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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
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| Upstream | LSE:UPS | London | Ordinary Share | KYG7393S1012 | ORD 0.25P (DI) |
| Price Change | % Change | Share Price | Shares Traded | Last Trade
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| 0.00 | 0.00% | 1.625 | 0.00 | 00:00:00 |
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| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
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| Last Trade Time | Trade Type | Trade Size | Trade Price | Currency |
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| - | O | 0 | 1.625 | GBX |
Upstream (UPS) Share Charts1 Year Upstream Chart |
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| Date | Time | Title | Posts |
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| 21/12/2024 | 22:53 | SHARES STRONGLY UP during DECEMBER 2024 | 394 |
| 30/11/2024 | 19:45 | SHARES STRONGLY UP during NOVEMBER 2024 | 583 |
| 31/10/2024 | 23:24 | SHARES STRONGLY UP during OCTOBER 2024 | 620 |
| 23/10/2024 | 12:35 | SHARES STRONGLY UP this week 08/01/07 | 350 |
| 30/9/2024 | 21:46 | SHARES STRONGLY UP during SEPTEMBER 2024 | 604 |
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Posted at 17/12/2024 12:49 by master rsi MARKET REPORTLONDON MARKET MIDDAY: Stocks down as BoE sure to "hold rates steady" (Alliance News) - Stock prices in London were still in the red at midday on Tuesday, following the morning's UK unemployment and eurozone trade data. For the rest of the week, Hargreaves Lansdown's Matt Britzman said: "Rates are expected to hold firm in the UK later in the week, while the US looks all but certain to cut on Wednesday." The UK Office for National Statistics reported that unemployment in the three months to the end of October remained unchanged on-month at 4.3%. However growth in average earnings including bonuses picked up to 5.2%, easily beating the FXStreet-cited consensus of 4.6%. "A sluggish economy isn't exactly providing the fuel for job creation and realised fears about potential tax rises in the Budget have made employers cautious," warned AJ Bell's Danni Hewson. "These figures are backwards looking, but recruiters have said they are situated in the crow's nest to provide a sort of early warning system. "Their concerns about a potential recession on the horizon were given further weight by the latest PMI data which showed the private sector cut jobs at the fastest rate in four years this December as businesses reacted to tax changes." "Adjusted for inflation, real wages continued to climb, but the stronger print has all but assured the Bank of England will hold rates steady on Thursday, with markets pricing in a 93% chance of no change," Britzman predicted. "Investors are now in wait-and-see mode, watching whether the labour market cools in the wake of the Budget, with February's rate cut prospects looking like a coin toss." The FTSE 100 index was down 57.51 points, 0.7%, at 8,204.54. The FTSE 250 was down 207.89 points, 1.0%, at 20,605.14, and the AIM All-Share was down 6.05 points, 0.8%, at 723.44. The Cboe UK 100 was down 0.6% at 823.69, the Cboe UK 250 was down 1.2% at 18,102.93, and the Cboe Small Companies was down 0.2% at 16,034.75. Bunzl remained the FTSE 100's biggest loser, down 5.9%. This was despite its trading statement celebrating another year of "significant progress", but which cautioned that continuing price deflation will have a "slight" impact on annual profitability. "It's rare to see Bunzl doing anything other than plod along so a warning from the distribution company has caught the market by surprise, explained AJ Bell's Hewson. "The company says stickier than expected deflation will hit profit and that’s upset the share price...a deflationary environment can act as a headwind if it has already bought a lot of stock at higher prices and has to sell them for less than originally expected." Chemring was the worst FTSE 250 performer, dropping 10% despite its annual results including profit and revenue rises, as well as higher dividends. "At a time when much of its peer group is benefiting from an increase in global security risks and instability, defence outfit Chemring continues to shoot itself in the foot," Hewson remarked. "While there were several positives in the company’s full-year results, fall in underlying profit margins did not go unnoticed by the market." She added: "To put its share price underperformance into context, since the invasion of Ukraine by Russia in early 2022, BAE Systems shares have more than doubled, while Chemring is up just 30%." Among small caps, Capita fell 8.9%. It said its 2024 outlook for adjusted operating profit was unchanged, and that it was "increasingly confident" in delivering its medium-term operating margin target of 6% to 8%. However, it claims to expect around GBP20 million in additional annual costs due to planned national insurance increases. Moreover, Hewson said, Capita "guided for up to GBP140 million of free cash outflow in 2024 as a result of lower revenues and a change in approach to managing its working capital. It also guided for a hit to free cash flow in its new year, completing a barrage of bad news that left investors shaking their heads in disappointment." Technology Minerals had a much better day, as its shares more than tripled. The stock was restored to trading in London on Thursday. The firm also announced that its 48%-owned subsidiary Recyclus has signed a black mass offtake deal with Glencore. In European equities on Tuesday, the CAC 40 in Paris was up 0.3%, while the DAX 40 in Frankfurt was up 0.2%. The eurozone's international trade surplus contracted in October, figures from Eurostat showed, shrinking to EUR6.8 billion from EUR9.4 billion a year ago and contracting on-month from EUR11.6 billion in September. The monthly reduction was mostly due to a reduced surplus for chemical and related products, which contracted to EUR19.2 billion from EUR21.7 billion. Exports grew annually by 2.1% in October to EUR254.0 billion, with imports up by 3.2% to EUR247.2 billion. The pound was quoted slightly higher at USD1.2698 at midday on Tuesday in London, compared to USD1.2694 at the equities close on Monday. The euro stood lower at USD1.0491, against USD1.0504. Against the yen, the dollar was trading lower at JPY153.81 compared to JPY154.23. Stocks in New York were called mostly lower. The Dow Jones Industrial Average was called down 0.3%, the S&P 500 index down 0.2%, and the Nasdaq Composite up 0.1%. Brent oil was quoted lower at USD73.35 a barrel at midday in London on Tuesday from USD73.82 late Monday. "Hopes for a rebound in consumption were tempered by weak economic data from China, while forecasts of oversupply next year kept a lid on further gains," commented Hargreaves Lansdown's Britzman. "Still, ongoing geopolitical tensions and anticipation of the US Federal Reserve's final rate decision, where a rate cut is widely expected, helped keep oil prices steady." Gold was quoted at USD2,640.55 an ounce against USD2,650.30. Still to come on Tuesday's economic calendar, the US releases retail sales, industrial production and the Redbook index reading. |
Posted at 12/12/2024 08:33 by master rsi LONDON BRIEFING: Currys says price hikes "inevitable" after UK budget(Alliance News) - London's FTSE 100 is called to open higher on Thursday, ahead of an expected European Central Bank rate cut, while tech shares in New York enjoyed a rip-roaring rise overnight. A US inflation reading for November, although hotter than the previous month, cemented expectations of a Federal Reserve rate cut next week. Numbers showed the pace of US consumer price inflation picked up to 2.7% in November, from 2.6% in October. "The report lacked surprises. This scenario has reinforced the perception that monetary policy could continue to normalize toward 2025, despite potential uncertainties linked to the new administration of Donald Trump, whose proposals, such as tariffs, could impact inflation dynamics," Pepperstone analyst Quasar Elizundia commented. "Looking ahead, investors will turn their attention to the Fed meeting next week, seeking clues about the monetary policy path for 2025. While the possibility of further rate cuts remains high, Fed Chair Jay Powell has emphasized a relatively cautious approach." Before the Fed decision next week, the ECB is expected to cut on Thursday afternoon. Swissquote analyst Ipek Ozkardeskaya commented: "The ECB is expected to deliver another 25bp cut at today's meeting. Some have been expecting the ECB to do more than that. Since Donald Trump won the US presidential election, the increased risks on European economies due to tariff threats brought some investors and analysts to bet for a 50bp cut as an immediate reaction. Others, like me, think that the ECB would better deliver a cautious 25bp cut today AND shift its focus from inflation to growth, as doing so will open the way for a series of rate cuts instead of a jumbo cut that the zone doesn't need in a hurry." Here is what you need to know at the London market open: MARKETS FTSE 100: called up 0.2% at 8,315.42 ---------- Hang Seng: up 1.3% at 20,424.48 Nikkei 225: up 1.2% at 39,849.14 S&P/ASX 200: down 0.3% at 8,330.30 ---------- DJIA: closed down 99.27 points, 0.2%, at 44,148.56 S&P 500: closed up 0.8% at 6,084.19 Nasdaq Composite: closed up 1.8% at 20,034.90 ---------- EUR: higher at USD1.0522 (USD1.0490) GBP: higher at USD1.2777 (USD1.2746) USD: lower at JPY152.44 (JPY152.49) GOLD: higher at USD2,719.37 per ounce (USD2,716.47) (Brent): higher at USD73.67 a barrel (USD73.05) (changes since previous London equities close) ---------- ECONOMICS ---------- Thursday's key economic events still to come: 13:15 GMT eurozone interest rate decision 11:00 GMT Ireland CPI 13:30 GMT US initial jobless claims 13:30 GMT US PPI ---------- Prime Minister Keir Starmer will meet European Council President Antonio Costa as he continues efforts to "reset" the UK's relationship with the EU. The prime minister's meeting with Costa comes just days after Chancellor Rachel Reeves joined European finance ministers in Brussels. Starmer and Costa are expected to meet in Downing Street on Thursday afternoon to discuss the prime minister's hopes for a closer relationship with the EU after the acrimony of the Brexit battles. Details of Costa's trip to London were published on the European Council's website. On Monday, Reeves told her eurozone counterparts she wanted to "rebuild those bonds of trust that have been fractured in the last few years under the previous government and to show our friends, neighbours and allies in the EU that we want a reset of those relationships". As well as the post-Brexit relationship, the talks between Starmer and Costa could cover wider global issues including the situation in Syria. ---------- UK house prices will register an increase next year, property portal Rightmove predicted, with London set for a bumper year of growth too amid a boost from rate cuts. Rightmove said 2025 is set to be a "buyers market" as the firm revealed five housing market predictions for next year. According to the FTSE 100-listed property portal, national average asking prices will rise by 4% in 2025 - the firm's largest price growth prediction since 2021 - with around 1.15 million transactions expected. However, with the average number of homes available per estate agent branch at its highest for 10 years, buyers are "often spoilt for choice", the firm added. This feeds into its expectation of strong competition remaining for sellers, which will likely contribute towards preventing higher price growth, with it noting that "2025 is set to be a buyers market". Rightmove also anticipates that next year will mark the start of a turning point for house prices in London, which it notes have been lagging, with asking prices in the capital up 12% compared with 21% in Great Britain as a whole compared with 5 years ago. It expects London price growth to either match or be marginally ahead of national price rises. Four base rate cuts in 2025 are expected to drive a decline in average mortgage rates to around 4.0% from the current five-year and two-year fixed rates of 4.83% and 5.08% respectively. ---------- House price growth in the UK has been gaining momentum but mortgage rates may curtail the recovery in housing market activity "before long", according to surveyors. A net balance of 25% of property professionals reported house prices rising in November, increasing from a balance of 16% observing a rise in October, the Royal Institution of Chartered Surveyors said. The findings mark the fourth consecutive month of rising prices. Professionals expect house prices to continue rising over the next three and 12 months, the report said. New buyer inquiries and new instructions to sell properties also increased in November, although the volume of sales being agreed remained broadly unchanged, Rics said. A net balance of 19% of professionals predict an increase in sales activity over the next three months. But market appraisals in November were on par with levels one year ago, which could signal a potential slowdown in the pipeline of new listings moving into 2025, the report added. ---------- BROKER RATING CHANGES UBS raises Diageo to 'buy' (sell) - price target 2,920 (2,300) - pence ---------- Barclays raises Pennon to 'overweight' (equal-weight) - price target 800 (690) - pence ---------- COMPANIES - FTSE 100 London Stock Exchange Group said it has sealed a deal to sell its stake in Euroclear. LSEG will net EUR455 million from the sale of a 4.9% stake in the clearing and settlement services provider. The stake is being sold to TCorp, "the financial services partner to the New South Wales government". COMPANIES - FTSE 250 Currys left its yearly guidance unchanged but the electricals retailer hit out at "unwelcome headwinds from UK government policy". Currys predicted that measures announced in the UK government budget are "likely to add around GBP32 million of annual cost to our business". "We will seek to mitigate as much of this as possible through cost saving measures including process improvement, automation, offshoring, outsourcing and other overhead efficiencies. Some price rises are also inevitable. We will further update on this in due course," it added. Currys said its trading performance "continues to strengthen, with profits and cashflow growing significantly". Its pretax loss in the half-year to October 26 narrowed to GBP10 million from GBP44 million. Revenue improved 1.3% to GBP3.92 billion from GBP3.87 billion a year prior. Chief Executive Alex Baldock said: "In the UK&I, we made big improvements to both Online and Stores channels, customers continued to take more of the solutions and services that are valuable to them and to us, and such growth drivers as B2B and iD Mobile performed well. All this showed in growing sales, market share, gross margins and profits. In the Nordics, we gained market share, increased gross margins, tightly controlled costs and grew profits in a still-tough consumer environment." Currys still expects to see growth in profit and free cash flow this year, with the firm leaving annual guidance unmoved. Baldock added: "This is despite new and unwelcome headwinds from UK government policy. These will add cost quickly and materially, depress investment and hiring, boost automation and offshoring, and make some price rises inevitable. Still, there's plenty we can control, including mitigating much of this headwind. We'll keep colleague engagement world class, customer satisfaction increasing, cashflow growing for shareholders, and playing an ever-bigger role in society. We have growing momentum at Currys." ---------- SThree warned tough market conditions are expected to continue in its new financial year, but the recruiting company announced a GBP20 million share buyback. SThree, focused on the science, technology, engineering and mathematics fields, said net fees declined 12% in the year to November 30 to GBP369.1 million from GBP418.8 million. At constant currency, net fees fell 9%. "As has been widely reported across our industry, the past year has been characterised by protracted challenging market conditions which have impacted new business activity," CEO Timo Lehne said. "It is our specialism in STEM and Contract, combined with careful cost management, that has delivered a resilient performance, with FY24 expected to be in line with market consensus." It puts market consensus for pretax profit at GBP67.4 million, which would represent a 13% fall from the GBP77.9 million achieved in financial 2023. Looking to the new year, it is making the "prudent assumption" that tough market conditions will persist, hurting net fees. It now expects pretax profit of GBP25 million for financial 2025, down more than 60% from what it expects for the year just gone. SThree announced it plans to launch a new buyback of GBP20 million to be completed over the next six months. "In light of SThree's cash generation and strong balance sheet, the board considers it prudent to launch the buyback, in line with its stated capital allocation policy," SThree added. ---------- Drinks company C&C Group said it has named the former boss of Irn-Bru maker AG Barr as its new chief executive, with effect next month. Roger White joins C&C as CEO from January 20. Ralph Findlay will return to his position of non-executive chair "following a short period of transition" after White joins. Back in June, C&C said Patrick McMahon would step down as chief executive, to take responsibility for accounting errors made during his tenure as chief financial officer. The company, behind brands including Bulmers, noted White was CEO of AG Barr from 2002 until May 2024. ---------- Auction Technology Group shareholder TA Associates will sell its entire stake in the company. Through various sub-funds, TA will sell 15.3 million shares in the auction market operator at GBP5.50 each, netting some GBP84.4 million. The shares represent all of TA's near-13% holding in Auction Techhnology. Auction Technology will receive no proceeds from the sale. In addition, TA representative Non-Executive Director Morgan Seigler will step down from the Auction Technology board following the sale. Seigler, co-head of TA's EMEA Technology board, joined the Auction Tech board when the company was acquired by TA in 2019. The sale is expected to take place next week Friday. TA had sold a 5% stake in Auction Technology back in June, netting some GBP32 million. OTHER COMPANIES Gas, oil and renewable energy projects firm Parkmead Group will sell its UK offshore oil licences and Dutch onshore gas licences to Serica Energy for up to GBP134 million. North Sea-focused oil and gas firm Serica will pay an initial GBP5 million, with a further GBP9 million in deferred payments to be paid in stages over the next three years. In addition, there will be contingent payments related to development milestones relating to the the Skerryvore prospect and the Fynn Beauly oil discovery. Including the initial payment, the deferred sum and the contingent considerations, the deal could be worth GBP134 million in total. Parkmead is selling its subsidiary Parkmead (E&P), which houses its UK offshore oil licences together with Netherlands onshore gas licences. Parkmead (E&P) includes a 50% working interest in Skerryvore and 50% of Fynn Beauly. Serica believes the deal "provides optionality regarding future projects, simplifies decision making, and provides strategic flexibility" in regard to its position in Skerryvore. It will be the operator of the asset with a 70% stake when the deal concludes. It had already owned a 20% interest. ---------- Parkmead Group will "continue to hold all its other energy assets". "These include its revenue generating portfolio of onshore gas fields in the Netherlands and, in the UK, its operated Kempstone Hill Wind Farm and its potential solar and wind energy development projects at Pitreadie," it added. The firm added: "Parkmead has been carefully considering the outlook for its UK North Sea oil licences, and the potential capital requirements needed were they to be progressed through appraisal and development. The offshore sector is facing continuing challenges in the form of the current political environment towards UK oil & gas, and the focus of the UK government on its net zero strategy. In this context, Parkmead believes that the opportunity to progress these UK North Sea oil licences would be best served within the portfolio of a larger, North Sea focused company, enabling Parkmead to apply its expertise and the company's resources on growing its Netherlands gas assets and its projects in renewable energies." |
Posted at 09/12/2024 23:29 by master rsi Broker tips: Berkeley, Marlowe, AJ Bell, Ashtead, Touchstone Exploration(Sharecast News) - RBC Capital Markets has cut its target price for Berkeley Group and reiterated an 'underperform' rating, saying that while the long-term picture looks intact, it has cut its forecasts for shareholder returns. RBC lowered its target price from 4,950p to 4,700p for the stock following the housebuilder's guidance last week for shareholder returns of at least £2bn over the 10 years to 2035. RBC also cut its estimates for returns over 2026, 2027 and 2028. Up until last week, when the housebuilder announced its new 10-year strategy (Berkeley 2035), the company had been cutting back on land purchases due to a stricter planning and regulatory environment, choosing to return more cash to shareholders. However, with the new government being pro-growth and pro-housebuilding, Berkeley has "got its mojo back and is doing what is does best - buying land and optimising planning today to deliver higher profits tomorrow", RBC said. "Whilst some have grumbled at the implied reduction in shareholder returns in the first half of Berkeley 2035, in our view they are missing the fact that big cash returns today shrink the business and reduce the returns of tomorrow-you can have too much of a good thing," the broker said. Analysts at Berenberg slashed their target price on business-critical services and software firm Marlowe from 710.0p to 400.0p on Monday following the group's interim results on 5 December. Berenberg noted that Marlowe's H1 results covered the transformational divestment of its GRC assets in June and the demerger of its occupational health division in September, with both deals realising shareholder value, as well as leaving "a more focused group" with high earnings quality, derived from non-discretionary, regulatory-driven services of its remaining testing, inspection and certification business. "Marlowe's H1 results confirm that the TIC business has continued to deliver mid-single-digit organic growth from strong market positions in fire services (where it is the UK's number three player with a 3% market share) and water services (the number one player with a 4% share)," said Berenberg, which reiterated its 'buy' rating on the stock. The German bank also stated Marlowe's H1 results signified in-line trading, meaning that its continuing operations forecasts remained largely unchanged - save for buyback updates. Marlowe added that post-demerger, Marlowe trades on a target 9x FY26E enterprise value to underlying earnings multiple, still reflecting a discount to larger, more liquid peers. Shore Capital upgraded AJ Bell on Monday to 'buy' from 'hold' following share price weakness. "Our earnings per share forecasts are unchanged after FY24A results, despite increasing costs as investment for long-term growth accelerates," it said. "We were reassured by AJB's comments around the impact to AuA from changes to pensions tax following the Budget." Shore continues to expect volatility in assets under administration movements when AJB reports first-quarter trading on 30 January. However, it said the long-term imperative for individuals to save for retirement remains, regardless of tax on unused pensions. Shore said: "With a largely recurring revenue profile and sticky customer base, earnings quality is high, underpinned by a scalable platform with margin expansion potential providing significant growth optionality. "With EPS forecast to grow at a compound 10% from FY24A-27F, FY25F price-to-earnings at more than 20x, and a progressive dividend, we raise fair value to 525p (from 465p) and our recommendation to buy." Deutsche Bank downgraded its stance on equipment rental firm Ashtead on Monday to 'hold' from 'buy' as it said the stock was trading close to its 6,500p price target. The bank said it remains positive about the long-term prospects for Ashtead, which is the second-largest equipment rental operator in the US. It said Ashtead benefits from a structural shift from buy to rental and it believes the larger sector operators will benefit from scale and high service levels to customers and could also benefit from an acceleration in re-shoring activity as a result of Trump's presidency. As far as the valuation is concerned, DB noted the shares are trading on a calendar 2025 estimated price-to-earnings of around 18x and EV/EBITDA of 8.1x. Deutsche said downside risks include a loss of key management, a more challenging period of construction activity, greater competition and an inability to recruit skilled labour. Upside risks include an improvement in non-residential markets and an acceleration in broader re-shoring activity. Analysts at Canaccord Genuity lowered their target price on oil and gas business Touchstone Exploration from 60.0p to 90.0p on Monday but said there was "still plenty of upside" to the stock despite recent changes in production guidance. Following Touchstone's guidance for the remainder of FY24, and FY25, Canaccord said it had revised its forecasts to better reflect lower production expectations fuelled by higher decline rates from the company's Ortoire licence. "We still see considerable value in Touchstone, with our new target price representing a circa 110% upside to Friday's close," said Canaccord. "However, we acknowledge the lower-than-anticipat Touchstone issued updated guidance for FY25, with a new production range of 6,700-7,300 barrels of oil per day. Alongside this, Canaccord Genuity has new capex expectations of roughly $23.0m in 2025, resulting in operating cash flow of approximately $22.0m and an FY25 year-end net debt of around $30.0m. "We reduce our estimated FY25e production to circa 7,000 boepd from our previous circa 15,000 boepd that assumed a far slower decline from the Cascadura 1ST1 and Deep wells, and we have also taken a more conservative approach to modelling any future Ortoire wells," added the Canadian bank, which reiterated its 'speculative buy' rating on the stock. |
Posted at 06/12/2024 22:31 by master rsi MARKET REPORTLONDON MARKET CLOSE: Stocks mixed but US rate cut seen after jobs data (Alliance News) - London's FTSE 100 closed lower on Friday, hurt by weak utilities stocks, as investors assessed a mixed US jobs report. The FTSE 100 index closed down 40.77 points, 0.5%, at 8,308.61. The FTSE 250 ended up 57.94 points at 21,059.00, and the AIM All-Share closed up 1.30 points, 0.2%, at 738.22. The Cboe UK 100 ended down 0.5% at 834.32, the Cboe UK 250 closed up 0.3% at 18,536.44, and the Cboe Small Companies ended up 0.8% at 16,210.46. For the week the FTSE 100 rose 0.3%, the FTSE 250 gained 1.4% and the AIM-All Share climbed 1.1%. In European equities on Friday, the CAC 40 in Paris ended up 1.3%, boosted by strength in luxury goods stocks. The DAX 40 in Frankfurt ended up 0.1%. Stocks in New York were mixed at the London equities close, with the DJIA down 0.1%, the S&P 500 index 0.3% higher, and the Nasdaq Composite 0.6% to the good. According to Bureau of Labor Statistics, total nonfarm payroll employment rose by 227,000 in November, following an upwardly revised total of 36,000 in October. Last month's figure was increased from 12,000, while November's total topped FXStreet consensus for a rise of 200,000. September's figure was revised up by 32,000 to 255,000 from 223,000. October's figures were distorted by the impacts of hurricanes and strikes. The BLS said the unemployment rate rose to 4.2% from 4.1%, in line with expectations. Wells Fargo said the payrolls figure was "robust" but the separate household survey was "underwhelming". "The unemployment rate rose by one-tenth of a percentage point, the labour force participation rate fell one-tenth, and the underlying details of the survey were indicative of a labour market that continues to lose momentum gradually," it observed. "Perhaps the only "hot" component of the report was the 0.4% increase in average hourly earnings that pushed the year-ago change for wages back up to 4.0%." "On balance, today's employment data further reinforces our view that the FOMC will reduce the federal funds rate by 25 bps at its upcoming meeting," Wells Fargo said. Citi's Andrew Hollenhorst felt the increase in the unemployment rate should be "more than enough evidence for Fed officials to conclude the job market is softening and cut in December". "Payrolls were close to consensus", he observed, but "we think the unemployment rate is the better signal to watch in this labour market". While investors weighed the labour market, the Federal Reserve said that inflation should remain the central bank's priority. "I continue to see greater risks to the price stability side of our mandate, especially when the labour market continues to be near full employment," Fed governor Michelle Bowman told a virtual event hosted by the Missouri Bankers Association. "I think we're still seeing that the US economy is strong," added Bowman, a permanent voting member of the Fed's rate-setting committee. "But core inflation continues to be elevated," she said, referring to the underlying measure of inflation which strips out volatile food and energy costs. The Fed's favoured inflation gauge ticked up slightly in October to 2.3%, slightly above the Fed's long-term target of two percent. The pound was quoted higher at USD1.2748 at the London equities close on Friday, compared to USD1.2717 at the close on Thursday. The euro stood at USD1.0569 at the European equities close on Friday, down against USD1.0568 at the same time on Thursday. According to Eurostat gross domestic product in the eurozone expanded by 0.4% in the three months that ended September 30 from the three months that ended June 30. Growth picked up from 0.2% in the second-quarter from the first. Year-on-year, the eurozone economy increased by 0.9% in the third-quarter, accelerating from a 0.5% increase in the second-quarter. It was the fastest pace of annual growth since the first-quarter of 2023. Quarter-on-quarter growth was the strongest since the third-quarter of 2022. Against the yen, the dollar was trading higher at JPY149.83 compared to JPY150.17 late Thursday. On London's FTSE 100, property stocks and housebuilders took heart from figures from Halifax which showed UK house prices have risen at their fastest pace in two years. The average house price was up 4.8% in November from a year prior, the biggest annual jump since November 2022. The average price climbed 1.3% from October to a record GBP298,083, the fifth monthly rise in a row. Property portal Rightmove gained 1.4%, Barratt Redrow rose 1.1%, Vistry firmed 0.8% and Persimmon advanced 0.7%. But fellow builder Berkeley missed out, falling 0.8%. The Surrey, England-based property developer and housebuilder said there was good underlying demand for homes, as it reported revenue increased 7.2% in the six months to the end of October to GBP1.28 billion from GBP1.19 billion a year before. But pretax profit was down 7.7% in the half-year to GBP275.1 million from GBP298.0 million in the first half of financial 2024. Weighing on the blue-chip index, water suppliers Severn Trent and United Utilities were both down 3.1%. Jefferies downgraded both to 'hold' from 'buy'. While "cautiously optimistic" about the December 19 Final Determinations for the UK water sector, Jefferies thinks the the risk-reward looks more balanced on United Utilities and Severn Trent at their current valuations." Morgan Stanley downgraded the European utility sector to 'in-line' from 'attractive'. "With a finely balanced risk-reward outlook for 2025 amidst multiple uncertainties, we move our sector view to in-line. We prefer electricity networks, and would be selective elsewhere." National Grid, down 1.5%, remains its top pick. SSE, another favoured Morgan Stanley stock, fell 1.3%. Aviva was on the back foot, down 1.4%, after taking a step closer to sealing the takeover of Direct Line. Direct Line rose 5.6% after it said it is "minded to recommend" an improved takeover approach from London-based insurer Aviva. The proposed deal, announced in a joint statement, will see Aviva pay 129.7 pence in cash, and 0.2867 of a new Aviva share for each Direct Line share. Direct Line shareholders also would receive a 5p per share dividend before completion. Based on Aviva's closing share price before the offer period started in November, the proposal values each Direct Line share at 275p, or around GBP3.6 billion. Aviva's new plan represents a 10% premium to its initial approach of 250p per share made in November. Matt Britzman at Hargreaves Lansdown felt the offer was "just too good to pass up". "Direct Line’s board had been holding out, insisting they could make it on their own. But even they had to admit that Aviva’s proposal is a golden ticket they’d struggle to match independently," he added. "Let’s not sugarcoat it: Direct Line has hit some serious potholes lately. Market share has been sliding, underwriting hasn’t exactly been flawless, and regulators have been knocking on the door." Elsewhere, shares in National World rose 5.8% after said it was minded to accept an improved proposed offer from Media Concierge. The Leeds-based owner of the Yorkshire Post and the Scotsman said Media Concierge had, on Tuesday, submitted a new 23 pence per share cash proposal. A bid at this level would value National World at around GBP61 million. In a statement, National World said that it would be "minded to recommend" the improved proposal if a firm offer was made to shareholders on these terms. In November, Media Concierge had offered 21p per National World share, valuing the firm at GBP56.2 million. Media Concierge, a UK-based media representation and advertising services provider, is the largest shareholder in National World, with an around 28% stake. Brent oil was quoted at USD71.22 a barrel at the London equities close Friday, down from USD72.22 late Thursday. Gold was quoted at USD2,640.10 an ounce at the London equities close on Friday, up against USD2,635.39 at the close on Thursday. Next week's UK corporate calendar has a trading statement from miner Anglo American, plus half-year results from industrial equipment supplier Ashtead and electricals retailer Currys. The economic calendar sees interest rate decisions n Australia and Europe, US consumer inflation data and UK gross domestic product figures. |
Posted at 06/12/2024 13:42 by master rsi MARKET REPORTLONDON MARKET MIDDAY: Blue chips stall but CAC 40 soars on luxury lift (Alliance News) - London's FTSE 100 traded around opening levels at midday on Friday, lagging European peers, ahead of the key US jobs report. The FTSE 100 index fell 6.69 points, 0.1%, at 8,342.69. The FTSE 250 rose 37.00 points, 0.2%, at 21,038.06, and the AIM All-Share climbed 1.31 points, 0.2%, at 738.23. The Cboe UK 100 was down 0.1% at 837.74, the Cboe UK 250 was up 0.3% at 18,540.25, and the Cboe Small Companies rose 0.4% to 16,141.48. In Europe, the CAC 40 in Paris stormed 1.3% higher despite ongoing political uncertainty while the DAX 40 in Frankfurt climbed a more modest 0.2%. Kathleen Brooks, research director at XTB said French luxury names are leading the recovery in Paris. Hermes rose 2.6%, LVMH climbed 3.2% while Gucci owner Kering jumped 5.3%. "Hopes of a Chinese stimulus package that focuses on the consumer are building, as Beijing officials meet to discuss 2025 growth targets. Added to this, French luxury names are less impacted by domestic political travails as most of their sales are generated overseas. They are likely to be more impacted by Donald Trump winning the US election than by whatever happens to President Macron. Overall, a technocratic government is on the cards, the fiscal can has been kicked down the road and although forging a new budget is a tough endeavour, the organs of French government can roll over the 2024 budget month on month in 2025, and there is no chance of a US-style government shut down," Brooks said. French President Emmanuel Macron is holding talks with French political leaders on the left and right as he seeks to name a new prime minister and find a way out of France's political crisis. Macron adopted a defiant tone in an address to the nation late Thursday, 24 hours after Prime Minister Michel Barnier's government was ousted in a historic no-confidence vote. Macron vowed to name a new prime minister in the "coming days", rejected growing pressure from the opposition to resign and blamed an "anti-republican front" of the hard left and far right for France's woes. Meanwhile, data showed the eurozone economy grew at the pace expected in the third-quarter of the year. According to Eurostat gross domestic product expanded by 0.4% in the three months that ended September 30 from the three months that ended June 30. Growth picked up from 0.2% in the second quarter from the first. Year-on-year, the eurozone economy increased by 0.9% in the third-quarter, accelerating from a 0.5% increase in the second-quarter. It was the fastest pace of annual growth since the first-quarter of 2023. Quarter-on-quarter growth was the strongest since the third-quarter of 2022. Investor attention now switches to the US nonfarm payrolls data at 1330 GMT, seen as pivotal in determining whether the Federal Reserve will cut interest rates at its December meeting. Bank of America expects nonfarm payrolls to rise by 240,000 in November after coming in at just 12,000 in October. "This above-consensus forecast is driven by expected payback for the temporary drag on payrolls in Oct due to Hurricane Milton and the Boeing strike," it explained. The FXStreet consensus is for payrolls to increase by 200,000 in November. BofA estimates that the hurricane took at least 60,000 off October's payrolls, while strikes, which have mostly since ended, accounted for an additional 41,000 drag. ING said given expectations of a bounce back after last month's weather and strike-hit figure, the market now probably "sees less than 200,000 as a bad number and above 300,000 as a good number." The pound was quoted at USD1.2763 early Friday afternoon, up from USD1.2753 at the time of the London equities close on Thursday. The euro stood at USD1.0582, up from USD1.0568. Against the yen, the dollar was trading at JPY150.56, up from JPY150.17. Back in London, shares in FTSE 250-listed Direct Line rose 7.1% after it said it is "minded to recommend" an improved takeover approach from London-based insurer Aviva. The proposed deal, announced in a joint statement, will see Aviva pay 129.7 pence in cash, and 0.2867 of a new Aviva share for each Direct Line share. Direct Line shareholders also would receive a 5p per share dividend before completion. Based on Aviva's closing share price before the offer period started in November, the proposal values each Direct Line share at 275p, or around GBP3.6 billion. Aviva's new plan represents a 10% premium to its initial approach of 250p per share made in November. Panmure Liberum thinks the revised offer is "good for both sets of shareholders – Aviva has not overpaid and Direct Line shareholders crystalize an attractive return." Aviva shares eased 0.5%. Elsewhere in the FTSE 100, Spirax was under pressure, falling 2.0% after JPMorgan downgraded to 'neutral' from 'overweight'. Also in the red, water suppliers Severn Trent and United Utilities, down 2.4% and 2.0% respectively. Jefferies downgraded both to 'hold' from 'buy'. While "cautiously optimistic" about the December 19 Final Determinations for the UK water sector, Jefferies thinks the the risk-reward looks more balanced on United Utilities and Severn Trent at their current valuations." Morgan Stanley downgraded the European utility sector to 'in-line' from 'attractive'. "With a finely balanced risk-reward outlook for 2025 amidst multiple uncertainties, we move our sector view to in-line. We prefer electricity networks, and would be selective elsewhere." National Grid, down 0.6%, remains its top pick. Housebuilder Berkeley Group slipped 2.5% after its half-year results. The Surrey, England-based property developer and housebuilder said there was good underlying demand for homes, as it reported revenue increased 7.2% in the six months to the end of October to GBP1.28 billion from GBP1.19 billion a year before. Pretax profit was down 7.7% in the half-year to GBP275.1 million from GBP298.0 million in the first half of financial 2024. Berkeley said it is on track to achieve pretax profit guidance of GBP525.0 million for the full-year, and at least GBP450 million for the following year. It also set out a new ten-year growth strategy to provide a new capital allocation framework. As part of the plan, Berkeley has identified GBP7.00 billion of free cash flow to invest over the next ten years. There was good news elsewhere for housebuilders as a survey from Halifax showed UK house prices have risen at their fastest pace in two years. The average house price was up 4.8% in November from a year prior, the biggest annual jump since November 2022. The average price climbed 1.3% from October to a record GBP298,083, the fifth monthly rise in a row. Among small-caps Quiz plunged 41%. The Glasgow, Scotland-based omnichannel fashion brand said it has seen a "marked decline" in traffic both online and in-store in November compared to previous months and the prior year. Sales in the fourth months to November were down 5.7% to GBP24.9 million. As a result, the firm warned cash headroom available was lower than anticipated and that existing bank facilities could be fully utilised in the first-quarter of 2025. It launched a financing and strategic review but anticipates that additional funding will be required in the first-quarter of 2025. Brent oil was quoted at USD71.40 a barrel early Friday afternoon, falling from USD72.22 late on Thursday. Gold was higher at USD2,638.58 an ounce from USD2,635.59. |
Posted at 06/12/2024 09:49 by master rsi MARKET REPORTLONDON MARKET OPEN: Stocks mixed while house prices hit record high (Alliance News) - Stock prices in London opened mostly lower on Friday, as Prime Minister Keir Starmer attempts to sell his "plan for change". Starmer made living standards a key target as he outlined his "next phase" on Thursday, saying he wanted to see real household disposable income rise by the next election. But in an interview with BBC Breakfast, Starmer said: "I want people to feel better off straight away – feel better off in the sense of more money in their pocket, feel better off because they've got a secure job that they know is guaranteed to give them the money they need." Also on Friday, Halifax reported that the average UK house price hit a new record high of GBP298,083 in November. Property values rose by 1.3% month-on-month, marking the fifth increase in a row, Halifax said. On an annual basis, house prices increased by 4.8% in November, accelerating from 4.0% growth in October. Amanda Bryden, head of mortgages at Halifax, said: "Latest figures continue to show improving levels of demand for mortgages...However, despite these positive trends, many potential buyers and movers still face significant affordability challenges and buyer confidence may be tested against a changeable economic backdrop. "As we move towards the end of the year and into 2025," she continued, "positive employment figures and anticipated decreases in interest rates are expected to continue supporting demand. This should underpin further house price growth, albeit at a modest pace as borrowing costs remain above the average of a few years ago." The FTSE 100 index opened down 14.89 points, 0.2%, at 8,334.49. The FTSE 250 was up 13.63 points, 0.1%, at 21,014.69, and the AIM All-Share was down 0.22 points at 736.70. The Cboe UK 100 was down 0.2% at 837.33, the Cboe UK 250 was up 0.1% at 18,510.21, and the Cboe Small Companies was up 16,085.35. The big news on Friday centres around Aviva, which was down 0.4% on the FTSE 100. On the FTSE 250, Direct Line Insurance rose 7.4%. Direct Line has agreed to a takeover bid from Aviva worth 275 pence per share, consisting of 129.7p cash and 0.2867 of an Aviva share. The proposal is a 73% premium to Direct Line's share price on November 27, and 16% above its closing price of 237.80p on Thursday. Aviva has until December 25 to make a firm offer. J Sainsbury led the FTSE 100, rising 1.2%. The supermarket firm repurchased 947,888 shares at average 266.37p on Thursday. Spirax led the laggers, down 2.1% after JPMorgan cut it to 'neutral' with a price target of 7,800p, down from 9,300p. Frasers was down 1.4%. The retailer which owns Sports Direct and House of Fraser said it plans to make a voluntary offer for Norwegian sports retailer XXL ASA at NOK10.00 or around 71 pence per share. Frasers is currently XXL's second-largest shareholder. The offer values XXL at NOK246.4 million, or about GBP17.4 million. In European equities on Friday, the CAC 40 in Paris was up 0.4%, while the DAX 40 in Frankfurt was basically flat. The pound was quoted at up USD1.2763 early on Friday in London, compared to USD1.2753 at the equities close on Thursday. The euro stood higher at USD1.0581, against USD1.0568. Against the yen, the dollar was trading higher at JPY150.33 compared to JPY150.17. In Asia on Friday, the Nikkei 225 index in Tokyo was down 0.8%. In China, the Shanghai Composite was up 1.0%, while the Hang Seng index in Hong Kong was up 1.5%. The S&P/ASX 200 in Sydney closed down 0.6%. In the US on Thursday, Wall Street ended lower, with the Dow Jones Industrial Average down 0.6%, the S&P 500 down 0.2% and the Nasdaq Composite down 0.2%. US data out today includes nonfarm payrolls and consumer sentiment. Brent oil was quoted at USD71.99 a barrel early in London on Friday from USD72.22 late Thursday. Gold was quoted at USD2,641.58 an ounce against USD2,635.39. Still to come on Friday's economic calendar, eurozone GDP and unemployment readings are out later this morning. |
Posted at 06/12/2024 09:07 by master rsi Annual rise in UK house prices picks up to 4.8% in November – Halifax(Alliance News) - The average UK house price hit a new record high of GBP298,083 in November, according to an index. Property values rose by 1.3% month-on-month, marking the fifth increase in a row, Halifax said on Friday. On an annual basis, house prices increased by 4.8% in November, accelerating from 4.0% growth in October. Amanda Bryden, head of mortgages at Halifax, said: "UK house prices rose for the fifth month in a row in November, up by 1.3% in the month – the biggest increase so far this year. This pushed the annual growth rate up to 4.8%, its strongest level since November 2022. "As a result, the record average house price we saw in October edged higher still, with a typical property now costing GBP298,083. "Latest figures continue to show improving levels of demand for mortgages, as an easing in mortgage rates boost buyer confidence. However, despite these positive trends, many potential buyers and movers still face significant affordability challenges and buyer confidence may be tested against a changeable economic backdrop. "As we move towards the end of the year and into 2025, positive employment figures and anticipated decreases in interest rates are expected to continue supporting demand. "This should underpin further house price growth, albeit at a modest pace as borrowing costs remain above the average of a few years ago." Northern Ireland continues to record the strongest property price growth, with values rising by 6.8% annually, Halifax said. House prices in the North West recorded the strongest growth of any region in England, with values up by 5.9%. Scotland saw a more modest rise in house prices compared with elsewhere in the UK, with a 2.8% annual increase. Nathan Emerson, chief executive of property professionals' body Propertymark, said: "With interest rates now easing, many buyers will have increased confidence to approach the housing market. "We are, however, likely to see a spike in homes for sale and those looking to move home, especially across England and Northern Ireland trying to complete before the rises to stamp duty commence from April 2025." Temporary stamp duty thresholds are set to end from April, with the "nil rate" band for first-time buyers in Northern Ireland decreasing from GBP425,000 to GBP300,000. Tom Bill, head of UK residential research at Knight Frank, said: "An increase in borrowing costs and the disappearance of sub-4% mortgages in recent weeks means we expect downwards pressure on house prices to intensify next year. "This sense of temporary strength is reinforced by the fact many buyers are acting ahead of a stamp duty increase next April. The risk that inflation and mortgage rates stay higher for longer means we recently revised down our UK house price forecasts for the next three years. Growth will feel more sustainable once the economy is heading decisively in the right direction." Alice Haine, personal finance analyst at Bestinvest by Evelyn Partners, said: "The prime minister has doubled down on his pledge to boost living standards during his parliament and build 1.5 million new homes – measures that have the potential to improve people's chances of being able to afford a home. "But the combined effects of the cost-of-living crisis and the higher tax burden of recent years have already dealt a heavy blow to how much money people have left in their pockets after they have paid tax and accounted for inflation. And house building targets take some time to materialise." Karen Noye, a mortgage expert at wealth manager Quilter, said: "Recent data from the Bank of England has already pointed to rising mortgage approvals, which reached their highest level since mid-2022. "Combined with a reduction in quoted mortgage rates, this suggests that buyers are returning to the market, encouraged by the more favourable lending conditions. "However, affordability remains a critical issue, particularly for first-time buyers who are still grappling with high borrowing costs and larger deposit requirements, factors that have constrained demand over the past year." Nigel Bishop of buying agency Recoco Property Search, said: "There has been a general uplift in buyer demand in November which impacted on property values and enabled some sellers to achieve their asking price." Jeremy Leaf, a north London estate agent, said: "Demand continues to be strong, particularly for competitively-priced homes in lower-value areas. "However, investors hit by higher buying costs are proving unwilling or unable to take on typically smaller one- and two-bedroom homes. On the other hand, confirmation that the stamp duty concession will not be extended has given an opportunity to first-time buyers, especially of such properties, to take advantage. "That has also given a lift to the rest of the market by releasing second-steppers and connecting chains. However, buyers are taking their time before committing as affordability concerns remain." Jonathan Hopper, chief executive of Garrington Property Finders, said: "The supply of good quality prime homes for sale is strong, and buyers at this end of the market often find themselves spoilt for choice and able to negotiate hard on the price they pay – and this is keeping prime price rises much more modest." Here are average house prices in November and the annual increase, according to Halifax. The regional annual change figures are based on the most recent three months of approved mortgage transaction data: East Midlands, GBP242,282, 3.5% Eastern England, GBP335,063, 3.6% London, GBP545,439, 3.5% North East, GBP175,737, 4.4% North West, GBP237,045, 5.9% Northern Ireland, GBP203,131, 6.8% Scotland, GBP208,957, 2.8% South East, GBP388,534, 3.4% South West, GBP304,558, 3.7% Wales, GBP225,084, 4.1% West Midlands, GBP257,982, 5.5% Yorkshire and the Humber, GBP212,385, 4.7% |
Posted at 06/12/2024 08:39 by master rsi LONDON BRIEFING: Direct Line accepts Aviva takeover bid(Alliance News) - The FTSE 100 was called lower on Friday morning, ahead of eurozone GDP and unemployment readings, while in France President Macron has resisted calls to resign despite the prime minister's downfall. "There is a high risk that on the back of Trump, France and Germany, eurozone growth will come in much weaker than the [European Central Bank's] projections will show," wrote ING's Carsten Brzeski. "The only problem for the ECB to preemptively react to the current political woes is that it could be seen as intervening in national politics on the behalf of France. This is speculation the ECB would clearly rather avoid." On potential interest rate changes, Brzeski said: "We think that the ECB will be hesitant to really walk the walk on getting ahead of the curve and will cut rates by 25bp next week. To bring a bit more dovishness and to signal that the ECB is not getting cold feet in its quest to get ahead of the curve, we expect the ECB to communicate that it will continue bringing rates towards neutral levels and that it no longer rules out bringing rates into easing territory." Investors are also waiting for US nonfarm payroll data on Friday afternoon, which could provide further guidance on monetary policy. Here is what you need to know at the London market open: ---------- MARKETS FTSE 100: called down 16.5 points, 0.2%, at 8,332.88 ---------- Hang Seng: up 1.5% at 19,846.61 Nikkei 225: down 0.8% at 39,091.17 S&P/ASX 200: down 0.6% at 8,420.90 ---------- DJIA: closed down 248.33 points, 0.6%, at 44,765.71 S&P 500: closed down 0.2% at 6,075.11 Nasdaq Composite: closed down 0.2% at 19,700.26 ---------- EUR: up at USD1.0571 (USD1.0568) GBP: down at USD1.2750 (USD1.2753) USD: down at JPY150.15 (JPY150.17) Gold: up at USD2,636.61 per ounce (USD2,635.39) (Brent): down at USD71.68 a barrel (USD72.22) (changes since previous London equities close) ---------- ECONOMICS Friday's key economic events still to come: 11:00 CET eurozone GDP 11:00 CET eurozone unemployment 08:45 CET France current account 08:45 CET France trade balance 08:00 CET Germany industrial production 10:00 CET Italy retail sales 08:30 EST US average weekly hours 08:30 EST US nonfarm payrolls 10:00 EST US Michigan consumer sentiment index ---------- The UK prime minister insisted he was sticking to his missions as he set out "ambitious" targets for Whitehall, despite claims he was "watering down" promises. In a speech at Pinewood Studios on Thursday, Keir Starmer sought to strike an optimistic note after a challenging five months in power, saying Britain was "broken, but not beyond repair" and could still "do great things". Arguing his government had taken action to "fix the foundations", Starmer set out six "milestones" that he said would allow the public to "hold our feet to the fire" on the missions he set for himself before the election. Chief among them was a promise to deliver higher living standards by the next election, saying growth must be "felt by everyone, everywhere", while insisting his long-term aim was still to make the UK the fastest-growing G7 economy. ---------- French President Emmanuel Macron vowed to name a new prime minister "in the coming days" after the resignation of Michel Barnier, whose government was toppled by a no-confidence vote in parliament. In an address to the nation, Macron rejected calls from opponents to resign, saying he would remain president "fully" until the end of his tenure in 2027. He also lashed out at the French far right and hard left for uniting in an "anti-republican front" to bring down the government. "I will appoint a prime minister in the coming days," he said, adding this person would be charged with forming a "government of general interest" with a priority of passing a budget. Defiantly rejecting resignation calls, he added: "The mandate that you gave to me democratically [in the 2022 elections] is a five-year mandate and I will exercise it fully, right up to the end." ---------- US President-elect Donald Trump on Thursday said the right-wing venture capitalist David Sacks would become "the White House AI & Crypto Czar," a post on his social media platform Truth Social showed. Sacks is a confidant of Elon Musk. Trump called artificial intelligence and cryptocurrency "two areas critical to the future of American competitiveness." He also said that Sacks "will safeguard Free Speech online, and steer us away from Big Tech bias and censorship." Sacks will also be charged with creating a legal framework for the crypto industry so "it has the clarity it has been asking for and can thrive in the US". The multi-billionaire Sacks will also head the future president's advisory board on science and technology. Since Trump's election victory on November 5, bitcoin investors have been celebrating, as the currency has soared from USD70,000 before the US election in November to a high of more than USD100,000 this week. ---------- "The conditions are not in place" to sign the EU trade agreement with South America's Mercosur bloc, Italian government sources said, denting proponents' hopes that a deal could be imminent. Italy joined France in opposing the trade pact just as European Commission President Ursula von der Leyen landed in Montevideo to meet with South American leaders at a summit of Mercosur, which groups Argentina, Brazil, Paraguay and Uruguay. "The Italian government considers that the conditions are not met to sign up to the current text," said the sources, calling for greater protection for the farming sector. ---------- Spanish Prime Minister Pedro Sanchez unveiled a new three-year strategic plan to boost Madrid's economic and diplomatic ties with Africa and develop "legal channels" for migration. The move comes as Spain is struggling to curb a surge in irregular migrant arrivals by boat in Spain's Canary Islands in the Atlantic, mainly from Western Africa. "Our country wants to enter a new era in its relationship with the African continent, on an equal footing," Sanchez said after meeting Mauritania's President Mohamed Ould Cheikh El Ghazouani in Madrid. "Africa is already a key partner for Spain, and its importance will continue to grow in the years to come," he added, saying the volume of Spain's trade with Africa now exceeds that of the country with Latin America. ---------- Taiwan President Lai Ching-te said Friday he was "confident" of deeper cooperation with the next Donald Trump administration. "Taiwan is confident that it will continue to deepen cooperation with the new government to resist authoritarian expansion, and create prosperity and development for both countries while making more contributions to regional stability and peace," Lai told reporters in Palau. Lai arrived in the tiny Pacific island nation on Thursday after visiting the American territory of Guam where he spoke with US Republican House Speaker Mike Johnson – the highest-level US contact the Taiwanese leader has had during his week-long trip. During Friday's press conference, Lai also urged democracies to be "more united" to counter growing authoritarianism. ---------- South Korea's ruling party chief says it is necessary to suspend the constitutional powers of President Yoon Suk Yeol. The comments by People Power Party leader Han Dong-hun on Friday suggest that his party would change its earlier opposition to the impeachment of President Yoon over his imposition of martial law this week. The main opposition Democratic Party and other small opposition parties submitted a joint motion to impeach President Yoon on Wednesday over his martial law declaration the previous night. Martial law lasted about six hours, as the National Assembly quickly voted to overrule the president, forcing his cabinet to lift it before daybreak on Wednesday. BROKER RATING CHANGES JPMorgan raises Halma to 'neutral' (underweight) - price target 2,600 (2,350) pence ---------- Berenberg cuts Energean to 'hold' (buy) - price target 1,045 (1,175) pence ---------- JPMorgan cuts Bank of Ireland price target to 8.20 (8.90) EUR - 'underweight' ---------- COMPANIES - FTSE 100 FTSE 250-listed Direct Line Insurance has agreed to a takeover bid from Aviva in cash and shares. The proposal is worth 275 pence per Direct Line share, consisting of 129.7p cash and 0.2867 of an Aviva share. Direct Line shareholders will also get dividend payments worth up to 5p per share. The offer is a 73% premium to Direct Line's share price on November 27, and 16% above its closing price of 237.80p on Thursday which gave the insurer a market capitalisation of GBP3.12 billion. At this stage the takeover bid is a proposal, with December 25 set as the put-up-or-shut-up deadline for Aviva to make a firm offer. OTHER COMPANIES Wheaton Precious Metals has agreed to acquire a gold stream from Allied Gold Corp, "to advance the construction" of Allied's Kurmuk project in Ethiopia. "This fully permitted, high-quality development project offers significant exploration potential, supported by a team at Allied with a proven operating track record," comments Wheaton CEO Randy Smallwood. "We are excited to partner with Allied to unlock opportunities that empower the local communities and help drive the growth of Ethiopia's emerging metals and mining sector." Wheaton will pay USD175 million cash upfront in four equal instalments during construction and will buy 6.7% of the payable gold until 220,000 ounces has been delivered. Subsequently, it will buy 4.8% for the mine's lifetime. It expects the gold stream to produce on average 16,000 ounces of gold per year for the first decade, with the first production expected in mid-2026. |
Posted at 05/12/2024 10:21 by master rsi MARKET REPORTLONDON MARKET OPEN: FTSE 100 in minor gain as Paris shakes off turmoil (Alliance News) - London's FTSE 100 opened slightly in the green Thursday, while the CAC 40 in Paris shook off tentative early price action to push higher, despite political turmoil in France. The FTSE 100 index added 5.59 points, 0.1%, at 8,341.40. The FTSE 250 rose 18.18 points, 0.1%, at 21,023.33, and the AIM All-Share fell just 0.32 of a point at 737.90. The Cboe UK 100 added 0.1% at 837.71, the Cboe UK 250 was up 0.2% at 18,541.46, and the Cboe Small Companies rose 0.1% to 16,025.48. The CAC 40 in Paris added 0.6% in early dealings, though it was initially lower in the opening minutes after the bell. The DAX 40 in Frankfurt rose 0.3%. The pound was quoted at USD1.2730 early Thursday, up from USD1.2717 at the time of the London equities close on Wednesday. The euro was flat at USD1.0536. Against the yen, the dollar was trading at JPY150.07, flat from JPY150.06. French President Emmanuel Macron on Thursday will seek ways out of France's political crisis, after Michel Barnier became the first prime minister to be ousted by parliament in over six decades. Lawmakers voted on Wednesday to oust Barnier's government after just three months in office, approving a no-confidence motion proposed by the hard left but which crucially was backed by the far right headed by Marine Le Pen. Barnier's record-quick ejection comes after snap parliamentary elections this summer, which resulted in a hung parliament with no party having an overall majority and the far right holding the key to the government's survival. Macron now has the unenviable task of picking a viable successor with over two years of his presidential term left, with some – though not all – opponents calling on him to resign. "Politics provides the drama for now, but even here the collapse of the French government late yesterday had already been anticipated with EURUSD more sensitive to a surprisingly weak US services ISM report than it was to a vote of no confidence in Barnier’s administration," analysts at Lloyds Bank commented. The ISM data followed a softer-than-expected ADP jobs report. Private sector employment rose by 146,000 jobs in November, ADP said, easing from 184,000 in October. October's reading was downwardly revised from 233,000. The latest reading fell short of the FXStreet cited consensus of 150,000. Lloyds analysts added: "The election has been another contributing factor to uncertainty. That should have more of a bearing on smaller firms, and hiring has been weak in that area too. Based in the improvement in expectations (confidence and hiring) contained within the latest Fed business surveys (and PMIs) one would expect to see some pick-up ahead though. Looking at the rolling averages adds to confidence that things have stabilised at more normal levels, with the 12-month average flat since early summer. Given how Trump’s return has boosted overall sentiment that could prove the floor." In Asia, stocks were mixed. The Shanghai Composite was down 0.1% in China. The Hang Seng Index in Hong Kong weakened 1.2%. Over in Tokyo, the Nikkei 225 added 0.2%, as did the S&P/ASX 200 in Sydney. US stocks achieved record highs again. The Dow Jones Industrial Average added 0.7% on Wednesday. The S&P 500 added 0.6% and the Nasdaq Composite jumped 1.3%. In London, Frasers tumbled 13% as it cautioned on profit amid weaker consumer confidence pre- and post-UK budget. The Sports Direct owner now predicts full-year adjusted pretax profit in the range of GBP550 million and GBP600 million. It had previously expected an outcome between GBP575 million and GBP625 million. Among the FTSE 250s, Future, the online magazine publisher and owner of price comparison website Go Compare, jumped 13%. It reported weaker annual earnings, but hailed a return to revenue growth in the second half. In the year to September 30, revenue was largely flat at GBP788.2 million from GBP788.9 million. Pretax profit weakened 25% to GBP103.2 million from GBP138.1 million. "Our return to revenue growth in H2, driven by the execution of [growth acceleration strategy], puts the group in a good position to achieve current market expectations for FY 2025," the firm added. It maintained its final dividend at 3.4 pence per share. A GBP55 million new share buyback kicks off next month. Brand Architekts jumped 90% as it agreed to be taken over by fellow London listing Warpaint in a GBP13.9 million deal. The colour cosmetics supplier, that owns W7 and Technic brands, will pay 48 pence in cash per Brand Architekts share. It is double the beauty sector challenger brand's Wednesday closing price of 24p. It values its entire issued, and to be issued, ordinary share capital at around GBP13.9 million. "The Warpaint board considers that Brand Architekts provides a similar opportunity as its previous acquisitions, and that the acquisition will enhance Brand Architekts' proposition and profitability as part of a larger, successful health, beauty and personal care business," a statement said. Warpaint's bid has the backing of Peter Gyllenhammar, who owns around a quarter of Brand Architekts. Brand Architekts Chair Roger McDowell said: "The Brand Architekts board has worked hard to deliver on the Brand Architekts Group's strategic priorities against a challenging environment and continues to have confidence in its brands and longer-term prospects. However, the Brand Architekts board recognises the certainty of value of the cash offer at a 100% premium to the current share price, against the backdrop of an uncertain macro-economic environment." Warpaint, meanwhile, proposed a placing to raise GBP14 million, with a retail offer to net another GBP1 million. The placing is for 2.7 million new shares at a price of 510p each. The retail offer will be for 196,078 new shares at the same price. "Warpaint proposes to use the net proceeds of the placing to repay the bridging loans which have been used to fund the maximum cash consideration payable by the company pursuant to the acquisition," it said. Warpaint expects annual results in line with expectations. It has seen "continued strong momentum" since mid-September. Warpaint shares rose 2.6%. Brent oil was quoted at USD72.46 a barrel early Thursday, down markedly from USD73.20 at the time of the London equities close on Wednesday. Gold fell to USD2,646.12 an ounce from USD2,653.48. |
Posted at 04/12/2024 22:23 by master rsi MARKET REPORTLONDON MARKET CLOSE: Blue-chips in the red despite European, US gains (Alliance News) - Stocks in London ended mixed on Wednesday, with the FTSE 100 held back by falls in AstraZeneca plus uninspiring data, while mid-caps prospered amid rate cut hopes. The FTSE 100 index fell 23.60 points, 0.3%, at 8,335.81. The FTSE 250 ended up 112.41 points, 0.5%, at 21,005.15, and the AIM All-Share rose 3.13 points, 0.4%, at 738.22. The Cboe UK 100 ended down 0.4% at 836.98, the Cboe UK 250 advanced 0.6% at 18,499.13, and the Cboe Small Companies gained 0.3% to 16,014.54. In Europe, the CAC 40 in Paris ended up 0.7%, while the DAX 40 in Frankfurt advanced 1.1%, hitting new highs once more. Markets prospered despite the uncertainty hanging over the French government. France's government faces a no-confidence vote that could spell the end of Prime Minister Michel Barnier's administration, plunging the country into uncharted waters. The toppling of the Barnier government after just three months in office would present President Emmanuel Macron with the unenviable choice of picking a viable successor with over two years of his presidential term left. The National Assembly lower house is debating two motions brought by the hard left and the far right in a standoff over next year's austerity budget, after the prime minister on Monday forced through a social security financing bill without a vote. During the debate leader of the far right Marine Le Pen said: "To those who think I’m intent on choosing a policy of disaster through a vote of no confidence, I want to tell them that the disastrous policy would be not to censure such a budget, such a government". In New York, markets pushed ahead. The Dow Jones Industrial Average was up 0.5% at the time of London's close, the S&P was 0.4% higher, while the Nasdaq 0.9% to the good Investors were digesting a raft of data ahead of Friday's nonfarm payrolls report. Figures from ADP showed the US private sector economy added fewer jobs than expected. Private sector employment rose by 146,000 jobs in November, ADP said, easing from 184,000 in October. October's reading was downwardly revised from 233,000. The latest reading fell short of the FXStreet cited consensus of 150,000. Meanwhile, two reports showed the US service sector expanded at a slower pace in November, missing market expectations. Nonetheless, the service sector strength helped offset a further decline in manufacturing driving an increase in overall US private sector activity. The S&P Global US Composite PMI Output Index rose to a 31-month high of 54.9 in November from 54.1 in October. The latest reading signalled a marked monthly increase in output. The overall expansion continued to be driven by services, while manufacturing output decreased again. The figure was however, below FXStreet consensus of 55.3. The seasonally adjusted S&P Global US Services PMI Business Activity Index rose to 56.1 in November, up from 55.0 and above the 50.0 neutral mark for the twenty-second consecutive month. FXStreet consensus had forecast an improvement to 57.0. A separate report from the Institute for Supply Management showed economic activity in the services sector expanded for the fifth consecutive month in November, but at a much slower rate than October. The services PMI registered 52.1 in November, down from 56.0 in October, and below FXStreet consensus of 55.5. The pound was quoted at USD1.2717 late on Wednesday afternoon in London, up from USD1.2660 at the time of the European equities close on Tuesday. The euro stood at USD1.0536, up from USD1.0513. Against the yen, the dollar was trading at JPY150.06, rising from JPY149.44. Back in London and the Bank of England Governor Andrew Bailey told the Financial Times he expects four interest rate cuts next year if its outlook for the UK economy bears out. Speaking to the FT’s Global Boardroom conference, the BoE governor said consumer price inflation had fallen more rapidly than policymakers expected a year ago. When asked about investor expectations, built into its November economic forecast, of four quarter-point cuts in the next year, Bailey said: "We always condition what we publish in terms of the projection on market rates, and so as you rightly say, that was effectively the view the market had." Asked if, under the BoE’s central forecast for 2025, the MPC would carry out about four interest rate cuts, Bailey said "Yup." Bailey's comments lifted rate sensitive housebuilders. Vistry rose 4.4%, Persimmon climbed 2.5% and Barratt Redrow firmed 1.7%. Data showed the UK service sector saw growth ease to the most tepid pace for around a year, amid worries about tax hikes delivered in the October budget. The S&P Global services purchasing managers' index fell to 50.8 points in November, from 52.0 in October. Moving closer to the 50 point no change mark, the data suggests growth eased. It was still loftier than the flash estimate, which put the PMI at the 50 point neutral threshold. November's PMI reading was the weakest in 13 months. On the FTSE 100, Legal & General shares rose 5.7%, as it set out a decent outlook for a unit and suggested returns could be on the way for shareholders. The life insurer expects mid-single digit growth in operating profit for 2024, in line with guidance. Thereafter, it expects to achieve its 6% to 9% compound annual growth target in core operating earnings per share between 2024 and 2027. The update came ahead of a "deep dive" into its Institutional Retirement division, the first in a series of events which will cover all its units. "The global pension risk transfer market is growing and attractive and the group is well-positioned to continue to seize the opportunity," L&G said. British Airways owner, IAG, was also in demand, climbing 4.3%. JPMorgan named IAG among its picks in the travel sector for 2025, saying the shares are undervalued and offer the potential for more buybacks. The broker added IAG to its 'analyst focus list' and placed it on 'positive catalyst watch' while retaining an 'overweight' rating. Bank of America joined in the chorus of approval. "IAG is one of our '25 stocks for 2025' and we add it to our Europe 1 list of top ideas. IAG shares are up 68% [year-to-date] driven by consecutive earnings beats supporting the introduction of dividends and share buybacks. Nevertheless, we believe IAG's strong brand portfolio and geographical positioning, combined with its cost control history, remain underappreciated." BofA increased its share price target to 370 pence each from 300p and reiterated a 'buy' rating. On Tuesday, Morgan Stanley made IAG a pick for next year. But AstraZeneca fell 3.2% holding back the blue-chip index. Elsewhere in London, Learning Technologies added 6.7% as it backed a GBP802 million takeover from a private equity firm. The London-based digital learning and talent management firm will be bought out by GASC ABF LP and some of its managed or advised funds, a grouping collectively referred to as General Atlantic. General Atlantic will pay 100 pence in cash per Learning Technologies share, a 34% premium to the 74.9p share price on September 26, the day before the private equity suitor's interest was revealed. The bid gives Learning Technologies a GBP802.4 million equity value. Brent oil was quoted at USD73.20 a barrel late Wednesday afternoon, down from USD73.67 at the time of the London equities close on Tuesday. Gold rose to USD2,653.48 an ounce compared with USD2,644.88 on Tuesday. Thursday's global economic diary sees a slew of construction PMI figures and US weekly jobless claims data. Thursday's local corporate calendar sees half-year results from packaging group DS Smith and Sports Direct owner Frasers.. |
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