London Stocks Fall in Early Trade; Oil Stocks Fall

0802 GMT - The FTSE 100 index falls 0.6% to 7504.74 in early trade on caution ahead of a speech by Federal Reserve Chairman Jerome Powell later this week, when he is likely to hint at further interest-rate rises. "The general summer lethargy also weighed on sentiment in U.K. markets, where further monetary tightening is also likely to continue," writes Richard Hunter, head of markets at Interactive Investor. "A further leg down in the oil price on demand concerns weighed on BP and Shell, with some weakness in recovery stocks such as International Consolidated Airlines offset slightly by some tentative buying within defensives," he says. International Consolidated Airlines drops 2.9%; Shell falls 1.2% and BP by 0.8%; pharma giant AstraZeneca gains 0.9%. (jessica.fleetham@wsj.com) 


 
Companies News:

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:

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

0926 GMT - The U.S.'s healthcare reforms will affect pharma companies' earnings from next year, Credit Suisse analysts say in a research note. The U.S. Inflation Reduction Act limits price increases for Medicare to the rate of inflation, and allow for government price cuts on some drugs via direct negotiation--the reform causing the most concern for pharma companies--Credit Suisse says. The measures will likely bleed through into commercial pricing over time as well, the bank says. Among European pharma names, AstraZeneca could be more affected as patients could get important savings on some of its drugs under Medicare, while Novartis scores poorly on historical price rises, although this doesn't necessarily indicate future trends, it says. Sanofi has limited exposure, while Roche screens surprisingly well despite high U.S. exposure, it adds. (cristina.roca@wsj.com; @_cristinaroca)

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Cineworld Investors Set for More Pain in Next Act

0917 GMT - Cineworld, which has confirmed Friday's WSJ report that it could file for Chapter 11 bankruptcy in the U.S., is now paying for overly aggressive growth and reliance on using huge amounts of debt to buy U.S. chain Regal, AJ Bell investment director Russ Mould says in a research note. The acquisition may have made Cineworld one of the largest global cinema operators, but bigger isn't necessarily better and the pandemic exposed the company's strained balance sheet. Filing for bankruptcy in the U.S. to allow a restructuring of its finances probably gives Cineworld more flexibility than administration under U.K. rules, but shareholders are likely to expect more pain in the future, the brokerage says. Shares are down 0.9% at 4.03 pence. (joseph.hoppe@wsj.com)

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European PMIs Seen Moderating Further in August

0824 GMT - The European flash purchasing managers indexes are expected to moderate further in August, both in the eurozone and the U.K., according to Goldman Sachs. The American bank expects the eurozone composite PMI to decrease to 49.2 from 49.9 in July and the U.K. composite PMI to decline to 50.8 from 52.1. Economists polled by the Wall Street Journal forecast the eurozone composite PMI at 49.0 and the U.K. composite PMI at 51.0 in August. Goldman Sachs forecasts the eurozone decline to be broad-based across countries, led by France and Spain, where the levels of PMI still remain above 50, while across sectors, the bank expects the decline to be skewed towards services. The European flash PMIs will be published Tuesday. (maria.martinez@wsj.com)

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UK Inflation Expected to Peak at More Than 18% in January

0808 GMT - Following the further 25% rally in U.K. gas prices and the 7% increase in electricity prices last week, Citi has updated its inflation forecasts. Citi now expects U.K. inflation to peak at more than 18% in January. This is based on the assumption of a GBP300 policy offset applied to household energy bills from October through to 2024, economists at Citi say. The key news this week is likely to be the Ofgem price cap announcement for October, according to Citi. The bank expects the typical dual fuel tariff to increase to GBP3,717, which compares to a base price for the current calendar year of GBP1,285.(maria.martinez@wsj.com)

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Aptamer's Collaborations Could Further Improve Its Prospects

0800 GMT - Aptamer's update shows clear progress in executing its post-IPO strategy as it deploys proceeds from the IPO to develop its platform and convert customer interest into revenue, Liberum analyst Edward Thomason says in a note. The biotechnology company's momentum is building, and although there was an outperformance on cash, funds continue to be deployed to capitalize on the growing development pipeline and accelerate revenue further, Thomason says. "All existing collaborations continue to progress including potentially material projects with major pharma and life science tool companies that could significantly further improve the company's prospects," he says. Liberum rates the stock a buy and has a 270.0 pence target price. Shares are flat at 96 pence. (anthony.orunagoriainoff@dowjones.com)

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Oil Weakens as Western Leaders Discuss Iran Deal

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08-22-22 0720ET