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%.

 
Companies News: 

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 know:

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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.

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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.

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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.

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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.

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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.

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Alliance Pharma Names New Auditor After KPMG Resigns Over Corporate Concerns

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.

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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.

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East Star Resources Wins New Exploration License at Kazakhstan's Talairyk Project

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.

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Bidstack 1H Pretax Loss Slightly Widens; Revenue Significantly Rose

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.

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ECO Animal Health Sees Lower FY 2022 Revenue, Ebitda; Expects Tax Settlement

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.

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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 notes.

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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.

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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.

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TheWorks.co.uk Lowers FY23 Expectations; Raises 1Q Underlying Ebitda Forecast

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.

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Randall & Quilter 1H Gross Written Premiums, Fee Income Rose

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.

 
Market Talk: 

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. (renae.dyer@wsj.com)

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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. (maitane.sardon@wsj.com)

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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. (anthony.orunagoriainoff@dowjones.com)

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Next Won't Likely Acquire Joules Group's Entire Share Capital

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. (sabela.ojea@wsj.com; @sabelaojeaguix)

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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." (philip.waller@wsj.com)

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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. (jaime.llinares@wsj.com)

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BHP's Offer for OZ Minerals Makes Sense Strategically, AJ Bell Says

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. (jaime.llinares@wsj.com)

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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. (kyle.morris@dowjones.com)

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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 website." (philip.waller@wsj.com)

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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. (michael.susin@wsj.com)

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Lok 'n Store Update Shows Strong Performance, Positive Outlook

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. (joseph.hoppe@wsj.com)

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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. (kyle.morris@dowjones.com)

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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." (philip.waller@wsj.com)

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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. (renae.dyer@wsj.com)

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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. (william.horner@wsj.com)

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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. (sabela.ojea@wsj.com; @sabelaojeaguix)

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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. (joseph.hoppe@wsj.com)

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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. (yusuf.khan@wsj.com)

 

Contact: London NewsPlus, Dow Jones Newswires;

 

(END) Dow Jones Newswires

August 08, 2022 12:40 ET (16:40 GMT)

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