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Posted at 19/11/2024 12:55 by master rsi MARKET REPORTLONDON MARKET MIDDAY: Stocks sink as eurozone inflation rises (Alliance News) - Stock prices in London were lower at midday on Tuesday with markets reportedly losing their risk appetites amid increasing geopolitical tensions. "News of Ukraine utilising its new ability to hit Russia with US missiles has prompted a sharp turn lower for stocks, while the dollar and gold have both risen on safe-haven buying," commented IG's Chris Beauchamp. "The news comes as Putin has once more changed the threshold for Russian nuclear use. While likely more sabre rattling from the Kremlin, it does take the world closer to a terrifying miscalculation. Gains in indices have been wiped out, and investors are once again turning cautious on fears of further escalation." Investors are also starting to scale back expectations for interest rate cuts, AJ Bell's Russ Mould said. "It could be down to sticky inflation, worries about government borrowing levels, or the absence of a long-awaited recession, but investors are starting to cut back on the number of interest rate cuts they are expecting from both the US Federal Reserve and the Bank of England," Mould commented. "A month or two ago, markets were pricing in a Fed funds rate and a Bank of England base rate as low as 3.5% by next Christmas, but 4% now seems to be the current consensus for 12 months' time." He added: "The Fed is expected to cut by 0.25% to 4.50% on 18 December but markets seem less convinced the Bank of England will act the following day, as an easing of policy is currently seen as a 50-50 chance, despite last week's uninspiring print for GDP growth in the third quarter." The FTSE 100 index was down 32.72 points, 0.4%, at 8,076.60. The FTSE 250 was down 55.02 points, 0.3%, at 20,340.39, and the AIM All-Share was down 3.69 points, 0.5%, at 723.86. The Cboe UK 100 was down 0.3% at 812.09, the Cboe UK 250 was down 0.3% at 17,836.57, and the Cboe Small Companies was down 0.1% at 15,793.82. DCC led the FTSE 100, up 2.7%. Jefferies maintained a 'buy' rating for the Dublin-based sales and marketing company, and increased the price target to 7,950 pence from 7,600p. International Consolidated Airlines lost 2.9%, ahead of biggest loser Diploma which lost 7.1%. IAG owns British Airways, which was hit by a "technical issue" on Monday as frustrated customers around the world complained of delays. Reports suggested dozens of BA flights had been grounded after an IT failure hit the airline. In a statement, BA said: "Our flights are currently operating, but are experiencing delays as our teams work to resolve a technical issue affecting some of our systems." Vesuvius led the FTSE 250, rising 7.3%. Burberry led the laggers with a 5.3% decline. Vesuvius, a London-based molten metal flow engineering company is starting a new GBP50 million share buyback programme on Tuesday, which it aims to complete by late May. For smaller caps, Avon Technologies gained 7.3%. The Wiltshire, England-based protective gear company's annual revenue rose 13% to USD275.0 million and Avon swung to pretax profit of USD2.3 million from the prior year's USD20.2 million loss. It also declares a final dividend of 16.1 US cents, up from 15.3 cents. The total dividend however is 23.3 cents, down from 29.6 cents. Gear4Music lost 3.2%. The York-based music equipment online retailer reported a 1.4% decline in total revenue to GBP61.7 million despite 6% growth in the UK market. Revenue fell 12% in Europe and the rest of the world due to a "challenging consumer environment". In European equities on Tuesday, the CAC 40 in Paris was down 1.3%, while the DAX 40 in Frankfurt was down 1.2%. Consumer prices rose as expected in October, data published by Eurostat showed Tuesday. The harmonised consumer price index rose 2.0% on-year in October, in line with the flash estimate, accelerating from 1.7% in September. On a monthly basis, the harmonised CPI rose by 0.3% in October, as expected, compared to deflation of 0.1% in September. The pound was quoted at USD1.2635 at midday on Tuesday in London, lower compared to USD1.2649 at the equities close on Monday. The euro stood at USD1.0563, lower against USD1.0572. Against the yen, the dollar was trading at JPY154.08, down compared to JPY155.01. Stocks in New York were called lower on Tuesday. The Dow Jones Industrial Average was called down 0.6%, the S&P 500 index down 0.5%, and the Nasdaq Composite down 0.4%. Brent oil was quoted lower at USD72.76 a barrel at midday in London on Tuesday from USD73.08 late Monday. Gold was quoted higher at USD2,634.16 an ounce against USD2,610.04 late Monday. Still to come on Tuesday's economic calendar, there are the US building permits and Redbook index releases. |
Posted at 19/11/2024 08:35 by master rsi SBTX 15.75p +1p - Finalisation of commercial agreement with CrodaFinalisation of commercial agreement with Croda Beauty Care for SkinBiotix · Commercial terms finalised on the basis of claims from additional studies · Croda's roll-out and forecasts expected to remain confidential given sensitivity prior to launch · Based on management's baseline expectations for sales under the Croda agreement plus sales from new acquisitions, Dermatonics and Bio-Tech Solutions, the Group is expected to be cash flow positive from FY2025 · Fireside chat between Stuart Ashman, CEO, and Elric Langton, Small Company Champion on Investor Meet Company Platform at 09.00 GMT on Friday 29 Nov 2024 19 November 2024 - SkinBioTherapeutics plc (AIM: SBTX), a life science company focused on skin health, announces that it finalised the commercial terms of its agreement with Croda plc, based on the final testing of the SkinBiotix™ technology. The terms are based on the original agreement with SkinBioTherapeutics being paid tiered royalties based on global sales revenues on any licensed products derived from the partnership. SkinBioTherapeutics signed the original commercial and manufacturing agreement in November 2019. In October 2023, Croda extended its contract with SkinBioTherapeutics by 12 months, in order to run additional clinical studies on the SkinBiotix technology. The aim was to investigate previously unseen beneficial properties which could enhance SkinBiotix's commercial potential with the cosmetics industry. As previously announced, the results of the additional studies were all very positive, and the product is now in the marketing and commercialisation phase. The formal, public launch of SkinBiotix as an active ingredient is to take place at In-Cosmetics Global, the world's largest cosmetic ingredients exhibition, in Amsterdam (April 8-10, 2025). Sales and distribution rights are for the active cosmetic sector alone, leaving SkinBioTherapeutics to focus on further applications of its technology in other sectors. Under the terms of the agreement, all details about formulation, functionality and Croda's financial expectations remain confidential due to the competitiveness of the cosmetics market. However, management is fully confident in Croda Beauty's deep experience in launching new products. Any royalty revenues arising from future sales will be reported to the market at the appropriate time. Based on management's baseline expectations for sales under the Croda agreement and new sources of revenue from recent acquisitions, Dermatonics and Bio-Tech Solutions, management expects to be cash flow positive from FY2025. Management therefore anticipates that no further raises for working capital will be required. Following the meetings with Croda, management can confirm that revenues will be received before year end. Stuart Ashman, CEO of SkinBioTherapeutics will be discussing the recent news flow in a "fireside chat" with Elric Langton of Small Company Champion on Friday 29 November at 09.00 GMT on the Investor Meets Company Platform. For further details, please see below. Stuart Ashman, CEO of SkinBioTherapeutics, said: "We have finalised the commercial terms with Croda which are in line with our long standing expectations and we believe they represent a great deal for the Group. Furthermore, we have been deeply impressed with the experience and track record of the commercial team which includes the launch of multimillion pound blockbuster products such as Matrixyl and we are very confident in our partner's plans for the launch and commercialisation of SkinBiotix. "As the commercial plan unfolds, management's baseline revenue expectations together with the financial contributions from our organic and new inorganic businesses (Dermatonics and Bio-Tech Solutions), mean we do not anticipate having to come back to the market for new funds for working capital purposes." There will be a pre-recorded fireside chat between Stuart Ashman, CEO and Elric Langton of Small Company Champion issued via the Investor Meet Company platform at 09.00 GMT on Friday 29 November 2024. Following the interview, there will be the opportunity for investors to ask questions of Stuart Ashman. The session is open to all existing and potential SkinBioTherapeutics shareholders. Questions can be submitted pre-event via the Investor Meet Company dashboard up until 28 November 2024 or at any time during the session. Investors who already follow SkinBioTherapeutics on the Investor Meet Company platform will automatically be invited. Investors can sign up to Investor Meet Company for free via this link. |
Posted at 15/11/2024 09:33 by master rsi MARKET REPORTLONDON MARKET OPEN: Stocks mixed ahead of US trade and industry data (Alliance News) - Stock prices in London were mostly lower on Friday morning, following the release of GDP, industrial production and other data earlier that morning. UK gross domestic product is estimated to have increased in the latest quarter but edged down for September, data from the Office for National Statistics showed. The trade deficit widened on-month to GBP3.46 billion. Industrial production decreased monthly and annually for September, the ONS also said, missing the market consensus estimates. However construction output is estimated to have risen in the third quarter thanks to a rise in new work. Markets are likely to be receptive to Chancellor Rachel Reeves' first speech at Mansion House yesterday, according to analysts. "Today, we begin to see the real vision behind Reeve's plans, commented Wealth Club's Jonathan Moyes. "Reforming the nation's pension schemes represents a substantial opportunity for the country. By taking a leaf out of the Canadian pension book, Reeves' may just provide the spark the UK economy needs to crowd in investment into key infrastructure projects, the energy transition and scale up enterprises." Moyes added: "Investors in startups could be the real winners from today's announcement. It is no secret that the UK venture capital industry punches well above its weight internationally, but there remains a real need for large institutional investors...Super-si The FTSE 100 index opened down 12.56 points, 0.2%, at 8,058.63. The FTSE 250 was down 40.19 points, 0.2%, at 20,482.62, and the AIM All-Share was up 0.11 points at 729.49. The Cboe UK 100 was down 0.2% at 810.34, the Cboe UK 250 was up 0.1% at 17958.74, and the Cboe Small Companies was up slightly at 15,740.67. Land Securities led the FTSE 100, up 2.0%. The real estate investor lifted its first-half dividend to 18.6 pence, and said it swung to a GBP243 million pretax profit from a GBP193 million loss. It also increased the full-year outlook for EPRA earnings per share. Worldwide Healthcare Trust was among the FTSE 250 losers, down 1.9%. The investor's NAV total return outperformed its benchmark, but it kept the dividend unchanged at 0.7p. More positively, it said it believes the fundamentals of healthcare remain strong, and that its portfolio manager is positive about the outlook for the sector. In smaller caps, Volex lost 11%. The manufacturing company reported strong half-year results, with revenue increasing 30% and pretax profit up 21%, and increased its interim dividend by 7.1% to 1.5p. However, it also reported that TT Electronics has rejected two takeover approaches. The second valued each TT shares at 135.5p. TT Electronics, by contrast, surged 35%. In European equities on Friday, the CAC 40 in Paris was down 0.7%, while the DAX 40 in Frankfurt was down 0.5%. The pound was quoted lower at USD1.2663 early on Friday in London, compared to USD1.2713 at the equities close on Thursday. The euro stood at USD1.0568, down against USD1.0576. Against the yen, the dollar was trading lower at JPY155.46 compared to JPY155.81. In Asia on Friday, the Nikkei 225 index in Tokyo was up 0.3%. In China, the Shanghai Composite was down 1.1%, while the Hang Seng index in Hong Kong was marginally lower. The S&P/ASX 200 in Sydney closed up 0.7%. "Asian markets were mixed overnight, with investors remaining skittish over the potential tariffs from the US which could well be coming their way," said interactive investor's Richard Hunter. "This adds to the already uncertain state of the Chinese economy...The latest economic releases did little to improve the cause. Although retail sales increased by a better than expected 4.8% in October, industrial output and property numbers underlined the scale of the challenges which remain. "Japan was slightly more positive, with economy growing by 0.9% in the latest quarter, despite an interest rate hike in the period, suggesting that the economy can withstand further rate rises which are likely to arrive in the coming quarters." In the US on Thursday, Wall Street ended lower, with the Dow Jones Industrial Average down 0.5%, the S&P 500 down 0.6% and the Nasdaq Composite down 0.6%. Brent oil was quoted at USD71.60 a barrel early in London on Friday, down from USD72.43 late Thursday. Gold was quoted lower at USD2,568.21 an ounce against USD2,576.68. Still to come on Friday's economic calendar, releases include US export and import prices; retail sales and industrial production; and the New York empire state manufacturing index. |
Posted at 14/11/2024 09:35 by master rsi MARKET REPORTLONDON MARKET OPEN: Indexes waver while Burberry plans comeback (Alliance News) - Stock prices in London opened mixed on Thursday as the threat of tariffs from the US continues to loom, and investors eye the US producer price index release later. "European equity markets are expected to open steady as investors brace for earnings from some major European names," commented Hargreaves Lansdown's Matt Britzman. "The FTSE 100 is following suit...as the index struggles to find a platform to accelerate from, hovering around three-month lows. "Alongside results in the UK from big names like Burberry and Aviva, investors will also have one eye on UK GDP data out tomorrow where 0.2% growth is expected." Also in the UK, data from the Royal Institution of Chartered Surveyors showed signs of improvement in the housing market. A net balance of 16% of property professionals reported house prices rising in October, and a 12% balance saw fresh buyer inquiries rising. However, demand appears to be outweighing supply in the rental market. Also, the government is announcing plans to pool assets from 86 local government pension scheme authorities into "megafunds" worth around GBP500 billion through a new pension schemes bill next year. Consolidating the assets into a handful of funds run by professional fund managers will allow them to invest more in assets such as infrastructure, supporting economic growth and local investment on behalf of the 6.7 million public servants, the government said. The FTSE 100 index opened down 1.03 points, almost flat, at 8,029.30. The FTSE 250 was up 11.21 points, 0.1%, at 20,370.42, and the AIM All-Share was down 0.47 points, 0.1%, at 728.82. The Cboe UK 100 was marginally lower at 807.42, the Cboe UK 250 was up 0.1% at 17,808.99, and the Cboe Small Companies was down 0.2% at 15,878.99. Spirax led the FTSE 100, rising 4.2%. The thermal energy and fluid technology firm reported strong organic sales growth in the ten months to October 31, despite a tepid market backdrop where conditions "remain challenging", especially in China. It said the full-year outlook remains unchanged, expecting a mid-single digit rise in organic revenue. Aviva was in third place, rising 3.4%. In a trading update it said its third-quarter performance was "very strong", and that it is confident in achieving the operating profit target of GBP2 billion by 2026. The insurer also expects "strong growth momentum" to continue in its Wealth division. Burberry led the FTSE 250, jumping 14% despite reporting an interim loss and revenue decline, with no dividend. The luxury retailer said it has suspended dividend payments for financial 2025 to "maintain a strong balance sheet and our capacity to invest in...long-term growth". However, the firm also unveiled its official new strategic plan, titled 'Burberry Forward', which includes attracting a broader base of customers to improve its performance and driving "long-term value creation". At the other end, Keller lost 11%. The geotechnical engineering company said full-year outlook remains in line with expectations, but that its year-end net debt to Ebitda leverage ration looks set to miss the 0.5x to 1.5x target range. It has also hired Carl-Peter Forster as its non-executive chair. The current chair of Vesuvius and Chemring, Forster is expected to replace Keller's incumbent Peter Hill in March. In smaller caps, Deltic Energy surged 26%. The investor in UK offshore oil & gas assets has entered the second term of Licence P2437 at the Selene prospect, and expects first gas in 2028. Licence operator Shell is backing the joint venture's next development phase, Deltic said. The company said it expects net present value of USD61 million for Selene after tax, with a 34% internal rate of return. In European equities on Thursday, the CAC 40 in Paris was up 0.3%, while the DAX 40 in Frankfurt was up 0.7%. The pound was quoted lower at USD1.2671 early on Thursday in London, compared to USD1.2714 at the equities close on Wednesday. The euro stood at USD1.0534, down against USD1.0568. Against the yen, the dollar was trading higher at JPY155.91 compared to JPY155.24. "Despite the recent dip in USD/JPY, the pair's upward trend remains intact in the short to medium-term," noted XS.com's Rania Gule. "The dollar gains support from market expectations that the new fiscal policies of [Trump's] administration will lead to inflationary pressures. Policies such as protectionism, high tariffs, and tax cuts may drive domestic spending, supporting inflation and reducing the pressure to cut rates." In Asia on Thursday, the Nikkei 225 index in Tokyo was down 0.5%. In China, the Shanghai Composite was down 1.4%, while the Hang Seng index in Hong Kong was down 2.0%. The S&P/ASX 200 in Sydney closed up 0.4%. In the US on Wednesday, Wall Street ended mixed, with the Dow Jones Industrial Average up 0.1%, the S&P 500 up 1.39 points, and the Nasdaq Composite down 0.3%. According to Deutsche Bank Research analysts: "The past 24 hours saw investors growing more confident about a December rate cut after US CPI was in line with expectations. Admittedly, the report wasn't actually that good compared with some recent months, as monthly headline CPI was the fastest in six months, and core CPI was still a bit faster than the Fed would ideally like. "This helped to reassure investors that the Fed was still on a path towards at least a cut in December, but long-end yields rose to multi-month highs, as fears about upcoming tariffs and a potential re-acceleration of inflation lingered." Brent oil was quoted at USD72.39 a barrel early in London on Thursday, edging higher from USD72.32 late Wednesday. Gold was quoted at USD2,556.60 an ounce, falling against Wednesday's USD2,591.88. Still to come on Thursday's economic calendar, the US releases jobless data alongside the PPI read. Also, there are data releases from the eurozone and comments from European Central Bank President Christine Lagarde. |
Posted at 07/11/2024 23:05 by master rsi another ...MARKET REPORTLondon close: Stocks fall as BoE cuts rates; Fed eyed (Sharecast News) - London stocks ended down on Thursday as investors mulled a rate cut by the Bank of England, waded through a deluge of corporate news and looked ahead to the latest policy announcement from the Federal Reserve. The FTSE 100 ended down 0.3% at 8,140.74, while sterling was up 0.6% against the dollar at 1.2964. The BoE trimmed interest rates for the second time this year. The rate-setting Monetary Policy Committee voted by eight to one to reduce the cost of borrowing by 25 basis points to 4.75%. It was the second cut so far this year, after the MPC trimmed rates for the first time in over four years in August. Thursday's cut was widely anticipated after inflation dropped unexpectedly in September to 1.7%, the lowest rate for more than three years and below the BoE's 2% target. The MPC kept rates on hold at 5% at its last meeting in September. Chris Beauchamp, chief market analyst at IG, said the FTSE was weighed down by the surge in sterling and a gloomy reaction in a number of consumer-focused stocks. "Investors are fretting that the UK's cloudy outlook is returning, and that inflation will make a return early next year," he said. Investors were also looking ahead to the latest policy announcement from the Fed, which was due after the close of UK markets, at 1900 GMT. Derren Nathan, head of equity research at Hargreaves Lansdown, said: "Jerome Powell's also expected to announce a quarter point cut which equates to a whole point cut since rates peaked. "But perhaps of more importance will be comments about the future direction of travel with markets now expecting only two further cuts in 2025, due to the impact of a fresh Trump presidency with tariff hikes and tax cuts which are expected to be inflationary." On home shores, data out earlier from lender Halifax showed that house prices ticked up to a record high in October as mortgages became more affordable. House prices rose 0.2% on the month following a 0.3% increase in September. On the year, prices were up 3.9% in October following a 4.6% increase the month before. The average price of a home rose from £293,305 in September to £293,999. This was above the previous peak of £293,507 set in June 2022, towards the end of the pandemic-era "race for space". Amanda Bryden, head of mortgages at Halifax, said: "That house prices have reached these heights again in the current economic climate may come as a surprise to many, but perhaps more noteworthy is that they didn't fall very far in the first place. "Despite the headwind of higher interest rates, house prices have mostly levelled off over the past two and a half years, recording a 0.2% increase overall. That's a significant slowdown compared to the 21% rise we saw in the equivalent period from January 2020 to the summer of 2022." On the corporate front, there was a veritable avalanche of news for investors to sink their teeth into. Miners were the standout gainers as copper and iron ore prices advanced, with Antofagasta, Glencore, Rio Tinto and Anglo American all higher. IMI rallied as it hailed a "resilient" third-quarter performance and reaffirmed its full-year adjusted earnings per share guidance. RS Group was higher as it said its first-half performance was in line despite more challenging than expected markets. Trainline also advanced as it posted a surge in half-year profits and revenues, after ticket sales across the UK and Europe steamed ahead. Taylor Wimpey nudged up as it backed its full-year outlook, saying it saw steady signs of improvement in customer demand in the second half to date, as mortgage rates reduced and affordability improved. On the downside, Auto Trader fell as it reported a solid increase in revenues and profits for the first half, but said the new car market remains challenging and gave a mixed outlook for used cars despite strong demand. Supermarket chain Sainsbury's lost ground despite reporting increasing momentum in its second quarter and reiterating guidance for strong underlying profit growth this financial year, helped by improving grocery volumes and a stronger performance from Argos in the second half. Hiscox was in the red even as the insurer reported a rise in written premiums for the first nine months of the year as it hailed solid retail growth. BT Group was under the cosh as it cut its full-year revenue guidance and said pre-tax profit fell 10% in the first half. Rolls-Royce fell even as it reiterated its full-year guidance after a solid third-quarter performance, with demand remaining strong across civil aerospace, defence and power systems markets. ITV slid as the broadcaster reported a drop in revenue for the first nine months of the year as its Studios arm was hit by the US actors' and writers' strike. Wood Group shares cratered as the oil services firm announced the launch of an independent review of its business that could lead to restatements and said third-quarter trading in its Projects segment was "disappointing". The company said it was commissioning an independent review by Deloitte "following the exceptional contract write-offs relating to the exit from lump sum turnkey and large-scale EPC reported at the half year 2024 results". This review will focus on reported positions on contracts in Projects, accounting, governance and controls, including whether any prior year restatement may be required. Market Movers FTSE 100 (UKX) 8,140.74 -0.32% FTSE 250 (MCX) 20,635.37 0.92% techMARK (TASX) 4,598.01 0.29% FTSE 100 - Risers IMI (IMI) 1,749.00p 5.42% Antofagasta (ANTO) 1,808.50p 4.75% Anglo American (AAL) 2,479.00p 3.64% Glencore (GLEN) 415.40p 3.53% Rio Tinto (RIO) 5,201.00p 3.13% Weir Group (WEIR) 2,198.00p 3.10% Spirax Group (SPX) 6,570.00p 3.06% BAE Systems (BA.) 1,382.00p 2.90% Scottish Mortgage Inv Trust (SMT) 910.80p 2.59% Sage Group (SGE) 1,032.50p 2.43% FTSE 100 - Fallers Auto Trader Group (AUTO) 783.00p -7.16% Sainsbury (J) (SBRY) 256.80p -4.11% Rolls-Royce Holdings (RR.) 553.20p -3.69% Hiscox Limited (DI) (HSX) 1,029.00p -3.65% BT Group (BT.A) 137.00p -3.59% Airtel Africa (AAF) 96.20p -3.56% Tesco (TSCO) 348.50p -2.46% Reckitt Benckiser Group (RKT) 4,786.00p -2.33% NATWEST GROUP (NWG) 381.10p -2.00% AstraZeneca (AZN) 9,725.00p -1.99% FTSE 250 - Risers RS Group (RS1) 771.50p 13.21% Indivior (INDV) 792.00p 10.61% Burberry Group (BRBY) 866.60p 7.01% Trainline (TRN) 416.60p 5.04% Fidelity China Special Situations (FCSS) 222.50p 4.46% Elementis (ELM) 134.60p 4.39% Rotork (ROR) 316.00p 3.81% The European Smaller Companies Trust (ESCT) 171.60p 3.75% BlackRock World Mining Trust (BRWM) 552.00p 3.56% Kainos Group (KNOS) 796.00p 3.51% FTSE 250 - Fallers Wood Group (John) (WG.) 49.84p -60.00% ITV (ITV) 62.95p -12.93% Ashmore Group (ASHM) 178.80p -10.38% Harbour Energy (HBR) 258.80p -2.83% Endeavour Mining (EDV) 1,601.00p -2.67% Helios Towers (HTWS) 106.00p -2.21% Genus (GNS) 1,920.00p -1.94% Petershill Partners (PHLL) 228.00p -1.74% Lancashire Holdings Limited (LRE) 665.00p -1.64% Hilton Food Group (HFG) 928.00p -1.28% |
Posted at 02/11/2024 23:53 by master rsi SMALL CAP MOVERS: AIM investors breathe sigh of relief after BudgetWILLIAM FARRINGTON - The junior market breathed a sigh of relief this week after Labour Chancellor Rachel Reeves confirmed that an inheritance tax (IHT) exemption on AIM stocks is here to stay. Well partially anyway. Reeves slashed the IHT exemption, which is currently worth 40 per cent, down to 20 per cent. There were fears leading up to her debut Budget that the exemption would be removed entirely, so the softer touch taken by the Chancellor was a sweet enough pill for the market to swallow. The AIM All-Share index surged from 718 to 744 immediately following the Wednesday Budget announcement and closed the week 2 per cent higher. Beneficiary: Analysts highlighted that the government's commitment to social housing development aligns with Galliford Try's portfolio of public and regulated-sector projects +1 According to analysts at brokerage Panmure Liberum, Galliford Try Holdings plc is a likely beneficiary of Reeves' Big-State Budget, which included a substantial £24.6billion boost in capital investment. Analysts highlighted that the government's commitment to social housing development aligns with Galliford Try's portfolio of public and regulated-sector projects. The government also earmarked £6.6billion for education investment for 2026, with £1.4billion set aside for rebuilding over 500 schools, which Panmure Liberum also expects Galliford Try to benefit from. Gaillford Try's shares closed the week 6 per cent higher at 390p per share. For green fertiliser producer Atome plc, it was far from the worst Budget for the junior market. Olivier Mussat, chief executive of Atome, stated: 'Even with the reduction to inheritance tax exemption, AIM will still offer a unique way for investors to support homegrown, early-stage UK companies such as Atome - the only UK-listed green fertiliser producer. 'The recent speculation on tax changes has impacted share prices but now the market has certainty, I expect we will soon see a recovery.' North Sea windfall tax hikes announced in the Budget did nought to dissuade investors in North Sea oil exploration company Jersey Oil and Gas plc, whose shares rolled up 38 per cent this week. Numerous other energy companies made handsome gains too, including United Oil & Gas plc, which added 33 per cent, and Orcadian Energy plc, which added 30 per cent. In the alternatives space, hydrogen storage investor EnergyPathways plc rallied more than 20 per cent, reflecting Reeves' announcement that the UK's clean energy sector will benefit from £3.9billion of funding in 2025‑26. This briefly spurred shares in green hydrogen electrochemical specialist Ceres Power Holdings plc into action too. Ceres immediately bounced 8 per cent higher following the announcement, although a sharp retracement followed suit. Not all energy companies had decent week though. Tlou Energy Ltd shares fell 45 per cent following a quarterly activities report. Its cash position of A$944,000 (£480,000) likely spooked investors. Tlou's mentioned that its largest shareholder is willing to provide a loan facility to the Company up to A$5million to support its gas-production operations. Mosman Oil & Gas, which published its full-year results this week, fell 23 per cent. Chief executive Andy Carroll hailed a 'significant year' for Mosman as it aims to start drilling at its helium projects before the end of 2024. Other energy fallers included Empyrean Energy plc, which fell 17 per cent and Europa Oil & Gas, which was off 12 per cent. AIM-listed translation and localisation services provider RWS Holdings tumbled 15 per cent on Tuesday as it cautioned sales would be flat in the current twelve months marking two years of static revenues. RWS managed to stage a recovery later in the week, but shares failed to escape the red zone come Friday. In the tech space, shares in semiconductor wafer specialist IQE plc slumped 20 per cent after announcing that chief executive Americo Lemos had left the company with immediate effect. IQE has been trading lower in recent weeks following a warning that trading performance will be worse than expected this year. Touchstar plc also warned on profits. The mobile data solutions provider's shares dropped 12 per cent after the company announced that its 2024 revenue is likely to fall below previous forecasts due to delayed orders and slower conversion times. Finally, the AIM delisting of the week was brought to you by Eckoh plc. The board agreed to a takeover by private equity suitor Bridgepoint for a total value of £169.3million. The AIM-listed payment solutions provider, which has been looking for a deal since last year, has been mulling the offer since August. Shares surged 24 per cent following the announcement. |
Posted at 01/11/2024 12:52 by master rsi LONDON MARKET MIDDAY: European shares climb before US jobs data(Alliance News) - European equities were higher solidly on Friday afternoon ahead of a key US jobs report, with the FTSE 100 clawing back some post-budget weakness, and the pound nudging above the USD1.29 mark despite weak UK data. The FTSE 100 index traded up 66.55 points, 0.8%, at 8,176.65. The FTSE 250 was up 49.99 points, 0.3%, at 20,438.95, and the AIM All-Share was up 1.38 points, 0.2%, at 738.48. The Cboe UK 100 was up 0.8% at 820.05, the Cboe UK 250 rose 0.3% to 18,021.80, and the Cboe Small Companies was up 0.1% at 16,441.93. In European equities on Friday, the CAC 40 in Paris and the DAX 40 in Frankfurt each added 0.7%. The pound was quoted at USD1.2918 early Friday afternoon, rising from USD1.2870 at the London equities close on Thursday. It had traded above the USD1.30 mark before Wednesday's budget announcement, however. The UK manufacturing economy made a soft start to the final quarter, falling into contraction territory for the first time since April, numbers on Friday showed. The seasonally adjusted S&P Global UK manufacturing purchasing managers' index dropped to 49.9 points in October from 51.5 in September, also falling short of the flash tally of 50.3. A touch below the 50-point mark that separates growth from decline, Friday's reading suggests the manufacturing sector is in contraction. It is the first time the manufacturing PMI has landed below 50 points since April, S&P Global said. "The UK manufacturing economy continued to face rising headwinds at the start of the final quarter of 2024. A lack of market optimism, slower economic growth, stretched supply chains and concerns about the impacts of possible announcements in the UK budget (which were unknown at the time of the survey) led to reduced intakes of new work and a near-stalling of output growth," S&P Global commented. UK Chancellor Rachel Reeves is seeking to calm the markets and provide reassurance of the nation's stability after her budget borrowing spree sparked jitters. The budget increased state spending by almost GBP70 billion per year – a little over 2% of gross domestic product – funded by increased taxes and borrowing. The scale of extra borrowing – around GBP32 billion a year on average – saw yields on government bonds increase as the market responded to the chancellor's plans. Reeves has played down the impact, saying that "markets will move on any given day" and sought to offer reassurance of her commitment to "economic and fiscal stability". XTB analyst Kathleen Brooks commented: "The selling in the UK bond market on Thursday was mostly concentrated in the short to end of the UK bond market. The 30-year Gilt yield rose at a more moderate pace. "It suggests that pension fund Liability Driven Investment, is relatively protected for now. However, if the sell off continues, or if the 30-year yield plays catch up, then another LDI crisis cannot be ruled out." LDIs which were at the heart of the post-mini-budget turmoil in 2022. A concern at the time was whether some LDI managers amassed enough liquidity to meet margin calls. These types of investment managers assist pension funds in managing risk. A margin call occurs when an investor's portfolio account falls below a required amount. In order to shore things up, they would typically need to deposit cash to get it back above the level required. A broker may also force the investor to sell assets. Managers had been forced into a quickfire sale of UK government bonds, putting more pressure on gilt prices after that mini-budget announcement in 2022. A calmer mood on Friday boosted those that struggled in the fallout of Wednesday's budget. Schroders fell 3.9% on Thursday but was up 4.0% on Friday. Legal & General was 1.4% higher, after a 1.7% decline on Thursday. Stocks in New York are called to open higher. The Dow Jones Industrial Average and S&P 500 are called up 0.4%, while the Nasdaq Composite is called 0.5% higher. US jobs data is released at 1230 GMT. According to FXStreet cited consensus, the US labour market is expected to have added 113,000 jobs in October, down from 254,000 in September. Tickmill analyst Joseph Dahrieh commented: "While a strong ADP report was released, a steep decline in NFP could contribute to dovish sentiment and weigh on the dollar. Conversely, a stronger-than-expect The euro stood at USD1.0866, up from USD1.0859 at the European equities close on Thursday. Against the yen, the dollar was trading at JPY152.72, rising from JPY152.45. In London, Reckitt shares surged 8.5% as investors cheered a vital legal ruling in the US over infant formula, a matter which has cast a dark cloud over the stock in recent months. On Thursday, Reckitt's Mead Johnson, as well as New York-listed Abbott Laboratories, were cleared by a US jury over claims they hid risks their premature-infant formulas can cause a bowel disease that severely sickened a baby boy. It was the companies' first trial win in litigation over the products. The ruling in the Whitfield case in the Missouri State Court was welcomed by Mead Johnson. Barclays on Friday said the latest verdict for the Whitfield will ease investor nerves. "This was the best case scenario for Rec "We think this verdict may make Reckitt more attractive to risk adverse investors." Rising on the FTSE 250, Close Brothers was up 2.3%, looking set to end a seven-day losing streak. Shares had tumbled 25% last week Friday alone, as the merchant bank noted the outcome of a motor finance case that saw a UK court side with consumers. The Court of Appeal ruled in favour of the appeals of three claimants, Johnson, Wrench and Hopcraft, against FirstRand Bank and Close Brothers Group - the so-called Hopcraft case. Secure Trust Bank, also exposed to the motor finance arena, tumbled 17% on Friday, however. The Solihull, England-based retail bank cautioned that it will take longer than expected to recover value from defaulted vehicle finance balances. Secure Trust now expects underlying continuing pretax profit to "fall materially below market expectations by between GBP10 million and GBP15 million" in 2024. Brent oil surged to USD74.18 a barrel early Friday afternoon, rising from USD72.67 at the time of the London equities close on Thursday. Gold was quoted at USD2,752.12 an ounce, up from USD2,742.90. |
Posted at 10/10/2024 20:52 by master rsi MARKET REPORTLONDON MARKET CLOSE: Stocks ease amid weak US jobs data and robust CPI (Alliance News) - Stocks in London ended Thursday lower in a fluctuating session, as investors weighed mixed data in the US. Figures showed that progress in cutting core inflation stalled in September while jobless claims jumped to the highest level in over a year, pushing equities across the pond narrowly into the red. The FTSE 100 index closed down 6.01 points, 0.1%, at 8,237.73. The FTSE 250 ended 114.01 points lower, 0.6%, at 20,708.37, and the AIM All-Share fell 2.13 points, 0.3%, to 734.53. The Cboe UK 100 ebbed 0.1% to 824.98, the Cboe UK 250 closed down 0.5% at 18,182.16, but the Cboe Small Companies climbed 0.7% to 16,724.35. In Europe, both the CAC 40 in Paris and the DAX 40 in Frankfurt ended 0.2% lower. In New York, markets were lower at the time of London's close. The Dow Jones Industrial Average was down 0.3%, the S&P 500 eased 0.2% and the Nasdaq Composite declined 0.1%. The US consumer price index increased 0.2% on a seasonally adjusted basis in September, the same increase as in August and July, figures showed on Thursday. This took the annual rate of growth to 2.4%, down from 2.5% in August, according to the US Bureau of Labor Statistics. However, this was above the 2.3% Bloomberg-cited consensus. The monthly increase was also above the 0.1% rise expected. Core inflation, which strips out volatile food and energy prices, rose 3.3% per cent in the year to September, compared with the 3.2% in the 12 months to August. It had been expected to remain unchanged. The monthly increase in core CPI of 0.3% was also hotter than the 0.2% forecast. Pooja Sriram at Barclays the upside surprise to core CPI was led primarily by stronger-than-expect However, she sticks to her call that the Fed will cut rates by 25bp in November. "Although core CPI surprised to the upside for the second month running, it appeared to be driven by some volatile components, while the sticky shelter category registered material disinflation," she noted. Elsewhere, figures showed new applications for US unemployment aid, a proxy for job cuts, rose more than expected last week, in a sign of a cooling labour market. Initial state unemployment claims totalled 258,000 in the week ending October 5, on a seasonally adjusted basis, the US labour department said. That was the highest level since August 2023 and was above market expectations of 230,000. Analysts at ING said the mixed data would keep the Federal Reserve guessing. "The battle between the US jobs numbers and the inflation data with regards to the outlook for Fed policy remains unresolved. As such policymakers will need to tread carefully, but our base case remains 25bp rate cuts in November and December." Ryan Sweet at Oxford Economics agreed a 25bp rate cut was likely in November. "The larger-than-anticipa While a "little disappointing", it doesn’t knock inflation off its course of reaching the Federal Reserve’s target over time, he added. ING felt the spike in jobless claims could reflect distortions to the "terrible" weather several states have encountered and suggested this could be a theme that generates "significant volatility" over the next few weeks. The dollar firmed after the data. The pound was quoted at USD1.3052 late on Thursday afternoon in London, down from USD1.3084 at the equities close on Wednesday. Kathleen Brooks at XTB noted the market is expecting a 25bp rate cut from the Fed next month. "There is now an 89% probability of a 25bp cut next month, this is up from an 85% chance earlier on Thursday. The market has marginally scaled back their expectations of no rate cut from the Fed at next month’s meeting," she added. Meanwhile, the euro eased to USD1.0929, down against USD1.0948. Against the yen, the dollar was trading at JPY148.47, down compared to JPY149.23. On London's FTSE 100, GSK rose 3.2%, well below early highs, after it said it has agreed to pay USD2.2 billion to settle a large chunk of legal claims linked to heartburn medicine Zantac. Late Wednesday, the London-based pharmaceuticals firm said that it had reached agreements with 10 plaintiff firms representing around 80,000 people who had brought product liability cases against it in state courts, 93% of all claimants. GSK did not accept any liability. GSK also confirmed that it has reached an agreement in principle to pay a total of USD70 million to resolve the Zantac qui tam complaint previously filed by Valisure. UBS called the news "a clear positive, removing a major overhang and uncertainty for investors". "The settlement timing is ahead of market expectations", and the total settlement value is at the "lower end of our expectations", the broker said. Tritax EuroBox added 3.0% after it backed a new takeover bid, this time from private equity firm Brookfield. It withdrew its recommendation for an offer from Segro. Segro shares rose 0.3%. Toronto-based Brookfield will pay 69.0 pence in cash for Tritax Eurobox, a 6% premium to the implied 65.1p value of the Segro offer, based on the latter's closing price on Wednesday, according to Brookfield and Tritax. The Brookfield bid values the equity of London-based Tritax EuroBox at GBP557 million on a fully-diluted basis. The enterprise value, including debt, is GBP1.10 billion. Under the Segro offer, investors in distribution centre investor Tritax EuroBox would have received 0.0765 of a new Segro for every one held in Tritax EuroBox. However, the Brookfield bid is a cash offer. Tritax EuroBox noted "the scope for the implied value of the Segro offer to increase or decrease between now and completion, as compared to a fixed cash amount from Brookfield". Elsewhere, Indivior slumped 19% after a profit warning. The Richmond, Virginia-based specialty pharmaceuticals company warned a competitor product was eating away at the firm's revenue. As a result, it lowered financial 2024 and 2025 guidance. Chief Executive Mark Crossley said: "We are seeing faster than expected initial adoption of the competitive product to Sublocade. This dynamic, together with greater variability in the timing of funding among criminal justice system customers, as well as incremental trade stocking pressure, has resulted in net revenue below our expectations set out in July." Sublocade is a treatment of moderate to severe opioid use disorder. Indivior now expects third quarter Sublocade net revenue between USD187 to USD192 million. For the financial year, it predicts net revenue of USD725 million to USD745 million. In July, the firm had predicted Sublocade full-year revenue of between USD765 to USD805 million. Elsewhere, CAB Payments jumped 7.0% after saying it had received a bid approach from StoneX worth 145 pence per share. The firm said it was "evaluating" the possible offer. Brent oil was quoted at USD78.23 a barrel in London on Thursday, up from USD76.54 late Wednesday. Gold was quoted at USD2,620.84 an ounce late Thursday, higher against USD2,613.66 on Wednesday. Friday's economic calendar sees a trading statement from recruitment firm, Hays. The global economic calendar has UK gross domestic product and industrial production data at 0700 BST, US PPI figures at 1330 BST and the Michigan consumer sentiment index at 1500 BST. |
Posted at 08/10/2024 21:26 by master rsi MARKET REPORTLONDON MARKET CLOSE: Miners slide as Chinese stimulus hopes wane (Alliance News) - London's FTSE 100 nursed heavy losses on Tuesday, as the stimulus-driven rally in China ran out of puff, hitting miners and financial stocks exposed to the region. The FTSE 100 index closed down 113.01 points, 1.4%, to 8,190.61. The FTSE 250 ended down 222.01 points, 1.1%, at 20,631.20, and the AIM All-Share closed down 3.54 points, 0.5%, at 735.07. The Cboe UK 100 fell 1.3% to 820.18, the Cboe UK 250 closed down 1.0% at 18,108.31, and the Cboe Small Companies eased 0.2% at 16,634.72. In Europe, the CAC 40 in Paris closed down 0.7%, while the DAX 40 in Frankfurt ended down 0.2%. China said on Tuesday it was "fully confident" of hitting its growth target this year but held off announcing more stimulus measures, leaving markets disappointed. All eyes were on a news conference led by Zheng Shanjie, head of China's National Development & Reform Commission, on Tuesday, and investors hoped Beijing would unveil more economy-boosting policies. But Zheng and colleagues refrained from laying out any new stimulus, instead reiterating that "the fundamentals of our country's economic development have not changed". Ipek Ozkardeskaya at Swissquote Bank said there is a "growing worry" that the positive impact of the stimulus measures could remain short-lived, and that the measures would be insufficient to reverse the property meltdown, deflation and other structural problems. In London, miners suffered on concerns over falling demand China, a major consumer of metals. Anglo American fell 6.7%, Antofagasta dipped 5.0%, Rio Tinto ebbed 4.8% and Glencore declined 4.6%. Asia-focused insurer Prudential fell 4.5% while HSBC slipped 4.2%. Also weighing on London, Brent oil was quoted at USD77.20 a barrel in London on Tuesday, down from USD80.41 late Monday. The slump in the oil price after recent strength dragged BP down 3.7%, while Shell slid 2.2%. Spirits firms were also on the back foot in Europe after China imposed anti-dumping measures on brandy imported from the EU. Diageo fell 1.7%, while Remy Cointreau fell 6.4% and Pernod Ricard fell 4.2% in Paris. Russ Mould at AJ Bell said: "Importers of brandy coming to China from the EU will now have to put down security deposits of up to 39% of the import value, with it unclear as to when the deposits will be returned. That could push up the price of such products for drinkers, and potentially lead to reduced sales of EU-originated brandy if the consumer seeks cheaper alternatives." Elsewhere in the FTSE 100, housebuilder Vistry plunged 24% after slashing profit guidance. The company said it recently became aware that in its South division, which serves areas such as Kent and the Thames Valley, the total full-life cost projections to complete 9 out of its 46 developments were understated by around 10% of the total build costs. Some of these developments included "large-scale schemes". "To add further context to the 9 developments in question, it is important to note that the group as a whole has around 300 developments," Vistry added. The revised cost outlook cuts expectations for 2024 adjusted pretax profit by GBP80 million. Assumptions for 2025 and 2026 have been cut by GBP30 million and GBP5 million. For 2024, it now expects adjusted pretax profit of GBP350 million, a 16% decline from GBP419.1 million in 2023. "This is a big cut, and we expect the price of the shares to fall significantly today. Investors will be looking to understand how the issue arose, how it is being dealt with and why and how Vistry is confident that the issue is confined to one division," analysts at RBC Capital Markets said. Analysts think the firm now faces the task of rebuilding confidence and reassuring the market that this is a one-off problem. Davy Research said: "The extent to which the group can reassure investors that this is an issue isolated within these sites from one single division will be a significant driver of the stock in the aftermath of this trading update." Imperial Brands fared better, with shares rising 4.1% after reporting trading is in line with expectations as it ramped up plans for returns to shareholders. The Davidoff cigarette and Rizla rolling paper owner said it intends to return around GBP2.8 billion to shareholders in the financial year to September 30, 2025, compared with GBP2.4 billion in the financial year just ended. This will comprise a share buyback of GBP1.25 billion, up 14% on-year from GBP1.1 billion, and cash dividends of around GBP1.5 billion. Imperial Brands intends to "reprofile" the ordinary dividend for the new year. "This will result in two quarterly dividends of 54.26 pence per share to be paid in December 2024 and March 2025," it said. Simon Hales at Citi said the update was "reassuring", with the buyback slightly bigger than the around GBP1.2 billion investors expected and likely to be "well-received". "Moreover, a planned change to quarterly dividends will mean a bigger end of 2024 payout for investors." The mood was brighter in New York where markets rallied after heavy losses on Monday. At the time on London's close, the Dow Jones Industrial Average was up 0.2%, the S&P 500 was 0.8% higher, while the Nasdaq Composite rose 1.2%. Swissquote's Ozkardeskaya thinks one thing that will help traders decide what direction to take is the US CPI, due to be released on Thursday. "If soft enough, Thursday’s CPI update could eventually help calming the Fed doves nerves and prevent the US dollar from stepping into the medium-term bullish consolidation zone against many majors. If not, the no November cut pricing could take off, and that would mean higher yields, a stronger US dollar across the board, weaker other currencies, and some negative pressure on equity valuations," she thinks. The pound was quoted at USD1.3084 late on Tuesday afternoon in London, up slightly from USD1.3082 at the equities close on Monday. The euro eased to USD1.0963, down against USD1.0978. Against the yen, the dollar was trading at JPY148.32, up compared to JPY148.03. Elsewhere, retailers Marks & Spencer rose 1.1%, Tesco climbed 0.2% and Next advanced 0.8% after a upbeat retail sales report. UK retail sales picked up in September as the start of the school year saw a boost for children's clothing, footwear and accessories while food sales growth remained healthy, a survey showed. According to the BRC-KPMG retail sales monitor, retail sales increased by 2.0% year-on-year in the five weeks to September 28, against a growth of 2.7% a year prior. This was above the 3-month average growth of 1.2% and the 12-month average growth of 1.1%. Meanwhile, Senior fell 13% as it warned that the strike at Boeing Co, plus other short-term issues, will hurt its own trading. The Rickmansworth, England-based engineering firm said the strike at US airline manufacturer Boeing, which is now in its fourth week, will have an "inevitable impact on our operating businesses most exposed to this customer, both directly and through its Tier 1 suppliers." As a result, Senior expects Aerospace second half performance to be lower than the first half. It still expects on-year growth in the division, however. In Flexonics, full-year expectations are broadly unchanged, with first half performance higher than the second. But Greencore rose 8.8% after saying full-year profit will be ahead of market expectations after broad-based growth. The Dublin-based food processing firm said profit conversion in the fourth quarter ended September was ahead of expectations. As a result, Greencore anticipates full-year adjusted operating profit to be "ahead of current market expectations," and in a range of GBP95 to GBP97 million. This was raised from GBP90.5 to GBP92.5 million, analysts at Shore Capital noted. Gold was quoted at USD2,608.13 an ounce late Tuesday, down against USD2,649.60 late Monday. Wednesday's economic calendar sees the minutes of the last Federal Open Market Committee meeting. |
Posted at 08/10/2024 11:51 by master rsi MARKET REPORTLONDON MARKET MIDDAY: Weak miners hit FTSE 100 while Vistry slumps (Alliance News) - London's FTSE 100 was sharply lower at midday on Tuesday, with Vistry nursing heavy falls after a profit warning, as concerns over China's stimulus disappointed the market. The FTSE 100 index was down 97.08 points, 1.2%, at 8,206.54. The FTSE 250 was down 198.23 points, 1.0%, at 20,654.98, and the AIM All-Share was down 3.81 points, 0.5%, at 735.00. The Cboe UK 100 was down 1.1% at 821.97, the Cboe UK 250 was down 0.9% at 18,131.13, but the Cboe Small Companies was up 0.2% at 16,693.88. In European equities on Tuesday, the CAC 40 in Paris was down 0.7%, while the DAX 40 in Frankfurt was 0.3% lower. China said on Tuesday it was "fully confident" of hitting its growth target this year but held off announcing more stimulus measures, leaving markets disappointed. All eyes were on a news conference led by Zheng Shanjie, head of China's National Development & Reform Commission, on Tuesday, and investors hoped Beijing would unveil more economy-boosting policies. But Zheng and colleagues refrained from laying out any new stimulus, instead reiterating that "the fundamentals of our country's economic development have not changed". In Hong Kong, the Hang Seng closed down 9.4%. Stephen Innes at SPI Asset Management said: "Tuesday’s press briefing from China’s top economic planner, the National Development and Reform Commission, was supposed to be the big moment, the one where Beijing unleashed a stimulus bazooka. Instead, it was more of a pop gun." "While officials paid lip service to hitting their economic targets and promised vague "further support," there was no meaningful policy boost." "It’s clear the market wanted more, and Beijing’s reluctance to roll out a bigger package is raising serious doubts about the sustainability of this rally. With global risk appetite already on shaky ground, China’s lack of decisive action could be the pin that bursts the bubble." In London, miners suffered on concerns over falling demand China, a major consumer of metals. Anglo American fell 5.5%, Antofagasta dipped 5.2%, Rio Tinto ebbed 4.8% and Glencore declined 3.9%. Asia-focused insurer Prudential fell 5.3% while HSBC slipped 3.7%. The pound was quoted at USD1.3095 at midday on Tuesday in London, rising from USD1.3082 at the equities close on Monday. Elsewhere, the euro stood at USD1.0984, up against USD1.0978. Against the yen, the dollar was trading at JPY147.99, down slightly compared to JPY148.03. Spirits firms were also on the back foot in Europe after China imposed anti-dumping measures on brandy imported from the EU. Diageo fell 2.0%, while Remy Cointreau fell 7.8% and Pernod Ricard fell 3.7% in Paris. Russ Mould at AJ Bell said: "Importers of brandy coming to China from the EU will now have to put down security deposits of up to 39% of the import value, with it unclear as to when the deposits will be returned. That could push up the price of such products for drinkers, and potentially lead to reduced sales of EU-originated brandy if the consumer seeks cheaper alternatives." Elsewhere in the FTSE 100, housebuilder Vistry plunged 22% after slashing profit guidance. The company said it recently became aware that in its South division, which serves areas such as Kent and the Thames Valley, the total full-life cost projections to complete 9 out of its 46 developments were understated by around 10% of the total build costs. Some of these developments included "large-scale schemes". "To add further context to the 9 developments in question, it is important to note that the group as a whole has around 300 developments," Vistry added. The revised cost outlook cuts expectations for 2024 adjusted pretax profit by GBP80 million. Assumptions for 2025 and 2026 have been cut by GBP30 million and GBP5 million. For 2024, it now expects adjusted pretax profit of GBP350 million, a 16% decline from GBP419.1 million in 2023. "This is a big cut, and we expect the price of the shares to fall significantly today. Investors will be looking to understand how the issue arose, how it is being dealt with and why and how Vistry is confident that the issue is confined to one division," analysts at RBC Capital Markets said. Analysts think the firm now faces the task of rebuilding confidence and reassuring the market that this is a one-off problem. Davy Research said: "The extent to which the group can reassure investors that this is an issue isolated within these sites from one single division will be a significant driver of the stock in the aftermath of this trading update." Imperial Brands fared better, with shares rising 4.0% after reporting trading is in line with expectations as it ramped up plans for returns to shareholders. The Davidoff cigarette and Rizla rolling paper owner said it intends to return around GBP2.8 billion to shareholders in the financial year to September 30, 2025, compared with GBP2.4 billion in the financial year just ended. This will comprise a share buyback of GBP1.25 billion, up 14% on-year from GBP1.1 billion, and cash dividends of around GBP1.5 billion. Imperial Brands intends to "reprofile" the ordinary dividend for the new year. "This will result in two quarterly dividends of 54.26 pence per share to be paid in December 2024 and March 2025," it said. Simon Hales at Citi said the update was "reassuring", with the buyback slightly bigger than the around GBP1.2 billion investors expected and likely to be "well-received". "Moreover, a planned change to quarterly dividends will mean a bigger end of 2024 payout for investors." Meanwhile, Senior fell 11% as it warned that the strike at Boeing Co, plus other short-term issues, will hurt its own trading. The Rickmansworth, England-based engineering firm said the strike at US airline manufacturer Boeing, which is now in its fourth week, will have an "inevitable impact on our operating businesses most exposed to this customer, both directly and through its Tier 1 suppliers." As a result, Senior expects Aerospace second half performance to be lower than the first half. It still expects on-year growth in the division, however. In Flexonics, full-year expectations are broadly unchanged, with first half performance higher than the second. But Greencore rose 6.9% after saying full-year profit will be ahead of market expectations after broad-based growth. The Dublin-based food processing firm said profit conversion in the fourth quarter ended September was ahead of expectations. As a result, Greencore anticipates full-year adjusted operating profit to be "ahead of current market expectations," and in a range of GBP95 to GBP97 million. This was raised from GBP90.5 to GBP92.5 million, analysts at Shore Capital noted. Stocks in New York were called higher. The Dow Jones Industrial Average is expected to open up 0.1%, the S&P 500 index is called 0.3% higher, while the Nasdaq Composite is seen rising 0.4%. Brent oil was quoted at USD79.42 a barrel at midday in London on Tuesday, down from USD80.41 late Monday. Gold was quoted at USD2,647.81 an ounce, down against USD2,649.60. |
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