Sterling Could Rise if Labor Market Remains Strong
Sterling and some U.K. stocks which are sensitive to interest
rates could rise if the unemployment rate continues to decline
after the furlough scheme ends, says Emma Mogford, fund manager at
Premier Miton Monthly Income Fund. If the unemployment rate
continues to fall after a government-backed employee retention
scheme ends on Sept. 30, "that should provide a boost to sterling
and interest rate sensitive stocks," she says. Official data from
the Office for National Statistics showed employee numbers were
back at pre-Covid levels in August. Higher consumer prices and a
robust labor market could potentially prompt the Bank of England to
tighten monetary policy earlier than anticipated. Sterling is last
up 0.2% at $1.3860.
Companies News:
Thinksmart FY 2021 Pretax Profit Rose
Thinksmart Ltd. on Tuesday reported a rise in pretax profit for
fiscal 2021 and said the company is well placed for the future.
---
Tern PLC Swung to 1H Pretax Loss
Tern PLC reported on Tuesday a swing to a pretax loss for the
first half of 2021 on higher costs, but said that it is optimistic
about the second half.
---
Cambria Automobiles Says Go-Private Takeover Is Now
Unconditional
Cambria Automobiles PLC said Tuesday that the go-private
management offer for the car retailer is now unconditional, after
having met the required acceptance threshold.
---
Bytes Technology Says 1H Performance Was Strong, CFO to
Retire
Bytes Technology Group PLC said Tuesday that its performance
continued to be strong during the first half of fiscal 2021, and
that Chief Financial Officer Keith Richardson intends to
retire.
---
Argo Blockchain Launches IPO of ADSs on Nasdaq
Argo Blockchain PLC said Tuesday that it has launched an initial
public offering of its American depositary shares on the Nasdaq
Global Market.
---
Tertiary Minerals Appoints Former Arkle Resources CEO as
Managing Director
Tertiary Minerals PLC said Tuesday that it has appointed Patrick
Cullen as managing director with immediate effect.
---
Kistos First-Half Revenue Rose
Kistos PLC said on Tuesday that revenue rose for the first half,
and that it was undertaking a work program to enhance production at
the Q10-A gas field and appraise the Q11-b gas discovery at the
Vlieland light oil discovery in the Netherlands.
---
Good Energy Swung to 1H Profit
Good Energy Group PLC on Tuesday reported a profit for the first
half of the year, and said full-year expectations remain
unchanged.
---
Tandem Group 1H Profit, Revenue Climbed
Tandem Group PLC said Tuesday that its profit and revenue rose
in the first half of 2021.
---
Springfield Properties FY 2021 Pretax Profit Rose
Springfield Properties PLC said Tuesday that fiscal 2021 pretax
profit and revenue rose, and that it enters the fiscal 2022 with
good visibility over full year revenue as it delivers against a
significant order book.
---
Accesso Technology Says 2021 Revenue Will Rise to Pre-Pandemic
Levels
Accesso Technology Group PLC said Tuesday that it expects 2021
revenue to be at least at pre-pandemic levels and improved
profitability.
---
Colefax Group's Tender Offer: Shares Valued at GBP6.7 Mln
Purchased
Colefax Group PLC said Tuesday that it purchased shares valued
at 6.7 million pounds ($9.3 million) via its tender offer.
---
Sanne Group 1H Profit Fell as Revenue Recovered
Sanne Group PLC said Tuesday that profit ticked down and revenue
rose in the first half of the year, as client activity recovered
after the Covid-19 hit.
---
Peel Hunt to Pursue AIM-Market Listing
Peel Hunt Ltd. said Tuesday that it intends to seek admission of
its ordinary shares to be admitted to trading on the London Stock
Exchange's AIM market.
---
EKF Diagnostics Raises 2021 Expectations on Strong 1H
Trading
EKF Diagnostics Holdings PLC said Tuesday that its profit and
revenue rose in the first half of 2021 and that it expects
full-year results ahead of its previous expectations.
---
Made Tech Group Plans to Float in London on Sept 30
Made Tech Group PLC said Tuesday that it expects to float on the
AIM of London later this month.
---
TP Group 1H Pretax Loss Widened
TP Group PLC said on Tuesday that its pretax loss widened for
the first half after booking higher costs.
---
Bonhill Group Confirms Narrower 1H Pretax Loss, Lower
Revenue
Bonhill Group PLC said Tuesday that its pretax loss narrowed in
the first half, although revenue fell amid a lack of live events as
previously announced.
---
Fiske Swung to FY 2021 Pretax Profit, Shares Rise
Shares in Fiske PLC rose on Tuesday after the company said it
swung to a pretax profit for fiscal 2021 as revenue rose, and that
it had a good start to fiscal 2022.
---
Staffline Shares Fall After Cautious Outlook Despite Narrowed 1H
Loss -- Update
Staffline Group PLC shares fell on Tuesday despite a narrowed
first-half pretax loss, after it said it remains mindful of
pandemic-driven economic uncertainty and potential labor
shortages.
Market Talk:
UK Labor Market Recovery Continues, Slack Remains
1013 GMT - The U.K. labor market continued with its strong
recovery in the three months to July, Citi's Benjamin Navarro says.
The number of people employed was 183,000 higher in the three
months to July than in the previous three months and labor demand
reached a record high in the three months to August, with total
vacancies exceeding 1 million on a three-month basis for the first
time on record. Despite the continued improvement, unemployment
remained a little higher than Citi expected, at 4.6%. Total hours
worked also remained around 4% below pre-pandemic levels. "We think
elevated levels of labor market mismatch continue to point to
challenges ahead," Navarro says.
---
Ocado Share Price Faces Gloomy 2021 After Disrupted 3Q
1007 GMT - Online grocer Ocado's share price looks set to
continue struggling after a third quarter marked by higher costs
and a fire disrupting its operations, CMC Markets says. Ocado is
among the 10 worst performing FTSE 100 stocks this year so far, the
investment platform says. Third-quarter retail revenue declined
10.6%, falling back from pandemic highs and hit by the fire at the
Erith fulfillment center, while higher wages will add another GBP5
million to Ocado's cost base, CMC Markets says. "Any further
progress in terms of share price gains could well be hard won," CMC
Markets says. Shares trade down 3.1% at 1,828.50 pence.
---
Ocado's Robot Fire Damaged More Than Sales
0958 GMT - Online grocer Ocado's latest warehouse accident
involving robots has cost it millions at a time when it is also
facing considerable extra costs from human labor, particularly
delivery drivers, Russ Mould at AJ Bell says. The company's
business model depends on signing up more grocery sellers to use
its logistic platform, and suffering two fires caused by robots is
damaging to more than just one quarter's sales because prospective
clients might think twice before signing up with the company given
the considerable disruption a small accident can cause, Mould says.
"The share price has taken a real beating this year because it has
been slow to sign up new grocery partners for its systems, and the
second robot fire has hurt its credibility," Mould says.
---
Bunzl's Latest Acquisitions Expected to Be EPS Accretive
0931 GMT - Distribution-and-outsourcing group Bunzl acquired two
businesses with combined revenue of GBP77 million, and given the
targets' Ebitda profile, they should be low-mid single digit
accretive to EPS, analysts at Jefferies say. One of the businesses,
McCue, is fast-growth and high-margin and subsequently attracted a
higher multiple than usual, but it should create value creation in
three years, and the deal opens an appealing new market, the U.S.
bank says. The company's spend to date is GBP390 million, compared
with GBP134 million at the interims, and this implies the company
spent GBP256 million on both of these deals, with the bulk probably
going to McCue, the bank says. Jefferies rates the stock buy with a
3,000-pence target price.
---
UK 10Y Gilt Yield Hits Near 12-Week High After Labor Data
0856 GMT - Investors sell 10-year benchmark U.K. government debt
after official data showed company payrolls have returned to
pre-pandemic levels as the recovery from the Covid-19 crisis
continues. The unemployment rate fell slightly to 4.6% in the three
months to July from 4.7% the previous month. "The falling
unemployment rate is another sign that the U.K. economy is
experiencing a healthy recovery," says Emma Mogford, fund manager
at Premier Miton Monthly Income Fund, adding that the Bank of
England will be closely watching how the labor market reacts to the
end of the furlough scheme in Sept. 30. The 10-year gilt yield
climbs to its highest in nearly 12 weeks at 0.782% after the
announcement, according to Tradeweb.
---
UK Labor Market Showed Strength in Summer; Challenges Ahead in
4Q
0802 GMT - Job creation remained strong over summer in the U.K.,
Pantheon Macroeconomics says. The number of people employed was
183,000 higher in the three months to July than in the previous
three months, according to the Labour Force Survey. "The strength
of the employment indicators of Markit's purchasing managers index
survey and the KPMG/REC Report on Jobs in August suggest that
employment growth will remain brisk throughout the third quarter,"
Pantheon Macroeconomics' chief U.K. economist Samuel Tombs says.
Further growth in employment will likely push down the unemployment
rate even further toward its pre-Covid low of 3.8%, he says.
However, the winding up of the furlough program will probably lead
to an increase in unemployment and underemployment in 4Q, Tombs
says.
---
UK 2026 Gilt Auction Expected to Go Well
0759 GMT - The U.K. Debt Management Office's planned sale of
GBP3 billion in the 0.375% October 2026 gilt should go well, as the
bond looks cheap on several metrics, says RBC Capital Markets.
"Given the recent cheapening of 5-year on outright, cross-market,
on the curve versus longer maturities it should go relatively
well," analysts at the bank say. Further supporting the auction is
the possibility of outperformance against gilts of different
maturities. "Whilst the bond doesn't look particularly attractive
on micro-relative value, we see room for outperformance even from
these levels given the lack of 5-year supply and its popularity in
the [Bank of England's] Asset Purchase Facility," they say.
---
JD Sports Shares Soar After Strong 1H Results, Guidance
Upgrade
0720 GMT - Shares in JD Sports jump 9.0% after the company
released first-half results and provided improved full-year
guidance. The sports-goods retailer's financials for January-June
were very strong, with revenue and earnings ahead of expectations,
RBC Capital Markets says. In addition, the integration of recent
acquisitions in the U.S. and Eastern Europe is going well, and
current trading is encouraging, RBC says. As a result, JD now
expects a headline pretax profit of at least GBP750 million, which
is 20%-25% ahead of consensus and well above previous guidance of
GBP550 million, the Canadian bank says. RBC has an outperform
rating on the stock.
Contact: London NewsPlus, Dow Jones Newswires; Write to Sarka
Halas at sarka.halas@wsj.com
(END) Dow Jones Newswires
September 14, 2021 06:41 ET (10:41 GMT)
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