Category: Market News

Genedrive PLC (LSE:GDR) has launched a “test of change” pilot programme within NHS Grampian and NHS Western Isles to assess the use of its CYP2C19 ID Kit in the treatment of stroke patients across remote and rural communities. The initiative, supported by Scotland’s Centre for Sustainable Delivery, will examine how rapid, point-of-care genetic testing can influence treatment decisions and clinical outcomes in time-critical care settings.

The pilot is intended to demonstrate whether fast pharmacogenetic insights can support more precise prescribing for stroke patients, with positive results potentially enabling broader adoption across Scotland’s NHS network. The programme reinforces Genedrive’s position in the growing field of pharmacogenetic diagnostics and reflects its focus on improving access to advanced healthcare solutions in underserved regions.

From a financial perspective, the company continues to face profitability headwinds despite delivering strong revenue growth and maintaining a robust balance sheet. Market indicators remain cautious, with technical analysis pointing to bearish sentiment and valuation metrics constrained by the absence of sustained profits. Nonetheless, recent operational and clinical milestones are viewed as constructive steps that could strengthen Genedrive’s long-term market positioning.

More about Genedrive

Genedrive PLC is a UK-based diagnostics company specialising in rapid, point-of-care pharmacogenetic testing. Its portfolio includes disposable genetic test kits such as the Genedrive MT-RNR1 ID Kit and the Genedrive CYP2C19 ID Kit, designed to support clinicians in making informed treatment decisions in emergency and time-sensitive environments. The company’s technologies have received recognition within the UK NHS, with a strategic focus on personalised medicine and improved patient outcomes.

First Development Resources Plc (LSE:FDR) has provided an update on ongoing exploration activity at its Selta Project in Australia’s Northern Territory, outlining the next phase of technical work aimed at sharpening gold and rare-earth targets.

The company plans to carry out a high-resolution aeromagnetic and radiometric geophysical survey in early January 2026. The programme is designed to improve structural interpretation across the project area and refine drill targets, with particular focus on the Lander West Gold Target. In parallel, First Development Resources has completed an initial rare-earth element sampling campaign across two areas identified as prospective, with collected samples now submitted for laboratory analysis.

Management said the combined geophysical and geochemical work is intended to systematically progress exploration at Selta, strengthening target definition while maintaining a disciplined, cost-efficient approach to exploration. The results are expected to guide future drilling and field activities as the company continues to assess the project’s mineral potential.

More about First Development Resources Plc

First Development Resources Plc is a UK-based mineral exploration company with projects located in Western Australia and the Northern Territory. The group is focused on exploring for gold and rare-earth elements, targeting geologically favourable regions with the potential to support significant mineral discoveries.

Chesterfield Special Cylinders Holdings plc (LSE:CSC) reported a marked improvement in its financial performance for FY25, with revenue rising 12% year on year to £16.6 million and a return to profitability at the Adjusted EBITDA level, generating £0.8 million. The results reflect a recovery from a difficult FY24 and highlight strengthening momentum across the group’s core operations.

Operational performance was underpinned by record contributions from hydrogen-related activities and Integrity Management services, alongside strong demand from overseas defence customers. The disposal of the PMC division also played a key role in reinforcing the balance sheet, improving financial flexibility and positioning the group for future expansion.

Looking ahead, management expects FY26 to benefit from continued growth opportunities in hydrogen energy infrastructure and global defence programmes. While the broader outlook acknowledges ongoing financial pressures, including historical revenue volatility and net losses, progress in debt reduction and cash flow management represents a step in the right direction. However, technical indicators remain cautious, and the absence of clear valuation benchmarks continues to weigh on investor confidence.

Overall, the group enters the new financial year with improved operational footing, stronger market positioning, and a clearer strategic focus on high-growth, safety-critical sectors.

More about Pressure Technologies

Chesterfield Special Cylinders Holdings plc is a specialist engineering group focused on the design and manufacture of high-pressure gas storage and transportation systems. Its products and services serve safety-critical industries, including defence and hydrogen energy, and are supported by lifecycle offerings such as inspection, testing, and recertification.

U.S. stock index futures are indicating a slightly higher start to Wednesday’s session, pointing to potential gains after markets ended the previous day with mixed results.

Energy shares are expected to be among the early leaders, as crude oil prices have staged a strong recovery from their lowest levels since early 2021. The rebound follows President Donald Trump’s decision to impose a blockade on sanctioned oil tankers operating to and from Venezuela.

In a post on Truth Social, Trump described the government of President Nicolas Maduro as a foreign terrorist organization and announced a “total and complete blockade of all sanctioned oil tankers” entering and leaving Venezuela.

Despite the positive signal from energy markets, overall trading volumes could remain subdued, with investors reluctant to take large positions ahead of Thursday’s release of the highly anticipated U.S. consumer price inflation report.

The November inflation data from the Labor Department is expected to play a key role in shaping expectations for future Federal Reserve interest rate decisions.

Markets struggled for direction on Tuesday, extending the choppy trading pattern seen earlier in the week. Major indexes moved back and forth throughout the session before closing with mixed outcomes.

The Nasdaq Composite rose by 54.05 points, or 0.2%, finishing at 23,111.46. In contrast, the S&P 500 slipped 16.25 points, or 0.2%, to 6,800.26, while the Dow Jones Industrial Average fell 302.30 points, or 0.6%, to 48,114.26.

The uneven performance followed the release of November employment figures from the Labor Department. Although the data showed stronger-than-expected job creation, it came after a sharp decline in employment during October.

Nonfarm payrolls increased by 64,000 in November, reversing part of the 105,000-job drop recorded in October. Economists had anticipated an increase of around 50,000 jobs.

At the same time, the unemployment rate climbed to 4.6% in November from 4.4% in September, exceeding forecasts of 4.5%. This marked the highest unemployment reading since September 2021, when the rate reached 4.7%.

Many economists believe the data strengthens the case for continued interest rate cuts by the Federal Reserve in the near term, while also raising concerns about the broader economic outlook.

“Although the market generally cheers rate cuts, if the Fed is forced to cut rates more aggressively next year because we are headed into a recession, the stock market will drop instead,” said Chris Zaccarelli, Chief Investment Officer for Northlight Asset Management.

Additional economic data from the Commerce Department showed U.S. retail sales were largely flat in October.

Retail sales were essentially unchanged in October after a downwardly revised 0.1% increase in September. Economists had expected a 0.2% gain.

Excluding automobiles, however, retail sales rose by 0.4% in October following a 0.1% increase the previous month, beating expectations for a 0.3% rise.

Sector performance was mixed during Tuesday’s session. Energy stocks suffered sharp losses earlier in the day as crude prices plunged to their lowest levels since early 2021, with the Philadelphia Oil Service Index dropping 4.2% and the NYSE Arca Oil Index falling 3.6%.

Pharmaceutical, healthcare and networking stocks also posted notable declines, while computer hardware shares managed to claw back some recent losses.

European equity markets are showing mixed movements on Wednesday as investors await a series of key central bank policy decisions scheduled for later this week. Announcements are due from the European Central Bank, the Bank of England, Sweden’s Riksbank and Norway’s Norges Bank.

Market sentiment received a boost from fresh data indicating that inflation in the UK cooled more sharply than anticipated in November. According to figures released by the Office for National Statistics, consumer prices rose 3.2% year-on-year, down from 3.6% in October and below the consensus forecast of 3.5%.

Underlying inflation also eased, with the core consumer price index—excluding energy, food, alcohol and tobacco—slowing to 3.2% from 3.4% in the prior month.

Equity performance across the region has diverged. The UK’s FTSE 100 is up around 1.6%, while Germany’s DAX has slipped 0.2% and France’s CAC 40 is down 0.3%.

Sterling weakened against the US dollar following the softer inflation figures, as traders adjusted expectations around future interest rate policy.

At the stock level, shares in Proximus (EU:PROX) moved sharply lower after the digital services and telecommunications group announced that Chief Financial Officer Mark Reid will step down at the end of January 2026 to pursue other opportunities in the UK.

Elsewhere, distribution and services group Bunzl (LSE:BNZL) came under pressure after reaffirming its guidance for adjusted operating profit in 2025.

In contrast, outsourcing specialist Serco Group (LSE:SRP) rallied strongly after issuing profit forecasts for this year and next that exceeded analyst expectations.

U.S. equity futures are trading in a narrow range as investors continue to evaluate the implications of recently released employment data. Attention is increasingly focused on Federal Reserve Governor Christopher Waller, who is set to deliver his first public comments since the central bank cut interest rates last week. In company news, shares of homebuilder Lennar (NYSE:LEN) fell in after-hours trading following disappointing quarterly earnings, while anticipation builds ahead of results from semiconductor manufacturer Micron Technology (NASDAQ:MU), which may provide one of the final indications this year of conditions in the artificial intelligence sector. Separately, media reports suggest that Warner Bros Discovery (NASDAQ:WBD) is preparing to advise shareholders to turn down a takeover proposal from Paramount Skydance, favoring an alternative offer from Netflix (NASDAQ:NFLX).

Futures show little movement

U.S. stock index futures were largely unchanged early Wednesday as market participants digested mixed labor market data from the previous session and looked ahead to key inflation readings later in the week.

As of 02:52 ET, futures on the Dow Jones Industrial Average were broadly flat, S&P 500 futures were up 6 points, or 0.1%, and Nasdaq 100 futures had edged higher by 27 points, also gaining 0.1%.

In Tuesday’s regular trading, the Dow Jones Industrial Average fell 0.6%, the S&P 500 declined 0.2%, while the technology-heavy Nasdaq Composite added 0.2%.

Investors continued to analyze delayed employment figures indicating that the U.S. economy created more jobs than expected in November, even as the unemployment rate rose faster than forecast. The mixed data reignited concerns about the potential economic impact of President Donald Trump’s sweeping tariff policies.

Following the release, markets began pricing in at least 58 basis points of interest rate cuts by the Federal Reserve next year, well above the 25 basis points previously projected by the central bank.

Focus on Waller’s speech

One of the key events on Wednesday’s agenda is a scheduled address by Federal Reserve Governor Christopher Waller at 08:15 ET.

The remarks will be his first since signaling a shift from a dovish to a more neutral stance following the December rate reduction. Last week, the Fed implemented a 25-basis-point cut, citing a desire to support a weakening labor market despite continued signs of sticky inflation.

“It will be interesting to hear an update on [Waller’s] view,” analysts at Vital Knowledge said in a note to clients.

Waller’s comments come amid a Wall Street Journal report suggesting that President Trump is planning to interview him as a potential successor to Federal Reserve Chair Jerome Powell, whose term expires in May. Trump has previously indicated that former Fed Governor Kevin Warsh and White House economic adviser Kevin Hassett are among his preferred candidates.

Although Waller has emerged this year as a prominent advocate of rate cuts and is reportedly viewed favorably by Wall Street, the Journal noted that he may be considered less likely to secure the role due to weaker personal ties with Trump compared with Warsh or Hassett.

Lennar misses expectations; Micron earnings ahead

Shares of Lennar declined in extended trading after the U.S. homebuilder reported fourth-quarter profit that fell short of analyst expectations, as higher costs continued to weigh on housing demand.

Lennar Co-CEO Stuart Miller said consumer confidence remains subdued due to affordability concerns, which have more than offset the benefit of lower interest rates. He also warned that margins could face pressure from sales incentives such as mortgage rate buydowns.

Still, Miller added that the company is adapting to “a new normal as the market finds it footing.” Lennar posted fourth-quarter earnings of $1.93 per share, missing estimates of $2.22 per share, while revenue of $9.37 billion exceeded forecasts, according to LSEG data cited by Reuters.

Later on Wednesday, Micron Technology is scheduled to report earnings after the market close. Sentiment around the artificial intelligence sector weakened last week following underwhelming results from Oracle and Broadcom, raising fresh questions about the sustainability of heavy investment in the technology.

Despite this, expectations around Micron remain strong. The outlook is described as “extremely bullish,” with many anticipating a multi-year growth cycle driven by demand for the company’s high-bandwidth memory products, which are used in advanced AI processors, according to analysts at Vital Knowledge.

Micron shares have surged more than 176% so far this year, largely due to its role as a key supplier of high-bandwidth memory for several of Nvidia’s AI-focused chips.

Warner Bros board decision pending

According to media reports, Warner Bros Discovery’s board may announce a decision as soon as Wednesday regarding Paramount Skydance’s $108.4 billion hostile takeover bid.

People familiar with the matter say the board is preparing to recommend that shareholders reject Paramount’s proposal and instead back an existing deal with Netflix.

Earlier this month, Netflix appeared to win a bidding contest against Paramount and Comcast by agreeing to acquire Warner Bros’ studios and the HBO Max streaming service for $27.75 per share in a mix of cash and stock. Days later, Paramount returned with an all-cash offer of $30 per share for the entire company.

If Warner Bros’ board advises investors to vote against the bid, Paramount and its CEO, David Ellison, may be forced to reconsider or enhance their proposal for the owner of major entertainment franchises such as “Game of Thrones” and “Friends.”

Oil prices jump after Venezuela action

Crude oil prices surged after President Trump ordered a total blockade of all sanctioned oil tankers entering and leaving Venezuela, raising concerns about potential disruptions to global supply.

Brent crude futures climbed 1.4% to $59.73 per barrel, while U.S. West Texas Intermediate futures rose 1.5% to $55.94 per barrel.

Both benchmarks had fallen to five-year lows in the previous session after U.S. officials pointed to some progress in Russia-Ukraine peace talks, adding to worries about a supply glut in the year ahead.

“Venezuela exported around 600k b/d of oil in November. It’s likely that these volumes will fall given the latest developments. The bulk of this oil is shipped to China,” ING analysts said in a note.

European equity markets traded modestly higher on Wednesday as investors positioned themselves ahead of a busy schedule of central bank policy announcements, with softer inflation data providing particular support to UK stocks.

By 08:05 GMT, Germany’s DAX had gained 0.2%, France’s CAC 40 was up 0.2%, and the UK’s FTSE 100 outperformed with a rise of 0.8%.

Focus shifts to central bank meetings

Market attention this week is firmly centred on upcoming monetary policy decisions across Europe, as investors look for clarity on the direction of interest rates heading into the new year.

The European Central Bank is widely expected to keep its key interest rate unchanged at 2% when it meets on Thursday. Recent economic indicators suggest the eurozone economy has shown greater resilience than initially anticipated.

Despite pressure from U.S. President Donald Trump’s aggressive trade stance, the 20-country euro area has managed to absorb some of the impact of higher U.S. tariffs, partially offsetting weaker export performance. However, momentum has softened toward year-end, with manufacturing activity contracting further and growth in the services sector losing pace.

Later in the session, November eurozone CPI data is due for release, though it is not expected to materially affect ECB policy decisions.

Meanwhile, Sweden’s Riksbank and Norway’s Norges Bank are also set to announce their final policy decisions of 2025 this week. In the UK, inflation data published earlier in the day is likely to influence the Bank of England’s next move.

Annual UK consumer price inflation slowed to 3.2% in November from 3.6% in October, marking its lowest level in eight months. On a monthly basis, prices declined by 0.2%. The BoE narrowly voted 5–4 to keep rates unchanged last month, but easing inflation could increase the likelihood of a rate cut to 3.75% from 4%, which would be the lowest level since early February 2023.

Corporate updates in focus

On the corporate front, Thyssenkrupp Nucera (TG:NCH2) reported fourth-quarter results broadly in line with its November pre-release, with revenue slightly ahead of consensus expectations and earnings largely unchanged.

Serco (LSE:SRP) lifted its profit guidance for 2025 and delivered a constructive outlook for 2026, supported by strong trading across its government services operations.

Bunzl (LSE:BNZL) also updated the market, confirming that its adjusted operating profit for 2025 remains in line with expectations, despite persistent economic pressures in several key markets.

Oil prices jump after Venezuela announcement

Crude oil prices climbed sharply on Wednesday after President Trump ordered a total blockade of all sanctioned oil tankers entering and leaving Venezuela, raising concerns over potential supply disruptions.

Brent crude futures rose 1.4% to $59.73 per barrel, while U.S. West Texas Intermediate futures gained 1.5% to $55.94 per barrel.

Both benchmarks had fallen to five-year lows in the previous session, following reports of tentative progress in Russia-Ukraine peace negotiations and mounting worries about excess supply next year.

“Venezuela exported around 600k b/d of oil in November. It’s likely that these volumes will fall given the latest developments. The bulk of this oil is shipped to China,” ING analysts said in a note.

Serco Group (LSE:SRP) shares climbed 4.9% on Wednesday after the government services provider lifted its profit outlook for 2025 and issued a stronger-than-expected forecast for 2026. The upgrade reflects solid contract delivery and continued efficiency gains across the business.

The company now expects underlying operating profit of around £270 million in 2025, an increase from its previous £260 million guidance, despite adverse currency impacts of roughly £6 million. Revenue is forecast to reach £4.9 billion, representing 3% growth on a constant-currency basis, including 1% organic growth.

Free cash flow expectations were also raised sharply, with guidance increased to £170 million from £130 million previously.

“The Group has demonstrated significant strategic and operational progress throughout the year, as we continue our focus on operational excellence, competitiveness and sustainable growth,” said Anthony Kirby, Serco Group Chief Executive. “I am pleased with the strong performance across financial and non-financial metrics, reflecting the hard work and dedication of all my colleagues around the world.”

Looking ahead to 2026, Serco expects revenue to rise to approximately £5.0 billion, supported by improved organic growth of around 3%, largely driven by defence-related contracts. Underlying operating profit is projected to reach about £300 million, delivering a margin of roughly 6.0%, which sits at the upper end of the company’s medium-term target range.

Order intake for 2025 is expected to remain strong at around £5.5 billion, implying a book-to-bill ratio of at least 110%. Around two-thirds of contract awards were secured within the defence sector, with a particular focus on the UK and North American markets. The company also reported that its pipeline has reached a new decade-high level, reflecting sustained demand for outsourced government services.

Serco additionally confirmed that Mark Reid will take over as Group Chief Financial Officer on 6 March 2026, replacing Nigel Crossley, who will retire after 11 years with the group.

The balance sheet remains robust, with adjusted net debt expected to be approximately £265 million at the end of 2025. This equates to leverage of around 0.9 times net debt to EBITDA, comfortably below the company’s medium-term target range of 1–2 times.

Diageo Plc (LSE:DGE) has reached an agreement to sell its controlling interest in East African Breweries Ltd. to Japan’s Asahi Group Holdings Ltd. for $2.3 billion, as the drinks group continues to streamline its portfolio and focus on core growth areas.

The transaction covers Diageo’s 65% holding in East African Breweries as well as its majority interest in UDVK, a Kenyan-based spirits producer and importer. East African Breweries already owns the remaining share of UDVK and retains operational control of the business.

The sale forms part of Diageo’s broader strategy to scale back its exposure to African markets. In recent years, the company has exited several regional assets, including the full disposal of Seychelles Breweries Ltd. and its Nigerian operations.

Earlier this year, Diageo completed the sale of its 80% stake in Guinness Ghana Breweries Ltd. to Castel Group. The group has also divested Guinness Cameroon SA and Ethiopia’s Meta Abo Brewery, further reshaping its African footprint.

UK equities moved higher in early trading on Wednesday after fresh data showed a slowdown in inflation, while sterling slipped against the US dollar following a strong performance in the previous session. European markets also traded mostly higher, adding to the positive tone.

By 0825 GMT, the FTSE 100 was up around 1%, while the pound had fallen 0.7% against the dollar to 1.33. Elsewhere in Europe, Germany’s DAX rose 0.2% and France’s CAC 40 edged 0.05% higher.

UK inflation falls to eight-month low

Data released earlier showed the annual UK inflation rate eased to 3.2% in November from 3.6% in October, marking its lowest reading in eight months. The decline could give the Bank of England additional flexibility ahead of its final policy decision of the year.

On a monthly basis, inflation fell by 0.2%, reversing the 0.4% increase seen in October. Core inflation, which strips out energy and food prices, also slowed to 3.2% year-on-year from 3.4%, while monthly core CPI declined by 0.2%.

Despite the improvement, inflation remains above the Bank of England’s 2% target. However, the continued downward trend indicates progress in reducing price pressures across the economy.

Bunzl flags steady FY25, cautious outlook for FY26

Bunzl PLC (LSE:BNZL) issued a trading update confirming that its FY25 revenue and operating margin remain in line with previous guidance and market expectations.

The group reported “good momentum” in the fourth quarter, supported by new contract wins in North America. Bunzl expects FY25 revenue growth of 2–3% on a constant currency basis, with reported revenue broadly flat. Adjusted operating profit is forecast to be “in-line with expectations,” delivering a margin of 7.6%, while leverage is expected to be around 2x by year-end.

Looking ahead, the company said FY26 should deliver “moderate revenue growth excluding foreign exchange effects,” supported by modest organic growth and a limited contribution from acquisitions.

Serco upgrades profit outlook

Serco Group (LSE:SRP) raised its profit guidance for 2025 and outlined upbeat targets for 2026, citing strong trading across its operations.

The outsourcing specialist now expects underlying operating profit (EBITA) of £270 million for 2025, up from prior guidance of £260 million and around 3% above analyst expectations. Organic revenue growth guidance was maintained at 1%, with total revenue forecast at £4.9 billion.

Games Workshop declares new dividend

Games Workshop Group PLC (LSE:GAW) announced a dividend of 50 pence per share, taking total distributions for the year to 375 pence.

The payout represents an increase of more than 40% compared with the same point last year, when dividends totalled 265 pence per share.

IntegraFin beats expectations, targets margin gains

IntegraFin Holdings PLC (LSE:IHP) reported FY25 underlying profit before tax of £75.4 million, beating consensus estimates by 1.7% and rising 7% year-on-year.

Earnings per share came in at 17.4p, 3% ahead of forecasts, while the dividend was increased by 9% to 11.3p. Following a detailed cost review, the company outlined plans to improve operating efficiency, targeting administrative cost growth of just 3% in FY26 and FY27, compared with market expectations of 4–5% and after 9% growth in FY25.