The FTSE 100 closed down 1.4% to 7561 points, in line with global peers and mainly dragged by commodity-exposed stocks after ratings agency Fitch downgraded the U.S. credit rating to AA+ from AAA, CMC Markets U.K. chief market analyst Michael Hewson says in a note. Retailer Ocado lead the index top fallers, down 5.6%, followed by Endeavour Mining, down 5.2% after posting a 2Q net loss. Defense company BAE closed up 6.4%, leading a handful of companies in positive territory, after reporting strong 1H operating profits on the back of higher total sales, while ConvaTec shares rose 6.3% after reporting a 1H revenue rise and raising its full-year guidance Hewson adds.


COMPANIES NEWS:

ConvaTec Raises Guidance After Strong 1H, Boosted by AWC Business

ConvaTec Group raised its full-year guidance after reporting a 65% rise in pretax profit for the first half of the year due mainly to a strong performance from its advanced wound care business.

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Taylor Wimpey Profit Slips Due to Lower Completions, Inflation

Taylor Wimpey's first-half pretax profit fell on lower completions and inflation, but said it expects full-year completions at the top end of prior guidance.

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Haleon Raises Guidance After Revenue Grew Ahead of Expectations

Haleon on Wednesday raised its full-year guidance as it reported a better-than-expected 10.4% organic revenue growth for the first half of 2023 on pricing and positive volume mix.

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Endeavour Mining Swung to 2Q Net Loss on Lower Production, Margins

Endeavour Mining swung to a second-quarter net loss on lower volumes of gold sold at lower margins and higher costs, but backed its full-year view.

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Blancco Technology Agrees to GBP175 Mln Takeover by Francisco Partners

Blancco Technology Group has agreed to a 175 million pound ($223.6 million) takeover by Francisco Partners.

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Genel Energy Halts Dividend Due to Continued Closure of Iraq-Turkey Pipeline

Genel Energy on Wednesday suspended its dividend as a result of cash-flow hit from the closure of the Iraq-Turkey export pipeline.

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BAE Systems Raises Guidance After Pretax Profit Grew on Strong Orders; Launches $1.9 Bln Buyback

BAE Systems raised its full-year forecast after reporting a rise in first-half pretax profit reflecting record order books as governments spend more on defense.

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Virgin Money UK Backs Guidance; Starts GBP50 Mln Buyback

Virgin Money UK backed its full-year guidance as mortgages and its net interest margin were stable in the third quarter, and said it expects to buy back around 175 million pounds ($223.6 million) in shares for 2023.

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Oxford BioDynamics Raises GBP5.6 Mln via Share Placing, Subscription

Oxford BioDynamics has raised 5.6 million pounds ($7.2 million) via a share placing and subscription announced late on Tuesday.

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Ferrexpo Pretax Profit Fell on Lower Production, Weaker Prices

Ferrexpo said pretax profit and revenue fell in the first half of the year on lower production and realized prices.

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Coca-Cola Europacific Eyes Takeover of Coca-Cola's $1.8 Bln Philippines Bottling Business

Coca-Cola Europacific Partners said Wednesday that it is considering together with Aboitiz Equity Ventures to buy Coca-Cola Beverages Philippines from The Coca-Cola Company, valuing it at around $1.8 billion.

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Kerry Group Pretax Profit Rose, Backs Adjusted EPS Guidance

Kerry Group said pretax profit for the first half rose as revenue increased, and backed its adjusted earnings per share guidance for the year.

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Coca-Cola Europacific Profit Rose; Increases 2023 Guidance on Strong Performance

Coca-Cola Europacific Partners said that first-half pretax profit and revenue significantly increased, and raised guidance for the full year based on its strong performance to date.

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Permanent TSB Group Raises View on Higher Interest Rates After Swing to Pretax Profit

Permanent TSB Group Holdings on Wednesday raised its guidance for 2023 on the back of higher interest rates as it swung to pretax profit for the first half of the year.

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GreenRoc Mining Raises GBP470,000 in Share Placing to Fund Work on Graphite Ore Project

GreenRoc Mining said Wednesday that it has raised 470,000 pounds ($600,472) in a share placing which allows it to finalize the preliminary economic assessment of the Amitsoq graphite ore project in September.

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Spirent Communications Remains Confident in Outlook Despite Pretax Profit Fall

Spirent Communications said Wednesday that its pretax profit dropped in the first half of the year on an industry-wide slowdown in customer spending but it backed its outlook for 2023.

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IP Group Pretax Loss Narrowed on Lower Costs

IP Group said Wednesday that it expects its portfolio to deliver strong returns over the next 12 to 18 months after it narrowed its loss in the first half of the year.

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Property Franchise Revenue Rose Slightly on Letting Fees

Property Franchise Group's first-half revenue rose 1%, driven by a continued focus on growing lettings revenue, the company said Wednesday.

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CAP-XX Shares Fall After Revenue, Earnings Seen Lower

CAP-XX shares fell on Wednesday after the group said it expects lower revenue and a wider loss in fiscal 2023 as it saw lower-than-expected sales improvement during the year.

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Ibstock Backs Full-Year View Despite Dropping Profits

Ibstock has backed it full-year guidance despite its pretax profit falling in the first half of the year.

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Gamma Communications Saw Growth in All Segments; Backs 2023 Views

Gamma Communications said Wednesday that it performed well in the first six months of the year with all business segments contributing to improved earnings, and reiterated its full-year guidance.

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Deltex Medical Restored Shares Drop on Discount Fundraise Completion

Deltex Medical Group shares slumped after its listing was restored on Wednesday as it completed a 1.9 million pound ($2.4 million) fundraising and capital reorganisation.

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Deepverge CFO Andrew Waters to Step Down

Deepverge on Wednesday said Andrew Waters resigned from his role as chief financial officer and director after almost six months in the company.

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Home REIT Says Two Tenants Have Entered Creditors' Voluntary Liquidation

Home REIT said Wednesday that Redemption Project CIC--a tenant of 152 properties in its portfolio making up 11% of rent demanded in June--has entered into creditors' voluntary liquidation.

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R.E.A. Holdings Shares Slip After Revenue Seen Falling on Lower Selling Prices

R.E.A. Holdings shares fell on Wednesday after the company said it expects revenue for the first half to be significantly lower on year due to static production volumes and lower selling prices in the period, but sees a more positive outlook in the second half.

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Bushveld Minerals Cuts Full-Year Views on Operational Issues

Bushveld Minerals on Wednesday lowered its full-year production guidance and raised its cost guidance due to challenges at its Vametco mine and a weak performance at its Vanchem facility.


MARKET TALK:

Virgin Money UK's Net Interest Margin Stability Is Key

1002 GMT - Virgin Money UK's net interest margin evolution into fiscal 2024 is key for the market, UBS analysts Jason Napier and Sanjena Dadawala write in a note after the financial-services company's third-quarter update. The company guided for a stable second-half NIM on the first-half's 1.91%. This implies a fourth-quarter exit rate of 1.89% against consensus of 1.91% for fiscal 2024, they note, adding that the bank advises the on-quarter decline is from deposit pass-through lagging of Bank of England hikes and that stable NIM from there is still the base case. "Key for the company is delivering top line stability; growth in business and unsecured lending helps, deposit mix change and flow mortgage spreads are pivotal," the analysts say. (elena.vardon@wsj.com)

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Virgin Money UK's Larger-Than-Expected Buyback Opens Door for More

0956 GMT - Virgin Money UK announcing GBP175 million in share buybacks for fiscal 2023 was larger than expected, and there is room to expand this further, Citi says in a note. Analysts see scope for a further GBP125 million program during the course of 2024 given its stronger transitional CET1 ratio of 14.9% and the group's intention to run it down to 13%-13.5% by the end of fiscal 2024, they write. "After the first-half disappointment on costs and asset quality [the unchanged outlook] should go some way to providing reassurance, while the buybacks should be taken well," the analysts say. They see low-to-mid single digit increases to consensus earnings per share mainly on the share count decline from larger buybacks. Shares rise 3.1% at 181.2 pence.(elena.vardon@wsj.com)

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Ibstock's Solid Performance In Tough Conditions Supports Its Backed Guidance

0953 GMT - Ibstock displayed a resilient performance in the first half-year despite weak end markets, UBS analysts write in a research note. The U.K. manufacturer of PVC products' revenue dropped 14% on material volumes declines, but adjusted Ebitda was surprisingly resilient at GBP63 million, only down 11%, the analysts say. Full-year adjusted Ebitda is seen by UBS to be around GBP110 million, which "assumes that second half-year Ebitda moderates sequentially to high GBP40-millions, which looks realistic," the analysts say. UBS rates the stock a buy with a 235-pence price target. Shares are up 5.5% at 160.30 pence. (christian.moess@wsj.com)

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Haleon's New Guidance Implies Downgrade to Profit Views

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08-02-23 1204ET