London Stocks Seen Opening Lower as Traders Await US Inflation Data
0648 GMT - The FTSE 100 is expected to open 25.3 points lower, according to IG, having closed on Tuesday at 7527.53, tracking falls in Asian stocks and after falls in technology stocks dragged U.S. indexes lower. Oil prices remain high, with Brent crude staying above $92 a barrel, which may help oil-linked stocks but will raise concerns about risks to inflation and potential damage to the economy. Trade is expected to be cautious ahead of U.S. inflation data due at 1230 GMT, where headline CPI is expected to tick higher. A higher-than-expected number could raise the likelihood of another increase in U.S. interest rates, while traders will also be wary ahead of Thursday's European Central Bank decision. (jessica.fleetham@wsj.com)
COMPANIES NEWS:
Hornby Sales, Margins Improved; Full-Year View Unchanged
Hornby said that sales and margins have been better than previous year in the period from April 1 to Aug. 31, and that full-year expectations are unchanged.
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Aviva Sells Singlife Stake, Debt Instruments For $999.5 million
Aviva is selling its 25.9% stake in Singapore Life Holdings and two debt instruments to Sumitomo Life Insurance Company for around 800 million pounds ($999.5 million).
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St. James's Place Appoints Prudential PLC's Mark FitzPatrick as Its New CEO
St. James's Place has appointed Prudential PLC's Mark FitzPatrick as its new chief executive, replacing Andrew Croft who has been with the company since 1993.
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888 Holdings to Appoint Sean Wilkins as CFO
888 Holdings has appointed Sean Wilkins as chief financial officer with effect from Feb. 1, it said Wednesday.
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Frontier Developments Swung to FY 2023 Pretax Loss
Frontier Developments said its "F1 Manager 2023" game hasn't delivered the expected sales contribution as it reported a swing to a pretax loss after booking higher costs for fiscal 2023.
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Tullow Oil Narrows Full-Year Production View After Pretax Profit, Revenue Fell
Tullow Oil narrowed its full-year production guidance after pretax profit more than halved in the first half of the year, reflecting lower realized oil prices.
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Renishaw Delays Publishing of FY 2023 Results
Renishaw said it will delay publishing its fiscal 2023 results to Sept. 19 from the original Sept. 14 date.
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CAB Payments Pretax Profit Doubled
CAB Payments Holdings' pretax profit more than doubled in the first half of 2023 as performance across its foreign exchange and payments lines boosted revenue and said that it is confident on its growth prospects.
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Ricardo PLC Swung to FY 2023 Loss on Restructuring Costs; Raises Dividend
Ricardo PLC reported a swing to pretax loss in fiscal 2023 after booking impairments related to restructuring actions of its automotive and industrial established mobility segment, and rose its dividend payout.
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Hunting Backs Guidance, Sets 2030 Targets
Hunting has set targets in relation to its 2030 strategy, set to be revealed at its Capital Markets Day, and backed its guidance for 2023 and 2024.
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Duke Royalty Sees Second-Quarter Recurring Cash Revenue Ahead of 1Q
Duke Royalty expects its recurring cash revenue for the second quarter of fiscal 2024 to grow on year and on quarter as it reported record revenue for the first three months of the year.
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On the Beach Adjusted Pretax Profit at Top End of Views on Record Revenue, Soaring Bookings
On the Beach Group said it expects adjusted pretax profit for the year ending Sept. 30 to be at the top end of market expectations after bookings soared, revenue hit a record level and it benefited from higher-than-anticipated interest income.
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Redrow FY 2023 Boosted by Higher House Prices; Sees Lower Profit, Revenue in FY 2024
Redrow has reported a 60.6% rise in fiscal 2023 pretax profit as the average home selling price rose over the period, and re-introduced year-ahead guidance that is much lower.
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Sondrel CFO Joe Lopez Steps Down, Nick Stone Named Interim Replacement
Sondrel (Holdings) said that Chief Financial Officer Joe Lopez will stand down from the role with immediate effect and as a company director before Sept. 30 by mutual agreement, and that Nick Stone will become non-board interim CFO effective Thursday.
MARKET TALK:
UK Economy's July Decline Isn't a Harbinger of Recession, Pantheon Says
0656 GMT - Contraction in the U.K. economy can be pinned to one-off factors and as such shouldn't mark the start of a major downward trend, Samuel Tombs, chief U.K. economist at Pantheon Macroeconomics, says. Gross domestic product fell 0.5% in July, more than expected, with declines across the services, production and construction sectors. But services were hit by strikes in the health and education fields, while bad weather affected construction, distribution and food & accommodation, Tombs says in a note. Manufacturing might continue to decline, but a rise in real wages as inflation eases should boost services, ensuring that the wider economy avoids recession, he says. (joshua.kirby@wsj.com; @joshualeokirby)
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BP Could Return to Focus on Value Growth in Core Business After CEO Exit
0602 GMT - BP's appointment of CFO Murray Auchincloss as interim CEO following the departure of Bernard Looney could mean a return to more focus on value and value growth in the core business, RBC Capital Markets analyst Biraj Borkhataria writes in a research note. Under Looney, the energy giant's strategic direction necessitated divestment of underperforming oil assets and dividend cuts in order to reduce debt and pave way for investments in renewables. "We think investors have remained unconvinced on the strategic shift," Borkhataria says. "With Murray [Auchincloss] at the helm, we wonder if we could see a step back... to the future, with more focus on value and value growth in the core business," the analyst says. (christian.moess@wsj.com)
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BP Strategy Likely To Remain Despite CEO Departure
0547 GMT - BP's strategy looks set and is unlikely to change despite the resignation of CEO Bernard Looney, Citi says in a note. The news from the energy giant comes at a time when the market was finally starting to warm up to the company strategy, which had initially been a hard sell to investors, analyst Alastair Syme writes. "With a backdrop that Euro [international oil companies] are trading on a broadly similar valuation, we think bp's investor proposition of a New Energy pivot that is both profitable and scalable still offers broad-based investor appeal," he says. Citi rates the stock buy. (elena.vardon@wsj.com)
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BP CEO Departure Likely To Weigh, Add Uncertainty
0541 GMT - The resignation of BP's Chief Executive Bernard Looney is likely going to be seen as a negative even if the departure is unrelated to the energy giant's strategy or performance, Jefferies says in a note. The nomination of CFO Murray Auchincloss guarantees continuity with the strategy and he is seen as a likely internal replacement for the role, along with Chair Helge Lund, analyst Giacomo Romeo writes, adding the appointment of an external candidate wouldn't be the traditional option but can't be ruled out. "The increased level of uncertainty is also likely to reignite the M&A deal specs seen at the end of last year," Romeo adds. Jefferies rates the stock hold. (elena.vardon@wsj.com)
Contact: London NewsPlus, Dow Jones Newswires;
(END) Dow Jones Newswires
09-13-23 0316ET
