London's stock market remains a prime target for activist investors drawn to undervalued, underperforming companies. Elliott Management has taken a stake in London Stock Exchange Group, pushing for changes amid AI disruption fears that have hit the data analytics giant's share price. The activist's involvement follows similar campaigns at BP and GSK, highlighting London's vulnerability to US-based pressure.

LSEG responded by boosting its dividend and expanding its share buyback programme, leveraging its strong free cash flow yield of 6% and proprietary data licensing deals with AI firms like OpenAI and Microsoft. However, questions remain about whether the current management has underdelivered on the group's potential. Meanwhile, Johnson Service Group reported a 16.4% rise in adjusted operating profits to £72.5mn, with a 20% dividend increase pleasing shareholders despite higher labour and energy costs.

Greggs faces tougher challenges, with pre-tax profit slumping nearly 20% amid slowing like-for-like sales growth of just 2.4%. The sausage roll maker hopes inflationary pressures will ease but analysts question whether price increases can offset higher costs. With shares trading at 13 times earnings and heavy short interest, some see the valuation as too rich given limited growth prospects.