Markets News:
Oil Stocks Gain as Tighter Supply Boosts Brent
Energy stocks gain as the price of Brent crude hits its highest
since late 2018. "While global travel remains depressed, the
transition towards renewables could see majors limit their
production ahead of any tangible decline in demand for crude," says
IG's Joshua Mahony. "A 2.6 million-barrel decline in Cushing stocks
highlight the tightening supply/demand dynamic, with inventories
already at the lowest level in 15 months." BP, Royal Dutch Shell
and TotalEnergies are all higher despite Brent ceding some of its
gains, down 0.5% at $74.54 a barrel.
Companies News:
Software Company itim Group Targets GBP48.1 Mln Valuation in AIM
Float
Software company itim Group PLC, which provides technology to
store-based retailers, on Tuesday said it will be valued at 48.1
million pounds ($67 million) on admission to trading on London's
junior AIM market, based on the price of its initial public
offering.
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Equiniti Appoints Andrew Peeler as Incoming CFO
Equiniti Group PLC said Tuesday that it has appointed Andrew
Peeler as chief financial officer with effect from August 1,
succeeding John Stier.
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Trackwise Designs Shares Fall After Warning on Revenue
Delays
Shares in Trackwise Designs PLC fell Tuesday after the company
warned that some revenue originally expected for this year will be
delayed into 2022, but said that it swung to a pretax profit for
2020.
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Guaranty Trust Bank Requests Suspension of London-Listed
Securities
Trading in Guaranty Trust Bank PLC securities has been
temporarily suspended as of Tuesday by the U.K. Financial Conduct
Authority, at the request of the company.
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Victorian Plumbing Shares Rise on London Market Debut
Shares of Victorian Plumbing Group PLC rose as much as 17% on
Tuesday as the company started trading on London's junior AIM,
implying a market capitalization of 993.1 million pounds ($1.38
billion).
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Analytics Group Spectral MD Holdings Trades Higher in Market
Debut
Shares in analytics company Spectral MD Holdings, Ltd. traded
above the price of their initial public offering in their debut on
London's junior AIM market on Tuesday.
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Berkeley Set for Continued Recovery in FY 2021 Results --
Earnings Preview
Berkeley Group Holdings PLC is scheduled to report results for
the fourth quarter of fiscal 2021 and full year on Wednesday.
Here's what you need to know:
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Guaranty Trust Bank Requests Suspension of London-Listed
Securities -- Update
Trading in Guaranty Trust Bank PLC securities has been
temporarily suspended as of Tuesday by the U.K. Financial Conduct
Authority, at the request of the company.
---
Zinnwald to Acquire Remaining Stake in Deutsche Lithium for
EUR8.8 Mln
Zinnwald Lithium PLC said Tuesday that it has agreed to acquire
the 50% of Deutsche Lithium GmbH that it doesn't already own for
8.8 million euros ($10.5 million) from the estate of SolarWorld
Aktiengesellschaft, which is in administration.
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UK Regulator Serves Enforcement Order on NCR's Acquisition of
Cardtronics
The U.K. Competition and Markets Authority said Tuesday that it
has served an enforcement order on NCR Corp. over its completed
$2.5 billion acquisition of ATM operator Cardtronics PLC while it
completes a review into the deal.
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Coca-Cola HBC Shareholders Show Opposition to Remuneration
Report
Coca-Cola HBC AG said Tuesday that it will start a consultation
with shareholders after its remuneration reports were passed with
28% of opposition at the annual meeting.
Market Talk:
BOE May Tighten Policy Later than Market Expects
1236 GMT - The Bank of England is likely to unwind some
quantitative easing as a means to start tightening monetary policy
before raising interest rates, which may take place later than the
market expects, says Capital Economics. "There's a good chance that
when the Bank of England's Monetary Policy Committee starts to
tighten monetary policy it will do it by unwinding some
quantitative easing before it raises interest rates," says chief
U.K. economist Paul Dales. He projects the consumer price index
won't stick above the 2% target until late in 2023, suggesting that
monetary policy will be tightened later than the market expects,
perhaps even in 2024, as opposed to 2022. That would be consistent
with the gilt yield curve steepening rather than flattening, he
adds.
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UK Faces Food Shortages Amid Brexit Truck-Driver Exodus
1211 GMT - The U.K. faces potential food shortages and delivery
delays amid an exodus of lorry drivers following the country's EU
exit, a logistics expert says. The U.K. has a shortfall of around
70,000 drivers that could trigger delays, empty shelves and higher
prices, parcel-delivery comparison website ParcelHero says. "The
reason is all too obvious. Our analysis of government figures last
October showed thousands of EU drivers and warehouse operatives
fleeing the U.K. to avoid Brexit regulations," ParcelHero's David
Jinks says. "It's high time the U.K. government worked with the EU
to clear up issues around customs delays and charges, Northern
Ireland deliveries and increased transport costs. That means
revisiting some of the terms of the fudged, last-minute UK-EU
Brexit agreement."
---
HSBC's Terms of Sale for French Retail Banking Operations Seen
as Unappealing
1156 GMT - HSBC Holdings was the biggest faller on the FTSE 100
on Monday following the announcement of a potential loss on the
sale of its French retail banking business. The bank's announcement
didn't come as a surprise, but the terms of the disposal aren't
particularly attractive, Shore Capital says. Shore says the
financial hit of the disposal will be mainly recognized in the
bank's accounts during 2022 if completed. However, Shore also notes
that the sale should help to enhance the lender's return on
tangible equity going forward and will likely lift its pretax
profitability. Shares in London are down 0.8% at 423.20 pence.
(
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BOE Expected to Reinforce Monetary Tightening Rhetoric
1130 GMT - The Bank of England is set to keep monetary policy on
hold this Thursday while strengthening its rhetoric around removing
stimulus measures adopted in the wake of the pandemic, says Bank of
America. "Inflation and growth data are outperforming BOE forecasts
but delaying the final stage of lockdown easing should have only a
small impact" on bank officials' views, analysts at the bank say.
They think another rate-setter may join chief economist Andy
Haldane to vote in favor of ending quantitative easing early. BofA
expects the BOE to raise the Bank Rate by 15 basis point to 0.25%
in May 2022 and begin quantitative tightening shortly
afterwards.
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Staffline Is Poised to Gain From Skills Shortage, Strong
Recruitment Pipeline
1058 GMT - For Staffline Group, the increasingly evident skills
shortage should be a positive, Liberum says. The
recruitment-and-training company's Recruitment GB division has
scope for further gains in market share, currently at 10%,
reporting only a 9% fall in 2020 EBIT--of which 70% is from blue
collar on site activity--to GBP4.2 million despite pandemic-related
disruption, Liberum says. The division continues to enjoy good
growth in food processing and logistics, which should have low
cyclicality, and is seeing a stronger recruitment pipeline, the
brokerage says. "We note that trading has improved in the last
couple of months as the easing of restrictions has led to a steep
increase in both temporary and permanent vacancies," Liberum
says.
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Thor Explorations Shares Climb on London Debut
0952 GMT - Shares in Thor Explorations are up 2.5% on the gold
miner's first day of dealings on the London AIM. The company's
Segilola project is the first major gold mine in Nigeria. Thor is
on track to imminently begin generating positive cash flow, as
Segilola production ramp-up is expected from the third quarter,
says Canaccord Genuity, the company's broker. It expects Thor to
deliver significant excess cash flow within the next 12 months,
noting that management is already considering dividend policy
options. "Should this transpire, we believe this would act as a
clear differentiating factor to many other junior gold companies,"
Canaccord says.
---
Morses' Update Bodes Well for Future Profitability
0936 GMT - Shares in Morses Club rise 8.9% after the financial
services provider reported an encouraging start to the year,
particularly in the digital business, Peel Hunt says. The trading
update highlights that the company is benefiting from strong demand
and an increasingly strong market position, which bodes well for
future levels of profitability. Peel Hunt, a corporate broker for
Morses, raises its target price to 100 pence from 75 pence and
reaffirms its buy rating on the stock.
Contact: London NewsPlus, Dow Jones Newswires;
+44-20-7842-931
(END) Dow Jones Newswires
June 22, 2021 09:25 ET (13:25 GMT)
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