The FTSE 100 closed up 0.6% on Monday with gains across the
index after trade data out of China showed exports rose 18% in
July. "Everyone continues to look for the beginning of the next leg
lower, but it stubbornly refuses to begin. Friday's jobs report
seemed to provide the spark, but the new week has begun with gains
as investors continue to take the positive view," says Chris
Beauchamp, chief market analyst at online trading platform IG.
Investment platform Hargreaves Lansdown ended the day as the
biggest riser, up 7.2% after Deutsche Bank raised its price target
for the stock, followed by Rolls-Royce, which ended up 4.5%.
Legal & General Looks Set to Report a 1H Without Surprises
-- Earnings Preview
Legal & General Group PLC is scheduled to report results for
the first half of 2022 on Tuesday. Here's what you need to
Cenovus to Increase Downstream Capacity With Refinery-Stake
Acquisition in Ohio
Cenovus Energy Inc. said it will acquire BP PLC's 50% interest
in the bp-Husky Toledo refinery in Ohio for $300 million, bringing
the refinery under its full ownership.
Gama Aviation 1H Revenue Rose, Adjusted EBIT in Line
Gama Aviation PLC said Monday that first-half performance has
been solid, with revenue seen more than 20% higher on year and
adjusted earnings before interest and taxes seen in line.
Mosman Production Increased in FY 2022
Mosman Oil & Gas Ltd. said Monday that its fiscal 2022
production increased, and that output for the first quarter of
fiscal 2023 has improved.
Tungsten West FY 2022 Pretax Loss Widened on Higher Costs
Tungsten West PLC said Monday that its pretax loss for fiscal
2022 widened after the miner booked higher costs, and that it was
in discussions with financing partners regarding the construction
of the Hemerdon tungsten and tin mine in England.
Diversified Energy 1H Net Loss Widened Despite Production Boost
to Adjusted Ebitda
Diversified Energy Co. reported Monday a significantly widened
net loss for the first half of 2022, although its underlying
performance improved on the back of higher production.
Alliance Pharma Names New Auditor After KPMG Resigns Over
Alliance Pharma PLC said Monday that it has appointed Deloitte
LLP as its auditor for 2022, after KPMG LLP--its auditor for six
years--stepped down over corporate-governance concerns.
ADVFN Chairman Michael Hodges Steps Down
ADVFN PLC said Monday that Michael Hodges was stepping down as
chairman and director with immediate effect, and that David Gold
will become nonexecutive chairman.
East Star Resources Wins New Exploration License at Kazakhstan's
East Star Resources PLC said Monday that it has been awarded a
new exploration license comprising 59 blocks at Kazakhstan's
Talairyk heavy rare-earth elements project.
Bidstack 1H Pretax Loss Slightly Widens; Revenue Significantly
Bidstack Group PLC said Monday that its first-half revenue rose,
though its pretax loss widened marginally on increased cost of
sales and administrative expenses.
ECO Animal Health Sees Lower FY 2022 Revenue, Ebitda; Expects
ECO Animal Health Group PLC said Monday that it expects its
fiscal 2022 revenue and Ebitda to fall on year, and that it also
expects to have to pay a substantial tax settlement.
Tirupati Graphite Raises GBP1.5 Mln Via Convertible Notes
Tirupati Graphite PLC said Monday that it has raised 1.5 million
pounds ($1.8 million) by a private placement of convertible loan
PageGroup 1H Pretax Profit Rose; Expects 2022 Op Pft in Line
With Market Views
PageGroup PLC said Monday that its first-half performance in
2022 was robust across all its businesses and markets despite the
macroeconomic backdrop, and that it expects to deliver full-year
operating profit in line with market views.
Lamprell Losses Widened in 2021 Despite 15% Revenue Growth
Lamprell PLC on Monday reported a widened loss for 2021, as
higher costs more than offset revenue growth in the year.
TheWorks.co.uk Lowers FY23 Expectations; Raises 1Q Underlying
TheWorks.co.uk PLC said Monday that it has lowered significantly
its expectations for fiscal 2023, even though it now also
anticipates a stronger underlying Ebitda result for the first
quarter of the financial year.
Randall & Quilter 1H Gross Written Premiums, Fee Income
R&Q Insurance Holdings Ltd. said Monday that gross written
premiums for the first half increased by more than 80%, driven by
the robust performance of its program management business.
Pound Faces Hit From UK Political Uncertainty, Stagflation
1448 GMT - Sterling looks set to depreciate amid political
uncertainties and acute stagflation in the U.K., Generali
Investments says. The U.K. is probably facing the most adverse
stagflation--weak growth combined with high inflation--dilemma
among advanced economies, Generali analyst Thomas Hempell says in a
note. "Coupled with political uncertainties (U.K. Prime Minister
Boris Johnson's succession, North Ireland protocol showdown with
EU) and shaky risk sentiment, this leaves more downside for GBP
versus USD, but less so against a similarly troubled EUR," he says.
Barbell Approach Seems Best for Inflation-Led Slowdown
1327 GMT - In the U.S. and Europe, ESG investors looking to
position for slowing growth and inflation should consider adopting
a barbell approach, which usually involves investing in assets at
both ends of the risk spectrum, Bernstein analysts say in a note.
They say investors in those regions should consider owning quality
stocks at a reasonable price while adding value stocks to their
portfolio, which usually perform better in high-inflation periods.
"If we head into a recession, quality, low volatility, and yield
are the factor exposures that tend to hold up best in such an
environment," Bernstein adds. In Asia, defensive stocks with low
volatility, high yield, and high quality are also better positioned
in today's macro environment, the U.S. brokerage says.
Clarkson Is Reaping the Benefits of Structural Improvements
1259 GMT - U.K. shipping-services provider Clarkson delivered a
record first-half result on the back of its performance in the
broking division, Liberum analyst Gerald Khoo says in a note.
Although the company has benefited from a supportive shipping rate
environment, with positive trends in nearly all market segments,
this masks the structural improvement made during tougher times,
and the potentially persistent rebalancing of supply and demand in
the shipping industry, he says. "Having positioned itself
appropriately beforehand, it is now reaping the full benefits,"
Khoo says. Liberum has a buy rating and 4,750 pence target price on
the stock. (firstname.lastname@example.org)
Next Won't Likely Acquire Joules Group's Entire Share
1220 GMT - Next doesn't typically buy companies outright, so it
seems unlikely that an initial investment in Joules Group will lead
to a full takeover, AJ Bell's financial analyst Danni Hewson says
in a research note. But we can expect the FTSE 100-listed fashion
retailer to become an influential shareholder of the fashion brand
and to see more of Joules's products to appear on Next's website,
Hewson says. "In essence, Next can offer more products on its
website which makes it more attractive to customers, and it also
earns a fee for handling the e-commerce needs of third parties,"
Hewson adds. Shares are up 0.2% at 6,454.00 pence.
European Stocks Advance Ahead of Expected US Gains
1219 GMT - European markets rise after upbeat Asia trading and
ahead of an expected higher U.S. open following last week's
better-than-expected July non-farm payrolls. The Stoxx Europe 600
and DAX gain 0.8%, the CAC 100 climbs 1% and the FTSE 100 advances
0.6%. Brent crude drops 0.9% to $94.10 a barrel. Markets in
Australia, mainland China, Japan and South Korea rose, but Hong
Kong's Hang Seng fell 0.8%. IG futures data show the Dow opening at
32951, versus Friday's close of 32803. "While the Hang Seng fell
overnight, other markets in Asia made some modest gains as
investors continued to digest the impact of Friday's U.S. job
report," IG analysts say in a note. "Monday sees little in the way
of big data." (email@example.com)
Desalination Plant Completion Is Critical for Antofagasta
1132 GMT - The completion of the desalination plant at Los
Pelambres, Chile, due in the fourth quarter, is critical for
Antofagasta to relax current water constraints at the site,
allowing copper production to recover next year, Peel Hunt says.
This is a critical catalyst for the group and something that should
materially enhance the resilience of the company, the investment
bank says in a note. Rising output over the next few years should
position the company well for a strong copper market, and
short-term elevated costs allow investors an entry point, Peel Hunt
says, reiterating an add rating on the Chilean miner.
BHP's Offer for OZ Minerals Makes Sense Strategically, AJ Bell
1120 GMT - Big mining companies have shied away from making
large acquisitions for years, but with commodity prices soaring
there is now a stronger temptation to start doing big deals once
again, AJ Bell's Danni Hewson says. BHP has finally caved in with
an attempt to buy OZ Minerals, which has been rejected, she says.
However, the near-$6 billion offer makes sense strategically and it
will be interesting to see if BHP shows restraint in its pursuit of
OZ Minerals and the extent to which it is willing to put more money
on the table, Hewson says. (firstname.lastname@example.org)
Playtech Snai Sale Could Be Transformative
1054 GMT - A sale by Playtech of Italian betting company Snai
would make strategic sense and transform it into a pure B2B
business while providing for a material capital return to
shareholders, Peel Hunt analysts say in a research note. In the
event of a sale, the gambling-technology company would become a
key, more digestible acquisition target in a sector that continues
to consolidate, the analysts say. Elsewhere, taking Caliente to the
U.S. has the potential for greater long-term value, they add. Peel
Hunt reiterates its buy rating on the stock with a target price of
800 pence. (email@example.com)
Joules Shares Soar Amid News of Talks With Next
1054 GMT - Shares in Joules Group surge 45% after the fashion
and homeware brand confirmed media speculation that it was in talks
with Next about selling a stake to the FTSE 100-listed fashion
retailer and using the latter's online services. Joules might
follow in the footsteps of other brands that use Next's 'Total
Platform' system to increase their sales without large capital
costs, operational risks or time developing sophisticated
infrastructure, AJ Bell says. "Next doesn't typically buy companies
outright, so it seems unlikely that an initial investment in Joules
will lead to a full takeover," AJ Bell financial analyst Danni
Hewson writes. "Instead, expect to see it become an influential
shareholder and for more of Joules's products to appear on Next's
PageGroup Looks Able to Face Short-Term Slowdown
1018 GMT - PageGroup reported a strong 1H performance on Monday,
but management remains aware of the worsening macroeconomic
backdrop following a slowdown in July, Davy Research analyst David
Greenall says in a research note. Although the market expects a
slowdown in 2H, this should only be temporary, Greenall says,
adding that the recruitment company already proved its ability to
cope with a severe short-term dip during the pandemic. The Irish
research firm has an outperform recommendation on the stock.
Lok 'n Store Update Shows Strong Performance, Positive
1017 GMT - Lok 'n Store's year-end statement for fiscal 2022
describes continued strong trading and a positive outlook, FinnCap
says. The self-storage company's revenue rose, high occupancy
levels were maintained and early performance from new stores has
been strong, FinnCap analyst Guy Hewett says in a research note.
"We reiterate our view that the current portfolio and development
pipeline will support a share price of 1,550 pence--with 50%
upside--with further upside to come from future additions to the
pipeline," the U.K. investment bank says.
Playtech Might Benefit From Restructuring
0901 GMT - Playtech could benefit from a wholesale restructuring
of the business by either its own management or a third party,
Deutsche Bank analyst Simon Davies says in a research note. The
gambling-technology company is trading 30% below the October 680
pence cash offer from Aristocrat, which failed to pass a
shareholder vote for approval, Davies says. The German bank sees a
favorable valuation gap between the company's stock and that of
other gambling-technology peers. Deutsche upgrades its rating on
the stock to buy from hold, but lowers the target price to 602
pence from 693 pence. Shares trade down 0.8% at 466 pence.
Clarkson's Outlook Looks Bright Despite Choppy Waters
0912 GMT - Clarkson drops 2% after the FTSE 250-listed
shipbroker reported higher first-half profit, revenue and dividends
and said the outlook was strong despite geo-political uncertainty,
inflation and supply-chain disruption. Shipping demand far
outstrips supply, creating conditions allowing firms like Clarkson
to increase their prices, financial-services firm eToro says. "As a
result, Clarkson has had a very strong first half, reporting record
revenue and profit, a strong cash position and an increasing
dividend, something it has done for the past 19 years," eToro
analyst Mark Crouch says in a note. "There are continued risks for
the firm--both macro-economic and geo-political--but it will
confront them from a very strong financial position and an
unrivaled market position." (firstname.lastname@example.org)
Pound's Fall on UK Recession Fears Capped by Rate-Rise Bets
0834 GMT - The prospect of the Bank of England delivering
another large interest rate rise likely limited sterling's declines
after the central bank forecast a U.K. recession at its last
meeting, ING says. "Sterling probably has not sold off more since
investors do not quite know what to do with a reserve currency that
will be backed by rates at 2.25% if we are correct with our BOE
call for the September meeting," ING analyst Chris Turner says in a
note. The BOE raised its key rate 50 basis points to 1.75% last
week. Since the euro should remain soft, EUR/GBP may struggle to
rise above 0.8450 this week, Turner says. EUR/GBP falls 0.1% to
0.8427 and GBP/USD rises 0.2% to 1.2093. (email@example.com)
Oil Ticks After Chinese Trade Data
0754 GMT - Oil prices tick higher, supported by economic data
from China. Brent crude oil rises 0.7% to $95.53 a barrel while WTI
adds 0.6% to $89.55 a barrel. China's exports grew at a
faster-than-expected pace last month, suggesting the major economy
isn't yet feeling the impact of a slowdown in Western economies.
Meanwhile, Russia-related supply risks will put a floor under
prices, Capital Economics says in a note. A limited supply increase
from OPEC+ means the oil market is likely to remain tight and
prices should remain close to $100 a barrel, the firm says.
Next Might Have Miscalculated Investment Plans
0751 GMT - Fashion retailer Next might have overshot its
investment plans in the online channel in relation to the
acquisition of a minority stake in fashion brand Joules Group,
Jefferies analyst Eleonora Dani says in a research note. The
potential investment in Joules marks another client for Next's
total platform, but the U.K.'s Revenue and Customs investigation
into whether Next paid below the minimum wage indicates that the
business has undertaken more than it can deal with, the bank says.
Jefferies has a hold recommendation on the stock and a target price
of 6,444 pence a share. Shares at 0739 GMT were up 24.00 pence, or
0.4%, at 6,468.00 pence a share. (firstname.lastname@example.org;
AstraZeneca's Enhertu U.S. Approval Was Faster Than Expected
0739 GMT - AstraZeneca's Enhertu breast cancer treatment has
been approved for use in the U.S. earlier than expected, Shore
Capital says. The pharmaceutical major's approval, while expected
based on overwhelmingly positive trial data, comes much faster than
anticipated, highlighting the FDA's recognition of Enhertu's
remarkable efficacy, Shore analysts Susie Jana and Sean Conroy say
in a research note. "Enhertu has the potential to become
best-in-class and we believe it can garner a significant share of
the HER2+ metastatic breast cancer market," the investment group
says. Shore reiterates its buy recommendation, which it said is
based upon its "industry-leading earnings growth and pipeline
prospects." Shares are down 0.9% at 10,774 pence.
Metals Inch Higher Amid Positive China Trade Data
0717 GMT - Metals prices are inching higher after China saw
better than expected export figures for July. Three-month copper is
up 0.5% to $7,928 a metric ton while aluminum is up 0.6% to
$7,435.50 a ton. Gold meanwhile is flat at $1,790.60 a troy ounce.
China's exports and trade surplus both beat expectations with the
former 18% higher in dollar terms and the trade surplus hitting
$101.3 billion in July. Stephen Innes, managing partner at SPI
Asset Management says in an email that China's trade figures eases
some concerns over falling global demand, weighed down by rising
prices and higher interest rates. However, Innes adds that
manufacturing data still remains weak, weighing on commodity prices
for now. (email@example.com)
Contact: London NewsPlus, Dow Jones Newswires;
(END) Dow Jones Newswires
August 08, 2022 12:40 ET (16:40 GMT)
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