Upstream Share Discussion Threads

[master rsi] 06/12/2024 16:00

TRADING UPDATES: SDX plots AIM exit; Celadon receives funds
SDX Energy PLC - Middle East and North Africa-focused exploration & production - Proposes delisting from AIM and re-registering as a private limited company. General meeting for vote on proposal is on December 31. Cites the "considerable cost and management time and the legal and regulatory burden" associated with the public listing, and "limited liquidity" in its ordinary shares, as well as market volatility. Adds that being unlisted would allow it more flexibility to enter deals with investors and suppliers; allow it to implement decisions more quickly; and give it more opportunities to raise equity and debt financing. Explains: "The majority of the potential investors the company has recently engaged with have expressed a preference to invest in the company if the ordinary shares were not traded on AIM."

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Celadon Pharmaceuticals PLC - London-based pharmaceutical company, which is focused on cannabis-based medicines - Receives balance of GBP150,000 due from subscriber of shares. "We are grateful to the subscriber, and to our other shareholders, for their ongoing support. As we approach year end, I would like to thank the group's employees for their continued hard work to improve the quality of patient's lives through improving the yields on our harvests, furthering the group's intellectual property development and remaining a key player in the UK's developing pharmaceutical cannabis market," Chief Executive Officer James Short says.

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Hemogenyx Pharmaceuticals PLC - London-based biopharmaceutical company focused on treatments for blood diseases - Reports "breakthrough" in delivery chimeric bait receptors to innate immune cells. "The company believes that this innovative approach to myeloid immune cell transduction will significantly accelerate the development of CBR-based product candidates," Hemogenyx says. "The company's first-class scientific team continues to make good progress with CBR and, once sufficient resources are provided, the company anticipates moving new CBR-based product candidates into clinical trials, bringing them closer to addressing unmet medical needs."

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Castillo Copper Ltd - copper exploration company, with projects in Australia and Zambia - Hails "notable find" as exploration planning is underway at Harts Range project in Northern Territory, Australia. A 500 metre long pegmatite was observed, it says. "The geology team consider this to be prospective for uranium-niobium-heavy rate earth mineralisation," Castillo adds.

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Ormonde Mining PLC - natural resources company with assets in Newfoundland and Scotland - Notes investee TRU Precious Metals Corp reports "high grade gold" assays from sampling at Golden Rose asset in Newfoundland. Ormonde owns just over 36% of TRU. "We echo the sentiments of TRU's CEO, Steve Nicol, with the high-grade results returned as part of this programme of rock sampling demonstrating the scale of potential for Golden Rose. This is an extraordinary asset which has been optioned by a major gold company and we believe Ormonde offers heavily undervalued exposure to it. We look forward to updating shareholders in due course on continued progress at Golden Rose," Ormonde Executive Chair Brian Timmons says.

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Crushmetric Group Ltd - Operations in US, Hong Kong and Singapore and makes range of consumer products including pens, chairs and tumblers made by denting aluminium cans - Completes placing of 798,448 new ordinary shares at 12.5 pence each to two individual shareholders. It raises GBP99,806. "The placing proceeds are being used for general working capital purposes," it adds. In addition, it adds that subsidiary Star Collaboration signs settlement agreement in legal proceedings with distributor. Star C will pay GBP166,000.

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Eight Capital Partners PLC - London-based fintech - Signs deal to sell holding in a 1AF2 Ltd bond to SFE Equity Investments Sarl for EUR40 million. "The directors believe that the sale represents a positive step forward for the company, providing additional funding options for investment in the fintech sector and strengthening its balance sheet through the addition of GBP20.4 million of net assets when compared to the company's last published balance sheet as a result of prior impairments to the value of the 1AF2 bond by the same amount," Eight Capital says. It purchased the bonds in 2021. 1AF2 is a subsidiary of Avantgarde Group Spa an Italian private holding company invested in fintech, Eight Capital explained in July.

[master rsi] 06/12/2024 15:15

Shield Therapeutics to raise USD10.0 million via AOP subscription

(Alliance News) - Shield Therapeutics PLC on Friday said it intends to raise USD10.0 million via a share subscription, and launched a retail offer to raise a further GBP1.0 million.

The Newcastle, England-based commercial-stage pharmaceutical company said it has entered into a subscription agreement with AOP Health International Management AG for over 256.4 million new shares priced at 3.00 pence each.

The company is also offering just over 33.3 million shares at 3.00 pence each in a retail offer, with maximum proceeds of GBP1.0 million, conditional on the completion of the subscription offer. This is at a premium of 5.3% to the December 5 close price.

Shield Therapeutics said AOP will only proceed with an equity investment if it obtains a controlling interest as a result. This would require approval from shareholders at a general meeting.

The company warned that if this investment is not approved, it will not receive the funding which would be used to help the company achieve its target of becoming cash flow positive by the end of 2025.

Shield Therapeutics also said that AOP has confirmed it is not prepared to make an offer for the company, which is usually required in these circumstances. The panel has agreed to waive this requirement if it is passed at the general meeting.

The retail offer is expected to close on December 20.

Shares in Shield Therapeutics were up 2.9% to 2.93 pence each in London on Friday afternoon.

[master rsi] 06/12/2024 14:44

DOW

Opening 76 points higher

[master rsi] 06/12/2024 13:42

MARKET REPORT
LONDON MARKET MIDDAY: Blue chips stall but CAC 40 soars on luxury lift

(Alliance News) - London's FTSE 100 traded around opening levels at midday on Friday, lagging European peers, ahead of the key US jobs report.

The FTSE 100 index fell 6.69 points, 0.1%, at 8,342.69. The FTSE 250 rose 37.00 points, 0.2%, at 21,038.06, and the AIM All-Share climbed 1.31 points, 0.2%, at 738.23.

The Cboe UK 100 was down 0.1% at 837.74, the Cboe UK 250 was up 0.3% at 18,540.25, and the Cboe Small Companies rose 0.4% to 16,141.48.

In Europe, the CAC 40 in Paris stormed 1.3% higher despite ongoing political uncertainty while the DAX 40 in Frankfurt climbed a more modest 0.2%.

Kathleen Brooks, research director at XTB said French luxury names are leading the recovery in Paris.

Hermes rose 2.6%, LVMH climbed 3.2% while Gucci owner Kering jumped 5.3%.

"Hopes of a Chinese stimulus package that focuses on the consumer are building, as Beijing officials meet to discuss 2025 growth targets. Added to this, French luxury names are less impacted by domestic political travails as most of their sales are generated overseas. They are likely to be more impacted by Donald Trump winning the US election than by whatever happens to President Macron. Overall, a technocratic government is on the cards, the fiscal can has been kicked down the road and although forging a new budget is a tough endeavour, the organs of French government can roll over the 2024 budget month on month in 2025, and there is no chance of a US-style government shut down," Brooks said.

French President Emmanuel Macron is holding talks with French political leaders on the left and right as he seeks to name a new prime minister and find a way out of France's political crisis.

Macron adopted a defiant tone in an address to the nation late Thursday, 24 hours after Prime Minister Michel Barnier's government was ousted in a historic no-confidence vote.

Macron vowed to name a new prime minister in the "coming days", rejected growing pressure from the opposition to resign and blamed an "anti-republican front" of the hard left and far right for France's woes.

Meanwhile, data showed the eurozone economy grew at the pace expected in the third-quarter of the year.

According to Eurostat gross domestic product expanded by 0.4% in the three months that ended September 30 from the three months that ended June 30. Growth picked up from 0.2% in the second quarter from the first.

Year-on-year, the eurozone economy increased by 0.9% in the third-quarter, accelerating from a 0.5% increase in the second-quarter.

It was the fastest pace of annual growth since the first-quarter of 2023. Quarter-on-quarter growth was the strongest since the third-quarter of 2022.

Investor attention now switches to the US nonfarm payrolls data at 1330 GMT, seen as pivotal in determining whether the Federal Reserve will cut interest rates at its December meeting.

Bank of America expects nonfarm payrolls to rise by 240,000 in November after coming in at just 12,000 in October.

"This above-consensus forecast is driven by expected payback for the temporary drag on payrolls in Oct due to Hurricane Milton and the Boeing strike," it explained.

The FXStreet consensus is for payrolls to increase by 200,000 in November.

BofA estimates that the hurricane took at least 60,000 off October's payrolls, while strikes, which have mostly since ended, accounted for an additional 41,000 drag.

ING said given expectations of a bounce back after last month's weather and strike-hit figure, the market now probably "sees less than 200,000 as a bad number and above 300,000 as a good number."

The pound was quoted at USD1.2763 early Friday afternoon, up from USD1.2753 at the time of the London equities close on Thursday. The euro stood at USD1.0582, up from USD1.0568. Against the yen, the dollar was trading at JPY150.56, up from JPY150.17.

Back in London, shares in FTSE 250-listed Direct Line rose 7.1% after it said it is "minded to recommend" an improved takeover approach from London-based insurer Aviva.

The proposed deal, announced in a joint statement, will see Aviva pay 129.7 pence in cash, and 0.2867 of a new Aviva share for each Direct Line share. Direct Line shareholders also would receive a 5p per share dividend before completion.

Based on Aviva's closing share price before the offer period started in November, the proposal values each Direct Line share at 275p, or around GBP3.6 billion.

Aviva's new plan represents a 10% premium to its initial approach of 250p per share made in November.

Panmure Liberum thinks the revised offer is "good for both sets of shareholders – Aviva has not overpaid and Direct Line shareholders crystalize an attractive return."

Aviva shares eased 0.5%.

Elsewhere in the FTSE 100, Spirax was under pressure, falling 2.0% after JPMorgan downgraded to 'neutral' from 'overweight'.

Also in the red, water suppliers Severn Trent and United Utilities, down 2.4% and 2.0% respectively.

Jefferies downgraded both to 'hold' from 'buy'.

While "cautiously optimistic" about the December 19 Final Determinations for the UK water sector, Jefferies thinks the the risk-reward looks more balanced on United Utilities and Severn Trent at their current valuations."

Morgan Stanley downgraded the European utility sector to 'in-line' from 'attractive'.

"With a finely balanced risk-reward outlook for 2025 amidst multiple uncertainties, we move our sector view to in-line. We prefer electricity networks, and would be selective elsewhere."

National Grid, down 0.6%, remains its top pick.

Housebuilder Berkeley Group slipped 2.5% after its half-year results.

The Surrey, England-based property developer and housebuilder said there was good underlying demand for homes, as it reported revenue increased 7.2% in the six months to the end of October to GBP1.28 billion from GBP1.19 billion a year before.

Pretax profit was down 7.7% in the half-year to GBP275.1 million from GBP298.0 million in the first half of financial 2024.

Berkeley said it is on track to achieve pretax profit guidance of GBP525.0 million for the full-year, and at least GBP450 million for the following year.

It also set out a new ten-year growth strategy to provide a new capital allocation framework.

As part of the plan, Berkeley has identified GBP7.00 billion of free cash flow to invest over the next ten years.

There was good news elsewhere for housebuilders as a survey from Halifax showed UK house prices have risen at their fastest pace in two years.

The average house price was up 4.8% in November from a year prior, the biggest annual jump since November 2022. The average price climbed 1.3% from October to a record GBP298,083, the fifth monthly rise in a row.

Among small-caps Quiz plunged 41%.

The Glasgow, Scotland-based omnichannel fashion brand said it has seen a "marked decline" in traffic both online and in-store in November compared to previous months and the prior year.

Sales in the fourth months to November were down 5.7% to GBP24.9 million.

As a result, the firm warned cash headroom available was lower than anticipated and that existing bank facilities could be fully utilised in the first-quarter of 2025.

It launched a financing and strategic review but anticipates that additional funding will be required in the first-quarter of 2025.

Brent oil was quoted at USD71.40 a barrel early Friday afternoon, falling from USD72.22 late on Thursday. Gold was higher at USD2,638.58 an ounce from USD2,635.59.

[master rsi] 06/12/2024 12:37

How the UPS are performing during last month

[master rsi] 06/12/2024 12:04

How the UPS are performing today

[master rsi] 06/12/2024 11:02

Wheaton Precious Metals acquires gold stream at Ethiopia project


(Alliance News) - Wheaton Precious Metals Corp on Friday said it has a struck a streaming agreement with Allied Gold Corp at the Kurmuk project in Ethiopia.

The Vancouver-headquartered precious metals company said the precious metals purchase agreement with Allied Gold is valued at USD175 million, to be paid by Wheaton in four equal instalments during construction.

Wheaton will buy 6.7% of the mine's payable gold until 22,000 ounces has been delivered, after which it will buy 4.8% of payable gold for the mine's lifetime.

The Kurmuk gold stream is forecast to produce an average of 16,000 ounces of gold per year for the first 10 years of production, with first production expected to begin in mid-2026.

Wheaton Chief Executive Officer Randy Smallwood said: "Wheaton is pleased to announce a streaming agreement with Allied to advance the construction of the Kurmuk project, which is set to be the first commercial gold mine in Ethiopia. This fully permitted, high quality development project offers significant exploration potential, supported by a team at Allied with a proven operating track record. We are excited to partner with Allied to unlock opportunities that empower the local communities and help drive the growth of Ethiopia's emerging metals and mining sector."

[master rsi] 06/12/2024 09:49

MARKET REPORT
LONDON MARKET OPEN: Stocks mixed while house prices hit record high (Alliance News) - Stock prices in London opened mostly lower on Friday, as Prime Minister Keir Starmer attempts to sell his "plan for change".

Starmer made living standards a key target as he outlined his "next phase" on Thursday, saying he wanted to see real household disposable income rise by the next election.

But in an interview with BBC Breakfast, Starmer said: "I want people to feel better off straight away – feel better off in the sense of more money in their pocket, feel better off because they've got a secure job that they know is guaranteed to give them the money they need."

Also on Friday, Halifax reported that the average UK house price hit a new record high of GBP298,083 in November. Property values rose by 1.3% month-on-month, marking the fifth increase in a row, Halifax said.

On an annual basis, house prices increased by 4.8% in November, accelerating from 4.0% growth in October.

Amanda Bryden, head of mortgages at Halifax, said: "Latest figures continue to show improving levels of demand for mortgages...However, despite these positive trends, many potential buyers and movers still face significant affordability challenges and buyer confidence may be tested against a changeable economic backdrop.

"As we move towards the end of the year and into 2025," she continued, "positive employment figures and anticipated decreases in interest rates are expected to continue supporting demand. This should underpin further house price growth, albeit at a modest pace as borrowing costs remain above the average of a few years ago."

The FTSE 100 index opened down 14.89 points, 0.2%, at 8,334.49. The FTSE 250 was up 13.63 points, 0.1%, at 21,014.69, and the AIM All-Share was down 0.22 points at 736.70.

The Cboe UK 100 was down 0.2% at 837.33, the Cboe UK 250 was up 0.1% at 18,510.21, and the Cboe Small Companies was up 16,085.35.

The big news on Friday centres around Aviva, which was down 0.4% on the FTSE 100. On the FTSE 250, Direct Line Insurance rose 7.4%.

Direct Line has agreed to a takeover bid from Aviva worth 275 pence per share, consisting of 129.7p cash and 0.2867 of an Aviva share.

The proposal is a 73% premium to Direct Line's share price on November 27, and 16% above its closing price of 237.80p on Thursday. Aviva has until December 25 to make a firm offer.

J Sainsbury led the FTSE 100, rising 1.2%. The supermarket firm repurchased 947,888 shares at average 266.37p on Thursday. Spirax led the laggers, down 2.1% after JPMorgan cut it to 'neutral' with a price target of 7,800p, down from 9,300p.

Frasers was down 1.4%.

The retailer which owns Sports Direct and House of Fraser said it plans to make a voluntary offer for Norwegian sports retailer XXL ASA at NOK10.00 or around 71 pence per share. Frasers is currently XXL's second-largest shareholder.

The offer values XXL at NOK246.4 million, or about GBP17.4 million.

In European equities on Friday, the CAC 40 in Paris was up 0.4%, while the DAX 40 in Frankfurt was basically flat.

The pound was quoted at up USD1.2763 early on Friday in London, compared to USD1.2753 at the equities close on Thursday. The euro stood higher at USD1.0581, against USD1.0568. Against the yen, the dollar was trading higher at JPY150.33 compared to JPY150.17.

In Asia on Friday, the Nikkei 225 index in Tokyo was down 0.8%. In China, the Shanghai Composite was up 1.0%, while the Hang Seng index in Hong Kong was up 1.5%. The S&P/ASX 200 in Sydney closed down 0.6%.

In the US on Thursday, Wall Street ended lower, with the Dow Jones Industrial Average down 0.6%, the S&P 500 down 0.2% and the Nasdaq Composite down 0.2%.

US data out today includes nonfarm payrolls and consumer sentiment.

Brent oil was quoted at USD71.99 a barrel early in London on Friday from USD72.22 late Thursday.

Gold was quoted at USD2,641.58 an ounce against USD2,635.39.

Still to come on Friday's economic calendar, eurozone GDP and unemployment readings are out later this morning.

[master rsi] 06/12/2024 09:22

Frasers launches bid to take over Norway's XXL

(Sharecast News) - Mike Ashley's Frasers Group said on Friday that it was launching a voluntary offer for all the shares in Norwegian sporting goods retailer XXL that it does not already own at 10 Norwegian kroner per share.

The offer values XXL at approximately NOK246.36m.

Frasers is currently the second largest shareholders in XXL with an interest of just under 26%.

Chief executive Michael Murray said: "Our strategic vision and industry experience position us uniquely to help XXL navigate its current challenges. We are committed to ensuring that XXL reaches its full potential."

[master rsi] 06/12/2024 09:07

Annual rise in UK house prices picks up to 4.8% in November – Halifax
(Alliance News) - The average UK house price hit a new record high of GBP298,083 in November, according to an index.

Property values rose by 1.3% month-on-month, marking the fifth increase in a row, Halifax said on Friday.

On an annual basis, house prices increased by 4.8% in November, accelerating from 4.0% growth in October.

Amanda Bryden, head of mortgages at Halifax, said: "UK house prices rose for the fifth month in a row in November, up by 1.3% in the month – the biggest increase so far this year. This pushed the annual growth rate up to 4.8%, its strongest level since November 2022.

"As a result, the record average house price we saw in October edged higher still, with a typical property now costing GBP298,083.

"Latest figures continue to show improving levels of demand for mortgages, as an easing in mortgage rates boost buyer confidence. However, despite these positive trends, many potential buyers and movers still face significant affordability challenges and buyer confidence may be tested against a changeable economic backdrop.

"As we move towards the end of the year and into 2025, positive employment figures and anticipated decreases in interest rates are expected to continue supporting demand.

"This should underpin further house price growth, albeit at a modest pace as borrowing costs remain above the average of a few years ago."

Northern Ireland continues to record the strongest property price growth, with values rising by 6.8% annually, Halifax said.

House prices in the North West recorded the strongest growth of any region in England, with values up by 5.9%.

Scotland saw a more modest rise in house prices compared with elsewhere in the UK, with a 2.8% annual increase.

Nathan Emerson, chief executive of property professionals' body Propertymark, said: "With interest rates now easing, many buyers will have increased confidence to approach the housing market.

"We are, however, likely to see a spike in homes for sale and those looking to move home, especially across England and Northern Ireland trying to complete before the rises to stamp duty commence from April 2025."

Temporary stamp duty thresholds are set to end from April, with the "nil rate" band for first-time buyers in Northern Ireland decreasing from GBP425,000 to GBP300,000.

Tom Bill, head of UK residential research at Knight Frank, said: "An increase in borrowing costs and the disappearance of sub-4% mortgages in recent weeks means we expect downwards pressure on house prices to intensify next year.

"This sense of temporary strength is reinforced by the fact many buyers are acting ahead of a stamp duty increase next April. The risk that inflation and mortgage rates stay higher for longer means we recently revised down our UK house price forecasts for the next three years. Growth will feel more sustainable once the economy is heading decisively in the right direction."

Alice Haine, personal finance analyst at Bestinvest by Evelyn Partners, said: "The prime minister has doubled down on his pledge to boost living standards during his parliament and build 1.5 million new homes – measures that have the potential to improve people's chances of being able to afford a home.

"But the combined effects of the cost-of-living crisis and the higher tax burden of recent years have already dealt a heavy blow to how much money people have left in their pockets after they have paid tax and accounted for inflation. And house building targets take some time to materialise."

Karen Noye, a mortgage expert at wealth manager Quilter, said: "Recent data from the Bank of England has already pointed to rising mortgage approvals, which reached their highest level since mid-2022.

"Combined with a reduction in quoted mortgage rates, this suggests that buyers are returning to the market, encouraged by the more favourable lending conditions.

"However, affordability remains a critical issue, particularly for first-time buyers who are still grappling with high borrowing costs and larger deposit requirements, factors that have constrained demand over the past year."

Nigel Bishop of buying agency Recoco Property Search, said: "There has been a general uplift in buyer demand in November which impacted on property values and enabled some sellers to achieve their asking price."

Jeremy Leaf, a north London estate agent, said: "Demand continues to be strong, particularly for competitively-priced homes in lower-value areas.

"However, investors hit by higher buying costs are proving unwilling or unable to take on typically smaller one- and two-bedroom homes. On the other hand, confirmation that the stamp duty concession will not be extended has given an opportunity to first-time buyers, especially of such properties, to take advantage.

"That has also given a lift to the rest of the market by releasing second-steppers and connecting chains. However, buyers are taking their time before committing as affordability concerns remain."

Jonathan Hopper, chief executive of Garrington Property Finders, said: "The supply of good quality prime homes for sale is strong, and buyers at this end of the market often find themselves spoilt for choice and able to negotiate hard on the price they pay – and this is keeping prime price rises much more modest."

Here are average house prices in November and the annual increase, according to Halifax. The regional annual change figures are based on the most recent three months of approved mortgage transaction data:

East Midlands, GBP242,282, 3.5%

Eastern England, GBP335,063, 3.6%

London, GBP545,439, 3.5%

North East, GBP175,737, 4.4%

North West, GBP237,045, 5.9%

Northern Ireland, GBP203,131, 6.8%

Scotland, GBP208,957, 2.8%

South East, GBP388,534, 3.4%

South West, GBP304,558, 3.7%

Wales, GBP225,084, 4.1%

West Midlands, GBP257,982, 5.5%

Yorkshire and the Humber, GBP212,385, 4.7%

[master rsi] 06/12/2024 08:39

LONDON BRIEFING: Direct Line accepts Aviva takeover bid
(Alliance News) - The FTSE 100 was called lower on Friday morning, ahead of eurozone GDP and unemployment readings, while in France President Macron has resisted calls to resign despite the prime minister's downfall.

"There is a high risk that on the back of Trump, France and Germany, eurozone growth will come in much weaker than the [European Central Bank's] projections will show," wrote ING's Carsten Brzeski. "The only problem for the ECB to preemptively react to the current political woes is that it could be seen as intervening in national politics on the behalf of France. This is speculation the ECB would clearly rather avoid."

On potential interest rate changes, Brzeski said: "We think that the ECB will be hesitant to really walk the walk on getting ahead of the curve and will cut rates by 25bp next week. To bring a bit more dovishness and to signal that the ECB is not getting cold feet in its quest to get ahead of the curve, we expect the ECB to communicate that it will continue bringing rates towards neutral levels and that it no longer rules out bringing rates into easing territory."

Investors are also waiting for US nonfarm payroll data on Friday afternoon, which could provide further guidance on monetary policy.

Here is what you need to know at the London market open:

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MARKETS


FTSE 100: called down 16.5 points, 0.2%, at 8,332.88

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Hang Seng: up 1.5% at 19,846.61

Nikkei 225: down 0.8% at 39,091.17

S&P/ASX 200: down 0.6% at 8,420.90

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DJIA: closed down 248.33 points, 0.6%, at 44,765.71

S&P 500: closed down 0.2% at 6,075.11

Nasdaq Composite: closed down 0.2% at 19,700.26

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EUR: up at USD1.0571 (USD1.0568)

GBP: down at USD1.2750 (USD1.2753)

USD: down at JPY150.15 (JPY150.17)

Gold: up at USD2,636.61 per ounce (USD2,635.39)

(Brent): down at USD71.68 a barrel (USD72.22)

(changes since previous London equities close)

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ECONOMICS

Friday's key economic events still to come:

11:00 CET eurozone GDP

11:00 CET eurozone unemployment

08:45 CET France current account

08:45 CET France trade balance

08:00 CET Germany industrial production

10:00 CET Italy retail sales

08:30 EST US average weekly hours

08:30 EST US nonfarm payrolls

10:00 EST US Michigan consumer sentiment index

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The UK prime minister insisted he was sticking to his missions as he set out "ambitious" targets for Whitehall, despite claims he was "watering down" promises. In a speech at Pinewood Studios on Thursday, Keir Starmer sought to strike an optimistic note after a challenging five months in power, saying Britain was "broken, but not beyond repair" and could still "do great things". Arguing his government had taken action to "fix the foundations", Starmer set out six "milestones" that he said would allow the public to "hold our feet to the fire" on the missions he set for himself before the election. Chief among them was a promise to deliver higher living standards by the next election, saying growth must be "felt by everyone, everywhere", while insisting his long-term aim was still to make the UK the fastest-growing G7 economy.

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French President Emmanuel Macron vowed to name a new prime minister "in the coming days" after the resignation of Michel Barnier, whose government was toppled by a no-confidence vote in parliament. In an address to the nation, Macron rejected calls from opponents to resign, saying he would remain president "fully" until the end of his tenure in 2027. He also lashed out at the French far right and hard left for uniting in an "anti-republican front" to bring down the government. "I will appoint a prime minister in the coming days," he said, adding this person would be charged with forming a "government of general interest" with a priority of passing a budget. Defiantly rejecting resignation calls, he added: "The mandate that you gave to me democratically [in the 2022 elections] is a five-year mandate and I will exercise it fully, right up to the end."

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US President-elect Donald Trump on Thursday said the right-wing venture capitalist David Sacks would become "the White House AI & Crypto Czar," a post on his social media platform Truth Social showed. Sacks is a confidant of Elon Musk. Trump called artificial intelligence and cryptocurrency "two areas critical to the future of American competitiveness." He also said that Sacks "will safeguard Free Speech online, and steer us away from Big Tech bias and censorship." Sacks will also be charged with creating a legal framework for the crypto industry so "it has the clarity it has been asking for and can thrive in the US". The multi-billionaire Sacks will also head the future president's advisory board on science and technology. Since Trump's election victory on November 5, bitcoin investors have been celebrating, as the currency has soared from USD70,000 before the US election in November to a high of more than USD100,000 this week.

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"The conditions are not in place" to sign the EU trade agreement with South America's Mercosur bloc, Italian government sources said, denting proponents' hopes that a deal could be imminent. Italy joined France in opposing the trade pact just as European Commission President Ursula von der Leyen landed in Montevideo to meet with South American leaders at a summit of Mercosur, which groups Argentina, Brazil, Paraguay and Uruguay. "The Italian government considers that the conditions are not met to sign up to the current text," said the sources, calling for greater protection for the farming sector.

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Spanish Prime Minister Pedro Sanchez unveiled a new three-year strategic plan to boost Madrid's economic and diplomatic ties with Africa and develop "legal channels" for migration. The move comes as Spain is struggling to curb a surge in irregular migrant arrivals by boat in Spain's Canary Islands in the Atlantic, mainly from Western Africa. "Our country wants to enter a new era in its relationship with the African continent, on an equal footing," Sanchez said after meeting Mauritania's President Mohamed Ould Cheikh El Ghazouani in Madrid. "Africa is already a key partner for Spain, and its importance will continue to grow in the years to come," he added, saying the volume of Spain's trade with Africa now exceeds that of the country with Latin America.

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Taiwan President Lai Ching-te said Friday he was "confident" of deeper cooperation with the next Donald Trump administration. "Taiwan is confident that it will continue to deepen cooperation with the new government to resist authoritarian expansion, and create prosperity and development for both countries while making more contributions to regional stability and peace," Lai told reporters in Palau. Lai arrived in the tiny Pacific island nation on Thursday after visiting the American territory of Guam where he spoke with US Republican House Speaker Mike Johnson – the highest-level US contact the Taiwanese leader has had during his week-long trip. During Friday's press conference, Lai also urged democracies to be "more united" to counter growing authoritarianism.

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South Korea's ruling party chief says it is necessary to suspend the constitutional powers of President Yoon Suk Yeol. The comments by People Power Party leader Han Dong-hun on Friday suggest that his party would change its earlier opposition to the impeachment of President Yoon over his imposition of martial law this week. The main opposition Democratic Party and other small opposition parties submitted a joint motion to impeach President Yoon on Wednesday over his martial law declaration the previous night. Martial law lasted about six hours, as the National Assembly quickly voted to overrule the president, forcing his cabinet to lift it before daybreak on Wednesday.


BROKER RATING CHANGES


JPMorgan raises Halma to 'neutral' (underweight) - price target 2,600 (2,350) pence

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Berenberg cuts Energean to 'hold' (buy) - price target 1,045 (1,175) pence

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JPMorgan cuts Bank of Ireland price target to 8.20 (8.90) EUR - 'underweight'

----------

COMPANIES - FTSE 100


FTSE 250-listed Direct Line Insurance has agreed to a takeover bid from Aviva in cash and shares. The proposal is worth 275 pence per Direct Line share, consisting of 129.7p cash and 0.2867 of an Aviva share. Direct Line shareholders will also get dividend payments worth up to 5p per share. The offer is a 73% premium to Direct Line's share price on November 27, and 16% above its closing price of 237.80p on Thursday which gave the insurer a market capitalisation of GBP3.12 billion. At this stage the takeover bid is a proposal, with December 25 set as the put-up-or-shut-up deadline for Aviva to make a firm offer.

OTHER COMPANIES


Wheaton Precious Metals has agreed to acquire a gold stream from Allied Gold Corp, "to advance the construction" of Allied's Kurmuk project in Ethiopia. "This fully permitted, high-quality development project offers significant exploration potential, supported by a team at Allied with a proven operating track record," comments Wheaton CEO Randy Smallwood. "We are excited to partner with Allied to unlock opportunities that empower the local communities and help drive the growth of Ethiopia's emerging metals and mining sector." Wheaton will pay USD175 million cash upfront in four equal instalments during construction and will buy 6.7% of the payable gold until 220,000 ounces has been delivered. Subsequently, it will buy 4.8% for the mine's lifetime. It expects the gold stream to produce on average 16,000 ounces of gold per year for the first decade, with the first production expected in mid-2026.

[master rsi] 06/12/2024 08:26

FTSE

Still unsettle with 5 points down

[master rsi] 05/12/2024 23:37

S4 Capital's Monks Achieves the AWS Generative AI Competency
Thu, 5 December 2024 at 4:08 pm
LAS VEGAS, Dec. 5, 2024 /PRNewswire/ -- Monks, the global, purely digital, data-driven, unitary operating brand of S4Capital plc., is thrilled to announce it has achieved the AWS Generative AI Competency. This specialization recognizes Monks as an AWS Partner that drives the advancement of services, tools, and infrastructure pivotal for implementing generative AI technologies across an ecosystem of marketing and technology services.

The new Monks brand emphasises the cross-vertical and end-to-end capabilities offered by an integrated portfolio of services designed to maximise client revenue growth, innovation and reach. (PRNewsfoto/Media.Monks)
The new Monks brand emphasises the cross-vertical and end-to-end capabilities offered by an integrated portfolio of services designed to maximise client revenue growth, innovation and reach. (PRNewsfoto/Media.Monks)
Announced at AWS re:Invent 2024, achieving the AWS Generative AI Competency differentiates Monks as an AWS Partner that has demonstrated technical proficiency and proven customer success helping clients drive efficiency across the content supply chain and enhance the consumer brand experience. Monks combines marketing and technology services to deliver generative AI-powered solutions for clients across a wide range of industries including media and entertainment, sports, retail, consumer packaged goods, healthcare and more.

Monks possesses the experience and expertise shown from successful projects for addressing customer challenges using generative AI solutions as an enabler of their digital transformation strategies for augmenting the customer experience, delivering hyper-personalized and engaging content, streamlining workflows, and delivering actionable results powered by generative AI technology from AWS.

"Monks is proud to achieve the AWS Generative AI Competency, underscoring our proficiency in applying generative AI to address complex business challenges for our clients," said Christina Bender, Senior Director, Partnerships at Monks. "This is an important milestone for us as we continue to iterate and put the best AI tools together to design bespoke AI workflows that meet client demand with increased speed, quality and value."

The AWS Competency Program aims to assist customers in connecting with AWS Partners who possess extensive knowledge and technical expertise in using AWS technologies and best practices to adopt generative AI. These partners facilitate the seamless integration and deployment of AWS-based solutions to meet the unique needs of both startups and global enterprises.

Monks integrates AWS technologies and best practices within its proprietary AI solution Monks.Flow, a platform agnostic suite designed to work across an organization's existing tech stack to automate workflows. Monks.Flow offers intelligent solutions for marketing activities to automate processes and connect talent trained in AI, the latest AI tools, enterprise software, and microservices into efficient, automated workflows.

About Monks
Monks is the global, purely digital, data-driven, unitary operating brand of S4Capital plc. With a legacy of innovation and specialised expertise, Monks combines an extraordinary range of global marketing and technology services to accelerate business possibilities and redefine how brands and businesses interact with the world. Its integration of systems and workflows delivers unfettered content production, scaled experiences, enterprise-grade technology and data science fueled by AI—managed by the industry's best and most diverse digital talent—to help the world's trailblazing companies outmaneuver and outpace their competition.

Monks was named a Contender in The Forrester Wave™: Global Marketing Services. It has remained a constant presence on Adweek's Fastest Growing lists (2019-23), ranks among Cannes Lions' Top 10 Creative Companies (2022-23) and is the only partner to have been placed in AdExchanger's Programmatic Power Players list every year (2020-24). In addition to being named Adweek's first AI Agency of the Year (2023), Monks has been recognized by Business Intelligence in its 2024 Excellence in Artificial Intelligence Awards program in three categories: the Individual category, Organizational Winner in AI Strategic Planning and AI Product for its service Monks.Flow. Monks has also garnered the title of Webby Production Company of the Year (2021-24), won a record number of FWAs and has earned a spot on Newsweek's Top 100 Global Most Loved Workplaces 2023.

About S4Capital
S4Capital plc (SFOR.L) is the tech-led, new age/new era digital advertising, marketing and technology services company, established by Sir Martin Sorrell in May 2018.

Our strategy is to build a purely digital advertising and marketing services business for global, multinational, regional, and local clients, and millennial-driven influencer brands. This will be achieved by integrating leading businesses in two synchronised practices: Marketing services and Technology services, along with an emphasis on 'faster, better, cheaper, more' execution in an always-on consumer-led environment, with a unitary structure.

The Company now has approximately 7,300 people in 33 countries with approximately 80% of net revenue across the Americas, 15% across Europe, the Middle East and Africa and 5% across Asia-Pacific. The longer-term objective is a geographic split of 60%:20%:20%. At the Group's last full year results, Content accounted for approximately 60% of net revenue, Data&Digital Media 24% and Technology Services 16%. The long-term objective for the practices is a split of 50%:25%:25%.

Sir Martin was CEO of WPP for 33 years, building it from a £1 million 'shell' company in 1985 into the world's largest advertising and marketing services company, with a market capitalisation of over £16 billion on the day he left. Prior to that Sir Martin was Group Financial Director of Saatchi & Saatchi Company Plc for nine years.

[master rsi] 05/12/2024 23:16

US close: Stocks retreat from record highs ahead of payrolls data

(Sharecast News) - US stocks were in the red on Thursday with all three Wall Street benchmarks pulling back from record highs.

Labour market data and a flurry of retailer earnings - along with a continued surge in the price of bitcoin - were dominating headlines during the session, with investors choosing to take profits ahead of the all-important non-farm payrolls release on Friday.

The Dow slipped 0.55% to 44,7651.71, the S&P 500 fell 0.19% to 6,071.11, while the Nasdaq fell 0.18% to 19,700.26 - with the latter two indices snapping a four-day winning streak.

"Investor sentiment remains positive, and everyone expects a rally into Christmas," said David Morrison chief market analyst at Trade Nation. "There's been a sharp increase in leveraged positions and option plays favouring a continuation of the rally, and it rather feels as if everyone has rushed to the same side of the boat. History tells us that in these situations, it's wise to wear a lifejacket."

Data takes centre stage

On the macro front, the Labor Department reported that jobless claims hit 224,000 last week, up from 213,000 in the previous week and ahead of expectations of 215,000.

[master rsi] 05/12/2024 23:02

Director dealings:
Card Factory revealed on Thursday that chief financial officer Matthias Seeger had acquired 21,244 ordinary shares in the London-listed greetings cards retailer.

Seeger, who was named as CFO in January 2023, purchased the shares at an average price of 94.14p each, for a total value of £19,999.95.

Following the transaction, Seeger holds a beneficial interest in 60,470 ordinary Card Factory shares, representing approximately 0.017% of the company's issued share capital.

As of 1620 GMT, Card Factory shares were up 7.42% at 97.0p.

Reporting by Iain Gilbert at Sharecast.com

Top Director Buys

Entain (ENT)

Director name: Sandler,Ricky

Amount purchased: 4,334,882 @ 805.60p

Value: £34,921,808.33

Foresight Solar Fund Limited (FSFL)

Director name: Ohlsson,Alex

Amount purchased: 88,929 @ 80.00p

Value: £71,143.20

Card Factory (CARD)

Director name: Seeger,Matthias

Amount purchased: 21,244 @ 94.14p

Value: £19,999.95


Top Director Sells

Entain (ENT)

Director name: Sandler,Ricky

Amount sold: 4,334,882 @ 805.60p

Value: £34,921,808.33

Sage Group (SGE)

Director name: Hare,Steve

Amount sold: 39,872 @ 1,309.67p

Value: £522,191.61

Sage Group (SGE)

Director name: Howell,Jonathan

Amount sold: 27,844 @ 1,309.67p

Value: £364,664.51

Gran Tierra Energy Inc. (cdi) (GTE)

Director name: Royal,Ronald W.

Amount sold: 19,967 @ $6.88

Value: $113,278.60

Reach (RCH)

Director name: Mullen,Jim

Amount sold: 48,534 @ 89.20p

Value: £43,292.33

[master rsi] 05/12/2024 22:29

MARKET REPORT
LONDON MARKET CLOSE: Stocks mixed, French political drama continues

(Alliance News) - Stock prices in London closed mixed on Thursday, ahead of key US data on Friday.

Also on Thursday, UK Prime Minister Keir Starmer promised a "relentless focus on delivering for working people" ahead of a major speech setting out targets to measure progress on his government's plans.

AJ Bell's Danni Hewson noted: "The prime minister today said that households will know when they’re better off and the deliberate shift away from a previous promise to have the highest economic growth in the G7 will certainly make it easier to explain to UK voters."

However, Hewson countered: "The real question will be how many of us should feel better off and by how much. Falling inflation will help, assuming the increase in National Insurance for employers doesn't structurally change the economic picture."

Noting that many would-be homeowners remain "frozen out from buying in the area they want to live in", and that clean energy goals were "watered down", she commented: "Labour's first months in office haven’t exactly made people feel better about anything. We were warned things would have to get worse first before they get better, but Labour ran on a message of change during the election and this reset ultimately feels the same, just not quite as ambitious."

French Prime Minister Michel Barnier has met President Emmanuel Macron to submit his resignation after losing a vote of no confidence in parliament, AFP reported.

A majority of lawmakers on Wednesday supported the no-confidence vote, proposed by the hard left and backed by the far right with both sides angered by Barnier's 2025 budget plan. The successful no-confidence motion cancelled the government's entire financing plan, unless any new government can somehow rush through approval of a new budget by Christmas – an unlikely scenario.

Meanwhile in the US, weekly initial jobless claims picked up in the week ending November 30 by more than expected, the Department of Labor reported. The advance figure for seasonally adjusted initial claims was 224,000, up from 215,000 the week before.

The four-week moving average was 218,250, up from the previous week's revised average of 217,500.

Elsewhere, figures from the Census Bureau and the Bureau of Economic Analysis showed that the goods and services deficit was USD73.8 billion in October, down from USD83.8 billion in September.

The FTSE 100 index closed up 13.57 points, 0.2%, at 8,349.38. The FTSE 250 ended down 4.09 points at 21,001.06, and the AIM All-Share closed down 0.2%, or 1.56 points, at 736.66.

The Cboe UK 100 ended up 0.2% at 838.70, the Cboe UK 250 closed down 0.1% at 18,484.11, and the Cboe Small Companies ended up 0.4% at 16,085.35.

On the FTSE 100, AstraZeneca finished up 1.3%.

The Cambridge-based pharmaceuticals company said the US Food & Drug Administration has approved its Imfinzi treatment for adults with limited-stage small cell lung cancer.

Imfinzi reduced the risk of death by 27% compared to a placebo in the Adriatic phase 3 trial.

Vodafone was one of its winners, up 2.6%.

The UK competition watchdog approved the merger of Vodafone's UK operations with Hutchison 3G UK, trading as Three UK, creating a telecommunications behemoth.

To secure approval for the GBP15 billion merger, the two companies have committed to an GBP11 billion investment programme to build "the UK's biggest and best network", with advanced 5G provision.

DS Smith was among the losers, down 1.6%.

The London-based packaging company labelled its performance as "solid", but pretax profit plunged 89% on-year to GBP29 million in the six months that ended October 31. Revenue fell 4.2% to GBP3.37 billion, driven by lower packaging prices and paper market weakness.

On AIM, Warpaint London was up 2.7% while Brand Arkitekts surged 93%.

Warpaint announced that Brand Arkitekts had agreed to its GBP13.9 million or 48 pence per share all-cash acquisition bid. Brand Arkitekts' directors unanimously recommended the offer, which is double the company's 24p share price at Wednesday's market close.

In small-caps, Card Factory gained 7.9%.

The Wakefield, England-based greeting cards and gifting retailer announced its USD25 million takeover of Garven Holdings LLC, a Minnesota gift and "celebration essentials" designer and wholesaler which trades as Garven Design and Cadence Packaging.

"After months of UK-listed companies receiving takeover bids, it's refreshing to see two companies sitting on the other side of the table," AJ Bell's Coatsworth said, although he remarked that Brand Architekts "was so far under the radar of the general investment community that very few people will lament its absence from the stock market. However, it's a strategically important deal for Warpaint as it provides a low-risk way of boosting its health, beauty and personal card brand portfolio."

Meanwhile, the Garven takeover is "the next step in Card Factory's efforts to diversify its income stream beyond the sale of cheap greetings cards.

"Its UK stores have slowly given more shelf space to items like balloons and teddy bears, and now there is an opportunity to learn more about this market from an established US player. It will also open doors to potential design and buying synergies across the group."

In European equities on Thursday, the CAC 40 in Paris ended up 0.4%, while the DAX 40 in Frankfurt ended up 0.6%.

Construction activity declined at a faster pace to 42.7 points in November, as Germany's drag deteriorated amid increased construction costs. Meanwhile, eurozone retail sales grew by 1.9% annually in October from a year before, but declined by 0.5% on-month.

The pound was quoted higher at USD1.2753 at the London equities close Thursday, compared to USD1.2717 at the close on Wednesday.

The euro stood at USD1.0568 at the European equities close Thursday, up against USD1.0536 at the same time on Wednesday.

Against the yen, the dollar was trading higher at JPY150.17 compared to JPY150.06 late Wednesday.

Stocks in New York were mostly lower at the London equities close, with the DJIA down 0.3%, the S&P 500 index down 0.1%, and the Nasdaq Composite up 0.1%.

US weekly initial jobless claims picked up in the most recent week, and by more than expected, the Department of Labor reported.

In the week ending November 30, the advance figure for seasonally adjusted initial claims was 224,000, an increase of 9,000 from the previous week's revised level. The previous week's level was revised up from 213,000 to 215,000. FXStreet consensus forecast a figure of 215,000.

Elsewhere, figures from the Census Bureau and the Bureau of Economic Analysis showed that the goods and services deficit was USD73.8 billion in October. FXStreet consensus forecast a fall to USD75 billion. October exports were USD265.7 billion, USD4.3 billion less than September exports. October imports were USD339.6 billion, USD14.3 billion less than September imports.

Brent oil was quoted at USD72.22 a barrel at the London equities close Thursday, ahead of an Opec+ meeting, from USD73.20 late Wednesday.

Gold was quoted at USD2,635.39 an ounce at the London equities close on Thursday, against USD2,653.48 at the close on Wednesday.

Friday's UK corporate calendar has half-year results from Berkeley Group Holdings, and full-year results from Schroder European Real Estate Investment Trust.

The economic calendar for Friday has the aforementioned non-farm payrolls data from the US, as well as the Michigan consumer sentiment index and total vehicle sales.

Also, look out for the UK house price index and the eurozone's GDP and unemployment figures.

[master rsi] 05/12/2024 22:06

DOW

Finishing 248 points lower

[master rsi] 05/12/2024 17:05

Aviva prepares to raise bid for Direct Line - Bloomberg

(Alliance News) - Aviva PLC has increased its offer for Direct Line Insurance Group PLC to around GBP3.4 billion, Bloomberg reported.

Bloomberg sources that London-based Aviva has made a fresh bid of about 261 pence per share as it seeks to secure the backing of Direct Line’s board.

The new proposal is about 4% higher than Aviva’s initial cash and stock proposal of 250p per share last week, or GBP3.26 billion, which was rejected by Direct Line.

Under the plan Direct Line shareholders would be entitled to receive 112.5 pence per share in cash and 0.282 of a new Aviva share for each Direct Line share.

Shares in Direct Line initially rose more than 7% on the news before settling 0.5% higher at 238.00p in London. Aviva was 1.2% higher at 486.19p.

Last week Aviva said it was a "highly attractive" and "compelling" offer with "high execution certainty".

But Direct Line dismissed it as "highly opportunistic" and said it "substantially undervalued the company".

Direct Line has undertaken a strategic revamp under the stewardship of Chief Executive Adam Winslow, who the firm poached from potential suitor Aviva. Winslow had been CEO of UK & Ireland General Insurance for Aviva.

[master rsi] 05/12/2024 16:42

How the UPS are performing during last month

[master rsi] 05/12/2024 16:22

How the UPS are performing today

[master rsi] 05/12/2024 15:56

Trakm8 shares tumble as interim earnings fall short of expectations

(Alliance News) - Trakm8 Holdings PLC on Thursday said its earnings declined in the first half of its current financial year, amid "challenging" conditions in the Insurance and Automotive markets.

The Shaftesbury, England-based provider of fleet management software and data to insurers said pretax profit in the six months that ended September 30 tumbled 89% to GBP5,000 from GBP13,000 the year before.

Shares in Trakm8 were down 30% at 4.00 pence each in London on Thursday afternoon.

Revenue fell 2.4% to GBP8.3 million from GBP8.5 million last year, while total administrative costs increased 14% to GBP5.3 million from GBP4.6 million. Finance costs were up 26% to GBP573,000 from GBP442,000.

Cost of sales reduced 37% to GBP2.4 million from GBP3.5 million.

Chair John Watkins said: "The Insurance and Automotive markets continue to provide challenging forecasting conditions. The prospect of volumes of new device sales from both existing and new customers not increasing until the fourth quarter of financial 2025 means that our expectations are lower than that we had previously forecast for the Insurance and Automotive business.

"The outcome for the full year therefore remains uncertain, with the strength of recovery in Insurance unknown. However, the board remains confident of improving revenues compared to the prior financial year."

[master rsi] 05/12/2024 15:32

FTSE 250 movers: WoS ticks along; Balfour Beatty slips
(Sharecast News) - FTSE 250 (MCX) 21,028.06 0.11%

Watches of Switzerland surged as it reported a jump in first-half revenue amid solid US demand, but a dip in profit.

In the 26 weeks to 27 October, group revenue rose 4% to £785m, with an improvement in trading in the second quarter.

US revenue grew 11% to £355m. In the UK and Europe, however, revenue declined 1% on the previous year to £430m.

Adjusted earnings before interest, tax, depreciation and amortisation fell 7% to £87m, while statutory pre-tax profit was down 39% to £41m.

Wood Group advanced as it secured three "major" agreements with BP to provide engineering and project delivery services for their capital projects worldwide.

Future surged after well-received full-year results.

Infrastructure specialist Balfour Beatty reported a robust performance in a trading update on Thursday, with earnings growth expected and plans for further share buybacks in 2025.

The FTSE 250 company said its order book was expected to grow by over 5% this year, surpassing £16.5bn, driven by strong demand in UK energy and US buildings markets.

Revenue was projected to rise about 2% year-on-year, reaching around £9.8bn, supported by growth in support services and the Gammon joint venture in Asia.

Underlying profit from operations (PFO) from earnings-based businesses was set to exceed 2023's £236m, underpinned by a strong performance in support services.

FTSE 250 - Risers

Watches of Switzerland Group (WOSG) 577.00p 15.63%

Future (FUTR) 1,095.00p 11.73%

PPHE Hotel Group Ltd (PPH) 1,325.00p 9.05%

Wood Group (John) (WG.) 67.40p 4.17%

Bakkavor Group (BAKK) 150.00p 3.45%

Just Group (JUST) 160.60p 3.35%

NCC Group (NCC) 162.20p 2.92%

RIT Capital Partners (RCP) 1,998.00p 2.78%

Close Brothers Group (CBG) 228.20p 2.70%

Zigup (ZIG) 341.00p 2.25%

FTSE 250 - Fallers

Genus (GNS) 1,652.00p -4.95%

Pets at Home Group (PETS) 226.20p -4.56%

PureTech Health (PRTC) 162.40p -3.56%

Energean (ENOG) 988.00p -3.23%

Discoverie Group (DSCV) 707.00p -3.15%

PayPoint (PAY) 829.00p -3.04%

Victrex plc (VCT) 1,076.00p -2.54%

Harbour Energy (HBR) 253.80p -2.53%

Balfour Beatty (BBY) 441.40p -2.43%

Travis Perkins (TPK) 748.50p -2.28%

[master rsi] 05/12/2024 15:08

Amcomri gears up for December 19 IPO launch
(Alliance News) - Amcomri Group PLC on Thursday said it expects to be admitted to London's Alternative Investment Market on December 19.

Key details of the London-based engineering services firm's listing have not yet been disclosed, including its anticipated market capitalisation on admission, the issue price of its shares and the level of capital it is trying to raise.

Rumours of Amcomri's estimated GBP50 million flotation started circulating back in July, when the company was reported to be in talks with financial advisor and broker Cavendish Capital Markets Ltd.

Since its founding in 2016, Amcomri has acquired 12 operating businesses and four bolt-on assets. It targets small and medium-sized companies, specifically in the industrial and engineering sectors, and develops them through a "buy, improve, build" model.

It operates through two divisions catering to embedded engineering design and niche manufacturing respectively. Between financial 2021 and financial 2023, the group reported 49% compound annual revenue growth.

Amcomri's deputy chair is Paul McGowan, former owner of historic music retailer HMV. Chief Executive Officer Hugh Whitcomb worked as an engineer at Shell PLC and has been the lead industrial partner for Hilco Capital Ltd since 2012.

The pending IPO follows a failed reverse takeover of Amcomri by Rockpool Acquisitions PLC. The Belfast, Northern Ireland-based acquisition vehicle in 2023 entered into terms to purchase Amcomri, its holding company, for an estimated GBP22.3 million.

Rockpool incurred substantial losses due to acquisition delays and the temporary suspension of its shares. The reverse takeover was terminated back in April.

After a dispute over the amount Amcomri owed Rockpool in aborted acquistion costs, Rockpool said the holding company had agreed to pay Rockpool GBP452,500 by December 16.

Amcomri's annual account for the year to December 31 is due next June.

[master rsi] 05/12/2024 14:35

DOW

Lower with 18 points at opening

[master rsi] 05/12/2024 13:05

MARKET REPORT
LONDON MARKET MIDDAY: Stocks flat while profit warning hurts Frasers

(Alliance News) - London's blue-chips were struggling for direction around midday on Thursday, underperforming European peers, as a profit warning from retailer Frasers sparked alarm.

The FTSE 100 index fell 3.86 points at 8,331.95. The FTSE 250 eased 13.28 points, 0.1%, at 20,991.87, and the AIM All-Share dropped 1.67 points, 0.2%, at 736.54.

The Cboe UK 100 was slightly higher at 837.15, the Cboe UK 250 was down 0.1% at 18,480.57, and the Cboe Small Companies rose 0.2% to 16,038.78.

European markets shrugged off the political drama in France to forge ahead with the DAX 40 hitting another new high.

The CAC 40 in Paris rose 0.3% while the DAX 40 in Frankfurt climbed 0.4%.

Dan Coatsworth at AJ Bell noted the French political crisis has "failed to knock European indices off course".

However, he cautioned that it might be the "calm before the storm if the pressure grows on president Emmanuel Macron to resign and there is a full breakdown of the current regime."

On Wednesday, French lawmakers ousted the government of Prime Minister Michel Barnier leaving President Emmanuel Macron seeking a replacement.

A vote of no confidence was passed meaning Barnier's government collapsed after just three months in office.

Holger Schmieding at Berenberg thinks the political turmoil "could cost France dearly".

"The fact that the political right and left ousted Barnier highlights the risk that they may jointly undo some of Macron’s previous pro-growth reforms, going beyond the partial reversal of Macron’s corporate tax cuts which Barnier had already proposed. Combined with higher political uncertainty and elevated risk premia, this prospect will likely weigh on business investment," he remarked.

He did suggest there could be a silver lining.

"Crises can be handmaidens of change. With luck, the hit to growth due to the current political turmoil may encourage the centre-left to finally break ranks with left-wing firebrand Jean-Luc Melenchon. Or Le Pen may realise that her chances of winning the presidency in 2027 would not be helped if she now presents herself as an agent of chaos. However, that is a hope, not a forecast."

Elsewhere, bitcoin smashed through the USD100,000 barrier after US President-elect Donald Trump chose crypto-friendly Paul Atkins to run Wall Street regulator, the Securities and Exchange Commission.

The cryptocurrency has been lifted in recent weeks by hopes that Trump's return to the White House will usher in a new era of lighter regulation and supportive policies.

US stocks are called slightly lower. The Dow Jones Industrial Average is called down 0.1%, as is the S&P 500 while the Nasdaq Composite is seen 0.2% lower.

The pound was quoted at USD1.2733 early Thursday afternoon, up from USD1.2717 at the time of the London equities close on Wednesday. The euro stood at USD1.0537, little changed from USD1.0536. Against the yen, the dollar was trading at JPY150.11, up from JPY150.06.

Still to come on Thursday are US weekly jobless claims figures at 1330 GMT.

In London, shares in Frasers Group plunged 10% after it blamed weaker consumer confidence for a reduction in annual profit guidance.

The retailer which owns Sports Direct and House of Fraser said pretax profit fell by a third to GBP207.2 million in the 26 weeks to October 27 from GBP310.2 million a year prior.

Chief Executive Michael Murray said it has been "another period of progress" and the group is set to deliver "another year of profitable growth."

But he said "weaker consumer confidence leading up to and following the budget", means full-year adjusted pretax profit is now forecast in the range of GBP550 million to GBP600 million.

The company had previously expected an outcome between GBP575 million and GBP625 million. Adjusted pretax profit in financial 2024 totalled GBP544.8 million. In the recent half-year, it declined 1.5% to GBP299.2 million.

Speaking to Bloomberg, Murray said that "the skulduggery around the budget is mind-blowing" and that the decisions had damaged consumer confidence.

The warning from Frasers dragged Primark owner AB Foods down by 1.5% and Next down by 1.1%.

British Land, down 4.2%, was another prominent faller as it traded ex-dividend.

Insurer Admiral led the blue-chip risers, gaining 2.6% benefiting from an upgrade by Deutsche Bank to 'buy' from 'hold'.

Deutsche also upgraded FTSE 100 listed Aviva to 'buy' from 'hold' in an upbeat assessment of prospects for the European insurance sector heading into 2025.

The broker said it was remaining "gently positive" on the sector into 2025, supported by "resilient balance sheets and a focus on diversified growth".

Deutsche said this can be seen through the sector’s dividend-bond yield spread, which should create a source of alpha for the insurers in 2025.

The broker lifted Just Group to 'buy' from 'hold' but downgraded M&G to 'hold' from 'buy'.

Aviva rose 1.1%, Just Group climbed 0.7% but M&G fell 0.8%.

Housebuilders were mixed after a survey showed house building activity declined at its sharpest pace since June.

The S&P Global UK construction purchasing managers' index rose to 55.2 points in November from 54.3 in October.

But housebuilding at 47.9, and below the 50.0 no change mark, remained by far the weakest-performing category of construction work in November.

"Construction companies once again noted that elevated borrowing costs and fragile consumer confidence had an adverse impact on demand conditions," S&P Global said.

The upturn in construction output was driven by the strongest rise in commercial work for two-and-a-half years at 58.1 while civil engineering activity, 55.9, also expanded at a strong pace in November.

Taylor Wimpey was 1.9% lower, Persimmon slipped 0.5% but Vistry rose 1.0%.

Earnings generated some sizeable moves on the FTSE 250.

Future jumped 13% after announcing plans for a new GBP55 million share buyback as it welcomed a return to organic sales growth in the second half of the financial year.

The Bath, England-based online magazine publisher and owner of price comparison website Go Compare hailed progress from its Growth Acceleration Strategy launched last December.

"We've made good progress in the first year of the plan, resulting in the group's return to organic growth," Future said in a statement.

Full-year revenue was little changed at GBP788.2 million from GBP788.9 million, but up 1% on an organic basis. This included a strong second half performance, up 5%.

Watches of Switzerland clocked a 13% rise as it backed full-year guidance and flagged an encouraging start to third quarter trading.

Half-year profit dropped 40% to GBP40.5 million in the 26 weeks to October 27 from GBP66.5 million a year prior but sales rose 3.1% to GBP784.8 million from GBP761.4 million.

Chief Executive Brian Duffy said the results reflected an "encouraging improvement in trading in [the second quarter], driven by growing demand in the UK and US".

Duffy said the third quarter trading has "started encouragingly".

"Our trading momentum through November, visibility of intake and second half opening of large showroom investments support our full year guidance, which is unchanged," he stated.

John Wood bounced 6.3% after signing three "major agreements" with oil major BP for engineering and project delivery services.

Brent oil was quoted at USD71.82 a barrel early Thursday afternoon, falling from USD73.20 late on Wednesday. Gold was lower at USD2,652.07 an ounce from USD2,653.48.