Markets division revenue 'to take a hit'

“Given that more financial institutions may still be at risk it seems likely... that Markets revenues will turn negative next year,” analyst Gareth Thomas of Collins Stewart wrote in a note to clients.

Mark Braley of Deutsche Bank noted that 50 per cent of the markets’ revenue are headcount driven and this will now decline faster than previously expected.

He downgraded the stock to “sell” from “buy” and cut his price target to 1,000 pence from 2,400 pence.

“The direct hit to TR Market’s headcount-driven business will be severe,” Braley said.

The markets division includes the news operations as well as financial data and tools for investment banks and other financial firms.

Thomson Reuters shares traded on the London Stock Exchange were 10.63 per cent higher at 1,405 pence at 1230 GMT on Friday. ■