The FTSE 100 on Wednesday closed up for the second day in a row
this week, managing to regain the 7,000-point level during the
session. The index was bolstered by airlines and engineering
stocks, as well as an 8% gain for retailer Next following a strong
update, said Chris Beauchamp, Chief Market Analyst at IG. "'Global
rebound' certainly appears to be the theme among the leaders on the
FTSE 100 today, as the markets outlook swings back to optimism from
Monday's pessimism," Beauchamp added.
Company News:
Gresham Technologies 1H Revenue Rose; Says FY Market
Expectations Are On Track
Gresham Technologies PLC said on Wednesday that first-half
revenue rose 19%, and that it was on track to achieve full-year
market expectations.
---
Tricorn Shares Drop 25% After It Issues Going-Concern Warnings
Over Funding
Tricorn Group PLC shares fell sharply Wednesday after it issued
warnings over its ability to continue as a going concern, and said
its current funding facilities wouldn't be sufficient to return the
company to profitability.
---
Bakkavor 2Q Sales Rose as Covid-19 Restrictions Eased
Bakkavor Group PLC said Wednesday that it saw strong sales
growth in the second quarter as coronavirus restrictions were
eased, with reported revenue rising on year.
---
Barclays Names Colizzi Head of European Investment Bank --
Financial News
Of Financial News
---
H&T Group Experiencing Good Momentum Since April
H&T Group PLC said Wednesday that it has experienced good
momentum since coronavirus-related trading restrictions were
relaxed in April.
---
Mulberry Swung to FY 2021 Profit; Current Growth Boosted by UK,
Asia Performance -- Update
Mulberry Group PLC reported Wednesday a swing to pretax profit
for fiscal 2021 on lower costs and said that its year-to-date
performance has been boosted by its U.K. operations and continuing
growth in Asia.
---
VTEX IPO of 19 Million Shares Priced at $19 a Share
VTEX said Wednesday that its initial public offering of 19
million shares has priced at $19 a share.
---
Hurricane Energy Shareholder Crystal Amber Fund Increases Stake;
Shares Rise
Shares in Hurricane Energy PLC rose on Wednesday after
shareholder Crystal Amber Fund Ltd. increased its stake in the
oil-and-gas company.
---
Chipotle, AMC, Carnival: What to Watch When the Stock Market
Opens Today
Stock futures edged higher Wednesday, suggesting major indexes
will extend their rebound following a volatile stretch of trading
sparked by worries about the spread of coronavirus. Here's what
we're watching ahead of the opening bell. Read our full markets
wrap here.
---
Norcros Remuneration Report Approved With Minority Opposition at
AGM
Norcros PLC said Wednesday that a resolution to approve its
directors' remuneration report for fiscal 2021 was approved with
significant minority opposition at its annual general meeting.
Market Talk:
UK Public Borrowing Expected to Reach GBP210B in FY2021-22
1235 GMT - U.K. public borrowing is likely to total between
GBP200 billion and GBP210 billion in fiscal year 2021-22, or around
10% of GDP, as the pandemic weighs on government spending, says
Pantheon Macroeconomics. "We think that the government will need to
hike corporation tax and to increase the effective income tax rate
by freezing existing thresholds, as planned in March, if it wants
to ensure that public borrowing declines to 3% of GDP in the
mid-2020s," says chief U.K. economists Samuel Tombs. After a record
jump in debt servicing costs, a looming further rise in the retail
price index--to which index-linked government bonds are
pegged--will boost interest payments towards the end of this fiscal
year, while extra healthcare expenditure will likely be needed in
the winter to combat Covid-19, he says.
---
UK Local Authorities Likely to Need More Support
1159 GMT - Most U.K. local authorities are likely to remain
under significant financial pressures brought about by the
pandemic, says Moody's Investors Service in a report. Analyst Zoe
Jankel expects reserve buffers used to manage budget volatility,
and exposure to commercial revenues, will increasingly
differentiate credit profiles. Citing estimates by the National
Audit Office, she says the pandemic triggered a total funding gap
of GBP9.7 billion in fiscal year 2021, which were mostly covered by
transfers from the U.K. government. However, distribution has been
unequal, with some local authorities continuing to report major
funding shortfalls.
---
Compass, Sodexo Look Set to Benefit From Revenue Boost
1156 GMT - Shares in Compass Group rise 5% to 1483 pence after
Jefferies upgraded the contract caterer to buy from hold and raised
its price target to 1660p from 1440p. The brokerage also raises its
recommendation on Sodexo to buy from under-perform and its target
to EUR85 from EUR70, boosting the French caterer's shares by 4% to
EUR73.04. Re-opening uncertainty has propelled caterer shares back
to post-Covid relative lows, Jefferies says. "However, balance
sheets were de-risked last year and first-time outsourcing has
emerged more rapidly than expected, so industry revenue is likely
to be bigger at next peak," Jefferies analysts say. "With
risk/reward now more favorable, we upgrade Compass and Sodexo."
---
Anglo American Shares Should Recover Before Year End
1145 GMT - Anglo American shares should recover before year-end
and investors should buy them now, Jefferies says. The recovery in
diamond demand and prices bodes well for the miner, and this is
supported by strength in iron ore, copper and platinum group
metals, the U.S. bank says. Importantly, Anglo American seems to be
operating well at most assets, although capital and operational
expenditure inflation will be a factor for all miners going
forward, Jefferies adds. Shares in Anglo American have risen since
its trading update on Tuesday but still are down 6% over the last
three months.
---
UK Economic Recovery Looks Fragile, says RBC CM
1121 GMT - The lifting of the remaining Covid-19 restrictions in
the U.K. earlier this week is unlikely to significantly boost
economic growth further, says RBC Capital Markets. "The final step
of the U.K.'s reopening plan which was implemented on Monday was
probably the least significant of the four steps in terms of
economic activity," analysts at the bank say. Entering the summer
months, the more up-to-date data suggest that after the initial
surge in activity in response to the reopening "we are experiencing
something of a 'great plateauing'," they say. With Covid-19
inflections on the rise again and the end of some fiscal support
measures, the outlook for the beginning of the third quarter is
uncertain.
---
UK Faces Fiscal Squeeze in Coming Years
1119 GMT - The U.K. faces a fiscal squeeze in coming years, says
Capital Economics. While the fiscal deficit is expected to decrease
as the economy recovers from the pandemic slump, the London-based
consultancy says it suspects the government "will 'bank' any
improvement in the deficit rather than scale back the planned tax
hikes and spending cuts set to hit the economy." And given Treasury
chief Rishi Sunak is reportedly eyeing a 1 percentage point rise in
National Insurance Contributions to pay for reforms to social care,
any increases in expenditure may "be fully funded by spending cuts
elsewhere/tax hikes," says senior U.K. economist Ruth Gregory. "So
there is still likely to be a fiscal squeeze over the coming
years," she says.
---
Close Bros Might Be Running Out of Share Drivers
1114 GMT - Shares in Close Brothers Group rise 1.4% after the
merchant-banking group said its loan book increased 9.6% in the 11
months to June 30. The pre-close update confirmed continued strong
trading, Panmure Gordon says. "However, for the first time in a
while, we find no reason to make significant changes to our
estimates," Panmure analysts say. "To us, the company remains a
well-managed business. However, the business model in its key
division, banking, is no longer unique and a key driver of its loan
growth this year has been the government Coronavirus Business
Interruption Loan program, which has limited volumes still in
pipeline."
---
Inflation Uptick Drives U.K. Debt Servicing Costs Higher
1106 GMT - U.K. debt servicing costs jumped by GBP8.7 billion in
June as inflation rose sharply in recent months, increasing the
country's total expenditure, says Capital Economics. "A rise in
Retail Price Index inflation (to which index linked gilts are
pegged) from 1.5% in March to 2.9% in April meant that debt service
costs rose by GBP8.7bn [in June]," the highest monthly payment
since the series began in 1997, says senior U.K. economist Ruth
Gregory. But while debt servicing costs will stay higher than the
Office for Budget Responsibility expects over next few years, the
public finances should reap the benefits of a fuller recovery in
gross domestic product, meaning the deficit will still fall faster,
she says.
Contact: London NewsPlus, Dow Jones Newswires;
+44-20-7842-931
(END) Dow Jones Newswires
July 21, 2021 12:00 ET (16:00 GMT)
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