The FTSE 100 closed down 0.34% on Wednesday, losing most of the
prior day's gains, though most investors focused on U.K. Chancellor
of Exchequer Rishi Sunak's budget. The chancellor delivered a
welcome boost to leisure and hospitality, with a temporary cut in
business rates joining reduced alcohol taxes, IG Group PLC senior
market analyst Joshua Mahony says. The latest U.K. economic
forecasts also make for positive reading, though the chancellor's
push towards fiscal discipline could raise questions, given Bank of
England is predicted to raise rates next week, Mr. Mahony says. The
idea of raising rates at the same time and fiscal tightening
signals a potential squeeze on an economy still finding its feet
after a damaging 19-months, Mr. Mahony says.
Companies News:
Redcentric Says 1H Revenue Was Broadly Stable; Backs Guidance
Despite Supply-Chain Issues
Redcentric PLC said Wednesday that it expects to report that its
performance for the first half of fiscal 2022 was broadly in line
with that of the same period a year earlier, while it sees business
for the remainder of the year in line with expectations despite
supply-chain issues.
---
Restore Buys Records Management Business the Document
Warehouse
Restore PLC on Wednesday said that it has acquired the
records-management business The Document Warehouse for 6.5 million
pounds ($8.9 million).
---
Vianet Group Says 1H Revenue Jumped; Expects 2H to Underline
Dividend Reinstatement
Vianet Group PLC said Wednesday that revenue jumped in the first
half of fiscal 2022, and that it expects second-half cash
generation to enable the reinstatement of a dividend in July for
the fiscal year given that there aren't any further Covid-19
restrictions or a worsening in the semiconductor supply.
---
Urban Logistics Proposes Move to FTSE Main Market, Share
Placing
Urban Logistics REIT PLC on Wednesday proposed a move to the
premium segment of the London Stock Exchange's main market from the
alternative investment market in early December, and to authorize a
placing program of up to 350 million shares.
---
Atalaya Mining Declares Inaugural Dividend, New Dividend
Policy
Atalaya Mining PLC said Wednesday that it has declared an
inaugural dividend of around $54.6 million, priced at $0.395 per
ordinary share, and approved a dividend policy.
---
Softline Holding Prices IPO at Bottom End of Range
Softline Holding PLC on Wednesday priced its initial public
offering at $7.50 per global depositary receipt, the bottom of the
preset range, implying a market capitalization of $1.5 billion.
---
Katoro Gold Shares Rise on Joint-Venture IPO News
Shares in Katoro Gold PLC rose on Wednesday after the company
said it has agreed with its partner Target Mine Consulting Ltd. to
create a new company out of their Blyvoor Joint Venture and seek to
list it on the London Stock Exchange.
---
KCR Residential REIT CEO to Step Down After AGM; Successor
Named
KCR Residential REIT PLC said Wednesday that Chief Executive
Dominic White will move to a nonexecutive position on the board
following the annual general meeting on Nov. 19, and that Russell
Naylor will take over as CEO.
---
Bushveld Minerals Agrees on Duferco Convertible Loan Note
Payment
Bushveld Minerals Ltd. said Wednesday that it has agreed on
final terms for the repayment of $11.5 million in unsecured
convertible loan notes held by Duferco Participations Holding
SA.
---
Sumo Group Agrees to Loan Revision
Sumo Group PLC said Wednesday that it has agreed to a revision
of its revolving credit facility with Clydesdale Bank PLC.
---
CAP-XX's 1Q Sales Strong Despite Covid-19 Restrictions
CAP-XX Ltd. said Wednesday that its first-quarter sales were
strong despite disruption to manning and production, and that sales
orders remain robust.
---
Firering Strategic Minerals to Float in London on Nov 12; To
Raise GBP4.0 Mln
Firering Strategic Minerals PLC said on Wednesday that it
expects to float on the London Stock Exchange on Nov. 12 and that
it expects to raise a capital of 4.0 million pounds ($5.5
million).
Market Talk:
Wickes Still Could Positively Surprise Despite Prior
Upgrades
0929 GMT - Wickes has posted a solid third-quarter update with
continued repair, maintenance and improvement market and self-help
market buoyancy, allowing it to maintain guidance, Liberum says.
The building-supplies retailer's strong result in the current
environment comes after two rounds of upgrades since its spinoff in
April and still leaves some scope for outperformance in its
full-year numbers, the brokerage says. Wickes looks like one of the
best ways to invest in the U.K. repair, maintenance and improvement
market, and its shares still look too cheap for the high-quality
growth, profit momentum and strong cash generation on offer,
Liberum says. Liberum retains its buy rating on the stock with a
price target of 420.0 pence.
---
UK Public Finances Still Not Out of the Woods
0849 GMT - U.K. Treasury chief Rishi Sunak is likely to present
a better state of the public finances than initially forecast when
he announces the autumn Budget in parliament later Wednesday, says
UniCredit. The better situation may not last, however, as it's
largely due to one-off factors, reflecting an underspend on
Covid-19 support measures, analysts at the bank say. Economic
growth has slowed materially, while rising inflation and a higher
yield curve will add to debt-servicing costs, analysts at the bank
say. Bank of England rate-setters said they will have to act to
tackle stubbornly high inflation, raising the risk of higher
interest rates fairly soon. This would increase the cost to the
Treasury of the BOE remunerating reserve balances at the bank rate,
they say.
---
UK's Sunak Unlikely to Unveil 'Big Giveaways'
0830 GMT - U.K. Treasury chief Rishi Sunak is likely stress the
need for fiscal responsibility at Wednesday's Budget, says
UniCredit. Sunak will likely announce new fiscal rules, including
balancing the current budget and putting the debt-to-GDP ratio on a
declining path by 2024-25, analysts at the bank say, adding "we are
not expecting any big giveaways today." There will very likely be
some measures to address the government's manifesto pledges, they
say, including on "leveling up" the economy, the green transition
to "net zero" and health and social care, some of which have been
pre-announced... But the main message "is that there will be a
significant tightening of fiscal policy over the next couple of
years."
---
Apparel Recycling Could Be on Verge of a Giant Leap
0829 GMT - Textile recycling might not be sexy, but innovation
in the field is vital to the pressing issue of waste in the fashion
industry, Laudes Foundation CEO Leslie Johnston tells The Wall
Street Journal. Mixed materials in most garments have stymied
large-scale recycling of clothes, with the materials often simply
chopped up and used as insulation for want of a better solution,
Johnston says. But there have been exciting advances in chemical
recycling able to melt fabrics in order to reuse them, and major
apparel brands have invested in the technology. "It could really
revolutionize the back end of the industry," Johnston says.
---
Sustainability in Textiles Is a Multifaceted Concern
0820 GMT - A number of elements go in to ensuring the
sustainability of textiles used in making clothes, including
environmental and labor concerns, Leslie Johnston of the Laudes
Foundation tells The Wall Street Journal. Ensuring responsible use
of water in textile production and eliminating harmful chemicals
are both vital to guaranteeing sustainability in apparel
manufacture, as promoted by the environmental nonprofit's Fashion
for Good campaign. The treatment of garment workers, including fair
wages, is also a key plank of sustainability, while efforts to
recycle more are also increasingly important given overproduction
in the industry, Johnston says.
Contact: London NewsPlus, Dow Jones Newswires; Write to Sarka
Halas at sarka.halas@wsj.com
(END) Dow Jones Newswires
October 27, 2021 12:05 ET (16:05 GMT)
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