FTSE 100

Monday on the London Stock Exchange: An Anxious Start to the Week

The first trading day of the week began with a noticeable decline in the British market. The FTSE 100 had fallen by 0.61% by the middle of the trading session, reflecting a broader deterioration in sentiment across European markets. Investors are fleeing risk, and they have good reasons to do so.

The conflict in the Middle East has entered a new and more dangerous phase. For the ninth consecutive night, the US military has carried out strikes against Iranian targets. These are no longer isolated operations but a systematic effort to suppress Iran’s military capabilities. Tehran’s response is becoming increasingly aggressive and is spreading to neighbouring countries in the Persian Gulf.

Germany’s DAX lost 0.16%, while France’s CAC 40 declined by 0.05%. However, the British market proved to be the most vulnerable. The reason is the United Kingdom’s dependence on imported energy and the sensitivity of its economy to rising oil prices. As the market is currently demonstrating, oil prices are climbing rapidly.

The Pound Sterling: A Small Island of Stability

Against the backdrop of a falling stock market, the pound sterling has remained relatively resilient. The British currency rose by 0.08% to $1.3466. This modest but symbolic appreciation suggests that investors still have confidence in the British economy despite the external shocks.

The focus is now on the UK political landscape. Andy Burnham is expected to formally take office as prime minister on Monday, and his promise to give households “breathing space” from the rising cost of living has resonated with voters. However, the extent to which this promise can be implemented in practice remains an open question.

Burnham’s position on North Sea oil production is attracting particular attention. US President Donald Trump has already welcomed plans...

Introduction: The Tuesday When the Rats Retreated

Tuesday, London Stock Exchange. Shares of Rentokil Initial PLC, a company known across Britain — from housewives to restaurant owners — unexpectedly came back to life. While the FTSE 100 index remained almost unchanged, Rentokil rose by 2.1%, climbing to 453.5 pence per share. The reason behind the move was an upgrade from Goldman Sachs.

Goldman Sachs, one of the world’s leading investment banks, upgraded Rentokil to “Buy” from “Neutral” and raised its 12-month price target to 590 pence from 515 pence. This implies around 33% upside potential compared with the previous closing price. For investors, this is a signal that the pest control company, which has gone through a difficult period after acquiring Terminix, is finally beginning to recover.

So what has changed? The main factor is improving operating performance in North America, Rentokil’s largest market. After several years of instability related to the integration of Terminix, the company has begun to steadily restore organic growth. Goldman Sachs expects the business to return to mid-single-digit organic growth by 2027, narrowing the performance gap with industry rival Rollins.

The broker also noted that the suspension of the main Terminix integration work reduced operational disruptions, allowing management to focus on improving execution while gradually expanding margins. The group’s EBITA margin is expected to rise to 17.1% in 2027.

Let’s take a closer look at what is really happening with Rentokil, why Goldman Sachs upgraded the stock, and what this means for investors.

What Is Rentokil Initial and Why Does It Matter?

Pest Control and More

Rentokil Initial is not just a company that eliminates rats and cockroaches. It is a global giant in the hygiene and sanitation services sector, operating in dozens of countries around the world. Its services include pest control, workplace hygiene,...