The FTSE 100 closed up 0.06% despite losses for BP and Shell
after Saudi Arabia unveiled price cuts, prompting a fall in oil
prices. "Saudi Arabia's move to reduce the official selling price
for oil sends worrying signals for the crude market, but stocks
will be grateful for any sign that inflation will keep abating," IG
analyst Chris Beauchamp said in a note. Melrose industrial led the
gainers, up 4.3%, followed by B&M European Value Retail, and
Rolls-Royce, up 3.2% and 2.9% respectively. Shell, BP and Endeavour
Mining were the session's biggest fallers, down 3.1%, 2.6% and
2.35% respectively.
1400 GMT - Data pointing to a relatively resilient U.K. economy,
including better-than-expected purchasing managers' surveys, have
helped the pound to outperform recently, says Matthew Ryan, head of
market strategy at global financial services firm Ebury, in a note.
EUR/GBP fell to a two-and-a-half week low of 0.8598 on Friday,
according to FactSet, and Ryan notes that sterling was the only G10
currency which managed to match the dollar's rise last week. The
pound has been lifted by resilience in consumer demand, evidenced
in recent economic activity data, and the Bank of England's
relative hawkishness, he says. Ebury expects Friday's U.K. November
GDP data will suggest the economy avoided a technical recession.
EUR/GBP edges up 0.1% to 0.8613. GBP/USD is steady at 1.2715.
(jessica.fleetham@wsj.com)
COMPANIES NEWS:
Shell Flags Earnings Hit of Up to $4.5 Billion From
Impairments
Shell said its fourth-quarter earnings took a hit of between
$2.5 billion and $4.5 billion in impairments that were offset by
significantly higher gas trading, while its overall production
volumes are on track to meet targets.
---
Plus500 Says 2023 Earnings Beat Views
Plus500 said its earnings for 2023 beat expectations and that it
is well positioned for the current year.
---
Huddled Revenue Rises on Discount Dragon Outperformance
Huddled Group said that revenue for last year rose on the back
of a better-than-expected performance of its recent acquisition
Discount Dragon.
---
Home REIT Collects 12% of December Rent; Investment Manager
Making Progress
Home REIT said it collected 12% of the rent invoiced for the
month of December, after investment manager AEW UK Investment
Management made further progress obtaining control over its assets
from non-performing tenants.
---
Guild eSports Appoints Paul Kingsley as CFO
Guild eSports said it has appointed Paul Kingsley as chief
financial officer with immediate effect, replacing Clare
Jarvis.
---
CMC Markets Lifts Income Guidance
CMC Markets raised its income expectations for fiscal 2024 on
the back of a strong third quarter on improved market
conditions.
---
CMO Group's Earnings to Miss Guidance on Lower Order Values
CMO Group said it expects earnings to miss guidance, following
lower than normal average order values in the latter half of the
year.
---
Argo Blockchain Raises GBP7.8 Mln Via Discounted Share
Placing
Argo Blockchain said it has raised 7.8 million pounds ($9.9
million) through a discounted shared placing, and that proceeds
will be used for working capital purposes.
---
Adnoc Buys 10.1% Stake in U.K. Carbon-Capture and Storage
Company Storegga
Abu-Dhabi National Oil Company has bought a 10.1% stake in
Storegga, a U.K.-based carbon-capture and storage firm.
---
LivaNova to Wind Down Advanced Circulatory Support Unit
LivaNova is winding down its advanced circulatory support
business unit to refocus its efforts toward its main divisions.
MARKET TALK:
Melrose Industries Looks Set to Fly Higher in 2024, Says
JPMorgan
1350 GMT - Melrose Industries looks set to keep coming up with
good news in 2024, JPMorgan says. Given the momentum in the
aerospace company's business in 2023, Melrose looks likely at least
to meet the top end of 2023 guidance and raise 2024 guidance above
consensus expectations at 2023 full-year results later this year,
JPM says. "Melrose remains a key pick for us in 2024; an aerospace
pure-play with a credible margin story, further upside to forecasts
and a sizeable buy-back supporting the shares," JPM analyst Andrew
Wilson says in a note, reiterating the brokerage's overweight
rating and 620 pence price target. Melrose shares top the FTSE 100
risers, up 4% at 579p. (philip.waller@wsj.com)
---
Senior PLC Shares Fall on Boeing 737 MAX Emergency Landing
Probe
1259 GMT - Shares in Senior PLC tumble, leading the FTSE 250
fallers, as Boeing stock was affected by the news stemming from the
incident which forced an Alaska Airlines Boeing 737 MAX 9 to make
an emergency landing on Friday. The U.K. engineering company--which
supplies components to the aircraft maker--had said in its November
update that sales at its Aerospace division were expected to see
good year-on-year growth as it continued "to expect Aerospace
performance to improve in 2024 and beyond as supply chain
challenges dissipate and production rates increase." Senior shares
are down 5.3% at 166.60 pence.
(anthony.orunagoriainoff@dowjones.com)
---
Nike, JD Sports Results Could Weigh on Adidas, Puma
1214 GMT - Nike and JD Sports' results could have a negative
read-across for Adidas and Puma, RBC Capital Markets analyst Piral
Dadhania says in a research note. "We previously viewed the 2024
sporting-goods setup as attractive owing to accelerating revenue
growth intra-quarter and gross margin recovery," the analyst says.
However, Nike and JD Sports' results have highlighted a less
favorable demand environment. Puma and Adidas might flag softer
first-half revenue expectations and improvement into the next six
months on an easier comparison base, the analyst says. For 2024,
both Adidas and Puma could forecast a high-single-digit revenue
increase, but the latter might also anticipate EBIT between EUR700
million and EUR800 million, which could disappoint consensus
expectations by 5%, he says. (andrea.figueras@wsj.com)
---
Drax Shares Rise on Carbon-Capture Decision Report
1155 GMT - Drax's shares are trading higher after a media report
that the U.K. would approve the power-generation company's net-zero
carbon-capture plan this week. According to the report by U.K.
newspaper the Telegraph, the government is set to agree to the
multibillion-pound plan and will launch a consultation to extend
its current subsidies beyond 2027. However, Citi analysts think
Drax isn't likely to get the approval yet as selection processes by
the government are planned for autumn this year. "While we cannot
rule out a government remuneration approval for Drax's bioenergy
with carbon capture and storage units, we would be very surprised
of such decision," the analysts say. Shares are up 6.9% at 523.60
pence. (christian.moess@wsj.com)
Contact: London NewsPlus, Dow Jones Newswires;
(END) Dow Jones Newswires
January 08, 2024 12:38 ET (17:38 GMT)
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