FTSE 100 Gains as Banks, Miners, Diageo Rise
0918 GMT - The FTSE 100 edges 0.2%, or 12 points, higher to 7482
as gains for financial and general mining stocks offset losses for
precious-metal producers and construction shares. Standard
Chartered, HSBC, Barclays, NatWest and Lloyds are all higher after
U.S. Fed chairman Jerome Powell laid out a tougher stance on
fighting inflation. "The tough talk on rate increases continues,
with the central-bank chief refusing to rule out consecutive
monthly rate rises during the year," IG analysts say. General
miners Rio Tinto, Glencore and BHP are higher, though Fresnillo and
Polymetal International lose ground as gold and silver prices drop.
House builders are also in the red, though spirits group Diageo
gains 0.6% after reporting higher 1H net profit.
(philip.waller@wsj.com)
Companies News:
M&G to Acquire ResponsAbility Investments
M&G PLC said Thursday that it has agreed to acquire a
majority stake in responsAbility Investments AG for an undisclosed
amount.
---
Hammerson Raises 2021 Guidance After Improved Performance
Hammerson PLC said Thursday that it has increased its 2021
adjusted earnings guidance after an improved performance.
---
EasyJet 1Q Pretax Loss Narrowed, January Bookings Jump on Easing
of UK Restrictions
EasyJet PLC said Thursday that its first-quarter pretax loss
narrowed despite the short-term impact of the Omicron variant in
December, and that bookings jumped after the U.K. said in January
that it would ease pandemic restrictions.
---
3i Group Nine-Month Total Return Was 32.6%; Net Asset Value
Rose
3i Group PLC on Thursday reported a 32.6% total return for the
first nine months of the fiscal year as it benefited from a good
performance across its investment portfolios.
---
Whitbread Appoints Hemant Patel as New CFO
Whitbread PLC said Thursday that Hemant Patel has been appointed
as its new chief financial officer, succeeding Nicholas
Cadbury.
---
Intermediate Capital 3Q Third-Party Assets Under Management
Rose
Intermediate Capital Group PLC said Thursday that third-party
assets under management rose during the third quarter and that
momentum across its platform underpins the positive outlook.
---
Diageo 1H Net Profit Rose on Higher Sales
Diageo PLC said Thursday that net profit rose in the first half
of fiscal 2022, boosted by better-than-expected sales volume
despite unfavorable foreign exchange.
---
St. James's Place 4Q Net Inflows Rose on Year
St. James's Place PLC said Thursday that net inflows increased
in the fourth quarter of 2021, and that it closed the period with
record funds under management.
Market Talk:
EasyJet Gains After 1Q Loss Eases; Rivals Rise
0933 GMT - Shares in easyJet climb 0.8% after the European
budget airline reported a narrowed first-quarter pretax loss and
higher bookings following a U.K. move to ease pandemic
restrictions. "The reduction in travel restrictions announced by
the U.K. government on Jan. 5 and the further drop in testing
requirements finally gave the airlines some good news and easyJet
saw an immediate boost in sales off the back of the announcements,"
Hargreaves Lansdown analyst Matt Britzman says. "That comes after a
tough couple of months where Omicron fears and restrictions meant
passenger load dropped down to 67% in December, with a further drop
to 50% expected for January." Shares in IAG, Ryanair and Air
France-KLM also gain. (philip.waller@wsj.com)
Diageo Seen as Able to Offset Cost Inflation
0921 GMT - Diageo has proved to be a worthy core constituent for
investors portfolio due to its pricing power and growth potential,
Interactive Investor says. The investment platform says Diageo
benefits from the nature of the sector, such as the ability to pass
on price increases and productivity savings in order to curb cost
inflation, while the move toward "premiumization" of its beverages
provides extra protection. Diageo's outlook is also positive, with
net sales momentum expected to continue and high expectations over
the travel retail business considering that pandemic-related
restrictions will be lifted. Shares are up 0.25% at 3,655.0 pence.
(michael.susin@wsj.com)
Diageo's 1H Seems Like Recovery From Covid-19 Rather than
Gaining New Ground
0900 GMT - Liquor maker Diageo's 1H earnings shows that North
America until June was the only region that grew significantly
since the onset of Covid-19, which could be seen more as recovery
from the pandemic than breaking new ground, RBC Capital Markets
says. Diageo performed strongly in Latin America and the Caribbean,
beat expectations in Europe and Turkey, but missed sales growth
forecasts in North America and Asia Pacific regions, the Canadian
bank says. "These are excellent results, but do not alter our view
that Diageo's mid-term guidance was set in a fit of
over-exuberance", it adds. RBC has an underperform rating on the
stock and a price target of 3,100 pence.
(michael.susin@wsj.com)
Polymetal 4Q Production Was Strong, Inflation to Weigh in
2022
0845 GMT - Polymetal achieved strong fourth-quarter production
as the reported 467,000 gold-equivalent ounces was 11% ahead of the
market consensus, Jefferies says. This beat was primarily driven by
the Dukat operations as grades improved, the bank notes. However,
2022 guidance includes a 20% increase in cash costs to $850-$900 an
ounce compared with expectations of $718, Jefferies says. These
cost pressures include consumer prices in Russia and Kazakhstan
driving wages and salaries, commodity-driven inflation and bulk and
container sea freight rates. In addition, 2022 capital expenditure
has been revised $90 million higher. Shares in the precious-metals
miner fall 1.9%. (jaime.llinares@wsj.com)
EasyJet Seen as More Profitable Once Capacity Returns to
Pre-Pandemic Levels
0838 GMT - EasyJet's 1Q was in line with management's
expectations, despite the effect of the Omicron coronavirus variant
on the final month. The budget airline had increased capacity, a
reduced loss and more moderate cash burn, Liberum says. Bookings
have recovered and are reacting positively to the U.K. government's
recent relaxation over travel restrictions, with Easter bookings
being encouraging, the U.K. brokerage says. The airline has taken
advantage of the pandemic to improve its cost base, adding to its
slot portfolios at key congested airports which typically deliver
higher returns, Liberum says. "These changes suggest to us that
easyJet should be a more profitable group once capacity has
returned to pre-pandemic levels." Liberum rates at buy and has an
800 pence target price. (anthony.orunagoriainoff@dowjones.com)
Contact: London NewsPlus, Dow Jones Newswires; Write to Sarka
Halas at sarka.halas@wsj.com
(END) Dow Jones Newswires
January 27, 2022 04:58 ET (09:58 GMT)
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