- FTSE 100 adds 20 points
- Anglo eyes June for platinum spinoff
- BAE tops risers as Ukraine talks loom
4.05pm: FTSE 100 heads for gain as European defence firms bounce
BAE Systems PLC continued to lead London’s blue chips higher into late trading with a 7.9% gain, as the FTSE 100 approached the close up 20 points at 8,752.
In line with the likes of European peers Rheinmetall, Thyssenkrupp, Thales, Leonardo and Saab, BAE surged to collectively add over £10 billion to the continent’s defence industry.
Speculation has rapidly built of hiked security budgets across the board, with emergency talks in Paris on Monday coming as the US looks to sideline Europe in efforts to broker an end of the Ukraine war with Russia.
“The markets are once again being driven by geopolitics,” XTB analyst Kathleen Brooks noted.
Bond yields across Europe had also crept up, she flagged, as expectations built of increasing debt in line with higher defence spending.
Back in London, Lloyds Banking Group PLC dropped 2.6% to top the FTSE 100’s fallers.
Ukraine-focussed Ferrexpo PLC headed the mid-cap risers in the meantime, up 11.9% ahead of the likes of Chemring Group PLC and Assura PLC, while Wood Group PLC dropped 14.2% as declines steepened after last week’s profit warning.
3.16pm: Investors reportedly call on Shein to slash valuation to $30bn in London IPO
Shein has reportedly come under investor pressure to wind down its valuation to around US$30 billion under plans to list on the London Stock Exchange.
According to Bloomberg, shareholders had suggested an adjustment would be needed in order to get the potential initial public offering done.
Previous reports had said the online fast-fashion retailer was set to slash its valuation to roughly US$50 billion through the float.
Were Shein to cut its valuation in line with the calls, this would fall to less than half the US$66 billion secured through a funding round in 2023.
Plans had been for the London float to take place in the first half of this year.
However, the Financial Times reported last week that this could be delayed into the latter part of the year after US attempts to end a tax loophole on low-value imports.
2.14pm: FTSE 100 ticks up further as BAE holds gain
London’s blue chips remained on the front foot into Monday afternoon, with the FTSE 100 adding 23 points to sit at 8,756.
BAE Systems PLC continued to head the risers, gaining 7.4% as investors mulled scope for hiked defence spending as European leaders met ahead of US-Russia talks aimed at bringing about an end to the war in Ukraine.
Following calls from US president Donald Trump for Europe to take more responsibility in its own defence, prime minister Keir Starmer told reporters the UK was facing a “generational challenge” in terms of security.
“I think there’s a bigger piece here as well, which is that this isn’t just about the front line in Ukraine,” he said before Monday’s talks in Paris.
“It’s the front line of Europe and of the United Kingdom. It’s about our national security and I think that we need to do more.”
Elsewhere, NatWest Group PLC and Barclays PLC were among Monday’s risers as they regained after results last week, while Segro PLC dropped 2.2% to head the fallers.
Ukraine-focused Ferrexpo PLC jumped 12.9% to top of the FTSE 350 winners alongside the likes of defence firm Chemring Group PLC in the meantime, as the mid-cap index climbed nine points to 4,796.
1.18pm: St James’s Place lifted as Citi hikes price target
St James’s Place PLC gained on Monday after being granted a share price target upgrade by Citi analysts thanks to expectation-beating fourth-quarter flows.
Fourth quarter flows had outdone expectations, Citi said ahead of full-year figures on February 27, prompting its price target to be hiked from 1,100p to 1,280p.
St James’s Place last month unveiled record funds under management of £190.2 billion for the year to December on net inflows of £4.33 billion.
Citi noted its estimates on per-share earnings for the year ahead were set to increase by around 10% as a result.
Earnings were expected to sit at 41.1p for the second half, analysts added, outdoing consensus by 2%, before overshooting by between 8% and 9% over the next two years.
Net flows for the year ahead were seen climbing by 3.3%, as assured pre-tax profit margin on mature funds under management hit 28 basis points, against the 25 expected prior.
A ‘buy’ rating was also reiterated, with shares up 1.2% at 1,115p on Monday.
12.33pm: Assura rejected £1.6bn bid ‘fair’ - analysts
Assura PLC will need to justify a higher valuation after rejecting several takeover advances from KKR and Universities Superannuation Scheme, analysts believe.
Shore Capital analysts noted last week’s latest offer of £1.6 billion, which followed three previous bids from the US private equity firm and UK pension fund, could make “good sense”.
“The price looks fair,” analysts said, “although we will need to hear details from Assura about how it values the business higher than this before a more informed assessment”.
Shares were up 11.3% at 43.42p on Monday, placing Assura among the mid-cap risers behind Ferrexpo PLC as talks of a Ukraine-Russia peace deal loomed.
Elsewhere, the FTSE 100 remained in the green, up 17 points at 8,750, led by BAE Systems PLC.
Junior stocks also gained, with the AIM all-share up one point at 727.
Empire Metals Ltd was among those ticking up, after telling investors it had kicked off a drilling campaign at the Pitfield Project in Western Australia... Read more
11.40am: Barclays, NatWest tick back up as dust settles on updates
Barclays PLC and NatWest Group PLC regained on Monday as the dust settled and analysts weighed in on respective updates last week.
Having both dropped in the wake of results, Barclays added 2.9% to reach 303.2p as the new week got underway, while NatWest jumped 3.4% to 442.7p.
Despite each beating expectations, profit-taking had weighed, alongside wider jitters around the likes of falling interest rates.
RBC and UBS stuck with backing for Barclays though, reiterating ‘outperform’ and ‘buy’ ratings respectively, as Deutsche Bank repeated a ‘buy’ for NatWest.
“Our 2026 adjusted profit before tax estimate remains broadly unchanged, as slightly lower income and higher cost estimates are offset by lower impairment,” RBC said on Barclays.
Return on tangible equity could hit 12.1% in 2026, beating guidance for 12.0%, RBC added, with shareholder rewards over the next three years seen reaching £10.9 billion.
A 340p share price target was maintained, as UBS lifted its estimate on Barclays by 10p to 350p on likely “conservative” targets and remaining “real value”.
Deutsche added NatWest had set a “positive floor” with aims for over 15% return on tangible equity come 2027 and held its 460p price target.
10.53am: European defence stocks rally across the board
European defence stocks racked up gains across the board on Monday as talk of hiked security spending continued on efforts by the US to bring peace in Ukraine.
AJ Bell’s Russ Mould flagged suggestions from NATO general secretary Mark Rutte that members would have to boost defence spending to “‘considerably more than 3%” of GDP as talks in Europe and separately between the US and Russia loomed.
Crisis talks were set to be held among European leaders in Paris on Monday, before a meeting between US and Russian officials in Saudi Arabia, at which Europe and Ukraine would not be represented.
“Rutte’s comments [...] have acted as another share price catalyst, even though markets had already priced in a stronger earnings environment for the sector.
“That Donald Trump is keen for European allies to spend as much as 5% of GDP on defence adds to the narrative supporting the sector.”
BAE shares were up 6.7% at 1,310p on Monday, while European peers Leonardo, Thales and Rheinmetall added 5.7%, 5.6% and 9.1% respectively.
Back in London, FTSE 250-listed Chemring Group PLC surged 6.2%, as the likes of Rolls-Royce Holdings PLC, Babcock International PLC and Melrose Industries PLC also gained.
9.51am: BAE continues charge as ‘new era’ for European defence looms
BAE Systems PLC remained well ahead of the FTSE 100’s risers on Monday morning as eyes were fixed on European discussions around the war in Ukraine.
Following comments from the new Trump administration that Europe should bear more responsibility for its own security, Monday’s emergency talks came after UK prime minister Keir Starmer had signalled troops could be deployed to Ukraine under a peace deal.
Both Citi analysts noted the turn prompted the need for higher defence spending, but also “a greater willingness to invest in European” firms.
JPMorgan echoed the view, adding: “We are in a completely new era for European defence spending.”
The US’ unwillingness to continue subsidising European defence coincided with a worsening geopolitical environment and followed around 30 years of underinvestment, analysts said ahead of the talks among European leaders in Paris.
BAE shares were up 5.3% at 1,293.06p, leading London’s blue chips as the FTSE 100 added 14 points to sit at 8,746.
8.58am: GSK gets FDA approval for meningitis vaccine
GSK PLC has been granted US Food and Drug Administration approval for its Penmenvy meningitis vaccine.
Designed to target five major serogroups of meningitis-causing Neisseria meningitidis bacteria, GSK on Monday said the jab had been green lit for 10 to 25-year-olds.
Invasive meningococcal disease (IMD), which is often linked to Neisseria meningitidis, can cause death in up to one in six who contract it in as little as 24 hours, GSK noted.
Those aged between 16 and 23 years old were said to be at heightened risk, with GSK’s drug combining components of two meningococcal vaccines, Bexsero and Menveo.
“Integrating GSK's MenABCWY vaccine into healthcare provider practices could simplify meningococcal vaccination delivery and help protect more US adolescents,” chief scientific officer Tony Wood said.
“Although MenB is the leading cause of IMD among this population, less than 13% receive the recommended two-dose vaccination series; around 32% receive at least one dose.
“Three of every four MenB doses currently administered in the US are manufactured by GSK, positioning the company well to lead in the US market.”
8.23am: Defence firms buoy FTSE 100 early on
London’s blue chips got off to a positive start to the week on Monday, adding 10 points to sit at 8,743.
BAE Systems PLC jumped 5.3% ahead of Rolls-Royce Holdings PLC to head the early risers as attention remained fixed on peace talks around the Russia-Ukraine war.
British Prime Minister Keir Starmer had said he was “ready and willing” to deploy troops to Ukraine on Monday in a bid to aid security under any potential peace agreement.
Detailing the pledges ahead of an emergency summit among European leaders on Monday, he added: “Any role in helping to guarantee Ukraine's security is helping to guarantee the security of our continent.”
Elsewhere in London, Spirax Group PLC led the early FTSE 100 fallers in the absence of any major movers, while Assura PLC surged 17.7% to top the mid-cap winners.
The pound added 0.07% to sit just off US$1.26 and at a two-month high in the meantime, ahead of unemployment and inflation figures later in the week.
8.07am: Assura surges after rejecting £1.6bn bid
Assura PLC jumped over 15% on Monday on news it had rejected four takeover advances from US private equity giant KKR, including a £1.56 billion bid last week.
KKR on Monday announced a 48p per share offer had been rebuffed over the weekend, following three proposals over the last six months.
Bids for the FTSE 250 healthcare real estate investment trust had been tabled alongside Universities Superannuation Scheme, KKR added in a statement.
The latest marked a 28.8% premium to its closing share price as of February 13, when the last approach was made, KKR added.
“KKR is considering whether there is any merit in continuing to try and engage with the board," it said.
“There can be no certainty that any firm offer for the company will be made. A further announcement will be made as and when appropriate.”
Assura jumped 15.4% to 45p on Monday.
7.48am: Anglo American details platinum demerger plans
Anglo American PLC's platinum division will be spun off by June and pay an additional dividend before the split, the miner has announced.
Following “significant” progress, the miner on Monday flagged efforts to complete the latest of a string of demergers in the summer and pay out US$0.9 billion (£0.7 billion) to shareholders.
Anglo American Platinum would hold primary and additional listings in Johannesburg and London respectively, with the mining giant set to retain a 19.9% stake, a statement said.
Given its roughly 67% holding currently, Anglo American added it would receive approximately US$0.6 billion of the dividends before the separation.
The division, which Anglo American chief executive boss Duncan Wanblad flagged was the world's leading platinum group metals producer, had net cash of US$0.9 billion as of December.
Adjusted pre-tax earnings in the division had also sat at US$1.1 billion for the last year to December 31, Anglo American noted.
“We are on a clear timeline towards demerging Anglo American Platinum,” Wanblad added.
“Anglo American will no longer have any representation on the Anglo American Platinum board post demerger and we intend to exit our residual shareholding responsibly over time, and subject to customary lock-up arrangements.”
7.18am: FTSE 100 set for bright start to week
London’s blue chips appeared on course for a positive start to the week on Monday, with futures showing the FTSE 100 up 11 points ahead of trading.
The FTSE 100 had notched up a gain last week, adding 31 points to reach 8,732 despite uncertainty around trade tensions under Donald Trump and peace talks in Ukraine.
Overnight, Asian markets had enjoyed a broadly positive showing, with Japan’s Nifty 50 index among the few to fall, after Friday’s mixed session on Wall Street.
Back in London, a quiet Monday was due before the likes of inflation and unemployment data later in the week.
Monday's schedule
Interims: CAP-XX, Wilmington Group
Finals: MONY Group
Overseas earnings: BHP Group Ltd