Tesco
The retail giant published a note this morning advising that it was divesting the banking services division. Client books will be transferred to Barclays, who will then continue to provide services to Tesco customers on a white label basis. The deal – worth around £700m to Tesco up front – will see future profits from these operations halved, but it’s also a significant risk mitigation exercise. Shares were just over 1% higher by mid-morning, outperforming sector peers suggesting investors were taking a glass half full view.

Renalytix
The biotec focused on kidney therapies saw its stock jump higher this morning off the back of news that proposals have been tabled to allow more US healthcare providers to access its services. There’s a 45 day consultation period now in play but the 28% jump in share price reflects optimism over the outcome. That said the stock sits well below levels seen a few years ago before a regulatory set-back from the US took a toll.

Bellway
Housebuilder Bellway issued half year results this morning that suggested growth was on the horizon – but you’d need a pretty good telescope to spot it. Signalling a recovery in FY25 as borrowing cost diminish and consumer confidence ticks higher, the company did note that it was well capitalised, leaving it in a good position to bolster its land banks should market conditions be favourable. The stock did dip around 1% lower but managed to recover heading towards midday.