London's blue-chip index finished Monday's trading session roughly flat, edging down 0.03% at 7492.21 points. "A sharp rise in energy prices, along with concerns over an escalation outside the current counterparties of Hamas and Israel, as Israeli forces hit back hard, is keeping investors on edge," CMC Markets UK analyst Michael Hewson wrote in a market comment. The FTSE 100 has been a notable outlier, however, given the strong performance of its energy and defensive stocks, he added. Higher oil and natural-gas prices have boosted BP and Shell--which sat at the top of the index along with defense contractor BAE Systems--but weighed on its leisure and airline stocks.


COMPANIES NEWS:

Citigroup to Sell China Consumer Wealth Portfolio to HSBC

Citigroup agreed to sell its onshore consumer wealth portfolio in China to HSBC Holdings, progressing the wind-down of the U.S. bank's consumer business in the country.

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Metro Bank Secures $1.13 Bln Funding to Shore Up Balance Sheet

Metro Bank said it has secured 925 million pounds ($1.13 billion) in funding to fix its balance-sheet issues, adding that investors and bondholders will face a cut on their investments while Jaime Gilinski Bacal is set to become controlling shareholder.

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Rio Tinto Backs Pilbara Iron Ore Cost, Shipment Guidance

Rio Tinto said it backed its full-year guidance to cost and shipments for its Pilbara iron ore operations.

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Sirius Real Estate Posts Rental Rate Growth on Higher Sales

Sirius Real Estate said it saw strong results for the first half and in line with market expectations, with a group rent roll growth of 7.7% compared to a year earlier.

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Croda Cuts Full-Year Profit Views on Weak 3Q Performance

Croda International downgraded its profit expectations for the year after reporting that its third-quarter performance was weaker than expected.

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Vertu Motors Expands Buyback Program

Vertu Motors will extend the current share buyback programs to utilize the remaining 1.0 million pound ($1.2 million) authorized as well as launch a further GBP3 million buyback under the same program, the U.K. car retailer said Monday.

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Mincon Group 3Q Revenue Fell on Weak Sales in Africa and Cancelled Project

Mincon Group has reported a revenue fall in the third quarter with lower margins, caused by sales weakness in the mining industry associated with exceptional expenses to implement a cost-reduction program.

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Assura 1H Annualized Rent Rose on Portfolio Expansion; Refinances Credit Facility

Assura said performance for the first half of fiscal 2024 has been robust as it continued to focus on strategic expansion areas.

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Doric Nimrod Air Two to Sell Two Airbus Aircrafts to Emirates for GBP57.8 Mln

Doric Nimrod Air Two said it will sell two Airbus aircrafts for 28.9 million pounds ($35.4 million) each to aircraft carrier Emirates, once their leases expire.

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Hercules Site Services Wins Five-year Contract with Balfour Beatty Rail

Hercules Site Services said on Monday that it has signed a five-year contract to provide Balfour Beatty Rail with a contingent labour resource, which will enable it to deliver its commitments during a five-year period starting in April.

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Impax Asset Management's Assets Under Management Fell on Quarter

Impax Asset Management Group said that its fourth-quarter assets under management decreased when compared with the last quarter and investment conditions remain challenging.

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Chaarat Gold CEO Mike Fraser Resigns

Chaarat Gold Holdings said Monday that Chief Executive Officer Mike Fraser has resigned, with Executive Chair Martin Andersson and Chief Financial Officer David Mackenzie leading the business until a successor is appointed.

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Mind Gym Shares Dip After Warning of FY 2024 Performance Below Expectations

Mind Gym shares slipped after the company warned that profit for fiscal 2024 is anticipated to miss market expectations as clients are deferring training and commitment to new spend on the back of inflationary pressures.

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DX (Group) Extends Takeover Proposal Deadline

DX (Group) said it has extended the deadline for a takeover proposal from H.I.G. European Capital Partners to Nov. 6.

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Jadestone Energy Shares Rose On Increased Borrowing Capacity

Shares in Jadestone Energy rose 12% after the company said it has increased its borrowing capacity for the next sixth months, ensuring significant liquidity ahead of its Indonesian Akatara field starting production.

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LXI REIT Portfolio Value Falls Sequentially on Decreased Rental Value

LXI REIT said its portfolio valuation fell sequentially at the first half of fiscal 2024 due to rising interest rates and a reduction in rental growth.

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Empiric Student Property Names Joanne Pollard to New Role of COO

Empiric Student Property said it has appointed Joanne Pollard to the newly created role of chief operating officer, as it continues to scale its platform.


MARKET TALK:

Europe Stocks Drop as Oil, Defense Gain, Airlines Fall

1152 GMT - European stocks fall and oil prices rise as investors ponder the outbreak of conflict in the Middle East. The Stoxx Europe 600 drops 0.3%, the CAC 40 retreats 0.6% and the DAX backtracks 0.8%, though the FTSE 100 gains 0.1%. Brent crude surges 3.3% to $87.38 a barrel, boosting the likes of BP, Eni, Repsol, Shell and TotalEnergies. Defense stocks Leonardo, Thales, Dassault Aviation and BAE Systems gain, but airline groups IAG, Air France-KLM and Deutsche Lufthansa drop as investors wonder how attacks on Israel will affect air travel. IG futures data show the Dow opening at 33236, versus Friday's close of 33407. "A risk-off mood could well prevail for the time being, at least until the conflict's scope becomes clearer," IG analysts write. (philip.waller@wsj.com)

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Israeli Companies Likely to Suffer Varying Impacts From Conflict

1151 GMT - The extent to which Israeli companies will be hit by an attack from armed group Hamas will likely vary significantly depending on their asset exposures, which is unclear for now, Citi strategists say in a research note. Companies like ICL Group have assets in areas that have been affected by recent events, while gas producer Energean has assets in the northern part of Israel and further away from the conflict, Citi says. The impact on banks will depend on how the economy responds, Citi says. "Given the recent events, we anticipate investors' appetite for new issuance to be tempered. Therefore, it is likely that the primary market activity for Israel's banks and corporates is likely to be shut in the near-term," Citi says. (adria.calatayud@dowjones.com)

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Speculators Switch to Net Sterling Short Position, Could Herald Future Gains

1120 GMT - Speculators shifted to a net short sterling position for the first time since April in the week to October 3, a trend which might eventually lead to a recovery in the U.K. currency, Patrick Munnelly, market analyst at Tickmill Group, says in a note. The switch follows a sharp contraction in net long sterling positions in the week ending Sept. 26, he says, citing Commodity Futures Trading Commission data. "Some analysts suggest that the GBP may regain strength once speculators are short, potentially leading to a short squeeze and a rebound in the currency's value." (emese.bartha@wsj.com)

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Metro Bank Could Issue New Expensive Debt in Due Course

1116 GMT - Metro Bank could issue "new expensive" debt to stay above the group's minimum regulatory requirements of 21.2% for the minimum amount of equity and subordinated debt a firm must maintain (MREL ratio), Shore Capital Markets says in a note. Metro Bank announced a rescue agreement to strengthen its capital position by raising GBP150 million of new equity and GBP175 million of new debt along with a GBP600 million debt refinancing deal. The actions will result in Metro bank's Common Equity Tier 1 (CET1) capital increasing to over 13% while its MREL ratio will increase to over 21.5% from 18.1% at 30 June 2023, Shore Capital Markets says. (miriam.mukuru@wsj.com)

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UK Banks Seen Without Readacross from Metro Bank

1114 GMT - Established, larger U.K. banks aren't seen with any read-across from Metro Bank Holdings' fall out, Citi analysts write in a note after the Financial Times reported over the weekend that NatWest, Lloyds Banking, Santander, JP Morgan and HSBC decided not to pursue a deal for the troubled lender. "Metro Bank has a lower starting capital position and weaker organic capital generation vs large-cap listed peers, making it harder to absorb subsequent regulatory developments (higher buffers)," they write, adding that Metro's costly branch network and need for a potential capital injection deterred would-be buyers from acquiring the group. On Sunday evening, Metro Bank secured a GBP925 million financing deal with investors. (elena.vardon@wsj.com)

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Metro Bank Rescue Raises Concern in Corporate-Bond Market

0945 GMT - Metro bank rescue deal which involves a debt refinancing agreement and a write-down of 40% of the GBP250 million of outstanding tier 2 bonds is concerning for bond investors, Shore Capital Markets analysts say in a note. "This process disrupts the normal order of seniority with bondholders taking a hit before equity holders have been completely written down, thus echoing the Credit Suisse rescue where AT1 holders were written off entirely," they say. The group also plans to issue GBP175 million of "new (expensive)" minimum requirement for own funds and eligible liabilities (MREL) debt, raising the MREL ratio to more than 21.5% versus the group's minimum regulatory requirements of 21.2%, the analysts say. (miriam.mukuru@wsj.com)

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Croda International Drops After Downbeat 3Q Trading

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10-09-23 1216ET