The FTSE 100 index finished 0.8% down on Wednesday as shares in wealth manager St. James's Place and consumer goods company Reckitt Benckiser plunged 19% and 13%, respectively. St. James's Place slashed its dividend on expected slow profit growth, while Reckitt Benckiser's full-year profit and sales dropped. Elsewhere, mining stocks were hurting on new Chinese concerns due to yet another real estate warning, Scope Markets analyst Joshua Mahony said in a market comment. "The weakness seen across the Australian ASX miners has been replicated in London, with declines in iron ore particularly showing recent demand concerns on a weak Chinese economic outlook." 


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COMPANIES NEWS:

Swisscom in Advanced Talks to Buy Vodafone's Italy Unit for $8.7 Bln

Swisscom is in advanced talks to buy Vodafone Group's Italy business for 8 billion euros ($8.68 billion) in cash and merge it with its Fastweb subsidiary, it said.

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Taylor Wimpey Pretax Profit Fell on Lower Completions

Taylor Wimpey said pretax profit fell as revenue decreased due to a fall in completions, and that its operating profit margin in the first half will reflect the slightly lower pricing in its order book.

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Reckitt Benckiser Sales Miss Expectations, Profit Drops

Reckitt Benckiser profit fell on one-off impairments as sales missed market expectations, but the company raised its dividend payout.

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St. James's Place Slashes Dividend Ahead of Charging Structure Changes

St. James's Place cut its dividend ahead of expected slower profit growth due to upcoming changes to its charging structure.

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Aston Martin Lagonda Pretax Loss Narrows As More Cars Sold at Higher Prices

Aston Martin Lagonda Global Holdings has reported a narrowed pretax loss for last year as it sold more cars at higher average prices.

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Halfords Cuts Profit Guidance Amid Challenging Consumer Backdrop

Halfords further downgraded its profit expectations, citing continued material weakening in three of its four markets.

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St. James's Place Slashes Dividend Ahead of Charging Structure Changes -- Update

St. James's Place cut its dividend ahead of expected slower profit growth due to upcoming changes to its charging structure and posted drop in its 2023 cash result on a one-off provision.

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Standard Bank Group Expects to Report Higher 2023 Earnings

Standard Bank Group said it expects to report that earnings per share rose last year.

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Derwent London Reports Widened Pretax Loss on Lower Property Values; Upgrades Guidance

Derwent London said its pretax loss widened on a fall in property values, but upgraded its rental growth guidance.

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Glanbia Launches Share Buyback After Profit Rise

Glanbia said pretax profit for 2023 rose supported by lower costs, and announced a share buyback program.

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Direct Line Insurance Group Shares Rise After Ageas Potential $3.93 Bln Takeover Offer

Shares in Direct Line Insurance Group jumped after Belgian insurer Ageas said it was considering a takeover offer valuing the British nonlife insurer at around 3.095 billion pounds ($3.93 billion).

MARKET TALK:

Taylor Wimpey's New Year Looks Like It Could Be Worse Than Last Year

1245 GMT - Taylor Wimpey results paint a picture for 2024 not too dissimilar to 2023 and potentially a little worse, Quilter Cheviot analyst Oli Creasey says in a note. Its 2024 guidance is to sell between 9,500 to 10,000 homes, with the middle of this range implying a 10% fall in volumes versus 2023, Creasey says. Moreover, management suggests profit margins will be lower in 2024--at least in 1H--as the forward order book has been sold at prices slightly below 2023's, he says. "2023 was not a great year for housebuilders, and it is of slight concern that 2024 is looking like being marginally worse, both in terms of volume and price," he says. Shares are down 5.55 pence, or 3.95%, at 135 pence. (anthony.orunagoriainoff@dowjones.com)

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FTSE 100 Falls Sharply as Reckitt Benckiser, St. James's Place Dive

1236 GMT - The FTSE 100 drops 0.8% to a 12-day low of 7620.37, significantly underperforming European peers due to a sharp slide for consumer-goods company Reckitt Benckiser and wealth-management firm St. James's Place as earnings spark concern. St. James's Place shares are down 26.1% at an 11-year low, after slashing its dividend in anticipation of slower profit growth due to changes to its charging structure. Reckitt Benckiser loses 11.9% after missing fourth-quarter revenue expectations. Housebuilder Taylor Wimpey falls 5% after reporting a fall in 2023 pretax profit. Banks and retailers are among the risers. In contrast to the FTSE 100, the pan-European Stoxx Europe 600 falls 0.3%. (jessica.fleetham@wsj.com)

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U.K. DMO Could Issue Around GBP240Bln via Gilt Sales in FY2024/25

1211 GMT - The U.K. Debt Management Office could announce around GBP240 billion of gilt supply in the fiscal year 2024/2025 in its financing remit following the U.K. Spring budget statement on March 6, TD Securities senior U.K. rates strategist Pooja Kumra says in a note. The DMO gilt issuance is likely to be skewed towards medium-dated gilts, Kumra says. Short-dated gilts are expected to outperform their long-dated peers ahead of the financing remit, TD Securities says, after strong performance in the long-end in the past couple of weeks. (miriam.mukuru@wsj.com)

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Ferrovial's Managed Lanes On Cruise Control, Jefferies Says

1206 GMT - Ferrovial's fourth-quarter reflected further traffic and pricing growth at the company's managed lanes, Jefferies analysts say in a research note. The NTE 35W highway in the U.S., for instance, contributed EUR251 million in dividends to Ferrovial in 2023. That highway exceeded Jefferies' estimates, the analysts say. "The U.S. portfolio is the key opportunity for FER, as the company is well placed to invest in a deep infrastructure pipeline," the analysts say. They add that the U.S. remains the company's key geography. Jefferies warns, however, that some degree of weakness could come in the near term and that traffic through the first and second quarters will be a key price-elasticity test after the mid-teen tariff increase in February. Shares trade 0.72% down to EUR34.50. (pierre.bertrand@wsj.com)

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Halfords Should Rethink Its Marketing, In-Store Space Use

1035 GMT - Halfords Group's profit warning due to weak consumer confidence and bad weather suggests it could have excess stock that it will have to clear somehow, AJ Bell investment director Russ Mould says in a note. Despite the fact that some of the motoring-and-cycling products provider's problems are out of its control, it is hard to ignore the chaotic state of its stores, Mould says, which according to him have some serious flaws. A lot of the stores don't have cycle departments on the ground floor--making customers lug their bikes up stairs--while the bikes for sale are crammed together and it perhaps needs to hire more bike technicians, he says. "Halfords must rethink how space is used in store and become smarter at marketing," Mould says. Shares are down 30%, their lowest level since Oct. 2022. (michael.susin@wsj.com)

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FTSE 100 Falls Sharply as Reckitt Benckiser, St. James's Place Dive

1236 GMT - The FTSE 100 drops 0.8% to a 12-day low of 7620.37, significantly underperforming European peers due to a sharp slide for consumer-goods company Reckitt Benckiser and wealth-management firm St. James's Place as earnings spark concern. St. James's Place shares are down 26.1% at an 11-year low, after slashing its dividend in anticipation of slower profit growth due to changes to its charging structure. Reckitt Benckiser loses 11.9% after missing fourth-quarter revenue expectations. Housebuilder Taylor Wimpey falls 5% after reporting a fall in 2023 pretax profit. Banks and retailers are among the risers. In contrast to the FTSE 100, the pan-European Stoxx Europe 600 falls 0.3%. (jessica.fleetham@wsj.com)

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U.K. DMO Could Issue Around GBP240Bln via Gilt Sales in FY2024/25

1211 GMT - The U.K. Debt Management Office could announce around GBP240 billion of gilt supply in the fiscal year 2024/2025 in its financing remit following the U.K. Spring budget statement on March 6, TD Securities senior U.K. rates strategist Pooja Kumra says in a note. The DMO gilt issuance is likely to be skewed towards medium-dated gilts, Kumra says. Short-dated gilts are expected to outperform their long-dated peers ahead of the financing remit, TD Securities says, after strong performance in the long-end in the past couple of weeks. (miriam.mukuru@wsj.com)

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Ferrovial's Managed Lanes On Cruise Control, Jefferies Says

1206 GMT - Ferrovial's fourth-quarter reflected further traffic and pricing growth at the company's managed lanes, Jefferies analysts say in a research note. The NTE 35W highway in the U.S., for instance, contributed EUR251 million in dividends to Ferrovial in 2023. That highway exceeded Jefferies' estimates, the analysts say. "The U.S. portfolio is the key opportunity for FER, as the company is well placed to invest in a deep infrastructure pipeline," the analysts say. They add that the U.S. remains the company's key geography. Jefferies warns, however, that some degree of weakness could come in the near term and that traffic through the first and second quarters will be a key price-elasticity test after the mid-teen tariff increase in February. Shares trade 0.72% down to EUR34.50. (pierre.bertrand@wsj.com)

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Halfords Should Rethink Its Marketing, In-Store Space Use

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02-28-24 1159ET