Sterling Seen Giving Up Recent Gains
Expectations of an aggressive U.K. interest-rate rise continue
to support sterling but this is likely to prove temporary, ING
says. "Looking beyond today's price action, we still think sterling
may have to give up some of its recent gains as our economist
expects the Bank of England to underdeliver on monetary
tightening," ING analysts say. Sterling also appears "somewhat
complacent" to the new post-Brexit frictions and the material risk
of the EU imposing retaliatory trade measures should the U.K.
unilaterally suspend parts of the Northern Ireland protocol, they
say. GBP/USD rises 0.4% to a three-week high of 1.3739 and EUR/GBP
falls 0.2% to 0.8461, according to FactSet.
Companies News:
Hostmore to Float in London on Nov. 2
Hostmore PLC said Friday that it expects its shares to be
admitted to trading on the London Stock Exchange on Nov. 2,
following its separation from Electra Private Equity PLC.
---
Morgan Advanced Materials Appoints Richard Armitage as Chief
Financial Officer
Morgan Advanced Materials PLC said Friday that it has appointed
Richard Armitage as the company's next chief financial officer,
effective May 30, 2022.
---
Newmark Security Managing Supply Disruption; to Reorganize
Capital
Newmark Security PLC said Friday that it is well-placed to
navigate supply-chain disruption and that it will conduct a
reorganization of its capital.
---
Shell Appoints Wael Sawan as Director of Gas and Renewables
Royal Dutch Shell PLC said Friday that it has appointed Wael
Sawan as director of the Integrated Gas and Renewable and Energy
Solutions division, replacing veteran Maarten Wetselaar who will
join Spain's Cepsa as chief executive.
---
Kitchenware Brand ProCook Considers London IPO
Project Berry Topco Ltd., or ProCook, said Friday that it is
looking at listing the company in London.
---
ITM Power Conditionally Raises Around GBP250 Mln via Discounted
Placing, Shares Fall
Shares in ITM Power PLC fell Friday after the company said it
has conditionally raised around 250 million pounds ($341.85
million) via an oversubscribed discounted share placing.
---
Hochschild Triggers Option to Earn Stake in Canadian Gold
Project
Hochschild Mining PLC said Friday that it has exercised its
option to earn a 60% stake in the Snip gold project in British
Columbia, Canada.
---
Light Science Technologies Shares Rise on Stock Market Debut
Shares of Light Science Technologies Holdings PLC rose as much
as 19% early Friday as the company began trading on the London
Stock Exchange's junior AIM, implying a market capitalization of
20.8 million pounds ($28.4 million).
---
Jupiter Fund's Assets Under Management Rose by GBP414 Mln in
3Q
Jupiter Fund Management PLC said Friday that its assets under
management increased by 414 million pounds ($566.1 million) in the
third quarter.
Market Talk:
Antofagasta to Benefit From Tightening Copper Market But
Challenges Remain
0904 GMT - As copper inventories remain low and risks around
smelter curtailments grow, the copper market is moving towards a
potentially acute near-term state, RBC's Tyler Broda says. In
London, Antofagasta is the go-to copper name and its shares are
significantly correlated with the red metal price. In order to
reflect copper price optionality, RBC raises the Chilean miner to
sector perform from underperform, with the target price increasing
to 1,350 pence from 1,150 pence. However, several issues remain for
Antofagasta, including drought conditions in Chile which could
affect 2022 production, the upcoming presidential elections, and
inflation. Shares have risen 9% in the last seven days.
---
Pearson's Slip in Higher Education Sales Spooks Investors
0854 GMT - Pearson's nine-month update showed higher education
sales have slipped 7% in 2021 to date, worrying investors despite
it maintaining full-year guidance, Interactive Investor says. The
education company has seen higher education numbers slip with
coronavirus infections in American colleges potentially deterring
new enrolments and signs of strength in the U.S. jobs market
offering an alternative, the investment platform says. Even after a
significant decline in the share price since the summer peak,
Pearson's price-to-earnings ratio still trades above three- and
ten-year averages, suggesting shares are far from cheap,
Interactive Investor says. "For now, and given the company's
ongoing transition, analyst consensus opinion currently points to a
hold," Interactive Investor says. Shares are down 10% at 654.0
pence.
---
Hochschild's Canadian Gold Project to Provide Growth,
Diversification
0848 GMT - The Snip gold project in Canada could become a source
of medium-term growth for Hochschild Mining, while diversifying its
geographic exposure from Peru and Argentina, RBC Capital Markets
says. The FTSE 250 company has exercised its option to earn a 60%
interest in the project over three years, which is seen by RBC as a
welcome development. With the political situation in Peru
moderating, resource additions at existing assets and the
acquisition of Snip, RBC continues to see potential for a re-rating
of Hochschild shares. "This is further augmented by the as yet (in
our view) uncaptured potential from its rare earth project Aclara
within market valuations," the bank says.
---
Aviation, Travel Stocks Rise on Lateral Flow Test News
0800 GMT - Shares in U.K.-listed aviation and travel groups rose
on Friday on news that the U.K. government would allow fully
vaccinated international passengers arriving in England from
countries not on the government's red list to use lateral flow
tests--which are cheaper than PCR tests--from Oct. 24. Shares in
IAG--which houses carriers British Airways and Iberia among
others--were up 2.1% at 180.84 pence. Low cost carrier easyJet was
up 2.35% at 645.40 pence, with Ryanair was up 1.4% at EUR17.18.
German travel group TUI was up 0.6%, at 267.70 pence with
eastern-Europe-focused Wizz Air up 1.8% at 4,664 pence.
Leisure-travel group Jet2 was also up: 26.50 pence, or 2.1%, at
1,301.50 pence.
---
Shortages Are Limiting Economic Growth in Advanced Economies
0757 GMT - While the global economy has continued to grow at a
fairly healthy pace, businesses are reporting that shortages are
limiting growth, particularly in advanced economies, Capital
Economics says. Suppliers' delivery times have continued to
lengthen, backlogs of work are mounting and congestion at ports has
increased, CE says. Most of the shortages should begin to ease in
the year ahead, but shortages of labor could be relatively
persistent, the economic-research firm warns. Staffing issues seem
most pronounced in the U.S. and U.K., implying that the risk of
sustained above-target inflation is also greatest in those
economies, CE says.
---
Pearson's Nine-Month Update Seen as Solid but Unremarkable
0724 GMT - Pearson's nine-month performance update was in line
with expectations, reiterating guidance--though it does leave a
slight sense of what might have been, Citi says. The FTSE 100
education company's performance was solid enough, but had community
college enrolments in the U.S. been a little more robust, the
conversation around the company would surely have been about
consensus upgrades, the U.S. bank says. "We expect limited change
to consensus forecasts at this stage with downward pressure on
[U.S. Higher Education Courseware] offset by upward pressure to
Assessments," the bank says. Citi retains its buy rating and target
price of 930.0 pence. Shares are down 2.5% at 711.0 pence.
---
BP's Investment Into New Businesses to Benefit From Rising
Commodity Prices
0549 GMT - BP's stock has lagged behind peers this year but the
energy company is well placed to benefit from higher commodity
prices, Berenberg says. The company should generate strong free
cashflow in the coming quarters and this will enable attractive
shareholder returns as well as a rise in investments into
lower-carbon businesses, the German brokerage says. "The key for
the longer-term performance of the stock will be whether the new
businesses [mainly Renewables and Customers & Products] can
replace declining earnings in upstream oil and refining," the
broker says. Berenberg upgrades its rating on the stock to buy from
hold, and raises its price target to 425 pence from 310 pence.
Contact: London NewsPlus, Dow Jones Newswires; Write to Sarka
Halas at sarka.halas@wsj.com
(END) Dow Jones Newswires
October 15, 2021 05:41 ET (09:41 GMT)
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