LONDON — Thursday, 6 November 2025
At a glance
- FTSE 100 trades slightly lower as investors await the Bank of England’s rate call; sterling holds near multi‑month lows. 1
- Construction PMI slumps to 44.1 in October, the sharpest contraction in over five years, underscoring a soft UK backdrop. 2
- Earnings & updates:
- J Sainsbury raises FY retail underlying operating profit guidance to “more than £1bn” and confirms an 11p special dividend. 3
- ITV flags ~9% YoY decline in Q4 total ad revenue and unveils £35m temporary savings. 4
- AstraZeneca beats Q3 revenue and core EPS but keeps full‑year guidance unchanged. 5
- Smith & Nephew shares drop ~9% on softer US knee‑implant sales. 6
- Diageo posts flat organic net sales in fiscal Q1 (volume +2.9%) and trims full‑year sales outlook. 7
- Hikma reaffirms 2025 guidance but lowers medium‑term growth targets. 8
- LSEG announces a private‑markets data partnership with Nasdaq. 9
Market snapshot: waiting on Threadneedle Street
UK equities were fractionally lower by late morning, with traders staying cautious ahead of the Bank of England’s midday decision and press conference. The FTSE 100 drifted as much as about 0.3%, while sterling hovered near recent lows against major peers amid growth concerns and budget uncertainty later this month. 1
Fresh data reinforced the slowdown narrative: the S&P Global/CIPS Construction PMI fell to 44.1 in October (from 46.2), marking the fastest drop in activity since May 2020 and the longest downturn since the financial crisis. Civil engineering led the decline, with housing also weak. 2
One pocket of strength: UK bank shares modestly outperformed after reports the sector may avoid a punitive tax raid in the upcoming Budget, lifting the FTSE 350 Banks index. 10
Big movers & newsmakers
Sainsbury: guidance upgrade, special payout
J Sainsbury (SBRY) said first‑half trading was ahead of expectations and raised its full‑year retail underlying operating profit target to “more than £1bn.” It also confirmed an 11p special dividend on 19 December and outlined additional buyback plans linked to its bank disposals. The retailer cited grocery volume growth, improving value perception and cost savings. 3
ITV: strong Studios & digital, but Q4 ad headwinds
ITV (ITV) reported +2% group revenue YTD to £2.80bn, driven by +11% Studios and +15% digital ad growth. However, management warned Q4 total advertising revenue is expected to be down ~9% YoY, citing broad caution ahead of the late‑November Budget. ITV will make £35m temporary savings (including £20m by moving content into 2026) to offset the revenue hit. 4
AstraZeneca: beats, but no guidance raise
AstraZeneca (AZN) delivered a Q3 beat on revenue and core EPS thanks to oncology and cardiovascular drugs, but left its full‑year outlook unchanged, which some investors had hoped would be lifted. The company highlighted pipeline progress and reiterated long‑term ambitions. 5
Smith & Nephew: revenue miss bites
Smith & Nephew (SN.) shares fell around 9% after Q3 revenue (~$1.50bn) missed estimates, with US knee‑implant sales singled out as a weak spot. The company kept its annual revenue and margin guidance unchanged, but the US orthopaedics softness dominated sentiment. 6
Diageo: flat volumes up, price/mix down; outlook nudged
Diageo (DGE) posted flat organic net sales in fiscal Q1 (volume +2.9%) as growth in Europe, LAC and Africa was offset by Chinese white spirits weakness and a softer US spirits market. Diageo now expects FY26 organic net sales to be flat to slightly down, but still targets ~$3bn free cash flow this year as its “Accelerate” cost‑saving programme progresses. 7
Hikma: 2025 intact, medium‑term trimmed
Hikma (HIK) reaffirmed 2025 guidance (group revenue growth 4–6%; core operating profit $730–$750m), but revised lower its 2024–2027 CAGR and Injectables margin expectations as its Bedford US facility timeline pushes out toward late 2027. 8
LSEG x Nasdaq: private‑markets data tie‑up
London Stock Exchange Group (LSEG) unveiled a strategic partnership with Nasdaq to distribute private‑markets datasets (including eVestment content) via LSEG Workspace and datafeeds—an extension of LSEG’s recent push into private‑company infrastructure. 9
Why it matters
- The BoE decision arrives into a weak domestic backdrop (construction slump, cautious consumers and advertisers), alongside a soft currency—all levers that can magnify policy impact on bank, housebuilder and domestically focused mid‑cap shares. 2
- Corporate updates show a bifurcated market: staples/retailers are leaning on cash returns and execution (Sainsbury), media is feeling the cyclical ad slowdown (ITV), while healthcare names are moving on pipeline and mix (AstraZeneca; Smith & Nephew). 3
- Banks’ relative outperformance today underlines how fiscal signals can swing sector leadership in the run‑up to November’s Budget. 10
What to watch next (today)
- Bank of England policy decision & vote split — market reaction in gilts, sterling, banks, and UK domestic cyclicals. 1
- Company calls and press briefings from today’s reporters (notably AstraZeneca, ITV, Diageo, Hikma) for colour on 2026 planning, cost actions, and demand signals. 5
Sources & further reading
- Market & macro: UK stocks and FX pre‑BoE; UK banks rally; UK Construction PMI. 1
- Company updates: Sainsbury H1 results; ITV Q3 trading update; AstraZeneca Q3; Smith & Nephew Q3 price reaction; Diageo F26 Q1; Hikma trading update; LSEG–Nasdaq partnership. 3
This report is for information only and does not constitute investment advice. Market levels and share prices referenced above reflect conditions reported during the UK morning session on 6 November 2025.
