Upstream Share Discussion Threads

[master rsi] 15/11/2024 09:59

Big energy firms pledge USD500 million for sustainable energy access.

(Alliance News) - Big energy companies TotalEnergies SE, BP PLC, Equinor ASA, and Shell PLC have jointly pledged to invest in initiatives aligned with the United Nations Sustainable Development Goal 7.

The project focuses on ensuring access to affordable, reliable, sustainable, and modern energy for all.

The four energy titans are activating a new initiative to drive high-impact local projects that will help achieve the initiative's goals by 2030.

With a combined USD500 million in committed capital, the investment will focus on promising projects, primarily in Sub-Saharan Africa, South Asia, and South-East Asia, designed to provide underserved communities with access to electricity and improved cooking solutions, TotalEnergies said in a statement.

The funding will target a wide range of solutions, including solar home systems, mini/metro grids, clean cooking technologies, and enabling innovations like e-mobility, energy storage, and management systems.

This initiative not only aims to support the UN project but also has the potential to deliver co-benefits such as job creation and better health outcomes in the regions served.

Shell shares were up 0.9% at 2,554.50 pence each on Friday morning in London, BP shares rose 0.8% to 382.37p each and TotalEnergies shares were 0.5% higher at EUR57.45 each in Paris.

[master rsi] 15/11/2024 09:33

MARKET REPORT
LONDON 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-sized UK pension funds could be just the tonic. In turn, this would be highly attractive for startup investors and draw in additional startup capital. The Reeves' Reforms, and the Pensions Investment Review in particular, could be transformational for the UK economy."

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.

[master rsi] 15/11/2024 09:14

Europe open: Pharma shares hit as Trump appoints Kennedy to head health

(Sharecast News) - European equity markets opened weaker on Friday with pharma stocks lower on news that Robert F. Kennedy Jr - who has made misleading statements on vaccines - had been appointed as Donald Trump's head of health.

The pan-European Stoxx 600 index was down 0.79% at 502.88 in early deals with all major bourses in the red.

Trump late on Thursday nominated Kennedy, who last year said he believe autism was caused by vaccines, to lead the Department of Health and Human Services in his new administration when it takes power next January.

Pharmaceutical stocks such as GSK, Sanofi, Swedish Orphan Biovitrum, UCB, Sartorius Stedim, Zealand Pharma and Roche were all knocked by the news.

In positive news for the sector, shares in Evotec surged as the German drug developer received an €11-per-share offer from Halozyme Therapeutics, valuing the company at about €2bn.

Generali also jumped as the Italian insurer posted better-than-expected 9-month profits.

[master rsi] 15/11/2024 08:57

UK GDP edges higher in quarter as construction output rises
(Clarifies that the quarterly GDP decline underperformed against the consensus.)

(Alliance News) - 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 on Friday.

UK GDP decreased 0.1% in September, the ONS said, underperforming against the FXStreet-cited market consensus which had forecast a 0.2% increase, the same as had been the case in August.

In the quarter ended September 30, UK GDP is estimated to have increased 0.1%, slowing from growth of 0.5% in the second quarter and missing the consensus forecast of 0.2%.

Year-on-year, UK GDP is expected to have grown 1.0% in the third quarter, up from on-year growth of 0.7% the ONS had reported for the second quarter.

Also on Friday, the ONS reported that the UK showed a GBP3.46 billion total trade deficit for September, compared with August's GBP2.02 deficit. The total goods and services deficit widened to GBP11.4 billion in the third quarter.

Furthermore, industrial production decreased 0.5% on-month in September, missing consensus of 0.1% growth and swinging from 0.5% growth in August. On an annual basis, production decreased 1.8% for September compared with a 1.7% on-year decline in August, and surpassing consensus of a 1.2% decrease.

The ONS further estimates that production decreased 0.2% on-quarter in the three months ended September, following a 0.3% decrease for the second quarter.

Construction output is estimated to have risen 0.8% in the third quarter compared with the second, "solely from an increase in new work" which rose 2.0% on-quarter. Meanwhile, monthly output is estimated to have grown by 0.1% in volume terms in September 2024.

The annual rate of construction output price growth was 2.0% in the 12 months to September 2024, the ONS said.

[master rsi] 15/11/2024 08:31

TTG 108.75p + 29.75p -Selected last month on the "UPS"
VIX 314p -29.50p
Possible Offer for TT Electronics plc ("TT Electronics")

Volex plc ("Volex" or the "Group"), a global leader in mission critical applications and power and data connectivity solutions, announces that it has submitted two proposals to the Board of TT Electronics regarding a possible cash and shares offer for the entire issued and to be issued share capital of TT Electronics.

The first proposal comprised 62.9 pence in cash and 0.203 new Volex shares per TT Electronics share which implied, at the time of the first proposal, a price of 129.0 pence per TT Electronics share, and the second proposal comprised 62.9 pence in cash and 0.223 new Volex shares per TT Electronics share which implied, at the time of the second proposal, a price of 135.5 pence per TT Electronics share (together, the "Volex Proposals")(1). The Board of TT Electronics has declined to engage with Volex and rejected each of the Volex Proposals.

Based on the price of Volex shares as at the close of business on 14 November 2024 (being the latest practicable date prior to the date of this announcement), Volex's latest proposal, consisting of 62.9 pence in cash and 0.223 new Volex shares per TT Electronics share (the "Second Proposal"), now implies a value of 139.6 pence per TT Electronics share, values the fully diluted share capital of TT Electronics at £248.6m and implies a premium of:

· 76.7 per cent. to TT Electronics closing price of 79.0 pence as at the close of business on 14 November 2024 (being the latest practicable date prior to the commencement of the offer period on 15 November 2024); and

· 73.2 per cent. to the one month volume weighted average price for TT Electronics shares as at the close of business on 14 November 2024.

The Board of Volex therefore firmly believes that the terms of the Second Proposal offer a highly attractive opportunity for TT Electronics shareholders to realise both an immediate partial cash exit following the ongoing operational and end market challenges faced by TT Electronics and the opportunity to share meaningfully in the upside of a highly attractive enlarged business.

If any offer were made on the basis of the Second Proposal, Volex expects it would offer a mix-and-match facility to provide TT Electronics shareholders with flexibility.

Lord Rothschild, Executive Chairman of Volex, commented:

"We believe that bringing Volex and TT Electronics together in a highly synergistic transaction would create a scaled and diversified leader in the specialist electronics market which would act as a platform for future organic and inorganic growth and significant value creation. TT Electronics would provide the Group with further exposure to structural growth markets, such as medical and industrial technology, and add a new end-market, aerospace and defence, to progress Volex's successful strategy of diversification. At the same time, TT Electronics would benefit from being part of a larger group with stronger performance and the associated opportunities for revenue and cost synergies to deliver higher profitability.

Despite the resilience of TT Electronics' underlying business, it has faced persistent challenges in recent years, which Volex believes have been exacerbated by execution missteps by the Board, including former and current executive leadership. As a result TT Electronics' shares are trading at a 10 year low.

Since the disposal of the former Transportation Sensing and Control division in 2017 for c.£119m, TT Electronics has spent approximately the same amount on acquisitions (for which the purchase prices have been disclosed), paying elevated multiples in an effort to develop a higher quality business. Instead, TT Electronics has delivered a series of inconsistent annual results with adjusted operating profit only improving 60 bps since 2019 to 8.6% for the financial year ended 31 December 2023, well below the 10%+ margin target set by TT Electronics management in 2019. This is before factoring in restructuring charges, which amounted to a total of £43.9m over the same period. In comparison, Volex's adjusted operating margin increased by 170 bps to 9.8% from 2020 to 2024 (financial year ending 31 March), achieving and sustaining the higher end of management's guidance for 9-10% margin. Volex's only restructuring charge during this period was £0.8m recognised in 2022.

TT Electronics' acquisition strategy has also resulted in very disappointing outcomes. In early 2024, TT Electronics disposed of three sites with a write-down of £32.5m, including the company's activities at Hartlepool and Dongguan, which it had acquired through its takeover of Stadium plc in 2018. Furthermore, TT Electronics now has operational issues at two North American sites serving aerospace and defence, a market that TT Electronics has targeted through its acquisitions of Torotel and Covina in the US.

More recently, TT Electronics' 16 September 2024 trading update surprised with an earnings downgrade, having only confirmed full year guidance in the company's half-year results on 8 August 2024. As per the trading update on 14 November 2024, guidance was further downgraded to the lower end of the range provided on 16 September 2024. Analyst consensus forecasts imply that adjusted operating profit margin will be approximately 7.1% in 2024(2), a further downward departure from the company's previous 10%+ margin target and significantly below its new mid-term adjusted operating profit target of 12% by 2026.

Since 1 January 2018, TT Electronics' share price has declined by 65%, compared to Volex's, which has increased over 300%.

We firmly believe that our Second Proposal offers shareholders an extremely compelling alternative to the status-quo: the opportunity to (1) in the near term, realise a meaningful element of the offer consideration in cash whilst operational challenges persist, and (2) alongside our own shareholders, to participate in the highly attractive upsides offered by the growth qualities and synergy potential of the combined business led by an experienced team that has a track record of successfully delivering value accretive acquisitions.

I therefore strongly encourage TT Electronics shareholders to urge the TT Electronics Board to engage with Volex in delivering an expeditious and highly attractive outcome for all stakeholders."



Strategic rationale for a combination of Volex and TT Electronics

The Volex Board believes the combination of TT Electronics and Volex will deliver value for both sets of shareholders by:

Creating a scaled leader in specialist electronics for demanding high growth end markets exposed to industrial megatrends

· The combination of TT Electronics and Volex would represent a transformational transaction for both companies, creating a scaled leader across a diversified range of end markets with a need for bespoke R&D driven solutions and complex manufacturing services.

· The combined group would offer exposure to international megatrends including the decarbonisation of transportation, demographic shifts in healthcare and technological convergence of aerospace and defence platforms.

· Volex's strategy has demonstrated the benefits of diversification and the proposed combination would further improve the diversification of both businesses, whilst also offering greater economies of scale and cross-selling opportunities.

Benefitting from significant opportunities to realise both cost and revenue synergies and deliver higher profitability

· Volex believes there are significant opportunities to achieve cost synergies in the combined business through the removal of duplicate functions and driving further efficiencies as Volex operates a relatively much leaner fixed cost base.

· There are further opportunities to rationalise the combined businesses' global manufacturing footprint, particularly in Mexico, China and South East Asia where TT Electronics has been slow to shift its production away from more expensive markets, and also further leverage Volex's wider presence in low-cost geographies.

· Volex has a proven history of delivering margin expansion and believes that the combination with TT Electronics would be earnings-accretive, and therefore Volex would expect to outperform its existing medium-term operating margin targets.

Being run by a highly experienced management team that has delivered outsized returns for shareholders

· Volex's management has a track record of delivering profitable growth, margin expansion and high levels of return on capital employed, via actions to reduce customer concentration, exiting unprofitable contracts, expanding the product portfolio to include more high-specification and customisable products which generate higher margins, rationalisation and vertical integration of manufacturing operations and a return to strategic acquisitions.

· The executive management team of Volex includes multiple key executives who set up and grew valuable TT Electronics business divisions. As a result, Volex believes that it already understands the value-creation drivers of TT Electronics and is well-placed to deliver on TT Electronics' potential.

· TT Electronics is exposed to the high structural growth markets of healthcare, aerospace and defence and automation/electrification. Volex understands these markets and believes it can unlock additional organic growth through its manufacturing, sales practices and achievement of cross-selling.

Benefitting from a strong balance sheet combined with significant levels of cash generation providing capital optionality to maximise shareholder value

· Based on the Second Proposal, the combined group would have pro-forma day one leverage of c.2.0x, within Volex's target range of 1.5 - 2.0x.

· The combined group would generate significant free cash flow and leverage would be expected to reduce towards the bottom of Volex's target range in the near term, at which point incremental free cash flow can be directed towards alternative methods of value creation, including additional accretive M&A.

· The combined group would be well positioned to continue being a UK listed M&A compounder, a strategy Volex has successfully pursued over the last 6 years with 12 acquisitions completed and integrated within that period.

The Volex Board therefore believes that the combined business would deliver significantly greater benefits to TT Electronics shareholders than TT Electronics could otherwise achieve on its own.

Volex is convinced of the compelling strategic rationale for a combination with TT Electronics and has already acquired 5,241,420 TT Electronics shares, representing approximately 2.95% of TT Electronics' issued share capital.

As required by Rule 2.6(a) of the Code, Volex must, by not later than 5.00 p.m. on 13 December 2024, either announce a firm intention to make an offer in accordance with Rule 2.7 of the Code or announce that it does not intend to make an offer, in which case the announcement will be treated as a statement to which Rule 2.8 of the Code applies. This deadline may be extended with the consent of the Panel on Takeovers and Mergers in accordance with Rule 2.6(c) of the Code.

Furthermore, pursuant to Rule 2.5 of the Code, Volex reserves the right to vary the form and / or mix of the offer consideration. Volex also reserves the right to make an offer for TT Electronics at a lower value or on less favourable terms than the Second Proposal:

a) with the recommendation or consent of the TT Electronics Board;

b) following the announcement by TT Electronics of a Rule 9 waiver transaction pursuant to the Code or a reverse takeover; or

c) if a third party announces a firm intention to make an offer for TT Electronics which, at that date, is on less favourable terms than the Second Proposal.

If TT Electronics announces, declares, makes or pays any dividend or any other distribution or return of value or payment to its shareholders after the date of this announcement, Volex reserves the right to make an equivalent reduction to the Second Proposal.

There can be no certainty any offer will be made pursuant to Rule 2.7 of the Code.
A further announcement will be made in due course.

[master rsi] 15/11/2024 08:19

FTSE

Opening with 26 points lower

[apotheki] 15/11/2024 07:44

Firering Strategic Minerals plc / EPIC: FRG / Market: AIM / Sector: Mining

Funding Update

Non-dilutive funding strategy to deliver shareholder value

Firering Strategic Minerals plc, an emerging quicklime production and critical mineral exploration company, is pleased to provide a funding update as it fast-tracks its quicklime project in Zambia ("Limeco") towards the start of phased commissioning in Q4 2024.

HIGHLIGHTS

· Prioritising non-dilutive funding options to maximise shareholder value.
· 18-month unsecured bridge loan notes (the " Bridge Loan") of up to £1,000,000:
o Accrues interest at 15% per annum, payable semi-annually.
o Strong participation from existing shareholders.
· Subscriptions received for the first tranche of £850,000 under the Bridge Loan to complete the 6.7% acquisition instalment of Limeco (of $1,016,667) due by 31 December 2024.
· Company has submitted a loan application to a prominent Zambian bank with the goal of securing funds to complete the entire Limeco acquisition to take Firering's interest to 45% and to repay the Bridge Loan.
· Limeco is already generating positive operational cash flow and the quicklime production coming on stream has the potential to deliver significant additional cash flow.

Yuval Cohen, Chief Executive of Firering, said: "This non-dilutive unsecured Bridge Loan, which saw strong participation from existing shareholders, enables us to maintain full shareholder value as we accelerate Limeco's quicklime project toward phased commissioning beginning in Q4 2024. In parallel, we have submitted a loan application to a major Zambian bank, with the objective of financing the remainder of the Limeco acquisition increasing our stake to 45% and to repay the Bridge Loan. Funding strategies are always a priority for growth businesses, so we are pleased to have successfully navigated this initial funding process, positioning Firering to take full advantage of this exceptional opportunity that promises to generate significant cash flow."

[master rsi] 14/11/2024 23:20

Director dealings:
(Sharecast News) - Hollywood Bowl revealed on Thursday that chairman Peter Boddy had acquired 100,000 ordinary shares in the London-listed bowling centres operator.

Boddy, who took over as chairman in 2014, purchased the shares on Wednesday at an average price of 320.0p each, for a total value of £320,000.

Following the transaction, Boddy holds a beneficial interest in 639,839 ordinary Hollywood Bowl shares, representing approximately 0.37% of the company's issued share capital.

As of 1600 GMT, Hollywood Bowl shares were up 0.16% at 318.0p.

Reporting by Iain Gilbert at Sharecast.com

Top Director Buys

Smiths Group (SMIN)

Director name: Williams ,Steve

Amount purchased: 20,000 @ 1,688.00p

Value: £337,599.98

Hollywood Bowl Group (BOWL)

Director name: Boddy,Peter

Amount purchased: 100,000 @ 320.00p

Value: £320,000.00

Smiths Group (SMIN)

Director name: Carter,Roland

Amount purchased: 7,618 @ 1,698.00p

Value: £129,353.64

Sthree (STEM)

Director name: OÂ'Donnell,Elaine

Amount purchased: 5,500 @ 343.99p

Value: £18,919.35

Sthree (STEM)

Director name: OÂ'Donnell,Elaine

Amount purchased: 5,500 @ 343.99p

Value: £18,919.31

Empiric Student Property (ESP)

Director name: Garrood,Duncan

Amount purchased: 25,316 @ 71.10p

Value: £17,999.68

Earnz (EARN)

Director name: Holt,Bob

Amount purchased: 150,000 @ 5.80p

Value: £8,700.00

Earnz (EARN)

Director name: Holt,Bob

Amount purchased: 100,000 @ 5.65p

Value: £5,650.00

Cordel Group (CRDL)

Director name: Davis,John Andrew

Amount purchased: 71,367 @ 7.25p

Value: £5,174.11

Mortgage Advice Bureau (holdings) (MAB1)

Director name: McCarthy,Emilie

Amount purchased: 747 @ 601.70p

Value: £4,494.70

F&c Investment Trust (FCIT)

Director name: Smith,Rain Newton

Amount purchased: 167 @ 1,100.10p

Value: £1,837.16

Top Director Sells

Beeks Financial Cloud Group (BKS)

Director name: McArthur,Gordon

Amount sold: 300,000 @ 259.74p

Value: £779,222.99

[master rsi] 14/11/2024 22:50

U.S. shares lower at close of trade; Dow Jones Industrial Average down 0.47%

U.S. equities were lower at the close on Thursday, as losses in the Industrials, Healthcare and Consumer Goods sectors propelled shares lower.

At the close in NYSE, the Dow Jones Industrial Average lost 0.47%,
while the S&P 500 index declined 0.61%,
and the NASDAQ Composite index declined 0.63%.

The biggest gainers of the session on the Dow Jones Industrial Average were Walt Disney Company (NYSE:DIS), which rose 6.23% or 6.40 points to trade at 109.12 at the close. Chevron Corp (NYSE:CVX) added 1.94% or 3.08 points to end at 161.80 and Apple Inc (NASDAQ:AAPL) was up 1.38% or 3.10 points to 228.22 in late trade.

[master rsi] 14/11/2024 22:25

UK unveils financial reforms in effort to drive growth
(Alliance News) - The Labour government plans reforms to its financial sector in a bid to grow its economy, including an announcement Thursday that will allow greater risk-taking.

Finance minister Rachel Reeves will outline the plans in her first Mansion House speech – an annual address by the chancellor of the exchequer to business leaders due Thursday.

Late Wednesday she already announced plans to create mega pension funds, potentially boosting investment in the country by around GBP80 billion in a move mirroring schemes in Australia and Canada.

Reeves will use her Mansion House address to say that measures brought in since the 2008 global financial crisis to "eliminate risk" have had "unintended consequences" in holding back growth.

"While it was right that successive governments made regulatory changes after the global financial crisis to ensure that regulation kept pace with the global economy of the time, it is important that we learn the lessons of the past," she will say according to extracts of her speech released to media.

"These changes have resulted in a system which sought to eliminate risk-taking. That has gone too far and, in places, it has had unintended consequences which we must now address."

Reeves will announce plans to "modernise" the Financial Ombudsman Service, which deals with complaints between consumers and firms.

A pilot scheme will meanwhile be launched to deliver digital bonds, embracing technology used by the cryptocurrency sector.

Labour's "megafunds" pensions plan could unlock vast sums "for infrastructure projects and businesses of the future", the Treasury said.

Labour, whose general election win in July resulted in party leader Keir Starmer becoming prime minister, aims to pool assets of 86 local-government pension schemes in England and Wales.

The Treasury added that together the schemes were on course to manage GBP500 billion in assets by 2030.

The government plans also to consolidate workers' defined contribution schemes, a common form of pension.

"These megafunds mirror set-ups in Australia and Canada, where pension funds take advantage of size to invest in assets that have higher growth potential," the Treasury said.

The announcement comes after Reeves hiked business taxes and government borrowing in her maiden budget at the end of October.

"Last month's budget fixed the foundations to restore economic stability and put our public services on a firmer footing," Reeves said in comments alongside the pensions announcement.

"Now, we're going for growth. That starts with the biggest set of reforms to the pensions market in decades to unlock tens of billions of pounds of investment in business and infrastructure."

She added that the reforms would also "boost people's savings in retirement and drive economic growth".

Some analysts urged caution over the pensions shakeup.

"The government's hope will be... economies of scale," noted Tom Selby, director of public policy at investment platform AJ Bell.

He added that "conflating a government goal of driving investment in the UK and people's retirement outcomes brings a danger".

"If it goes well, everyone can celebrate. But it's clearly possible that it will go the other way, so there needs to be some caution in this push to use other people's money to drive economic growth."

[master rsi] 14/11/2024 22:02

DOW

Finished 207 points lower

[master rsi] 14/11/2024 18:41

MARKET REPORT
LONDON MARKET CLOSE: Stocks rally as earnings provide welcome relief

(Alliance News) - London's FTSE 100 closed higher on Thursday on a brighter day for equities in Europe supported by a number of well received results.

The FTSE 100 index rose 40.86 points, 0.5%, at 8,071.19. The FTSE 250 closed up 163.80 points, 0.8%, at 20,522.81. The AIM All-Share advanced 0.09 of a point to 729.38.

The Cboe UK 100 climbed 0.5% at 811.74, the Cboe UK 250 climbed 0.9% at 17,950.10 and the Cboe Small Companies fell 1.1% to 15,740.67.

In Europe on Thursday, the CAC 40 in Paris rose 1.3% while the DAX 40 in Frankfurt jumped 1.4%

Minutes from the last European Central Bank meeting showed interest rates were cut last month to avert unnecessary damage to the economy, as policymakers took the view that they could pause a December cut if activity picked up.

The central bank’s governing council gave unanimous support to October’s decision to cut rates by 0.25 percentage points to 3.25%, arguing that "the disinflationary trend was getting stronger" and that it was important to avoid "harming the real economy by more than was necessary".

On Thursday, data showed economic growth picked up in the eurozone in the third quarter but industrial production slumped in September.

Across the pond, US markets mostly edged lower in early trading. The Dow Jones Industrial Average was just in the green, the S&P 500 was 0.1% lower as was the Nasdaq Composite.

Amid the mixed start in New York, Disney rose 6.9% after better-than-expected fourth quarter results as revenue and adjusted earnings per share beat forecasts. The firm also issued upbeat guidance for financial 2025, above expectations.

Figures in the US showed annual US producer prices picked up more quickly than anticipated in October, while unemployment fell more than expected.

Producer price inflation picked up to 2.4% on-year in October from 1.9% in September, the US Bureau of Labor Statistics said. September's number was upwardly revised from 1.8%. October's figures were higher than the acceleration to 2.3% factored in by the FXStreet-cited consensus.

Core annual producer price inflation which excludes food, energy and trade, picked up to 3.5% in October from 3.3% in September.

Monthly, producer prices rose 0.2% in October, up from 0.1% in September, the latter of which was upwardly revised from previously reported no change. October's figure was in line with the consensus.

Separately, the Department of Labor reported that initial jobless claims declined in the recent week, and were below expectations.

Initial jobless claims in the week to November 9 amounted to 217,000, fading from the prior week's unrevised level of 221,000.

Capital Economics said the price data released this week suggest that inflationary pressures are proving stronger than the Fed anticipated.

It calculates that the Fed’s preferred core PCE deflator price measure increased at an above-target rate for the second month running in October.

Bank of America said given today's PPI report and yesterday's CPI data, it expects core PCE inflation to increase by 0.3% on-month. The annual rate should rise to 2.8% from 2.7%.

"If our forecast proves correct, it will mark two consecutive uncomfortably high prints as the Fed seeks to return inflation to its 2% target," BofA said.

"That said, we still expect the Fed to cut rates by 25bp in December, but the risk appears to be tilting towards a shallower cutting cycle given resilient activity and stubborn inflation."

The data gave additional support to an initially rampant dollar. However, the greenback's latest rally ran out of steam as the trading session progressed.

The initial gains followed confirmation that the Republicans have won a majority in the House of Representatives, securing a governing trifecta - when the president's party also controls both chambers of Congress.

Brown Brothers Harriman said Trump will now face "limited" political resistance to implementing his fiscal and regulatory wish list.

"As a result, investors should continue to lean into dollar strength," it said.

The pound was quoted at USD1.2713 late on Thursday afternoon in London, little changed compared to USD1.2714 at the equities close on Wednesday. It had traded as low as USD1.2631 earlier in the session, however.

The euro stood at USD1.0576, up against USD1.0568, and recovering from lows of USD1.5000.

Against the yen, the dollar was trading higher at JPY155.81 compared to JPY155.24.

In London, Bank of England policymaker Catherine Mann said the bank could move "forcefully" on interest rates once it had obtained enough evidence that inflation had been subdued.

In the face of uncertainties, she said in a speech at the Society of Professional Economists’ annual conference, "waiting buys time to learn more about developments, to make a better assessment of whether the inflation risk has subsided sufficiently to justify changing the policy stance".

"In the current context, an activist stance holds the policy rate firmly until sufficient evidence on diminished inflation persistence is revealed; and then to move forcefully."

Mann voted to keep rates on hold at last week's meeting, when the bank voted 8-1 to cut rates by a quarter of a percentage point to 4.75%.

On the FTSE 100, well received updates lifted B&M, Aviva, Spirax and United Utilities.

B&M European Value Retail said it was well prepared for the 'golden quarter' despite seeing half-year profit fall in the face of tough comparatives.

Shares rose 5.1% as the firm said trading had picked in the UK in the second quarter and it said new stores were performing "exceptionally well".

Insurer Aviva climbed 4.4% as it reported strong trading in the third quarter leaving it confident of hitting its medium-term targets.

Chief Executive Amanda Blanc said trading continues to be "extremely positive right across the business."

United Utilities rose 3.3% despite a drop in first half profit. Revenue rose, however, and the group lifted the half-year payout by 4.1%.

Spirax was also in the green, up 4.2%. It said its outlook for all of 2024 is unchanged, following organic sales growth in the first 10 months.

Elsewhere, the star of the show was Burberry, up 20%, which announced a strategic revamp as it reported a half-year loss.

New Chief Executive Joshua Schulman outlined a new strategic plan, 'Burberry forward', aimed at reigniting the brand by returning to its roots as a quintessentially British luxury house.

RBC Capital Markets said the focus on heritage and outerwear is what "we have been waiting for in terms of strategy as it offers more authenticity in a less competitive category in our view".

Elsewhere, Dr Martens increased 6.2% as Goldman Sachs upgraded to 'neutral' from 'sell', but Keller fell 9.5% as it flagged tricky trading conditions in Europe.

Brent oil rose to USD72.43 a barrel at the time of the London equities close on Thursday, up from USD72.32 late Wednesday.

The price of gold was USD2,576.68 an ounce late Thursday afternoon, down from USD2,591.88 at the same time on Wednesday.

Friday's local corporate calendar sees half-year results from property firm, Land Securities.

The global economic calendar has UK GDP data at 0700 GMT.

[master rsi] 14/11/2024 18:12

How the UPS are performing during last month

[master rsi] 14/11/2024 15:53

How the UPS are performing today

[master rsi] 14/11/2024 15:43

Finally a few of the UPS are moving higher

[master rsi] 14/11/2024 14:45

DOW

Down 33 points at opening

[master rsi] 14/11/2024 10:45

Kier YTD trading in line with expectations

(Sharecast News) - Construction firm Kier Group said on Thursday that it had made a good start to the new trading year and expects its overall performance to be second-half weighted.

Kier said its order book currently stands at roughly £10.9bn, up by £100.0m since 30 June, and stated roughly 95% of FY25 revenues have now been estimated and secured, up from 90% and providing it with "a high degree of certainty".

The FTSE 250-listed group highlighted that "bidding discipline and risk management" embedded across the business had continued to drive the "high quality and profitable" order book.

Kier also noted that it has maintained its focus on operational delivery and cash management as it continued to de-leverage in-line with internal expectations and anticipates "a significant period-on-period improvement".

Chief executive Andrew Davies said: "The current financial year has started well and we are trading in line with our expectations. We are well positioned to benefit from UK Government infrastructure spending plans into areas where Kier offers market leading services. These strong structural drivers and further investments will allow us to further generate shareholder returns."

As of 1030 GMT, Kier shares were up 4.75% at 145.60p.

[master rsi] 14/11/2024 10:31

Acer-backed Winking Studios rises 12% on AIM debut in London
(Alliance News) - Winking Studios Ltd saw its share price rise on Thursday, as it started trading on London's junior market.

The Singapore-based video-game services firm backed by Taiwan's Acer Inc announced the admission of its shares to AIM two weeks after revealing its plans for an initial public offering.

Its shares were trading up 12% at 16.75 pence from its IPO price of 15p on Thursday morning in London. Winking already was listed in Singapore, where it closed flat at SDG0.29, or 17.00p, on Thursday.

This follows a share placing on Monday that raised GBP7.9 million at 15p per share, giving Winking a GBP66.1 million opening market capitalisation.

Winking issued 52.7 million new shares, with Acer's 62.6% holding prior to the IPO rising to 64.2% as subsidiary Acer Gaming Inc bought 40 million of the new shares.

Winking Chief Executive Officer Johnny Jan and Chief Financial Officer Oliver Yen also took part in the placing, with Jan's new holding sitting at 5.5% and Yen's at 0.6%.

Winking previously said that the funds raised from the dual listing will bolster its existing cash resources of USD30 million, with the proceeds allocated towards establishing a stronger presence in Europe and North America, enhancing its operational capabilities, and pursuing strategic acquisitions and joint ventures in Asia and Europe.

Winking was already listed on the Catalist board of the Singapore stock exchange, so its AIM IPO gives it a dual listing.

Winking Studios Chief Executive Johnny Jan said:"Dual Listing on AIM is a significant milestone in our 20-year history and I believe will serve as a powerful catalyst in our mission to become a global leader in video game art services.

"A London listing opens up a wealth of new opportunities, granting us access to a large pool of technology investors well-informed on the sector while enhancing our ability to expand our footprint and grow our client base across Europe and the Americas."

[master rsi] 14/11/2024 10:01

BRBY 839.40 +108p / Burberry stock skyrockets on strategic overhaul v
Shares of Burberry Group (OTC:BURBY) plc surged by 14% on Thursday as the company outlined its strategy to stabilize performance under new CEO Joshua Schulman, despite a challenging first half of the fiscal year.

The luxury brand’s interim results flagged significant pressures: revenue declined by 20%, with operating income swinging to a loss of £41 million compared to a £232 million profit a year ago.

“We update our model to FY25 adj. EBIT loss of €11m (vs. loss of €23m prior) more/less flowing through the H1 beat,” said analysts at Morgan Stanley (NYSE:MS) in a note.

Burberry’s first-half results underscore the difficulty of its recent push to expand beyond core outerwear offerings.

Sales in the Asia-Pacific region dropped by 28%, and the Americas saw an 18% decline, though these were mostly in line with expectations.

The brand also reported a 640-basis-point hit to gross margins due to high inventory levels, with an operating margin impact of nearly 20 percentage points year-on-year.

Inventory issues have led to write-downs and impairments totaling around £33 million.

Schulman has outlined a renewed focus on outerwear, the segment most associated with Burberry’s heritage.

This pivot away from recent efforts to elevate the brand into more diverse luxury categories marks a significant shift in strategy.

His plan to rebuild Burberry’s revenues to £3 billion, primarily through renewed attention on core products, contrasts with more modest market forecasts for around £2.73 billion by 2027-2028.

At first glance, analysts at Morgan Stanley interpret management’s stance to suggest confidence that, under the new strategic plan, Burberry (LON:BRBY) sees no structural obstacles to achieving the targeted revenue, a gross margin around 70%, and an operating margin in the high teens—levels similar to the pre-COVID five-year average.

The key to reaching these targets, however, will be effective execution of the strategy.

Financially, the brand remains cautious about near-term profit recovery. Burberry’s recent guidance acknowledged that it’s uncertain whether the second half will fully offset losses from the first half.

As part of a cost-saving program, Burberry plans to reduce operating expenses by £40 million annually, capturing £8 million in savings so far this fiscal year.

Analysts at RBC Capital Markets observe that Burberry’s financial performance has significantly declined, driven by a tougher luxury market and a miscalculation of price elasticity in its leather goods segment.

However, they view the strategic pivot back to outerwear as a positive shift, bringing more authenticity to the brand in a product category that faces relatively less competition.

[master rsi] 14/11/2024 09:35

MARKET REPORT
LONDON 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.

[master rsi] 14/11/2024 09:17

GSK hails survival results in blood cancer patients with Blenrep

(Alliance News) - GSK PLC on Thursday said its Blenrep drug has shown overall survival benefits in patients with relapsed or refractory multiple myeloma, the third most common type of blood cancer.

The London-based pharmaceutical and biotechnology firm said Blenrep, or belantamab mafodotin, met the key secondary endpoint of overall survival in the Dreamm-7 phase 3 trial evaluating the drug in combination with bortezomib plus dexamethasone, or BorDex.

The trial found that belantamab mafodotin combined with BorDex "significantly" reduced the risk of death in patients when compared to the standard treatment of care daratumumab combined with BorDex.

[master rsi] 14/11/2024 09:04

Lloyds Banking completes GBP2 billion share buyback

Lloyds Banking Group PLC - Edinburgh-based lender - Completes GBP2.0 billion share buyback programme on Wednesday. Since starting purchases back in February, Lloyds buys back 3.69 billion shares.

Current stock price: 54.40 pence

[master rsi] 14/11/2024 08:40

FTSE

Slightly lower by 3 points