The FTSE 100 finished up 0.3% on Wednesday as a calmer
atmosphere prevailed after the excitement of the first two days of
the week, with selling across markets apparently on pause for the
time being. "The weakness in equities seen over the past few weeks
certainly disguises the overall strong performance of the global
stock market over the past twelve months," IG Group chief market
analyst Chris Beauchamp says. While there wasn't much appetite to
buy stocks at the highs of late December, investors shouldn't lose
sight of the fact that an improving economy will still provide the
chance for earnings to grow, and the current reporting season
should help remind investors of that fact, Mr. Beauchamp says.
Companies News:
GlaxoSmithKline Names Tony Wood CSO Designate
GlaxoSmithKline PLC said Wednesday that it has appointed Tony
Wood as chief scientific officer from August, replacing Hal Barron,
who will become nonexecutive director.
---
Smith & Nephew Buys Engage Surgical for Up to $135 Mln
Smith & Nephew PLC said Wednesday that it has acquired
Engage Surgical for up to $135 million, contingent on sales
performance.
---
Burberry's 3Q Comparable Retail Sales Rose Ahead of Market
Views
Burberry Group PLC said Wednesday that retail revenue and
comparable store sales rose in the third quarter of fiscal 2022,
with new customers driving double-digit full-price sales growth
across all of its product categories.
---
Antofagasta Expects Higher Costs in 2022; 2021 Output in Line
With Guidance
Antofagasta PLC on Wednesday warned that its operational costs
will jump this year, and reported that production for 2021 was in
line with its guidance.
---
Experian COO Kerry Williams to Retire; Craig Boundy Named
Experian PLC said Wednesday that Chief Operating Officer Kerry
Williams plans to retire from his role after 19 years with the
company, and will be replaced by Craig Boundy.
---
Wise 3Q Revenue Rose 34%
Wise PLC said Wednesday that its revenue grew 34% in the third
quarter of the fiscal year.
---
Pearson Expects Increased 2021 Sales, Adj Operating Profit
Pearson PLC said Wednesday that it expects to report increased
sales and adjusted operating profit for 2021.
---
J.D. Wetherspoon to Report 1H Loss Due to Coronavirus-Related
Restrictions
J.D. Wetherspoon PLC said Wednesday that sales for the second
quarter of fiscal 2022 were hurt by coronavirus-related
restrictions, and that it will be loss-making in the first half of
the year.
---
Christie Group Sees 2021 Operating Profit Significantly Ahead of
Market Expectations
Christie Group PLC said Wednesday that it expects to report
operating profit for 2021 significantly ahead of current market
expectations.
---
WH Smith Says Year-To-Date Revenue Is at 85% of Pre-Pandemic
Levels
WH Smith PLC said Wednesday that revenue for the 20 weeks to
Saturday was at 85% of 2019 revenue levels, with its high
street--or brick-and-mortar retail--business being in a stronger
position than its travel division due to the Covid-19 Omicron
variant.
---
Burberry's 3Q Comparable Retail Sales Rose Ahead of Market
Views
Burberry Group PLC said Wednesday that retail revenue and
comparable store sales rose in the third quarter of fiscal 2022,
with new customers driving double-digit full-price sales growth
across all of its product categories on a two-year basis.
Market Talk:
Energy-Efficiency Improvements Seen as Key to Energy
Transition
1309 GMT - Reducing the amount of energy required to make
products and deliver services is key to meeting emissions-reduction
targets and helping the world to decarbonize, ABB Chief Executive
Bjorn Rosengren says at the World Economic Forum. "The best energy
is the one we don't waste, but save--in fact, energy efficiency
improvements will drive more than 40% of the reduction of their
energy-related greenhouse gas emissions over the next 20 years," he
says. Decarbonizing the most energy- and carbon-intensive
industries should be the priority, Rosengren says.
---
EUR/GBP Could Recover, SocGen Advises Buying Call Option
1254 GMT - The euro looks set to recover versus sterling as the
Bank of England is unlikely to raise interest rates by more than
the market has already priced in, Societe Generale says. The four
U.K. rate rises expected this year are "likely the limit of what is
imaginable" as slowing wage growth and accelerating inflation will
drag on discretionary spending, SocGen forex analyst Kit Juckes
says. "This suggests that the GBP optimism is in the price, so that
gains are likely to be over, making EUR/GBP now looking too low."
SocGen advises buying a EUR/GBP two-month digital call option, with
a strike price of 0.86. EUR/GBP falls 0.1% to 0.8322.
---
Pearson Well Placed to Take Advantage of Increasing Learning
Spending
1221 GMT - Pearson is set to benefit from the positive
medium-term outlook for global learning spending and should be
boosted by its growing exposure to and substantial investment in
digital products, Shore Capital says. The FTSE 100 education
company's strengthening consumer and digital focus give it the
potential to generate significant medium-term growth by
capitalizing on positive global learning market dynamics. The U.K.
investment group currently has a hold rating with a 632 pence
target price, but it plans to review its financial forecasts and to
revisit the recommendation on its growing belief in the company.
Shares in Pearson trade 7.7% higher at 48.8 pence.
---
Interest in Best of the Best Games Seen Fading
1214 GMT - Best of the Best's business might have flourished in
the pandemic's early-stages, while people couldn't leave home and
were looking for a way to make quick money, but interest in the
company's games faded after working-from-home restrictions were
eased, AJ Bell says. The online competition-prize organizer
downgraded its FY guidance due to higher customer-acquisition costs
and lower profit, with the share price down 78% in the past 12
months, the U.K. brokerage says. "Shareholders are likely to be
losing patience fast and perhaps thinking that its stock market
code BOTB might actually stand for BoOm To Bust," AJ Bell says.
Shares are down 31% to 420.0 pence.
---
European Equity Funds Get Inflow Boost, But UK Lags
1208 GMT - European equity funds had their strongest inflows at
the start of a year since 2018 last week, though the U.K. lost
ground, Bank of America says. European-focused funds had $1.9bn of
inflows, the seventh-largest weekly inflow in the last two years,
BoA says. So far this year, European-focused funds have recorded
$3.1bn in inflows, the strongest start to a year since 2018, driven
mainly by $2.8bn of inflows into passive funds. "Among countries,
Switzerland recorded the largest inflow ($0.3bn), while the U.K.
recorded the largest outflow ($0.4bn)," BoA analysts say.
Meanwhile, U.S. and continental European investments look more
attractive than those in the U.K. as record inflation weighs on
U.K. consumers, HSBC says.
---
Christie Group Shares Seen to Rise After Positive Update
1202 GMT - Christie Group's update is highly positive and
highlights demand for its transactional services and related advice
across all of its specialist sectors, Shore Capital says. Christie
Group said it had an extremely strong year-end performance in the
business broking, valuation & advisory practice, leading Shore
to raise its revenue forecast for the professional-services
provider by GBP1 million to GBP60 million and pretax profit view to
GBP3.7 million from GBP2.2 million. Shares have risen from a low of
90 pence before Christmas to 102 pence currently and the U.K.
investment group sees a further recovery following the update.
Shore Capital Markets acts as a broker to Christie Group. Shares
trade 7.8% higher at 110 pence.
---
Wetherspoon Recovery Might Take Longer Than Expected
1149 GMT - There are concerns about Wetherspoon's 2H recovery
expectations, especially taking into account the headwinds the
group faces, Shore Capital says. The recovery may take longer as
recent updates showed an underperformance when set against its
peers since coronavirus restrictions were lifted last spring, Shore
adds. "Where we remain most cautious is positioning of the estate,
its value-led and low-margin model," the U.K. investment group
says. Shore Capital has a hold rating on the stock and a target
price of 906 pence. Shares are up 2.2% at 923.5 pence.
---
In the Style's Launch Delays Prompt Reduced 2022 Forecasts
1146 GMT - Although online ladies-fashion brand In The Style
delivered strong growth over the eight-week period ending Dec. 31,
supply chain issues have caused delays in the timing of launches,
Liberum says. This has resulted in shorter full-price sale periods
for some ranges and may affect the launch timetable in the fourth
quarter, Liberum says, prompting the U.K. brokerage to reduce
adjusted Ebitda margins for 2022 to 1.5% from a previous 4.0%.
"While this is clearly disappointing one should not lose sight that
the demand factor remains very strong indeed," it notes. Liberum
rates the stock buy and lowers its target price to 180 pence from
220 pence. Shares are down 2.7% at 91 pence.
Contact: London NewsPlus, Dow Jones Newswires; Write to Sarka
Halas at sarka.halas@wsj.com
(END) Dow Jones Newswires
January 19, 2022 12:01 ET (17:01 GMT)
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