FTSE 100 closes 0.3% lower as Royal Mail and B&M plunge

The FTSE 100 closed down 0.3% on Friday, but continued to outperform most global markets. “The energy sector is helping to keep the FTSE 100 afloat, helped by another two-month high for Brent prices, which maintains a floor under BP and Royal Dutch Shell,” said Michael Hewson of CMC Markets. However, that was not enough to offset the losses of companies such as Royal Mail, whose shares fell 5.6% after being placed on negative watch by JPMorgan Chase; or retailer B&M, which fell 5.3% after one of its shareholders sold a 4% stake in the company. Miners also underperformed, with Antofagasta down 3.9% and Polymetal down 2.9%.

 
Companies News: 

Cornerstone FS sees 2021 revenue growth boosted by new Asia team

Cornerstone FS PLC said on Friday it expects to report an increase in revenue for 2021, boosted by its new Asia team.

Good Energy urges shareholders to reject resolutions requested by Ecotricity

Good Energy Group PLC said on Friday it was urging shareholders to vote against resolutions to remove Chairman William Whitehorn and direct the board not to have the company’s production approval at a meeting in February.

Currys Lowers Fiscal Year Guidance, Says Christmas Performance Were Tough – Update

Currys PLC said on Friday that its performance during its peak Christmas period had been hurt by a drop in demand and that it had lowered its forecast for its adjusted pre-tax profit for the financial year.

Cornerstone FS completes convertible loan negotiation

Cornerstone FS PLC said on Friday it had concluded negotiations to change the terms of its convertible loan.

Secure Trust Bank’s new business loans hit a record high in Q4

Secure Trust Bank PLC said Friday that total new business loans rose significantly in the fourth quarter, hitting a record high for the lender.

Foxtons sells Douglas & Gordon sales business and integrates rental unit

Foxtons Group PLC announced on Friday that it has sold its sales business Douglas & Gordon Ltd. for nominal consideration to D&G’s managing director, James Evans, and integrated his rental business into his network.

Bellway appoints former Redrow chief John Tutte as incoming chairman

Bellway PLC said on Friday that former chief executive and executive chairman of Redrow PLC, John Tutte, will join the company as non-executive chairman designate on March 1.

Stock futures rise slightly ahead of bank profits – WSJ

US stock futures rose slightly ahead of earnings reports from major banks that could give some insight into the impact of the Omicron variant on the economy.

Global Oil Stocks Rise Following Favorable European Court Ruling

The shares of Global Petroleum Ltd. rose on Friday after it said the European Court had found its four permit applications off Italy did not breach European Union law.

Sensyne Health shares drop in funding agreement to continue operations

Shares of Sensyne Health PLC fell on Friday after it announced it had signed a £6.4m ($8.8m) funding deal with institutional shareholders because without funding it is unlikely to continue its activities beyond the beginning of February.

Castillo Copper drops plans to buy additional lithium assets

Castillo Copper Ltd. said on Friday that its board had decided to focus on developing the BHA’s eastern project area and drop plans to acquire Litchfield’s and Picasso’s lithium assets in Australia.

Minds + Machines will return £19 million to holders via a takeover bid; Stocks rise

Shares of Minds + Machines Group Ltd. rose 19% on Friday after the company announced plans to return up to 19 million pounds ($26 million) to shareholders via a takeover bid.

Simigon agrees to $8.5 million merger with new US company; Stocks rise

The shares of Simigon Ltd. rose 35% on Friday after the company announced it had agreed to merge with Power Breezer Sub Ltd. and Maxify Solutions Inc. in a deal that values ​​the company at $8.5 million.

Echo Energy to buy a 70% stake in a solar energy project in Chile

Echo Energy PLC said on Friday it had entered into an option agreement to buy a 70% stake in a 3-megawatt solar project in Chile, and raised 660,000 pounds ($904,464) which it will use for the project and as working capital.

Likewise Group PLC Completion of Acquisition and Update on Negotiation

TIDMLIKE

 
Market Talk: 

Copper stocks remain undervalued, says Jefferies

12:21 GMT – The market continues to underestimate the likely rise in the price of copper and its potential impact on copper mining stocks, as many investors focus primarily on near-term market dynamics rather than fundamentals ahead. longer term, Jefferies said. The U.S. bank estimates that copper mining stocks in its coverage value an average copper price of $4.41 a pound, below the current spot price of $4.52. And Jefferies expects the market to tighten, with prices averaging at least $5.50 in 2022-25. “We reiterate our buy ratings on Freeport[-McMoRan], Glencore, First Quantum and Antofagasta.”

SSE to pivot to international expansion in 2022

1204 GMT – 2022 will mark a year in which SSE will grow from a leading domestic offshore wind developer in the UK to an internationally oriented company with an expanded global footprint, RBC Capital Markets said. The energy group has announced its intention to launch tenders for offshore wind projects in the Netherlands. “These plans are embedded in SSE’s growth targets, and if successful, the Dutch auction would be part of SSE’s growth plans for net installed capacity to double through 2026, reaching 8 GW,” said RBC. Still, the bank warns that competition will remain high from all major industry players in the upcoming renewable infrastructure auctions.

UBS cuts its forecast for the euro against the pound

11:29 GMT – UBS Global Wealth Management lowers its forecast for the euro-pound exchange rate as it expects the Bank of England to raise interest rates further this year while the European Central Bank maintains its policy negative rates. “We are lowering our EUR/GBP forecast to 0.82 for end-March; 0.81 for end-June and end-September; and 0.81 for end-December (from 0.84, 0.83, and 0.82, respectively)” , say UBS analysts. EUR/GBP last traded at 0.8346. The market expects a 100 basis point hike in the BOE rate this year compared to 10 basis points for the ECB, according to analysts. The ECB is more likely to miss those expectations than the BOE, they say.

Experian’s growing trend set to continue

10:53 GMT – Experian’s strong third-quarter performance is expected to continue into 2023, with the group benefiting from a strategic position in the data economy-driven industry, Shore Capital said. The UK investment group expects a continued strong organic trend across the core business in North America, while UK metrics will become Experian’s focus for improvement. Shore Capital retains a buy recommendation on the stock. The shares are down 1.4% at 3,109 pence.

Strong UK GDP expansion unlikely to last

10:42 GMT – The UK economy’s 0.9% month-on-month growth in November indicates private demand remained strong ahead of Omicron, but the data is unlikely to point to a trend improvement in the outlook, the lender said. Citi economist Benjamin Nabarro. Seasonality likely played a notable role in the November data, with earlier Christmas shopping boosting transportation and warehousing services in particular, he says. “We continue to see significant challenges as we enter the first half of 2022,” Nabarro said. Economic activity is likely to face further pressures associated with the cost of living crisis, and while accumulated savings and continued post-pandemic normalization may prevent an outright contraction, momentum should be moderate, he says.

Ferguson’s capital markets day provided reassurance on many fronts, says Jefferies

1040 GMT – Ferguson’s financial markets day served as a helpful reminder of the company’s strong market positions and business model, Jefferies said. Mid-term expectations recently released by the UK plumbing and heating products retailer were particularly reassuring as they suggest room for further market outperformance and continued margin expansion from the high base in 2021, according to the report. American bank. “While top line growth is seen as the most obvious driver of margin expansion, management has also pointed to the incremental benefits of selling more own brand products – currently around 9% of sales , but generating double the gross margin of other products – and productivity initiatives,” says Jefferies, maintaining its buy rating on the stock with a price target of 15,212 pence. The shares are up 0.2 % at 12,830 pence.

UK GDP data appears to support rate hike bets, but sterling was little moved

0957 GMT – The pound reacted modestly to stronger than expected UK economic growth data as traders focused on other issues such as bond market dynamics, according to Monex Europe. However, the figures will serve as a “first point of confirmation” ahead of next week’s deluge of data to allow the Bank of England to raise interest rates again in February, the Monex currency analyst said, Simon Harvey. “The probability of a BOE rate hike in February has hovered around the 80% level for months now, as we expect next week’s data to push that rate higher along with the initial yield. Gilt.” The economy grew 0.9% month-over-month in November, versus 0.5% expected by analysts in a WSJ survey. GBP/USD rose 0.2% to 1.3740 and EUR/GBP fell 0.1% to 0.8347.

 

Contact: London NewsPlus, Dow Jones Newswires; Write to Sarka Halas at [email protected]

 

(END) Dow Jones Newswire

January 14, 2022 12:07 p.m. ET (5:07 p.m. GMT)

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