Three things you need to know in the financial markets today at the UK open, from investment writer, Tony Cross.
#1. NatWest snaps up Sainsbury’s Bank
NatWest LON:NWG has this morning announced it is buying the assets of Sainsbury’s Bank. The transaction will see Sainsbury’s parting with £125m to divest itself of the operation – although that figure may be revised – whilst also unlocking £250m of excess capital once the position is unwound. The deal offers NatWest around 1 million new customers and will be accretive for both EPS and RoTE upon completion.
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#2. Profit warning from YouGov
Pollsters YouGov LON:YOU have issued a trading update today, noting that slower than expected performance is taking a toll and full year revenues are now tipped to come in between £324-£327m, with group adjusted operating profits of £41-£44m. Demand remains strong for customised research but it’s the data products division which is struggling.
#3. Time Out upbeat as global audiences grow
Publisher Time Out LON:TMO has provided a trading update noting a strong performance in Q4 and as a result now expects full year EBITDA to come in ahead of previous market forecasts. Management note that strategic and operational progress is being made across the business with social media helping drive its global brand audience. That momentum is expected to be maintained into the new financial year.