FTSE 100 Closes Down 0.6% Despite Boost for Oil, Mining Stocks

The FTSE 100 Index closed Tuesday down 0.6% dragged by the industrial and business-service sector, which offset oil and mining gains on a rebound in crude oil prices. Copper miner Antofagasta lead the table closing up 3.3%, followed by Shell with a 3.3% increase, as Brent crude advanced 3.2% to $99.63 on news that OPEC may cut supply if Iran signs the nuclear deal. "The OPEC decision to broach the issue of supply restrictions does highlighting their willingness to regain control over prices after a volatile two-year period," IG Group PLC senior market analyst Joshua Mahony says. Among the top fallers, Ocado dropped 5%, followed by Informa, which fell 4.4%.

 
Companies News: 

PCF Group Gets Further Extension to Castle Trust Takeover Deadline

PCF Group PLC said Tuesday that the U.K. Takeover Panel has extended the deadline for Castle Trust Capital PLC to either make a formal offer for the company or walk away in order for talks and the due diligence process to continue.

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Serabi Gold's London Shares Fall After Court Upholds Coringa Project Ruling

Serabi Gold PLC's London-traded shares fell 9.9% on Tuesday after the company said that a Brazilian court has upheld an appeal that it needs to prepare an extra study on the Coringa gold project in Northern Brazil, and despite the company saying the ruling doesn't change its immediate plans.

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Kromek Group Raises GBP1.1 Mln to Reduce Potential Supply Chain Disruptions

Kromek Group PLC said Tuesday that it has raised 1.1 million pounds ($1.3 million) via an issue of convertible loan notes to existing shareholders.

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Pebble Beach Systems CFO David Dewhurst Resigns

Pebble Beach Systems Group PLC said Tuesday that David Dewhurst has resigned as chief finance officer and a director of the company with immediate effect.

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Fusion Antibodies FY 2022 Pretax Loss Widened Slightly; Revenue Rose

Fusion Antibodies PLC said Tuesday that its pretax loss widened slightly in fiscal 2022 on increased cost of sales and administrative expenses, though revenue rose 15%.

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Alba Mineral to Buy Remaining Stake in Clogau Gold Project; Shares Rise

Alba Mineral Resources PLC shares rose early Tuesday after it said that it has agreed to buy the entire remaining stake in the Clogau gold project in Bontddu, Wales.

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CyanConnode Holdings FY 2022 Pretax Loss Narrowed as India Contracts Drove Revenue

CyanConnode Holdings PLC said Tuesday that its fiscal 2022 pretax loss narrowed as revenue rose 49% on the back of major contracts in India being rolled out throughout the year, and that it expects momentum in the markets where it operates to continue growing.

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Amte Power Meeting Management Views; Close to Commercial Volume Production

Amte Power PLC said Tuesday that it is performing in line with its expectations, and it is close to commercial volume production for its high-value cells.

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Norman Broadbent CFO, COO Steve Smith Resigns

Norman Broadbent PLC said Tuesday that Chief Financial Officer Steve Smith has resigned from his role to pursue other business opportunities.

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RM PLC Swung to 1H Pretax Loss on Lower Margins, Higher Costs

RM PLC said Tuesday that it swung to a pretax loss due to lower operating profit margins and higher expensed investment program costs, despite an increase in revenue.

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Saga Continues to Strengthen Senior Management Team With Three New Hires

Saga PLC said Tuesday that it has made three senior leadership appointments as part of its growth strategy.

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Wood Group 1H Pretax Loss Widened as Revenue Fell, Missed Guidance

John Wood Group PLC said Tuesday that pretax loss widened for the first half of 2022 as revenue fell and missed guidance.

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Mulberry Chairman Godfrey Davis to Step Down; Successor Named

Mulberry Group PLC said Tuesday that Nonexecutive Chairman Godfrey Davis is to step down from the board on Sept. 30 and will be replaced by Andrew Christopher Roberts, effective from the same date.

 
Market Talk: 

Sterling Could Fall as UK Economy Grapples With High Inflation

1345 GMT - Sterling could weaken in coming months as the risks facing the U.K. economy are building, Rabobank says. Some market estimates of U.K. inflation are moving to "heady levels" amid speculation that the energy regulator could announce on Friday that it will raise the price cap for energy bills, Rabobank forex strategist Jane Foley says in a note. "The risk that CPI inflation could return to levels not seen in nearly 50 years would deepen the recession that is on its way for the UK and further frighten GBP investors." Rabobank expects EUR/GBP to rise to 0.86 in the next six months from 0.8445 currently, although this depends on how the eurozone copes this winter with the energy crisis, Foley says. ([e-mail])

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RM Makes Progress, But Still Has Work to Do; Shares Slide

1334 GMT - RM PLC shares slump 42% to 57 pence after the U.K. education-technology group blamed higher costs for lower first-half adjusted operating profit and suspended its dividend due to higher debt. RM made progress in 1H, but more remains to be done, Peel Hunt says. "There are some green shoots, with one brand reporting a record 1H, another winning competitive deals and group revenue growth of 4%," Peel analysts say in a note. "However, its transformation plan is taking longer and inflation is causing pressure. Hence RM's margin is expected to be diluted in the short term." Peel, which has RM as a corporate client, cuts its target price on the stock to 225p from 263p, but maintains its buy recommendation. ([e-mail])

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UK PMIs Are About to Start Ringing the Recession Alarm Bell

1136 GMT - With the latest surge in wholesale gas prices set to intensify the cost of living crisis, it is probably only a matter of time before U.K. purchasing managers indexes start ringing the recession alarm bell, Capital Economics chief U.K. economist Paul Dales says in a note. The fall in the S&P Global composite PMI to 50.9 in August from 52.1 in July took it to an 18-month low but, unlike the PMIs in the eurozone and the U.S., the U.K. PMI stayed above the boom-bust level of 50.0. Despite that, Dales says the U.K. economy is already in recession, but surging inflation will force the Bank of England to continue raising interest rates from 1.75% now to 3.00% next year. ([e-mail])

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Wood Group Offers Signs of Hope Despite Disappointing 1H

1127 GMT - Although engineering and consulting company John Wood Group's disappointing 1H was lower on nearly all key metrics, its order book being 5% higher than it was a year ago provides some hope of improved performance, eToro analyst Adam Vettese says in a note. Despite predictions of a stronger 2H, its disappointing cash flow position and elevated debt levels make the resumption of dividends unlikely until at least next year, Vettese says. "However, reading new CEO Ken Gilmartin's words... it feels like this is a firm that is very much in transition and one that is developing a plan to reinvigorate its performance," Vettese says. ([e-mail])

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Investors to Watch Signs of Nearing End to Global Interest-Rate Rise Cycle

1118 GMT - Investors will look for signs at this year's Jackson Hole Symposium that the global interest rate rise cycle is nearing its peak, says Richard Flynn, managing director at Charles Schwab U.K., in a note. "For now, we're still in the rate-hike cycle," he says. There are, however, initial signs that the trend toward rate hikes may be nearing its peak. The Central Bank of Brazil and the Czech National Bank, which were the first major emerging-market central banks to start raising rates last year, are now signaling that their respective rates may have peaked, Flynn says, adding that investors may anticipate that the Federal Reserve, the European Central Bank and the Bank of England may end their rate rises in the first half of 2023. ([e-mail])

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Halfords Faces Risks From UK Consumer Spending Downturn

0935 GMT - Halfords Group faces potential pressure from a U.K. consumer-spending downturn, Panmure Gordon says, downgrading the U.K. car-accessory and bike retailer to hold from buy and its price target to 150 pence from 300 pence. "As one of the most operationally and financially geared operators in our coverage universe, Halfords is naturally at some risk coming into the period of significantly increased pressure on consumer spending in 2022," Panmure analysts say in a note. "We believe there is significant upside in [Halfords] and that it's unlikely to go bust, however harsh the coming winter is for U.K. retailers. But we prefer to wait for better visibility." Shares drop 9% to 139 pence. ([e-mail])

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Bond Investors Keep Focus on Inflation After PMI Data

0919 GMT - Bond investors take generally weak purchasing managers surveys in their stride, continuing to focus on high inflation and its implications for central banks increasing interest rates. Investors keep selling bonds after the set of flash estimate French, German, eurozone and U.K. PMI data, pushing yields higher. The 10-year German Bund yield trades about 3 basis points higher at 1.319%, while the 10-year French OAT yield is up 4 bps at 1.916%, according to Tradeweb. The 10-year U.K. gilt yield is up 2.5bps at 2.526%. ([e-mail])

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Weak UK Manufacturing PMI Data Add to Pressures Facing Pound

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08-23-22 1226ET