16th Dec 2025 07:58
(Alliance News) - UK unemployment ticks higher, Anglo American secures a regulatory green light for its merger with Teck, and IG Group posts strong quarterly revenue growth as it sees further momentum into 2026.
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 0.4% at 9,712.81
GBP: lower at USD1.3375 (USD1.3390 at previous London equities close)
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ECONOMICS
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UK unemployment rises to 5.1% in the three months to October, up from 5.0% in the previous period, the Office for National Statistics says, matching consensus expectations. The latest data point to further signs of cooling labour demand. The employment rate slips to around 75%, while economic inactivity edges down to 21%. Annual growth in total pay including bonuses eases to 4.7% from 4.9%, with private-sector pay growth slowing to 4.0%. In real terms, total pay increases 0.6% year-on-year on a CPIH-adjusted basis. PAYE data show the number of payrolled employees falls by 22,000 between September and October and is down 149,000, or 0.5%, on the year. A provisional estimate for November points to a sharper drop of 38,000, taking the total to about 30.3 million. Vacancies hold steady at 729,000 in the three months to November, while the claimant count edges up on the month to 1.68 million.
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The US has suspended implementation of a technology co-operation pact agreed with the UK during Donald Trump's state visit in September, as Washington presses London for concessions in broader trade negotiations, the New York Times first reports. The "technology prosperity deal" - covering collaboration in artificial intelligence, quantum computing and nuclear energy - was paused last week, UK officials confirmed. Trade discussions have been under way since May, when both sides struck an agreement easing Trump-era tariffs on UK goods. Washington has pushed Britain to recognise US standards on agricultural products, though no firm commitments were included in previous agreements. Digital services taxes imposed on US tech groups have also drawn criticism from the Trump administration.
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BROKER RATINGS
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Citigroup cuts 3i Group price target to 4,750 (4,800) pence - 'buy'
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UBS cuts Victrex price target to 575 (675) pence - 'sell'
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Deutsche Bank Research starts Magnum Ice Cream with 'hold' - price target 14.50 EUR
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COMPANIES - FTSE 100
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Shell's Chief Executive Wael Sawan and Chief Financial Officer Sinead Gorman rejected an internal proposal to bid for BP earlier this year, prompting the departure of the group's head of mergers and acquisitions, the Financial Times reports. The M&A team, led by Greg Gut, is said to have argued in early 2025 that BP's falling share price and leadership instability created a rare opening for Shell to address its long-term growth challenges through a transformative deal. Shell Chair Andrew Mackenzie was reportedly receptive to hearing the pitch, but Sawan and Gorman opposed a move, warning that attempting to merge two of the UK's largest companies would disrupt Shell's strategic focus. Shell publicly denied interest in BP in June, triggering a six-month period during which it was barred from making an offer under UK takeover rules.
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Rolls-Royce says it will begin a new share buyback of up to GBP200 million in early January, following the completion of its GBP1 billion 2025 programme last month. The interim, irrevocable and non-discretionary programme will run from January 2 to no later than February 24, ahead of the group’s full-year results on February 26.
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Anglo American and Teck Resources say the Canadian government has approved their proposed merger of equals under the Investment Canada Act, marking a step toward forming "Anglo Teck", which will be headquartered in Vancouver and will have its primary listing on the LSE. The approval includes binding commitments, with Anglo Teck to spend at least CAD4.5 billion, around USD3.3 billion, in Canada within five years. Total Canadian investment is expected to exceed CAD10 billion over 15 years. Anglo CEO Duncan Wanblad says: "We are all committed to preserving and building on the proud heritage of both companies, in Canada, as home to Anglo Teck's global headquarters, in South Africa where our commitment to investment and national priorities endures, and across our entire global operational and commercial footprint." Teck CEO Jonathan Price says: "This merger will combine two world-class companies to form a business of significant scale and capability that will deliver billions in investment." Shareholders of both companies approved the deal on December 9, with remaining competition and regulatory clearances still required in several jurisdictions.
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COMPANIES - FTSE 250
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IG Group reports a strong rise in quarterly trading revenue and says it remains on track to meet market expectations for 2026. The London-based online trading platform says net trading revenue in the three months to November 30 rises to GBP278.2 million from GBP209.6 million a year earlier, with organic growth of 29%. Total revenue increases 26% to GBP307.6 million from GBP243.5 million. The group cites stronger customer acquisition, enhanced product offerings and continued double-digit growth in the US and at Freetrade. Net interest income declines to GBP29.4 million from GBP34.0 million as lower rates offset higher cash balances. IG extends its share buyback programme by GBP75 million to GBP200 million, saying it expects to deliver mid-point guided revenue growth in 2026 and is confident of meeting market expectations for Ebitda and cash earnings per share. IG expects to report revenue of around GBP1.10 billion for 2025, up 5% year-on-year.
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OTHER COMPANIES
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Pathos Communications begins trading on AIM on Tuesday after completing a GBP5.6 million fundraising through a placing of new and existing shares at 30 pence each, giving the PR technology firm a market capitalisation of around GBP20 million on admission. The public relations agency says the proceeds will support expansion of its sales and marketing teams and development of its AI-driven tools. Founded in 2019, Pathos reports more than USD28 million in revenue since 2022 and an average gross margin above 79%. The group serves over 6,000 clients across 89 countries and says repeat business accounted for 45% of cash collection in the 2025 period to September 30. Chief Executive Officer Omar Hamdi says admission marks "an important milestone" and will help accelerate the company’s next phase of growth. "Since our inception in 2019, we have delivered substantial and sustained growth, but we are still early in our journey. Admission to AIM will provide us with an enhanced platform, expanded resources, and increased market visibility to accelerate this momentum, strengthening our offering and supporting the next phase of growth," Hamdi adds.
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By Eva Castanedo, Alliance News reporter
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Related Shares:
BPShellRolls-RoyceAnglo AmericanIGVictrex3i GroupPathos Comm