ADVFN UK Market News

Author: Fiona Craig

  • ECB May Need Further Rate Increase, Nagel Says

    ECB May Need Further Rate Increase, Nagel Says

    The European Central Bank may need to raise interest rates further to a level that slightly restricts economic activity, ECB policymaker Joachim Nagel said on Friday.

    Nagel, who is also president of Germany’s Bundesbank, made the comments in an interview with CNBC.

    He said the ECB’s future interest-rate decisions will depend on developments in energy prices.

    Nagel added that it was too early to predict specific monetary policy decisions, leaving the outlook dependent on incoming economic conditions.

  • Mario Draghi Calls for More AI Data Centres in Europe

    Mario Draghi Calls for More AI Data Centres in Europe

    Former European Central Bank President Mario Draghi said Europe needs to increase its artificial intelligence data-centre capacity to support economic sovereignty and productivity growth.

    Writing in the Financial Times on Friday, Draghi said the productivity gap between the euro area and the US increased from $9 per hour in 2018 to $21 in 2025.

    He cited European Central Bank scenarios indicating that rapid AI adoption could add between 0.3 and 0.4 percentage points annually to total factor productivity growth, which has been approximately zero since 2022.

    According to figures cited by Draghi, the European Union accounts for less than 5% of global AI computing capacity, compared with 75% for the US. He said the gap between European demand and installed supply is currently approximately 3GW, equivalent to around a quarter of existing capacity, and is expected to reach 14GW by 2030.

    “Being cut off from AI, once the economy runs on it, would be more like being cut off from the US financial system. The effects would be catastrophic,” Draghi said.

    Draghi, who also served as Italy’s prime minister, said Europe controls a limited share of the AI value chain but has an opportunity to retain sovereignty over its data. European Commission estimates cited by Draghi put the value of Europe’s data economy at more than €800 billion, or over 5% of GDP, by 2030.

    He also highlighted differences in data-centre construction times. According to Draghi, a facility takes approximately 24 months to build in the US compared with 42 months in Germany, reflecting longer permitting and grid-connection processes. He added that building an AI data centre in Sweden costs approximately 10% more than in China.

    Draghi proposed that European companies combine their purchasing commitments into contracts of sufficient scale to support financing for new data centres.

    He cited a group of European companies, including ASML, Capgemini and Amadeus, that have committed to multiyear purchases of Mistral’s European Compute Units. The initiative is intended to support 1GW of capacity by 2030.

  • Alstom Wins Contracts Worth More Than €1.2 Billion for TransPennine Express Trains

    Alstom Wins Contracts Worth More Than €1.2 Billion for TransPennine Express Trains

    Alstom (EU:ALO) has secured contracts worth more than €1.2 billion ($1.4 billion) to supply and maintain 29 battery-electric trains for TransPennine Express in the UK.

    The rolling stock order represents approximately €930 million of the total contract value.

    Delivery of the new fleet is scheduled to begin in 2032. The trains will support the Transpennine Route Upgrade in northern England.

    Alstom said the contracts will create more than 350 jobs in Derby and support 5,500 positions across its UK supply chain.

  • FTSE 100 Flat as UK GDP Growth Offsets Strait of Hormuz Concerns

    FTSE 100 Flat as UK GDP Growth Offsets Strait of Hormuz Concerns

    The FTSE 100 was little changed on Friday as stronger-than-expected UK economic growth data was balanced by continued concerns over disruption in the Strait of Hormuz.

    The FTSE 100 was down 0.03% at 03:25 ET (07:25 GMT). Elsewhere in Europe, Germany’s DAX gained 0.28% and France’s CAC 40 rose 0.55%. Sterling was 0.09% higher against the US dollar at $1.3524.

    UK gross domestic product increased 0.4% in July, exceeding expectations and extending growth recorded during the first half of the year, according to the Office for National Statistics. The economy expanded 1.6% from a year earlier, the fastest annual rate since February 2025.

    “Ongoing strength in the services sector was only partially offset by falls in both production and construction,” ONS Director of Economic Statistics Liz McKeown said, adding that artificial intelligence appeared to be supporting software development.

    Geopolitical developments remained in focus after Iran’s Revolutionary Guard Corps said its navy had struck a US “Saildrone-type” unmanned vessel in the Strait of Hormuz, claiming it had “thwarted its aggressive mission.”

    The statement followed a resolution by the International Atomic Energy Agency accusing Iran of “noncompliance” with its nuclear non-proliferation commitments and referring the issue to the UN Security Council. Iran’s UN envoy, Gholamhossein Darzi, described the accusations as “political and not technical in nature.”

    Preliminary ship-tracking data showed seven vessels transited the Strait of Hormuz on Thursday, compared with 11 a day earlier and a 10-day average of 15, according to Reuters.

    Analysts at ING said oil’s performance “reflects a market now repricing both the duration and severity of the conflict, along with a clearer recognition of the mounting threat to regional supply.” They also cited risks to Saudi energy infrastructure and Red Sea crude exports as Houthi forces target Saudi Arabia following their seizure of the Yemeni port of Mokha.

    Brent crude declined 2.12% to $105.35 a barrel, while WTI fell 1.76% to $100.69. Gold futures were down 0.38% at $4,390.25, while spot gold rose 0.76% to $4,349.24.

    UK Round-Up

    Berkeley Group (LSE:BKG) said buyer caution and UK political uncertainty were affecting housing demand while calling for changes to stamp duty and planning regulations. The housebuilder has maintained its target of £1.4 billion in pre-tax profit over four years.

    Trainline (LSE:TRN) reported first-half net ticket sales of £3.3 billion and underlying revenue of £233 million. The company reaffirmed its FY2027 guidance and announced a new £100 million share buyback programme.

  • KEFI Reviews Tulu Kapi Development Plans Following Security Incident

    KEFI Reviews Tulu Kapi Development Plans Following Security Incident

    KEFI Gold and Copper (LSE:KEFI) said all employees affected by the recent security incident at its Tulu Kapi Gold Project in Ethiopia have been accounted for, with no additional fatalities or injuries reported following the death of one colleague.

    Senior management travelled to Ethiopia following the incident and held discussions with community representatives as well as national and regional authorities. The company said those consultations included reaffirmed support for the project and its role in the local economy.

    KEFI is working with lead contractor Lycopodium and local contractors to review and refine development plans for Tulu Kapi. The company said it is taking a cautious approach to restarting activities at the site.

    Development work will resume only after the investigation into the incident has been completed and the company is satisfied that a safe operating environment is in place.

    KEFI also reported renewed and increased interest from Ethiopian institutions and family offices in providing financing through redeemable preference shares at the subsidiary level. The proposed structure would be non-dilutive at the KEFI shareholder level.

    More about KEFI Gold and Copper plc

    KEFI Gold and Copper plc is a mineral exploration and development company focused on gold and copper projects in the Arabian-Nubian Shield.

    Its portfolio includes the Tulu Kapi Gold Project in Ethiopia as well as mineral projects in Saudi Arabia.

  • Supermarket Income REIT Acquires Six UK Grocery Assets for £104 Million

    Supermarket Income REIT Acquires Six UK Grocery Assets for £104 Million

    Supermarket Income REIT plc (LSE:SUPR) has acquired six grocery-related properties in the UK for a total of £104 million, completing the deployment of proceeds from its £100 million equity raise in July 2026.

    The acquired portfolio comprises supermarkets, an M&S-anchored retail park, a Co-op store, an M&S scheme in Glasgow and a Sainsbury’s grocery distribution centre.

    The properties include triple-net leases and a combination of inflation-linked and open-market rent reviews. Several of the assets also support click-and-collect and home-delivery operations.

    The latest transaction follows the previously announced acquisition of three supermarkets for £118 million.

    Across the two transactions, Supermarket Income REIT said it has now fully deployed the £100 million of equity raised in July. The acquisitions were completed at an average net initial yield of 6.6% and have a weighted average unexpired lease term of 10 years.

    The company said the transactions are consistent with its strategy of expanding its portfolio beyond traditional UK supermarkets to include grocery distribution facilities and grocery-anchored retail properties.

    More about Supermarket Income REIT Plc

    Supermarket Income REIT plc is a FTSE 250 real estate investment trust focused on grocery properties in the UK and Europe.

    Its portfolio includes omnichannel supermarkets, grocery-anchored retail properties and distribution facilities leased to supermarket operators. The portfolio was valued at £2.1 billion as of 31 December 2025.

    The company’s shares trade on the London Stock Exchange’s Main Market and the Main Board of the JSE Limited in South Africa.

  • Berkeley Reaffirms £1.4 Billion Profit Target as Trading Remains Subdued

    Berkeley Reaffirms £1.4 Billion Profit Target as Trading Remains Subdued

    Berkeley Group Holdings (LSE:BKG) reaffirmed its target of £1.4 billion in pre-tax profit over four years, while telling shareholders at its Annual General Meeting that trading since May has been affected by the prolonged Middle East conflict and UK political uncertainty.

    The company said enquiry levels have remained stable, although prospective buyers continue to exercise caution. Berkeley is re-phasing its strategy and plans to reduce production by approximately 25% over four years, with an increased focus on cash generation.

    For the current financial year, the group expects earnings to be slightly weighted towards the first half.

    Berkeley returned £60 million to shareholders through share buybacks during the first four months of the financial year. The company said it is ahead of the required run rate for its target of returning £640 million to shareholders by 2030.

    The housebuilder expects to have approximately £250 million of net cash at the half-year point.

    Berkeley also called on the UK government to introduce targeted stamp duty reductions for first-time buyers, downsizers and investors. The company additionally advocated consistent implementation of planning reforms in London, saying these measures would support increased housing delivery.

    More about The Berkeley Group Holdings

    The Berkeley Group Holdings plc is a UK housebuilder focused primarily on residential development in London and the South East.

    The company develops private homes, build-to-rent properties and affordable housing, with a significant portion of its activities involving large-scale brownfield regeneration projects.

  • Phoenix Copper Reports $1.21 Million H1 Loss and Advances Empire Mine Study

    Phoenix Copper Reports $1.21 Million H1 Loss and Advances Empire Mine Study

    Phoenix Copper (LSE:PXC) reported an unaudited loss of $1.21 million for the six months ended 30 June 2026, while group net assets stood at $38.21 million.

    Investment in the Empire Mine and the company’s other mining assets increased to $45.84 million during the period.

    After the period end, Phoenix completed a $3.12 million equity fundraising. The company said the proceeds, together with cost reductions and disposals of non-core assets, enabled it to repay short-term debt and extend its cash runway into the fourth quarter of 2026.

    Phoenix has also awarded contracts to Hardrock Consulting to update the open-pit pre-feasibility study for its Empire Mine project.

    The existing study outlines 10.1 million tonnes of proven and probable reserves and an estimated mine life of eight years.

    The company said current copper, gold and silver prices are above the assumptions used in the 2024 study and expects the updated work to result in improved project economics. The outcome of the revised study remains subject to completion of the technical and economic assessment.

    Phoenix is continuing work on project financing alongside the pre-feasibility study update.

    More about Phoenix Copper

    Phoenix Copper is an AIM-quoted, US-focused exploration and development company targeting copper, gold and silver.

    Its principal asset is the polymetallic Empire Mine in Idaho, where the company is advancing an open-pit oxide project and associated processing facilities. Phoenix is also evaluating deeper sulphide mineralisation at the project.

  • Trainline Reports £3.3 Billion H1 Ticket Sales and Announces £100 Million Buyback

    Trainline Reports £3.3 Billion H1 Ticket Sales and Announces £100 Million Buyback

    Trainline (LSE:TRN) reported group net ticket sales of £3.3 billion for the first half of FY2027, broadly unchanged year on year, while underlying revenue declined 1% to £233 million.

    UK Consumer net ticket sales were stable at £2.1 billion. The company said trading during the period was affected by a regulated fare freeze, strike and weather-related disruption and competition from train operators’ own sales channels.

    UK Consumer underlying revenue declined 5% to £102 million, mainly reflecting changes to refund policy and previous commission reductions, partly offset by higher ancillary revenue.

    International Consumer net ticket sales fell 4% to £579 million, with Trainline citing rail accidents in Spain, lower foreign travel demand and network disruption. Underlying revenue from the segment increased 1%.

    Trainline Solutions recorded a 3% increase in net ticket sales to £548 million. International B2B sales increased 45%, while the expiry of some UK white-label contracts partly offset that growth.

    The company expects group adjusted EBITDA as a percentage of net ticket sales to be slightly above its full-year guidance of approximately 2.9%. Trainline reaffirmed its FY2027 outlook for net ticket sales, revenue and profitability and continues to expect International Consumer to reach breakeven.

    Trainline also announced a new £100 million share buyback programme, which will begin after completion of its existing programme. The company said this will bring total share repurchases since 2023 to £350 million, with its share count reduced by approximately 28% over that period.

    The group is also engaging with the competition regulator regarding an investigation into its presentation of fees.

    More about Trainline

    Trainline plc operates a digital rail and coach travel platform through its website and mobile application, providing access to routes, fares and journey information from carriers across Europe.

    The company operates consumer businesses in the UK and international markets as well as its B2B Trainline Solutions division. Its services also include digital railcards, insurance, advertising and other ancillary products.

  • LPA Group Raises FY26 Earnings Outlook Following Higher Revenue

    LPA Group Raises FY26 Earnings Outlook Following Higher Revenue

    LPA Group plc (LSE:LPA) said trading in its current financial year has resulted in revenue growth ahead of its previous expectations, prompting the engineering group to raise its earnings outlook.

    For the financial year ending 30 September 2026, LPA now expects adjusted earnings to exceed current market forecasts.

    The company said reported profit before tax will also benefit from exceptional income arising from an accelerated contract payment following a change in customer requirements.

    LPA left its guidance for FY27 unchanged. The company also reported a pipeline of potential business and continued progress with its “One LPA” integration initiative.

    Management acknowledged inflation and broader macroeconomic uncertainty while noting the group’s current balance-sheet position.

    More about LPA Group plc

    LPA Group plc is an AIM-quoted engineering company that designs and manufactures electronic and electro-mechanical components and systems for the rail, aviation, defence, infrastructure and industrial markets.

    The group operates four UK sites covering electro-mechanical systems in Saffron Walden, rail power supplies in Knapwell, LED lighting and electronic systems in Normanton, and engineered component distribution in Newbury.

    LPA supplies customers in the UK and overseas, with its products designed for use in demanding operating environments.