The FTSE 100 Monday closed up 1.7% as falling natural gas prices in Europe and hopes of inflation in the U.S. having peaked helped maintain and build on last week's rebound, CMC Markets UK analyst Michael Hewson says in a note. Furthermore, the shortage of earnings news has made it easier for the index and others to bounce, IG analyst Chris Beauchamp says in a note. Still, the Federal Reserve's next rate decision will soon loom large, Beauchamp notes. "The broader outlook still remains tough, and it makes sense to expect indices to reverse course in the weeks to come," Beauchamp says. Kingfisher was the day's biggest riser closing up 6.1%, followed by Howden Joinery and Tesco, both up 5.5%.
Companies News:
Australia's Financial-Intelligence Agency Investigates Entain
Australia's financial-intelligence agency said it has begun an investigation into a unit of U.K.-listed Entain PLC, which will consider whether the betting company breached anti-money laundering laws.
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Serco CEO Rupert Soames to Retire by September 2023; Mark Irwin Named Successor
Serco Group PLC said Monday that Chief Executive Rupert Soames intends to retire from the company by September 2023, and that Mark Irwin has been named his successor.
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Beeks Financial Cloud Says FY 2022 Has Been in Line With Market Views
Beeks Financial Cloud Group PLC said Monday that trading performance for fiscal 2022 has been in line with market expectations and that it expects to grow further in fiscal 2023.
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DFS Furniture Nonexecutive Chairman Ian Durant to Retire
DFS Furniture PLC said Monday that Nonexecutive Chairman Ian Durant will retire from the company on Nov. 4 during the conclusion of the annual general meeting.
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UK Oil & Gas Raises GBP3 Mln Via Discounted Placing; Guzyal Mukhametzhanova Named CFO
UK Oil & Gas PLC said Monday that it has raised gross proceeds of 3 million pounds ($3.5 million) via a discounted share placing and that Guzyal Mukhametzhanova has been named the company's new chief financial officer.
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Grainger FY 2022 To-Date Rental Growth Rose, Occupancy High
Grainger PLC said Monday that like-for-like rental growth for the first 11 months of fiscal year 2022 rose 4.5%, and occupancy levels remained high.
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Accsys Technologies Five-Month Wood Revenue Stable, Supported by Strong Demand
Accsys Technologies PLC said Monday that it has benefited from continuing strong demand and stable wood revenue in the first five months of fiscal 2023.
Market Talk:
Serco Shares Fall on 'Disappointing' News of CEO Retirement
0911 GMT - Serco Group shareholders were left disappointed after learning that CEO Rupert Soames is set to retire next year, AJ Bell's investment director Russ Mould says. The U.K. outsourcing company's outgoing CEO is widely credited as reviving Serco's fortunes, Mould notes. "Soames took on one of the largest turnaround stories on the market and has since put the business back on the right path," he says. Shares at 0849 GMT were down 11.80 pence, or 6.6%, at 168.40 pence. (sabela.ojea@wsj.com; @sabelaojeaguix)
House Builders Set for Tough 2023, Berenberg Says
0856 GMT - Next year is set to be the toughest operating environment for the house building industry since the global financial crisis, excluding the Covid-19 pandemic, Berenberg says as it downgrades eight companies. There is likely to be a combination of negative headwinds emerging simultaneously including expectations that price growth will lag build cost inflation, eroding margins, a decline in customer purchasing power as the cost-of-living crisis bites, and the end of the help to buy program, Berenberg analysts say in a research note. The German brokerage cuts Barratt Developments, Bellway, Berkeley Group, Crest Nicholson, Persimmon, Taylor Wimpey and Vistry to hold, all from buy. (joseph.hoppe@wsj.com)
Tate & Lyle's Mounting Pressures in Europe Prompts Downgrade
0812 GMT - Tate & Lyle's exposure to European sales could be at risk from 2H and beyond amid mounting cost pressures, Jefferies analysts Martin Deboo and Feng Zhang say in a research note. In order to curb inflationary pressures, the provider of food-and-beverage ingredients could have to increase pricing of FY 2023 contracts to above 20%, they say. "Tate have demonstrated impressive pricing power so far, 75% of Europe sales are specialties & EU sugar prices are rising, which should lift isoglucose. But there are limits to what customers will bear," the analysts say. Jefferies downgrades their recommendation on the stock to hold from buy. (michael.susin@wsj.com)
U.K. Jobs Data Could Be More Important for Pound Than Soft GDP Data
0801 GMT - The pound shows a mixed reaction, rising against a weaker dollar but falling against the euro, after data showed U.K. GDP expanded less than expected in July, and ING currency analyst Chris Turner says Tuesday's U.K. jobs figures will be more significant. "The adjustment for the June bank holiday makes the [GDP] figures a little difficult to read and we think the Bank of England will take more notice of tomorrow's August jobs data for insight into how tight the U.K. labor market really is," he says in a note. GDP grew by 0.2% in July, below WSJ poll forecasts of a 0.3% expansion. GBP/USD rises 0.5% to 1.1684; EUR/GBP rises to a three-month high around 0.8723. (jessica.fleetham@wsj.com)
Contact: London NewsPlus, Newswires; paul.larkins@wsj.com
(END) Dow Jones Newswires
09-12-22 1243ET
