20th Jan 2026 07:58
(Alliance News) - The UK unemployment rate was steady while regular earnings growth slowed, GSK agrees to buy biopharmaceutical firm RAPT Therapeutics for USD2.2 billion and Informa reports "strong trading" in the fourth quarter.
Here is what you need to know before the London market open:
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MARKETS
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FTSE 100: called down 0.6% at 10,131.85
GBP: higher at USD1.3472 (USD1.3428 at previous London equities close)
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ECONOMICS
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The UK unemployment rate stayed the same in the three months to November, while regular earnings growth slowed. According to the Office for National Statistics, the jobless rate was 5.1% in the three months to November, unchanged from 5.1% in the three months to October. This came slightly above the FXStreet-cited market consensus, which had pencilled in a slight fall in unemployment to 5.0%. The ONS said payrolled employees in the UK fell by 155,000, or 0.5%, on-year in November, and fell by 33,000, or 0.1%, on-month. In the three-month period to November, the number of payrolled employees fell by 135,000, or 0.4% over the year, and by 43,000, or 0.1%, over the quarter. The early estimate of payrolled employees for December decreased by 184,000, or 0.6%, on the year, and by 43,000, or 0.1%, on the month to 30.2 million. The ONS noted that this estimate is likely to be revised with more data next month. Annual growth in regular earnings, excluding bonuses, was 4.5% in the three months to November, slowing from 4.6% in the three months to October. Including bonuses, total earnings growth was 4.7%, unchanged from the previous period and above FXStreet-cited forecasts of 4.6%. Both are above the UK consumer price inflation rate of 3.2% in November.
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German producer prices declined at an accelerated rate in December, data published by the Federal Statistical Office showed. German producer prices fell by 2.5% in December from a year before after a 2.3% annual decline in November and sharper than the FXStreet-cited market consensus of 2.4% deflation. On a monthly basis, producer prices were down 0.2% in December after no change in November and more than an expected fall of 0.1%. For all of 2025, producer prices in Germany were 1.2% lower on an annual average compared with 2024. However, when energy prices are excluded, producer prices in 2025 were 1.2% higher than in 2024. This is due to energy prices falling by an average of 6.2% in 2025 compared with 2024. Separately, the statistical office reported that German exports to the US fell by 9.4% on-year in the first 11 months of 2025 to EUR135.8 billion, while imports increased by 2.2% to EUR86.9 billion. The German trade surplus with the US was the lowest since the pandemic year of 2021, the office highlighted, falling to EUR48.9 billion for the first 11 months of 2025, down 25% from a record high of EUR64.8 billion a year prior. The statistical office emphasised that motor vehicles remained the most important German export commodity, while noting: "As a result of the US government's tariff policy, German-American trade relations weakened significantly in 2025." German motor vehicles and motor vehicles parts exports to the US fell by 18% on-year in the first 11 months of 2025 to EUR26.9 billion. Meanwhile the export of pharmaceutical products saw a 0.7% increase to EUR26.2 billion.
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BROKER RATINGS
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Berenberg cuts Whitbread to 'hold' (buy) - price target 2,900 pence
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JPMorgan raises NatWest price target to 750 pence - 'overweight'
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COMPANIES - FTSE 100
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GSK agrees to buy RAPT Therapeutics, a California-based clinical-stage biopharmaceutical company focused on novel therapies for inflammatory and immunologic diseases. The London-based pharmaceuticals firm says it will pay RAPT shareholders USD58.00 per share at closing for an estimated aggregate equity value of USD2.2 billion. Net of cash acquired, GSK's estimated upfront investment is USD1.9 billion. It notes that the acquisition includes ozureprubart, a long-acting anti-immunoglobulin E monoclonal antibody, currently in phase two B clinical development for prophylactic protection against food allergens. GSK says ozureprubart's clinical profile offers the potential for less frequent dosing of every 12 weeks for food allergens, down from every two to four weeks. The transaction gives GSK the global rights to the ozureprubart programme, excluding mainland China, Macau, Taiwan and Hong Kong. GSK will also be responsible for success-based milestone and royalty payments for ozureprubart owed to RAPT's partner, Shanghai Jeyou Pharmaceutical. The transaction is expected to close in the first quarter of 2026. "The addition of ozureprubart brings another promising new, potential best-in-class treatment to GSK's pipeline," says GSK Chief Scientific Office Tony Wood. Separately, GSK says it and Shionogi have agreed changes to with Pfizer for its 12% interest in ViiV Healthcare. ViiV Healthcare is a global specialised HIV company. Pfizer's holding will be replaced with an investment by Shionogi. As a result of this transaction, Shionogi will increase its economic interest in ViiV Healthcare to 22%. GSK will maintain its 78% majority owned economic interest. Under the terms of the agreement, ViiV Healthcare will issue new shares to Shionogi for USD2.13 billion and cancel Pfizer's holding in ViiV Healthcare. Pfizer will receive USD1.88 billion and GSK will receive a special dividend of USD250 million.
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Informa says "strong trading" in the fourth quarter is expected to deliver full year results in line with or ahead of market guidance. The London-based events, digital services, and academic publishing business expects revenue of at least GBP4.0 billion from GBP3.55 billion a year prior, delivering on-year revenue growth of at least 13%, with underlying revenue growth of 6.3%. It expects adjusted earnings per share for 2025 to be at least 55.5 pence, compared to 50.1p a year prior. The company says its GBP350 million share buyback programme for 2025 completed in December, as it launches an initial GBP200 million programme for 2026. It notes there is scope for further buybacks through the year. "2025 was a strong year for Informa and we have set ourselves the target of delivering another strong performance year in 2026," says Chief Executive Stephen Carter. It proposes an ordinary dividend of 22p per share, up 10% from 20.0p a year prior. Separately, Informa says it is combining its wholly-owned business-to-business Live Events arm in the United Arab Emirates and the wider India, Middle East and Africa region with Dubai World Trade Centre's Live Events business to create a new operating business called inD. "The creation of inD deepens our partnership with DWTC at a time of structural growth for our industry, strong economic growth across the region, and dynamic market growth in the UAE in particular, as the supply of high quality venue space increases to meet growing demand for B2B Live Events," says CEO Stephen Carter.
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COMPANIES - FTSE 250
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Ibstock says revenue rises 2% in 2025 to around GBP372 million from GBP366 million a year prior in "progressively more challenging market conditions". The Leicestershire, England-based building products supplier says its Clay market share in the 11 months to November was ahead of the comparative period, though total brick market volume of GBP1.85 billion for the year remains "materially below" the GBP2.5 billion in 2022, though is higher than GBP1.72 billion in 2024. The company expects earnings before interest, tax, depreciation and amortisation for the full year to be in line with previous guidance, along with underlying trading cash flow. It says "major investment projects" in Atlas and Nostell are "largely complete" with more efficient and sustainable capacity in place for the wirecut brick and ceramic facades markets. "Decisive cost action has been taken to reduce headcount and right-size overall group capacity to near-term market dynamics," Ibstock adds. Looking ahead, Ibstock says it expects the residential construction and repair, maintenance and improvement markets to "remain subdued" in the near-term. It anticipates some modest on-year volume growth in the second half of 2026 as markets recover. The firm says pricing actions are expected to offset the impact of cost inflation. "Reflecting our current view of the market, we will be actively managing production volumes and inventory in the first half, which will create a margin headwind for 2026, but benefit overall cash generation," Ibstock says.
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OTHER COMPANIES
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Wise says its financial performance in the third quarter was "strong" and it is on track to meet guidance for the 2026 financial year. The London-based money transfer services provider adds that it expects to complete its dual listing in the US in the first half of 2026 which it says will "further increase" its profile in the US. Wise says third quarter cross-border volume grew 25% to GBP47.4 billion, or 26% on a constant currency basis, with 10.9 million active customers using Wise, up 20%. The firm says underlying income was GBP424.4 million in the third quarter, up 21% on a reported basis. On a constant currency basis, underlying income grew by 21% in the third quarter and 17% in the year-to-date. The firm expects to be around the middle of its guided range of between 15% and 20% growth for financial 2026. It now expects the underlying pretax profit margin for financial 2026 to be "towards the top" of the guided 13% to 16% target range, including costs related to the dual listing.
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By Michael Hennessey, Alliance News reporter
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