9th Oct 2025 07:53
(Alliance News) - Stocks are called lower in London on Thursday, while the EU has warned the UK that it must fulfil its commitment to check goods entering Northern Ireland before a full food and animal trade deal is signed.
In corporate news, Challenger Energy has agreed to a takeover by Canadian oil and gas company Sintana Energy.
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 38.6 points, 0.4% at 9,510.27
GBP: flat at USD1.3406 (USD1.3406 at previous London equities close)
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ECONOMICS
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Keir Starmer is meeting Narendra Modi for face-to-face talks on the second and final day of his trade mission to India, with Vladimir Putin likely to be on the agenda. The UK prime minister and his Indian counterpart are meeting at Raj Bhavan, the official residence of the governor of Maharashtra, the state of which Mumbai is the capital. Alongside the new trade deal between the two nations, the two prime ministers are expected to discuss the Indian leader's relationship with Russia and the long-term detention of British citizen Jagtar Singh Johal. Starmer has so far declined to answer questions about Modi's close relationship with Putin, and India's continued purchase of Russian fossil fuels during his visit to Mumbai. He has insisted the UK remains among Kyiv's biggest supporters, but suggested Britain's relationship with India is also stronger than ever. Meanwhile, some 7,000 jobs will be created in the UK as a result of Indian investment from newly struck trading arrangements, Downing Street claimed. Some 64 Indian companies, including in engineering, technology and the creative industries, have agreed deals worth some GBP1.3 billion to Britain during the visit.
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Brussels has warned the UK that it must fulfil its commitment to check goods entering Northern Ireland before a full-scale deal to scrap controls on food and animal trade with the bloc is signed, the Financial Times reports. The Labour government has made the deal a key plank of its economic growth plans, but EU member states say the UK has yet to put in place proper checks of products travelling from Great Britain across the Irish Sea. Two EU officials told the FT that the European Commission has informed London it must comply before it can start serious talks on a sweeping agrifood deal, which it hopes to implement by 2027. The EU has tight health controls on imports from third countries to prevent infected animals, food or unauthorised genetic products entering, although under the 2023 Windsor framework foodstuffs are allowed to flow from Great Britain to Northern Ireland provided they are labelled appropriately and the UK polices what enters. However, three diplomats said the level of checks had fallen well below the agreed 10% for goods imports and EU officials had discovered that many products were non-compliant. UK companies are failing to fully complete health certificates to accompany goods, they added. The commission has set a November 1 deadline for the UK to grant full access to IT systems for parcel and freight tracking, so it can double check their contents as agreed in the Windsor framework.
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The UK Competition & Markets Authority releases its provisional redeterminations on water price controls, for the five water companies in England which disputed water regulator Ofwat's determinations on PR24, the price control for each of the 16 regulated monopoly companies covering the period 2025 to 2030. Anglian Water, Northumbrian Water, South East Water, Southern Water, and Wessex Water argued that this decision left them unable to meet their regulatory requirements. However, the CMA now says that an independent group has rejected nearly 80% of the increases sought. The independent group has provisionally decided to allow 21% - an additional GBP556 million in revenue - of the total GBP2.7 billion the 5 firms requested. This is expected to result in an average increase of 3% in bills for customers of the disputing companies, in addition to the 24% increase expected as part of Ofwat's original determination, the CMA says. Kirstin Baker, the independent group's chair, says: "We've found that water companies' requests for significant bill increases, on top of those allowed by Ofwat, are largely unjustified. We understand the real pressure on household budgets and have worked to keep increases to a minimum, while still ensuring there is funding to deliver essential improvements at reasonable cost."
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BROKER RATINGS
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JPMorgan cuts Glencore to 'neutral' (overweight) - price target 400 (370) pence
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UBS cuts Ashmore group to 'neutral' (buy) - price target 180 (170) pence
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Berenberg cuts Flutter price target to 24,200 (24,700) pence - 'buy'
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COMPANIES - FTSE 100
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Lloyds Banking says it continues to consider the impact and implications of the recently published FCA consultation paper on motor finance. It says uncertainties remain outstanding on the interpretation and implementation of the proposals. However, it believes an additional provision, possibly "material", is likely to be required, based on its initial analysis and the characteristics of the proposed scheme. Says this remains subject to ongoing analysis and review of the proposals. Follows the Financial Conduct Authority on Tuesday announcing its estimate that compensation for mis-sold car finance could cost UK banks around GBP8.2 billion, below its earlier forecast range of GBP9 billion to GBP18 billion. Other lenders with exposure include Close Brothers, S&U, and Vanquis Banking.
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COMPANIES - FTSE 250
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Volution Group reports revenue of GBP419.1 million for the year ended July 31, up 21% from GBP347.6
million the year before. Pretax profit, however, declines 3.7% to GBP54.5 million from GBP56.6 million. Volution increases the total dividend per share by 20% to 10.8 pence, including declaring a final dividend of 7.4p, from 9.0p. "The new year has started well, with continuing organic revenue growth complemented by the inorganic revenue benefit from the [acquisition of the Fantech group in November]," comments Chief Executive Officer Ronnie George. "Notwithstanding the still difficult economic backdrop in many of our end markets, we remain confident of continuing to deliver compounding growth and another year of good progress."
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SSP says it remains on track to deliver full-year earnings per share in the middle of the previously published planned range, and in line with current market expectations, despite a moderation in the growth of passenger numbers in the second half. Full-year revenue totals around GBP3.7 billion, up around 8% on-year, with operating profit rising around 11% to GBP230 million and an operating margin of around 6.2%. Fourth-quarter revenue growth is forecast at around 4% at constant currency on-year, "reflecting growth in Asia PAC&EEME, North America and UK, [and] offset by lower sales in Continental Europe". SSP also announces a new buyback worth up to GBP100 million, starting immediately and ending no later than October 9, 2026. "The sole purpose of the programme is to reduce the company's issued share capital," the food and beverage outlet operator says.
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OTHER COMPANIES
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Challenger Energy has agreed to an all-share takeover offer from Sintana Energy Inc. The offshore Uruguay-focused energy and mining company says its shareholders will be entitled to receive 0.4705 new Sintana shares for each Challenger shares. In total they will receive approximately 126.7 million Sintana shares, and own around 25% of the combined group's share capital. The deal represents an implied value of 16.61 pence per Challenger share, valuing the company at approximately GBP45 million on a fully diluted basis. Sintana is a Canadian oil and gas exploration company with a primary portfolio of assets in Namibia, and a legacy holding in an exploration licence in Colombia.
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By Emma Curzon, Alliance News reporter
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LloydsGlencoreFlutter EntertainmentAshmore GroupVolution Group PLSSSP GroupChallenger Energy