LONDON BRIEFING: Mideast ceasefire wavers, UK house prices "stable"

Fri, 08th May 2026 07:57

(Alliance News) - Stocks were called lower on Friday, as British Airways parent International Consolidated Airlines posted higher quarterly profit but was less optimistic about the full year, while Rightmove stood by its 2026 guidance.

Iran's leadership has been branded "lunatics" by Donald Trump after three US destroyers were targeted by missiles, drones and small boats in the Strait of Hormuz. In response, strikes were carried out against the "Iranian military facilities responsible", including launch sites and command and control centres.

Writing on his Truth Social platform, the US president said: "A normal Country would have allowed these Destroyers to pass, but Iran is not a normal Country. They are led by LUNATICS, and if they had the chance to use a Nuclear Weapon, they would do it, without question – But they'll never have that opportunity and, just like we knocked them out again today, we'll knock them out a lot harder, and a lot more violently, in the future, if they don't get their Deal signed, FAST!"

Meanwhile in the UK, PA reports, Prime Minister Keir Starmer finds himself under pressure following disastrous local election results. Early results have seen Labour haemorrhage hundreds of councillors and eight local authorities across England while Reform, the Greens and Liberal Democrats are all making gains.

Here is what you need to know before the London market open:

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MARKETS

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FTSE 100: called down 76.4, 0.7% at 10,200.55

GBP: lower at USD1.3580 (USD1.3616 at previous London equities close)

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ECONOMICS

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Halifax reports that house prices in the UK "remained broadly stable" in April. According to the Halifax house price index, prices decline by 0.1% on a monthly basis to GBP299,313 in April, compared with March's 0.5% decline to GBP299,609. April's decrease is in line with FXStreet-cited consensus, which was revised ahead of Halifax's release from previous expectations of a 0.2% increase. On an annual basis, house price growth decelerates to 0.4% for April, compared with a 0.8% increase for March and below the market consensus for a 0.6% rise. "After a strong start to the year, recent global developments have added a greater degree of uncertainty to the outlook," comments Halifax Head of Mortgages Amanda Bryden. "In particular, higher energy prices have fed into inflation expectations, prompting markets to reassess the path for interest rates – a shift that has already pushed up borrowing costs for many buyers." But she adds: "Even so, the housing market continues to display the resilience that has been its hallmark in recent years. While activity is likely to cool in the near term, the underlying picture remains one of relative stability, supported by wage growth that continues to outpace house price inflation."

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BROKER RATINGS

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Oddo BHF raises Shell to 'outperform' (neutral) - price target 44 (42) EUR

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Berenberg starts Zigup with 'buy' - price target 550 pence

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Berenberg raises Sylvania Platinum price target to 169 (166) pence - 'buy'

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COMPANIES - FTSE 100

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Rightmove maintains its guidance for 2026, still expecting revenue growth of 8% to 10%. For the four months ended April 30, it says its core Estate Agency and New Homes businesses continue to deliver product-led average revenue per advertiser growth, supporting unchanged core ARPA growth guidance. Says core membership has increased since December 31, supporting its ongoing expectation of around 1% growth this year. Adds that its Commercial Property, Mortgages and Rental Services strategic growth areas are on track to deliver 20% to 30% revenue growth. Rightmove also continues to expect between 3% and 5% underlying profit growth, and at least 5% underlying earnings per share growth. Notes that it expects first-half growth to be impacted by fewer New Homes developments and the strong mortgage comparator last year.

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Intertek says its board has unanimously and unequivocally rejected the latest takeover proposal, of GBP58.00 per share in cash, from funds managed by EQT Fund Management Sarl. Stands by its strategic review announced on April 14 "to evaluate the potential separation, either through a sale or demerger, of Intertek Energy & Infrastructure from Intertek Testing & Assurance," which it says "would create two high-quality global ATIC businesses with a strong historical operational and financial track record...and compelling opportunities for further growth".

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International Consolidated Airlines reports its first-quarter results. Revenue rises 1.9% on-year to EUR7.18 billion from EUR7.04 billion, while operating profit rises 77% to EUR351 million from EUR198 million. Post-tax profit rises 71% to EUR301 million from EUR176 million. Pretax profit increases 77% to EUR422 million from EUR239 million. Looking ahead, IAG says it is "well-positioned to manage the current headwinds", and that travel demand "continues to be robust in our main markets". Says second-quarter capacity growth is forecast at around 1%, below the 3% rise guided for in its 2025 results. "Whilst the first quarter was relatively unaffected by the Middle East conflict we expect it to have a more substantial impact throughout the rest of the year as the increase in the fuel cost starts to manifest itself," the company says. "As a result we expect our profit to be lower than originally anticipated at the beginning of the year." Also guides for free cash flow to be less than the EUR3 billion predicted in February. Further, the company says it expects to spend around EUR2 billion more than planned on fuel this year.

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COMPANIES - FTSE 250

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Workspace Group receives a requisition notice on behalf of Saba Capital, which has an approximate 18.21% stake. Saba wants resolutions proposed at the AGM, scheduled for July 23, to remove five of the current non-executive directors and to appoint four replacements. Workspace notes that in January, Saba proposed a managed wind-down and says it "engaged constructively" with the hedge fund, but that it concluded that this proposal was neither achievable nor likely to maximise value for shareholders. "Nevertheless, the board remains open to continuing a constructive dialogue with Saba Capital," Workspace says.

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OTHER COMPANIES

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Wheaton Precious Metals Corp releases its first-quarter results. Revenue surges up 92% to a "record" USD901.5 million from USD470.4 million the year before. Net earnings and adjusted net earnings also reach record highs, both more than doubling to USD582.0 million from USD254.0 million, and to USD582.8 million from USD250.8 million, respectively. Declares a 19.5 US cents per share second quarterly dividend. First-quarter production rises 22% to 211,951 gold equivalent ounces from 174,391 the year before. Wheaton continues to forecast production of approximately 860,000 to 940,000 gold equivalent ounces for 2026, and also reiterates guidance of production rising by around 50% to 1.2 million gold equivalent ounces by 2030.

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By Emma Curzon, Alliance News reporter

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