European Stocks Mostly Drop as Markets Stay Wary
0913 GMT - European stocks mostly edge lower as investors stay
cautious following comments from the U.S. Federal Reserve Tuesday.
The Stoxx Europe 600 is down 0.1% and the DAX and CAC 40 drop 0.3%,
though the FTSE ticks up 0.2%. The price of a barrel of Brent crude
increases 1% to $74.79 and base and precious metals all rise,
boosting oil and mining stocks. The Dow Jones closed 0.2% higher.
"The Fed chairman managed to reassure the market about the
transitory effect of rising prices in the U.S. economy following
last week's hawkish shift," says ActivTrades analyst Pierre Veyret.
"Investors are increasingly accepting the longer-term outlook of
tightening monetary policies." (email@example.com)
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.
Berkeley Group FY 2021 Profit Rose, Proposes Additional
Berkeley Group Holdings PLC said Wednesday that profit and
revenue rose for fiscal 2021 and proposed an additional shareholder
return of surplus cash.
Anexo Group Gets GBP174 Mln Cash Offer Approach from DBAY
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.
Joules FY 2021 Revenue Rose, Adjusted Profit to Exceed Market
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
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.
Vertu Motors Upgrades Guidance Given Strength of Used-Car
Vertu Motors PLC said Wednesday that it expects full-year
adjusted earnings to exceed expectations amid an exceptional
used-car market environment.
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.
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.
Amala Foods to Extend Loan; Sees Performance Indicators on
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.
Harbour Energy Sees 2021 Production at Lower End of Guidance
Harbour Energy PLC said Wednesday that it expects full-year
production at the lower end of its guidance range, reflecting
maintenance programs and unplanned outages.
Capital Ltd. Founder Brian Rudd to Sell 3 Mln Shares
Capital Ltd. said Wednesday that founder and Executive Director
Brian Rudd is selling three million shares of the company via a
TouchStar Says Performance to Date Has Been Better Than
TouchStar PLC said Wednesday that its performance in the year to
date has exceeded its expectations, thanks to rising revenue, an
increase in margins and tight management of costs.
Directa Plus Sees Revenue Growth Persist Through 1H
Directa Plus PLC said Wednesday that a strong revenue rise in
early 2021 has persisted throughout the first half, and it is
trading in line with market expectations.
Plaza Centers to Halt London, Tel Aviv Listings; Shares Drop
Shares in Plaza Centers NV plunged on Wednesday morning after
the company said that its London and Tel Aviv listings will be
halted from June 25.
Marlowe Swings to FY 2021 Pretax Loss on Higher Costs
Marlowe PLC said Wednesday that it swung to a pretax loss for
fiscal 2021 after booking higher costs, but that it has had a
strong start to fiscal 2022.
Workspace Appoints Paul Hewlett as Executive Director
Workspace Group PLC said Wednesday that it has appointed Paul
Hewlett as executive director of strategy and corporate
Manolete Partners Profit Fell in FY 2021; Appoints New
Manolete Partners PLC on Wednesday reported a drop in profit for
fiscal 2021 and appointed Howard Leigh as chairman designate.
Synthomer Appoints Michael Willome as CEO
Synthomer PLC said Wednesday that it has appointed Michael
Willome as its next chief executive officer, succeeding Calum
MacLean with effect from Nov. 1.
Investment Company Literacy Capital PLC Plans London Float
Investment company Literacy Capital PLC said Wednesday that it
plans to float on the main market of the London Stock Exchange,
with admission expected to take place on Friday.
Transglobe Energy 2Q Production Rose on Quarter
Transglobe Energy Corp. said Wednesday that second-quarter
production rose on quarter due to well-optimization activities in
Egypt, full oil production from the lower Bahariya reservoir,
Egypt, and a return to production in Canada.
Dignity Says 21-Week Underlying Profit Fell on Year
Dignity PLC said Wednesday that underlying profit for the 21
weeks ended May 21 was slightly lower than in the same period of
the previous year.
Market Seen Overlooking Strengths of UK Networking,
0936 GMT - Spirent Communications, dotDigital Group and
Centralnic Group hold top positions in niche and highly technical
markets, but are often overlooked by the market, Berenberg says.
Test, assurance, and analytics services provider Spirent has become
much less cyclical over the 2015-20 period, marketing-automation
software company dotDigital is set to benefit from continuing
tailwinds and internet domain-name supplier Centralnic can
accelerate revenue growth thanks to its online marketing
businesses, the brokerage says. "We think all three stocks are
often overlooked because they are viewed as cyclical, too expensive
or too small," Berenberg says, starting coverage on all three
stocks with buy recommendations. (firstname.lastname@example.org)
Anglo American Cycle 5 Sales Exceeded Expectations
0918 GMT - Anglo American shares rise 1.6% after reporting De
Beers rough diamond sales for the fifth cycle of the year. The
diamond company achieved sales of $470 million between June 7-June
22, up from Citi's expectations of $450 million. "The increase
reflects improving market fundamentals and restocking-led demand,"
the bank says. Cumulative sales of $2.5 billion in the first five
cycles of 2021 is more than double that of the first half of 2020,
and is within the $2.5 billion-$3.0 billion range seen in 2017-19
for the period, Citi notes. (email@example.com)
UK Business Activity Growth Keeps Strong Momentum in June
0853 GMT - The U.K.'s private sector continued to expand at a
robust pace in June as demand increased amid the continued
reopening of the economy, according to data from IHS Markit. The
preliminary composite PMI stood at 61.7 in June down from May's
record high of 62.9. Both manufacturing and service sector activity
growth eased somewhat compared with the prior month, but remained
at strong levels. "There are some signs that the rate of expansion
appears to have peaked, as both output and new order growth cooled
slightly from May's record performances, but full order books and a
further loosening of virus-fighting restrictions should
nevertheless help ensure growth remains strong as we head through
the summer," Chris Williamson, chief business economist at IHS
Markit, says. (firstname.lastname@example.org)
Liontrust Management Fee Outperformance Looks Set to
0842 GMT - Liontrust Asset Management's management fee profits
came in above expectations on lower costs, with an EBIT margin of
41% for fiscal 2021, Numis says. While this result was artificially
skewed upwards, the U.K. brokerage expects higher management fee
operating margin to continue. "We nonetheless think that some of
the higher-than-expected management fee operating margin will
persist versus our prior expectation, likely in the very high 30s
percentage versus a high 30s previously, reflective of operational
efficiency," it says. Numis has an add rating on the stock with a
1,900 pence target price.
Joules's Future Looks Bright as It Continues to Evolve
0829 GMT - British clothing-and-homeware company Joules has a
very positive outlook as it continues to embed its omnichannel
model, diversifying and growing its revenue streams and evolving
into a true lifestyle brand, Liberum says. Joules appears
particularly well-placed in the short term given its family focus
and lifestyle locations in light of the "staycation" trend playing
out this summer, the brokerage says. Long-term, the company's
position has been encouragingly strengthened over the last few
years, driven through its enhanced digital platform and
capabilities and its evolution into a premium brand supported by
strong growth in its online marketplace and recent acquisitions,
Liberum says. Liberum reiterates its buy rating and target price of
400.0 pence on the stock. (email@example.com)
BOE Could Acknowledge Inflation Risks
0816 GMT - The Bank of England is fully expected to leave policy
unchanged when it announces a decision Thursday, though bank
officials could admit that consumer price data have overshot
estimates, says Jefferies. "The Monetary Policy Committee could
well acknowledge the fact that the most recent inflation prints had
surpassed expectations, something that will be taken into account
when the new economic forecasts are published in August," it says.
Official U.K. data indicate that the economy is on track to record
strong growth over the summer months, despite the recently
announced delay in the lifting of social restriction measures, it
Vertu Motors Margins Benefit From Tight Used-Car Market
0816 GMT - Used car prices are rising in the U.K., Liberum says.
According to cap hpi, an industry consultancy, prices rose 6.7% in
May, the highest increase since April 2009, the brokerage notes.
Vertu Motors, which this morning upgraded profit guidance for the
fiscal year by 15%, is one of the companies set to benefit from
higher used car prices. "Demand for used cars to date has been
strong with supply also under pressure and this has led to used car
prices rising and higher gross profit per unit," Liberum says.
Shares in Vertu rise 2.0% to 46.8 pence. Liberum has a buy rating
on the car retailer with a 80.0 pence target price.
Berkeley's London Exposure Seems to Hold Back Shares
0812 GMT - House builder Berkeley's heavy exposure to London has
been a blessing and a curse, although the company remains convinced
of recovery in the capital, Interactive Investor says. "While the
share price has added 5% over the last year, this is a shadow of
the rally which many other housebuilders have enjoyed given the
generally supportive environment, and compares with a hike of 12%
over the period for the wider FTSE 100," the investment platform
says. That said, the market consensus of a hold rating on the stock
could be subject to upgrades given Berkeley's upbeat outlook,
particularly over the longer-term, as gross margins ready for
strong improvements alongside improving shareholder returns,
Interactive Investor says. Shares fall 0.7% to 4,609 pence.
Berkeley's Back-End Loaded Pipeline Won't Change Short-Term
0733 GMT - House builder Berkeley's fiscal 2021 results were
reassuring but don't expect significant changes to consensus on the
back of the update, Citi analyst Ami Galla says. Berkeley's
management has noted the bulk of the delivery pipeline is back-end
loaded, so pretax profit for fiscal 2022 and fiscal 2023 is likely
to be limited to levels similar to the latest year's, the bank
says. Berkeley has 23 of its 29 complex sites in production and
expects GBP700 million of net investments over the next three
years, allowing for a 50% increase in delivery by the end of 2025
compared with 2019, Citi says. Citi retains its neutral rating on
the stock and target price of 4,601 pence. Shares are down 2.5% at
4,523 pence. (firstname.lastname@example.org)
Berkeley's Guidance Needs More Detail But Is Generally
0719 GMT - House builder Berkeley's pretax profit of GBP518.1
million came in slightly ahead of market consensus, but its
guidance of "similar" figures for the next two years needs more
detail, Jefferies says. That said, the consensus for Berkeley is
rising in fiscal 2023 and the company has reiterated its six-year
pretax profit target to fiscal 2025 of GBP3 billion, the U.S. bank
says. "Cash due on forward sales of GBP1.7 billion is flat on the
last update, although commentary that 'enquiry levels in London are
now ahead of pre-pandemic levels' will likely reassure," Jefferies
says, retaining its buy rating and 6,059 pence target price. Shares
are down 0.3% at 4,624 pence. (email@example.com)
Shrinkflation: Coming to a Store Near You?
0707 GMT - Consumers might end up paying the same for less in a
post-pandemic world, as retailers unwilling to cause sticker shock
choose instead to raise prices more discreetly, says DBS chief
economist Taimur Baig. He cites as an example the decision by ice
cream maker Tillamook to reduce its carton size to 48 oz from 56 oz
on sharply higher costs of berries and other ingredients.
Shrinkflation tends to happen when there is a high degree of
competition in the market and consumer-goods makers lack pricing
power amid low inflation, Baig says. The phenomenon isn't new, but
it could become more common as raw-material costs rise globally.
Consumers will probably witness shrinkflation not just among small
retailers in developing countries but in big-box retailers in
developed markets, he says. (firstname.lastname@example.org)
Contact: London NewsPlus, Dow Jones Newswires;
(END) Dow Jones Newswires
June 23, 2021 06:07 ET (10:07 GMT)
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