our team and increased resources to support our customers," says 1Spatial Chair Andy Roberts.
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By Michael Hennessey, Alliance News reporter
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AdmiralPhoenix Group HoldingsExperianJD SportsWetherspoon (J.D)Beazley1Spatial Holdings