FTSE 100 Seen Edging Higher; Politics Remains in Focus

FTSE 100 Seen Opening Higher as UK Conservative Leadership Race Eyed

0638 GMT - The FTSE 100 is seen opening higher as traders await the result of the U.K. Conservative Party leadership race, which will determine the next prime minister. IG futures data show the London stocks index opening up 11 points. Former U.K. Prime Minister Boris Johnson has dropped out of the leadership race, leaving former Treasury chief Rishi Sunak as the favorite to become prime minister. "At the time of writing it is in our view reasonable to expect that Rishi Sunak will be the UK's next prime minister, which will be welcomed by markets given his stance on fiscal discipline," Danske Bank analysts say in a note. ([e-mail])

 
Companies News: 

Pearson Made Progress in 2022 to Date; Sees Full-year Meeting Market Views

Pearson PLC said Monday that it has made strong progress in the first nine months of the year, and that it expects to meet the full-year adjusted operating profit market consensus.

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Auto Trader Sells Webzone for EUR30 Mln

Auto Trader Group PLC said Monday that it has sold Webzone Ltd. for 30 million euros ($29.6 million) as the company focuses on its U.K. businesses.

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Helical Met or Beat 1H Targets; Collects Most of Rent Due

Helical PLC said Monday that it has met or exceeded its development and leasing targets for the first half of fiscal 2023, and has collected most of the rent due.

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Pendragon Gets UK Takeover Panel Extension to Hedin Mobility Deadline

Pendragon PLC said Monday that the U.K. Takeover Panel has agreed to extend the deadline for Hedin Mobility Group AB to either make an offer for the company or walk away until Nov. 21 so that the parties can continue talks.

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Benchmark Holdings Expects FY 2022 Adjusted Ebitda Ahead of Consensus on Good 4Q Performance

Benchmark Holdings PLC said Monday that it expects adjusted Ebitda for fiscal 2022 to be ahead of consensus expectations due to a better-than-expected performance across its business areas in the fourth quarter.

 
Market Talk: 

Pearson Looks Well Placed After Nine-Month Update

0640 GMT - Pearson's nine-month update should give investors comfort in the group's operational outlook as well as the broader strategic outlook, with organic growth at both group level and for a number of divisions materially ahead of expectations, Citi says. The FTSE 100 education company's update is expected to receive a warm reception from the market, Citi analysts say in a research note. "The only debate is really over why the group has chosen not to update underlying growth guidance, albeit we still expect 5% upgrades from foreign exchange alone," the U.S. bank says. Citi retains its buy rating and raises its price target on the stock to 1,050 pence from 1,000 pence. ([e-mail])

Risk Premium Remains in U.K. Gilts

0629 GMT - U.K. gilts continue to price in a significant uncertainty premium, even if the 10-year gilt yield is trading about 50 basis points below their annual high, Elmar Voelker, senior fixed-income analyst at Landesbank Baden-Wuerttemberg says in a note. Ten-year gilt yields are still trading about 50 basis points higher than before the "fateful" tax-cut announcement in the mini budget on Sept. 23, he says. "The de-escalation of the turmoil on the British bond market is probably one reason that investors have moved to 'risk on' mode for now," he says. ([e-mail])

Contact: London NewsPlus; [e-mail]

(END) Dow Jones Newswires

10-24-22 0259ET