17th Dec 2025 09:56
(Alliance News) - UK inflation slows more than expected in November and Bunzl reaffirms its 2025 outlook, while Greencore's takeover of Bakkavor clears a key regulatory hurdle.
Here is what you need to know before the London market open:
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MARKETS
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FTSE 100: called higher 0.7% at 9,754.19.
GBP: lower at USD1.3329 (USD1.3429 at previous London equities close)
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ECONOMICS
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UK inflation slowed more than expected in November, ahead of the Bank of England's rate decision due on Thursday. CPIH, the consumer prices index including owner occupiers' housing costs, rose 3.5% year-on-year, down from 3.8% in October, while headline CPI eased to 3.2% from 3.6%, below the FXStreet consensus of 3.5%. Both measures fell on the month, with food, alcohol and tobacco driving the largest downward contributions. The inflation rate for food and non-alcoholic beverages decelerated to 4.2% on-year in November from 4.9% in October. Monthly, prices for food and non-alcoholic beverages fell 0.2% in November, compared to a 0.5% increase in November 2024. Core inflation also cooled, with core CPIH at 3.5% and core CPI at 3.2%. Producer price data were mixed, with input costs rising 1.1% annually but factory gate inflation easing. RPI inflation moderated to 3.8% from 4.3%.
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Brent oil traded at USD59.76 a barrel early Wednesday, higher than USD59.01 late Tuesday, following developments as US President Donald Trump ordered a blockade of "sanctioned" oil tankers travelling to and from Venezuela, sharply escalating Washington’s pressure campaign against Caracas.
Trump's announcement comes as the US continues to build a significant military presence in the Caribbean, officially to combat drug trafficking but with increasing emphasis on Venezuela. The country is estimated to have oil reserves of some 303 billion barrels, according to the Organization of the Petroleum Exporting Countries, OPEC, – more than any other nation.
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BROKER RATINGS
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UBS cuts Admiral Group to 'neutral' - price target 3,300 pence
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Berenberg raises Glencore to 'buy' (hold) - price target 480 (350) pence
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Jefferies cuts Hunting to 'hold' (buy) - price target 400 pence
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COMPANIES - FTSE 100
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Bunzl says it expects to meet its 2025 outlook, reaffirming adjusted operating profit guidance as revenue edges between 2% and 3% higher at constant exchange rates and stays broadly flat at actual rates. The distribution group cites ongoing macroeconomic challenges but notes improving momentum into the final quarter, supported by performance actions and new business wins in North America. Operating margin is set to be around 7.6%, with the year-on-year margin decline moderating in the second half. Looking ahead, Bunzl says economic and geopolitical uncertainties are likely to persist into 2026. It expects "moderate" revenue growth next year, with operating margin slightly lower. The firm also highlights the completion of its GBP200 million 2025 buyback and the acquisition of Damito in Slovakia, which extends its European footprint. CEO Frank van Zanten says: ""Despite what has remained a challenging market, we expect to meet our outlook for 2025, which was set out in April this year. We continue to remain strongly focused on performance across the broup and are encouraged by operational improvements being made and new business wins in North America. We remain confident in the group's underlying resilience and strength, and ability to deliver consistent compounding growth in the medium-term."
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COMPANIES - FTSE 250
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The UK Competition & Markets Authority accepts undertakings from Greencore, the convenience food provider, to resolve competition concerns over its takeover of Bakkavor, the London-based fresh prepared foods manufacturer, clearing the deal without a phase 2 investigation. The undertakings include the agreed sale of Greencore's Bristol chilled soups and sauces site to Compleat Food Group. With the CMA condition now satisfied, alongside US antitrust clearance, Greencore says the recommended acquisition is on track to complete on January 16, 2026, when the scheme of arrangement is expected to become effective. Remaining steps include a court hearing on January 15 and the suspension of Bakkavor's listing ahead of its cancellation on January 19.
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Edinburgh Worldwide Investment Trust says it receives a requisition request from Saba Capital Management calling for the removal of all six independent non-executive directors and their replacement with three US-based nominees selected by Saba. The trust confirms it will convene a general meeting and issue a circular in due course. Edinburgh Worldwide urges shareholders to vote against the resolutions, accusing Saba, which held around 29% of the trust as of October 15, of "wanting to take control on the cheap" after a similar move was voted down in February. The board warns that Saba has not disclosed its intentions for the trust and argues its nominees "would not be independent". The trust highlights recent improvements under its "Path for Growth" strategy, including a 16.2% NAV total return over the past year compared to 6.0% for the S&P Global Small Cap Index, the the trust's benchmark. It stresses shareholders "cannot take for granted" that Saba will be defeated again.
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OTHER COMPANIES
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All Things Considered Group begins trading on AIM after completing an GBP8.6 million fundraising at 125 pence per share, giving the independent music company a market capitalisation of about GBP29.3 million. The group, which moves from the Aquis Stock Exchange, says the proceeds will support investment in artist representation, technology infrastructure and its proprietary data platform aimed at enhancing direct-to-fan engagement. Executive Director Craig Newman invests GBP585,000 in the placing, taking his stake to around 8%, while COO James Patterson invests GBP100,000. The firm confirms the appointment of Andy Glover as non-executive chair and Cliff Fluet as non-executive director.
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By Eva Castanedo, Alliance News reporter
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Related Shares:
BunzlGreencoreBabcockEdinburgh Worldwide Investment TrustAtlantic CoalAdmiralGlencoreHuntingBakkavor