London Stocks Seen Opening Little Changed, PMI Data in Focus

0648 GMT - The FTSE 100 index is expected to open little changed, up just 0.5 points, according to IG, having closed Tuesday at 7090.01. U.K. stocks look set to underperform their European counterparts, with investors nervous ahead of a Bank of England meeting Thursday. After the U.S. Federal Reserve last week unexpectedly forecast rate rises in 2023, there are concerns that the BOE may similarly warn of possible future rate rises and scaling back of quantitative easing. Investors will therefore watch flash U.K. purchasing managers' survey data at 0830 GMT closely. House builder Berkeley will be watched after it said profit and revenue rose for fiscal 2021 and proposed an additional shareholder return. (jessica.fleetham@wsj.com)

 
Companies News: 

Old Mutual Year-To-Date Profitability Rises on Higher Funds Under Management

Old Mutual Ltd. said Wednesday that its profitability improved in the year to date as a result of higher funds under management.

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Anglo American: De Beers Diamond Sales Rise in Fifth Cycle

Anglo American PLC on Wednesday reported De Beers rough diamond sales of $470 million for the fifth cycle of 2021.

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Berkeley Group FY 2021 Profit Rose, Proposes Additional Shareholder Return

Berkeley Group Holdings PLC said Wednesday that profit and revenue rose for fiscal 2021 and proposed an additional shareholder return of surplus cash.

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Anexo Group Gets GBP174 Mln Cash Offer Approach from DBAY Advisors

Anexo Group PLC said Wednesday that it has received a 174 million pound ($242.7 million) possible cash offer approach from DBAY Advisors Ltd., and has granted it due diligence access.

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Joules FY 2021 Revenue Rose, Adjusted Profit to Exceed Market Expectations

Joules Group PLC said Wednesday that its fiscal 2021 revenue rose 4% despite the coronavirus pandemic and adjusted profit before taxes and exceptional items is expected to slightly exceed market expectations.

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1Spatial Says Order Levels Rose in FY 2022 to Date

1Spatial PLC said Wednesday that order levels for new sales in the fiscal 2022 to date are higher than in the prior year, and that it is confident in a successful outcome to the year.

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Vertu Motors Upgrades Guidance Given Strength of Used-Car Market

Vertu Motors PLC said Wednesday that it expects full-year adjusted earnings to exceed expectations amid an exceptional used-car market environment.

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Liontrust FY 2021 Pretax Profit Rose

Liontrust Asset Management PLC said Wednesday that fiscal 2021 pretax profit and revenue rose, and that it has a strong momentum and is well positioned to continue growing.

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Vector Capital Raises GBP1.5 Mln to Increase Lending Power

Vector Capital PLC said Wednesday that it has raised 1.5 million pounds ($2.1 million) via a share placing which will increase the company's lending power to meet demand for the group's loans.

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Amala Foods to Extend Loan; Sees Performance Indicators on Target

Amala Foods PLC said Wednesday that it has agreed to extend a loan to the first quarter of 2022 and that performance indicators remain on target, as the company nears completion of research and development of several plant-based products.

 
Market Talk: 

UK Services PMI Expected to Rise While Manufacturing PMI Is Seen Falling

0651 GMT - The U.K. services purchasing managers index for June is likely to be broadly unchanged at 63.0, while the manufacturing PMI likely dropped to around 62.0 after posting a record high of 65.6 in May, UniCredit forecasts. Economists polled by The Wall Street Journal project the U.K. services PMI coming in at 62.0 and the manufacturing PMI at 64.0. "The services sector has been boosted by reopening, but the U.K. government's four-week delay in lifting restrictions on social contact will likely delay a further rise in the services PMI," economists at the bank say. Although the manufacturing PMI increased strongly in May, some easing in June seems likely as demand shifts toward services and supply-chain disruptions ease, UniCredit says. U.K. PMIs will be published at 0830 GMT. (maria.martinez@wsj.com)

BHP's Low-Cost Mines, Strong Cash Flow Look Underappreciated

0239 GMT - It's catchup time for BHP's shares, says Morgan Stanley, as the bank upgrades the miner's London-listed stock to overweight from equal weight and its price target to GBP23.60 from GBP21.10. That brings its view on BHP's U.K. shares in line with its outlook for BHP's Australian stock. The "merits of BHP's low-cost assets, strong free cash-flow generation, oil-and-gas exposure, and capital-returns prospects remain underappreciated," MS says. BHP's London shares are implying a long-term iron-ore price of $71/ton versus spot at $207/ton, it adds. Plus, MS reckons a partnership on BHP's Jansen potash project, which is still being evaluated, could reduce project risk, and ongoing work to jettison its thermal-coal assets could materially improve its ESG credentials. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)

Shell Says Can Meet Court Ruling on Own Emissions

1713 GMT - Royal Dutch Shell believes it can "see a pathway" to meeting the Dutch court ruling to reduce the company's own emissions by 45% by 2030, but reducing the emissions of its customers by the same scale is much harder, its CEO says. Speaking at the Qatar Economic Forum, Ben van Beurden says reducing those emissions should not mean getting rid of customers, but instead working with customers to change their energy needs, although governments have a greater influence over this because Shell can't drive a shift from petrol engines to electric vehicles, for instance. "I'm also calling out governments to also step up to the plate because this is not a challenge for one company, not even for one sector, this is a systems challenge that we all have to embrace." (sarah.mcfarlane@wsj.com)

 

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(END) Dow Jones Newswires

June 23, 2021 03:08 ET (07:08 GMT)

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