The FTSE 100 closed down 0.36% Tuesday, as abysmal Chinese trade data and a possible windfall tax on banks in Italy drove investors firmly into risk-off mode in the afternoon, IG Group says. The losses started in Europe and have now spread to the U.S. making the odds of a sizeable correction much higher, IG's Chief Market Analyst Chris Beauchamp says in a market comment. Bank stocks took the brunt of European selling on the potential Italian bank windfall tax, Beauchamp says. "Where one country goes, others might follow, and with plenty of elections in coming months politicians across the continent might look to juice their poll ratings with hints of taxes on banks and indeed other sectors that could be accused of profiting while consumers struggle," Beauchamp says.


COMPANIES NEWS:

Spirax-Sarco CEO Nicholas Anderson to Retire; Nimesh Patel Named Successor

Spirax-Sarco Engineering's Chief Executive Officer Nicholas Anderson plans to retire early next year after ten years in the role and will be replaced by Chief Financial Officer Nimesh Patel.

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Wealth firm 7IM downsizes London HQ as private equity buyers circle -- Financial News

UK wealth manager moves into premises a quarter of the size of its offices in 55 Bishopsgate

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InterContinental Hotels Group Net Profit Rose on Improved Conditions

InterContinental Hotels Group said first-half net profit and revenue increased, driven by improved trading conditions, but that it expects the comparatives to 2022 in the second half to get tougher due to continuing economic uncertainties.

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Abrdn Pretax Loss Narrows; Extends Buyback

Abrdn posted a narrower pretax loss for the first half of 2023 as it reported higher-than-expected net outflows and extended its share buyback program.

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STM Group Gets Extension for PSF Capital Takeover Plan

The U.K. Takeover Panel has extended the deadline for PSF Capital Reserve to make an offer for STM Group, or walk away, until Aug. 22 so that the parties can continue talks and the due diligence process.

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SIG Says Pretax Profit Fell on Higher Costs; Conditions to Remain Challenging

SIG reported lower first-half pretax profit after booking higher costs, and said it expects conditions to remain challenging across end markets in the second half alongside further moderation in price inflation.

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Quilter Sees 2023 Profit Ahead of Views; Assets Under Management and Administration Rise

Quilter expects its adjusted profit for the year expected to be meaningfully ahead of current market expectations, assuming broadly stable markets after it reported a rise in its assets under management and administration for the first half.

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Adriatic Metals Raises GBP25.1 Mln via Share Placing

Adriatic Metals said it has raised 25.1 million pounds ($32.1 million) via the share placing first announced late Monday, slightly more than planned.

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IWG Pretax Loss Flat; Outlook Cautiously Optimistic

IWG's pretax loss for the first half was flat after it booked higher costs, but its outlook for the full year remains cautiously optimistic due to growing demand for hybrid working solutions.

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Rotork Pretax Profit Rose on Higher Revenue Due to Divisional Growth

Rotork said pretax profit rose in the first half as revenue increased on growth across all divisions, and that it entered the second half with a record order book.

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Amur Minerals Ends Takeover Talks With Ascent Resources

Amur Minerals said talks over a possible 2.4 million pound ($3.1 million) all-share takeover from Ascent Resources have ended.

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PHSC Shares Soar on Swing to Pretax Profit, Potential Share Buyback

PHSC shares soared on Tuesday after the company reported a swing to pretax profit for fiscal 2023, saying that it didn't book any impairments, and that the board is considering a third share buyback program.

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Abrdn Reports GBP4.4bn Outflows Amid Challenging Macro Climate -- Financial News

The FTSE 100 firm's pretax loss was GBP169m for the first half of the year compared with a pretax loss of GBP326m the previous year.

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MyHealthChecked Shares Fall After Dwindling Covid-19 Test Demand Hits Revenue

MyHealthChecked shares slumped to more-than three-year lows on Tuesday after the company said its first-half revenue was hurt by the reduction in demand for its Covid-19 lateral flow test kits for at-home use.

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Kore Potash Shares Fall on Discounted $1 Mln Fundraise

Shares in Kore Potash fell after the company announced it would raise $1 million via a discounted subscription and a convertible loan issue, and that it will use proceeds toward a contract related to the Kola potash project located in the Republic of Congo.

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Smartspace Software Backs FY 2024 Guidance After Revenue Rose

Smartspace Software said that revenue for the first half of fiscal 2024 rose 15% and that it expects to meet full-year market expectations on a constant-currency basis.

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TI Fluid Systems Shares Rise After Hiked Guidance, Dividend Policy

Shares in TI Fluid Systems jumped after the group raised its 2023 guidance and changed its dividend policy to target progressive annual growth, increasing shareholder payouts.

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Tirupati Graphite to Beat FY 2023 Production, Revenue by End of Month After Strong 1Q

Tirupati Graphite has reported a large rise in production and sales for the first quarter of fiscal 2024 and said that it expects to exceed last year's figures before the end of August.

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Videndum Delays Publication of 1H Results

Videndum is delaying the publication of its first-half results as it needs more time to finalize the report.

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Fletcher King Optimistic for FY 2024 After Rise in Pretax Profit, Revenue

Fletcher King fiscal 2023 pretax profit and revenue rose, and the company is optimistic for the forthcoming period, it said Tuesday.

MARKET TALK:

InterContinental Hotels 1H Looks Solid

1212 GMT - InterContinental Hotels' 1H is solid with an operating profit beat and confirmation of net unit growth of around 4%, Citi analysts Leo Carrington and Daniela Riu say in a note. The company is launching a new midscale conversion brand, which will add existing hotels to its chain, that will compete with a new brand by peer Marriott as well as other operators such as Choice Hotels International that are already operating in the midscale segment, the analysts say. Demand comments remain constructive with no consumer price resistance, solid demand and RevPar--a key industry metric--expected to remain positive year-on-year in all regions the rest of the year, analysts say. "We see the results as a neutral with solid profitability helpful, but still low visibility on a NUG-growth recovery," they say. (anthony.orunagoriainoff@dowjones.com)

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European Stocks Drop After China Trade Data Falls Short

1202 GMT - European stocks drop after mixed Asia trading and ahead of a likely lower U.S. open following downbeat Chinese trade data. The Stoxx Europe 600 drops 0.5%, the FTSE 100 retreats 0.7% and the DAX and CAC 40 backtrack 1%, with banks, automotive and oil stocks among the biggest pan-European losers. Brent crude slips 2.1% to $83.58 a barrel. IG futures data show the Dow opening at 35251, versus Monday's close of 35473. Australian stocks closed flat and Japan's Nikkei rose 0.4%, but mainland China, Hong Kong and South Korea markets fell after worse-than-expected Chinese imports and exports. "Earnings season continues to diminish in the pace of figures to be released, leaving inflation figures the main data to watch," IG analysts write. (philip.waller@wsj.com)

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Hiscox Shares Could Be Hit By IFRS 17 Confusion at 1H

1201 GMT - Volatility is seen hitting Hiscox's stock when the specialist insurer reports its first-half earnings on Wednesday, Morgan Stanley analysts say in a note. They expect results to be stable overall, from an economic point of view but note that this will be the first time the company has reported under IFRS 17 accounting standards and "due to the lack of proper consensus, the share price may experience volatility in the morning," they write. Analysts add that earned premiums are concentrated in 2H under the new accounting standard, which distorts the expense ratio in the 1H upward and means the combined ratio for the 1H will be slightly higher than what is expected in 2H. The broker rates the stock overweight. (elena.vardon@wsj.com)

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InterContinental Hotels Can Expand Capacity Without Much Fresh Capital

1130 GMT - InterContinental Hotels expects a full recovery from the pandemic by 2025 as it reports a notably big increase in 1H profit, AJ Bell analyst Russ Mould says in a note. Holidays remain a priority as people continue to look for a getaway using their stretched finances, Mould says. "The company's franchise-based model means it can expand capacity to meet returning demand without requiring lots of fresh capital," Mould says. Shares are up 2.3% at 5,788 pence. (anthony.orunagoriainoff@dowjones.com)


Contact: London NewsPlus, Dow Jones Newswires;


(END) Dow Jones Newswires

08-08-23 1204ET