FTSE 100 Falls After Weak Retail Sales Data; Tesco Loses
0805 GMT - The FTSE 100 index falls 0.4% to 7126.46 as investors
remain cautious after the U.S. Federal Reserve this week warned of
possible interest-rate increases in 2023 and data showed an
unexpected fall in U.K. retail sales. Retail sales fell by 1.4%
during May, sending sterling lower and potentially raising concerns
about a slowing economic recovery, particularly once furlough
payments are withdrawn. Grocer Tesco is among the biggest fallers,
down 1.8% after it said first-quarter retail sales edged up 1% on
year on a comparable basis and left the full-year outlook
unchanged. Oil stocks fall as Brent crude prices slip by 0.6%.
Precious metal miner Fresnillo is the biggest riser, up 2.2%.
Kerry Sells U.K., Irish Consumer Foods' Meats and Meals Business
to Pilgrim's Pride
Kerry Group PLC said late Thursday that it is selling its
consumer foods' meats and meals business in the U.K. and Ireland to
Pilgrim's Pride Corp. for 819 million euros ($975.1 million).
Inspecs Group Swung to a 2020 Pretax Loss
Inspecs Group PLC on Friday reported a swing to a pretax loss
for 2020 and said it is still suffering the effects of Covid-19
Inchcape Expects 2021 Profit to Be Significantly Ahead of
Inchcape PLC said Friday that it expects full-year pretax profit
to come in significantly ahead of the market consensus of 216
million pounds ($300.8 million).
Tesco 1Q Retail Sales Climbed, Backs FY 2022 Profit Outlook
Tesco PLC said Friday that first-quarter retail sales grew 1% on
year on a comparable basis and said that its profit outlook for the
full year remains unchanged.
DP Poland to Report Widened 2020 Ebitda Loss
DP Poland PLC said Friday that its 2020 Ebitda loss widened, and
that delivery sales rose 14% in the five months to May 31.
Westminster Group Raises GBP2.5 Mln in Premium-Priced Share
Westminster Group PLC said Friday that it has raised 2.5 million
pounds ($3.5 million) via a share placing and will use the money
towards its development.
Auction Technology Raised GBP244 Mln in Share Placing to Buy
Auction Technology Group PLC said Friday that it has raised
gross proceeds of around 244 million pounds ($339.8 million) via a
discounted share placing to partly fund the proposed acquisition of
LiveAuctioneers Worldwide Inc.
DV4 Properties Barwood Sells 1.6% Stake in Tritax Big Box
DV4 Properties Barwood Co. has sold its 1.6% stake in
London-listed commercial-property investor Tritax Big Box REIT PLC
for about 50.7 million pounds ($70.6 million), the coordinator of
the transaction said Friday.
VR Education Holdings Conditionally Raises GBP7.7 Mln via Share
VR Education Holdings PLC said Friday that it has conditionally
raised around 7.7 million pounds ($10.7 million) via a discounted
Telecom Plus FY 2021 Profit Fell, Expects FY 2022 Rise in
Telecom Plus PLC said Friday that pretax profit for fiscal 2021
fell on lower revenue but it expects adjusted earnings to increase
in the year ahead and to invest to capitalize on more favorable
B90 Loss Narrowed in 2020; Expects to Become Cash-Flow Positive
in 2H 2021
B90 Holdings PLC on Friday reported a narrowed loss for 2020 and
said it expects to become cash-flow positive in the second half of
Victoria Oil & Gas to Issue Up to $7.5 Mln Loan Notes
Victoria Oil & Gas PLC said Friday that it has entered into
a facility agreement with Meridian Capital Ltd. to raise gross
proceeds of up to $7.5 million through the issue of unsecured loan
Unite Group Closes Disposal of London Properties for GBP342
Unite Group PLC said Friday that has sold two London properties
to its London Student Accommodation joint venture with GIC, the
Government of Singapore's real estate portfolio, for 342 million
pounds ($476.3 million).
Braveheart Investment Group Swung to FY 2021 Pretax Profit
Braveheart Investment Group PLC said Friday that it swung to a
pretax profit for fiscal 2021 as total income rose, and that the
board will seek opportunities for enhancing shareholder value as
the year progresses.
European Metals to Start Trading in the US in July, Postpones
European Metals Holdings Ltd. said Friday that it expects to
start trading on the U.S. OTC Market in July.
Smartspace Software Wins Contract with Gategroup
Smartspace Software PLC said Friday that it has closed a new
contract with Gategroup Holding AG for the use of its SwipedOn
Visitor Management solution across the company's international
Sabien Technology Appoints Athan Fox Chief Scientific
Sabien Technology Group PLC said Friday that Athan Fox has been
appointed chief scientific officer effective immediately.
Lekoil Nigeria Chairwoman, CEO Resign From Lekoil Cayman
Lekoil Nigeria said Friday three of its directors and executives
have resigned from the board of Lekoil Cayman.
UK Retail Spending Recovery Is Expected to Lose Momentum This
0811 GMT - The current quarter's high level of retail spending
in the U.K. is unlikely to be sustained for the rest of the year,
Pantheon Macroeconomics' U.K. chief economist Samuel Tombs says.
Consumer spending is approaching its pre-pandemic level, and
households' real disposable income looks set to fall in 4Q as the
end of the furlough program reduces employment and inflation rises,
he says. U.K. retailers are also likely to take a smaller share of
overall spending compared to the last few months as consumers start
to spend more on services amid the reopening, Tombs says.
Tesco Could Be More Generous to Shareholders Going Forward
0811 GMT - Tesco's progress in reducing debt in recent years
means the U.K. grocer is now in a better position to be
progressively more generous to shareholders going forward, Shore
Capital says. "Management has tended to talk of favoring a share
buyback route as the prime mechanism to distribute surplus cash,
which makes sense at current stock valuation levels to our minds,
the commencement being held back due to understandable concern
about the scope for ongoing costly pandemic controls," Shore says.
If England's full reopening takes place in July, Tesco is more
likely to have scope for a share buyback following its half-year
results in October, Shore says. (firstname.lastname@example.org)
Boohoo Seen as Devaluated Company Despite ESG Progress
0753 GMT - Boohoo Group is very cheap despite the progress it
has made in terms of ESG, Liberum says. The fashion retailer's
evolution has surprised Liberum and it expects growth to remain
strong through the rest of the year. Liberum forecasts growth of
around 29%, ahead of Boohoo's guidance of 25%. "Our conclusion is
that the shares still appear to have a large ESG discount
built-in," Liberum adds, while it raises its recommendation on the
stock to buy from hold. Liberum has a target price of 380 pence a
share. Shares are up 2.30 pence, or 0.7%, at 334.00 pence.
Tesco Bonds Could Appreciate in Value
0750 GMT - Tesco's bonds could appreciate in value as the U.K.'s
retailer bond spreads have scope for some tightening, says ING.
Tesco's first-quarter retail sales grew on year on a comparable
basis and it reported "a promising trading statement," despite a
difficult comparison base due to the stockpiling related to the
pandemic last year, says ING's Alyssa Gammoudy. The company
reiterated the full year profit guidance. "We like Tesco
fundamentally and see some tightening potential of its credit
curve," she says. (email@example.com)
Pound Falls After Retail Sales, Seen Vulnerable to EU Trade
0709 GMT - The pound falls, hitting a six-week low of 1.3855
against the dollar after U.K. data showed retail sales fell by 1.4%
during May, raising concerns about a slowing economic recovery.
This was below expectations in a Wall Street Journal poll for a
rise of 1.6%, as demand slowed following an initial rush to buy
goods the previous month after the economy reopened. The currency
is also vulnerable to trade tensions between the U.K. and the EU,
with the former threatening to unilaterally extend a grace period
for processed meat exports to Northern Ireland, ING says. The next
few weeks "could be a vulnerable period" for GBP/USD, which risks
falling to 1.3800, ING says. EUR/GBP rises 0.4% to 0.8587.
Tesco's Solid 1Q Bodes Well for Rest of Year
0659 GMT - Tesco has delivered a solid first-quarter update, as
its numbers and comments about a strong start to the year suggest
its guidance could be too conservative, Citi says. The FTSE 100
grocer beat expectations in the U.K., thanks to strong
contributions from general merchandise and clothing, and from
online sales, Citi says. Tesco's guidance, unsurprisingly, remains
unchanged, and the company expects retail operating profit for
fiscal 2022 to recover to a level similar to that of fiscal 2020,
the bank says. "Whilst we expect consensus forecasts to remain
broadly unchanged, we continue to view risk to be to the upside,"
Citi analyst Nick Coulter says. (firstname.lastname@example.org)
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(END) Dow Jones Newswires
June 18, 2021 04:41 ET (08:41 GMT)
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