- FTSE 100 closes down 8 points at 7,410
- Food price inflation back in single digits
- House prices rise in October, says Halifax
4:40pm: FTSE ends subdued session little changed
The FTSE 100 ended a subdued session with modest losses as weak mining and energy stocks offset gains among retailers and housebuilders.
At the close, London's blue-chip index was down 8 points at 7,410 while the FTSE 250 rose 14.24 points, 0.1%, at 17,761.71.
Disappointing trade figures from China prompted fears of a drop in decline for resources seeing Anglo American, Antofagasta and Glencore leading the fallers, while a drop in the oil price prompted falls for BP and Shell.
Hikma Pharmaceuticals was hit by a downgrade from Jefferies, while a double upgrade from BNP Paribas supported NatWest.
Primark owner, AB Foods rose strongly after launching anew buyback, a special dividend alongside strong growth in sales, while a new share buyback support Frasers Group.
A more positive trading statement from Persimmon and news of rise in house prices supported housebuilders with Barratt Developments and Taylor Wimpey performing well, while RS Group enjoyed a wild ride, closing up 2.3%, after earlier being as much as 19% lower.
In the FTSE 250, Direct Line jumped after it reported a strong motor performance and allayed fears that the recent bad weather had led to increased claims while Watches of Switzerland flew high as HSBC upgraded after its results.
3:49pm: Direct Line seems to be "getting its act together"
Direct Line is a star performer, up 9.3%, following today’s trading update.
AJ Bell’s Russ Mould said “Having royally messed up in 2022,” Direct Line seems to be “getting its act together.”
Left with a weak balance sheet after a series of setbacks including persistent cost inflation and a spike in claims, Direct Line had no choice but to readjust its business.
“Asset sales have helped to strengthen its finances, a hike in premiums puts more money into the pot and the launch of a no-frills package in motor insurance means it can better compete against players in the cheap end of the market,” he said.
“The weather also seems to be on Direct Line’s side, avoiding any out of the ordinary events to trigger another rush of claims beyond what it already expected.”
But he pointed out customers and shareholders won’t necessarily share the enthusiasm.
“The cost of a comprehensive motor insurance policy has gone up a lot while shareholders are currently without a dividend, which is a problem given that the stock’s key attraction historically has been its generous income stream,” he added.
3:26pm: HSBC upgrades Watches of Switzerland
Watches of Switzerland Group PLC (LSE:WOSG) is up 11% in afternoon trading following today’s well received results.
HSBC has upgraded the stock to buy from hold, explaining that even on unchanged estimates its target price implies 21% upside.
This does not take into what may be end up being a somewhat more constructive long-range plan than it now expects.
After the stock's recent derating and given the broker’s more constructive stance on luxury demand in the US for 2024, it believes the valuations are attractive despite the Rolex/Bucherer threat.
“Indeed, with the shares trading at less than 1x sales, on a PE of less than 10x, and a FCF yield in the low double digits, we now see interesting value,” the bank added.
3:12pm: Europe to recommend opening Ukraine membership talks with caveats
The European Commission is set to recommend member states agree to open EU membership negotiations with Ukraine, though with caveats on when talks should formally begin.
A start date for formal talks should only be agreed pending Ukraine adopting specific laws related to issues including political asset declarations, the regulation of political lobbying and guarantees for national minorities, according to an unpublished final draft of the commission’s conclusions.
EU leaders will meet for a summit in December where approving Ukraine’s accession talks will be on the agenda. The report must be agreed by all 27 commissioners tomorrow and could change before then.
2:42pm: FTSE little moved as US edges lower
Across to the US, and stocks have opened lower, pausing for breath afer recent gains, as a Fed offical suggested the Federal Reserve could raise interest rates once more.
Shortly after the opening bell, the Dow Jones Industrial Average was down 54.51 points, 0.2%, at 34,041.35, the S&P 500 was down 8.65 points, 0.2%, at 4,357.33 and the Nasdaq Composite was flat at 13,517.29.
Craig Erlam at Oanda said "with yields now stabilizing again, equities are also running low on energy and may require another boost from the data or central bank."
"But Fed officials remain extremely cautious, fearing stopping too soon and suffering another onslaught of criticism for underestimating the inflationary pressures."
"And we're seeing that again, with Kaskari claiming it's too soon to declare victory and that doing too much is preferable to too little."
Minneapolis Federal Reserve President Neel Kashkari thinks there’s a possibility the central bank could continue raising rates from here.
“Undertightening will not get us back to 2% in a reasonable time,” Kashkari told The Wall Street Journal.
Erlam thinks policymakers can't afford to bounce between messaging depending purely on how bond yields are performing, especially when they are largely responsible for the moves, but they are clearly paying close attention to them
2:08pm: Hikma falls after Jefferies downgrade
Shares in Hikma Pharmaceuticals PLC (LSE:HIK, OTC:HKMPF) are down 1.9% at 1,768.50p after Jefferies downgraded the stock to hold from buy.
The broker sees limited near-term catalysts, with tough first half comparatives and an EPS decline in 2024 with lower expected contribution from gXyrem.
As a momentum stock, Jefferies believes Hikma tends to perform well during periods of EPS upgrades.
But the broker now sees risks skewed to the downside until greater visibility on EPS emerges.
It has lowered its price target to 1.940p from 2,125p.
1:07pm: Primark owner, AB Foods shows strength in diversity
Primark owner, AB Foods, remains in demand with shares up 7.5% after results today.
AJ Bell’s Russ Mould noted “Primark is an attractive option when household budgets are tight – particularly in areas like children’s clothing where longevity is less of an issue.”
“The chain’s owner, Associated British Foods, has sacrificed some margin to deliver growth but there is strategic sense in keeping a lid on prices to take market share and underscore its value credentials.”
“Its competitive position is also bolstered by the struggles at many of its rivals which don’t have the same level of balance sheet strength. This should support the brand’s expansion plans in the US and Germany,” he thinks.
“With other parts of the business also doing well – notably the Grocery and Ingredients divisions – the company has the largesse to dole out an impressive special dividend as well as ploughing ahead with a recurring share buyback,” he noted
Aarin Chiekrie, equity analyst at Hargreaves Lansdown said one of ABF’s key strengths is its diversified portfolio of businesses, which includes many well-known food brands such as Kingsmill, Ryvita and Patak’s.
“This diversification helps to spread out risk, ensuring the company isn’t overly reliant on any one product or division,” he noted.
He explained that’s been a benefit in recent times as unhelpful weather in the prior year dented performance at the group’s African sugar business, Illovo.
But after strong pricing actions and much-improved production levels, sugar revenue soared nearly 30%.
12:51pm: Wagamama off the menu for Pizza Express owner
The owner of Pizza Express has said it won’t bid for Wagamama-owner The Restaurant Group (TRG), citing market conditions for its decision.
It leaves the field clear for private equity group Apollo Global Management (NYSE:APO) (Apollo Global Management (NYSE:APO)), which has bid more than £500 million for TRG.
Wheel Topco, the vehicle for Pizza Express, is keeping its options open. It said it reserves the right to re-enter the race if the Apollo bid lapses or a new bidder emerges.
Unsurprisingly, TRG are down 3.0% at 64.3p, just short of the 65p Apollo bid price.
12:22pm: King's Speech reaffirms commitment to tackle inflation
King Charles III has set out the UK government’s legislative agenda outlining a continued commitment to bring inflation down, support for homeowners and confirming plans to tackle smoking.
In his first King’s Speech, the King said the government’s focus is on increasing economic growth and safeguarding the health and security of the British people for generations to come.
It will continue to take action to bring down inflation, to ease the cost of living for families and help businesses fund new jobs and investment, the King said.
He said the government would support the Bank of England to return inflation to target and introduce legislation to strengthen the UK’s energy security.
This will include the future licensing of new oil and gas fields, helping the country to transition to net zero by 2050 without adding undue burdens on households.
It will also seek to attract record levels of investment in renewable energy sources and reform grid connections.
The speech also confirmed plans to introduce legislation to create a “smokefree generation” by restricting the sale of tobacco so that children currently aged 14 or younger can never be sold cigaretttes, and restricting the sale and marketing of e-cigarettes to children.
There pledges to reform the housing market by making it “cheaper and easier” for leaseholders to purchase their freehold and protecting homeowners from “punitive service charges.”
12:01pm: US stock futures point to weak open
US stock futures were lower in pre-market trading as a recent rally on Wall Street looked poised for a pause.
In pre-market trading, futures for the Dow Jones Industrial Average were down 0.3%, while those for the S&P 500 were 0.3% lower, and contracts for the Nasdaq 100 futures fell 0.3%.
Joshua Mahony at Scope Markets said: “We are starting to see crack appear in the bullish theme that dominated last week, with US markets pointing towards a likely pullback as they follow their European counterparts lower.”
“Just as the RBA has signalled concerns over the length of time it could take to bring inflation down to target, the optimism over an end to Fed tightening will likely be tempered by the reality over how long this normalization of price pressures could take.”
“While recent central bank meetings have helped lift spirits as we potentially leave the tightening phase behind us, this may not necessarily justify an all-out return to optimism quite yet.”
On Monday, equities made steady progress with the Nasdaq taking its winning run to seven days.
Minneapolis Federal Reserve President Neel Kashkari thinks there’s a possibility the central bank could continue raising rates from here.
“Undertightening will not get us back to 2% in a reasonable time,” Kashkari told The Wall Street Journal.
Kashkari noted that he is “not ready to say we are in a good place.”
Elsewhere, earnings from Uber, KKR, Carlyle Group, DR Horton and Squarespace are due before Wall Street opens.
Ebay, Fidelity, Robinhood, Rivian and Cava will report after the market closes.
11:37am: Pound eases as BoE's Pill hints at rate cuts next year
The pound has eased after Bank of England Chief Economist Huw Pill said UK hinted that rates could be cut by the middle of next year, as markets currently anticipate, but warned that global events will likely knock the BOE off course.
Pill told an online presentation that the pricing in financial markets, indicating the first rate cut could come in mid-2024, “doesn’t seem totally unreasonable, at least to me.”
Pill explained: “It is at that point you might consider or reassess, if nothing new has happened, where we are going to have to be.”
11:12am: XP Power surges after rebuffing bid approach
Shares in XP Power are 22% higher after the firm said it had received, and rejected, a number of bid approaches.
It said a small number of parties have expressed interest in acquiring the company at prices which the board considers “fundamentally undervalue” the company and its long-term prospects.
“The board does not believe that any of them are at a value which merits further engagement with any of those parties and has had no hesitation in unequivocally rejecting them.”
The news came as the firm unveiled a £43.9 million fund raise.
10:42am: EY Item Club thinks house price rise unlikely to be sustained
The EY Item Club thinks the unexpected rise in house prices in October reported by Halifax is unlikely to be sustained but reinforces its view that a “serious correction in prices is unlikely.”
The economic forecast said the Bank of England’s decision to keep interest rates unchanged has cemented the recent fall in market interest rate expectations and quoted mortgage rates.
With pay growth still strong, the ratio of house prices to earnings has fallen, improving affordability on this measure, it explained.
“And healthy household balance sheets and a still-tight jobs market mean less pressure on some homeowners to sell, causing weaker demand for houses to be matched with lower supply,” it noted.
But mortgage rates are still close to their highest since 2008, and confidence among households is weak and unemployment has started to pick up.
10:14am: Weak oil price holds back FTSE
Limiting the FTSE 100’s progress is a fall in the oil price which has sent index heavyweights BP PLC (LSE:BP.) and Shell PLC (LSE:SHEL, NYSE:SHEL) down 1.4% and 1.5% respectively.
Brent crude is down 2.0% at $83.52/barrel today with West Texas Intermediate down a similar amount at $79.22/barrel.
Fiona Cincotta, senior financial market analyst at City Index explained that oil prices are falling for a second straight day “as weak data from China overshadows concerns over supply.”
“China, the world's largest oil importer, posted worse-than-expected export data, raising concerns over the economy's health,” she noted.
“Chinese exports shrank by 6.4% year on year in October, while the country's trade surplus narrowed to its weakest level in 17 months,” she added.
“The data signals the continued decline in the Chinese economic outlook driven by deteriorating demand in the country's largest export destination - the West.”
9:56am: Housebuilders lifted by Persimmon and house price rise
The surprise rise in house prices reported by the Halifax and Persimmon's trading update has supported housebuilding shares today.
Persimmon reported a pick up in sales in October and raised its outlook for expected completions to 9,500 from 9,000 before.
Shares are up 4.0%, with Barratt Developments PLC (LSE:BDEV) up 2.5%, Bellway up 1.8%, Berkeley Group Holdings PLC (LSE:BKG) up 1.3% and Taylor Wimpey PLC (LSE:TW.) up 2.1%.
9:31am: Frasers lifted by new share buyback
FraseRS Group PLC (LSE:RS1) is up 4.2% after it announced a new share buyback.
Mike Ashley's diverse retail empire plans to buyback up to £80 million shares, to be completed by the time the firm reports half-year results in December.
9:24am: Retail sales ease in October, says BRC
UK retail sales eased in October, numbers from the British Retail Consortium showed.
According to the latest BRC-KPMG tracker, retail sales increased 2.5% on-year last month, picking up speed from a 1.6% rise in October 2022, but a slight slowdown from 2.7% in September.
Food sales increased 7.9% in the three months to October, below the 12-month average rise of 8.5%. Non-Food sales decreased 1.0%, falling short of the 12-month average climb of 0.6%.
BRC Chief Executive Helen Dickinson commented: "Retail sales growth slowed as high mortgage and rental costs further shook consumer confidence.”
“Many households are also delaying their Christmas spending in the hopes they can grab a bargain in the upcoming Black Friday sales.”
“The cost-of-living squeeze meant more was spent on lower-price indulgences, such as beauty products – the so-called 'Lipstick Effect'. Meanwhile, the arrival of some colder weather helped to boost fashion sales, particularly for outdoor wear.”
9:01am: Food price inflation back in single digits
Food price inflation has fallen back into single digits for the first time since July 2022, according to new figures.
Prices across grocers were 9.7% higher than a year ago over the four weeks to October 29, down from the previous month’s 11%, research firm Kantar said.
It is the eighth consecutive drop in the rate of price rises since the figure peaked at 17.5% in March, and the first time the figure has fallen below 10% for 16 months.
Kantar said the drop was a “big milestone” and is “positive news,” although consumers “will still be feeling the pinch.”
Fraser McKevitt at Kantar said: “We’re only seeing year on year price falls in a limited number of major categories including butter, dried pasta and milk.”
He said retailers have upped the ante on promotions with consumer spending on promotions now 27.2% of total grocery sales, the highest level since Christmas last year.
This is a big gear shift from October 2022 when this figure was less than a quarter.”
He also predicted a fierce fight for shoppers’ Christmas spend.
“When it comes to where people shop, Brits definitely aren’t loyal and some of the traditional shopping demographics and stereotypes have been thrown out of the window,” he explained.
Lidl was again the fastest growing retailer this month with sales over the 12 weeks up by 14.7% and share up by 0.4 percentage points to 7.6%.
Fellow discounter Aldi sat beside Waitrose as one of only two grocers to increase its number of shoppers year on year, attracting 207,000 more customers than last year.
Aldi and Waitrose grew sales by 13.2% and 5.4% respectively to take 9.7% and 4.6% of the market.
Sainsbury’s was the fastest growing traditional supermarket this month, with sales up 10.1% over the 12 weeks to 29 October compared to last year.
Growing ahead of the market, the retailer now holds 15.2% share, up from 14.9% last year.
Britain’s largest grocery chain Tesco gained share for the fourth consecutive month to take 27.4% of the market, an increase of 0.4 percentage points versus a year ago, as year on year sales growth reached 9.5%.
Morrisons has now been back in growth for seven months, with sales in the latest period up by 3.2%.
It now holds 8.6% of the market and Asda stands at 13.6%.
Co-op’s sales have grown by 5.2%, the fastest rate since March 2021, and its market share stands at 6.0%.
8:47am: House prices in surprise rise - Halifax
UK house prices rose in October, ending a streak of six successive monthly falls, according to mortgage lender Halifax, amid a shortage of properties.
The average house price increased 1.1% in October from September, compared to a monthly fall of 0.3% in September.
On an annual basis, prices were 3.2% lower, easing from September's 4.5% decrease.
More house price growth news. The Halifax, like the Nationwide last week, confirms a 1.1% rise in October.
With impending Gov intervention on stamp duty, this bodes well for a much more buoyant property market in 2024.
The ‘house price crash’ merchants looking very stupid now pic.twitter.com/33sl2G4Mcp
— Russell Quirk (@russellquirk) November 7, 2023
Halifax Mortgages Director Kim Kinnaird said: "Prospective sellers appear to be taking a cautious attitude, leading to a low supply of homes for sale."
"This is likely to have strengthened prices in the short-term, rather than prices being driven by buyer demand, which remains weak overall."
But she expects house prices to fall further overall – with a return to growth from 2025.
"The current picture should continue to be seen in the context of the longer-term house price trend as, on average, prices remain around £40,000 above pre-pandemic levels," she said.
8:40am: RS slips as profit and margin falls
The FTSE 100 continues to hold in positive territory, up 8 points, at 7,426.
Top of the fallers is RS Group PLC (LSE:RS1), down 5.9%, after it reported a drop in revenue, profits and margins.
The firm said revenue totalled £1.45 billion, down 1% or 8% on a like-for-like basis, adjusted operating profit slipped 21% to £156 million, while operating margin declined to 10.8% from 13.4%.
The drop in operating profit margin reflected lower volumes, the lack of the 2022/23 trading tailwind, short-term dilutive impact of acquisitions and input cost inflation.
Chief Executive Simon Pryce said it was a “resilient performance in difficult markets, which have been more challenging than anticipated at the beginning of the year.”
“Industrial revenue has been robust despite the challenging macro and geopolitical environment but cyclical weakness in electronics has been exasperated by customer de-stocking,” he added.
Peel Hunt said it anticipated downgrading forecasts again, “possibly in the region of 8-10% at the adjusted pre-tax profit level, assuming second half margins do not improve.”
8:20am: FTSE little changed, AB Foods jumps 6%
The FTSE 100 was little changed in early exchanges as a surprise rise in house prices offset disappointing news on retail sales and a falling oil price.
At 8:15am, London’s lead index was up 1.36 points at 7,419.12 while the FTSE 250 was up 46.08 points, 0.3%, at 17,793.55.
The value of retail sales in the UK grew by 2.5% in October, a slight slowdown on September, according to the British Retail Consortium.
The survey by the BRC and KPMG found beauty products and food boosted sales in what was overall a weak October which might spark fears about the prospects for the key Christmas season.
In company news, Direct Line Insurance Group PLC (LSE:DLG) jumped 3.5% after reporting rising prices had supported strong growth in gross written premiums.
Matt Britzman, equity analyst at Hargreaves Lansdown said: “There’s no let-up for drivers as Direct Line continues to push through higher prices.”
“A 37% increase in the cost of average motor insurance from this time last year is mammoth, but it’s been a necessary evil.”
“The industry’s been under immense pressure since drivers took back to the streets post lockdowns, with inflation on the cost side and a spike in the number of claims weighing on performance,” he pointed out.
Primark owner, Associated British Foods jumped 6.5% after what analysts at Shore Capital called a “ pleasing out-turn.“
The broker highlighted a special dividend has been declared plus a recurring buyback with firm expecting meaningful progress in 2024.
There was better news for housebuilders as the Halifax said house prices rose in October, while Persimmon PLC (LSE:PSN), up 2.6%, reported a pick up in sales in October.
The FTSE 250-listed housebuilder was updating on its third quarter trading performance.
Liberum said: “Persimmon's scheduled trading update guides to volume completions of 9,500 this year, compared to its old guidance of over 9,000.”
“Sales rates have improved sequentially from the summer to the autumn, helped by a combination of seasonality and stabilising mortgage rates,” the broker noted, adding “Persimmon's outlook for 2024 is encouraging as it can point to new site releases coming through, which should boost its chances of growing volumes.”
7:58am: Persimmon reports pick up in sales, holds guidance
Persimmon PLC (LSE:PSN) said it had seen a strong upturn in sales since October as it raised its expectations for completions.
The housebuilder said in the past five weeks private sales rates have improved to 0.59, compared to 0.45 last year, showing a “strong pick up” since the start of October.
“We are on track to deliver around 9,500 completions for 2023 with operating profit in line with expectations and at an operating margin similar to the first half,” the firm said, a better outcome than the 9,000 completions previously forecast.
The company said pricing remains broadly stable although it has have seen a slight reduction in group private average selling price in the forward order book and an increase in the use of incentives, particularly in the South where affordability constraints are greater.
Third quarter trading was in line with expectations during the third quarter, delivering a total of 1,439 homes, down from 2,270 homes a year ago.
The private selling price on completions was up 2% in the quarter on the prior year at £296,822 while average private sales per outlet per week were 0.48 in the period (Q3 2022: 0.63).
Dean Finch, chief executive, said: “While the near term is likely to remain challenging and we remain disciplined on costs, we continue to position the business for growth when the market recovers, as demonstrated by our further progress on planning in the period.”
7:47am: Primark owner boosts dividend, new share buyback
Next up, Primark owner, Associated British Foods PLC (LSE:ABF), launched a fresh share buyback and rewarded shareholders with a bumper dividend as it reported double-digit growth in revenue and profit.
The FTSE 100-listed company said in the 52 weeks to September 16, revenue rose 16% to £19.75 billion from £17.00 billion the year before, pre-tax profit climbed 25% to £1.34 billion from £1.08 billion and EPS jumped to 134.2p from 88.6p.
The dividend was hiked 37% to 60.0p from 43.7p, including a special payout of 12.7p, and a final dividend of 33.1p while a further £500m buyback is planned.
The firm said it was a “strong performance in demanding environment,” with “significant growth in group sales driven in large part by pricing actions.”
ABF reported continued momentum across Retail with revenues well ahead at £9.0 billion, supported by selective pricing and well received ranges.
Adjusted operating profit in Retail was 3% lower at £735 million with a margin of 8.2% reflecting decisions on pricing.
There was significant profit growth at Ingredients and good growth in Grocery led by international brands, US focused brands and a recovery in Allied Bakeries.
Sugar sales were well ahead, and profitability ahead but impacted by more challenging British Sugar crop conditions and Vivergo.
Profits at Agriculture were lower due to tough market conditions.
George Weston, chief executive said: “With Primark margin now moving back to its historic levels, we view the future for this business with confidence. Our food businesses are also in very good shape, and our Sugar business especially should see much better profitability in the year ahead."
7:32am: Direct Line supported by rising prices in Motor business
Plenty going on today and we start with Direct Line Insurance Group PLC (LSE:DLG) which reported strong growth in the third quarter as rising prices supported more than doubled motor premium growth in the Motor division.
The online insurance firm said in the three months to September, Motor gross written premiums more than doubled to £826.8 million from last year, a rise of 115.4%.
Home gross written premiums rose 3.9% to £144.4 million compared to a year ago, taking total
group gross written premiums 58.9% higher at £1.28 billion.
Jon Greenwood, acting chief executive said: “"In Motor, we can see the pricing actions we have taken come through in strong premium growth during the quarter and we believe we are writing profitably, consistent with a 10% net insurance margin.”
Total in force policies for ongoing operations rose 4.9% in the third quarter, including around 725,000 Motability customers, the firm said.
Direct Line said expectations are for 2023 claims inflation for Motor and Home unchanged at high single digits while claims from weather events to date, including recent storms, are currently estimated to be within the group's annual assumption.
"We are confident that the decisive actions we are taking sets the Group up for improved performance going forward,” said Greenwood.
7:00am: FTSE called lower after weak Chinese trade data
The FTSE 100 is expected to open lower amid weak Chinese trade data and after the Australian central bank raised interest rates.
Spread betting companies are calling London’s lead index down by around 12 points after closing up just 0.03 at 7,417.76 on Monday.
The Reserve Bank of Australia has raised interest rates for the first time in five months as persistent inflation has forced its hand.
The bank opted to increase interest rates by 25 basis points to 4.35%.
It was the first increase under Michele Bullock, who was promoted to RBA governor, replacing Philip Lowe in September, but was widely anticipated as inflation data and consumer spending had risen over the past month.
In China, exports fell at a faster pace than predicted in October, as the world's second-largest economy is buffeted by faltering global demand and a sluggish domestic recovery.
“Today’s Asia session has had to absorb today’s China trade numbers for October, as well as the latest monetary policy decision from the Reserve Bank of Australia, with markets there sliding sharply, which is expected to translate into a lower European open,” said CMC Markets UK analyst Michael Hewson.
The Nikkei 225 in Tokyo fell 1.3%, the Shanghai Composite was down 0.1% in China, and the Hang Seng in Hong Kong slipped 1.4%.
The S&P/ASX 200 was down 0.3% in Sydney.
US markets made steady progress with the Dow, S&P and Nasdaq rising 0.1%, 0.2% and 0.3% respectively.
Back in London, and the early focus will be updates from AB Foods, Beazley, Persimmon and RS Group plus the Halifax house price index.