Upstream Share Discussion Threads

[master rsi] 05/11/2024 22:25

MARKET REPORT
LONDON MARKET CLOSE: Astra weighs on London as US heads to polls

(Alliance News) - London's FTSE 100 closed just the wrong side of the line on Tuesday, bucking a more upbeat global mood, weighed by sharp falls in AstraZeneca and Schroders.

The FTSE 100 index closed down 11.85 points, or 0.1%, at 8,172.39. The FTSE 250 ended down 91.25 points, 0.5%, at 20,370.04, 0.92 of a point, 0.1%, at 736.29.

The Cboe UK 100 ended down 0.3% at 818.74, the Cboe UK 250 closed down 0.3% at 18,020.88, and the Cboe Small Companies ended flat at 16,373.69.

Weighing on London, AstraZeneca fell 8.2%, losing its top spot as the most valuable company on the FTSE 100 to oil major Shell in the process.

The Cambridge-based pharmaceuticals firm fell back following the release of early data on its weight loss drug portfolio.

AstraZeneca had revealed early data for its prospective weight loss drug at the ObesityWeek 2024 meeting in San Antonio, Texas on Monday.

Deutsche Bank reiterated a 'sell' rating following the update, noting the GLP-1 data "was somewhat underwhelming".

Jefferies took a less pessimistic view noting the data was "largely incremental, as expected."

After the closing bell, AstraZeneca noted its share price movement. It said it is not commenting on "speculative media reports including those related to ongoing investigations in China".

"If requested, we will fully cooperate with the Chinese authorities," Astra said.

London's blue-chip index underperformed European peers. The CAC 40 in Paris rose 0.5% while the DAX 40 in Frankfurt climbed 0.6%.

In New York at the time of the London close, the DJIA was up 0.7%, the S&P 500 was 1.0% higher, and the Nasdaq Composite rose 1.3%.

In the US, voters are heading to the polls as the race to become the next President draws to a close.

Opinion polls suggest there is little to choose between Vice President Kamala Harris and former President Donald Trump.

Kathleen Brooks, research director at XTB, said the outcome of the election will impact financial markets around the globe in two ways.

In the short term, she thinks global financial markets could be hit by volatility if there is a surprise outcome.

"We think that financial markets are pricing for a Trump victory. Thus, a win for Harris could lead to a short term sell off in the dollar, gold and potentially in US stocks. This could also boost global equities, as Harris is seen to be less tempted to slap tariffs on imports. Chinese stocks could rally sharply, along with key European and UK firms."

"Longer term: A win for Trump, could see the dollar pop higher, but we think a win for the former President could have a long-term impact on global financial markets due his plans for tariffs. A US system of import tariffs would reorder global trade flows and hurt global growth."

Heading into the election, figures showed the US services sector remains in rude health.

The seasonally adjusted S&P Global US Services PMI Business Activity Index signalled further strong growth of service sector output in October, ticking down only slightly to 55.0 from 55.2 in September. Activity has now increased in each of the past 21 months.

The figure was well above the neutral 50-point mark separating growth from contraction but was below FXStreet-cited consensus of 55.3.

Separate figures from the Institute for Supply Management also painted a picture of a robust services sector.

In October, the ISM Services PMI registered 56% up from 54.9% in September, expansing for the fourth month in a row, and hitting its highest level since July 2022.

Economists at Wells Fargo noted the gap between service sector activity and manufacturing activity has now widened to a degree only seen once before in records dating back to the 1990s.

But Bradley Saunders at Capital Economics doesn't expect the data to influence Thursday's interest rate call by the US Federal Reserve.

"Either way, we doubt the data will do much to sway the decision of the Fed on Thursday, who will attribute more weight to the third-quarter GDP data and employment report for October released last week."

"Therefore we, along with everyone else, still expect a 25bp cut," he added.

The pound was quoted at USD1.3003 at the London equities close on Monday, compared to USD1.2972 at the close on Monday. The latest gains took sterling back to levels seen before last week's budget.

There was some renewed pressure on bonds. The yield on the long-dated 10-year UK bond yield rose 11 basis points to 4.56%.

The euro stood at USD1.0917 at the European equities close on Tuesday, up against USD1.0889 at the same time on Monday. Against the yen, the dollar was trading at JPY152.08, up compared to JPY151.94 late Monday.

In London, Schroders tumbled 14% after reporting a weaker-than-expected third quarter and flagging GBP10 billion of outflows in the quarter ahead.

The London-based asset manager, which is changing leadership, said AuM reached a new high of GBP777.4 billion on September 30, rising from GBP773.7 billion on June 30, as GBP6.0 billion in positive market, foreign exchange and investment performance outweighed GBP2.3 billion in net outflows.

The net outflows in the third quarter were entirely due to JVs and associates, where they totalled GBP2.6 billion.

In addition, Schroders said in the fourth quarter of 2024 a notified outflow of GBP8 billion from the legacy Scottish Widows mandate will affect Solutions, in addition to notified losses from three Institutional clients totalling GBP2 billion.

Citi analyst Nicholas Herman said while the share price reaction may look harsh it embeds a derating due to a "flow miss, cutting guidance again, comments that the new CEO will be focused on growth rather than on cost savings, and unwind of gains into results."

Elsewhere, UK water stocks gushed higher on Tuesday as JPMorgan and Citi highlighted their attractions ahead of an expected favourable regulatory outcome in December.

Citi upgraded United Utilities to 'buy' from 'neutral' and Severn Trent to 'neutral' from 'sell'. It retains a 'neutral' rating on Pennon.

The broker also opened 90 day positive catalyst watches on United Utilities and Pennon.

JPMorgan was also positive and expects improvements at the final determination from Ofwat in December to drive a re-rating.

JPM placed all three water companies on positive catalyst watch into the event.

It upgraded Severn Trent to 'overweight' from 'neutral' and raised Pennon to 'overweight' from 'neutral'. JPM remains 'overweight' on United Utilities.

United Utilities rose 3.2%, Severn Trent climbed 2.8% and Pennon advanced 3.0%.

Brent oil was quoted at USD76.10 a barrel at the London equities close on Tuesday, up from USD74.70 late Monday.

Gold was quoted at USD2,736.94 an ounce at the London equities close on Tuesday against USD2,735.26 at the close on Monday.

Wednesday's local corporate calendar sees half-year results from retailer Marks & Spencer, housebuilder Persimmon and insurance firm, Beazley.

[master rsi] 05/11/2024 22:04

DOW

Finished around the best of the day with 427 points higher

[master rsi] 05/11/2024 16:41

How the UPS are performing during last month

[master rsi] 05/11/2024 16:24

How the UPS are performing today

[master rsi] 05/11/2024 16:11

FTSE 250 movers: TP ICAP jumps while Burberry drops
(Sharecast News) - The FTSE 250 was trading more or less flat on Tuesday afternoon, with gains from TP ICAP and Pennon offset by falls by Burberry and Close Brothers.

Interdealer broker TP ICAP jumped nearly 6% after reporting record third-quarter revenue following strong performances in its Global Broking and Liquidnet businesses. In the three months to the end of September, group revenue rose 10% to £557m.

Water group Pennon was on the rise as Citi and JPMorgan Cazenove made positive comments on the outlook ahead of Ofwat's Final Determinations next month. Citi in particular upgraded its rating on Pennon to 'overweight' from 'neutral' as it argued the market already discounts balance sheet and environmental performance headwinds the company faces.

Also higher was International Workplace Group after the office developer reported increased revenues for the third quarter alongside robust expansion in its managed and franchised segment.

Burberry led the fallers, pulling back sharply after jumping the previous session on the back of rumours that Italian luxury fashion group Moncler could launch a takeover offer for the British counterpart following a sharp decline in its share price this year. However, a Moncler spokesperson cited by numerous outlets labelled the reports "unsubstantiated".

RBC Capital Markets cut its price target on shares of Close Brothers 425p from 435p and added a "speculative risk" qualifier to its rating as it assessed the impact of premium finance. The bank said that if the Supreme Court upholds the Hopcraft judgement applying a broad interpretation, motor finance litigation could spread to other products like premium finance.

Hilton Food edged lower despite saying it traded in line with management expectations in the third quarter amid a continued strong performance across all three geographical operating regions.

FTSE 250 - Risers

TP Icap Group (TCAP) 240.50p 5.71%

Ithaca Energy (ITH) 103.20p 4.98%

Pennon Group (PNN) 561.00p 4.08%

International Workplace Group (IWG) 167.00p 3.66%

Aston Martin Lagonda Global Holdings (AML) 121.30p 3.23%

Senior (SNR) 139.00p 2.66%

TBC Bank Group (TBCG) 2,880.00p 2.13%

Hochschild Mining (HOC) 236.50p 1.94%

Bank of Georgia Group (BGEO) 4,340.00p 1.88%

Fidelity China Special Situations (FCSS) 220.00p 1.85%

FTSE 250 - Fallers

Burberry Group (BRBY) 814.00p -4.35%

Auction Technology Group (ATG) 453.00p -3.62%

Genus (GNS) 2,015.00p -2.42%

Close Brothers Group (CBG) 220.40p -2.39%

Ocado Group (OCDO) 349.60p -2.29%

Dr. Martens (DOCS) 55.60p -2.11%

Paragon Banking Group (PAG) 677.50p -2.02%

Harworth Group (HWG) 172.50p -1.99%

Foresight Group Holdings Limited NPV (FSG) 450.00p -1.75%

[master rsi] 05/11/2024 15:50

MRO 494.80p +20.60p - Melrose Industries rallies as Citi remains 'high conviction' in the buy case

(Sharecast News) - Melrose Industries shot higher on Tuesday as Citi said it remains "high conviction" in the 'buy' case, given the trough multiple and the strong mid-term cash outlook.

The bank said mid-term cash generation is a central question for investors.

"The growth in receivables, driven by 'pull forward' revenue recognition from the RRSP portfolio, is key to understanding the relationship between profit and cash," it said.
"In this report, we utilise some of the information from the RRSP explainer to drive our receivables estimates."

Citi said that from its analysis, it concludes the company could be generating about £450m to £550m free cash flow in the 2027/2028 timeframe, versus VA consensus of £320m to £420m.

"On peer free cash flow yields, this gives a valuation of £6-8, i.e 30% upside at the low end," it said.

Shares in Melrose surged last Monday after it released a document explaining the accounting around its 19 Risk and Revenue Sharing Partnerships (RRSPs) and said the portfolio was "well positioned" to generate significant returns for investors in the coming decades.

[master rsi] 05/11/2024 15:03

DOW

opening higher with 233 points

[master rsi] 05/11/2024 14:11

NatWest strikes £11bn deal to offload pension payments to Rothesay

(Sharecast News) - NatWest Group has struck what is thought to be the UK's biggest-ever deal to outsource pension payments to a specialist insurance company.

According to Sky News, pension trustees at NatWest have offloaded a roughly £11bn chunk of its corporate pension scheme to Rothesay, the England cricket team's Test match sponsor.

The deal is a landmark in the accelerating trend for companies to insure their pension risks, with NatWest ranking among the UK's biggest pension scheme sponsors.

Its group retirement scheme has about £33.6bn in assets, while it had roughly 190,000 members at the end of September.

The latest deal was disclosed - without reference to Rothesay - in NatWest's third-quarter results statement published last month, but has not been publicly reported.

"In September 2024, the Trustee of the NatWest Group Pension Fund entered into a further buy-in transaction with a third-party insurer for some of the liabilities of the Main Section," the statement said.

Several sources familiar with the transactions told Sky on Tuesday that the counterparty was Rothesay, which declined to comment.

In a statement issued to Sky News, a spokesperson for the NatWest Group pension fund confirmed the deal, saying: "As part of its long-term strategy, the Trustee of the NatWest Group Pension Fund has recently insured around one-third of the Main Section with buy-in policies.

"The buy-in policies are Fund investments that further improve the security of member benefits by increasing protection against demographic and investment risks.

"As with other investment decisions there is no change to member benefits and members will continue to receive their benefits directly from the Fund."

[master rsi] 05/11/2024 13:36

LONDON MARKET MIDDAY: UK PMI read adds to rate cut "confidence"

(Alliance News) - Stock prices in London were mostly edging higher at midday on Tuesday, as US voters get ready to head to the polls and following news of weakened UK service sector growth.

The S&P Global UK services purchasing managers' index declined to 52.0 points in October from 52.4 in September, but beat the flash score of 51.8 points. The PMI composite output index fell to 51.8 from 52.6, surpassing the flash reading of 51.7 but still hitting its lowest figure since last November.

"In one line: the PMI shows growth slowed to 0.2% quarter-to-quarter, but should rebound after the [UK government's] Budget," said Pantheon Macroeconomics analyst Elliott Jordan-Doak, adding that the lower reading "will give the [Bank of England's monetary policy committee] further confidence to cut Bank Rate this week and signal further gradual cuts in 2025".

"The PMI has been beset by budgetary uncertainty this month, rather than material weakening in economic conditions," Jordan-Doak continued. "Forward-looking parts of the survey still suggest growth will rebound later in the year, and the chancellor's expansionary budget should also boost GDP."

The FTSE 100 index was up 5.34 points, 0.1%, at 8,189.58. The FTSE 250 was up 12.12 points, 0.1%, at 20,473.41, and the AIM All-Share was down 0.16 points, less than 0.1%, at 735.21.

Among larger stocks, Schroders lost 14%.

It reported a rise in assets under management in the third quarter, but said net flows from joint ventures and associates turned negative after a positive start to 2024.

AuM reached a new high of GBP777.4 billion on September 30 as GBP6.0 billion in positive market, foreign exchange and investment performance outweighed GBP2.3 billion in net outflows. Said outflows were partly due to market volatility in China.

AJ Bell's Russ Mould said that despite having previously fared better than its peers, "there are signs Schroders is now feeling the heat based on the significant quarterly outflows unveiled today – the highest since the onset of the pandemic. Perhaps more worryingly there is the promise of more to come."

The Cboe UK 100 was down 0.1% at 820.44, the Cboe UK 250 was marginally lower at 18,063.39, and the Cboe Small Companies was down 0.1% at 16,367.14.

In smaller companies, perhaps the biggest news was Asos, which lost 8.9%.

The London-based online-only fashion retailer said its annual pretax loss widened to GBP379.3 million, as revenue fell by 18% to GBP2.91 billion.

On the plus side, Asos said it met its targets for its 'back to fashion' turnaround programme, and anticipates a "significant increase" in full-price sales for financial 2025.

"This is still not a particularly happy story...Even getting close to reclaiming its past glories remains a very long way off for ASOS," Mould remarked. "However, if the company can just get back on a sure footing it would be a good start."

Aferian jumped 80% as it noted sound demand for improvements to video streaming.

The business-to-business video streaming company said it expects to report revenue that is about 20% higher for the six months to its second financial half ending November 30 than the USD12.2 million it reported for the first financial half.

Aferian still expects a net debt reduction by the end of the year, "as cost savings and working capital initiatives implemented in the first half generate improvements in free cash flow".

BigBlu Broadband rose 42%.

The broadband service provider confirmed in response to Australian media reports that it is in discussions with Melbourne-based alternative investment manager Salter Brothers for a deal involving subsidiary SkyMesh.

Sydney-based newspaper Australian Financial Review on Tuesday reported that BigBlu entered into exclusive terms to fully sell SkyMesh to Salter Brothers.

In European equities on Tuesday, the CAC 40 in Paris was up 0.1%, while the DAX 40 in Frankfurt was up 0.1%.

The pound was quoted at USD1.2990 at midday on Tuesday in London, higher compared to USD1.2972 at the equities close on Monday. The euro stood at USD1.0896, up against USD1.0889. Against the yen, the dollar was trading at JPY152.17, higher compared to JPY151.94.

Stocks in New York were called higher. The Dow Jones Industrial Average was called up 0.2%, the S&P 500 index up 0.2%, and the Nasdaq Composite up 0.4%.

As voting begins on the extremely tight US presidential race, with election results expected Thursday in the best-case scenario, concerns abound that today's vote will not produce a clear winner and the results will be contested.

"Investors should prepare for potential market volatility in the weeks following the election if there are delays in certification, which could extend into [mid-December]," Jefferies analysts wrote. " It's advisable to monitor key dates, such as [December] 16 for courts to make final decisions on any disputes."

AJ Bell's Mould, meanwhile, said: "A contested election result could cause volatility on the markets which theoretically would see defensive stocks provide some portfolio ballast. Equally, a clear winner quickly after voting ends could provide some relief to investors and keep markets trucking along.

"Whether that remains the case a few days later is uncertain as investors haven't priced in a particular win yet, and there will be good and bad points to digest for markets if either Donald Trump or Kamala Harris wins."

Brent oil was quoted at USD75.34 a barrel at midday in London on Tuesday, continuing to rise from USD74.70 late Monday.

Gold was quoted up at USD2,741.88 an ounce, higher against USD2,735.26.

Still to come on Tuesday's economic calendar amid the ongoing US presidential election are a US PMI, trade balance and other releases.

[master rsi] 05/11/2024 13:10

How the UPS are performing during last month

[apotheki] 05/11/2024 13:05

AIM listed Arc Minerals / LSE:ARCM

Zambia Licence Update

Details of Investor Call

Arc Minerals (LSE:ARCM), an exploration company forging partnerships to discover and develop Tier 1 copper deposits, is pleased to confirm that, further to the announcement of 19 June 2024, it has had confirmation from the Zambian Ministry of Mines that the large scale mining license application submitted by Handa Resources Limited has been reinstated.

Arc has also had confirmation from the Ministry of Mines that the large scale mining application that was submitted by Zaco Investment Limited is being rectified.

Nick von Schirnding, Executive Chairman of Arc Minerals, commented:

"I am very pleased to report that these matters are being satisfactorily resolved."


Investor Call

Arc announces that an investor call will be held via Zoom at 12:00 UTC on Thursday, 7 November 2024 which will be presented by Nick von Schirnding (Executive Chairman) and Vassilios Carellas (Chief Operating Officer). Investors can join the investor call by using the following link:

hxxps://us05web.zoom.us/j/85294720966?pwd=6ebPDm13jUNcyQJdHFaL4pCsBF8zE4.1

[master rsi] 05/11/2024 12:18

How the UPS are performing today

[master rsi] 05/11/2024 11:56

IQE 12.16p +0.85p

Yesterday's "UPS" looks like finally has reached the bottom and having a good bounce today.

[master rsi] 05/11/2024 11:43

SMALL-CAP WINNERS & LOSERS: Smiths News beats market forecasts
SMALL-CAP - WINNERS

JPMorgan Global Core Real Assets Ltd, up 10% at 72.8 pence, 12-month range 62p-82.6p.
Investment firm says board has concluded that a managed wind-down is in the best interests of shareholders. Follows news on September 3 that shareholders did not pass the continuation vote. Notes that implementation of the wind-down will require shareholder approval, after which it will "conduct an orderly realisation of its assets, and the investment manager will effect redemption requests to the relevant underlying private funds". Estimates that around 50% to 60% of its portfolio could be liquidated by the end of the second quarter next year, with other redemptions satisfied over the subsequent 12 months.

----------

Smiths News PLC, up 6.8% at 60.8p, 12-month range 46p-65.6p.
The Swindon, England-based newspaper and magazine distributor says its full-year performance was ahead of market expectations. Revenue rose 1.1% to GBP1.10 billion, from the prior year's GBP1.09 billion. Pretax profit rose 2.8% to GBP33.2 million from GBP32.3 million. Also declares a final dividend of 3.40p per share, up from 2.75p, and proposes a further special dividend of 2.0p resulting in the total payout rising 72% on-year to 7.15p. Claims trading has started well in the current financial year, and the outlook is in line with expectations. Furthermore, Smiths notes that cost-out plans are in place and targeting continued savings of around GBP5.0 million per year.


SMALL-CAP - LOSERS

Asos PLC, down 8.2% at 345.1p, 12-month range 333.4p-446p.
The London-based online-only fashion retailer's pretax loss widened to GBP379.3 million in the financial year that ended September 1 from GBP296.7 million the year before, as revenue fell by 18% to GBP2.91 billion from GBP3.55 billion. Gross margin has held mostly steady at 40.0% from 41.1%. Adjusted Ebitda declines 36% to GBP80.1 million from GBP124.5 million, reaching the top end of market expectations. Asos says it met targets including clearing stock, embedding a new commercial model, and doubling flexible fulfilment for its 'back to fashion' turnaround programme. Expects a "significant increase" in full-price sales, leading to gross margin rising at least 300 basis points to over 46%. No comment so far on 24% stakeholder Frasers Group PLC's suggestion of merging Asos with rival boohoo Group PLC.

[master rsi] 05/11/2024 11:17

PAF 34.85p = / Pan African Resources acquires 92% on Tennant in all-share deal

(Alliance News) - Pan African Resources PLC said on Tuesday it has acquired the rest of Tennant Consolidated Mining Group Pty Ltd for USD54.2 million in an all-share deal.

The Rosebank-headquartered gold producer already controls 8% of Tennant after purchasing the stake in March 2024 for USD3.4 million.

The all-share acquisition of 92% of Tennant represents a total acquisition cost of USD54.2 million, the Pan African said.

It said new shares, which constitute less than 6% of its issued share capital, are valued at USD50.8 million.
The group expects the deal to be fully implemented during December.

The initial development capital for Tennant's Nobles Gold Project is USD35.7 million, which will be fully funded with Australian debt facilities.

The project is expected to be commissioned by June 2025 and first gold by the following month.
Payback of initial capital investment is expected in less than three years at an average gold price of about USD2,600 an ounce, the junior gold producer said.

Pan African expects production of 50,000 per year at all-in sustaining cost of around USD1,300 an ounce for the first three years of operation.

"TCMG represents an opportunity to further expand and diversify our near-term low-cost production base and the next phase in the growth trajectory of the group, in a Tier 1 mining jurisdiction," Pan African Chief Executive Officer Cobus Loots said.

[master rsi] 05/11/2024 10:00

UK government launches trial of generative AI chatbot on Gov.UK
(Alliance News) - The government has launched a new trial of an OpenAI-powered chatbot to help people find relevant information on the Gov.UK website.

Gov.UK Chat is to be tested by up to 15,000 business users, and will offer advice on business rules and support, with the chatbot linked to 30 of Gov.UK's business pages, including guidance on tax, trade marks and setting up a business.

The tool has been built using Microsoft Corp-backed ChatGPT maker OpenAI's GPT-4o model, which is designed to be able to converse more naturally, and the Department for Science, Innovation & Technology, or DSIT, said it should produce results for users that would otherwise be split across dozens of pages.

DSIT said the trial will help determine the future plans around the technology, and confirmed it could ultimately be rolled out across the full government website of more than 700,000 pages, and currently attracts some 11 million users a week.

DSIT is also leading a scheme to create a new "digital centre" of government, boosting technology adoption across the public sector.

Science & Technology Secretary Peter Kyle said: "Outdated and bulky government processes waste people's time too often, with the average adult in the UK spending the equivalent of a working week and a half dealing with public sector bureaucracy every year.

"We are going to change this by experimenting with emerging technology to find new ways to save people time and make their lives easier, as we are doing with Gov.UK Chat.

"With all new technology, it takes time to get it right so we're taking it through extensive trials with thousands of real users before it is used more widely.

"This is an essential part of our ambition to use AI to improve public services in a safe and reliable way, making sure the UK Government leads by example in driving innovation forward."

Generative AI technology has sparked the AI boom in the tech sector over the last two years, since the public release of OpenAI's ChatGPT in November 2022.

Since then, many of the world's biggest technology firms, including Apple Inc, Alphabet Inc's Google, Microsoft and Samsung Electronics Co have all begun rolling out their own AI assistance tools as they fight to appear as the market leader in the emerging sector.

A small, private trial of the Gov.UK chatbot was conducted last year, with nearly 70% of the responses provided by the chatbot classed as helpful, but DSIT said the test also showed that more development was required to meet the high accuracy standards required for guidance on the government website.

The government also confirmed that stringent safety measures and guardrails have been put in place around the chatbot, with experts on AI safety and safeguarding techniques from the UK's AI Safety Institute consulted on the chatbot's development.

DSIT acknowledged that some inaccurate and erroneous results were likely during the trial, given the emerging nature of generative AI, but said the test would provide information and insights needed to further improve the tool.

[master rsi] 05/11/2024 09:25

MARKET REPORT
LONDON MARKET OPEN: FTSE 100 edges up as election day unfolds

(Alliance News) - Stock prices in London opened mostly higher on Tuesday, following news of faster growth from China but amid a busy week of US election results and interest rate decisions.

"The prediction...I have absolutely no idea who is going to win [the US presidency]. I have high conviction in this view," quipped Deutsche Bank's Jim Reid.

Reid added that "under a divided government scenario, we're less likely to see fiscal stimulus, so that's better news for Treasuries, and with less fiscal stimulus we're more likely to get rate cuts from the Fed".

The FTSE 100 index opened up 17.16 points, 0.2%, at 8,201.40. The FTSE 250 was up 69.58 points, 0.3%, at 20,530.87, and the AIM All-Share was up 1.15 points, 0.2%, at 736.52.

On the FTSE 100, AB Foods was up 2.6%.

It declared dividends totalling 90.0 pence for financial 2024, up 50% from 60.0p the prior year. Pretax profit rose 43% to GBP1.92 billion, while revenue rose 2% to GBP20.07 billion while Primark revenue rose 5% to GBP9.45 billion.

AB Foods said Primark is targeting mid-single-digit percentage sales growth this year, although it expects reduced prices to temporarily hurt its Sugar unit before profitability recovers in financial 2026.

The Cboe UK 100 was up 0.1% at 821.98, the Cboe UK 250 was up 0.3% at 18,125.10, and the Cboe Small Companies was down 0.3% at 16,321.91.

As well as UK composite PMI data out today, investors will also be closely analysing comments from Bank of England Governor Andrew Bailey, ahead of the interest rate call - not to mention that of the US Federal Reserve - this week.

"Of all weeks that of a knife-edge US election isn't the easiest to formulate UK rates market views ahead of a BoE meeting," Lloyds ruminated. "Outright directional views could well be dominated by the fate of the 'Trump trade' as UK markets take their lead from US dynamics...Never will Rachel Reeves have been more relieved to see a sub-consensus US employment report last Friday, after Wednesday and Thursday’s gilt market reactions sent yields rising and effectively eroded the narrow headroom she had given herself against her own new fiscal rule.

"In that case it might be cleaner to try and assess the impact of UK rates market developments this week against EUR rates markets. Both should arguably impacted by the US election news by similar amounts, meaning the relative performance of the UK either way is more likely to reflect the outcome of the BoE rate decision and future policy guidance."

In European equities on Tuesday, the CAC 40 in Paris was up 2.7%, while the DAX 40 in Frankfurt was down 0.1%.

The pound was quoted at USD1.2982 early on Tuesday in London, higher compared to USD1.2972 at the equities close on Monday.

The euro stood at USD1.0892, against USD1.0889. Against the yen, the dollar was trading at JPY152.21, up from JPY151.94.

"With an exceptionally close US election upon us, plus the outcome likely to deliver a binary impact on currency markets, the FX options market is trading at a respectful level of volatility," remarked ING analysts. "In absolute terms, USD/JPY trades on the highest one-week volatility in the G10 space near 19%. These are close to levels seen during the height of the carry trade unwind in early August this year."

In Asia on Tuesday, the Nikkei 225 index in Tokyo was down 1.1%. In China, the Shanghai Composite was up 2.3%, while the Hang Seng index in Hong Kong was up 2.0%. The S&P/ASX 200 in Sydney closed down 0.4%.

China's service economy climbed at a faster rate in October, with employers hiring more staff, survey data published by S&P Global showed.

The seasonally adjusted headline Caixin China general services business activity index rose to 52.0 points in October from 50.3 in September. Moving further above the neutral 50-point mark separating growth from contraction, it indicates activity growth accelerated. The reading easily beat the FXStreet-cited market consensus of 50.5 for October.

Wang Zhe, senior economist at Caixin Insight Group said: "Market optimism improved. The gauge for future activity expectations rebounded by nearly 3 points to reach a five-month high. Businesses expressed confidence in macroeconomic conditions in the near term."

In the US on Monday, Wall Street ended lower, with the Dow Jones Industrial Average down 0.6%, and the S&P 500 and Nasdaq Composite down 0.3%.

On the presidential election, Rabobank commented: "We have a house view that Donald Trump will win...and implement his policy of universal tariffs.

"We view this as inflationary over the long-run, and inflationary inside the United States in the short run, but for medium-sized opening trading economies like Australia there could be a short-run disinflationary shock as goods that would normally find their way to US consumers are suddenly dumped in markets where access remains favourable."

Brent oil was quoted at USD75.05 a barrel early in London on Tuesday, up from USD74.70 late Monday.

Gold was quoted at USD2,740.79 an ounce, higher against USD2,735.26.

Still to come on Tuesday's economic calendar, US releases include composite PMI and trade balance data.

[master rsi] 05/11/2024 08:39

Retail sales were poor for October but not health and beauty

Sales of products other than food were down 0.1% year-on-year over the three months to October, against a decline of 1% last October, and a slight improvement on the 12-month average fall of 1.6%.

Fashion sales took the biggest hit as the mild weather delayed winter purchases, but health and beauty sales remained buoyant, boosted by beauty advent calendars “flying off the shelves”, the BRC said.

With clarity now provided by the Budget and many households escaping paying increased tax from their wages, retailers will be hoping for an upturn in consumer confidence and spending

“Meanwhile, the small screen continues to draw Brits to cosier evenings in, cutting back on evenings out at pubs, bars, and restaurants, instead enjoying streaming and shopping from the comfort of home.”

[master rsi] 05/11/2024 08:28

FTSE

Opening with no direction so far so level with yesterday's close

[apotheki] 05/11/2024 07:56

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

Quicklime Operational Update

The first gasifier's arrival marks a major milestone in Limeco's plant renovation

Firering Strategic Minerals plc, an emerging quicklime production and critical mineral exploration company, is pleased to announce an operational update with regards to its quicklime project in Zambia ("Limeco"), which is being fast-tracked towards the start of phased commissioning in Q4 2024.

HIGHLIGHTS
· Key modifications to the first of eight kilns are nearly complete, which will significantly improve operational efficiency and lower the plant's operating costs.
· Aggregate crushing operation continues to perform well, supporting positive cash flow.
· Positioned to commence production immediately on commissioning of Kiln 1 in Q4 2024 with kiln stockpile now standing at +15,000 tonnes.
· Newly built pilot kiln performing effectively, with promising burn test results.
· Positive off-take discussions progressing well, driven by Limeco's strong production capacity and commitment to quality control, attracting notable market interest.
· Updated JORC-compliant Mineral Resource Estimate anticipated in November 2024.

Yuval Cohen, Chief Executive of Firering, said: "We are delighted by the rapid progress at Limeco, including the installation works for the first gasifier, which marks a key milestone in the plant renovation strategy. Modifications to the first kiln are nearly complete, with commissioning of both the kiln and gasifier targeted for Q4 2024. Laboratory test work has also accelerated, supported by the completion of a pilot kiln, which has yielded initial quicklime (CaO) results between 92% and 94%. This progress is driving productive discussions with prospective clients, and accordingly we are optimistic about securing long-term offtake agreements.

"The upcoming two months promise to be extremely busy as we work toward the production start target, with a steady stream of news expected. This includes the release of an updated Mineral Resource Estimate as Limeco positions itself to meet the rising demand from Zambia's growing copper production market."

[master rsi] 04/11/2024 23:25

DIRECTORS DEALS
Science Group revealed on Monday that executive chair Martyn Ratcliffe had acquired 10,000 ordinary shares in the AIM-listed science and technology consultancy business.

Ratcliffe, who took over as executive chairman in April 2010, purchased the shares on Friday at an average price of 458.0p each, for a total value of £45,800.

Following the transaction, Ratcliff holds a beneficial interest in 9.46m ordinary Science Group shares, representing approximately 21.04% of the company's issued share capital.

Top Director Buys

Bhp Group Limited Npv (di) (BHP)

Director name: CBE,Ross McEwan

Amount purchased: 10,000 @ $42.65

Value: $225,744.99

Afc Energy (AFC)

Director name: Bullard,Gary

Amount purchased: 500,000 @ 9.35p

Value: £46,750.00

Science Group (SAG)

Director name: Ratcliffe,Martyn Roy

Amount purchased: 10,000 @ 458.00p

Value: £45,800.00

Volta Finance Limited (VTA)

Director name: Kershaw,Dagmar Kent

Amount purchased: 1,047 @ 5.50

Value: 5,758.50

Volta Finance Limited (VTA)

Director name: Peacegood,Joanne

Amount purchased: 890 @ 550.00p

Value: £5,433.45

Cqs Natural Resources Growth And Income (CYN)

Director name: Hall ,Louise

Amount purchased: 2,500 @ 196.42p

Value: £4,910.44

Volta Finance Limited (VTA)

Director name: Page,Stephen Le

Amount purchased: 733 @ 5.50

Value: 4,031.50

Volta Finance Limited (VTA)

Director name: Ogoundele,Yedau

Amount purchased: 733 @ 5.50

Value: 4,031.50

Mortgage Advice Bureau (holdings) (MAB1)

Director name: Imlach,Nathan James McLean

Amount purchased: 268 @ 793.00p

Value: £2,125.24


Top Director Sells

Bhp Group Limited Npv (di) (BHP)

Director name: Henry,Mike

Amount sold: 62,373 @ $42.83

Value: $1,413,981.74

Grafton Group Ut (cdi) (GFTU)

Director name: Arnold,David

Amount sold: 30,000 @ 1,017.63p

Value: £305,290.20

Grafton Group Ut (cdi) (GFTU)

Director name: Arnold,David

Amount sold: 10,003 @ 1,016.00p

Value: £101,630.48

Oryx International Growth Fund Ltd. (OIG)

Director name: Mills,Christopher

Amount sold: 5,000 @ 1,250.00p

Value: £62,500.00

[master rsi] 04/11/2024 22:57

Tissue Regenix contacts firms as it considers possible sale

Tissue Regenix Group PLC - Leeds, England-based regenerative medical devices company - In response to press reports, say that it is conducting a review of strategic options, which may include soliciting offers for Tissue Regenix.

Accordingly, the firm has contacted a limited number of potential counterparties to assess whether they could put forward a proposal "that would deliver greater value to Tissue Regenix's shareholders than pursuing a standalone independent strategy". Says it has not received any indicative non-binding proposals to date, and says there can be no certainty any offer will be made.

[master rsi] 04/11/2024 22:34

MARKET REPORT
LONDON MARKET CLOSE: FTSE 100 makes tepid start ahead of pivotal week

London's FTSE 100 clung onto modest gains on Monday, closing well below early highs, as investors eye the US election and central bank decisions this week.

The FTSE 100 index closed up 7.09 points, or 0.1%, at 8,184.24. The FTSE 250 ended down 18.45 points, or 0.1%, at 20,461.29, and the AIM All-Share closed down 3.63 points, 0.5%, at 735.37.

The Cboe UK 100 ended up 0.1% at 821.08, the Cboe UK 250 closed down 0.1% at 18,069.09, and the Cboe Small Companies ended up 0.1% at 16,376.14.

London's blue-chips outperformed European peers. The CAC 40 in Paris and the DAX 40 in Frankfurt both fell 0.5%.

In New York at the time of the London close, the DJIA was down 0.7%, the S&P 500 was 0.2% lower, and the Nasdaq Composite fell 0.1%.

This week sees the US presidential election on Tuesday, followed by central bank meetings in the UK and US on Thursday.

Deutsche Bank noted the race between Vice President Kamala Harris and former President Donald Trump is a near dead heat – both at the national level and within the seven swing states that will decide the outcome of the electoral college.

The broker noted Trump's 2016 victory came down to a roughly 78,000 votes in Pennsylvania, Michigan and Wisconsin, while Joe Biden's win in 2020 hinged on 43,000 votes in Georgia, Arizona and Wisconsin.

JPMorgan noted the election has been a source of policy uncertainty for businesses and investors for the better part of this year.

"Clearing this hurdle should help improve policy visibility, reduce volatility, and increase capital flow," it suggested.

JPM sees a 'Red Sweep' as the most positive for risk into year end on prospects of pro-growth policies and deregulation across industries, while a 'Blue Sweep' would likely be negative for the market.

A surprise poll over the weekend showing Harris leading Trump by 47% to 44% in Iowa saw the dollar lose ground.

Analysts at Brown Brothers Harriman said the poll delivered a blow to the "Trump Trade" because Trump won Iowa by solid margins in 2016 and 2020.

"We doubt that ruby red Iowa will flip blue this week, but the fact that it’s so close spells trouble for Trump in the battleground states."

The pound was quoted at USD1.2972 at the London equities close on Monday, compared to USD1.2949 at the close on Friday. Sterling has now recouped a large chunk of the losses seen in the aftermath of last Wednesday's budget.

The euro stood at USD1.0889 at the European equities close on Monday, up against USD1.0847 at the same time on Friday. Against the yen, the dollar was trading at JPY151.94, down compared to JPY153.02 late Friday.

On Thursday, the Bank of England and US Federal Reserve will announce their latest interest rate decisions. Both are expected to lower rates by 25 basis points.

Simon French at Panmure Liberum observed the tricky balance the Bank of England needs to strike.

"Given the modest turbulence in UK debt and currency markets that followed the budget this week’s interest rate decision has become trickier than was expected."

"The Bank of England risks being dragged into an arena it hates to be - politics. If it decides to cut interest rates the Bank risks accusations of being in the pocket of a government already worried about high interest rates. By contrast should the Bank hold policy rates unchanged it risks further volatility in the cost of UK government borrowing. It is an unenviable choice for an independent central bank."

Nonetheless, most economists expect the BoE to cut interest rates to 4.75% from 5.00%, the second downward move this year. However, a slower cutting path is seen thereafter.

On London's FTSE 100, banks were a firm feature with NatWest, up 2.6%, lifted by positive broker comments.

Keefe Bruyette & Woods raised the UK lender to 'outperform' with a price target of 440 pence. Peel Hunt was also positive, increasing its share price target to 450p.

NatWest has all "engines firing", according to Peel Hunt.

"NatWest trades at a premium to UK clearing bank peers, which in our view is justified by current momentum, the scale of earnings upgrades, profitability, and low direct exposure to certain UK and regulatory issues which are causing uncertainty for some other banks."

Lloyds shook off recent weakness to close 1.2% higher, while Barclays completed a good day for UK high street banks, also gaining 1.2%.

Elsewhere, Frasers rose 2.0% after RBC Capital Markets upgraded to 'outperform' from 'sector perform'.

"We think Frasers' current valuation fails to discount the likely resilience of its sports retail business, its property value and its strategic stakes, for instance in Hugo Boss," analysts at the broker said.

A rise in the oil price also supported London's blue-chip index with BP and Shell up 1.4% and 0.8% respectively.

Brent oil was quoted at USD74.70 a barrel at the London equities close on Monday, up from USD73.64 late Friday.

On Sunday, eight members of the Opec+ group of oil-producing nations said they were extending supply cuts until the end of December.

The move is aimed at boosting oil prices amid uncertain demand and accelerating supply, with an eye on the imminent US presidential election.

Stephen Innes at SPI Asset Management called the move move a "curveball", delaying the much-anticipated December production boost by a month, reflecting the group's "delicate dance" with volatile demand and fragile economic outlooks.

"This strategic decision...underscores just how much the group is feeling the pinch as faltering demand in China and a growing supply wave from the Americas cast a long shadow over the market," Innes added.

On the FTSE 250, Burberry climbed 6.0% after a report suggested that Italian luxury goods firm, Moncler, is considering a bid.

According to an article published on Sunday in the specialist luxury online publication Miss Tweed there is "growing industry chatter" that Moncler is mulling a bid for Burberry considering the latter's significant drop in value over the past year.

In the past 12 months shares in Burberry have fallen 49%.

The report noted Moncler's appetite to turn Burberry around and potential supply chain synergies between the two fashion brands.

Miss Tweed said any deal would likely involve a mix of cash and shares given that Moncler does not have sufficient cash to be able to buy Burberry.

Gold was quoted at USD2,735.26 an ounce at the London equities close on Monday against USD2,741.43 at the close on Friday.

Tuesday's local corporate calendar sees full-year results from Primark owner AB Foods and online retailer, Asos. Coca-Cola Europacific Partners and engineering firm Weir are due to release trading statements.

The economic calendar sees an interest rate decision in Australia, the BRC retail sales monitor in the UK, a slew of composite PMI releases plus the US election.