FTSE 100 Rises as Market Awaits Fed Decision
0813 GMT - The FTSE 100 rises 0.2% to 7189.66 ahead of a U.S.
Federal Reserve decision due after European markets close, with
investors cautiously anticipating that policymakers will view
rising inflation as temporary and continue hefty stimulus.
Investors shrug off earlier data showing annual U.K. inflation rose
more than expected to 2.1% in May, from 1.5% in April, which may
concern rate-setters at the Bank of England. "It was a surprisingly
calm open on Wednesday, suggesting the markets have set aside
certain anxieties for the moment," says Connor Campbell, analyst at
Spreadex. Retailers, leisure and tourism stocks and property firms
are broadly higher, although heavyweight mining stocks fall.
(jessica.fleetham@wsj.com)
Companies News:
Best of the Best Declares Special Dividend for Buoyant FY
2021
Best of the Best PLC reported Wednesday a sharp rise in pretax
profit and revenue for fiscal 2021 and said it is declaring a
special dividend for the year.
---
Tullow Oil Says Production to May Was in Line
Tullow Oil PLC said Wednesday that its production to the end of
May was in line with expectations.
---
Hipgnosis Songs Fund to Raise GBP150 Mln
Hipgnosis Songs Fund Ltd. said Wednesday that it intends to
raise 150 million pounds ($211.3 million) by way of a share placing
to fund the acquisition of a pipeline of songs.
---
Electra Private Equity to Launch Hostmore PLC as Demerged Parent
of TGI Fridays
Electra Private Equity PLC said on Wednesday that Hostmore PLC
is to be the new parent company for its hospitality brands:
American-themed restaurant chain TGI Fridays, and 63rd+1st, a
cocktail-led bar and restaurant brand start-up.
---
Helios Towers to Raise $160 Mln Through Equity Issue,
Convertible Bonds
Helios Towers PLC said Wednesday that it will raise around $160
million, more than initially indicated, through an equity issue and
convertible bond offering to fund acquisitions.
---
FireAngel Safety Technology Sees 1H Performance in Line With
Views
FireAngel Safety Technology Group PLC said Wednesday that it
anticipates its performance for the first half to be in line with
the board's expectations but challenges stemming from the pandemic
are expected to continue through the current year.
---
N. Brown Lawsuit Claimant Allianz Insurance Applies to Increase
Scope of Claim
N. Brown Group PLC said Wednesday that Allianz Insurance PLC has
applied to increase the scope of a claim against its subsidiary,
estimated at an additional 36 million pounds ($50.7 million.)
---
Christie Group Trading in Line with Expectations with Demand
Across All Services
Christie Group PLC said Wednesday that the business has
performed well in the year to date and is trading in line with
market expectations, with all of its services and sectors in
demand.
---
Dillistone Group Expects Narrowed Loss in 2021; Finance Director
to Retire
Dillistone Group PLC said Wednesday that it expects a
significantly reduced pretax loss in 2021 compared with 2020
although revenue will be lower, and that Finance Director Julie
Pomeroy will retire later this year.
---
Motorpoint Pledges to Double Revenue Above GBP2 Bln in
Medium-Term
Motorpoint Group PLC on Wednesday set targets to double its
revenue in the medium term, and reported that its profit nearly
halved in fiscal 2021.
---
Time Finance Sees Flat FY 2021 Adjusted Profit; Sets out
Strategic Goals
Time Finance PLC said Wednesday that it expects adjusted pretax
profit for fiscal 2021 to be flat on the previous year, and that it
is targeting to more than double its lending book organically by
2025 as part of a set of strategic objectives.
---
Elixirr International Sees 2021 Revenue at Top End of Range
After Strong Start
Elixirr International PLC said Wednesday that trading for the
first five months of the year has been strong and it now expects to
report revenue at the upper end of the previously indicated
range.
---
ScS Group Sees FY 2021 Results, FY 2022 Outlook Above Market
Views; Declares 3p Dividend
ScS Group PLC said Wednesday that it expects both its results
for fiscal 2021 and outlook for fiscal 2022 to beat market
forecasts on the back of strong business, and that it is resuming
dividend payments.
---
Mercantile Ports & Logistics Restructures Debt Facility
Mercantile Ports & Logistics Ltd. said Wednesday that it has
restructured its debt facility in terms which are favorable to the
company as it recognizes the acute disruption in India caused by
Covid-19.
---
Filta Group Says Demand Has Picked Up in All Operating
Territories
Filta Group Holdings PLC said Wednesday that demand for its
services has increased in all of its operating territories amid
Covid-19 vaccine rollouts.
---
Alpha Growth Clarifies Purchase of Northstar Shares
Alpha Growth PLC said Wednesday that it has acquired shares in
Northstar Group (Bermuda) Ltd, not Northstar Financial Services
Bermuda Limited, in response to shareholder queries.
---
EverArc to Buy Perimeter Solutions Parent in $2 Bln Reverse
Takeover
EverArc Holdings Ltd. said Wednesday that it has agreed to buy
SK Invictus Intermediate Sarl, parent company of firefighting
products and lubricant additives maker Perimeter Solutions, in a
reverse takeover valued at around $2 billion.
---
Origin Enterprises Sees FY 2021 Adjusted EPS on the Rise Despite
Lower 3Q Revenue
Origin Enterprises PLC said Wednesday that it expects adjusted
diluted earnings per share for fiscal 2021, following a decent
third quarter given the inclement weather.
---
Severfield FY 2021 Pretax Profit Fell
Severfield PLC said Wednesday that pretax profit fell for fiscal
2021 after booking higher costs, and that its high-quality order
book for the U.K. and Europe supports continued growth throughout
fiscal 2022 and beyond.
---
Castings FY 2021 Profit, Revenue Fell on Covid-19
Disruptions
Castings PLC said Wednesday that pretax profit and revenue fell
in fiscal 2021 as the coronavirus pandemic caused disruptions, but
that it is now back to full production.
---
Renold Shares Fall on FY 2021 Accounts Delay; Trading in Line
with Views
Shares of Renold PLC fell as much as 12% on Wednesday after the
company said that its fiscal 2021 earnings will be delayed while
its auditors complete the audit process.
---
Oilex Appoints Roland Wessel as CEO
Oilex Ltd. said Wednesday that Roland Wessel has been appointed
chief executive officer effective June 16, and that Managing
Director and Interim Chairman Joe Salomon will assume the position
of executive chairman for an interim period.
---
HSBC Reshuffles Top Team as Alternatives Push Takes Off --
Financial News
Of Financial News
Market Talk:
BOE to Keep Policy Loose Even as Inflation Rises Above
Target
0708 GMT - U.K. annual inflation jumped to 2.1% in May, data
showed, from 1.6% in April, taking it above the Bank of England's
2.0% target, but monetary policy is still likely to remain loose,
says Jonathan Letham, head of IMX at Nucleus Financial. "Central
bankers in the U.S., U.K. and Europe are indicating they will
maintain loose monetary policy (i.e. keeping interest rates low) to
support economic recovery," he says. The fear for investors is that
central banks' stimulus combined with economies reopening could
lead to prices spiralling higher and hurt real returns over the
longer-term. However, U.K bond markets indicate only modest
increases in inflation expectations of about 0.6% higher over 5
years and 0.5% higher over 10 years since the start of the year, he
says. (lorena.ruibal@wsj.com)
All Eyes on Blue Prism's Outlook in 1H Results
0718 GMT - Blue Prism Group flagged the main indicators of its
first-half performance in an update last month, so all eyes will be
on any incremental surprises in the outlook statement when it
releases its results on Thursday, Shore Capital says. The U.K.
maker of robotic-process-automation software was somewhat downbeat
in its update, as it indicated that fiscal 2021 revenue would
likely be toward the low end of its previous guidance range of
GBP170 million to GBP180 million, Shore says. "In our view, it
would be surprising if the company made a more downbeat assessment
of the outlook for FY21, precisely one month on from the trading
update. But equally, it is unlikely to be more positive," Shore
says. (adria.calatayud@dowjones.com)
UK July 2035 Gilt Has Appeal Ahead of Auction
0737 GMT - The U.K. Debt Management Office's planned sale
Wednesday of GBP2.5 billion in 0.625% July 2035 gilt should go well
as the bond looks attractive in value terms, says RBC Capital
Markets. "We think this bond looks quite attractive on the curve
and micro-relative value at these levels which should see it taken
down smoothly," analysts at the bank say. This is likely being the
last tap of the bond in its regular supply cycle which should
further support the event, along with bond purchases by the central
bank taking place in the afternoon, , they say.
(lorena.ruibal@wsj.com)
BOE Is Likely to Look Past UK's Inflation Rise
0740 GMT - U.K. headline inflation climbed to 2.1% on year in
May and is likely to be around 2.5% by the end of the year, but the
figures probably aren't a concern for the Bank of England, ING's
developed markets economist James Smith says. The current inflation
rise is driven by base effects and temporary factors stemming from
the reopening of the economy, he says. "It's worth saying that core
inflation is unlikely to go as far as headline this year, while the
latter will also likely be back to [BOE's 2%] target by around this
time next year," Smith says. ING expects the BOE to hike rates in
early 2023, although a more rapid recovery could bring the move
forward to 2022. (xavier.fontdegloria@wsj.com)
Pound Rises After UK Inflation Data, Gains Limited Before
Fed
0741 GMT - The pound rises after data showed annual U.K.
inflation reached 2.1% in May, above a Wall Street Journal poll
forecast of 1.9% and exceeding the Bank of England's 2.0% target
for the first time in almost two years. Gains are limited, however,
ahead of a U.S. Federal Reserve decision later Wednesday, which has
the potential to boost the dollar and weigh on risk appetite,
sending the pound lower. The U.K. data "remains supportive for the
pound" but the dollar's reaction to the Fed "will of course be key
as will any deterioration in the EU-U.K. relationship in regard to
the Northern Ireland protocol," says Derek Halpenny, head of
research for global markets for EMEA at MUFG. GBP/USD rises 0.2% to
1.4115. EUR/GBP falls 0.2% to 0.8593.
(jessica.fleetham@wsj.com)
Motorpoint's Growth Targets Seen as Ambitious
0806 GMT - Vehicle retailer Motorpoint delivered "a bold
statement of intent" as it set a target to double sales to GBP2
billion by fiscal 2024, Liberum's Sanjay Vidyarthi says. This is to
be achieved with GBP1 billion of online sales, improved margins and
strong free cash flow generation. "Targets are ambitious, but the
track record is strong and we have confidence in the management
team to deal with the threat from online disruptors," Vidyarthi
says. The analyst now forecasts Motorpoint's EPS will grow at a 58%
compound annual rate in 2021-2024 and raises the target price on
the stock to 435 pence from 290 pence. (jaime.llinares@wsj.com)
ScS Group Rises on Outlook, Still Looks Undervalued, Shore
Says
0806 GMT - ScS Group's shares don't seem to reflect the strength
of the flooring-and-furniture retailer's business, according to
Shore Capital. ScS can leverage a strong balance sheet with no
non-lease debt and considerable balance, the investment group says.
Management has outlined a positive outlook for this year and next
year and the declaration of a dividend feeds hopes for more
payouts, Shore says. Shares are up 11% at 322 pence.
(matteo.castia@dowjones.com)
N. Brown's Lawsuit Scope Is Disappointing But Likely to Be
Smaller Than Expected
0806 GMT - It is disappointing that N. Brown is still dealing
with legacy issues, particularly of the magnitude it faces as
Allianz tries to increase the scope of its litigation claim, but
the final amount will likely be smaller than claimed, Jefferies
says. The U.K. clothing and footwear-retailer says Allianz has
applied to increased the scope of the claim as part of a further
customer redress exercise. "However, we think the eventual outcome
of the Allianz case will be considerably smaller than the headline
claims and see N. Brown as far better capitalized to deal with any
potential outflows," the U.S. bank says. Jefferies retains its buy
rating and 95.0 pence price target. Shares are down 5.2% at 60.0
pence. (joseph.hoppe@wsj.com)
Pets at Home Seen Set for Further Growth
0814 GMT - Pets at Home's impressive growth seems bound to
continue as the company can leverage both self-help and external
tailwinds, according to Berenberg. The pet-care company ended
fiscal 2021 with two-year like-for-like sales growth of circa 20%
and if that momentum continues it should generate 9% to 10%
like-for-like sales growth in fiscal 2022, Berenberg says.
Meanwhile, the company continues to benefit from the increasing pet
population in the U.K. and has plans to expand its store chain this
year, the German brokerage says. Berenberg has a buy rating on the
stock and a target price of 540.0 pence. Shares are up 0.4% at
458.4 pence. (matteo.castia@dowjones.com)
Contact: London NewsPlus, Dow Jones Newswires;
+44-20-7842-931
(END) Dow Jones Newswires
June 16, 2021 04:35 ET (08:35 GMT)
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