(Bloomberg) -- Hi, I’m Gabi from Bloomberg's UK breaking news team with the latest business news making waves this morning.

Less than five months after losing its place in the FTSE 100 index, British Land is showing dexterity in navigating the UK’s property market turmoil.

The real estate firm’s strategy of focusing on campuses, retail parks and London urban logistics helped it beat expectations in the first half. British Land now expects its full-year performance to come in at the top end of the guidance range.

That gave shares a bump in early trading, but they’re still down almost 20% year to date.

What’s your take? Ping me on X or drop me an email at gmello4@bloomberg.net. 

Key Business News

Vodafone Group Plc is making headway on plans to shed non-core operations. It’s setting up a strategic partnership with US tech consultancy Accenture Plc in a new shared services unit that’s expected to be up and running next spring. Accenture will put in €150 million for an undisclosed minority interest, with Vodafone retaining majority control and sourcing decisions.

BAE Systems Plc affirmed guidance upgraded in August as its order intake surpassed £30 billion year to date. The aerospace and defense giant also said the regulatory process involving its acquisition of Ball Aerospace is “progressing well,” with completion still targeted for the first half of 2024.

Heathrow Airport Holdings handled almost seven million passengers in October, 18% more than the same period a year ago, despite two weeks of heavy rain and storms that disrupted traffic. The UK hub, now the fourth largest airport globally, is gearing up for what it expects to be a busy festive period, with plans for a range of offerings to lure passengers seeking winter getaways or travelling to see their families.

EG Group is splurging out on Tesla’s latest ultra-fast charging units to accelerate the rollout of its EVpoint charging network across the UK and Europe. The first units are expected to be out before year-end.

Asking prices for UK homes marked the biggest November decline in five years, as more sellers accepted the reality of finding buyers in a credit-constrained market, according to Rightmove. The 1.7% drop, the biggest for the month since 2018, lopped more than £6,000 from the value of property being offered for sale, the listings portal said in a report.

Markets Today’s Take

The housing market in the UK is rife with imbalances that are slowly making their way to a happier medium, though remain some way off that yet.

A report from Rightmove shows sellers cut their asking prices in November, by the most for that month in five years. Higher mortgage costs have hit affordability, so sellers have to be realistic about what they can get. Yet the overall number of transactions taking place is still falling, so the balance between buyer and seller has yet to be found.

Rents have surged in recent years and last week we got evidence that potential tenants are starting to baulk at the prices. That’s been exacerbated by buy-to-let landlords selling up as their borrowing costs jumped and regulatory changes made this a less attractive market. There are signs in this morning’s report from Hamptons that this selloff of properties is slowing, but slowing doesn’t mean the supply-demand dynamic is getting fixed. Any balance still feels a way off here too.

— Sam Unsted

For more news and analysis throughout the day, follow Bloomberg UK’s Markets Today blog. 

What’s Next? 

Telecoms giant Vodafone Plc reports second-quarter results on Tuesday, with estimates pointing to more than 4% growth in organic service revenues. The company’s performance in Germany will be in focus, as well as potential changes in its dividend payments following the sale of its Spanish unit to Zegona.Also watch out for Imperial Brands Plc’s full-year earnings report tomorrow morning. The maker of Winston and Gauloises cigarettes has the lowest exposure to next-generation products among peers, which increases its business risks even if it shields the company more on the regulatory side, according to Bloomberg Intelligence.

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