Upstream Share Discussion Threads

[master rsi] 10/12/2024 21:46

MARKET REPORT
LONDON MARKET CLOSE: Grocers climb but Ashtead weighs as stocks falter

(Alliance News) - Stocks closed lower on Tuesday, giving back Monday's gains, as weak Chinese trade data put hopes for a stimulus-based rally on hold.

The FTSE 100 index closed down 71.72 points, 0.9%, at 8,280.36. The FTSE 250 ended down 75.33 points, 0.4%, at 20,973.94, and the AIM All-Share shed 3.28 points, 0.4%, at 737.57.

The Cboe UK 100 ended down 0.8% at 831.35, the Cboe UK 250 closed down 0.5% at 18,461.26, and the Cboe Small Companies ended 0.2% lower at 16,292.64.

China’s exports rose 6.7% year-on-year in November, official data showed, while imports declined by 3.9%, the most since February. Both metrics missed analyst forecasts of 8.7% and 0.9% respectively.

Citi expects export momentum in China to persist in the short term, particularly as exporters rush to fulfill orders ahead of President-elect Trump’s inauguration.

"However, we remain cautious on the economic outlook, with external risks looming ahead," it added.

"The larger-than-expected slowdown in imports may suggest that domestic demand has yet to respond to the current round of stimulus, and more policy efforts may be needed to stabilize the economy," Citi stated.

The weak data saw miners in the red, with Antofagasta down 3.5%, Glencore down 2.6% and Anglo American down 1.3%.

In European equities on Tuesday, the CAC 40 in Paris ended down 1.1%, while the DAX 40 in Frankfurt ended down 0.1%.

In New York, stocks were mixed at the time of the London close. The DJIA was down 0.1%, the S&P 500 index was 0.1% higher, and the Nasdaq Composite 0.1% lower.

Google-parent Alphabet rose 3.7% reflecting investor confidence following the company's unveiling of its new quantum computing chip, Willow.

Chief Executive Sundar Pichai introduced the chip on Monday, highlighting its ability to significantly reduce computational errors and its performance in benchmark tests.

US inflation figures are due on Wednesday.

According to consensus cited by FXStreet, annual consumer price inflation is expected to accelerate to 2.7% in November from 2.6% in October.

Stephen Innes at SPI Asset Management noted with the Federal Reserve in the "blackout" period before the critical rate decision next week, the spotlight is squarely on this week’s CPI data.

"Market consensus is leaning towards another stubbornly high 0.3% increase in core CPI month-on-month. Although this isn’t ideal, it's unlikely to sway the Fed from proceeding with a planned 25 basis point cut in December. However, a spike to 0.4% in the core CPI could dramatically shift perspectives, challenging the wisdom of rate reductions amidst escalating inflationary pressures, particularly with the impending tariff adjustments under the incoming Trump administration."

Ahead of the CPI print, the US dollar was in demand. The pound was quoted lower at USD1.2748 at the London equities close on Tuesday, compared to USD1.2785 at the close on Monday.

Meanwhile, the euro slumped ahead of the European Central Bank meeting on Thursday. It stood at USD1.0507 down against USD1.0576 at the same time on Monday.

"As for the euro, all eyes are now on the aftermath of the [European Central Bank's] rate decision. Lagarde's upcoming press conference could hint at further easing, potentially setting a dovish stage for the EUR," SPI's Innes remarked.

Berenberg's Holger Schmieding expects the ECB will most likely cut its key policy rate, the deposit rate, by 25 basis points to 3.0%.

If so, the ECB would deliver the fourth such cut since the bank had belatedly started to back away from its overly restrictive stance in June, he noted.

"Amid elevated uncertainty, the ECB is unlikely to provide any clear guidance on the pace and extent of its further monetary easing thereafter. As before, the ECB will likely repeat its mantra that it all "depends on the data", but likely with a more dovish tilt," he suggested.

Against the yen, the dollar was trading higher at JPY152.02 compared to JPY151.19 late Monday.

The FTSE 100's biggest casualty was Ashtead, down 14%.

The industrial equipment rental provider unveiled moves to shift its primary listing to the US alongside worse-than-expected guidance.

Looking ahead, Ashtead now guides for group rental revenue growth of 3% to 5% for the full-year, its outlook cut from 5% to 8% previously, principally as a result of local commercial construction market dynamics in the US.

Full-year profit will be "lower than our previous expectations". Ashtead also expects capital expenditure for the year to be USD550 million lower than previous guidance at the mid-point.

The firm, which generates almost all the group's operating profit from North America, believes that "the US market is the natural long-term listing venue" for the company and that shifting its primary listing to the US from London "is in the best interests of the business and its stakeholders".

Grocers J Sainsbury and Tesco bucked the weaker market trend, rising 1.4% and 1.1% respectively.

Figures from Kantar showed UK grocery sales surged as shoppers continue to stock up on premium products in the run-up to Christmas.

Kantar said Tesco took its highest market share since December 2017, at 28.1%, up from 27.4% a year prior. Its sales grew by 5.2% during the 12 weeks.

J Sainsbury sales increased by 4.7% as its market share improved to 15.9% from 15.6%.

Also in the green, British Land climbed 1.2% as Goldman Sachs upgraded to 'buy' from 'neutral'.

Moonpig shed 15%. It reported a swing to a half-year loss amid tough trading conditions in its Experiences arm. The greeting cards seller and gifting firm backed annual guidance, however. Moonpig's pretax loss in the six months to October 31 amounted to GBP33.3 million, swinging from profit of GBP18.9 million a year prior.

Revenue rose 3.8% on-year to GBP158.0 million from GBP152.1 million. Hurting its bottom line, however, Moonpig booked an impairment of goodwill worth GBP56.7 million, as it now predicts "a longer timeline for fully realising the revenue growth potential of Experiences".

"Moonpig Group current trading remains in line with our expectations," it said.

"Given ongoing macro headwinds in gifting, trading remains challenging at Experiences and we remain focused on delivering our transformation plan. Accordingly, our expectations for full year revenue remain unchanged," Moonpig said.

Brent oil was quoted at USD72.65 a barrel at the London equities close Tuesday, up from USD72.43 late Monday.

Gold was quoted at USD2,690.00 an ounce at the London equities close on Tuesday, up against USD2,669.43 at the close on Monday.

Wednesday's UK corporate calendar has a trading statement from tobacco seller British American Tobacco.

The economic calendar sees US consumer inflation data and the Canadian interest rate decision at 1330 GMT.

[master rsi] 10/12/2024 21:31

DOW

Finished 154 points lower

[master rsi] 10/12/2024 17:37

THG 48.34p +1.28 (2.72%)
It is good to look ahead

[master rsi] 10/12/2024 16:43

How the UPS are performing during last month

[master rsi] 10/12/2024 16:17

How the UPS are performing today

[master rsi] 10/12/2024 15:50

FTSE 250 movers: NCC tanks; FirstGroup motors
Shares in NCC tanked on Tuesday despite the Manchester-based cybersecurity and software services firm delivering in-line annual results, as investors focused on the outlook statement, which pointed to a lengthening of sales cycles in recent months.

FirstGroup announced an agreement to acquire London bus operator RATP Dev Transit London the French state-owned from RATP Développement on Tuesday, for an enterprise value of £90m.

Moonpig said on Tuesday that it swung to a pre-tax loss in the first half as it pointed to "challenging" trading in its Experiences segment.

In the six months to the end of October, the greeting cards and gift retailer swung to a reported pre-tax loss of £33.3m from a profit of £18.9m in the same period a year earlier. Adjusted pre-tax profit was up 9% at £27.3m.

Market Movers

FTSE 250 - Risers

FirstGroup (FGP) 163.60p 6.16%

Dr. Martens (DOCS) 75.15p 2.38%

Wood Group (John) (WG.) 66.55p 2.31%

IP Group (IPO) 51.10p 2.30%

AJ Bell (AJB) 477.00p 1.92%

Raspberry PI Holdings (RPI) 400.30p 1.34%

AVI Global Trust (AGT) 243.50p 1.25%

Indivior (INDV) 907.50p 1.23%

Spectris (SXS) 2,650.00p 1.22%

St James's Place (STJ) 858.50p 1.00%

FTSE 250 - Fallers

NCC Group (NCC) 132.80p -18.23%

Moonpig Group (MOON) 231.00p -13.64%

Fidelity China Special Situations (FCSS) 220.00p -4.14%

Future (FUTR) 1,038.00p -3.98%

Hill and Smith (HILS) 2,020.00p -3.81%

PureTech Health (PRTC) 168.00p -2.78%

CMC Markets (CMCX) 276.00p -2.65%

PZ Cussons (PZC) 87.20p -2.46%

Endeavour Mining (EDV) 1,498.00p -2.41%

Marshalls (MSLH) 315.50p -2.32%

[master rsi] 10/12/2024 15:03

Begbies Traynor reports strong earnings on business recovery growth

(Alliance News) - Begbies Traynor Group PLC on Tuesday reported strong first half results which showed continued revenue and profit growth due to supportive market conditions.

The Manchester, England-based consultancy that provides recovery, financial advisory and property services said revenue in the six months to the end of October increased by 16% to GBP76.3 million from GBP65.9 million year-on-year.

Pretax profit also grew by 57% to GBP4.7 million from GBP3.0 million in the prior year.

The company declared an interim dividend of 1.40 pence per share, up by 7.7% from 1.30 pence in the previous year.

Begbies Traynor said it was confident of meeting current market expectations in its full-year results, which it sees as adjusted pretax profit between GBP23.0 million to GBP24.3 million. Full-year adjusted pretax profit for financial 2024 was GBP22.0 million.

The company said market conditions are supportive for its service lines, and it noted "good activity levels" across the business.

It also said it is "making good progress" towards its medium-term revenue target of GBP200 million.

[master rsi] 10/12/2024 14:40

UPS

THG 47.98p ( 47.96 v 48p )

Suddenly has started to move forward again on the natural uptrend for the last 3 weeks
The order book is so busy with "AT"s that is no stopping at the moment showing at the trades, The Chart shows the shape of an INVERSE Head and Shoulders is being formed and ready for a BREAKOUT from the neck line( An inverse head and shoulders pattern predicts a bearish-to-bullish trend.)
--------------- Intraday ----------------------------------- 2 months --------------------------------------- 1 year ---------------
INDICATORS

[master rsi] 10/12/2024 14:32

DOW

Opening 93 points lower

[master rsi] 10/12/2024 13:55

Yellow Cake net asset value declines amid nuclear fuel uncertainty
(Alliance News) - Yellow Cake PLC on Tuesday reported lower net asset value in the six months that ended September 30, the first half of its financial hear, amid lower uranium prices.

The Jersey-based investment company offers exposure to the uranium spot price, through long-term holdings of physical uranium and commercial activities related to the mineral asset.

Yellow Cake reported a half-year loss after tax of USD87.6 million, swinging from a USD458.8 million profit a year prior.

Net asset value per share was USD8.28 at September 30, down 4.7% from USD8.69 at March 31. Total NAV also was down 4.7%, to USD1.80 billion from USD1.88 billion.

Yellow Cake reported a half-year uranium investment loss of USD81.0 million versus a USD462.9 million gain a year before.

Yellow Cake said its physical uranium holdings increased to 21.7 million pounds from 20.2 million pounds six months prior. The value of its holdings rose accordingly to USD1.77 billion on September 30 from USD1.75 billion on March 31.

Yellow Cake attributed this to a 1.5 million-pound uranium shipment received in June from the Kazakhstan-based National Atomic Company Kazatomprom JSC, with which Yellow Cake has a ten-year framework agreement.

The shipment was originally purchased in October 2023 for around USD100.0 million, and was funded through an oversubscribed share placing that grossed around USD125 million.

Yellow Cake said the shipment's value was offset partly by a drop in uranium's spot price per pound, which declined 6.0% to USD81.75 from USD87.00 in the last six months.

Yellow Cake's overall NAV was reduced by the cash used to buy the uranium to subsequently lost value. Cash assets declined to USD26.5 million from USD133.2 million in the half-year.

Kazatomprom, currently the world's primary uranium producer, said in August that "2025 production would fall well short of previous guidance as sulphuric acid availability and construction schedules lagged".

Yellow Cake acknowledged this could hurt market activity in the fourth-quarter. Still, uranium spot market activity appeared to be rising, the company said, "as financial entities, trading companies, nuclear utilities, and possibly uranium production companies enter the near-term market to secure material as prices firm".

Yellow Cake predicted total transactional volume for 2024 in line with the previous year at around 50 million pounds. The company added that utility contracting remained "subdued", whilst the term uranium price continued to strengthen, with the US particularly affected due to recent limits on nuclear fuel exports from Russia to the US.

Yellow Cake currently holds 21.7 million pounds of uranium in French and Canadian storage facilities, operated respectively by Chatillon, France-based nuclear fuel company Orano SA, and Saskatchewan, Canada-based uranium provider Cameco Co.

Yellow Cake shares were down 1.7% at 538.00 pence each on Tuesday afternoon in London.

[master rsi] 10/12/2024 13:23

MARKET REPORT
LONDON MARKET MIDDAY: China worry holds back European stocks

(Alliance News) - Stock prices in London were lower heading into Tuesday afternoon, as China data underwhelmed and did little to ease investor worry over the outlook for the Asian economy.

"Chinese exports grew at a slower pace in November versus October and imports shrank. That doesn't install much confidence about Beijing's efforts to get the country back on top. The prospect of higher tariffs on Chinese goods exported to the US once Donald Trump is back in the White House also cast a dark cloud on the near-term outlook, making investors nervous about the region," AJ Bell analyst Dan Coatsworth commented.

The FTSE 100 index traded down 42.87 points, 0.5%, at 8,309.21. The FTSE 250 was down 79.58 points, 0.4%, at 20,969.68, and the AIM All-Share was down 1.75 points, 0.2%, at 739.10.

The Cboe UK 100 was 0.5% lower at 833.70, the Cboe UK 250 was also down 0.5% at 18,456.16, and the Cboe Small Companies was down 0.1% at 16,313.99.

The CAC 40 was down 0.5% in Paris. The DAX 40 in Frankfurt was up marginally, however.

Stocks in New York were called mostly higher. The Dow Jones Industrial and Nasdaq Composite are called up 0.1% and the S&P 500 flat.

Chinese President Xi Jinping warned Tuesday that a trade war with the US would result in "no winners", state media said, ahead of next month's inauguration of president-elect Donald Trump.

The former US president unleashed a gruelling trade war with China during his first term in office, lambasting alleged intellectual property theft and other "unfair" practices.

Xi also said during Tuesday's meeting that China had "full confidence" of achieving its 2024 growth goal, state media reported.

Chinese exports rose in November at a slower rate than expected while imports shrunk further, official data showed Tuesday, reinforcing the need for more support a day after top officials pledged to bolster the stuttering growth.

Exports jumped 6.7% on-year to USD312.3 billion last month, China's General Administration of Customs said. The reading was much slower than the 8.7% anticipated by economists in a Bloomberg survey and well down from the 13% leap in October, which was the strongest in more than two years.

Question marks over China's outlook sent shares in Asia-focused insurer Prudential 1.9% lower. Miner Glencore, also exposed to the ebbs and flows of the Chinese economy as the Asian nation is a major buyer of minerals, lost 1.8%.

The pound faded to USD1.2759 early Tuesday afternoon, from USD1.2785 at the time of the London equities close on Monday. The euro declined to USD1.0531 from USD1.0576. Against the yen, the dollar rose to JPY151.69 from JPY151.19.

Ashtead plunged 13%. The industrial equipment supplier cut its annual outlook and plotted a move to a New York primary listing.

It now guides for group rental revenue growth of 3% to 5% for the full-year, its outlook cut from 5% to 8%. Rental revenue in the half-year to October 31 rose 6%. Overall revenue climbed 2%.

Ashtead believes "the US market is the natural long term listing venue". Shifting its primary listing to the US from London "is in the best interests of the business and its stakeholders". It still plans to keep a UK listing.

"Today Ashtead is substantially a US business, reporting in US dollars, with almost all the group's operating profit (98% in FY24) derived from North America, which is also the core growth market for the business. The group's executive management team and operational headquarters are based in the US and the vast majority of the group's employees reside in North America," Ashtead said.

Moonpig shed 12%. It reported a swing to a half-year loss amid tough trading conditions in its Experiences arm. The greeting cards seller and gifting firm backed annual guidance, however. Moonpig's pretax loss in the six months to October 31 amounted to GBP33.3 million, swinging from profit of GBP18.9 million a year prior.

Revenue rose 3.8% on-year to GBP158.0 million from GBP152.1 million. Hurting its bottom line, however, Moonpig booked an impairment of goodwill worth GBP56.7 million, as it now predicts "a longer timeline for fully realising the revenue growth potential of Experiences".

"Moonpig Group current trading remains in line with our expectations. Growth has been underpinned by consistent strong sales and orders at Moonpig and is supported by steady progression at Greetz. Given ongoing macro headwinds in gifting, trading remains challenging at Experiences and we remain focused on delivering our transformation plan. Accordingly, our expectations for full year revenue remain unchanged," Moonpig said.

"Our business is well positioned to deliver sustained growth in revenue, profit and free cash flow, driven by our continued focus on data and technology. With respect to the medium-term, we continue to target double digit percentage annual revenue growth."

Moonpig announced a maiden interim dividend of 1.0 pence per share.

NCC was the worst FTSE 250 performer after it warned lengthening sales cycles would mean modest revenue growth in the current financial year. The stock plunged 18%.

The Manchester-based cybersecurity firm said pretax loss widened to GBP27.5 million in the 16 months to September 30 from GBP4.3 million in the 12 months to May 31, 2023.

NCC, which recently changed its year-end, said revenue rose 28% to GBP429.5 million in the 16 months from GBP335.1 million in the 12 months. On a comparable basis revenue fell 3.2% to GBP324.4 million in the 12 months to May 2024.

Chief Executive Mike Maddison that the firm is currently experiencing a "lengthening of sales cycles" in line with the wider market.

NCC said clients are looking for higher levels of assurance during their procurement processes, a "longer buying cycle" related to longer-term contracts while security leaders are competing for budget with other spending priorities in their organisations.

Elsewhere in London, Begbies Traynor added 5.3%. The professional services consultancy reported improved half-year earnings and sees an annual outturn in line with market expectations.

In the six months to October 31, revenue improved 16% to GBP76.3 million from GBP65.9 million a year prior. Pretax profit surged 57% to GBP4.7 million from GBP3.0 million.

"The group's financial performance in the first six months underpins the board's confidence in delivering current market expectations for the full year, which will extend our strong financial track record of growth," Begbies said.

A barrel of Brent fell to USD71.74 early Tuesday afternoon from USD72.43 at the time of the London equities close on Monday. Gold traded at USD2,672.74 an ounce, rising from USD2,669.43.

[master rsi] 10/12/2024 12:43

How the UPS are performing during last month

[master rsi] 10/12/2024 12:14

How the UPS are performing today

[master rsi] 10/12/2024 11:36

UK households warned of potential further energy bill rises in April
(Alliance News) - Households in the UK could be in for yet another rise in energy costs from April as market "turbulence" and price cap reforms feed through to bills, analysts say.

The latest forecast from Cornwall Insight suggests that the energy price cap could rise to GBP1,762 a year for a typical dual fuel consumer, a 1.4% increase from the cap of GBP1,738 that comes into effect on January 1.

Cornwall Insight said the forecast reflected the economic and geopolitical factors influencing wholesale prices.

It warned that continued uncertainty regarding the future of the Russia-Ukraine conflict and its implications for gas supplies to Europe was now playing out against the second Donald Trump presidency and its impact on gas exports from America.

Meanwhile, new energy network charges and other costs was also compounding an increase in the underlying costs of electricity and gas.

There was also the prospect of reforms adding extra costs to the cap, which could add at least another GBP20 to annual bills, Cornwall said.

Factoring in the proposed reforms, forecasts suggested the cap could rise to around GBP1,782, or a 2.5% increase from January.

Prices are still expected to fall in July next year.

Craig Lowrey, principal consultant at Cornwall Insight, said: "Energy bills in 2025 are shaping up to reflect a perfect storm of regulatory changes and market turbulence, in addition to any broader sector reforms put forward by the new government.

"While the wholesale market will remain a key driver of prices, Ofgem's reforms and the introduction of new charges could raise costs further for households.

"There are a lot of unknowns, and while significant rises in price are currently unlikely, the scale of any increases will depend on how the market and the reforms unfold."

Lowrey added: "What we do know is that the market is unlikely to lower bills, and affordability and fuel poverty will continue to be a pressing issue.

"This underscores the need for policymakers and suppliers to prioritise supporting vulnerable consumers."

Ben Gallizzi, energy spokesman at Uswitch.com, said: "This predicted rise in April's price cap would mark a third consecutive hike for energy prices, adding to the current pain for households.

"This increase could mean the average household on a standard variable tariff would pay 1% more on their rates from April – on top of the 1% increase in January that we're yet to pay.

"This is an early prediction so this 1% rise isn't guaranteed, but energy prices remain uncertain.

"There are now a range of fixed deals available that are significantly cheaper than the predicted price cap for January, so it is well worth running a comparison to see how much you could save.

"Right now, the average household could save up to GBP112 per year against the current price cap by switching to a twelve month fixed deal.

"Consumers who are worried about paying their energy bill should check what energy help they are eligible for, and contact their supplier who may be able to offer support."

[master rsi] 10/12/2024 11:20

Pantheon Resources makes significant North Slope discovery

(Sharecast News) - Pantheon Resources has announced a significant discovery at its Megrez-1 well, located in the Ahpun oil field on Alaska's North Slope, on Tuesday.

The AIM-traded company said the well had reached its target depth, and been cased in preparation for long-term production testing, scheduled to begin in early 2025.

Initial analysis indicated the presence of multiple hydrocarbon-bearing zones over a 1,260-foot vertical interval, confirming the discovery of light liquid hydrocarbons.

The firm said the findings revealed hydrocarbons within the Maastrichtian-aged Top Set and Prince Creek formations.

Two key intervals, known as Top Set 1 and Top Set 3, contained light liquid hydrocarbons at depths between 5,950 and 6,700 feet true vertical depth.

Additionally, hydrocarbons were identified in shallower formations within the Prince Creek interval over a 510-foot vertical section.

Reservoir porosities exceeding 20% were seen in key sections, aligning with expectations set prior to drilling.

Operations were completed on schedule and within budget, gathering an extensive dataset for further evaluation.

That, the board said, included the recovery of a 60-foot whole core from the Top Set 3 interval, 50 sidewall cores, and detailed wireline logs.

It said the samples had been sent to independent laboratories for analysis, with preliminary results expected by February.

[master rsi] 10/12/2024 10:34

GGP 7.70P +0.25p

She is moving nicely up and getting ready for a long-term 5 months 8.05p BREAKOUT

[master rsi] 10/12/2024 10:23

FirstGroup buys bus operator RATP Dev Transit London for GBP90 million

(Alliance News) - FirstGroup PLC on Tuesday said it will buy RATP Dev Transit London Ltd and its subsidiaries at an enterprise value of GBP90 million.

The Aberdeen, Scotland-based public transport provider will buy the company from Paris-based RATP Developpement SA. It said the move will allow it to enter the London bus market and further diversify its revenue.

RATP London has around a 12% market share of bus operations in the UK capital, including a fleet of around 1,000 buses and 90 Transport for London route contracts, with a weighted remaining contract life of 3.3 years. It has around 3,700 employees, over 80% of whom are drivers.

FirstGroup said RATP London had revenue of GBP271 million in the 2023 calendar year. It has around GBP100 million of physical assets, including GBP50 million of freehold property.

The acquisition will be financed with GBP45 million from existing cash reserves, FirstGroup said, plus the assumption of RATP London's asset backed vehicle finances leases, worth approximately GBP45 million.

FirstGroup said it expects the acquisition to be broadly earnings neutral in financial 2025 and 2026. It anticipates annual revenue to grow to between GBP300 million and GBP350 million over the next five years.

[master rsi] 10/12/2024 10:00

I use name-calling maybe once too often, but I do use it like now when an Irresponsible CEO ( Chris Weston ) A B@stard for the day comes out with excuses to get bonuses.
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Thames Water CEO defends bonuses; repeats calls for steep bills hikes
(Alliance News) - Thames Water Utilities Ltd's chief executive has defended bosses getting GBP770,000 in bonuses despite regulators saying it was not justified, as he called for steep hikes to consumer bills to be approved next week.

Chris Weston said: "We need to attract talent to this company… If we don't offer competitive packages, people will not come and work at Thames."

"I completely understand that there are customers out there who struggle with their bills," he added, pointing to bills support offered to about 377,000 customers in the last year.

Heavily indebted Thames Water is England's biggest water company, with about 16 million customers.

Weston took on the job in January and was awarded a GBP195,000 bonus for his first three months at the firm.

Regulator Ofwat revealed in November that Thames Water was planning to use customer cash to pay the bonuses, but ruled that it was not "justified".

Thames Water is in about GBP16 billion of debt, and is trying to secure another GBP3 billion to keep it running beyond May next year.

It faces a crunch decision from regulators next week, as they decide whether to allow a proposed 59% increase in bills over the next five years versus current levels.

Bosses have argued they need the extra money to make Thames Water "investible" enough to attract the funding, and to pay for improvements to its network of pipes and sewers.

On Tuesday, Weston said regulator Ofwat "must recognise" the fundraising when it makes its final decision on December 19.

He said: "We need a regulatory settlement that recognises the reality and individuality of our business."

The demand came as the heavily indebted water company reported a 40% rise in sewage pollution to 359 incidents in the six months to September.

Weston blamed a particularly wet spring and summer period, and said that problems with Thames Water's infrastructure were "decades in the making".

"The infrastructure was designed to operate in the way that it operates.

"It is going to require decades to fix it, to change the way that it operates, and a significant amount of money."

Meanwhile, Thames Water also revealed that it paid up to GBP51 million in fees to advisors over the six-month period as it sought to secure the emergency funding package.

Chief Financial Officer Al Cochran said the "majority" of a GBP40 million and GBP11 million "exceptional items" on its balance sheet were payments to consultants and advisors.

Thames Water has been at the centre of growing public outrage over the extent of pollution, rising bills, high dividends, and executive pay and bonuses at the UK's privatised water firms.

The company is also the subject of bids by several investment groups who are looking to buy the company out.

Those include an offer from investment group Covalis, which could see the company broken up then re-listed on the stock market.

Another bid came from Castle Water, a firm founded by former investment banker John Reynolds and co-owned by Conservative Party treasurer Graham Edwards, was set to make an offer.

Castle Water is understood to be proposing to pump in around GBP4 billion into Thames Water in return for a majority stake.

Weston said on Tuesday that he was "comfortable" with the number of bids received, but declined to say if any others had been submitted.

The process for an equity injection cannot be finalised until regulator Ofwat makes a final decision on planned bill hikes on December 19.

[master rsi] 10/12/2024 09:31

European markets dip amid cautious trade ahead of U.S. inflation data

European stock markets opened slightly lower on Tuesday.

At 3:10 ET (8:10 GMT) Germany's DAX edged down by 0.3%, while France's CAC 40 inched lower to 0.1%.

Investor sentiment was subdued as attention turned to the U.S. inflation report due Wednesday.

Germany's inflation trends upward in November

Germany's November inflation data revealed a year-on-year CPI rise of 2.2%, up from 2% in October, according to provisional figures confirmed by Destatis.

Price growth in services drove this increase, while energy costs continued to exert a moderating influence, albeit less than in prior months.

On a monthly basis, consumer prices dipped by 0.2% in November. Similarly, the Harmonised Index of Consumer Prices rose 2.4% year-on-year but fell 0.7% compared to October.

Oil prices decline amid market caution

Oil markets also faced slight declines during Asian trading on Tuesday, following robust gains driven by expectations of further economic stimulus in China and escalating geopolitical tensions in Syria.

By 3:10 ET, U.S. crude futures (WTI) eased to $68.16 per barrel, and Brent crude slipped to $71.97 per barrel, each down 0.3% and 0.2%, respectively.

Traders awaited further economic signals from both China and the U.S., along with the release of OPEC's monthly report.

[master rsi] 10/12/2024 09:00

MARKET REPORT
LONDON MARKET OPEN: Softer start for FTSE 100 as miners decline

(Alliance News) - Stock prices in London opened on the back foot on Tuesday, with miners and Ashtead keeping the FTSE 100 at bay.

Mining firms climbed on Monday amid hopes of a China economic bounce back next year, but returned some progress on Tuesday. Anglo American was 2.2% lower, Glencore fell 2.1% and Antofagasta lost 2.0%.

The FTSE 100 index traded down 38.21 points, 0.5%, at 8,313.87. The FTSE 250 was up 87.63 points, 0.4%, at 20,961.64, and the AIM All-Share was down 1.51 points, 0.2%, at 739.34.

The Cboe UK 100 was 0.5% lower at 834.37, the Cboe UK 250 was down 0.5% at 18,453.42, and the Cboe Small Companies was flat at 16,325.70.

The CAC 40 was down 0.4% in Paris. The DAX 40 in Frankfurt was 0.2% lower.

The pound faded to USD1.2747 early Tuesday, from USD1.2785 at the time of the London equities close on Monday. The euro declined to USD1.0546 from USD1.0576. Against the yen, the dollar rose to JPY151.61 from JPY151.19.

Back in London, Ashtead gave back 7.5%. The industrial equipment supplier cut its annual outlook and plotted a move to a New York primary listing.

It now guides for group rental revenue growth of 3% to 5% for the full-year, its outlook cut from 5% to 8%. Rental revenue in the half-year to October 31 rose 6%. Overall revenue climbed 2%.

Ashtead believes "the US market is the natural long term listing venue". Shifting its primary listing to the US from London "is in the best interests of the business and its stakeholders". It still plans to keep a UK listing.

"Today Ashtead is substantially a US business, reporting in US dollars, with almost all the group's operating profit (98% in FY24) derived from North America, which is also the core growth market for the business. The group's executive management team and operational headquarters are based in the US and the vast majority of the group's employees reside in North America," Ashtead said.

Moonpig shed 10%. It reported a swing to a half-year loss amid tough trading conditions in its Experiences arm. The greeting cards seller and gifting firm backed annual guidance, however. Moonpig's pretax loss in the six months to October 31 amounted to GBP33.3 million, swinging from profit of GBP18.9 million a year prior.

Revenue rose 3.8% on-year to GBP158.0 million from GBP152.1 million. Hurting its bottom line, however, Moonpig booked an impairment of goodwill worth GBP56.7 million, as it now predicts "a longer timeline for fully realising the revenue growth potential of Experiences".

"Moonpig Group current trading remains in line with our expectations. Growth has been underpinned by consistent strong sales and orders at Moonpig and is supported by steady progression at Greetz. Given ongoing macro headwinds in gifting, trading remains challenging at Experiences and we remain focused on delivering our transformation plan. Accordingly, our expectations for full year revenue remain unchanged," Moonpig said.

"Our business is well positioned to deliver sustained growth in revenue, profit and free cash flow, driven by our continued focus on data and technology. With respect to the medium-term, we continue to target double digit percentage annual revenue growth."

Moonpig announced a maiden interim dividend of 1.0 pence per share.

South32 fell 2.9%. It has withdrawn its production guidance for Mozal Aluminium due to civil unrest in Mozambique.

The Perth-based mining group indicated it has implemented contingency plans to mitigate operational impacts, adding it is working with relevant stakeholders.

Mozambique has been rocked by unrest since an October 9 presidential election, won by the Frelimo party. The opposition claims the election was rigged.

South32 said that due to escalating civil unrest in Mozambique, the transport of raw materials to Mozal Aluminium is being impacted by road blockages.

On the up, Porvair added 4.9%.

The environmental and specialist filtration technology company expects revenue growth of around 9% for the year ended November 30, with "adjusted earnings per share marginally ahead of market expectations".

A barrel of Brent fell to USD71.99 early Tuesday from USD72.43 at the time of the London equities close on Monday. Gold traded at USD2,661.94 an ounce, slipping from USD2,669.43.

In Asia, China's Shanghai Composite rose 0.6%. The Hang Seng in Hong Kong lost 0.5%.

Chinese President Xi Jinping warned Tuesday that a trade war with the US would result in "no winners", state media said, ahead of next month's inauguration of president-elect Donald Trump.

The former US president unleashed a gruelling trade war with China during his first term in office, lambasting alleged intellectual property theft and other "unfair" practices.

He has pledged to impose even higher tariffs on China after taking office next month, just as Beijing is grappling with a shaky post-pandemic economic recovery.

"Tariff wars, trade wars, and technology wars go against historical trends and economic rules, and there will be no winners," Xi said of China-US relations while meeting several heads of multilateral financial institutions in Beijing, according to broadcaster CCTV.

"China is willing to maintain dialogue with the US government, expand cooperation, manage differences and promote the development of China-US relations in a stable, healthy and sustainable direction," said Xi.

Beijing is targeting annual growth this year of around 5%, despite sluggish domestic consumption, high unemployment and a prolonged crisis in the vast property sector.

Xi also said during Tuesday's meeting that China had "full confidence" of achieving its 2024 growth goal, state media reported.

Chinese exports rose in November at a slower rate than expected while imports shrunk further, official data showed Tuesday, reinforcing the need for more support a day after top officials pledged to bolster the stuttering growth.

Overseas shipments have this year represented a rare bright spot in the Chinese economy, with domestic spending mired in a slump and persistent woes in the property sector spooking investors.

However, observers pointed out that the recent spike in exports could be down to companies ramping up stockpiles amid fears of another China-US trade war when Donald Trump takes the White House next month.

Exports jumped 6.7% on-year to USD312.3 billion last month, China's General Administration of Customs said.

In Tokyo, the Nikkei 225 ended 0.5%, while over in Sydney, the S&P/ASX 200 closed 0.4% lower.

The Reserve Bank of Australia left interest rates unchanged on Tuesday, as expected, but said economic activity was "softer than expected in November".

Australia's central bank left the cash rate target unchanged at 4.35% and the interest rate paid on exchange settlement balances at 4.25%.

The RBA said it is "gaining some confidence" that inflation pressure is abating, but "risks remain".

In New York on Monday, the Dow Jones Industrial Average fell 0.5%, while both the S&P 500 and the Nasdaq Composite lost 0.6%.

SPI Asset Management analyst Stephen Innes commented: "As we edge closer to Wednesday's CPI data release, the air is still thick with anticipation of a potential quarter-point rate cut on December 18, especially after Friday's job report showed subtle signs of labour market cooling beneath the surface number.

"As caution sweeps across the trading floors, investors meticulously trim positions in stocks and bonds, bracing for the pivotal economic updates ahead. This air of caution is palpable, reflecting a strategic response to potential shifts emerging from the impending inflation report that could impact future Federal Reserve decisions."

[master rsi] 10/12/2024 08:41

HE1 0.925 -0.035p / Helium One issues equity for services amid well test

LONDON - Helium One Global Ltd (LON:HE1H) (AIM:HE1), a Tanzanian helium exploration company, has announced the issuance of 15,716,113 ordinary shares to a service provider in lieu of cash payment. The transaction was part of a pre-agreed arrangement for services rendered during the company's recent Extended Well Test (EWT).

The new shares are set to be admitted to trading on the AIM market of the London Stock Exchange (LON:LSEG), with expectations that the process, known as Admission, will be effective from 8.00 a.m. on December 13, 2024. These shares will have equal voting rights with the existing ordinary shares.

Following the Admission, Helium One's issued share capital will rise to 5,921,426,876 ordinary shares. The company has stated that it does not hold any shares in treasury, and this total share count will serve as the denominator for shareholders to calculate notifications of interest or changes to their interest in the company's share capital, as per the UK Financial Conduct Authority's Disclosure Guidance and Transparency Rules.

Helium One holds prospecting licenses in Tanzania and has been involved in exploration activities that could position the company as a key player in the global helium market, which is currently facing supply constraints. The company's primary project is located in the Rukwa Rift Basin in southwest Tanzania, which has entered the appraisal stage following a successful exploration drilling campaign in 2023/24.

The EWT conducted in the third quarter of 2024 confirmed a helium discovery, with a continuous flow of 5.5% helium to the surface. This development has led Helium One to file a Mining Licence application with the Tanzanian Government's Mining Commission.

[master rsi] 10/12/2024 08:29

CNA 132p +0.60p - Centrica on track to hit forecasts, ups buyback plan by £300m

(Sharecast News) - British Gas owner Centrica said it expects full-year profits to match analysts' estimates as it beefed up its share buyback programme by £300m.

The company said it "remains committed to its disciplined capital allocation framework", increasing the size of its buyback since November 2022 to £1.5bn.

In a trading update for the final quarter, Centrica said it has made "good strategic progress" in 2024, including the recently announced extension of the lives of its four operational advanced gas-cooled reactor nuclear power stations, along with a solid operating performance across the portfolio.

Full-year adjusted earnings per share are expected to be "broadly in line" with company-compiled consensus of 18.5p, down from 33.4p in 2023.

Adjusted profits in the Retail and Optimisation division are expected to meet forecasts, including growth from the Services and Solutions unit compared with last year. Meanwhile, adjusted profits in Infrastructure are also on track despite a second-half loss at Centrica Energy Storage+.

"The usual uncertainties remain for the balance of the year, including weather, commodity prices and asset performance," Centrica said.

Looking ahead to 2025, all Retail Energy Supply and Optimisation businesses are forecast to be in the medium-term sustainable adjusted operating profit ranges.

British Gas Services & Solutions is expected to deliver a further improved financial result compared with 2024, while Infrastructure adjusted profits are expected to be in the range of £250m-400m.

[master rsi] 10/12/2024 08:10

FTSE

Well down with 40 points and also lower the FTSE 250 with 98 points

[master rsi] 10/12/2024 00:01

SFOR 38.10p -1.50p

Mergers T/O on the Horizon 8 Dec 2024

S4 Capital a little guy in a big pond, the party is beginning

[master rsi] 09/12/2024 23:46

US close: S&P 500 retreats from last week's record close

(Sharecast News) - Stocks were lower at the closing bell on Monday as the S&P 500 came off its third consecutive winning week.

At the close, the Dow Jones Industrial Average was down 0.54% at 44,401.93, while the S&P 500 lost 0.61% to 6,052.85 and the Nasdaq Composite saw out the session 0.62% weaker at 19,736.69.

The Dow closed 240.59 points lower on Monday, extending losses recorded in the previous session on the back of a November jobs report that pointed to stronger-than-expected growth last month.

While last month's non-farm payrolls report revealed payrolls had risen by 227,000, a significant increase from October's upwardly revised print of 36,000, it failed to hurt expectations of a 25-basis point interest rate cut from the Federal Reserve when it next convenes on 17 and 18 December.

Later in the week, investors will pay strict attention to November's consumer price index on Wednesday, as well as Thursday's producer price index, as traders hope to gain further insight into the Federal Reserve's thinking going into its two-day policy meeting next week.