ADVFN UK Market News

Author: Fiona Craig

  • Shortened Trading Week Brings Key Data, Earnings and Renewed U.S.–Iran Dialogue Into Focus: Dow Jones, S&P, Nasdaq, Wall Street Futures

    Shortened Trading Week Brings Key Data, Earnings and Renewed U.S.–Iran Dialogue Into Focus: Dow Jones, S&P, Nasdaq, Wall Street Futures

    Investors are entering a holiday-shortened week that nonetheless features important economic releases and major corporate earnings. Oil markets remain steady as Washington and Tehran prepare for another round of nuclear negotiations in Switzerland. Meanwhile, Warner Bros. Discovery is reportedly reassessing takeover discussions, while gold and Bitcoin are trading lower.

    U.S. markets closed to start the week

    Wall Street is shut on Monday for a public holiday, but attention will quickly shift to a busy calendar of data and earnings in the days ahead.

    On Friday, U.S. equity benchmarks ended mixed. Markets reacted to January inflation data showing price pressures easing more than anticipated, increasing speculation that the Federal Reserve could move up its next rate cut to June. Earlier in the week, however, a strong labor market report had suggested that policymakers — who reduced borrowing costs multiple times in 2025 — might delay further easing until later in the year.

    The Nasdaq Composite continued to face headwinds, as investors remain wary of how emerging artificial intelligence models could disrupt the technology and communications sectors. Questions surrounding intensifying competition and the timeline for returns on heavy AI-related capital spending weighed on sentiment across major indices last week.

    Focus now turns to Friday’s release of the December personal consumption expenditures (PCE) price index, the Fed’s preferred inflation gauge. An advance estimate of fourth-quarter U.S. GDP is also due the same day.

    Corporate earnings remain a key driver this week, with reports expected from Walmart Inc. (NYSE:WMT), Palo Alto Networks (NASDAQ:PANW), Analog Devices (NASDAQ:ADI) and Booking Holdings (NASDAQ:BKNG).

    U.S.–Iran nuclear discussions resume

    The United States and Iran are set to meet again in Switzerland for a second round of talks aimed at addressing Tehran’s nuclear program, after dialogue resumed earlier this month.

    The renewed negotiations come amid ongoing tensions. Washington has reinforced its military presence in the Middle East and signaled readiness to escalate pressure if diplomacy fails. President Donald Trump has repeatedly warned Tehran that it must agree to a deal or risk further military consequences.

    Iranian officials said over the weekend that they are prepared to consider compromises on their nuclear activities in exchange for relief from U.S. sanctions, adding that the next step lies with Washington.

    “[T]here is still a large risk premium priced into the market given the uncertainty over how the situation between the U.S. and Iran evolves,” analysts at ING said in a note.

    Oil prices were largely steady in European trading, with thin volumes due to market holidays in both China and the United States. Weak economic growth data out of Japan also added to concerns about global demand. Brent crude for April delivery hovered near $67.72 per barrel.

    Warner Bros. weighs fresh takeover talks – report

    In corporate news, reports suggest new developments in the takeover saga involving Warner Bros. Discovery (NASDAQ:WBD).

    Bloomberg reported that Warner Bros. is considering reopening negotiations with Paramount Skydance (NASDAQ:PSKY) after David Ellison’s group enhanced its hostile offer. Board members are reportedly assessing whether Paramount’s proposal could be more attractive than a competing bid from Netflix Inc. (NASDAQ:NFLX).

    Last week, Paramount pledged to increase the cash component offered to Warner Bros. shareholders for every quarter that a deal remains unresolved in 2026 and to cover any penalties associated with terminating Warner’s current agreement with Netflix. However, the base offer of $30 per share remains unchanged.

    Gold retreats as dollar steadies

    Gold prices moved lower in European trading as the U.S. dollar stabilized following recent inflation data. Precious metals have experienced sharp swings over the past two weeks and remain below late-January highs.

    Spot gold fell to around $4,998.69 per ounce, while April futures declined to roughly $5,018.69. Although safe-haven demand has been supported by geopolitical tensions, stronger dollar moves have limited gains.

    Bitcoin extends its slide

    Bitcoin (COIN:BTCUSD) continued to decline, marking a fourth consecutive week of significant losses across the cryptocurrency market.

    The digital asset pulled back toward $68,624 after briefly surpassing $70,000 over the weekend. Bitcoin has now lost roughly half its value since reaching a record high near $126,000 in October.

    Meanwhile, Strategy (NASDAQ:MSTR), the largest corporate holder of Bitcoin, said it would remain able to meet its debt obligations even if the cryptocurrency fell to $8,000. The company stated on social media that it can “withstand a drawdown in $BTC price to $8K and still have sufficient assets to fully cover our debt.”

    Strategy currently holds 714,644 Bitcoin, financed through a combination of equity issuance and long-term debt.

  • European equities tick up as earnings optimism offsets holiday-thinned trade; miners in focus: DAX, CAC, FTSE100

    European equities tick up as earnings optimism offsets holiday-thinned trade; miners in focus: DAX, CAC, FTSE100

    European markets started the week slightly firmer on Monday, buoyed by a generally constructive earnings season, though trading volumes were muted due to holidays in both Asia and the United States.

    At around 08:02 GMT, Germany’s DAX advanced 0.4%, France’s CAC 40 added 0.2%, and the U.K.’s FTSE 100 rose 0.2%.

    Earnings momentum supports markets

    Activity was subdued, with much of Asia closed for Lunar New Year celebrations and U.S. markets shut for George Washington’s birthday. Even so, investor sentiment across Europe remained broadly upbeat as corporate earnings continue to exceed expectations against a gradually stabilising economic backdrop.

    According to LSEG data, companies accounting for 57% of Europe’s total market capitalisation have reported results so far. Fourth-quarter earnings growth is averaging 3.9%, outperforming earlier forecasts that had pointed to a 1.1% contraction. Around 60% of companies have surpassed analyst estimates, compared with a typical beat rate of 54%.

    While Monday’s earnings calendar is relatively light, attention this week will turn to Europe’s major mining groups — Rio Tinto (LSE:RIO), Glencore (LSE:GLEN), Anglo American plc (LSE:AAL) and Antofagasta plc (LSE:ANTO) — as they release results amid elevated metals prices.

    Automaker Volkswagen AG (TG:VOW3) is also likely to draw scrutiny after Manager Magazin reported that the group plans to reduce costs by 20% across its brands by the end of 2028.

    Across the Atlantic, the earnings spotlight will fall on Walmart Inc. (NASDAQ:WMT), which is set to publish quarterly results on Thursday. Investors will be watching closely for signals on U.S. consumer demand.

    Economic data in focus

    On the macro front, Eurozone industrial production figures for December are due later Monday, with economists expecting a 1.5% month-on-month decline.

    In the U.K., asking prices for newly listed homes were broadly flat in February, dipping by just £12 to an average of £368,019 after a 2.8% rise in January, according to property portal Rightmove.

    Earlier in Asia, Japan’s latest GDP reading disappointed. The economy expanded at an annualised pace of just 0.2% in the fourth quarter, well below expectations of 1.6%. The data showed only a modest recovery following a sharp contraction in the third quarter, potentially strengthening the case for further fiscal support under Prime Minister Sanae Takaichi.

    Oil steady ahead of U.S.–Iran talks

    Crude prices were little changed in quiet holiday trade, as markets awaited further diplomatic engagement between Washington and Tehran.

    Brent crude futures slipped 0.1% to $67.66 per barrel, while U.S. West Texas Intermediate futures edged down 0.1% to $62.68 per barrel.

    Both benchmarks had declined between 0.5% and 1% last week after U.S. President Donald Trump suggested that a potential agreement with Iran could be reached within a month, weighing on prices.

    A second round of U.S.–Iran discussions is scheduled for Tuesday in Geneva, following renewed talks earlier this month aimed at resolving long-standing tensions over Iran’s nuclear programme.

  • Physiomics posts 51% first-half revenue jump and unveils new Biometrics offering

    Physiomics posts 51% first-half revenue jump and unveils new Biometrics offering

    Physiomics plc (LSE:PYC) reported a 51% increase in revenue for the first half of its financial year, with income rising to £498,000 — the strongest half-year performance in the company’s history.

    Despite the top-line growth, the group recorded an operating loss of £327,000, wider than the prior year. Management attributed the increased loss to investment in new hires and higher spending on external contractors during the period.

    Total operating costs for the six months reached £855,000, while net income came in at negative £301,000.

    A notable milestone in the half was the launch of Physiomics’ new Biometrics service line. The division has already secured four initial contracts, providing an early contribution to revenue and supporting broader growth across the business.

    For the full fiscal year, the company expects total income to rise by 27% year-on-year. Physiomics also forecasts lower operating expenses in the second half as reliance on external consultants declines.

    Management highlighted additional expansion potential from the Biometrics unit and cited a robust pipeline of prospective contracts that could underpin future revenue growth.

  • Barratt Redrow slips after Deutsche Bank trims forecasts and price target

    Barratt Redrow slips after Deutsche Bank trims forecasts and price target

    Barratt Redrow plc (LSE:BTRW) shares dropped more than 2% on Monday after Deutsche Bank lowered its earnings projections and reduced its price target by 15%, pointing to weaker trading momentum and rising fire-safety remediation costs.

    Analyst Chris Millington cut the target to 454p from 536p, while retaining a “buy” recommendation on the stock, which last closed at 388.90p.

    Deutsche Bank reduced its underlying pre-tax profit forecasts by 9% for fiscal 2026, 6% for FY27 and 7% for FY28. The revisions followed Barratt’s first-half results, which Millington said were largely in line with expectations but underscored the impact of difficult market conditions.

    According to the broker, subdued demand in the first half weighed on both profit margins and the forward order book. In addition, Barratt’s £1.3 billion provision balance remains a key drag on valuation. Deutsche Bank said this level of provisioning is likely to constrain cash generation, even as management pursues outlet growth and margin recovery initiatives.

    Reflecting these pressures, the brokerage lifted its discount rate assumption from 8% to 10%, aligning it with longer-term historical averages and better accounting for the financial impact of ongoing fire-safety remediation work.

    Despite near-term challenges, Deutsche Bank expects Barratt to deliver above-average profit growth over the coming years, supported by plans to expand outlets and rebuild margins. The bank forecasts a FY28 return on tangible equity of 8.5%, suggesting the current valuation of 0.79 times price-to-net tangible assets is broadly justified.

    Even so, Millington argued the shares could warrant a higher multiple if market conditions improve, particularly if aided by potential government measures to stimulate housing demand.

    The revised 454p price target is based on Deutsche Bank’s estimate of the company’s net tangible asset value for calendar year 2026.

  • TRIG NAV falls on weaker power price outlook and higher offshore wind discount rates; shares slip

    TRIG NAV falls on weaker power price outlook and higher offshore wind discount rates; shares slip

    The Renewables Infrastructure Group (LSE:TRIG) posted a larger-than-anticipated quarterly decline in net asset value, as softer power price assumptions and higher discount rates for UK offshore wind assets weighed on valuations, pushing the stock 2% lower on Monday.

    The renewable energy investment trust reported that NAV decreased 5.2% to 104 pence per share in the fourth quarter, down 5.7 pence from 109.7 pence at the end of September. The move translated into a negative total NAV return of 3.7% for full-year 2025.

    Management attributed the decline primarily to a 1.8 pence per share reduction linked to lower consultant power price forecast curves, alongside a 1.2 pence impact from a 50 basis point rise in discount rates applied to UK offshore wind projects. A further 1.8 pence per share drag stemmed from generation coming in below budget and operational challenges.

    An additional 0.6 pence per share reduction reflected changes to indexation of UK Renewables Obligation Certificates (ROCs), which will now be tied to the Consumer Price Index rather than the previous benchmark.

    Electricity generation was 5% below budget during the fourth quarter, largely due to economic and grid curtailment in Sweden. However, this marked an improvement compared with the first half of 2025, when output fell 10% short of plan. Sweden accounts for roughly 14% of TRIG’s portfolio by NAV and has persistently underperformed expectations, analysts said.

    “While generation missed budget by 5% in Q4, this is an improvement versus the performance earlier in the year,” said Joseph Pepper, analyst at RBC Capital Markets, which maintains an “outperform” rating on the stock with a 90 pence price target.

    “We think management’s target future cover of 1.1-1.2x looks credible given inflation-linked cash flows and an improving debt amortisation profile, although we note that Sweden remains a consistently underperforming geography in the portfolio.”

    TRIG reiterated its dividend target for fiscal 2026 at 7.55 pence per share, unchanged year-on-year. Net dividend cover for fiscal 2025 was reported at 1.0 times. On a gross basis, excluding annual amortising debt repayments, dividend cover stood at 2.1 times. Management continues to guide toward net dividend cover of 1.1 to 1.2 times over the medium term.

    The company had previously cautioned that dividend cover would be “tight” for fiscal 2025.

    Shares closed Friday at 69.20 pence, implying a discount of about 34% to the newly reported NAV, broadly aligned with the peer group average discount of around 35%.

    “Given the quantum of the quarterly movement this morning we would expect shares to trade lower today,” Pepper said.

    TRIG’s portfolio includes approximately 90 renewable energy assets across six countries, with about half of its exposure in the UK, leaving it sensitive to domestic regulatory developments and wholesale power price trends. The trust primarily invests in operational wind and solar projects, with UK offshore wind forming a substantial component of its holdings.

  • ITM Power confirms 20MW hydrogen contract following client investment decision

    ITM Power confirms 20MW hydrogen contract following client investment decision

    ITM Power plc (LSE:ITM) has received a formal Notice to Proceed on a 20MW green hydrogen project after the customer reached a final investment decision, converting a previously announced award into a binding contract.

    The project will now be included in ITM’s contracted order backlog, enabling full-scale execution to commence. Management said the development further strengthens the group’s credentials in delivering industrial-scale proton exchange membrane (PEM) electrolyser systems. Additional details about the scheme are expected to be released toward the end of the first quarter of 2026.

    While the contract win underscores continued commercial traction in the green hydrogen sector, the company’s broader outlook remains challenged by persistent losses and negative operating and free cash flow. Technical indicators also reflect a bearish trend, with the share price trading below key long-term moving averages.

    However, these pressures are partially offset by signs of operational progress highlighted in recent earnings updates, including record first-half revenue, improved order backlog quality and reiterated growth guidance. ITM also maintains a relatively low-leverage balance sheet, although near-term profitability and cash flow timing risks continue to weigh on investor sentiment.

    More about ITM Power

    ITM Power plc is a Sheffield-based manufacturer of proton exchange membrane electrolysers used to produce green hydrogen from renewable electricity and water. Founded in 2000 and listed on AIM since 2004, the company focuses on large-scale hydrogen systems designed to support industrial decarbonisation and the transition to net zero energy systems.

  • SkinBioTherapeutics investigates former CEO as FY25 royalties reversed

    SkinBioTherapeutics investigates former CEO as FY25 royalties reversed

    SkinBioTherapeutics plc (LSE:SBTX) has identified potential misrepresentation by its former chief executive that calls into question £0.77 million of accrued royalty income previously recognised in its FY25 audited accounts.

    As a result, the company now intends to remove the disputed royalty income, reducing reported FY25 revenue to £3.87 million and increasing adjusted EBITDA losses to £1.17 million. The board has initiated a wider review of financial reporting processes and warned that FY26 performance is expected to fall materially short of market expectations.

    Despite the setback, management emphasised that core commercial relationships and operating divisions — including Dermatonics and Bio-Tech Solutions — remain intact. Sales of its AxisBiotix™ product line continue, and the company reported cash balances of £2.92 million as of 13 February 2026. Governance changes are under way, with the chairman assuming temporary executive responsibilities while the company searches for an interim and subsequently permanent CEO.

    From an investment standpoint, the outlook is weighed down by financial pressures. Although revenue growth has been strong, recurring losses and negative operating and free cash flow represent ongoing risks. Technical indicators remain weak, with the share price in a broader downtrend below key moving averages and MACD in negative territory. Valuation metrics offer limited reassurance given a negative price-to-earnings ratio and no dividend yield.

    More about SkinBioTherapeutics

    SkinBioTherapeutics plc is a UK-based life sciences company focused on skin health applications derived from its proprietary SkinBiotix® microbiome platform, developed in collaboration with the University of Manchester. The group operates across cosmetic skincare and gut-skin axis supplements under the AxisBiotix™ brand, supported by commercial partnerships and acquisitions in adjacent skincare and cosmetic markets.

  • Pantheon Resources reshapes board as work advances at Kodiak, Alaska

    Pantheon Resources reshapes board as work advances at Kodiak, Alaska

    Pantheon Resources plc (LSE:PANR) has detailed plans for its 12 March virtual AGM, to be followed by a public investor webinar, while confirming changes to its board structure as it transitions toward development-focused execution.

    Executive Chair David Hobbs will move into a non-executive position, and director Allegra Hosford Scheirer will step down. The governance adjustments reflect a strategic pivot from exploration-led oversight to an emphasis on engineering delivery as the company progresses its North Slope development programme.

    On the operational front, Pantheon has commenced seismic reprocessing over the north-western section of its Kodiak project, located updip from the Theta West-1 discovery. The company is also preparing for a potential Theta West-2 appraisal well, subject to securing funding and the necessary permits. In parallel, Pantheon plans to present its portfolio at the NAPE 2026 expo as it seeks to attract strategic partners and capital to support advancement of its Alaskan assets.

    From an investment standpoint, the outlook remains pressured by ongoing financial challenges, including recurring losses and negative free cash flow. Technical indicators are also weak, with the share price trading well below key moving averages. Valuation support is limited, as a negative price-to-earnings ratio reflects unprofitable operations and no dividend yield is currently available.

    More about Pantheon Resources

    Pantheon Resources plc is an AIM-listed oil and gas company focused on developing its wholly owned Ahpun and Kodiak fields on Alaska’s North Slope, close to established infrastructure including roads, pipelines and the Trans Alaska Pipeline System. The company is targeting monetisation of independently certified contingent resources of approximately 1.6 billion barrels of oil and 6.6 trillion cubic feet of associated gas, with plans to reach a final investment decision and first production at Ahpun before advancing Kodiak.

  • Altona Rare Earths delivers high-grade fluorspar and gallium results at Monte Muambe

    Altona Rare Earths delivers high-grade fluorspar and gallium results at Monte Muambe

    Altona Rare Earths plc (LSE:REE) has released initial assay results from its 2025 drilling programme at the Monte Muambe project in Mozambique, with roughly 10% of samples analysed to date.

    Data received from diamond drill holes across the Fluorite and Python zones confirm near-surface mineralisation consistent with potential open-pit extraction. Early intercepts include peak grades of 82.76% CaF₂ and 409 g/t Ga₂O₃, while the weighted average fluorspar grade stands at 31% CaF₂ — broadly aligned with commercial mining benchmarks and company expectations.

    Further assay results are expected in the coming weeks and will feed into a maiden mineral resource estimate for fluorspar and gallium. Management said the strong early data, alongside encouraging engagement with investors at Mining Indaba, reinforces the project’s development potential and strategic importance.

    Monte Muambe already hosts a JORC-compliant rare earths resource and benefits from a 25-year mining licence. The asset forms the core of Altona’s strategy to fast-track annual production of 50,000 tonnes of acid-grade fluorspar over a projected mine life of at least 12 years, while also evaluating gallium recovery from processing tailings. The company believes the project positions it to supply critical raw materials into sectors such as batteries, nuclear energy and advanced technologies, strengthening its exposure to Africa’s evolving critical minerals value chain.

    Despite the operational progress, the investment case remains constrained by weak financial fundamentals, including the absence of revenue, ongoing losses, persistent cash burn and rising leverage alongside declining equity. Technical indicators provide some counterbalance, with the shares exhibiting a strong upward trend and positive momentum signals. However, valuation metrics remain limited in usefulness due to negative earnings and the lack of dividend support.

    More about Altona Rare Earths

    Altona Rare Earths plc is a London Main Market-listed exploration and development company focused on critical raw materials projects across Africa. Its flagship Monte Muambe project in Mozambique hosts rare earths, fluorspar and gallium mineralisation under a 25-year mining licence, with near-term fluorspar production targeted alongside longer-term rare earths development.

    The group is also advancing the Sesana copper-silver project in Botswana as part of a diversified portfolio aimed at supplying materials to clean energy, high-technology, defence and industrial markets.

  • Prospex Energy resumes generation at El Romeral gas-to-power facility

    Prospex Energy resumes generation at El Romeral gas-to-power facility

    Prospex Energy plc (LSE:PXEN) has restarted electricity production at its El Romeral gas-to-power plant in Andalucía, Spain, via its wholly owned subsidiary Tarba Energía.

    Operations recommenced following the installation and commissioning of a temporary rental transformer, which will remain operational until a newly manufactured transformer from Spain is delivered and installed. The move restores the plant’s ability to export power to the grid and resume revenue generation from electricity sales.

    With production back online, Tarba can adjust output in response to prevailing Spanish power market dynamics, optimising pricing and operational performance. Recently appointed CEO Tom Reynolds is also focusing on regulatory engagement to secure permits for a proposed well programme at Romeral, aiming to unlock additional gas supply and support further asset development.

    Despite the operational progress, the company’s broader outlook remains constrained by weak financial fundamentals, including ongoing operating losses and sustained negative operating and free cash flow over multiple years. Although leverage is relatively low, technical indicators remain unfavourable, with the share price trading below key moving averages and a negative MACD reading. Valuation metrics are also under pressure, reflecting a very high price-to-earnings ratio and no reported dividend yield.

    More about Prospex Energy

    Prospex Energy is an AIM-quoted investment company focused on European gas and power projects, targeting onshore and shallow offshore opportunities with relatively short paths to production. The company’s strategy centres on acquiring undervalued assets, increasing gas output to generate internal cash flow, and reinvesting proceeds to expand its production portfolio.