London Stocks Seen Opening Little Changed, PMI Data in Focus
0648 GMT - The FTSE 100 index is expected to open little
changed, up just 0.5 points, according to IG, having closed Tuesday
at 7090.01. U.K. stocks look set to underperform their European
counterparts, with investors nervous ahead of a Bank of England
meeting Thursday. After the U.S. Federal Reserve last week
unexpectedly forecast rate rises in 2023, there are concerns that
the BOE may similarly warn of possible future rate rises and
scaling back of quantitative easing. Investors will therefore watch
flash U.K. purchasing managers' survey data at 0830 GMT closely.
House builder Berkeley will be watched after it said profit and
revenue rose for fiscal 2021 and proposed an additional shareholder
return. (jessica.fleetham@wsj.com)
Companies News:
Old Mutual Year-To-Date Profitability Rises on Higher Funds
Under Management
Old Mutual Ltd. said Wednesday that its profitability improved
in the year to date as a result of higher funds under
management.
---
Anglo American: De Beers Diamond Sales Rise in Fifth Cycle
Anglo American PLC on Wednesday reported De Beers rough diamond
sales of $470 million for the fifth cycle of 2021.
---
Berkeley Group FY 2021 Profit Rose, Proposes Additional
Shareholder Return
Berkeley Group Holdings PLC said Wednesday that profit and
revenue rose for fiscal 2021 and proposed an additional shareholder
return of surplus cash.
---
Anexo Group Gets GBP174 Mln Cash Offer Approach from DBAY
Advisors
Anexo Group PLC said Wednesday that it has received a 174
million pound ($242.7 million) possible cash offer approach from
DBAY Advisors Ltd., and has granted it due diligence access.
---
Joules FY 2021 Revenue Rose, Adjusted Profit to Exceed Market
Expectations
Joules Group PLC said Wednesday that its fiscal 2021 revenue
rose 4% despite the coronavirus pandemic and adjusted profit before
taxes and exceptional items is expected to slightly exceed market
expectations.
---
1Spatial Says Order Levels Rose in FY 2022 to Date
1Spatial PLC said Wednesday that order levels for new sales in
the fiscal 2022 to date are higher than in the prior year, and that
it is confident in a successful outcome to the year.
---
Vertu Motors Upgrades Guidance Given Strength of Used-Car
Market
Vertu Motors PLC said Wednesday that it expects full-year
adjusted earnings to exceed expectations amid an exceptional
used-car market environment.
---
Liontrust FY 2021 Pretax Profit Rose
Liontrust Asset Management PLC said Wednesday that fiscal 2021
pretax profit and revenue rose, and that it has a strong momentum
and is well positioned to continue growing.
---
Vector Capital Raises GBP1.5 Mln to Increase Lending Power
Vector Capital PLC said Wednesday that it has raised 1.5 million
pounds ($2.1 million) via a share placing which will increase the
company's lending power to meet demand for the group's loans.
---
Amala Foods to Extend Loan; Sees Performance Indicators on
Target
Amala Foods PLC said Wednesday that it has agreed to extend a
loan to the first quarter of 2022 and that performance indicators
remain on target, as the company nears completion of research and
development of several plant-based products.
Market Talk:
UK Services PMI Expected to Rise While Manufacturing PMI Is Seen
Falling
0651 GMT - The U.K. services purchasing managers index for June
is likely to be broadly unchanged at 63.0, while the manufacturing
PMI likely dropped to around 62.0 after posting a record high of
65.6 in May, UniCredit forecasts. Economists polled by The Wall
Street Journal project the U.K. services PMI coming in at 62.0 and
the manufacturing PMI at 64.0. "The services sector has been
boosted by reopening, but the U.K. government's four-week delay in
lifting restrictions on social contact will likely delay a further
rise in the services PMI," economists at the bank say. Although the
manufacturing PMI increased strongly in May, some easing in June
seems likely as demand shifts toward services and supply-chain
disruptions ease, UniCredit says. U.K. PMIs will be published at
0830 GMT. (maria.martinez@wsj.com)
BHP's Low-Cost Mines, Strong Cash Flow Look Underappreciated
0239 GMT - It's catchup time for BHP's shares, says Morgan
Stanley, as the bank upgrades the miner's London-listed stock to
overweight from equal weight and its price target to GBP23.60 from
GBP21.10. That brings its view on BHP's U.K. shares in line with
its outlook for BHP's Australian stock. The "merits of BHP's
low-cost assets, strong free cash-flow generation, oil-and-gas
exposure, and capital-returns prospects remain underappreciated,"
MS says. BHP's London shares are implying a long-term iron-ore
price of $71/ton versus spot at $207/ton, it adds. Plus, MS reckons
a partnership on BHP's Jansen potash project, which is still being
evaluated, could reduce project risk, and ongoing work to jettison
its thermal-coal assets could materially improve its ESG
credentials. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)
Shell Says Can Meet Court Ruling on Own Emissions
1713 GMT - Royal Dutch Shell believes it can "see a pathway" to
meeting the Dutch court ruling to reduce the company's own
emissions by 45% by 2030, but reducing the emissions of its
customers by the same scale is much harder, its CEO says. Speaking
at the Qatar Economic Forum, Ben van Beurden says reducing those
emissions should not mean getting rid of customers, but instead
working with customers to change their energy needs, although
governments have a greater influence over this because Shell can't
drive a shift from petrol engines to electric vehicles, for
instance. "I'm also calling out governments to also step up to the
plate because this is not a challenge for one company, not even for
one sector, this is a systems challenge that we all have to
embrace." (sarah.mcfarlane@wsj.com)
Contact: London NewsPlus, Dow Jones Newswires;
+44-20-7842-931
(END) Dow Jones Newswires
June 23, 2021 03:08 ET (07:08 GMT)
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