FTSE 100 Ends Week With Solid Rebound Amid Continuing Russia-Ukraine War

The FTSE 100 on Friday closed up 3.9%, bouncing back from Thursday's sharp losses following Russia's invasion of Ukraine. "While the situation in Ukraine continues to keep markets on edge, we have seen a recovery in risk appetite this afternoon. Whether this lasts long into next week is a much bigger question," IG says.

Ukraine War Is Set to Slow Eurozone, UK Economic Growth This Year

1041 GMT - The war in Ukraine is likely to hit economic growth in the eurozone and the U.K. this year as higher energy prices and a deterioration in confidence cause a drag in consumer spending, Berenberg says. The eurozone economy is expected to grow 3.7% this year, down from 4.3% previously expected, and the U.K. is set to expand 4.3% instead of 4.8%, the German bank says. While higher food and energy prices would also take a toll on U.S. consumer spending, it could lead to more investment in shale that would mitigate the impact on aggregate demand, Berenberg says. The Russia-Ukraine conflict isn't expected to change the outlook for central banks significantly, it says. ([e-mail])

 
Companies News: 

Evraz Confirms Potential Exposure to Sanctions Against Russia

Evraz PLC said Friday that it is exposed to the effects of policies adopted by the Russian government, and that the worsening situation in Ukraine increases the risk of sanctions which could affect its operations.

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Rightmove 2021 Profit Rebounded to Above Pre-Pandemic Levels Amid Housing Boom

Rightmove PLC said Friday that pretax profit for 2021 rose above pre-pandemic levels on the back a housing boom driving up revenue per advertiser.

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Frasers Group Acquires Troubled Studio Retail's Operating Business for GBP26.8 Mln

Frasers Group PLC said Friday it has acquired digital retailer Studio Retail Group PLC's main operating subsidiary Studio Retail Ltd. and certain other assets for a consideration of 26.8 million pounds ($35.9 million).

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Pearson 2021 Pretax Profit Fell; To Buy Back Shares of Up to GBP350 Mln

Pearson PLC said Friday that pretax profit fell in 2021, raised its dividend payout and said it planned to buy back shares.

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IAG Expects 1Q Operating Loss, Return to 2Q Profit After 2021 Net Loss Narrowed

International Consolidated Airlines Group SA said Friday that it expects a significant operating loss in the first quarter before a return to profit in the second quarter, as it reported a narrowed net loss for 2021.

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Babcock International's Performance in 10 Months to Jan. 31 Was in Line With Views

Babcock International Group PLC said Friday that its performance in the first 10 months to Jan. 31 was in line with expectations, and that its outlook for fiscal 2022 was unchanged.

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Lukoil Buys 50% Stake in Area 4 Oil Project Offshore Mexico

Lukoil PJSC said Friday that it has completed the acquisition of a 50% stake in the Area 4 oil project offshore Mexico for $435 million plus expenditures of around $250 million.

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Alliance Trust 2021 Profit Rose Against Weak Comparative Year

Alliance Trust PLC said Friday that its 2021 pretax profit rose significantly on higher revenue and a weak comparative year, but missed its own performance benchmark.

 
Market Talk: 

IAG's 4Q Capacity Is Impressive But Lagging Behind Low-Cost Carriers

1116 GMT - Although IAG's 4Q increased passenger capacity to 58% of 2019's levels is impressive, the group--which owns Iberia and Vueling among others--lags budget carriers such as easyJet, which flew 71% of 2019 capacity in December, eToro says. This isn't surprising as it has been easier to jump on a short-haul flight compared with a long-haul one, meaning operators such as IAG have felt an outsize effect from the pandemic, the trading platform says. "Looking forward, we may see the industry's recovery disrupted by the troubles in Ukraine, although we expect the British Airways owner to continue to grow capacity, and perhaps edge closer towards profitability this year," eToro says. Shares are down 1.5% at 145.14 pence. ([e-mail])

Taylor Wimpey's 2021 Results Will Be Scrutinized for Clues to Its 2022

1116 GMT - Taylor Wimpey's full-year results on Thursday will likely see investors searching for any 2022 guidance as it continues its drive to return operating margins to the 21%-22% level, AJ Bell says. The house builder's results may also update investors on issues like cost pressures and pay increases, help clarify the role of the Help to Buy scheme for home buyers, and provide commentary on the company's plan to return cash to shareholders, the brokerage says. Taylor Wimpey has already disclosed a 47% increase in 2021 completions and a 3% increase in average selling prices, so with cost increases fully offset, analysts now forecast a 2021 operating profit of GBP820 million, AJ Bell says. Shares are up 1.4% at 143.0 pence. ([e-mail])

Oil Price Strength Offsets Risks to BP's Rosneft Cash Flows

1033 GMT - BP is likely to be seen as one of the oil companies most geared to Russia through its 19.75% shareholding in Rosneft, RBC Capital Markets says. Russia accounts for around a third of BP's production volumes, but estimated 2022 Rosneft dividends of $1.8 billion would only represent 5% of BP's cash flow from operations, the Canadian bank says. To put it into context, the $1.8 billion could be offset by a year-on-year increase of between $5 and $6 a barrel in the oil price. "We believe any hypothetical risk to cash received would be offset by rising geopolitical tensions," RBC says. The bank upgrades its recommendation on BP to outperform. ([e-mail])

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(END) Dow Jones Newswires

02-25-22 1201ET