FTSE 100 Struggles for Direction After Losses in the Previous
Session
0757 GMT - The FTSE 100 struggles for direction after closing at
a three-month low on Thursday following interest rate hikes by the
Bank of England, Federal Reserve and Swiss National Bank. The index
last trades up 0.4% at 7073 points. "Despite a cautiously positive
opening in early exchanges, the previous couple of bruising
sessions have wiped out the hard-won gains of 2022, leaving the
index down by 4.4% in the year to date," Interactive Investor
analyst Richard Hunter writes. Glencore shares rise 3.0% after the
miner said it expects first-half profit from its trading division
to reach the top end of its long-term annual forecast range. Tesco
falls 0.7% after the supermarket chain warned of changing customer
behaviour as inflation bites. (renae.dyer@wsj.com)
Companies News:
AstraZeneca Weighing Bid For Mereo BioPharma: Report --
MarketWatch
AstraZeneca (AZN.LN) is considering a bid for London-based,
U.S.-listed biotech Mereo BioPharma (MREO), The Times reported
without attribution.
---
Future Says on Track to Meet FY 2022 Guidance, Audience Growth
Returns
Future PLC said Friday that it is on track to achieve its
full-year guidance as the encouraging start to the second half of
fiscal year 2022 has continued.
---
M&C Saatchi Withdraws Recommendation for Next Fifteen
Takeover
M&C Saatchi PLC said Friday that it no longer considers the
takeover offer from Next Fifteen Communications Group PLC to be
fair and reasonable, as Next's share price has fallen since the
offer was made.
---
Glencore Raises Coal Guidance Amid Unprecedented Market
Conditions
Glencore PLC on Friday raised price and cost guidance for its
coal operations and said that the trading business is outperforming
expectations.
---
Curtis Banks Says COO Jane Ridgley Is Retiring
Curtis Banks Group PLC said Friday that its Chief Operating
Officer Jane Ridgley is retiring, and that it has started a search
for a successor.
---
Access Intelligence Sees 1H Revenue Increase Following Isentia
Buy
Access Intelligence PLC said Friday that revenue increased
significantly in its first half after the acquisition of media
monitoring, intelligence and insights company Isentia.
---
Allied Minds Names Bruce Failing as Interim Chairman
Allied Minds PLC said Friday that former senior independent
director Bruce Failing has assumed the role of interim chairman,
after former Chairman Harry Rein stepped down as planned.
---
Tesco 1Q Comparable Revenue Rose, But UK Sales Fell --
Update
Tesco PLC said Friday that like-for-like sales rose in the first
quarter of fiscal 2023, although U.K. revenue had a hit on an
on-year basis, and noted that its full-year guidance for its profit
and cash performance remains unchanged.
---
Directa Plus Says Performance Accelerated, Expects Major
Tender
Directa Plus PLC said on Friday that performance in the last two
months has accelerated and sales were in line with expectations as
it expects a major tender offer to be secured.
---
James Fisher & Sons Appoints New CEO
James Fisher & Sons PLC said Friday that it has appointed
Jean Vernet as chief executive officer with effect Sept. 5,
replacing Eoghan O'Lionaird.
---
Bidstack Group Appoints David Reeves as Chairman Designate
Bidstack Group PLC said Friday that it has appointed David
Reeves as chairman designate.
---
EnQuest Nonexecutive Chairman to Step Down
EnQuest PLC said Friday that nonexecutive Chairman Martin
Houston has decided to step down to pursue other business
interests.
Market Talk:
Diageo Likely to Face Stagflation Through Pricing
0904 GMT - Diageo's business model has the ability to absorb
cost-of-goods-sold inflation which makes the stock well positioned
to navigate through a stagflationary environment, Jefferies
analysts say in a research note. The London-based maker of Johnnie
Walker Scotch Whisky and Guinness Stout has been leveraging volume
growth, pricing, and premiumization--products with superior quality
and price--while productivity improvements are expected to generate
GBP1.2 billion in gross saving over the next three years which are
likely to become reinvestments, they say. "Despite potential
headwinds, we believe that Diageo can deliver within its guidance
range given the favorable industry backdrop and strong execution,"
the analysts say.(michael.susin@wsj.com)
Playtech Bid Deadline Extension Looks Encouraging
0901 GMT - Playtech has said progress continues to be made in
its discussions with bidder TTB Partners after the offer deadline
was extended, and this is an encouraging sign that there may yet be
an acceptable bid, Peel Hunt analysts Ivor Jones and Douglas Jack
say in a research note. The gambling-technology company said the
deadline has been extended to July 15, but Peel Hunt says a
takeover isn't the only option open to Playtech to release value.
The U.K. brokerage has a buy rating with a target price of 800
pence. Shares trade up 4.8% at 553.50 pence.
(kyle.morris@dowjones.com)
St. James's Place Likely to Grow in the Long Term Despite
Uncertainties
0810 GMT - St. James's Place is well positioned for long-term
growth despite facing short-term headwinds and uncertainties on
equity-market and consumer confidence, which are likely to persist,
Berenberg analyst Adam Barrass says in a research note. The analyst
adds that the FTSE 100 wealth-management group has derated along
with its peers and trades at a 35% discount. "We think St. James's
Place is well positioned to benefit from long-term structural
growth tailwinds, supported by high retention, low client price
elasticity, low net flow volatility and better relative advisor
growth prospects," Barrass adds. Berenberg has a buy recommendation
but downgrades price target to 1,550.0 pence from 1,750.0 pence.
(michael.susin@wsj.com)
Glencore's Trading Update Should Lift 1H Profit Expectations
0753 GMT - Glencore's trading update should lead to consensus
Ebitda upgrades heading into the first-half results, RBC's Tyler
Broda says. On coal, the company has guided for a higher price
discount to the benchmark and higher costs. However, Glencore has
also increased the benchmark Newcastle price forecast for the first
half and this is $30 a ton better than RBC expected, Broda says. As
for the marketing unit, the company said first half EBIT will
exceed $3.2 billion, which is well ahead of the $1.9 billion
consensus. "We continue to expect that Glencore's ability to return
cash is unsurpassed in the sector and the company remains
structurally better positioned than peers through an economic
downturn with coal tightness helping to insulate profitability,"
Broda says. (jaime.llinares@wsj.com)
Gateley Likely to Face Headwinds From Rising Interest Rates
0750 GMT - Gateley's fiscal 2022 update was positive, but
recruitment is proving to be difficult and its revenue mix is
exposed to rising interest rates, Shore Capital analyst Jamie
Murray says in a research note. The U.K. legal-and-professional
services provider is struggling to recruit amid a competitive
market as it hired only 29 fee earners--legal professionals that
generate income for the company--the lowest number since 2016,
Murray says. The analyst also expects 70% of revenue streams in
fiscal 2023 to be generated from corporate and property businesses,
which are likely to be affected by the Bank of England raising
rates further. (michael.susin@wsj.com)
Contact: London NewsPlus; paul.larkins@wsj.com
(END) Dow Jones Newswires
June 17, 2022 05:22 ET (09:22 GMT)
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