The FTSE 100 index closed Thursday down 0.4% to 7595 points, lagging European peers after a disappointing update from the pharmaceutical giant Astrazeneca. The group missed expectations for core earnings for the quarter, prompting shares to drop 6.4% making it the worst performer of the index today. "Astra's poor performance since the summer has been a key driver for the FTSE 100's inability to keep up with its peers, and today's numbers suggest that weight will continue for the time being," IG chief market analyst Chris Beauchamp says in a note. SSE and home builder Persimmon follow on the list of worst performers, down 4.7% and 4.3%, respectively.

COMPANIES NEWS:

Compass Group Revenue Rose Driven by Strong Growth Across All Regions; Backs Guidance

Compass Group said that it had a strong growth across all regions in the first quarter of fiscal 2024 and backed its full-year guidance.

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Aviva's Acquisition of AIG Life to Be Probed by U.K. Regulator

The U.K.'s competition watchdog has opened an investigation into whether Aviva's acquisition of AIG Life would lead to a substantial lessening of competition within its markets.

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Unilever Net Profit Fell as Sales Missed Expectations, Launches Share Buyback

Unilever reported a better-than-feared net profit drop for 2023, following a turnover drop in the fourth quarter, and launched a share buyback.

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Anglo American's Production Fell as Expected on Planned Iron-Ore Slowdown

Anglo American's fourth-quarter production fell as expected, mainly due to a planned slowdown at its main iron ore operation in South Africa, as the company backed its 2024 outlook.

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SSE Sees Narrower Financial Outcomes Range on Lower Renewables Output; Backs Guidance

SSE said it noted a narrower range of probable financial outcomes for the fiscal year on lower-than-planned renewables output over the third quarter, and backed its adjusted earnings per share guidance.

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British American Tobacco Swings to Pretax Loss on U.S. Cigarette Write-Down

British American Tobacco said it swung to a pretax loss, driven by a previously reported write-down of its U.S. cigarette brands, but backed forecasts for growth in 2024.

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AstraZeneca Sees Double-Digit Growth for Core Earnings, Revenue in 2024

AstraZeneca sees its revenue and core earnings per share growing by double-digit percentages in 2024, the pharmaceuticals major said as it reported fourth-quarter results with revenue roughly in line with views and core earnings per share slightly below.

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Arcelik's Acquisition of Whirlpool's EMEA Domestic Appliances Provisionally Cleared by U.K. Regulator

The U.K. Competition and Markets Authority provisionally cleared Arcelik's acquisition of Whirlpool's EMEA major domestic appliances business as it believes consumers will continue to have a wide range of choice and it therefore doesn't raise any significant competition concerns.

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Avon Protection Confident of Achieving Strong Medium-Term Returns, Issues Financial Goals

Avon Protection said it was confident of delivering strong returns over the medium term, and issued its new medium-term financial goals.

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PPHE Hotel Group Appoints Greg Hegarty Co-CEO; Will Work Alongside CEO Boris Ivesha

PPHE Hotel Group said Greg Hegarty has been appointed co-chief executive officer effective immediately, and that he will work alongside company president and CEO, Boris Ivesha.

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Watches of Switzerland Revenue Fell on Weaker U.K. Demand

Watches of Switzerland Group has reported lower revenue for the third quarter of fiscal 2024, citing more pronounced volatility in luxury demand in the U.K., and it reiterated its downgraded guidance.

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British American Tobacco Swings to Pretax Loss on U.S. Cigarette Write-Down -- 2nd Update

British American Tobacco said it swung to a pretax loss, driven by a previously reported write-down of its U.S. cigarette brands, but backed forecasts for growth in 2024.

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TruFin Expects Narrowed Adjusted Pretax Loss on Higher Revenue

TruFin expects to report a narrowed adjusted pretax loss for 2023 on higher revenue.

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Sondrel (Holdings) Reports Strong Demand for ASIC Services, Trading in Line

Sondrel (Holdings) said demand for its application specific integrated circuit services, including in the U.S., remains strong and that it continues to trade in line with current market expectations.

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DS Smith Shares Jump on Mondi Takeover Approach

DS Smith shares jumped 12% after the company said it has received a highly preliminary expression of interest from larger peer Mondi over a possible offer, but that no proposal has been received at this stage.

MARKET TALK:

Unilever Still has Pockets of Weakness, AJ Bell Says

1017 GMT - Unilever's return to volume growth and improved sales margins would suggest that the group is performing well, however there are pockets of weakness which it still needs to resolve, AJ Bell investment director Russ Mould says in a note. The Anglo-Dutch retailer faced a big test over the past two years as high inflation prompted the group hike prices, passing on extra costs to the consumer, he says. Overall, the group has successfully managed it without particularly hurting sales volumes, however, some areas, such as Ice Cream saw a drop as shoppers opted for cheaper options, he notes. CEO Schumacher's comments that overall performance needs to improve shows that he is "striving for more and that new-found energy needs to resonate across the whole business," Mould adds. Shares are up 2.9%. (michael.susin@wsj.com)

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Anglo American Recovery in Production Should Ease Market Skepticism

1046 GMT - Anglo American reported a broadly in-line set of production figures, with most divisions reporting a double-digit sequential increase in production, meeting expectations, Citi analysts write in a research note. They highlight notably higher nickel production in the quarter, 6% ahead of Citi's expectations, while diamonds production was 4% higher than the bank's expectations. "Continued improvement in rate of production across the portfolio should be seen as reassuring for its full-year results due later this month and for the delivery on its 2024 production and cost guidance," the analysts say. Shares in the London-based diversified miner are up 1.4% at 1,778.80 pence. (christian.moes@wsj.com)

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SSE's Wind Farm Issues Could Be of Concern Given Peer's Priorities Refocus

1038 GMT - SSE backs adjusted EPS guidance whereas it was raised for the past two years mostly due to good performance from flexible thermal that more than offset lower-than-planned renewables output, UBS analysts say in a note. However, both are weak now and possible offshore construction delays stemming from adverse weather and maintenance on the turbine installation vessel at Dogger Bank wind farm are also a point in focus, analysts say. Although full operations could be delayed to 2025, and analysts don't expect an adverse impact on the internal-rate-of-return, the news will be of concern given peer Orsted's decision to cut costs, pause dividend payments over several years, sell assets and refocus business priorities, UBS says. Shares are down 1.9% at 1,622 pence. (anthony.orunagoriainoff@dowjones.com)

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SSE Backing its Guidance Should Be Well-Received

1003 GMT - Energy company SSE backs adjusted EPS guidance of more than 150 pence, despite lower-than-planned third-quarter renewables output narrowing the range of probable financial outcomes for FY 2024, RBC analysts Alexander Wheeler and Fernando Garcia say in a note. Still the thermal business is expected to meet GBP750 million operating profit guidance, with the market likely focusing here, especially after lower spark spreads--the difference between the wholesale market price of electricity and the production cost using natural gas--and the recent fall in commodity prices, the analysts say. The reaffirmed guidance should be well-received, they say, adding that the company's results are second-half weighted and management should now have higher visibility in this regard. Shares are down 1.9% at 1,622 pence. (anthony.orunagoriainoff@dowjones.com)

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Compass Group's Lack of Upgrade Is Seen as Conservative

0945 GMT - Compass Group's lack of organic upgrades may disappoint, Goodbody analyst Fintan Ryan writes in a research note. The U.K. catering contractor has reported a 11.7% rise in organic sales growth in the first fiscal quarter, which compares with consensus of 9.6%, and was driven by better-than-anticipated like-for-like volume growth in its business and industry segment. This reflects a solid performance, however guidance for high single-digit organic sales growth in fiscal 2024 remains unchanged, which seems to be conservative, Ryan says. Shares are up 3.5% at 2225.0 pence. (najat.kantouar@wsj.com)

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Anglo American Strong End to the Year Underlines Long-Term Potential

0939 GMT - Anglo American booked a strong finish to 2023, with production at key divisions in line with or above estimates, Barclays analysts write in a research note. Additionally, both realized prices and volumes were in-line or better than expected in most divisions except in met coal and diamonds, they say. Barclays sees significant longer-term upside and value-unlocking potential in the diversified miner, the analysts say. This is despite near-term downside risks to PGM and diamond volume guidance if markets fail to improve, while operational and volume recovery across most divisions will take at least a couple of years to deliver meaningful benefits, they say. Shares are up 2.2% at 1,790.60 pence. (christian.moess@wsj.com)

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SSE's Renewables P50 Assumptions Could Be Too High as 9-Month Performance Lags

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02-08-24 1217ET