The FTSE 100 edged down as tension in Ukraine continues to weigh on global markets. London's blue-chip index closed 0.1% lower on Wednesday, although oil companies helped offset some losses. "We've seen a rebound in the oil price after yesterday's steep falls and this appears to be helping the energy sector, which acted as a drag on the FTSE 100 yesterday," CMC Markets UK said. BP closed 1.6% higher and Shell rose 2.0%. Gold miners were up too, with Polymetal and Fresnillo the best performing stocks on Wednesday. Conversely, Royal Mail fell 2.7%, booking the steepest loss of the session.
Companies News:
Coca-Cola Europacific Partners 2021 Revenue, Pretax Profit Grew
Coca-Cola Europacific Partners PLC said Wednesday that revenue and pretax profit rose on year in 2021 amid strong performance in a challenging environment and the acquisition and integration of Coca-Cola Amatil.
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Ocean Outdoor 2021 Revenue Rose
Ocean Outdoor Ltd. said Wednesday that 2021 revenue rose, and that it expects 2022 revenue and adjusted Ebitda to be ahead of that reported in 2019.
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Kerry Group 2021 Pretax Profit, Revenue Rose
Kerry Group PLC said Wednesday that its 2021 pretax profit and revenue rose, and that it expects to achieve further growth in 2022.
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RA International Sees 2021 Revenue Decline Due to Coronavirus Restrictions
RA International Group PLC said Wednesday that it expects 2021 revenue to decline, citing the impact of the coronavirus pandemic on in its business.
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Primary Health Properties 2021 Pretax Profit, Net Income Rose
Primary Health Properties PLC said Wednesday that its 2021 pretax profit rose together with its net rental income.
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DP Eurasia Proposes Additional Takeover Protections for Minority Shareholders
DP Eurasia NV said Wednesday that the board has proposed additional takeover protections for minority shareholders after the U.K. Takeover Code and Dutch takeover rules ceased to apply to the company as a consequence of Brexit.
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Treatt Appoints Ryan Govender as CFO-Designate
Treatt PLC said Wednesday that it has appointed Ryan Govender as chief financial officer-designate to replace Richard Hope.
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Clean Power Hydrogen Shares Rise in Stock Market Debut
Shares of Clean Power Hydrogen PLC rose as much as 47% on Wednesday as the company started trading on London's junior AIM, implying a market capitalization of 175.2 million pounds ($237.2 million).
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Novatek 2021 Pretax Profit Jumped on High Energy Prices
Novatek said Wednesday that pretax profit for 2021 rose due to significant increases in hydrocarbon prices.
Market Talk:
Indivior's 2021 Results Exceeded Market Views
1021 GMT - Indivior's 2021 results were above market consensus forecasts, with a top line driven by higher Suboxone sales, Jefferies says. The British pharmaceutical company also plans to significantly invest further in its Sublocade product--used to treat opioid addiction--in 2022, and guidance for the year met market expectations, Jefferies says. "While we expect some [Department of Justice] payments in 2021, in our view Indivior has significant opportunities to reinvest in the business and consider other uses of cash," Jefferies says, noting the company's $100 million share buyback in the second half of 2021 was well-received by the market. The U.S. bank retains its buy rating and 280.0 pence price target on Indivior. Shares are up 9.3% at 249.0 pence.
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Centrica Needs to Consider Potential Criticism for Declaring a Dividend
0956 GMT - Following the recent price cap increase on U.K. energy bills, Centrica will face public scrutiny as the owner of supplier British Gas, and therefore its board needs to consider the potential criticism declaring a dividend on Feb. 24, HSBC says. The bank no longer believes that Centrica will pay a dividend for 2021. However, current energy prices could drive a revaluation of Centrica's upstream oil-and-gas assets upwards, which should underpin its ability to pay dividends in the future, HSBC adds. Centrica cancelled the dividend in April 2020 in response to the Covid-19 pandemic.
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Coca-Cola Europacific Is Facing Rising Inflationary Pressure
0942 GMT - Coca-Cola Europacific Partners' 2021 results are OK, Citi says, but cost-of-goods-sold inflation expectations have worsened and its weaker profit outlook is likely to have an effect. The London-listed bottling company is now guiding for COGS per case inflation of around 5%, slightly worse than the 4%-5% range predicted at 3Q results, Citi says. On the upside, management says the triumvirate of pricing, revenue management and efficiencies should help to mitigate such inflationary inconveniences. Efficiencies savings and synergies from the Coca-Cola Amatil acquisition are also expected to help.
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Babcock's Acquisition of Remaining Australian JV Seen as Accretive to EPS
0931 GMT - Babcock International Group's agreement to acquire the 50% interest it doesn't own in its Australian Naval Ship Management joint venture from its long-term partner UGL Ltd. is an opportunistic move which strengthens its exposure to Australian defense outsourcing, Jefferies says. Although a small deal, at GBP32 million, it highlights the improved confidence in the balance sheet now that the planned disposal program is concluding, the U.S. bank says. "We estimate the acquisition would be around 3% accretive to EPS," Jefferies says.
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Next Bank of England Rate Increase Could Come in May
0923 GMT - After January's inflation data in the U.K. and expectations that prices are likely to continue to accelerate, the key question is whether the Bank of England will raise interest rates next in March or May, Berenberg says. The German bank expects policymakers to act in May, in a decision that is likely to be finely balanced. Waiting until May would give the Bank of England more time to assess the impact of the two recent rate increases and the effects stemming from the start of quantitative tightening, and would also help to realign market expectations for the bank rate, closer to the path that policymakers currently envision, Berenberg says.
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UK Inflation Peak Expected in April, Squeezing Household Incomes
0909 GMT - U.K. annual inflation rose again, reaching 5.5% in January, suggesting that underlying price trends are running fairly hot, with month-on-month rates still materially above seasonal norms, HSBC Global Research says. The bank says the peak hasn't been reached yet. The 54% increase in regulated utility prices set for this April is likely to lift annual inflation above the 7% mark that month, according to HSBC. "The cost of living squeeze, which tightened a little further in January, is set to get materially worse in April," HSBC says. January's inflation increase is consistent with HSBC's expectation of 25 basis-point bank-rate rises in March, May and August, taking the rate to 1.25%, economists at HSBC say.
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UK Inflation Expected to Continue Rising, BoE Seen Rising Rates
0906 GMT - U.K. inflation came in at 5.5% in January, with one of the largest contributors being the price of fuel, BRI Wealth Management says. "This hasn't been helped by the ongoing escalation between Russia and Ukraine," BRI Wealth Management adds. While part of the inflation increase was driven by a rise in prices, the base effect continues to play a large role, as prices were depressed last January due to lockdowns across the U.K., the wealth management company says. Data continue to point towards another few months of inflation rises but inflation should start to ease by April or May. Given the strength of the economy, the Bank of England will continue down the path of further rate rises, BRI says.
Contact: London NewsPlus, Dow Jones Newswires; Write to Sarka Halas at sarka.halas@wsj.com
(END) Dow Jones Newswires
02-16-22 1216ET
