The FTSE 100 closed Monday down 0.2% amid a widespread fall across global markets as investors await a speech by Federal Reserve Chairman Jerome Powell later this week, which may contain hints regarding further interest-rate rises. "Investors now think a recession in Europe and the UK is unavoidable, and are now expecting the Fed to have to make more hawkish noises about the likelihood of further rate increases into the fourth quarter of 2022 and beyond," IG Group PLC chief market analyst Chris Beauchamp says. Haleon leads a short list of gainers, closing up 2.8%, while among the top fallers was Scottish Mortgage Investment Trust, down 4.6%, followed by IAG, which fell 4.5%. 


Companies News:

Dev Clever Agrees to Three-Year, $30 Mln Financing Deal

Dev Clever Holdings PLC said Monday that it has agreed to a $30 million unsecured financing deal that significantly strengthens its balance sheet and enables the company to pursue its growth plan.

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Base Resources Shares Climb After FY 2022 Ebitda, Sales Rose on Better Prices

Base Resources Ltd. shares rose Monday after it said that its fiscal 2022 Ebitda and sales rose on improved mineral-sands prices as well as cost management.

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Dev Clever FY 2021 Pretax Loss Doubled on Higher Costs

Dev Clever Holdings PLC on Monday reported a more-than-doubled pretax loss for fiscal 2021 as it booked higher costs, and said that despite the impact on cash flows from the termination of a contract, the board is confident it can get enough funding to support the business.

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Marechale Capital FY 2022 Pretax Profit Rose on Investment Gains; Shares Rise

Shares in Marechale Capital PLC jumped Monday after the company said that pretax profit for fiscal 2022 rose primarily on the back of investment gains.

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Wizz Air CFO Jourik Hooghe to Step Down; Ian Malin Named as Successor

Wizz Air Holdings PLC said Monday that Chief Financial Officer Jourik Hooghe will step down to pursue other opportunities, and Ian Malin will join the company on Oct. 1 to take over the role.

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Smoove FY 2022 Pretax Loss Widened on Higher Costs; To Launch GBP5 Mln Buyback Program

Smoove PLC on Monday reported a widened pretax loss for fiscal 2022 after it booked higher costs, and said that it intended to launch a share buyback program of up to 5 million pounds ($5.9 million).

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Aptamer Group to Report Revenue Rise for FY 2022 on Strong Operational Performance

Aptamer Group PLC said Monday that revenue rose for fiscal 2022 on the back of a strong operational performance, and that this was in line with market expectations.

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Vodafone Group Enters Terms to Sell Vodafone Hungary for $1.78 Bln

Vodafone Group PLC said Monday that it has entered terms to sell the entirety of Vodafone Magyarorszag Tavkozlesi Zrt, or Vodafone Hungary, for an enterprise value of 715 billion Hungarian forint ($1.78 billion).

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Cineworld Confirms It Is Mulling Possible Voluntary Chapter 11 Filing in US

Cineworld Group PLC confirmed on Monday that it is considering filing for a possible voluntary Chapter 11 filing in the U.S. as well as associated proceedings in other regions. 


 
Market Talk:

Budget Airline Prices to Recover Slowly as Inflation Hits Consumer Spending

1408 GMT - Budget airline fare prices are expected to continue growing, but the impact of inflation on customers will mean they should recover slowly, UBS analyst Jarrod Castle says in a note. With consumers expected to spend significantly more on energy bills over winter--and low-income households set to be hit the hardest, potentially taking up more than 30% of available income--budget airlines won't be able to increase prices too quickly without putting them off, Castle says. While price rises are set to decelarate, Ryanair is seen as having the most supportive 3Q pricing environment on average with fares up around 88%, with easyJet up 52%, and Wizz Air up 15%, showing some improvement. "While we still expect volume recovery this recovery will likely be at the expense of pricing," the analyst says. (anthony.orunagoriainoff@dowjones.com)

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Diamond Miners Face Price, Demand Pressure

1403 GMT - Diamond miners are facing pressure from faltering prices and demand, Liberum Capital says, downgrading Petra Diamonds and Gem Diamonds to hold from buy. A combination of largely unchanged supplies from Russian diamond mining group Alrosa, despite Ukraine-related sanctions, together with emerging demand pressure, is now undermining prices, Liberum says. "Mid-stream, trade flows in and out of India remain unaltered, while synthetic supply growth is lifting sharply again," Liberum analysts say in a note. "Demand is resilient in the U.S. for now, but is weakening in China and Europe. All this, together with ballooning inflation, is squeezing cashflows. We downgrade Petra Diamonds and Gem Diamonds to hold." (philip.waller@wsj.com)

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Strike At UK's Felixistowe Port Forces Ship Diversions

0957 ET - An eight-day strike by dockworkers at Felixstowe, the UK's largest port, is forcing ocean carriers to divert dozens of vessels to other European harbors so as to avoid being stuck there for a week. The strike, which began Monday over higher pay, involves nearly 2,000 unionized and operators said they are diverting ships Le Havre in France, Antwerp in Belgium at to other UK ports like the London Gateway and Southampton. Felixstowe handles around 3.7 million containers a year, or almost half of all UK containerized trade. (costas.paris@wsj.com)

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Cineworld on 'Brink of Collapse' After Pandemic

1324 GMT - Cineworld is considering various options including voluntary bankruptcy in the U.S. as it teeters on the brink of collapse, Interactive Investor says in a research note. The pandemic hit the cinema operator hard with cinemas closed for months during lockdown and consumer preferences shifting towards streaming, says Victoria Scholar, Interactive Investor's head of investment. "Plus, Cineworld has been dealing with problems of its own with its GBP700 million damages bill for abandoning its takeover of Cineplex, landing the embattled cinema chain with an unmanageable debt pile," the investment platform says. Shares are down 23% at 3.15 pence. (joseph.hoppe@wsj.com)

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ConvaTec Shares Look Fairer Value After Results Rally

1323 GMT - ConvaTec Group shares look more appropriately valued after a results-related rally, Peel Hunt says, downgrading the medical-product company to add from buy and its price target to 250 pence from 285p. ConvaTec had a good first half and the gap between its shares and those of peers has narrowed, bucking wider market weakness so far this year, Peel says. The group's reiterated guidance further encouraged markets, the brokerage adds. Still, the share price has risen 9% following the results and a gradual downward/flat trend for margins since July 2020, alongside inflation, means the company might struggle to significantly exceed full-year margin guidance, Peel analyst Miles Dixon says in a note. Shares drop 1.9% to 234p. (philip.waller@wsj.com)

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Cineworld Gains After Confirming Bankruptcy Chatter

0938 GMT - Cineworld shares rise 3% after it confirmed media speculation it was considering filing for U.S. Chapter 11 bankruptcy. The cinema operator said it expected any filing to give it access to near-term liquidity and support a debt-reduction deal, though that would significantly dilute existing shareholders' equity. The company said it expects to maintain operations as usual until and following any filing and ultimately continue its business in the long-term. "Filing for U.S. bankruptcy to allow a financial restructuring probably gives Cineworld more flexibility than if the business went into administration under U.K. rules," AJ Bell investment director Russ Mould writes. "However, shareholders don't need a movie trailer to tell them more pain could be coming their way." (philip.waller@wsj.com)

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NatWest Set for Growth on Better Rates Gearing

0936 GMT - NatWest is one of the most rate-sensitive UK banks and is on track to deliver a return on tangible equity of 16% in 2024, Jefferies analysts say in a research note. Pre-provision profits are expected to increase by 14% for 2022, and 11% in both 2023 and 2024 on higher net interest income, driven by the Bank of England's rate increase, the analysts add. However, the bank is also expected to reduce costs by 2% in 2022, lower than management's guidance of 3%, the analysts say. Jefferies raises the stock's target price to 424.0 pence from 359.0 pence. (michael.susin@wsj.com)

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RBC Advises Selling GBP/CHF as Inflation Hurts UK Economy

0933 GMT - RBC Capital Markets expects the pound to suffer from high inflation hitting the economy and advises selling GBP/CHF, targeting 1.1100 with a stop at 1.1450, strategist Adam Cole says in a note. Sterling "saw no benefit" from last week's "sharp repricing of U.K. rates"--when high inflation pointed to more interest-rate rises--he says. Friday should see "another huge increase" in the U.K. energy price cap, increasing cost-of-living concerns, while Tuesday's PMI data should show a weakening economy. RBC favors selling sterling versus the Swiss franc, which shouldn't be too impacted by Friday's U.S. Federal Reserve Chair Jerome Powell speech. GBP/CHF falls to a two-year low of 1.1301, according to FactSet. RBC opened the trade at 1.1337. (jessica.fleetham@wsj.com)

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AstraZeneca Seen Among Worse Hit From US Healthcare Reform

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08-22-22 1214ET