FTSE 100 Led Lower by Mining Stocks Amid Fresh Evergrande
Fears
0804 GMT - The FTSE 100 drops 0.3% to 7199 points, led by mining
stocks, as investors fret over Chinese property group Evergrande's
potential debt default. Miners including Rio Tinto, BHP Group and
Glencore slide on lower commodity prices after Evergrande said its
plan to raise funds by selling a stake in a subsidiary fell
through. Anglo American shares decline 3.5% even after the miner
posted stronger third-quarter production. Barclays falls 0.8% after
the bank posted a drop in net interest margin--a key measure of
profitability--for the third quarter. Unilever gains 1.5% after the
consumer goods giant beat its third-quarter sales growth forecast.
(renae.dyer@wsj.com)
Companies News:
Barclays Profit Rises on Investment Banking--Update
Barclays PLC said its net profit rose in the third quarter,
driven by a continued strong performance at its investment
bank.
---
Unilever 3Q Underlying Sales Rose, Backs Margin Guidance Despite
Cost Inflation
Unilever PLC said Thursday that third-quarter underlying sales
rose on good growth in its priority markets of the U.S., China and
India, development of online shopping channels and growth of
portfolio brands.
---
St. James's Place 3Q Net Inflows, Funds Under Management
Rose
St. James's Place PLC said Thursday that funds under management
and net inflows increased significantly in the third quarter of
2021.
---
Rentokil Initial 3Q Revenue Rose 0.5%, Backs 2021 Guidance
Rentokil Initial PLC on Thursday reported a 0.5% rise in third
quarter revenue at actual exchange rates and backed its full-year
guidance.
---
Anglo American Platinum Reports Flat 3Q Production; Reaffirms
2021 Guidance
Anglo American Platinum Ltd. on Thursday reported broadly flat
production for the third quarter and reiterated full-year
guidance.
---
Babcock International 1H Revenue Seen to Rise; FY Outlook
Unchanged
Babcock International Group PLC said Thursday that performance
for the first half of fiscal 2022 was in line with its expectations
and it backed its guidance for the full year.
---
Gateley (Holdings) Shareholders Sell GBP11.4 Mln Worth of
Shares
Gateley (Holdings) PLC said Thursday that 11.4 million pounds
($15.8 million) worth of shares have been sold on behalf of certain
directors and employees, as first announced late Wednesday.
---
Renishaw 1Q Pretax Profit Rose 39%
Renishaw PLC said Thursday that its profit and revenue increased
in the first quarter of the fiscal year and that it has a record
order book.
---
GB Group Says 1H Sales, Adjusted Operating Profit Grew
GB Group PLC said Thursday that revenue and adjusted operating
profit for the first half of fiscal 2022 increased, and that the
outlook for the second half is in line with the company's
expectations.
---
FirstGroup Sells Greyhound to FlixMobility for $172 Mln
FirstGroup PLC said Thursday it has sold its North American
subsidiary Greyhound Lines, Inc. to FlixMobility GmbH for a total
cash consideration of $172 million, effective immediately.
---
Driver Group Says FY 2021 Underlying Pretax Profit Is in Line
With Views
Driver Group PLC said Thursday that it expects to report an
underlying pretax profit for the fiscal 2021 in line with market
expectations.
---
Provident Financial 3Q Performance Improved, Mulls 2021
Dividend
Provident Financial PLC said Thursday that its third-quarter
performance improved significantly on more favorable macroeconomic
conditions and customer demand for credit, and if it persists it
will consider an ordinary dividend for 2021.
Market Talk:
Just Eat's Plans for Future Seen as Promising
0810 GMT - Just Eat's capital markets day rhetoric promises much
of what investors would like to see: putting delivery at the heart
of strategy, Jefferies says. The food delivery group's comment on
deploying its "clear playbook in the U.S. to overcome current
challenges" is likely to create the most headlines, the U.S. bank
says. "We had held a vain hope that the U.S. would have been a
candidate for strategic, not organic growth, measures. We go into
the noon presentations with an open mind," Jefferies says.
Elsewhere, Just Eat's new long-term targets look sturdy, except
perhaps the 2022 Ebitda plans. Jefferies retains its buy rating and
price target of 8,600 pence. Shares in London are down 4% at 5,815
pence. (joseph.hoppe@wsj.com)
Rentokil's 3Q Revenue Slightly Misses Mark But Guidance
Reassures
0804 GMT - Rentokil's third quarter organic revenue of GBP761.3
million missed market consensus by 1%, but exceeded Jefferies's
expectations of GBP753 million. The pest-control, hygiene and
work-wear services provider's outlook comments are reassuring
regardless, the U.S. bank says, and the company appears to be on
track to deliver a full-year performance in line with the guidance
provided at the interim results. The FTSE 100 company said in July
that it expects to report mid-single digit organic growth in its
businesses for the full year. Jefferies retains its buy rating and
price target of 650.0 pence. (joseph.hoppe@wsj.com)
Unilever's 3Q Updates Seen as Good Enough Given Low
Expectations
0800 GMT - Unilever's third-quarter performance was just ahead
of market consensus, led by strong pricing, and, relative to low
expectations, feels like a good enough quarter, Jefferies says. The
Anglo-Dutch multisector retailer's decisive progress on
pricing--rising 4.1% over the quarter to deal with cost
inflation--is a positive given the current climate, the U.S. bank
says. That said, Unilever's underlying challenge remains in
accelerating volume growth from its level of around 2%, Jefferies
says. Jefferies retains its buy rating and price target of 3,819
pence. Shares are up 1.3% at 3,869.5 pence.
(joseph.hoppe@wsj.com)
UK Offers Up to GBP6 Bln in July 2053 Green Gilt
0751 GMT - The U.K. is offering up to GBP6 billion in the new
July 2053 green gilt Thursday, after the transaction was delayed
from Tuesday. "At a size of around GBP6bn this could bring some
bearish pressure on the long-end, but we expect the supply to go
very well," Mizuho says. A sizeable order book is likely, as the
syndicated deal is expected to attract ESG funds and the pension
and liability-driven investment community, "who won't necessarily
mind paying a slight premium for a decent block of duration,"
analysts at the bank say. This is the U.K.'s second green bond,
following the inaugural July 2033 green gilt last month.
(lorena.ruibal@wsj.com)
Shrinking UK Fiscal Deficit Unlikely to Boost Spending
0743 GMT - U.K. public sector net borrowing keeps falling
relative to the previous year, enabling Treasury Chief Rishi Sunak
to present better figures at next week's Budget, though further
higher spending is unlikely, says Capital Economics. Official data
showed the country's fiscal deficit shrank to GBP21.8 billion in
September from GBP28.8 billion in the same month a year ago.
"September's public finances figures mean that the Chancellor will
be able to boast in next Wednesday's Budget that he has reduced
government borrowing much quicker than expected," says chief U.K.
economist Paul Dales. But he is still likely to set some tight
fiscal rules, which means he is unlikely to announce a major net
giveaway next week, he adds. (lorena.ruibal@wsj.com)
Barclays 3Q Driven by Record Performance for Corporate and
Investment Banking, Says Citi
0738 GMT - Third-quarter adjusted pretax profit at Barclays's
corporate and investment banking division is 39% ahead of consensus
and this was driven by the unit's revenue performance, which was
10% ahead on year, Citi says. The FTSE 100-listed bank's adjusted
pretax profit came in at GBP1.5 billion, also thanks to its
provision reversals, Citi says. Citi expects upgrades to 2021
earnings per share of between 5% and 10%, and upgrades of between
2% and 5% for 2022. A key point from this performance is, however,
the sustainability of corporate and investment banking revenue and
whether the bank will continue benefiting from CIB performance in
the coming quarters, Citi says. Citi has a neutral rating on the
stock. (sabela.ojea@wsj.com; @sabelaojeaguix)
Contact: London NewsPlus, Dow Jones Newswires; Dow Jones
Newswires; paul.larkins@wsj.com
(END) Dow Jones Newswires
October 21, 2021 05:27 ET (09:27 GMT)
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