Fall in UK Covid-19 Cases Seen as Positive For Pound
The fall in U.K. coronavirus cases is a promising development
for the pound in the near-term because it could be years before the
real economic impact of Brexit becomes clear, Commerzbank says.
Leaving Brexit uncertainty aside, an abatement of the pandemic
"speaks for positive real economic impulses," which should support
the pound, Commerzbank currency analyst Esther Reichelt says.
"However, the Bank of England's rather dovish stance should put a
stop to further significant GBP gains for the time being." GBP/USD
is flat at 1.3884 after earlier hitting a near two-week high of
1.3896, according to FactSet. EUR/GBP is flat at 0.8514, having
reached a three-and-a-half-month low of 0.8499 earlier.
Companies News:
Trifast's First-Quarter Revenue Rose Significantly
Trifast PLC said Wednesday that revenue rebounded significantly
in the first quarter of fiscal 2022 and that the board is confident
in the group's outlook for the full year.
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FDM Group 1H Pretax Profit Slipped, Backs FY Expectations
FDM Group (Holdings) PLC on Wednesday reported a slightly lower
profit for the first half and said performance was in line with
expectations.
---
Primary Health Properties 1H Pretax Profit, Rental Income
Rose
Primary Health Properties PLC said Wednesday that its first-half
pretax profit and net rental income rose and that it has a strong
pipeline of acquisitions and management projects.
---
NCC Group to Make Changes to Historic Costs on New Accounting
Guidance
NCC Group PLC said Wednesday that the new accounting guidance
from the IFRS Interpretations Committee will affects its audited
fiscal 2019, fiscal 2020 and fiscal 2021 results.
---
Fewer UK Businesses Faced Significant Financial Distress in 2Q
Than in 1Q, Report Says
A total of 650,000 U.K. businesses faced significant financial
distress in the second quarter of 2021, a 10% decline from the
first quarter, according to data published by
corporate-restructuring specialist Begbies Traynor Group PLC on
Wednesday.
---
Barclays Profit Soars on Investment Banking
Barclays PLC Wednesday said its net profit rose in the second
quarter, driven by a strong performance in its investment bank.
---
Fortress Investment Says Cambourne Life Investment Joined Group
to Take Over Morrisons
Fortress Investment Group (UK) Ltd. said Wednesday that
Cambourne Life Investment Pte. Ltd. has joined the investment group
led by Fortress that was created to bid for British grocer Wm.
Morrison Supermarkets PLC.
---
HydrogenOne Capital Growth Raises GBP107.4 Mln in IPO, Missing
Target
HydrogenOne Capital Growth PLC said Monday that it raised gross
proceeds of 107.4 million pounds ($149.0 million) in its initial
public offering on the London Stock Exchange, short of its original
target.
Market Talk:
Marston's Sales, Cash Flow Underpin Recovery
1004 GMT - Marston's recovery is encouraging, Liberum's Anna
Barnfather says, after the pub operator reported that like-for-like
sales are now running at 88% of 2019 levels. The pubs are now
trading profitably with no significant inflationary concerns or
pingdemic interruptions, the analyst says. "Importantly, cash flow
inflows are already supporting debt reduction, a key tenet of the
investment case." Shares in Marston's rise 3.7% to 86.65 pence.
Barnfather reaffirms a hold rating and a 100 pence target price on
the stock.
---
Brexit Seen Limiting UK Trade
0956 GMT - Brexit appears to be preventing the U.K. from fully
reaping the benefits of the global upswing in trade even though the
nation swung to a trade surplus in May, Pantheon Macroeconomics
says. The U.K. trade balance moved to a surplus of GBP900 million
in May from a deficit of GBP1.6 billion in April, according to the
Office for National Statistics. However, the surplus reflected a
shift in trade of erratic items rather than a genuine underlying
improvement, Pantheon economist Samuel Tombs says. The data also
show U.K. goods exports to the EU remain below the 2019 average
level, he says. "All told, Brexit will continue to weigh on trade
this year and will therefore limit the recovery in GDP."
---
Fresnillo's 2021 Silver Production Should Be Ahead of Guidance
Mid-Point
0951 GMT - Fresnillo has upgraded its grade guidance for the San
Julian DOB mine to 200-230 grams per metric ton, up from 160-170
grams earlier, Citi says. These higher grades at San Julian should
support full-year group silver production ahead of the mid-point of
its 53.5 million-59.5 million ounces guidance, Citi believes.
However, cost inflation is likely to be keenly watched by the
market in the interim results, even with the backdrop of better
operational trends, the bank warns. Shares in Fresnillo rise 5.5%
after reporting production for the second quarter of 2021.
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Diageo Seen Set to Report Higher Profit, Revenue in FY 2021
0949 GMT - Diageo is expected to report a sharp rise in pretax
profit when it releases its fiscal 2021 earnings. The world's
largest liquor maker--which owns Johnnie Walker whisky and
Tanqueray gin--is forecast to make a pretax profit of GBP3.63
billion pounds for the year, taken from FactSet and based on a
consensus estimate from eight analysts' projections. This compares
with GBP2.04 billion in fiscal 2020. Revenue is anticipated to come
in at GBP12.57 billion, according to a consensus estimate from
FactSet based on 19 analysts' forecasts. A year earlier, revenue
was GBP11.75 billion. Shares are up 0.4% at 3,493 pence.
---
Primary Health Properties Seen as Good Investment After Solid
1H
0919 GMT - Primary Health Properties' structural underpinning is
clear and its well-established position underlines good reasons to
invest in the company, Numis says. The investor in healthcare
facilities in the U.K. and Ireland delivered robust first-half
results, showing positive year-on-year momentum. While strong
competition meant few suitably priced acquisition opportunities,
management expects acquisitions to gather pace in 2H, Numis says.
The Covid-19 pandemic has accelerated transformation in primary
healthcare centers, like the adoption of remote consulting, but it
won't be enough to replace physical visits and shouldn't have a
material effect on future space requirements, underlining Primary
Health's long-term safety, the brokerage says. Numis retains an add
rating on the stock and a target price of 184.0 pence. Shares are
up 1.6% at 163.3 pence.
---
Aston Martin Lagonda on Course to Hit FY Targets
0910 GMT - Shares in Aston Martin Lagonda Global Holdings rise
3% after the luxury sports-car maker reported a narrowed 2Q loss as
revenue rose significantly versus a year earlier. The 1H results
matched expectations and confirm that the company is on track to
achieve full-year guidance, with EBITDA set to more than double in
the second half, Citigroup says. "We expect consensus to remain
broadly unchanged following the print, with focus shifting to the
anticipated earnings acceleration in 2H as special deliveries ramp
up," Citi analyst Gabriel Adler says.
---
St James Place Reports Strong 2Q Flows, 1H Earnings
0905 GMT - Shares in St. James's Place top the FTSE 100 risers,
up 6% after the asset manager swung to a first-half pretax profit.
Citigroup says SJP reported a strong Q2 flow and 1H earnings. Gross
flows beat 2Q consensus by 5% and net flows beat by about 10%,
underpinned by improved client sentiment, sharply higher household
savings and strong levels of client engagement. Outlook comments
suggest a 20% increase in year-on-year gross flow in H2, implying
2% upgrades to 2H consensus, while underlying cash topped
expectations and costs fell. "Overall we see this as a strong print
across the board. The shares have run strongly into the day, but
the results today should still be supportive," Citi analysts
say.
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Epwin's Excellent 1H Results Point to a Rosy Future
0901 GMT - Epwin's first-half trading update was positive, with
increased revenue and a reduction in net debt leading to material
upgrades to 2021 forecasts from Shore Capital. The
building-products manufacturer said that revenue rose 69% in the
first half, and the investment group raised its 2021 revenue
expectations by 11% and its pretax-profit expectations by 17%. The
company's debt reduction is impressive and the company will likely
be virtually ungeared by 2024, Shore Capital says, providing an
expected GBP60 million in mergers-and-acquisitions firepower--so
expect several accretive bolt-on acquisitions over the next two
years. Shares are up 3% at 110.0 pence.
---
Rio Tinto CFO Says 'Quality' Mining Projects Are Scarce
0855 GMT - Mining asset values have climbed alongside commodity
prices, adding to the challenge of finding new sources of growth in
sectors such as battery materials, Rio Tinto CFO Peter Cunningham
says. "We will continue to look to see what opportunities we can
find," but M&A targets also need to have a clear strategic fit
and chances for Rio to add value, he says. Cunningham tells WSJ
that Rio Tinto is excited by its Jadar lithium project and "if we
had more opportunities of that quality, we have the ability and the
financial capacity to move them forward."
Contact: London NewsPlus, Dow Jones Newswires;
+44-20-7842-931
(END) Dow Jones Newswires
July 28, 2021 06:24 ET (10:24 GMT)
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