FTSE 100 Buoyed Early Tuesday as Ukraine Tensions Ease Slightly
The FTSE 100 recovered some ground early Tuesday, after significant losses the day before, reflecting a modest easing of tensions on the Ukrainian border, AJ Bell says. The index rose on reports Russian troops were apparently returning to base for the time being, sending oil prices into retreat and raising shares across Europe as investors breathed a sigh of relief, the brokerage says. "It remains a highly tense and uncertain situation though, and the U.S. and U.K. appear to still be warning of an imminent invasion which would likely create even more pronounced volatility in the markets," AJ Bell says, adding it remains difficult for investors to price in a war. The index was up 0.73% at 0947 GMT.
Companies News:
Glencore to Return $4 Bln to Shareholders After Record 2021
Glencore PLC said Tuesday that it will return $4.0 billion to shareholders after reporting record 2021 earnings on the back of higher commodity prices, and that it has booked a $1.5 billion provision to cover the potential cost of continuing investigations in the U.S., U.K. and Brazil.
---
Honeycomb Investment to Buy Pollen Street for GBP285M
Honeycomb Investment Trust PLC said Tuesday that it has agreed to buy Pollen Street Capital Holdings Ltd. in an all-share deal that values the asset manager at 285 million pounds ($385.5 million).
---
Frenkel Topping Says 2021 Assets Under Management Rose; Off to Strong Start in 2022
Frenkel Topping Group PLC said Tuesday that its assets under management rose in 2021, with full-year trading in line with expectations, and that it has had a strong start to 2022, boosted by the acquisition of Cardinal Management Ltd.
---
PCF Group Shares to Be Suspended From April Due to Delayed 2021 Results
PCF Group PLC traded down 19% on Tuesday after it said that its shares will be suspended from April 1 due to the delayed publication of its audited 2021 results.
---
Burford Capital Expects to Report 2021 Net Loss on Continued Court Delays
Burford Capital Ltd. said Tuesday that it expects to report a full-year 2021 net loss on the back of continued court delays affecting progress of portfolio matters, and a net loss in the first half.
---
Blackstone's European Last-Mile Logistics Deal Values Mileway at $24 Billion
Blackstone Inc. is doubling down on its warehousing bet that is aimed at ensuring same-day delivery of food and goods by reinvesting in its European last-mile logistics real-estate company, a transaction valued at almost $24 billion.
---
Smithson Investment Trust Names Diana Dyer Bartlett to Be Next Chairman
Smithson Investment Trust PLC said that Chairman Mark Pacitti will retire from the board on Feb. 28, and that Diana Dyer Bartlett will be the next chairman.
---
W Resources Shares Down After Lower Tungsten-Concentrate Production in 4Q
W Resources PLC shares fell Tuesday after the company said that it has shut down its operations at Spain's La Parrilla mine for two weeks for maintenance, and that tungsten-concentrate output fell in the fourth quarter.
---
Deal Fever Revives a Fading Dot-Com Star -- Heard on the Street -- WSJ
As investors cool on big tech, they are warming to some faded stars of the dot-com era: telecommunications companies such as London-listed Vodafone. The bet has legs, particularly if European politicians decide that 5G networks are a higher priority than discount phone packages.
---
Nutmeg CEO Neil Alexander on how JPMorgan's buyout will turn the business around
Nutmeg's CEO has ambitions to push the UK's largest digital wealth manager even further after a landmark tie-up with JPMorgan
Market Talk:
Glencore's Lower Costs, Marketing Performance Raise Expectations for 2022
1057 GMT - Glencore has reported strong 2021 mining earnings, with better-than-expected costs across the metal business that have led the company to further improve its cost guidance for 2022, Citigroup says. In addition, the marketing business is delivering better-than-expected profitability, which should be seen as a key positive for the momentum to continue this year, given higher energy prices, the U.S. bank says. Better costs and marketing profits should increase earnings expectations for 2022, and strong cash flow prospects leave more room for the commodity giant to engage in capital returns this year, Citi adds.
---
Babcock International's Acquisition of Remaining Joint Venture Gives Long-Term Visibility
0938 GMT - Babcock International Group's agreement to acquire the remaining 50% of its Australian Naval Ship Management joint venture is welcome news, Shore Capital says. The deal provides long-term visibility to the U.K. engineering company's growing business in Australia, one of its core target markets, Shore says. "We also note that acquiring this stake also further tidies up the income statement, Naval Ship Management will no longer be equity accounted once the transaction is complete," the U.K. investment group says. Shore has a hold rating on the stock and a 301 pence target price. Shares are up 0.5% at 302.60 pence.
---
WPP Seen Capitalizing on Positive Ad Spend Backdrop
0931 GMT - WPP has the ability to harness its deep digital skill set, extensive resources and global offering to add value for its blue-chip client base, and these qualities make Shore Capital bullish on the London-based advertising and marketing-services group ahead of its preliminary 2021 results on Feb. 24. Furthermore, the positive advertising spend backdrop should enable it to capitalize and post a robust update with GBP10.2 billion in net revenue, Ebitda of GBP1.7 billion, and a dividend of 30 pence, the U.K. investment group says. WPP's stock valuation is extremely modest for a well-managed, market-leading global player offering the prospect of strong medium-term growth and cash generation, Shore says. WPP shares trade up 1.6% at 1,212 pence.
---
Gilt-Bund Spread Expected to Widen Further
0859 GMT - The gap, or spread, between 10-year U.K. benchmark government debt and its German counterpart is likely to widen further and Mizuho analysts are advising clients to position for this. "Gilt-Bund has started the week by widening as per our high conviction view," analysts at the Japanese bank say, adding that they recommend looking to add more to this position on a pullback today. While the U.K. is selling a 10-year debt today, "the more potent catalyst from sterling rates comes on Wednesday with U.K. inflation data," they say.
---
Glencore's Coal Exposure Will Raise Questions Despite Booming Year
0900 GMT - Last year was a booming one for Glencore, but the company's current strategy reeks of kicking the transition down the road, Freetrade says, noting that coal remains a big part of the business. While Glencore's peers are distancing themselves from coal, Glencore seems happy to hang onto it, but shareholders will likely ask what exactly is being done to address ESG standards, the investing platform says. "The best PR machine out there wouldn't be able to convince the market that the coal division is a sustainable or responsible one--what it might be is a necessary evil Glencore has to pursue while other key segments linked to electric vehicles grow," Freetrade says.
---
UK Household Income Squeeze Isn't Likely to Last Long
0859 GMT - The cost of living crisis in the U.K. isn't expected to last for long as a favorable labor market backdrop points to positive outlook for both nominal and real wages, Berenberg says. Toward the latter part of 2022, the bank projects solid gains in real wages as inflation moderates toward 3% and nominal wages continue to rise at rates of around 4-5% on year, with risks tilted to the upside. "In our view, inflation will not exceed nominal wage gains for long at a time when the U.K.'s labour markets are historically tight," Berenberg says. "As a result, the period of falling real wages is likely to be short," it says.
---
UK's Strong Labor Market Data Adds to Case for More Rate Increases
0828 GMT - The U.K.'s labor market appears to have suffered little from the Omicron wave of the coronavirus, paving the way for the Bank of England to increase rates again in March, ING says. However, it is unlikely that the country is headed for a wage-price spiral that would justify the six rate increases that markets are now expecting from the BoE this year, the Dutch bank says. "Policymakers are likely to hike more gradually than investors expect," it says.
Contact: London NewsPlus, Dow Jones Newswires; Write to Sarka Halas at sarka.halas@wsj.com
(END) Dow Jones Newswires
02-15-22 0633ET
