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London’s FTSE 100 closed 0.05% in the green on Monday after the UK signed a clean energy security agreement dubbed the Hamburg Declaration with Europe to jointly deliver 100 gigawatts of offshore wind projects in shared waters.
“The UK’s energy sector is fully behind the landmark efforts to be announced at the Hamburg North Sea Summit to transform the North Sea into a truly regional clean power hub,” said Energy UK Chief Executive Dhara Vyas. “Delivering the goal of 100 GW of offshore cooperation projects by 2050 will require a relentless focus on maintaining the momentum of UK-[European Union] alignment on electricity market coupling and [emissions trading systems] linkage.”
In corporate news, 3i Group (III.L), down 4.86%, was the worst performer of the blue-chip index. RBC Capital Markets downgraded the private equity and venture capital company’s rating to underperform from sector perform, cutting the price target to 30 pounds sterling from 32.50 pounds.
“We are concerned that [3i Group’s main asset] Action is at risk of moving into a period of diminishing returns, given macro pressures on its customers, increased maturity and competition in major markets (Phase 2 of our Retailing Life Cycle),” analysts said. “This looks somewhat at odds with its premium valuation. We think 3i, including Action, remains a high quality business with a strong management team, but we see more valuation upside for several other stocks in the sector.”
Meanwhile, Babcock International Group (BAB.L) was flat after Deutsche Bank Research highlighted the aerospace and defense company’s robust trading, while trimming its price target to 13.5 pounds from 11.45 pounds with a hold rating.
“The strong performance delivered during 1H26 has continued in Q3 with management confident in delivering the Board’s expectations for FY26, including the 8% EBIT margin target (we note company-compiled FY26 EBIT consensus 409 [million pounds], DBe 411 [million pounds]),” analysts said. “The statement notes that should Indonesian Arrowhead frigate licenses be delivered in-year, this should provide upside (Letter of Intent with Indonesia for Maritime Partnership Programme signed on 20-Jan).”
On the economic calendar, investors this week will assess car production numbers on Thursday, followed by housing prices and mortgage data on Friday.