London Shares Seen Marginally Higher; Focus on Jackson Hole

London Stocks Seen Opening Marginally Higher; Focus on Jackson Hole

0647 GMT - The FTSE 100 index is expected to open around 4.7 points higher, according to IG, having closed Thursday at 7124.88. Equity markets ended on a shaky note Thursday after news of explosions around Kabul and movements are likely to be limited ahead of the Jackson Hole symposium later, where traders will be watching for any hints from the Federal Reserve on plans to taper asset purchases. Three Federal Reserve officials said in separate interviews Thursday that the time for tapering was nearing, stressing concerns about inflation. Similar comments from Fed Chair Jerome Powell when he speaks at 1400 GMT may cause equity markets to fall, although this would unlikely be a large surprise, analysts say. U.S. PCE prices data at 1230 GMT and the Michigan sentiment indicator at 1400 GMT will also be watched. ([e-mail])

 
Companies News: 

Salt Lake Potash CEO Resigns, Advanced Talks Under Way with Replacement

Salt Lake Potash Ltd. said Friday that Chief Executive Officer Tony Swiericzuk has resigned, and that the board is in advanced discussions with a replacement CEO.

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Air Partner Sees Lower 1H Underlying Profit

Air Partner PLC said underlying pretax profit for the first half of fiscal 2022 is expected to be lower than in the prior year, but it is optimistic about prospects for its charter and safety-and-security divisions.

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Amigo Holdings 1Q Profit Rose Amid Pause in Lending

Amigo Holdings PLC said Friday that its fiscal first-quarter pretax profit significantly improved as a pause in lending helped make the business cash generative, and that uncertainty still remains over its ability to continue as a going concern.

 
Market Talk: 

High-Frequency Data Show UK Economic Growth Accelerating in August

0635 GMT - Real-time activity indicators in the U.K. have improved in August after softening or stabilizing in July, signaling that the country's economic recovery is gathering pace, Pantheon Macroeconomics' senior U.K. economist Gabriella Dickens says. Business turnover, card spending, transport usage, retail footfall, and diner numbers all increased in August, data which is at odds with the sharp drop of the composite PMI in the month, she says. "Based on the currently available information, we think GDP rose by about 0.5% month-to-month in August, after stagnating in July," Dickens says. Pantheon expects U.K. GDP to regain its pre-pandemic size by year-end. ([e-mail])

Wood Group's 2022 Consensus Revenue Overstates Growth Potential, Jefferies Says

0543 GMT - Wood Group revenue in 2022 will be lower than currently expected and will fall from 2021 levels, Jefferies' Mark Wilson says, reiterating his underperform rating on the consulting and engineering company. Wood last week flagged that its order book increased 18% since the end of 2020, however the order book's divisional breakdown leads Wilson to revise its 2022 revenue forecast down 3%, to $6.46 billion. "Consensus revenue (just as it did this year) materially overstates the company's top-line growth potential," the analyst says. Moreover, cash exceptionals are now seen higher, and a working capital modest inflow is revised to an implied outflow. ([e-mail])

British Airways Is Having Another Go

It's 20 years since British Airways sold off its low-cost subsidiary after a three-year experiment to tackle rivals such as Ryanair and EasyJet, which ultimately bought the Go Fly unit. Airlines-within-airlines have at best a chequered history on both sides of the Atlantic--look at the fate of United's Ted and Delta's Song--though Lufthansa has tried hard to find a new niche for Eurowings. ([e-mail]; @dougcameron)

Shell Begins Offshore Evacuations Ahead of Storm

As Tropical Depression Nine churns in the Caribbean with its sights on entering the Gulf of Mexico Friday night, Royal Dutch Shell reports no stoppage yet in offshore production, but says it has begun evacuating non-essential personnel from its assets in the Gulf waters. "In addition, the FPSO [Floating Production, Storage and Offloading ship] Turritella is preparing to disconnect and commence sailing away to safer waters," a Shell spokesperson says. "We will continue to monitor weather reports and respond accordingly." ([e-mail])

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08-27-21 0306ET