FTSE 100 Falls in Early Trade After Weak UK GDP Data; AB Foods Rises

The FTSE 100 falls 0.2% to 7309.91 after data showed the U.K. economy grew just 0.1% during October, while traders are cautious ahead of U.S. inflation data at 1330 GMT, which could add to expectations of early monetary tightening by the Federal Reserve. "U.K. growth nearly stalled in October, according to new GDP data, and that is before Omicron struck... Rising energy, food and general merchandise prices have put pressure on family finances," says Russ Mould, investment director at AJ Bell. Rises in mining and oil stocks help offset some of the FTSE 100 index's losses, however, while Associated British Foods rises 0.5% after it said recent performance at fashion retailer Primark has been ahead of expectations. 


 
Companies News:

Anglo American Expects Costs to Rise Again in 2022

Anglo American PLC expects costs to increase further in 2022 and reaffirmed its full-year guidance for 2021.

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AB Foods Sees Improved Performance Ahead as Primark Sales Strengthen

Associated British Foods PLC said Friday that fashion retailer Primark's performance since the fiscal 2021 year ended on Sept. 18 has been ahead of expectations thanks to stronger like-for-like sales when compared with the latest quarter.

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Hilton Food Group Buys Foppen for EUR90 Mln; To Raise GBP75 Mln via Share Placing

Hilton Food Group PLC said Friday that it is buying international smoked-salmon producer Dutch Seafood Company BV, which trades as Foppen, for 90 million euros ($101.6 million) to be part-funded via a share placing.

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Photo-Me International Upgrades FY 2021 Pretax Profit, Revenue Views on Continued Recovery

Photo-Me International PLC said Friday that it has upgraded its forecasts for fiscal 2021 as it continued to see a recovery across most of its key markets.

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President Energy's Atome to Raise GBP9 Mln in London IPO

President Energy PLC said Friday that its hydrogen subsidiary Atome Energy PLC expects to raise up to 9 million pounds ($11.9 million) as part of its initial public offering on the AIM.

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Gemfields 2021 Auction Revenue Rises to New High of $239.6 Mln

Gemfields Group Ltd. said Friday that the latest auction for rubies from its Montepuez mine in Mozambique achieved record revenue, bringing full-year auction sales to a new high of $239.6 million.

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AB Foods Sees Improved Performance Ahead as Primark Sales Strengthen -- Update

Associated British Foods PLC said Friday that fashion retailer Primark's performance since the fiscal 2021 year ended on Sept. 18 has been ahead of expectations thanks to stronger like-for-like sales when compared with the latest quarter.

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Actual Experience Shares Down After FY 2021 Pretax Loss

Actual Experience PLC shares fell in early Friday trading after the company said it will incur a pretax loss in 2021 as part of its continuing investments in technology, sales and marketing, without disclosing a figure.

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AB Foods Sees Improved Performance Ahead as Primark Sales Strengthen -- 2nd Update

Associated British Foods PLC said Friday that fashion retailer Primark's performance since the fiscal 2021 year ended on Sept. 18 has been ahead of expectations thanks to stronger like-for-like sales when compared with the latest quarter.

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Recycling Technologies Targets Early 1Q 2022 IPO

Recycling Technologies Group Ltd. said Friday that it now plans to complete its initial public offering on the London Stock Exchange early in the first quarter of next year, following interest from a broad range of investors.

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Panther Metals Completes IPO of Australian Subsidiary

Panther Metals PLC said that its subsidiary Panther Metals Ltd. listed on the Australian Securities Exchange on Friday.

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Starcrest Education Cancels Acquisition of National Training Co. on Market Conditions

Starcrest Education Ltd. said Friday that it has cancelled the non-legally binding heads of terms for the acquisition of National Training Co. on the need for additional funds. 


 
Market Talk:

AB Foods Shrugs off Omicron Variant in 1Q Update

0908 GMT - Associated British Foods' performance update for the first quarter of fiscal 2022 has shown that the effects of the new Covid-19 Omicron variant have been contained for now, Jefferies says. The British conglomerate's reiteration of a sizeable group EBIT rebuild in 2021-22 should help underpin the valuation upside in the path to a return to normal, the U.S. bank says. Jefferies has a buy recommendation on the stock and a target price of 2,700 pence a share. Shares are up 0.6% at 1,946.00 pence.

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Anglo American's New Guidance Seems in Line With Expectations

0858 GMT - Anglo American's guidance provided Friday morning appears to be largely in line with expectations, something that will soothe some concerns in the market around major forward divergences from current expectations, RBC Capital Markets says, noting that granular guidance has yet to be given in the presentation later in the morning. The Quellaveco copper project in Peru delivering more tons earlier is a positive, and 4% unit cost inflation for 2022 should be close to consensus, RBC says. "Anglo American remains a well-diversified miner with growth and strong underlying operations. We continue to believe both this growth, and further rerating over time, backstops a compelling investment case," the bank says, reaffirming an outperform rating on the stock. Shares rise 0.2%.

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AB Food's 1Q Primark Sales Look Strong While Grocery Business Was Stagnant

0812 GMT - Associated British Foods' like-for-like sales for the first quarter of fiscal 2022 have been boosted by recent colder November weather, particularly in the U.K., RBC Capital Markets says. RBC highlights that the British conglomerate's Primark's year-to-date margin has been ahead of its own views, helped by good full-price sales, currency and natural labor attrition. However, RBC sees small upside risk to consensus grocery forecasts, "as ABF is managing through cost headwinds, and small downside to consensus sugar forecasts due to high U.K. gas prices increasing operating costs," it adds. RBC has an outperform rating on the stock and a target price of 2,300 pence a share. Shares are up 0.6% at 1,945.50 pence.

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UK GDP Growth Slows Down, Growth Seen Remaining Weak in the Near Term

0750 GMT - U.K. monthly GDP rose just 0.1% month-on-month in October, a marked slowdown from the 0.6% growth seen in September, UniCredit says. Industrial production fell 0.6% on the month, construction fell 1.8%, while services output rose 0.4%, the press release shows. "Supply bottlenecks and higher inflation, as well as tighter fiscal policy and subdued consumer confidence were likely the main drivers of the moderation in the pace of growth," economists at UniCredit say. Looking ahead, rising new cases of Covid-19 will likely see growth remain weak in the coming months, UniCredit forecasts. The Italian bank says the Bank of England's Monetary Policy Committee is likely to refrain from raising the bank rate next week.

Contact: London NewsPlus, Dow Jones Newswires; Write to Sarka Halas at sarka.halas@wsj.com

(END) Dow Jones Newswires

12-10-21 0441ET