Crypto News: The London Rush: Lloyds canters on

Morning, I'm Louise Moon from Bloomberg UK's breaking news team, bringing you up to speed on today's top business stories.

Lloyds kicked off a string of UK bank earnings on a somewhat cheery note: borrowers are a tough bunch.

The UK's biggest mortgage lender beat expectations for third-quarter profit and maintained its guidance for the year. Shares popped about 2%, hitting the highest level since 2020.

It took fewer impairment charges than expected and grew its loan book by 1% in the quarter. Net interest margins (the profitability of its lending) dipped compared to last year, partly due to growing mortgage competition. It would've been worse had it not had structural hedges in place to shield it against falling rates.

It all indicates there's a good amount of resilience among Brits, particularly in housing as interest rates are cut and affordability gradually rises. Barratt Redrow agrees. The homebuilder cited greater mortgage availability and affordability for improving conditions. (Markets Today's Morwenna Coniam has more for you on that below.)

We'll be keeping a close eye on NatWest and Barclays later this week.

What's your take? Ping me on X, LinkedIn or drop me an email at lmoon13@bloomberg.net. Oh, and do subscribe to Bloomberg.com for unlimited access to trusted business journalism on the UK, and beyond.

Sales at Reckitt (behind Durex, Lemsip and Harpic), fell less than expected - just 0.5%, not 1.8%. Investors will welcome the update after it downgraded its full-year outlook in July.

North America and Europe boosted advertising giant WPP's revenue, offsetting sharp declines in a "difficult" Chinese market. Recent business wins with Unilever and Amazon will primarily impact 2025.

A summer of sport and "iconic music stars" passing through the UK (read: Taylor Swift) means Heathrow now expects a million more people will travel through its terminals this year.

London gets a much-needed boost tomorrow as Applied Nutrition lists, but that doesn't mean everything is rosy. Activist investor Gatemore has taken a stake in Watches of Switzerland and wants it to shift its primary listing to the US. Meanwhile, the CEO of UK-founded chip designer Arm said a secondary listing in London was not a priority more than a year after it chose New York for its IPO.

China's Xi and India's Modi to hold first meeting since 2022 today after border deal.
Apple CEO vows to keep investing in China after meeting Beijing's top tech official.
McDonald's burgers linked to severe E. Coli outbreak sickens dozens, kills one.

Here's your daily snap analysis from Bloomberg UK's Markets Today blog:

After recent data has sparked some doubt over housing market confidence, particularly ahead of rate cut uncertainty and the large-looming budget next week, the inaugural report from newly merged Barratt Redrow reflects the broader backdrop of cautious optimism that things are improving.

Building companies are impacted by the same market dynamics in terms of confidence and mortgage affordability for buyers, as well as their own supply chains, rates and inflation, but their projections — or delivery on those — also make a difference to the market fundamentals in creating supply.

An imbalance between supply and demand has long been driving key elements of the housing market, particularly at the affordable end, and while Barratt Redrow says the situation persists, its confidence in the government's commitment to help points to optimism for changing dynamics beyond next week's budget.

— Morwenna Coniam

Check Bloomberg UK's Markets Today blog for updates all day.

With earnings season in full swing, we're spoiled for choice. In particular, watch for updates from Unilever, Anglo American, Barclays and LSE Group.

Where was Europe's biggest stock-trading hub in September, according to new figures? The city has been ahead of London every month since taking the title in July 2021, with the exception of May this year.

Photographer: Ksenia Kuleshova/Bloomberg

[Yesterday's answer: Indigenous Australian senator Lidia Thorpe heckled King Charles on Monday, after he addressed the country's parliament in Canberra.]

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