FTSE 100 Falls Ahead of UK Budget

The FTSE 100 fell before U.K. Treasury chief Rishi Sunak delivers his latest budget statement later. "With some spending plan details already released, the gaps will be filled when the budget is announced later today," Interactive Investor analyst Richard Hunter says. The budget could have some impact on certain sectors and general market sentiment, he says. Darktrace shares rise 2.8%, having fallen after a broker said on Monday the cybersecurity firm is worth only half its market value. U.K gambling group Entain gains 1.4% after dropping Tuesday when U.S. rival DraftKings ditched an attempt to buy Entain. Miner Fresnillo falls 2.4% after its third-quarter results and software group Aveva drops 1.5% after a trading update.

 
Companies News: 

Iberdrola Nine-Month Profit Fell

Iberdrola SA said Wednesday that net profit fell in the first nine months of the year, and that overall performance continues to be affected by the coronavirus pandemic, even if to a lesser extent.

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RPS Group Says 3Q Performance Was in Line With Views

RPS Group PLC said Wednesday that it performed in line with the company's expectations in the third quarter of 2021 as fee revenue rose, and that it expects further improvements in business during the last three months of the year.

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Barkby Expects to Swing to 1H 2022 Positive Ebitda

Barkby Group PLC said on Wednesday that it expects to swing to positive earnings for the first half of fiscal 2022 and to report a rise in revenue.

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Hargreaves Services Says Business Performance Is in Line With Expectations

Hargreaves Services PLC said Wednesday that its three divisions-- Services, Hargreaves Land and German joint venture Hargreaves Raw Material Services GmbH--are performing in line with the board's expectations.

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Yellow Cake Conditionally Raises GBP109 Mln via Accelerated Book-Build

Yellow Cake PLC said Wednesday that it has conditionally raised around 109 million pounds ($150.1 million) via an accelerated book-build, and that it will use the proceeds to purchase around 3 million pounds of physical uranium.

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Network International Holdings Says 3Q Revenue Rose; Backs Guidance

Network International Holdings PLC said Wednesday that revenue increased in the third quarter, and that it expects to achieve full-year expectations.

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ULS Technology 1H Underlying Pretax Loss Lower Than Expected on Higher Revenue

ULS Technology PLC on Wednesday said its underlying pretax loss for the first half of fiscal 2022 was lower than expected, as revenue increased.

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Coral Products to Post 1H Sales, Pretax Profit Far Ahead of Previous Fiscal Year

Coral Products PLC said Wednesday that the first half of fiscal 2022 was strong, and that it will report sales and pretax profit substantially ahead of the same period of the previous financial year.

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Bloomsbury 1H 2022 Pretax Profit Boosted by Early Christmas Orders

Bloomsbury Publishing PLC on Wednesday reported a near four-fold rise in pretax profit for the first half of fiscal 2022 as retailers and online booksellers increased order levels to ensure sufficient stock for Christmas given the supply-chain problems.

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Accesso Technology Expects 2021 Revenue to Double

Accesso Technology Group PLC said Wednesday that its strong first-half performance continued through September and October, and that it expects to post a more-than-doubled revenue for 2021 as a whole.

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DP Eurasia Recommends Shareholders Don't Accept Jubilant Offer

DP Eurasia NV said Wednesday that Jubilant Foodworks Ltd.'s intention to acquire 49.99% of its issued share capital could negatively affect minority shareholders and that it recommended shareholders don't accept the terms.

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Redcentric Says 1H Revenue Was Broadly Stable; Backs Guidance Despite Supply-Chain Issues

Redcentric PLC said Wednesday that it expects to report that its performance for the first half of fiscal 2022 was broadly in line with that of the same period a year earlier, while it sees business for the remainder of the year in line with expectations despite supply-chain issues.

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Restore Buys Records Management Business the Document Warehouse

Restore PLC on Wednesday said that it has acquired the records-management business The Document Warehouse for 6.5 million pounds ($8.9 million).

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Vianet Group Says 1H Revenue Jumped; Expects 2H to Underline Dividend Reinstatement

Vianet Group PLC said Wednesday that revenue jumped in the first half of fiscal 2022, and that it expects second-half cash generation to enable the reinstatement of a dividend in July for the fiscal year given that there aren't any further Covid-19 restrictions or a worsening in the semiconductor supply.

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Urban Logistics Proposes Move to FTSE Main Market, Share Placing

Urban Logistics REIT PLC on Wednesday proposed a move to the premium segment of the London Stock Exchange's main market from the alternative investment market in early December, and to authorize a placing program of up to 350 million shares.

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Atalaya Mining Declares Inaugural Dividend, New Dividend Policy

Atalaya Mining PLC said Wednesday that it has declared an inaugural dividend of around $54.6 million, priced at $0.395 per ordinary share, and approved a dividend policy.

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Softline Holding Prices IPO at Bottom End of Range

Softline Holding PLC on Wednesday priced its initial public offering at $7.50 per global depositary receipt, the bottom of the preset range, implying a market capitalization of $1.5 billion.

 
Market Talk: 

Gilt Yields Fall Ahead of UK Budget

0755 GMT - U.K. borrowing costs fall further Wednesday ahead of the government's presentation of its spending plans at midday. Treasury chief Rishi Sunak is expected to rein in the hefty stimulus deployed during the pandemic to prop up the economy as he begins fiscal tightening. A revision to the gilt remit for the current fiscal year 2021-22 is expected to follow the budget announcement, with a downward revision widely anticipated. "Market expectations for the reduction in the Gilt remit likely fall in the range of GBP25-40bn," analysts at Mizuho say, adding that the division of the amount is slightly weighted towards gilts of shorter maturities. The 10-year gilt yield trades last at 1.088%, down from 1.112% Tuesday, according to Tradeweb.

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There's More to Green Tech Than EVs, UBS Says

0734 GMT - Investors should look beyond buzzy EV headlines to other opportunities in green tech, UBS says. It sees potential in autonomous driving and car-sharing, expecting the total addressable market for smart mobility to grow to $450 billion by 2025--three to four times larger than it is now. By 2030, when UBS reckons up to 70% of all new cars world-wide will be electrified, it could reach $2 trillion. Hydrogen- and carbon-capture tech also show significant potential. Hydrogen can bridge the short-term gaps left by renewable power, and is the preferred path to net zero in tough-to-decarbonize sectors like steel, UBS says.

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UK Borrowing Expected to Be Revised Down Sharply

0732 GMT - The Office for Budget Responsibility is likely to announce a significant downward revision to the 2021/22 estimate Wednesday, says RBC Capital Markets. In a statement issued alongside the government's presentation of its spending plans, the U.K. fiscal watchdog is expected to trim its previous March forecast by GBP25 billion to GBP209 billion, analysts at the bank say. "With the GDP outturn considerably better than forecast at the March Budget, borrowing year-to-date is already significantly below the OBR's expectations," they say. Borrowing is set to fall further despite the better-than-expected year-to-date performance likely fading going forward and debt repayments being higher than expected due to a steeper retail price index, they say.

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Aveva 1H Performance Implies Softening Growth in 2Q

0727 GMT - Aveva Group's trading update for the first half of fiscal 2022 implies a slight softening of growth in the second quarter, Jefferies says. The U.K. engineering and industrial-software company's statement cites a "particularly strong contribution" from OSIsoft, which implies more modest trends in core units, the U.S. bank says. The company's trading update also refers to significant margin leverage, which suggests upside to Jefferies's first-half EBIT forecast of GBP108.8 million, although this is below consensus of GBP125 million. Shares are down 0.1% at 3,636.00 pence.

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Aluminum at Eight-Week Low as Coal Prices Fall

0724 GMT - Aluminum prices fall close to a two-month low as supply concerns ease. Three-month aluminum on the LME is down 2.7% at $2,755.50, its lowest level in eight weeks. The metal has fallen over the past two weeks after hitting a 13-year high. Rising energy costs initially raised concerns that energy-intensive aluminum smelters could cut back on production. But China has been taking steps to curb rising coal prices, the latest of which is China's state planner asking coal-producing provinces to probe illegal storage sites and crack down on hoarding. Prices for Chinese thermal coal, which powers much of the nation's aluminum smelters, have dropped over 9% this week as of Tuesday. Falling coal prices are easing concerns in the aluminum market.

 

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

(END) Dow Jones Newswires

October 27, 2021 04:40 ET (08:40 GMT)

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