(Alliance News) - The FTSE 100 was called lower on Thursday morning, after US President Donald Trump's first nationwide address since the start of the Iran war did not prove reassuring.
Promising another two to three weeks of "extremely hard" strikes, Trump said the US' "core strategic objectives", including stopping Iran from building a nuclear bomb, "are nearing completion". He again threatened that if Iran does not reach a negotiated settlement, the US would "hit each and every one of their electric generating plants."
Further, Trump has said countries which rely on the vital Strait of Hormuz shipping lane for oil should "build up some delayed courage" and "just grab it", and that after the Iran conflict is over, the critical waterway will "just open up naturally".
Additionally, an Iranian foreign ministry spokesman has denied that any direct ceasefire negotiations are taking place, and called Washington's demands "maximalist and irrational".
"After a couple of days where markets have struck a decidedly more positive tone, a degree of caution has once again crept into proceedings overnight," commented Pepperstone's Michael Brown. "President Trump's 'address to the nation' hasn't helped on this front, with market participants having wanted to hear a bit more than the president provided.
"While Trump did note that the US is 'nearing completion' of its strategic objectives, and reiterated that those countries reliant on crude flows through Hormuz should be the ones to re-open it, Trump failed to give a definitive timeframe for ending the conflict, while also nothing that Iran will be hit 'very hard' over the next couple of weeks."
Here is what you need to know before the London market open:
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MARKETS
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FTSE 100: called 92.7 points, 0.9%, lower at 10,272.09
GBP: lower at USD1.3215 (USD1.3324 at previous London equities close)
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BROKER RATINGS
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RBC raises Berkeley Group to 'outperform' (sector perform)
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Peel Hunt cuts Harbour Energy to 'hold' - price target 270 pence
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Citigroup raises Greatland Resources to 'buy' (neutral) - price target 816 (780) pence
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COMPANIES - FTSE 100
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SSE updates guidance for its results for the year ended March 31, with adjusted earnings per share expected to be between 147 and 152 pence, which would be down from 160.9p the year before. Back in February, it guided for a wider range of 144p to 152p. It says the narrowed guidance reflects continued strong operational performance and strategic delivery during the year, as the electricity generator progresses its five-year GBP33 billion investment plan. It expects its regulated Networks businesses to deliver an around 60% year-on-year increase in capital investment, as momentum continues in the delivery of their long-term business plans, and for renewable generation output is expected to be around 14.5 TWH, a 10% increase. SSE says it continues to closely monitor developments in the Middle East, but that there has been no immediate impact to overall performance given the resilience of its business mix.
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Lloyds Banking updates on motor finance compensation, having assessed the implications and impact of the final rules from the Financial Conduct Authority's announcement on Monday. The FCA confirmed it will proceed with an industry-wide motor finance redress scheme for millions of customers who were treated unfairly by lenders. It estimates that firms will pay out around GBP7.5 billion in compensation, with total costs including administration estimated at GBP9.1 billion, lower than earlier projections of up to GBP11 billion. Lloyds had previously raised its provisions for exposure to the scheme to around GBP2.0 billion from GBP1.2 billion. Now, it says it does not currently believe that any further change is required. However, it adds: "There remain a number of uncertainties including response rates, operational costs and any litigation. The ultimate outcome may also differ dependent upon potential actions by various parties, including legal proceedings and complaints." The lender intends to provide an update "as appropriate" with its quarterly results in April.
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COMPANIES - FTSE 250
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Baillie Gifford Japan Trust's net asset value total return is plus 4.4% for the six months ended February 28, behind the TOPIX benchmark's total return of plus 22.4%. "Performance lagged the benchmark, with several of the portfolio's largest growth holdings detracting despite continued positive operational progress," the trust says. "The largest detractors from relative performance were CyberAgent, GMO Internet Group, Rakuten, SBI Holdings and GA Technologies. The manager remains positive on their long-term prospects, noting improving profitability, restructuring initiatives and the opportunity presented by AI adoption." The portfolio's largest contributor was Sumitomo Metal Mining. Chair Sam Davis notes the various attractions of Japan, including its "deep and liquid equity market which...continues to see growth in new listings". Adds: "Japan also faces well-known demographic challenges which weigh on overall economic growth, a situation which supports the thesis that the growth companies in which your company invests should command a premium valuation over time...That said, arguably this thesis has not been borne out by the company's performance and is potentially further challenged, at least in the near term, by the policy direction of Japan's new prime minister."
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OTHER COMPANIES
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Amazon is in talks to buy Covington, Louisiana-based satellite telecoms group Globalstar seeking to boost its bid to rival Elon Musk's Starlink, the Financial Times reported on Thursday. Citing people familiar with the matter, the London-based newspaper said the two companies were hammering out the more complex points of the acquisition deal. It comes after Musk's SpaceX, which operates the Starlink satellite internet service, filed papers for what could be the largest-ever public stock offering. Starlink says it operates more than 10,000 satellites, offering connectivity to people on the ground. Seattle, Washington-based tech and e-commerce firm Amazon, founded by billionaire Jeff Bezos, is building a competing network called Amazon Leo, which has more than 200 satellites in orbit. Globalstar, whose market value is about USD9 billion, has its own, smaller "low Earth orbit" satellite constellation. The newspaper said one factor complicating the lengthy talks was the fact that Apple holds a 20% stake in Globalstar, meaning that Amazon and Apple also had to negotiate a deal.
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Ryanair says traffic in March has increased 5% to 15.8 million passengers from 15.0 million for the same month in 2025. The airline operated over 88,000 flights in March. Load factor is unchanged at 93%. Rolling traffic for the 12 months to the end of March increases 4% on-year to 208.4 million from 200.2 million passengers, with the load factor again stable at 94%.
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BHP has completed its long-term silver streaming transaction with Wheaton Precious Metals International, a subsidiary of Canadian firm Wheaton Precious Metals. The Australia-based diversified miner has received the USD4.3 billion upfront consideration from Wheaton and going forward will be paid additional ongoing production transfer payments. In return, BHP will supply Wheaton with approximately 33.75% of silver produced at Antamina in Peru and once 100 million ounces has been delivered, the stream will be reduced to 22.5%. "The settlement of the stream is completed via metal credits with no physical delivery of silver to Wheaton," BHP says.
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Wheaton Precious Metals, through Wheaton Precious Metals International, has entered into a definitive precious metals purchase agreement with a wholly-owned subsidiary of KGL Resources Ltd, to acquire a portion of the gold and silver produced at the Jervois Project in Australia's Northern Territory. WPMI will pay KGL total upfront cash consideration of USD275 million, it says, with two installments of USD16 million as early deposit payments. The remaining USD243 million will be paid in four equal installments over the construction period as various conditions are satisfied, Wheaton added. It says attributable gold and silver stream production is forecast to average approximately 5,800 ounces of gold and 770,000 ounces of silver per annum for the first five full years of production, and approximately 5,300 ounces of gold and 590,000 ounces of silver per annum for the life of mine. "The Jervois project represents an important milestone for Wheaton as our first streaming transaction in Australia, one of the world's leading mining jurisdictions," says Wheaton Chief Executive Officer Haytham Hodaly.
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By Emma Curzon, Alliance News reporter
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