Upstream Share Discussion Threads

[master rsi] 21/3/2024 22:21

MARKET REPORT
LONDON MARKET CLOSE: FTSE 100 up as investors see Fed, BoE cuts ahead

(Alliance News) - London's FTSE 100 jumped on Thursday, as markets rallied on the back of dovish interest rate decision statements from both the US Federal Reserve and Bank of England.

The Fed statement, which suggested a trio of rate cuts will materialise this year, supported US tech shares. Housebuilders in London surged after some BoE policymakers dropped their hawkish bias.

The FTSE 100 index ended up 145.17 points, 1.9%, at 7,882.55. The FTSE 250 closed up 256.91 points, 1.3%, at 19,741.31, and the AIM All-Share rose 5.05 points, 0.7%, at 740.64.

The Cboe UK 100 ended up 1.8% at 788.77, the Cboe UK 250 rose 1.3% to 17,156.47, though the Cboe Small Companies fell 0.9% at 14,640.33.

In European equities on Thursday, the CAC 40 in Paris rose 0.2%, while the DAX 40 in Frankfurt surged 09%.

Stocks in New York were pushed even higher on Thursday, after Wednesday's rally. The Dow Jones Industrial Average was up 0.8%, the S&P 500 index climbed 0.6%, and the Nasdaq Composite added 0.8%.

"Global markets are welcoming what they see as a dovish statement from the US Federal Reserve, and one that promises rate cuts soon enough, while the Swiss National Bank's unexpected rate cut can only boost investors' conviction that we are at the peak of the interest rate cycle and moving into a welcome phase of reductions in the headline cost of money," AJ Bell analyst Russ Mould commented.

The Fed left interest rates unmoved, as expected, while its latest set of projections still suggest three cuts will come this year. The central bank's federal funds rate range was unchanged at 5.25%-5.50%.

After the Fed decision, the SNB surprised with a 25 basis point cut to its policy rate.

The BoE left bank rate at 5.25% in the afternoon, but the vote split gave equities the confidence to push higher.

There was a marked shift in the voting pattern with eight members of the MPC voting to leave interest rates unchanged, with hawks Jonathan Haskel and Catherine Mann no longer recommending rates be increased.

Analysts at Rabobank commented: "The two-way vote split was a surprise.

"The central bank also mentioned that 'monetary policy could remain restrictive even if bank rate were to be reduced'. Even as the guidance is unchanged, this implies it no longer contradicts the possibility of early rate reductions. The market is now priced for a first cut in June. In our view, June would be too soon. Underlying inflationary pressures are not consistent with 2% inflation. However, the dovish tilt is clear. As such, we bring forward our call for the first cut to August."

The decision lifted shares in the interest rate sensitive housebuilding sector. Berkeley Group closed among the best FTSE 100 performers, up 3.7%.

The dollar, which had tumbled after Wednesday's Fed decision, found its feet as Thursday progressed.

Sterling was quoted at USD1.2665 late Thursday in London, lower than USD1.2717 at the London equities close on Wednesday. The euro stood at USD1.0859, largely unmoved against USD1.0856. Against the yen, the dollar was trading at JPY151.69, up compared to JPY151.61.

Brent oil was quoted at USD85.50 a late in London on Thursday, down from USD85.93 late Wednesday. Gold was quoted at USD2,178.10 an ounce, higher against USD2,157.96. It had spiked to USD2,222.69 after the Fed decision on Wednesday.

XTB analyst Kathleen Brooks commented: "This suggests that while investors pile into stocks and risky assets on the expectation that central banks will hike in mid-year, they are also wary of inflation pressures in the pipeline. Oil prices are backing off slightly today, however the price of Brent crude oil is at its highest level since October 2023. Added to this, the prices of key agricultural commodities like coffee and corn are stronger, suggesting that there could be upward pressure on food prices later this year."

Next shares rose 6.7%. The retailer said statutory pretax profit in the 52 weeks to January 27 rose 17% to GBP1.02 billion from GBP869.3 million the year prior. Next said this included a GBP109 million exceptional gain from the Reiss acquisition, bought last September.

Next said total group sales climbed 5.9% to GBP5.84 billion from GBP5.52 billion with Next full price sales up 4.0%.

Dowlais lost 9.9%.

The automotive engineering spin-off of Melrose Industries, which listed in London back in April, said pretax loss widened in 2023 to GBP522 million from GBP63 million the year before. This resulted from a goodwill impairment of GBP449 million in 2023 compared to no such cost in 2022.

Revenue, however, rose by 5.7% to GBP4.86 billion from GBP4.60 billion a year prior, due to volume growth in its Automotive division, as well as inflation recoveries across the firm.

Looking ahead, Dowlais said it expects its 2024 revenue to be similar to that of 2023, noting expected industry-wide declines in global light vehicle production. It also said it expects its operating profit to be "modestly second half weighted".

XLMedia shares more than doubled, jumping to 13.50 pence from 6.25p. It said that it signed an agreement to sell its Europe and Canada sports betting and gaming assets to Gambling.com Group Ltd.

The London-based global digital media company said the sales are for a total of up to USD42.5 million.

"The group intends to use the proceeds of the transaction to cover asset transition costs, pay the final deferred US acquisition payment and settle outstanding tax provisions and provide working capital to support the North America business while returning cash to shareholders," XLMedia said.

Friday's local corporate calendar has half-year results from pub operator JD Wetherspoon and full-year results from savings and retirement business Phoenix Group Holdings.

The economic diary has a UK retail sales reading at 0700 GMT, after a Japanese consumer price inflation report overnight.

[master rsi] 21/3/2024 22:05

DOW

Finished 269 points higher .....

Stocks rise as Reddit makes stellar debut

US equities finished in positive territory on Thursday, riding on the back of encouraging statements from the Federal Reserve.

Wall Street indices surged to new heights as investor confidence remained robust.

The Dow Jones Industrial Average climbed 0.68% to 39,781.37,
while the S&P 500 advanced 0.32% to close at 5,241.53,
and the Nasdaq Composite added 0.2% to settle at 16,401.84.

[master rsi] 21/3/2024 17:25

How the UPS are performing during last month

[master rsi] 21/3/2024 16:47

How the UPS are performing today

[master rsi] 21/3/2024 16:27

BAE Systems selected by Australian govt to build nuclear powered submarines
(Sharecast News) - BAE Systems said on Thursday that it and ASC Pty Ltd have been selected by the Australian government to build the country's new fleet of nuclear powered submarines.

The contract is part of the AUKUS trilateral security pact between the United States, the United Kingdom and Australia.

BAE said the SSN-AUKUS will be the largest, most powerful and advanced attack submarines the Royal Navy has ever operated and will start to replace the Astute class - which it is building at its site in Barrow-in-Furness in the North West of England - from the late 2030s.

Australia expects to deliver its first SSN-AUKUS submarine in the early 2040s.

BAE chief executive Charles Woodburn said: "We're extremely proud of our role in the delivery of this vitally important, tri-nation submarine programme. Our selection as a partner in Australia, alongside ASC, recognises our role as the UK's long-term submarine design and build partner and as a key player in Australia's maritime enterprise and wider defence landscape.

"Drawing on decades of experience in the UK and Australia, we look forward to working with ASC to develop an enduring, sovereign nuclear-powered submarine building capability for Australia. We're already making good progress on the design and development of the next generation submarine in the UK where we have more than 1,000 people working on the SSN-AUKUS programme and major infrastructure investment underway.

"This latest step will ensure an integral connection between the UK design and the build strategy development in Australia as we work together to deliver next generation military capability as well as considerable social and economic value to all three nations."

[master rsi] 21/3/2024 16:10

GOLD

Today is doing like BITCOIN spiking up and down

From being 25 points up is now 13 points lower $2.173,40

[master rsi] 21/3/2024 15:26

DOW

UP with 299 points

[master rsi] 21/3/2024 13:24

MARKET REPORT
LONDON MARKET MIDDAY: Stocks boosted as BoE keeps rates unchanged

(Alliance News) - Stock prices in London were higher at midday Thursday, after the Bank of England left interest rates unchanged, in a vote which remained split.

Sterling was quoted at USD1.2630 shortly after midday on Thursday, lower than USD1.2717 at the London equities close on Wednesday. Before the decision, the pound was trading at USD1.2753.

The FTSE 100 index was up 113.17 points, 1.5%, at 7,850.55. The FTSE 250 was up 186.65 points, 1.0%, at 19,671.05, and the AIM All-Share was up 4.66 points, 0.6%, at 740.25.

The Cboe UK 100 was up 1.3% at 785.16, the Cboe UK 250 was up 0.8% at 17,075.86, and the Cboe Small Companies was down 0.5% at 14,709.26.

In European equities on Thursday, the CAC 40 in Paris was down marginally, while the DAX 40 in Frankfurt was up 0.5%.

The Bank of England left interest rates unchanged at a 15-year high on Thursday but there was 'dovish' twist to the voting make-up, as two members of the Monetary Policy Committee dropped their call for rates to rise.

At its March meeting, the BoE kept the benchmark bank rate at 5.25%. It is the fifth successive hold, following one in September, which ended a streak of 14 consecutive hikes since December 2021, and three more in November, December and February. The BoE had rapidly increased bank rate from a Covid-19-induced low of 0.10%.

But there was a marked shift in the voting pattern with eight members of the MPC voting to leave interest rates unchanged with hawks Jonathan Haskel and Catherine Mann no longer recommending rates be increased.

Andrew Bailey, Sarah Breeden, Ben Broadbent, Megan Greene, Jonathan Haskel, Catherine Mann, Huw Pill and Dave Ramsden voted to leave interest rates unchanged. Swati Dhingra dissented, sticking to her view that rates should be cut by 25 basis points to 5%.

At the February meeting, six members of the MPC voted to keep interest rates unchanged.

Jonathan Haskel and Catherine Mann pressed the case for rates to be increased by 25 basis points, while Swati Dhingra suggested a 25bps cut, meaning a two-six-one division.

The BoE's interest rate decision follows the US Federal Reserve's on Wednesday.

The Fed left interest rates unmoved, as expected, while its latest set of projections still suggest three cuts will be in the offing this year. The central bank's federal funds rate range was unmoved at 5.25%-5.50%.

Fed Chair Jerome Powell refrained from giving a steer on when interest rates would be cut after projections showed three reductions are still on the cards in 2024.

"It didn't matter that yesterday's decision was to leave rates untouched, the market is focused on what might happen next and any fears that the Fed might become even more stubborn over changing monetary policy appear to have been blown out of the water," said AJ Bell's Russ Mould.

On the back of the decision, gold rallied to a fresh record above USD2,200 on Thursday. Gold was quoted at USD2,207.56 an ounce, higher against USD2,157.96.

Stocks in New York were called higher, after Wednesday's rally. The Dow Jones Industrial Average was called up 0.2%, the S&P 500 index up 0.3%, and the Nasdaq Composite up 0.7%.

The euro stood at USD1.0915, against USD1.0856. Against the yen, the dollar was trading at JPY150.98, compared to JPY151.61.

In the FTSE 100, Next surged 5.2%.

Statutory pretax profit in the 52 weeks to January 27 rose 17% to GBP1.02 billion from GBP869.3 million the year prior. The retailer said this included a GBP109 million exceptional gain from the Reiss acquisition, bought last September.

Excluding this, and brand amortisation, pretax profit climbed 5% to GBP918 million from GBP875 million last year, GBP3 million ahead of previous guidance.

Next said total group sales climbed 5.9% to GBP5.84 billion from GBP5.52 billion with Next full price sales up 4.0%.

3i jumped 5.0%.

The private equity and venture capital investor said its largest investee Action is off to a "strong start" this year, and said its other portfolio companies are showing "overall resilience".

In the FTSE 250, Dowlais lost 5.2%.

The automotive engineering spin-off of Melrose Industries, which listed in London back in April, said pretax loss widened in 2023 to GBP522 million from GBP63 million the year before. This resulted from a goodwill impairment of GBP449 million in 2023 compared to no such cost in 2022.

Revenue, however, rose by 5.7% to GBP4.86 billion from GBP4.60 billion a year prior, due to volume growth in its Automotive division, as well as inflation recoveries across the firm.

Looking ahead, Dowlais said it expects its 2024 revenue to be similar to that of 2023, noting expected industry-wide declines in global light vehicle production. It also said it expects its operating profit to be "modestly second half weighted".

On AIM, Cap-XX surged 56%.

The manufacturer of supercapacitors for portable electronic devices SAID that it has been signed a settlement agreement with Tesla.

"Whilst the terms of the settlement agreement are confidential, they do not involve payments to Tesla that the board of CAP-XX considers to be material to the company," Cap-XX says.

Back in September 2019, Cap-XX alleged that Maxwell Technologies had directly and indirectly infringed on CAP-XX's patents for several capacitor products. Maxwell, a California-based manufacturer of energy storage and power delivery products, was acquired by Tesla in 2019 for USD218 million.

However, last year, Tesla filed a counter complaint against Cap-XX in a US District Court, alleging infringement of two patents by Cap-XX.

Brent oil was quoted at USD85.77 a barrel at midday in London on Thursday, down from USD85.93 late Wednesday.

Still to come on Thursday's economic calendar, there is the weekly US initial jobless claims report. There is also a flash composite PMI reading from the US.

[master rsi] 21/3/2024 13:07

Interest rates being hold

The Bank of England holds interest rates at 5.25% for the fifth time in a row

"The theory behind increasing rates to tackle inflation is that by borrowing becomes more expensive, more people cut back on spending and that leads to demand for goods falling and price rises easing.

But it's a balancing act as high interest rates can harm the economy as businesses hold off on investing in production and jobs."

[master rsi] 21/3/2024 12:48

How the UPS are performing during last month

[master rsi] 21/3/2024 12:22

How the UPS are performing today

[master rsi] 21/3/2024 11:53

Getech Group PLC, 8.4% at 8.95p, 12-month range 4.10p-15.95p.

The geo-energy and green hydrogen company says it has made a "strong" start to 2024. Revenue for the first two months of the year are about 40% ahead of the same period in 2023. In 2024 to date, Getech has secured contract wins totalling GBP900,000, including three new annual software subscription customers as well as the renewal of eight annual licenses for the Globe geoscience platform and software products.

Chief Executive Richard Bennett comments: "Getech has had a good start to 2024, and I am pleased by the improved financial position of the company. Importantly, prospects for the business continue to build as we retain our long-term clients, as well as attract new brands to our growing subscription base."

[apotheki] 21/3/2024 11:33

For all GOLD buffs [like me] out there....from share price Angel....note the last comment!

Gold prices soar over $2,200/oz as Fed Chair Powell reiterates rate cuts this year

Gold prices pushed over $2,200/oz last night in the wake of the FOMC meeting and the updated dot plots.

Spot gold jumped c.2.6% last night after Powell spoke to the Press on the Fed’s ongoing approach to bringing down inflation and supporting growth.

Rates were held at 23-year highs, however traders increased their expectations of a June rate cut to 75% from 50% on Monday.

Powell reiterated his belief that inflation is headed towards 2%, despite two beats in inflation data over January and February.

Benchmark rate settled by officials at 4% by 2025 end and 3% going forward.

Interestingly, the move in gold outweighed that of Treasures, with the 10-year still holding above 4.2%.

Similarly, the dollar weakened by 0.2% but still sits well above December levels when yields fell to 3.75%.

Treasuries towards the front of the curve fell faster in the wake of Powell’s commitment to cuts this year.

Gold ETF inflows remain absent, potentially providing an additional catalyst to gold’s momentum as retail investors seek exposure.

Geopolitical risk continues to bubble, with two major wars ongoing in the Middle East and Ukraine, whilst traders also look to US elections later this year.

Gold : S&P 500 ratio is exactly where it was in 1971 when Bretton Woods ended. Bullish for gold?

[master rsi] 21/3/2024 11:27

Ex-takeaway worker found with more than £2bn Bitcoin in biggest ever sting
Aformer takeaway worker found with Bitcoin wallets worth more than £2 billion has been convicted of a crime linked to money laundering.

Jian Wen, 42, was living in a flat above a Chinese restaurant in Leeds when she became involved in a criminal racket converting the cryptocurrency into assets including multi-million pound houses and thousands of pounds worth of jewellery.

The Bitcoin seizure is thought to be the biggest ever of its kind.

Prosecutors said there was no legitimate evidence for how the Bitcoin had been acquired and allege it is linked to an investment fraud in China.

Another suspect is thought to be behind the fraud but they remain at large.

Wen’s new lifestyle saw her move into a six-bedroom house in north London in 2017, with rent of more than £17,000 per month, where she posed as an employee of an international jewellery business, and moved her son to the UK to attend private school, the Crown Prosecution Service (CPS) said.
From autumn 2017 she tried to buy a string of expensive houses in London but struggled to pass money-laundering checks, and her claims that she had earned millions mining Bitcoin were not believed.

She also travelled abroad, buying jewellery worth tens of thousands of pounds in Zurich and buying properties in Dubai in 2019.

Related video: Bitcoin Plunges Below $61,000, Signaling Crypto Market's $400 Billion Loss (Benzinga)
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On Wednesday, Wen was convicted of one count of entering into or becoming concerned in a money laundering arrangement at Southwark Crown Court. She is due to be sentenced on May 10.

The CPS has obtained a freezing order from the High Court while it carries out a civil recovery investigation that could lead to the forfeiture of the Bitcoin.

Chief Crown prosecutor Andrew Penhale said: “Bitcoin and other cryptocurrencies are increasingly being used by organised criminals to disguise and transfer assets, so that fraudsters may enjoy the benefits of their criminal conduct.

“This case, involving the largest cryptocurrency seizure in the UK, illustrates the scale of criminal proceeds available to those fraudsters.

“Although the original fraudster remains at large, the Metropolitan Police and CPS have successfully secured a money laundering conviction against Jian Wen, an individual employed to launder criminal proceeds.

“The CPS will now work to ensure, through criminal confiscation and civil proceedings, that the criminal assets remain beyond the fraudsters’ reach.

“The CPS is committed to working closely with law enforcement and investigatory authorities, to bring to justice individuals and companies who engage in laundering criminal proceeds through cryptocurrency.”

[master rsi] 21/3/2024 11:09

Cap-XX Ltd, up 76% at 0.34 pence, 12-month range 0.058p-2.90p.

The manufacturer of supercapacitors for portable electronic devices says that it has been signed a settlement agreement with Tesla Inc. "Whilst the terms of the settlement agreement are confidential, they do not involve payments to Tesla that the board of CAP-XX considers to be material to the company," Cap-XX says.

Back in September 2019, Cap-XX alleged that Maxwell Technologies had directly and indirectly infringed on CAP-XX's patents for several capacitor products. Maxwell, a California-based manufacturer of energy storage and power delivery products, was acquired by Tesla in 2019 for USD218 million. However, last year, Tesla filed a counter complaint against Cap-XX in a US District Court, alleging infringement of two patents by Cap-XX.

[master rsi] 21/3/2024 10:26

GOLD 2,209

Got moving higher once it passed $2,000 this morning

[master rsi] 21/3/2024 10:11

RBC Capital downgrades Redrow to 'sector perform'
(Sharecast News) - RBC Capital Markets downgraded Redrow on Thursday to 'sector perform' from 'outperform' following a period of outperformance and the fact the share price is now linked to that of Barratt Developments.

The bank, which left its price target unchanged at 750p, said that when Barratt made its play for Redrow at 1.23x P/B it did not believe the offer reflected the true value of Redrow's business.

"At the time we noted that for more than 70% of its listed life Redrow had traded at a higher valuation than the offer made by Barratt," it said.

"Six weeks on and no other bidder has thrown their hat in the ring. It seems to us therefore that Redrow's share price is, for now, linked to that of Barratt's."

RBC pointed out that Barratt's shares have underperformed the sector since the announcement of the proposed takeover.

"This surprises us as we view Barratt's plan to buy Redrow as a very good one and the price more attractive to Barratt's shareholders than Redrow's," it said. "Barratt offers a liquid way to play the UK housing market, but so do Persimmon and Taylor Wimpey, but without the distortion/disturbance of a major acquisition."

RBC said the deal is likely to complete.

"Whilst our analysis and comparison of Barratt's and Redrow's competitive positioning...is not as detailed as that being completed by the Competition and Markets Authority, we do not see any significant reasons for the transaction to be prevented, there is limited overlap of sites, and therefore the impact on consumer choice in local housing markets will not be material in our view."

The CMA announced last week that it was taking an initial look into Barratt's £2.52bn takeover of Redrow.

The regulator said it was seeking initial views on how the deal could impact competition in the UK. Its invitation to comment closes on April 2 after which it will decide whether to launch a full investigation.

[master rsi] 21/3/2024 09:44

MARKET REPORT
LONDON MARKET OPEN: New York rally extends to London ahead of BoE

(Alliance News) - Stock prices in London opened higher on Thursday, following in New York's footsteps.

Stocks on Wall Street got a boost on Wednesday, after the US Federal Reserve was surprisingly dovish and left its three rate cuts unchanged from the December dot plot.

Eyes now turn onto the Bank of England which will announce its own interest rate decision at midday. Markets are expecting the central bank to keep rates unchanged, once again.

The FTSE 100 index opened up 93.17 points, 1.2%, at 7,830.55. The FTSE 250 was up 209.40 points, 1.1%, at 19,693.80, and the AIM All-Share was up 2.40 points, 0.3%, at 737.99.

The Cboe UK 100 was up 1.1% at 783.57, the Cboe UK 250 was up 0.9% at 17,099.45, and the Cboe Small Companies was down 0.2% at 14,744.52.

In European equities on Thursday, the CAC 40 in Paris was up 0.5%, while the DAX 40 in Frankfurt was up 0.8%.

The Fed left interest rates unmoved, as expected, while its latest set of projections still suggest three cuts will be in the offing this year. The central bank's federal funds rate range was unmoved at 5.25%-5.50%.

Fed Chair Jerome Powell refrained from giving a steer on when interest rates would be cut after projections showed three reductions are still on the cards in 2024.

"I really don't have anything for you" on any specific meeting call, he said, stressing decisions would be made on a meeting-by-meeting basis.

On the back of the decision, gold rallied to a fresh record above USD2,200 on Thursday as traders welcomed the Fed signal that it would cut interest rates three times this year. Gold was quoted at USD2,197.22 an ounce, up against USD2,157.96.

"Yesterday’s Fed decision was such a relief for the market, where the fear of seeing the Fed turn hawkish was reigning. The probability of a June rate cut spiked past 75% after the meeting from around 60% on Monday," said Ipek Ozkardeskaya at Swissquote Bank.

The relief was felt globally, with stocks rallying globally.

In Japan on Thursday, the Nikkei 225 index in Tokyo was up 2.0%. In China, the Shanghai Composite closed down 0.1%, while the Hang Seng index in Hong Kong was up 1.9% in late dealings. The S&P/ASX 200 in Sydney closed up 1.1%

Eyes now turn to the Bank of England.

The BoE will announce its latest interest rate decision at midday on Thursday. Markets are expecting the central bank to keep rates unchanged.

The decision follows some softer-than-expected inflation data, which was released Wednesday.

The consumer price index rose 3.4% in February from a year before, having increased 4.0% annually in January.

Inflation had been expected to decelerate to 3.6%, according to FXStreet-cited market consensus, meaning that the reading was below expectations.

Already on Thursday, markets got a surprise from the Swiss National Bank.

The SNB lowered its policy rate to 1.5% from 1.75%. In December, the bank had left rates unchanged.

The move was a surprise to markets. According to FXStreet, markets were expecting the SNB to keep rates unchanged.

"The easing of monetary policy has been made possible because the fight against inflation over the past two and a half years has been effective. For some months now, inflation has been back below 2% and thus in the range the SNB equates with price stability. According to the new forecast, inflation is also likely to remain in this range over the next few years," the central bank said.

The pound was quoted at USD1.2762 early on Thursday in London, higher compared to USD1.2717 at the equities close on Wednesday. The euro stood at USD1.0895, higher against USD1.0856. Against the yen, the dollar was trading at JPY151.42, lower compared to JPY151.61.

In the FTSE 100, Next rose 3.8% in early trade.

The clothing and homewares seller reported that revenue in the 52 weeks ended January 27 rose by 9.1% to GBP5.49 billion from GBP5.03 billion a year earlier. Pretax profit jumped 17% to GBP1.02 billion from GBP869 million.

Next recommends a final dividend of 141p, bringing the total dividend to 207p, up from 206p.

"In the context of the wider economic environment, the year to January 2024 was a very good year for Next and the business materially outperformed our initial expectations," commented Chair Michael Roney.

In the FTSE 250, Energean rose 4.6%.

In 2023, the hydrocarbon exploration and production company said revenue surged 93% to USD1.42 billion from USD737.1 million recorded a year earlier.

Pretax profit in the year climbed to USD344.2 million from USD107.0 million.

Virgin Money UK edged 2.5% higher.

Virgin Money UK and Nationwide said they have agreed a takeover offer, with the terms being the same as announced earlier this month.

Earlier in March, Nationwide said it had reached a "preliminary" agreement to buy Virgin Money UK for GBP2.9 billion in a deal that would create the second largest provider of mortgages and savings in the UK.

The all-cash offer is worth 220 pence per Virgin Money share, comprising 218p cash plus a proposed 2p dividend to be paid by Virgin Money prior to completion.

Amongst London's small-caps, Pollen Street shot up 15%.

The London-based asset manager reported that its assets under management climbed by 36% to GBP4.2 billion at December 31, up from GBP3.4 billion a year earlier. Pretax profit climbed to GBP43.1 million from GBP26.8 million.

Pollen Street also announced a GBP30 million share buyback.

Brent oil was quoted at USD86.21 a barrel early in London on Thursday from USD85.93 late Wednesday.

Still to come on Thursday's economic calendar, as well as the BoE decision, there are a slew of flash composite purchasing managers' index readings, including the eurozone at 0900 GMT, the UK at 0930 and the US at 1345.

[master rsi] 21/3/2024 09:20

UK public-sector borrowing dropped in February

(Sharecast News) - Public-sector borrowing in the UK dropped significantly in February and was down year-on-year for the fourth straight month, according to figures released on Thursday by the Office for National Statistics.

Net borrowing excluding public-sector banks totalled £8.4bn last month, £3.4bn less than in February 2023 and around half of that in February 2021 during the Covid pandemic.

Data released last month showed that net borrowing was in surplus by £16.7bn in January, the largest surplus since monthly records began and more than double the surplus of January 2023. Tax receipts in the month of January are usually higher than the rest of the year as a result of the self-assessment deadline.

Meanwhile, for the financial year to February 2024 cumulatively, borrowing totalled £106.8bn, some £4.6bn less than the same 11 months the previous year - the lowest for four years in nominal terms, the ONS said.

Public-sector net debt excluding public-sector banks increased to £2.66bn by the end of February, up £157.4bn from February 2023. As such, debt as a percentage of GDP rose to 97.1% , up 2.3 percentage points from a year earlier.

[master rsi] 21/3/2024 08:57

Centamin holds outlook as production rises 2%

(Sharecast News) - Gold miner Centamin said its outlook for 2024 remained unchanged as it delivered annual production in line with guidance despite local inflationary cost pressures.

The company on Thursday said gold production rose 2% to 450,058 ounces and said its all-in sustaining costs of $1,205 per ounce sold were a guidance-beating 14% improvement on 2022.

Adjusted core earnings rose 25% to $398 million, at a 45% margin, up from 40% in 2022.

Annual capital expenditure of $204m was below guidance of $272m due to cost savings, lower capitalisation of costs and changes to equipment rebuild schedules.

Centamin said its Sukari mine in Egypt had been repositioned towards consistently delivering 500,000 ounces per annum over long-term and said connection to the grid using solar power would take more costs out of the business.

A final dividend of 2 cents a share was declared, equating to $23m.

[master rsi] 21/3/2024 08:40

Nationwide, Virgin Money agree terms of £2.9bn deal

(Sharecast News) - Virgin Money has formally agreed to be taken over by Nationwide Building Society in a £2.9bn deal.

The news on Thursday confirmed a preliminary agreement announced on 7 March.

Under the terms of the deal, Virgin shareholders will receive 220p per share, which is a 38% premium to the closing share price the day before the offer was announced. This comprises 218p per share in cash and a 2p dividend to be paid in FY24.

The acquisition will create a combined group with total assets of around £366.3bn and total lending and advances of approximately £283.5bn, representing the second-largest provider of mortgages and savings in the UK.

Virgin Money chairman David Bennett said: "The board of Virgin Money believes that this strategic transaction recognises the strengths and opportunities in our business. We're pleased to recommend the terms agreed with Nationwide, which deliver an attractive premium for our shareholders in cash and reflect the group's strong future prospects, combining two complementary businesses."

[master rsi] 21/3/2024 08:25

FTSE

Well up with 88 points after the DOW upsurge last night

[master rsi] 20/3/2024 23:37

ReNeuron appoints administrators as rescue talks fail

ReNeuron Group PLC - Brigdend, Wales-based stem cell and exosomes technology company - Appoints Cork Gully LLP as administrators. Says talks with creditors to establish the solvency of the business, have taken place, with a particular focus on finding solutions that would allow the group to continue trading on a lower cost model.

However, to date, these discussions have not progressed sufficiently to establish the precise solvency status of the business. Therefore, due to this increased financial uncertainty the decision has been taken to appoint administrators.

Stresses discussions with potential investors, partners and creditors will remain open throughout the administration process.

[master rsi] 20/3/2024 22:43

MARKET REPORT
LONDON MARKET CLOSE: FTSE 100 treads water while Kering weighs on CAC

(Alliance News) - London's FTSE 100 finished the day largely as it started it, enduring an uninspiring session on Wednesday, with the latest Federal Reserve decision about an hour away.

The pound, meanwhile, clawed back some earlier losses after a softer UK inflation reading put the Bank of England in focus.

The FTSE 100 index ended down just 0.92 of a point at 7,737.38. It had been 0.3% lower in morning trade, however.

The FTSE 250 had a more stellar day, rising 51.59 points, 0.3%, to 19,484.40. The AIM All-Share rose just 0.03 of a point to 735.59.

The Cboe UK 100 edged up slightly to 774.95 points, the Cboe UK 250 rose 0.4% to 16,941.06, and the Cboe Small Companies fell 0.3% at 14,777.61.

In European equities on Wednesday, the CAC 40 in Paris was down 0.5%, with its luxury retailers ending lower, though the DAX 40 in Frankfurt ended up 0.2%.

In New York, the Dow Jones Industrial Average, S&P 500 and Nasdaq Composite all traded a touch lower.

The Fed announces its interest rate decision at 1800 GMT. Eyes will also be on the latest summary of economic projections, also released ahead of a press conference with Chair Jerome Powell.

"It would only take two Fed officials to shift their thinking for the median Dot to move to 50bp from 75bp of rate cuts for this year. The Fed Dots are important for FX in that they help determine market pricing of short-term dollar interest rates and dollar pricing in general. The dollar sell-off seen late last year was driven by investors falling over themselves to price an aggressive 2024 Fed easing cycle," analysts at ING commented.

"Going into tonight's FOMC meeting, market expectations are now hovering around 75bp of cuts for this year. Arguably, those Fed Dots are proving a floor for those expectations. However, were the SEP to show a median expectation of just 50bp of cuts, that floor would drop and both short-term US interest rates and the dollar would rise."

The pound was quoted at USD1.2717 late on Wednesday in London, largely unmoved from USD1.2719 at the equities close on Tuesday. It had traded as low as USD1.2684 earlier Wednesday. The euro stood at USD1.0856, down slightly against USD1.0860. Against the yen, the dollar was trading at JPY151.61, markedly higher compared to JPY150.76.

On Wednesday, figures from the Office for National Statistics showed the consumer price index rose 3.4% in February from a year before, having increased 4.0% annually in January.

UK inflation had been expected to decelerate to 3.6%, according to FXStreet-cited market consensus.

Lloyds Banking analysts commented: "While the overall rate of service sector inflation slowed to 6.1% y/y from 6.5% – its softest since January 2023 – it should be noted that the outturn was bang in line with the Bank of England's expectations. Ahead of tomorrow's policy announcement, that suggests that members of the Monetary Policy Committee are likely to view that underlying inflation trends in the UK are progressing as they expected (not better, not worse), likely resulting in a cautious tone being adopted in the minutes and the need to see more progress being made before they feel comfortable in cutting interest rates."

The Bank of England decision is at midday on Thursday. Elsewhere, there are a slew of flash composite purchasing managers' index readings, including the eurozone at 0900 GMT, the UK at 0930 and the US at 1345.

In London on Wednesday, shares in sectors sensitive to interest rates and consumer spending rose, following the favourable UK consumer price index data.

Housebuilder Persimmon rose 2.4%, property investor Segro added 2.3%, while retailer JD Sports climbed 2.8%.

Prudential fell 4.5%, despite an earnings beat, with a tough economic outlook in China still hanging over the stock. The Asia and Africa-focused insurer said annual premium equivalents sales - a measure of the new policies sold - rose 34% to USD5.88 billion from USD4.39 billion in 2022, in line with company-compiled market consensus estimates.

In Hong Kong, APE sales surged to USD1.97 billion from just USD522 million, which Pru said was due to the removal of all pandemic-related restrictions, in particular the reopening of the land border between the financial hub and mainland China.

New business profit jumped 43% to USD3.13 billion from USD2.18 billion - ahead of USD2.94 billion consensus, while adjusted operating profit rose to USD2.89 billion from USD2.72 billion - a slight beat compared to consensus of USD2.88 billion.

"The recent sticky patch for the Chinese economy has undermined the business and, to an even greater degree, sentiment towards it. Today's results should go some way to redressing the balance," AJ Bell analyst Russ Mould commented.

Burberry fell 3.3% in a negative read across after an earnings warning from Paris-listed Kering. Kering plunged 12%, dragging larger peer LVMH 1.4% lower.

Back in London, Johnson Matthey rose 7.8%.

Johnson Matthey said it has agreed to sell its Medical Device Components business to Montagu Private Equity, with the proceeds to fund a share buyback.

The London-based chemicals maker said the disposal for USD700 million in cash is expected to complete around the third quarter of 2024.

Johnson Matthey said it will return GBP250 million of that sum to shareholders by means of a share buyback. The balance will be used to repay some existing debt and for other general corporate purposes.

On AIM, Roadside Real Estate shares jumped more than three-fold to 10.20 pence. It announced a partial sale of its Cambridge Sleep Sciences shareholding for GBP6.0 million, implying "significant upside".

The sale to CGV Ventures 1 will reduce its shareholder to 65% from 75%.

"Roadside originally invested GBP2.7 million in CSS in March 2020, in the form of a loan note, which would remain outstanding following completion of the transaction," Roadside said.

"Roadside intends to use the proceeds from the transaction to reduce the company's debt, following its refinancing."

Brent oil was quoted at USD85.93 a barrel at late in London on Wednesday, down from USD87.91 late Tuesday. Gold was quoted at USD2,157.96 an ounce, up against USD2,155.26.

Thursday's UK corporate calendar has annual results from retailer Next and insurer Direct Line.