22nd Oct 2025 08:00
(Alliance News) - Barclays reported slightly lower third-quarter profit after taking an extra charge for UK motor finance redress, while Liberty Global halved its ITV stake in a GBP135 million share sale.
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 0.5% at 9,471.69
GBP: lower at USD1.3333 (USD1.3390 at previous London equities close)
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ECONOMICS
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UK inflation held steady in September, with consumer prices rising 3.8% annually, unchanged from August, the Office for National Statistics says. The figure, matching the joint-highest rate since January, came in below the FXStreet-cited consensus of 4.0%. On a monthly basis, prices were flat after a 0.3% increase in August. The broader CPIH measure, which includes housing costs, also held steady at 4.1%. Food inflation eased to 4.5% from 5.1%, while housing and household services slowed to 5.9%. Core CPI, excluding energy, food, alcohol, and tobacco, edged down to 3.5% from 3.6%. Producer prices also picked up, with factory gate prices rising 3.4% and input costs up 0.8% year-on-year. The retail prices index fell 0.4% month-on-month in September but was up 4.5% year-on-year.
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BROKER RATINGS
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Goldman raises IAG to 'buy' (neutral) - price target 470 (400) pence
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Barclays cuts Bunzl price target to 2,750 (3,100) pence - 'overweight'
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Peel Hunt raises XP Power to 'hold' - price target 1,000 pence
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COMPANIES - FTSE 100
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Barclays reports a 7% drop in third-quarter pretax profit to GBP2.08 billion from GBP2.23 billion a year earlier, after recognising an additional GBP235 million charge for UK motor finance redress, lifting its total provision to GBP325 million. Total income rises 9% to GBP7.17 billion, supported by broad-based growth across divisions. Income in Barclays UK increases 16%, boosted by the Tesco Bank purchase, while the UK Corporate Bank grows 17%. The Investment Bank posts an 8% rise, the Private Bank and Wealth Management division gains 3%, and the US Consumer Bank advances 19%. Credit impairment charges rise to GBP632 million from GBP374 million, and total litigation and conduct costs climb to GBP255 million from GBP35 million. Return on tangible equity stands at 10.6% in the quarter and 12.3% year-to-date. Barclays upgrades its 2025 RoTE guidance to above 11% and reaffirms its 2026 target of greater than 12%. The bank launches a GBP500 million share buyback as part of bringing forward its 2025 distribution plan and maintains its goal to return at least GBP10 billion of capital between 2024 and 2026. Its common equity tier 1 ratio is 14.1% at September 30, reducing to 13.9% after the buyback.
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Fresnillo says third-quarter production is in line with expectations and reiterates its full-year outlook. The Mexico-focused precious metals producer says attributable silver output falls 6.6% quarter-on-quarter to 11.7 million ounces, mainly reflecting lower grades and reduced processing at several mines. Gold production slips 4.1% to 151,256 ounces, though year-to-date output rises 8.8% on stronger performance at Herradura. Zinc production declines 13% to 24,735 tonnes, while lead output edges up 1.4% to 15,359 tonnes. The miner maintains 2025 guidance of 47.5 to 54.5 million ounces of silver and 550,000 to 590,000 ounces of gold, and says its 2026 and 2027 production outlooks remain unchanged.
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COMPANIES - FTSE 250
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Liberty Global sells 193.4 million shares in ITV for GBP135 million through a placing to institutional investors, cutting its stake in the broadcaster to around 5% from 10%. The sale, conducted via its subsidiary Liberty Global Ventures, is handled by BNP Paribas and Deutsche Numis through an accelerated bookbuild process. Liberty Global agrees not to sell further ITV shares for 60 days following completion, subject to customary exceptions. The company first took a stake in ITV in 2014 from satellite broadcaster Sky for GBP481 million and nearly doubled it the following year.
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Softcat reports a "record" year of growth, with pretax profit for the twelve months to July 31 rising 12% to GBP178.2 million from GBP159.4 million and revenue jumping 52% to GBP1.46 billion. Gross profit increases 18% to GBP494.3 million from GBP417.8 million, driven by strong demand across technologies and customer segments, while underlying operating profit climbs 17% to GBP180.1 million from GBP154.1 million. The Buckinghamshire, England-based provider of IT infrastructure products and services declares a total ordinary dividend of 29.3p per share, up 10% from 26.6p, and a special dividend of 16.1p, down from a 20.9p one declared a year prior. Softcat completes its first-ever acquisition, data and AI consultancy Oakland, during the year. It reaffirms its FY26 outlook, expecting underlying operating profit growth to be weighted toward the first half.
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OTHER COMPANIES
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Princes Group sets the price range for its planned London IPO at 475p to 590p per share, implying a market capitalisation between GBP1.16 billion and GBP1.24 billion. The canned food producer plans to raise up to GBP400 million in primary capital through the issue of up to 84.2 million new shares to support future acquisitions. Trading on the London Main Market is expected to begin on November 5, with conditional dealings to start by the end of October. Princes' majority shareholder, Milan-listed NewPrinces Spa, intends to subscribe for up to GBP200 million of shares. The company expects to qualify for FTSE UK indices following admission, meaning it is likely to join the FTSE 250.
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Serica Energy says its planned move from AIM to the London Stock Exchange Main Market, which was set to be completed in the fourth quarter of financial 2025, will now take place after publication of its 2025 audited accounts. The oil and gas producer cites recently announced mergers and acquisitions and the resulting requirement to include a competent person's report on acquired reserves in its prospectus as reasons for the delay. Serica says most preparatory work is complete and remains committed to completing the transfer at the earliest viable opportunity.
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By Eva Castanedo, Alliance News reporter
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