FTSE 100 Rises as Banks Rally on Powell Remarks

FTSE 100 Rises as Banks Rally After Remarks From Fed's Powell

0859 GMT - The FTSE 100 rises 0.5% to 7479 points as bank shares rally after U.S. Federal Reserve Chairman Jerome Powell said interest rates could be raised more aggressively. "The Federal Reserve sees little option but to try and chip away inflation with even bigger interest rate hikes this year, if price pressures keep mounting," Hargreaves Lansdown says. "And there are very few signs of much relief given that the only way has been up for the price of oil in recent days." Lenders including HSBC, Standard Chartered and Barclays are among the biggest risers on the FTSE 100. Kingfisher edges up 0.1% after the home improvement retailer reported stronger full-year profit and revenue, and raised its dividend. ([e-mail])

 
Companies News: 

Capita Chairman Ian Powell to Step Down; David Lowden Named as Replacement

Capita PLC said on Tuesday that Chairman Ian Powell won't seek reelection at the company's annual general meeting in May, and that he will be succeeded in the role by David Lowden.

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Polymetal International Names Riccardo Orcel as Chairman

Polymetal International PLC on Tuesday said it has appointed Riccardo Orcel as nonexecutive director and board chairman, effective Monday.

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Auto Trader to Buy Autorama (UK) for GBP200 Mln to Expand Leasing Business

Auto Trader Group PLC said Tuesday that it has agreed to buy Autorama (UK) Ltd. for 200 million pounds ($263.4 million) in a deal that will expand its leasing business.

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Kingfisher FY22 Pretax Profit Above Views; Warns of Hit to 1Q, FY23 Performance

Kingfisher PLC on Tuesday reported a significant rise in pretax profit and revenue for fiscal 2022, which came in above market expectations, and said like-for-like sales declined in the first quarter of the current year among geopolitical uncertainty and inflation.

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Sabre Insurance 2021 Pretax Profit Fell; Sees Material Growth in 2022 on New Businesses

Sabre Insurance Group PLC said Tuesday that its pretax profit for 2021 fell as the company faced pressure on premium income due to the lack of new drivers and slow car sales.

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ZOO Digital Sees FY 2022 Revenue, Profit Ahead of Expectations Thanks to Organic Growth

ZOO Digital Group PLC said Tuesday that it expects to report revenue and profit for fiscal 2022 that are materially ahead of expectations after the continued rollout of existing streaming services and increased market share in new service offerings.

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MP Evans Says Total Crop Processed in First Two Months of 2022 Fell 10%, 2021 Pretax Profit Rose

M.P. Evans Group PLC said Tuesday that the total palm-oil crop processed in the first two months of 2022 was 10% lower than last year, mostly due to crop seasonality, as it reported a rise in 2021 pretax profit on increased revenue.

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ScS Group Swung to 1H Pretax Loss After Booking Higher Costs; Hopes for Profitable 2H

ScS Group PLC on Tuesday reported a swing to a pretax loss for the first half of fiscal 2022 as a result of higher costs linked to investments, and said it is on track to deliver a full-year pretax profit in line with market expectations.

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THG PLC Names Charles Allen as Its New Nonexecutive Chairman

THG PLC said Tuesday that it has appointed Charles Allen as its new nonexecutive chairman with immediate effect as part of the company's plan to split the chairman and chief executive roles.

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Esken Sees Energy Unit's Fiscal 2022 Earnings Ahead of Expectations on Improved Performance

Esken Ltd. said Tuesday that it expects its energy business to report earnings before interest, taxes, depreciation and amortization for fiscal 2022 at the upper end of management's guidance range after booking improved gate fees, increased supply of waste wood and a robust operating performance from its biomass plant customers.

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Staffline 2021 Pretax Loss Narrowed as Revenue Rose; 2022 Seen Within Views

Staffline Group PLC said Tuesday that its 2021 pretax loss narrowed as revenue rose, and that it has made a strong start to 2022 and is confident of meeting the board's expectations for the year.

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Trustpilot 2021 Pretax Loss Widened on Higher Costs

Trustpilot AS said Tuesday that its 2021 pretax loss widened on higher costs, though revenue increased.

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YouGov 1H Pretax Profit Rose; FY Performance Ahead of Management Views

YouGov PLC reported on Tuesday a rise in pretax profit for the first half of fiscal 2022 and said that the second half has started strongly, with its sales momentum continuing.

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Fintel's 2021 Pretax Profit Rose; Performance in 2022 Strong So Far, in Line with Views

Fintel PLC reported Tuesday a rise in pretax profit for 2021 and said that its performance in 2022 has been strong and in line with management expectations.

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Gamma Communications 2021 Pretax Profit Fell After Increased Operating Expenses

Gamma Communications PLC said Tuesday that revenue grew in 2021, but pretax profit fell after it booked increased operating expenses.

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Softcat 1H Profit Topped Its Views; Expects Full-Year Outperformance

Softcat PLC said Tuesday that pretax profit for the first half of fiscal 2022 topped its views, and that it is confident the full year will exceed previous estimates.

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Crest Nicholson Says Demand in FY 2022 Has Been Strong So Far

Crest Nicholson Holdings PLC said Tuesday that customer demand has remained strong in fiscal 2022 to date and that it was effectively managing cost inflation.

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Knights Group Shares Plunge After Guidance Downgrade

Knights Group Holdings PLC shares fell 36% in early trading Tuesday after the company downgraded its fiscal 2022 guidance, citing the Omicron variant of the coronavirus and recent macro conditions.

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MTI Wireless Edge Sells Russian Operations for Minimum Sum

MTI Wireless Edge Ltd. said Tuesday that it has sold its Russian operations for a minimal sum to the general manager of the business.

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Cordiant Digital Begins Currency Risk Strategy Over Poland Exposure

Cordiant Digital Infrastructure Ltd. said Tuesday that it was implementing a currency risk-management strategy as part of its planned acquisition of Emitel SA, and that it is in advanced discussions with lenders over an acquisition facility.

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City Pub Group Sells Six Pubs for GBP17.1 Mln; To Invest Proceeds in Other UK Sites

City Pub Group PLC said Tuesday that it has sold six pubs for around 17.1 million pounds ($22.5 million) in cash and that it will use the proceeds to invest in other U.K. sites.

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Wynnstay Says Early FY 2022 Performance Is Meeting Views

Wynnstay Group PLC said Tuesday that its early performance in fiscal 2022 has met expectations as it manages market volatility across most commodities and material price increases.

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Pebble Group Shares Rise on Higher 2021 Pretax Profit, Revenue

Shares in Pebble Group PLC rose Tuesday after the company said 2021 pretax profit rose as revenue increased, and that it has started 2022 in line with the board's expectations.

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Gemfields Expects to Report Swing to Net Profit for 2021

Gemfields Group Ltd. said Tuesday that it expects to report a swing to a net profit after tax for 2021.

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Zotefoams 2021 Pretax Profit Fell on Higher Costs; Shares Fall

Shares in Zotefoams PLC fell Tuesday after the company reported a 16% fall in 2021 pretax profit after booking higher costs, while noting the potential risks presented by geopolitical tensions in Eastern Europe.

 
Market Talk: 

More Pain Seen in Store for Government Bonds Due to Inflation

0906 GMT - BlackRock Investment Institute expects more pain ahead for long-term government bonds even with the yield jump since the start of the year, it says. Investors will demand more compensation for the risk of holding government bonds due to higher inflation, the asset manager says, holding to its view of underweight nominal government bonds on both tactical and strategic horizons. "Inflation expectations could de-anchor and spiral upward as markets and consumers lose faith that central banks can keep a lid on prices," BlackRock says. Markets' hawkish re-pricing in short-term rates is overdone, the asset manager says, and it prefers short-maturity bonds over long-term ones. ([e-mail])

Higher UK Debt Servicing Costs Expected to Weaken Treasury's Position

0854 GMT - Around half the money the U.K. government is borrowing is being used to service its debt, which is a precarious position for any Treasury, AJ Bell says. "So far this fiscal year interest payments on government debt have rocketed from GBP37.5 billion to GBP67 billion, partly as a result of higher coupons being paid on the GBP500 billion of inflation-linked gilts it has issued," the investment broker says. Higher debt interest payments are likely to scale back the size of the windfall Treasury chief Rishi Sunak has to play with at Wednesday's spring statement, AJ Bell says. Government borrowing so far this year is GBP25.9 billion below the last official Office for Budget Responsibility forecast, it says. ([e-mail])

Kingfisher's Outlook, Strategy Seen as Reassuring and Improving Amid Current Backdrop

0844 GMT - Kingfisher's outlook for fiscal 2023 is reassuring in the current environment, and also given its exposure to Poland amid Russia's invasion of neighbor Ukraine, RBC Capital Markets says. The U.K.-listed home-improvement retailer's sales were broadly in line with RBC's forecasts, it says, adding that, even though LFL sales for 1Q of fiscal 2023 were down, they are still up on a two-year basis. "We rate Kingfisher outperform...the outlook for home improvement has improved structurally," the Canadian bank says. Kingfisher's management team has a more effective business strategy, with a stronger digital offer, lower inventory and better cost control, it adds. RBC has a target price of 400 pence. Shares fall 1.8% to 286.20 pence. ([e-mail]; @sabelaojeaguix)

Contact: London NewsPlus; [e-mail]

(END) Dow Jones Newswires

03-22-22 0532ET