Gilt Yields Hit Fresh Highs as Investors Bet on November Rate
U.K. short-term borrowing costs climb to fresh highs Monday as
investors bet the Bank of England will raise its base interest rate
as soon as November. The yield on the two-year benchmark gilt,
which is more sensitive to changes in interest-rate expectations,
hits 0.749%, the highest level since May 2019, according to
Tradeweb. The wagers are being fueled by comments from BOE Governor
Andrew Bailey over the weekend saying that the central bank will
"have to act" to contain inflation. Markets are now pricing in a
65% chance that the BOE will raise the bank rate from a historic
low of 0.1% in November after hawkish comments from Governor
Bailey, says IG's Joshua Mahony.
Tristel FY 2021 Pretax Profit Fell on Lower Revenue
Tristel PLC on Monday reported a fall in pretax profit for the
fiscal 2021 as the Covid-19 pandemic hit sales growth, but said it
expects a better performance in the year ahead.
Severstal PAO Third-Quarter Profit and Revenue Rose
Severstal PAO said Monday that its net profit and revenue for
the third quarter of 2021 rose significantly on the back of higher
sales and prices.
Pod Point to Hold GBP120 Mln IPO in London
U.K. electric-vehicle-charger provider Pod Point said Monday
that it intends to hold an initial public offering on the London
Stock Exchange next month, in which it expects to raise 120 million
pounds ($165.0 million).
Future Metals to Float in London on Thursday
Future Metals NL said Monday that it expects to float in London
Bioventix FY 2021 Pretax Profit Fell Slightly
Bioventix PLC on Monday reported a fall in pretax profit for
fiscal 2021 on currency woes, but said the business should revert
to an established trajectory once the Covid-19 pandemic ebbs.
Scholium Chairman to Retire in November; David Harland Named
Scholium Group PLC said Monday that Chairman Jasper Allen will
retire from the company on Nov. 8, and David Harland has been
appointed as successor.
7Digital Group Increases Credit Line; Shares Rise
Shares of 7Digital Group PLC rose 11% on Monday after the
company said it has doubled its revolving credit line with Investec
Bank PLC, providing it with the cash needed while the company moves
back into profit.
Life Settlements Assets Declares $2.5 Mln Special Dividend
Life Settlements Assets PLC said Monday that it has declared a
special dividend of $2.5 million, or 5.017 cents a share.
Zillow, State Street, Valneva, Coinbase: What to Watch When the
Stock Market Opens Today
Stock futures are slipping after China's third-quarter economic
growth came in below economists' forecasts. Here's what we're
watching ahead of Monday's opening bell.
Informatica Sets IPO at 29 Million Shares, Sees Pricing at
Data-software company Informatica Inc. on Monday said it plans
to sell 29 million shares at between $29 and $32 apiece in its
initial public offering.
Castelnau Group Shares Rise in Stock-Market Debut
Shares of Castelnau Group Ltd. rose 8% on Monday as the company
started trading on the London Stock Exchange, implying a market
capitalization of 191.8 million pounds ($263.7 million).
McBride Costs to Face Spotlight in Update
1103 GMT - McBride investors are likely to eye costs in a
trading update from the detergent and cleaning-product maker on
Tuesday. Numis Securities expects the company to indicate that
consumer demand patterns continue to follow a similar path to that
reported at its full-year results, with cleaning-product volumes
normalizing, but laundry-product volumes still below historic
levels. "But the focus will be on the comments about the cost
environment and its ability to achieve cost recovery. We think
there is a low risk to forecast changes given the recent
downgrades," Numis analyst Damian McNeela says.
Bellway Shares Aren't Pricing in Positives
1005 GMT - Bellway shares don't fully reflect the U.K.
house-builder's upbeat prospects, Numis Securities says ahead of
the company's full-year results Tuesday. While the results are
unlikely to contain any major surprises, Numis says longer-term
forecasts are set at a very cautious level and estimates could rise
more than peers. That reflects the strength of the forward order
book, an aggressive land-acquisition strategy since the first
lockdown and also greater scope for margin recovery, the brokerage
says. "In our view, the potential upside surprise is not factored
into the current rating," Numis analyst Chris Millington says.
Drax's BECCS Project Likely to Get Government Fast Track Status
Soon, Jefferies Says
0913 GMT - While the green credentials of biomass with carbon
capture and storage are debatable, the strategic and political
importance of Drax's U.K. generation is clear, and there is a high
chance that the company's BECCS project will get government fast
track status within weeks, Jefferies says. Drax is a partner in the
East Coast Cluster project, which offers by far the largest
potential carbon capture and the largest job creation. In order to
reflect higher power price forecasts and the addition of Drax's
BECCS project, Jefferies raises the target price to 660 pence from
280 pence and upgrades the FTSE 250 power generation company to buy
Great 3Q Performance May Not Push Oil Majors Much Higher
0805 GMT - The strength of third quarter results may not matter
much for integrated oil companies' performance if energy prices
weaken from here, HSBC says. Current gas prices look unsustainable
and there are downside risks to oil, the bank's analysts warn. "As
strong as the near-term financial outlook is for the sector, we
aren't convinced the oil and gas prices driving the latest rally
are sustainable, or whether they could enable further sector
outperformance from here in the face of continued valuation
headwinds over energy transition risks." HSBC has a buy rating on
Total, and a hold recommendation on BP, Chevron, ExxonMobil, Shell,
ENI, Repsol and Equinor.
Major Oil Companies' 3Q Cash Flows to Double from 2020 on Strong
0838 GMT - Major oil companies are set to reach combined third
quarter operating cash flow of around $60 billion in the third
quarter, which would be up 14% from the second quarter and more
than double that of the same period in 2020, HSBC forecasts. The
latest spike in crude prices won't have really affected third
quarter results, as it only started in the latter part of
September, HSBC says. However, gas markets showed signs of real
tightness for much of the quarter, the bank adds. "We can expect
this to translate into another solid quarter for debt reduction, as
well as plenty of confident messaging on cash distributions."
Polymetal Achieving First Production at Nezhda Marks Important
0832 GMT - The successful launch of the Nezhda gold-silver mine
marks an important milestone for Polymetal, RBC Capital Markets
says. Shares in the mining company rise 1.6% after it reported that
first production was achieved on Saturday. Now, RBC expects
Polymetal to continue accelerating its growth pipeline. "Next up is
Prognoz, a silver mine expected to enter production in Q3 23. The
gold mine Veduga is also expecting board approval by the end of the
year. Following these two projects is a potential POX-3 plant that
will significantly upgrade downstream in-house processing capacity
of refractory ore," RBC says.
Schroders' 3Q Update Seen to Leave Sentiment Unchanged
0814 GMT - The trading update on the third-quarter performance
of Schroders PLC's assets under management is not expected to drive
material changes to consensus estimates, Citi says. The FTSE 100
asset manager's assets under management division performance missed
consensus by 1%, but the performance of its wealth management
division was 2% higher than anticipated, the U.S. bank notes. The
company's wealth management division performance should encourage
investors of the positive momentum on flows in wealth, Citi adds.
Citi has a target price of 37.50 pence a share and a neutral rating
on SDR shares.
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(END) Dow Jones Newswires
October 18, 2021 07:50 ET (11:50 GMT)
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