The FTSE 100 index closed Monday down 0.03% to 7612 points, mainly dragged by oil-exposed companies and miners, after positive U.S. data hit hopes of a rate cut in March, IG chief market analyst Chris Beauchamp said in a note. "Today's ISM services PMI seems to have dealt the death blow to any lingering hopes that a March rate cut was still on the cards. It looks like the relentless optimism seen so far on Wall Street is finally beginning to collide with reality," he says. Fashion retailer JD sports was the index's worst performer, down 5.3%, followed by Airtel Africa and Ashtead Group, down 4.4% and 4.3% respectively. Grocer Ocado led a shortlist of risers, up 3.6%, followed by GSK, up 3.2%.


COMPANIES NEWS:

Vodafone Group Revenue Falls After Sale of Hungarian Business

Vodafone Group third-quarter revenue fell due to the sale of its Hungarian unit despite further growth at its business segment.

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Naked Wines Appoints U.K. Chief Rodrigo Maza as New CEO

Naked Wines said it has named its U.K. managing director Rodrigo Maza as new chief executive.

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U.K. Government to Target 2 Mln Retail Investors in NatWest Stake Sale, The Times Reports

-- The U.K. government is working on a publicity campaign to convince up to two million members of the public to buy NatWest shares when it sells down its 36% stake, The Times reports.

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Gaming Realms Revenue, Earnings Rose to Meet Expectations

Gaming Realms said it expects to have generated more revenue and earnings in 2023 than the year before, as content licensing drove results to meet expectations for the year.

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Revolution Beauty Agrees Settlement with Former CEO Adam Minto

Revolution Beauty Group said it has reached a settlement agreement with its co-founder and former chief executive officer Adam Minto, with Minto paying the company 2.9 million pounds ($3.7 million).

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Esken Shares Fall After Loan Dispute, Exploring Alternative Funding

Shares in Esken fell after it warned that failure to resolve a dispute over alleged loan breaches with Carlyle Global Infrastructure Fund could disrupt other transactions, and that it was exploring alternative funding to cover these delays.

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BP Profit Expected to Fall on Weaker Oil Trading, Refining Margins Amid Energy Shift -- Earnings Preview

By Christian Moess Laursen

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U.K. Government Cuts Its NatWest Shareholding to 34.96%

The U.K. government has reduced its stakeholding in British lender NatWest to 34.96% from 35.94%, regulatory filings showed on Monday.

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Bidstack Shares Dive on Cash Shortfall, Funding Requirement

Bidstack Group shares fell as much as 73% in early trade after the company said that it has enough cash to last through to the end of March and will need further working capital in the short term.

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LivaNova Names Vladimir Makatsaria Chief Executive

LivaNova has named Vladimir A. Makatsaria as its new chief executive, effective March 1.

MARKET TALK:

Diageo Looks Set to Report Worse-Than-Expected FY

1356 GMT - Diageo looks set to report worse-than-expected full-year results after downbeat 1H numbers, AlphaValue says, downgrading the Johnnie Walker whisky and Smirnoff vodka maker to add from buy. AlphaValue now expects Diageo's 2023/24 top line to rise by 0.5% versus 3.6% previously and organic operating profit to fall organically by 1.7%, versus a 2.2% increase beforehand. "For F25, we now project figures above the company's guidance of flat organic operating profit margin growth, which appears conservative to us," AlphaValue analyst Davide Amorim writes. AlphaValue has a 3698 pence price target on the stock, which gains 1% to 2973p. (philip.waller@wsj.com)

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Vodafone's Update Remains Silent on Future of European Units

1341 GMT - Vodafone Group third-quarter performance was broadly in line with market expectations with no strategic update, Barclays analysts Maurice Patrick and Mathieu Robilliard write in a research note. Full-year guidance has been reiterated while broadband net adds have improved, although they are still stubbornly negative, the U.K. bank says. The U.K.-based telecommunications group didn't provide any update on the disposal of its Spanish unit, any potential merger or acquisition for its Italian unit, or the impact of a new German television law on MDU​. Shares are down 1.11% at 67.84 pence. (najat.kantouar@wsj.com)

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U.K. 2-Year Gilt Yield Climbs on Higher-For-Longer Rate Cut Expectations

1333 GMT - The U.K. 2-year gilt yield rises around 7 basis points to a 7-week high of 4.491% as markets expect the Bank of England to keep interest rates higher for longer after a U.K. update on labor market data using new methodology showed the unemployment rate fell more than analysts previously thought. Unemployment declined to 3.9% in the three months that ended in November, the data showed, below the BOE's expectation of 4.3%. "At the margin this is helpful to the cause that the BOE monetary policy committee will keep rates on hold for longer - particularly with the tightness of the labor market still a key input into the Bank's decision making," analysts at Nomura Research say in a note. The 10-year gilt yield also advances 8 basis points to 3.995%, Tradeweb data show. (miriam.mukuru@wsj.com)


Contact: London NewsPlus, Dow Jones Newswires;


(END) Dow Jones Newswires

02-05-24 1215ET