FTSE 100 Rises as HSBC, Pearson Rally After Results

0739 GMT - The FTSE 100 gains 0.4% to 7451 points with HSBC and Pearson the biggest risers after posting well-received interim results. HSBC shares advance 6.4% after the bank said it plans to revert to paying quarterly dividends from the start of 2023 as it reported first-half pre-tax profits that beat expectations and raised its near-term return on tangible equity goal--a key profitability target. Sector peers including Barclays, Standard Chartered and NatWest also rally. Banks are also boosted by expectations the Bank of England will raise interest rates more aggressively at Thursday's meeting. Pearson jumps 6.9% after the education group maintained its full-year profit outlook after delivering stronger first-half profits.(renae.dyer@wsj.com)

 
Companies News: 

Tintra FY 2022 Pretax Loss Narrowed on Lower Costs

Tintra PLC said Monday that pretax loss for fiscal 2022 narrowed, led by higher costs savings.

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Tirupati Graphite Appoints New CFO

Tirupati Graphite PLC said Monday that it has promoted Financial Controller Ameya Gogate to chief financial officer, following the decision of former CFO Kien Huynh to step down in order to pursue other opportunities.

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National World Shares Rise After Swing to 1H Pretax Profit

Shares in National World PLC rose 9.2% on Monday after the company said that it swung to pretax profit for the first half of 2022 after booking cost savings and digital revenue growth.

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Arecor Therapeutics to Raise GBP6 Mln Via Discounted Placing to Buy Tetris Pharma

Arecor Therapeutics PLC said Monday that it is proposing a discounted share placing of around 6 million pounds ($7.3 million) to fund the acquisition of the entire issued share capital of Tetris Pharma Ltd.

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ReNeuron Group Names CFO Catherine Isted as CEO

ReNeuron Group PLC said Monday that it has appointed Chief Financial Officer Catherine Isted as chief executive officer, effective from Sept. 1.

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Arbuthnot Banking Appoints Nigel Boardman as Chairman of Arbuthnot Latham

Arbuthnot Banking Group PLC said Monday that it has appointed Nigel Boardman as chairman of its main business Arbuthnot Latham & Co. Ltd.

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Symphony Environmental Technologies 1H Revenue Fell on Logistic Restrains

Symphony Environmental Technologies PLC said Monday that revenue for the fist half of the year fell amid logistic and resource issues, but it remains confident in achieving 2022 market expectations on recent contract wins.

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Trellus Health Appoints Stephen Young as New Interim CFO

Trellus Health PLC said Monday that it has appointed Stephen Young as interim chief financial officer with immediate effect, replacing interim CFO Richard Evans.

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Speedy Hire Appoints Dan Evans as CEO

Speedy Hire PLC said Monday that it has appointed Dan Evans as chief executive, effective Oct. 1.

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Symphony Environmental Technologies Raises GBP1 Mln Via Share Subscription

Symphony Environmental Technologies PLC said Monday that it has raised one million pounds ($1.2 million) via a share subscription by Sea Pearl Ventures Ltd., and that the money raised will be used for continuing capital purposes and future commercial opportunities.

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Nostra Terra Shares Rise as Fouke 2 Oil Well in Texas Beats Expectations

Shares in Nostra Terra Oil & Gas Co. rose Monday in early trading after it said that its Fouke 2 oil well in Texas has reached payback earlier than expected.

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Ascential 1H Pretax Loss Widened on Higher Costs; Revenue Rose

Ascential PLC said Monday that its first-half pretax loss widened on greater costs, though revenue and adjusted Ebitda rose.

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Senior 1H Adjusted Pretax Profit, Revenue Rose; Reported Pretax Profit Fell

Senior PLC said Monday that its first-half revenue and adjusted pretax profit both significantly rose, though reported pretax profit halved.

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EKF Diagnostics 1H Revenue, Adjusted Ebitda Fell Slightly

EKF Diagnostics Holdings PLC said Monday that revenue and adjusted Ebitda for the first half of 2022 fell slightly, despite a strong first-quarter performance continuing into the second quarter.

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Flowtech Fluidpower 1H Like-for-Like Revenue Rose

Flowtech Fluidpower PLC said Monday that its performance for the first half of 2022 was strong, with revenue rising on a like-for-like basis.

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Ingenta Forecasts 1H Revenue, Earnings Rise After Prior Cost Actions

Ingenta PLC said Monday that it expects to report a rise in revenue and adjusted earnings before interest, taxes, depreciation and amortization for the first half after previous management actions to reduce the cost base.

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Journeo 1H Revenue Rose; Secured Airport Contract

Journeo PLC said Monday that revenue increased for the first half, and that it has secured a technology-services contract at London's Heathrow Airport.

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Fulcrum Utility Services FY 2022 Loss Widened Despite Underlying Growth

Fulcrum Utility Services Ltd. on Monday reported a widened loss for fiscal 2022, as one-off charges more than offset improved underlying earnings.

 
Market Talk: 

Pearson's Online Shift Helps to Provide Profit Boost

0911 GMT - Pearson gains 6% after the education publisher said strategic and operational progress drove first-half pretax profit and revenue higher. "Pearson was among the winners Monday as it stuck with full-year guidance and reported a significant profit increase following stronger sales," AJ Bell investment director Russ Mould writes in a release. "The increasingly digital-focused company is less exposed to some of the cost pressures facing other types of businesses and this is helping it," he said. "For a long time, structural market changes causing demand for high-margin sales of expensive physical, academic textbooks to disappear negatively impacted Pearson. Now the business seems to have got its act together to face a world where an increasing amount of learning is done online." (philip.waller@wsj.com)

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HSBC Gains After Flagging Quarterly Dividend Plan

0902 GMT - Shares in HSBC Holdings are among the top FTSE 100 risers, up 6% after the bank reported higher second-quarter net profit and said it plans to resume paying quarterly dividends in 2023. "We expect investors to welcome the bank's decision to return to quarterly dividends next year and to return to pre-covid levels of payouts as soon as possible," Mark Crouch, analyst at financial-services firm eToro, writes. "It's that sort of announcement that can provide a big boost to a firm's share price." (philip.waller@wsj.com)

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Sterling Seen as Indifferent to UK Leadership Race

0855 GMT - Sterling is seemingly indifferent to the rising prospect of Liz Truss becoming the next U.K. prime minister, RBC Capital Markets say. Truss' plans for GBP30-40 billion of fiscal easing would likely require tighter monetary policy, which would lift sterling, RBC currency strategist Adam Cole says in a note. "There is little evidence, however, that the growing certainty of Truss as PM has been accompanied by independent GBP strength." Markets probably attach a low probability to full delivery of the promises the candidates of the leadership race have made, Cole says. Significant fiscal easing could also widen the U.K.'s budget and current account deficits, raising the risk that sterling needs to fall to secure overseas financing, he says. (renae.dyer@wsj.com)

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Spectris Set for 2H Sector Outperformance

0848 GMT - Spectris's market-share gains were a key driver of organic revenue growth in the first half and the usual materially higher margins are still expected for the second half despite continuing cost inflation, Shore Capital's Tom Fraine and Akhil Patel say in a research note. The positive outlook for many of the precision-measurement specialist's end markets should help it outperform those in the wider sector that are more exposed to a consumer-spending downturn, they say. "The company has a range of growth opportunities in highly attractive markets such as pharma, electronics & semiconductors and machine manufacturing," the analysts say. Shore Capital has a buy rating on the stock. (kyle.morris@dowjones.com)

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Pound Could Fall Vs Swiss Franc Even if BOE Lifts Rates More Decisively

0844 GMT - Sterling could weaken against the Swiss franc even though the Bank of England is expected to raise interest rates more decisively on Thursday, RBC Capital Markets says. "Markets are skewed toward a 50bp hike (47bp priced) and although this is the most likely outcome, risk-reward favors positioning for a majority vote for 25bp," RBC currency strategist Adam Cole says in a note. Even if the BOE lifts rates 50bp, the meeting minutes may not support expectations for 100bp of further rate rises by early 2023, he says. Meanwhile, July Swiss inflation data on Wednesday could be higher-than-expected, supporting the franc, he says. RBC advises selling GBP/CHF, targeting 1.1350 and placing a stop loss at 1.1700. GBP/CHF last trades at 1.1604. (renae.dyer@wsj.com)

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Bank of England Expected to Hike Interest Rates at Faster Pace

0829 GMT - The Bank of England is expected to increase interest rates by 50 basis points on Thursday, stepping up its monetary policy tightening cycle as inflation remains at elevated levels, Berenberg senior economist Kallum Pickering says in a note. The BOE looks ready to accept output and employment losses in order to achieve its primary target of price stability, he says. "While such an approach will help to strengthen the BOE's inflation-fighting credibility, a faster pace of tightening will amplify downside risks to the near-term outlook for real GDP," Pickering says. The BOE is also expected to downgrade its economic growth projection for 2022 and 2023, he says. (xavier.fontdegloria@wsj.com)

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HSBC Breakup Proposal Adds Uncertainty to Positive 2Q Earnings

0823 GMT - HSBC Holdings had a strong second quarter, which should imply a material upgrade to consensus forecasts for this year and beyond, Shore Capital analyst Gary Greenwood says. However, the FTSE 100 lender continues to face uncertainty as Ping An, its largest shareholder, continues to propose a break up of the group amid increased geopolitical risk, he adds. Still, HSBC could see shares rise to 700 pence assuming a sustainable return on tangible equity of 12%, Greenwood adds. Shore has a hold recommendation on the stock and a target price of 514 pence. (sabela.ojea@wsj.com; @sabelaojeaguix)

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Sterling Gains Ahead of Expected Rate Rise

0735 GMT - Sterling rises as investors bet on the Bank of England raising interest rates more aggressively at its next meeting later in the week. "The BOE's decision on Thursday will be a big event with our U.K. economists and consensus expecting a 50 basis points [interest rate rise], which will take the Bank Rate to 1.75% and become the largest single increase since 1995," Deutsche Bank analysts say in a note. That will likely be accompanied by economic forecasts that support the case for further rate rises, they say. GBP/USD rises 0.1% to 1.2191 and EUR/GBP falls 0.1% to 0.8393. (renae.dyer@wsj.com)

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Liz Truss Seen as Next UK PM, Fiscal Boost Expected

0659 GMT - After she attracted a string of high-profile endorsements, Citi expects Liz Truss to be the U.K.'s next Prime Minister. This would mean a net fiscal boost of GBP40 billion over the coming 12 months, Citi's Benjamin Navarro says in a note. Citi expects the boost to add 0.8% to the level of GDP by the end of 2023, and 0.4 percentage points to core inflation by 2024. Inflationary risks are to the upside, with the U.K. potentially combining very high inflation and supply challenges with further demand support, Navarro says. According to Citi, Truss's fiscal package would lead to least a further 50 basis points in policy tightening over the coming six months. (maria.martinez@wsj.com)

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Pearson's Robust 1H Show How Diverse Portfolio Is Dispersing Concerns

0656 GMT - Pearson delivered a robust first-half beat and show how concerns on Higher Education and Online Program Management units are being offset by strength elsewhere in the portfolio, Citi analysts say in a research note. The FTSE 100 education company also said at least GBP100 million of further cost efficiencies that will be delivered in 2023 and this should dispel any lingering concerns about the outlook, they note. "Nevertheless we see Pearson's 1H results derisking both short- and medium-term forecasts and, we think, will be taken well especially given concerns about pressure on Higher Ed enrolment running into results," they say. Citi has a buy rating on the stock with a target price of 1,000 pence. (kyle.morris@dowjones.com)

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HSBC's 2Q to Prompt Consensus Upgrade

0602 GMT - HSBC's earnings for the second quarter of 2022 were better than expected and should imply an at least 10% upside to 2023's pretax profit consensus, Jefferies says. With a solid set of results, the FTSE 100 listed lender's guidance on net interest income and costs are the price-sensitive in the lender's release, the U.S. bank adds. Jefferies has a hold recommendation on the stock and a target price of 574.00 pence. (sabela.ojea@wsj.com; @sabelaojeaguix)

 

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(END) Dow Jones Newswires

August 01, 2022 05:49 ET (09:49 GMT)

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