Pound Unfazed by Empty Petrol Stations Due to Rate-Rise
Prospects
The shortage of truck drivers and lack of fuel at petrol
stations in the U.K. are becoming increasingly serious but are so
far having little impact on the pound, Commerzbank says. "This is
mainly due to the Bank of England, which is increasingly
emphasizing its willingness to fight higher inflation risks (which
supply bottlenecks also entail) with interest rate hikes if
necessary," Commerzbank currency analyst Esther Reichelt says. BOE
Governor Andrew Bailey on Monday said that interest rates could be
raised before Christmas if needed to stem inflation. GBP/USD falls
0.2% to 1.3663 and EUR/GBP rises 0.1% to 0.8547.
Companies News:
NAHL Expects Lower Revenue, Underlying Operating Profit for
2021; Shares Fall
Shares in NAHL Group PLC fell after the company said it expects
2021 revenue and underlying operating profit to be lower than the
board's previous expectations and below 2020, despite reporting a
swing to pretax profit for the first half.
---
Frenkel Topping to Raise Up to GBP2.3 Mln via Sale of Treasury
Shares
Frenkel Topping Group PLC said Tuesday that it plans to raise up
to 2.3 million pounds ($3.2 million) via the sale of treasury
shares and will use the money to increase its cash resources.
---
DWF Group Says Year-To-Date Performance Is in Line With
Management Views
DWF Group PLC said Tuesday that its performance for the
financial year to date is in line with management expectations.
---
Carnival Appoints Sture Myrmell President of Carnival U.K.,
Marguerite Fitzgerald President of Carnival Australia, P&O
Cruises Australia
Carnival PLC said Tuesday that Sture Myrmell has been appointed
president of Carnival U.K. effective Oct. 18, replacing Simon
Palethorpe, and that Marguerite Fitzgerald will assume his position
and serve as president of Carnival Australia and P&O Cruises
Australia effective Jan. 10.
---
Osirium Technologies 1H Pretax Loss Narrowed
Osirium Technologies PLC on Tuesday reported a narrowed pretax
loss for the first half of the year, and said that its positive
momentum has continued into the second half.
---
First Property Says Performance Remains In Line
First Property Group PLC said Tuesday that performance remains
in line with management expectations.
---
Ferro-Alloy Resources 1H Pretax Loss Narrowed; Positive on
2H
Ferro-Alloy Resources Ltd. reported on Tuesday a narrowed pretax
loss for the first half of the year due to higher prices, which
were partly offset by lower production linked to Covid-19 related
effects that have now been largely resolved.
---
UK Commercial Property REIT Swung to 1H Pretax Profit
UK Commercial Property REIT Ltd. said on Tuesday that it swung
to a pretax profit for the first half and that it was seeing the
positive impact of the economic recovery as lockdown measures were
eased.
---
Petershill Partners Debuts in London With GBP4.0 Bln Market
Capitalization
Petershill Partners said Tuesday that its initial public
offering on the London Stock Exchange will value the company at
around 4.0 billion pounds ($5.48 billion).
---
HeiQ 1H Pretax Profit Fell on Lower Revenue, Increasing Costs;
Shares Fall
Shares in HeiQ PLC fell 21% in early trade Tuesday after the
company reported lower profits for the first half of the year on
reduced sales and higher costs.
---
IHS Markit 3Q Profit Falls, Revenue Up
IHS Markit Ltd. said profit for its recent quarter fell as
revenues for financial services, transportation and consolidated
markets and solutions rose.
Market Talk:
Wickes Shares Look Cheap Given its High Quality
1022 GMT - Wickes looks high-quality, cash-generative and a
leader in its market, and shares currently remain far too cheap for
the high-quality growth, upgrade momentum and strong cash
generation on offer, Liberum says. The building-materials retailer
continues to strengthen its market-leading position through
multiple self-help levers--embedding digital channels, improving
its curated product ranges and delivering best-in-class customer
service, the brokerage says. There is further space to grow in
Wickes' "do-it-for-me" business, while indicators for trade and DIY
remain positive, Liberum says. The brokerage retains its buy rating
on the stock with a target price of 221.0 pence, and says Wickes is
one of the best ways to invest in the U.K.'s repair, maintenance
and improvement market. Shares are up 2.2% at 226.0 pence.
---
Pennon 1H Revenue Rose, But Costs Are Set to Increase
0958 GMT - Pennon Group shares drop 4% after the U.K. water
utility reported a first-half revenue increase, but forecast higher
costs. Ebitda remains in line with management expectations as
higher revenue offset increased costs, RBC Capital Markets says.
"Pennon continues to be a strong performer within the U.K. water
sector, given sector-leading [return on regulatory equity]
performance; however, we see the current 34% premium to our FY22
[expected regulatory capital value] as challenging on a fundamental
basis. We maintain a sector-perform recommendation," RBC analyst
Alexander Wheeler
---
Artificial Intelligence Could Give Rise to More Monopolistic
Companies
0953 GMT - Artificial intelligence may exacerbate the wealth
inequality among companies and nations, while also giving rise to
more powerful monopolistic businesses, says Kai-Fu Lee, CEO of
venture-capital firm Sinovation Ventures. Those with access to
proprietary data could reap the benefits of AI, creating a virtuous
cycle where "the data allows the company to build better AI, better
AI can generate better economics and deliver a better product and
[gain] way more customers and make more money and get even more
data," he says.
---
Electrocomponents Has Potential for Further Market Share
Gains
0950 GMT - The pandemic has further strengthened
Electrocomponents's competitive advantage, given its digital and
web capability, stock availability and omni-channel superior
proposition, RBC Capital Markets says. The bank's analysts see
strong potential for Electrocomponents to gain further market
share, and believe mid-teen margins are achievable from a number of
levers. In addition, further acquisitions could be an incremental
value driver, RBC says as it upgrades its recommendation on the
distributor of industrial and electronics products. "Our
medium-term forecast increases drive an increase in our target to
1,350p and we upgrade to Outperform, believing ECM will be a
long-term winner."
---
HSBC Well-Placed to Weather Turbulence; May Return Cash
0946 GMT - HSBC is best-placed among Hong Kong banks to weather
short-term economic pressure and could return cash to shareholders,
Citigroup says. Select HK banks are trading close to Covid-19 and
2015 trough levels over concerns on mainland China property
exposure, but asset-quality risks facing banks in the region look
manageable for most of them and a divergence between their share
prices and the rising U.S. 10-year bond yield offers an attractive
buying opportunity, Citi says. "Our top pick is HSBC, which we
believe could announce a buyback in 3Q21 earnings given surplus
capital, improved profitability and attractive valuation," Citi
analysts say.
---
PRS REIT's Capital Raise Likely to Be Popular But Will Hamper
EPS
0940 GMT - PRS REIT's GBP75 million capital raise is likely to
be well-supported following company performance improvements as the
pace of development completions accelerates, but it will delay EPRA
earnings per share growth, Liberum says. The real-estate trust is
only just beginning to achieve a meaningful level of earnings per
share as the proportion of completed units has risen and the
majority of the net asset value return to date has come from
development profits, the brokerage says. "We expect the company
will maintain an uncovered dividend of 4.0 pence a year in the
intervening period as another dividend cut would be unpalatable for
some investors," Liberum says. Shares are up 0.5% at 103.5
pence.
---
Non-Standard Finance Seen With Long Way to Go to Return to
Viable Position
0938 GMT - The fact that Non-Standard Finance has reiterated
indications of support from its largest shareholders regarding its
plans to raise capital is positive, Goodbody says. However, it is
clear that the U.K. provider of consumer finance still has much to
do to return to a viable position, Goodbody says. A step
Non-Standard Finance will likely take to return to a viable
position could include a potential restructuring of its debt
facilities, the Irish brokerage says.
---
AG Barr Had Strong 1H, But Costs, Supply Issues Weigh
0930 GMT - Shares in AG Barr edge 0.4% lower after the Scottish
soft-drink maker warned of a potential second-half margin hit from
rising costs and supply-chain issues. The company had a strong 1H
underpinned by a post-lockdown recovery in so-called 'out-of-home'
demand, cost-cutting and several one-off benefits, Goodbody says.
"The group anticipates margins to normalize in 2H, reflecting a
re-phasing of marketing and increased cost inflation--raw
materials, logistics and CO2--and therefore reiterates its guidance
for FY21/22 PBT to be slightly ahead of pre-Covid levels," Goodbody
analyst Patrick Higgins says. "Consequently, we anticipate leaving
our current forecast for FY21/22 PBT of GBP38.4 million--versus
FY19/20 of GBP37.4m--unchanged."
Contact: London NewsPlus, Dow Jones Newswires; Write to Sarka
Halas at sarka.halas@wsj.com
(END) Dow Jones Newswires
September 28, 2021 06:49 ET (10:49 GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.
FTSE 100
Index Chart
From Aug 2024 to Sep 2024
FTSE 100
Index Chart
From Sep 2023 to Sep 2024