The FTSE 100 closed up 0.2% on Monday, but still lagged behind most other major European markets. A good performance by BP PLC and Royal Dutch Shell PLC helped support the index, while energy prices continued to climb higher, with Brent crude oil now close to $80 a barrel, Michael Hewson at CMC Markets said. "A rise in bond yields appears to be tempering upside progress in some parts over concerns about a more persistent inflationary environment, although at current levels they are still deeply negative in real terms," Mr Hewson said. Higher bond yields helped lift U.K. financial stocks, with banks scoring some gains, though shares retreated toward the end of the day.

 
Companies News: 

Cornerstone FS 1H Pretax Loss Widened; Confident on Higher FY 2021 Revenue

Cornerstone FS PLC reported on Monday a significantly widened pretax loss for the first half of 2021 but said that it expects to post revenue growth for the full year on higher trading volumes in the second half.

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Journeo 1H Pretax Profit Rose; Supply-Chain Issues Could Hurt 2022 Profit

Shares in Journeo PLC fell 13% in early trade Monday after the company said that supply-chain issues could hurt next year's profit, as it reported a higher pretax profit for the first half of 2021.

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After Early Investors Flee SPAC Deals, Day Traders Rush In

Day traders are targeting some companies that recently closed SPAC mergers, reinvigorating some of the meme-stock excitement that helped make such deals popular early in the year.

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London Security 1H Pretax Profit Rose as Coronavirus Disruption Subsides

London Security PLC said Monday that first-half pretax profit and revenue rose as operations largely returned to normal after the disruption of the coronavirus pandemic.

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Renishaw Delays FY 2021 Results; Confirms Figures in Line With Views

Renishaw PLC said Monday that its fiscal 2021 results have been delayed by three weeks to Oct. 21, but that they are expected to be in line with recently updated expectations.

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Sutton Harbour Group Says Summer Performance Benefited From Strong Visitor Numbers

Sutton Harbour Group PLC said Monday that its performance throughout summer benefited from the strong recovery in visitor numbers.

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Gores Guggenheim, Exxon, Carnival, PG&E: What to Watch When the Stock Market Opens Today

U.S. stock futures were mixed, with contracts on the Dow Jones Industrial Average up, the Nasdaq-100 down and the S&P 500 flat. Here's what we're watching as Monday's trading gets under way.

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Rolls-Royce Holdings Signs Deal to Sell ITP Aero for EUR1.7 Bln

Rolls-Royce Holdings PLC said Monday that it is selling ITP Aero for 1.7 billion euros ($1.99 billion) to a consortium lead by Bain Capital Private Equity, as part of its disposal program.

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Location Sciences Group 1H Pretax Loss Widened

Location Sciences Group PLC said Monday that its pretax loss widened for the first half as revenue decreased, and that the board has taken steps to reduce operating costs further.

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Bion PLC Shares Fall on 2020 Accounts Delay, Upcoming Share Suspension

Shares of Bion PLC fell 10% on Monday after the company said that its shares will be suspended from trading Friday, as it won't be able to file its 2020 accounts by the Sept. 30 deadline.

 
Market Talk: 

Centamin Shares Remain Cheap But Have Few Catalysts, Peel Hunt Says

1228 GMT - Centamin's capital markets day and half-year report were relatively eventless, although they reflected consistent operations and good financial guidance, Peel Hunt says. Shares in the gold miner have traded near its 2020 low of 89 pence, but the CMD didn't provide any near-term catalysts for the stock, the brokerage says. Peel Hunt reaffirms a buy rating on Centamin and maintains the 150 pence target price, but sees few catalysts to get investors back into the stock. "The higher-cost period of mine redesign is not yet over, and exploration costs are on the rise," Peel Hunt notes.

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Energy Crunch May Revive Value of European Gas Infrastructure

1220 GMT - As the pace of decarbonization has accelerated in Europe, there has been a major shift in strategic appetite against midstream gas infrastructure over the last two years, and current owners are heading toward or queueing at the exit, Timera Energy says. However, the current market environment is illustrating Europe's strong dependency on gas supply infrastructure and flexibility, and this is a ripe for a major shift in asset ownership, the firm says. New owners need greater risk tolerance and an understanding of the risks and potential upside of decarbonization trends, Timera says. "That points toward private equity and alternative investors buying assets from utilities, infrastructure and pension funds," it says.

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Hikma Pharmaceuticals' Acquisition of Custopharm Strengthens Its US Business

1109 GMT - Hikma Pharmaceuticals' deal to acquire Custopharm for an initial $375 million complements and strengthens its U.S. injectables business profitably, Jefferies analysts say, seeing the transaction as favorable. The company is adding 13 approved products and thus increasing its offering in the U.S. by 10%, the U.S. bank says. Jefferies has a buy rating on the stock and a 2,950-pence target price. Shares are up 1.1% at 2,411 pence.

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Pernod, Diageo Seen With Long-Term Boon From Refreshing Spirits Profile

1108 GMT - Makers of spirits have a long-term advantage in the wider drinks sphere thanks to demographic demand trends and attractive top lines, analysts at Jefferies say, reiterating buy ratings on French group Pernod Ricard, the maker of Absolut vodka and Jameson whiskey, as well as U.K. peer Diageo. Spirits have a cooler image and more potential for premiumization than beer or wine, and are more popular among younger drinkers, Jefferies says. As well as these top-line tailwinds, spirits' higher gross margins render them more resilient to cost pressures. "Pricing power varies across categories, but mix is a further lever," the investment bank says, keeping a EUR225 target price on Pernod, and one of GBP42 for Diageo.

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Polestar to Go Public Through Merger With Gores Guggenheim SPAC

0657 ET - Swedish electric-vehicle maker Polestar has agreed to go public through a combination with special-purpose acquisition company Gores Guggenheim, a deal that would give the combined company an enterprise value of about $20B. WSJ on Sunday reported that the companies were nearing a deal. Polestar CEO Thomas Ingenlath says the company is seeking to expand to 30 markets by 2023 from its current 14 active markets in three continents. Polestar is owned by Chinese car maker Zhejiang Geely Holding, focuses on high-performance electric cars, positioning itself as a rival to Tesla. and Lucid Group.

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Glencore's Sticking to Coal Looks to Be Paying off

1051 GMT - The annualized Ebitda run rate on spot coal prices for Glencore's coal business has increased to $9.1 billion today from $1.3 billion in August 2020, as prices for the combustible tripled during the period, Jefferies says. On a mark-to-market basis, the company's annualized Ebitda has increased to $24.3 billion from $21.8 billion since early August 2021, the bank estimates. Conversely, Ebitda projections for other major miners fell materially over this period due to declines in iron ore prices, Jefferies says. "We think consensus upgrades should be coming for Glencore." Rio Tinto, Anglo American, BHP, South32 and Vale have divested coal assets to improve ESG grades, whilst Glencore hasn't.

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United Utilities Drops; Finance Costs, Debt to Rise

1042 GMT - Shares in United Utilities Group fall 1% after the U.K. water and waste utility said the post-lockdown recovery had boosted demand, but also forecast higher 1H finance costs and net debt. RBC Capital Markets describes the trading update as neutral overall, though United Utilities (UU) has made a solid start to the latest regulatory period, the brokerage says. "However, we await further clarity on whether UU can bridge the [return on regulatory equity] gap to domestic peers and, as such, we maintain a sector-perform recommendation," RBC analyst Alexander Wheeler says.

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Rolls-Royce's B-52 Engine Replacement Contract Looks Like a Good Win

0935 GMT - Rolls-Royce has been chosen for the B-52 engine replacement program by the U.S. Department of Defense and analysts at Jefferies consider this a good win for the engineering company. The DoD reports on its website that the contract is worth $500 million with a six-year base period and a potential total of $2.6 billion if all options are exercised, and this will highlight the company's ability to execute on the numerous opportunities in their Defense business, the U.S. bank says. "We suspect there will be little change to consensus forecasts on the back of this contract announcement, but it provides additional comfort to longer-term consensus forecasts and is a positive for sentiment," the bank says. Jefferies rates the stock buy.

 

Contact: London NewsPlus, Dow Jones Newswires; Write to Sarka Halas at sarka.halas@wsj.com

 

(END) Dow Jones Newswires

September 27, 2021 12:09 ET (16:09 GMT)

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