FTSE 100 Rises on Improved Market Sentiment

FTSE 100 Rises on Improved Market Sentiment

0919 GMT - The FTSE 100 rises 0.1% to 7448 points on improved market sentiment after weaker-than-expected U.S. producer prices followed Wednesday's softer inflation data and further raised expectations of a U.S. Federal Reserve interest-rate pause. "Soft U.S. inflation and strong earnings are fueling the stock market rally," says Swissquote Bank senior analyst Ipek Ozkardeskaya in a note. The biggest gainers on the FTSE 100 are manufacturing company Spirax-Sarco Engineering up 3% and telecommunications company Vodafone Group up 2%, while the biggest losers are technology company Ocado Group and manufacturer Rolls-Royce Holdings, down 1% each. ([e-mail])

COMPANIES NEWS:

ITV No Longer Exploring Acquisition of Production Company All3Media

ITV said Friday that although it continued to monitor, it has decided to stop actively exploring the possible acquisition of film production company All3Media.

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Ninety One Assets Under Management Fall

Ninety One said Friday that its assets under management at June 30 has fallen compared with both the same date last year and the earlier quarter.

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Burberry Backs Full-Year Guidance as 1Q Retail Sales Met Views

Burberry Group on Friday backed its full-year guidance after first-quarter comparable store sales rose 18%, matching market views, while revenue also grew in the quarter.

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Ashmore Group 4Q Assets Under Management Fell on Macro Uncertainty

Ashmore Group said Friday that assets under management fell in the fourth quarter to $55.9 billion from $57.7 billion the previous quarter as global macro uncertainty persists, with some investors reducing risk during the period.

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Liontrust 1Q Assets Under Management Fell

Liontrust Asset Management said Friday that assets under management and advice fell in the first quarter of fiscal 2024, but that its business is in robust shape despite the current market environment.

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Premier Miton 3Q Assets Under Management Fell

Premier Miton Group said Friday that assets under management declined in the third quarter of fiscal 2023 as investors reduced spending amid higher inflation, higher interest rates and continuing market uncertainty.

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Johnson Service Group Backs 2023 View After 1H Revenue Rose

Johnson Service Group on Friday backed its full-year guidance after revenue rose in the first half, driven by growth in both its workwear and its hotel, restaurant and catering businesses.

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MGC Pharmaceuticals Raises GBP650,000 via Heavily Discounted Placing, Subscription

MGC Pharmaceuticals said Friday that it has raised 650,000 pounds ($853,905) via a heavily discounted share placing and subscription, providing it with working capital for its short-term financing commitments.

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TheWorks.co.uk Expects FY 2023 Earnings to Meet Guidance; Accounts Delayed

TheWorks.co.uk said Friday that it expects to report fiscal 2023 earnings in-line with guidance, though its auditor has requested more time to complete their process, delaying publication.

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Versarien to Raise GBP650,000 in Discounted Placing

Versarien said Friday it will raise 650,000 pounds ($853,905) via a discounted share placing and that it will use the funds for working capital purposes and as bridge finance ahead of any asset sales.

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ZOO Digital 1Q Revenue Falling; Expects Growth to Return in 2H

ZOO Digital Group said Friday that it is seeing a fall in revenue in the first quarter of fiscal 2024, though growth is expected to return in the second half.

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Uncertainty weighs on UK managers as Liontrust, Premier Miton, Ashmore, NinetyOne all bleed assets -- Financial News

Listed fund houses are leaking billions as investors remain cautious over geopolitics and monetary policy

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Dr. Martens to Buy Back Up to GBP50 Mln Shares to Reduce Share Capital

Dr. Martens said Friday that it will buy back up to 50 million pounds ($65.7 million) of shares in order to reduce its share capital.

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Savannah Resources Raises GBP300,000 More Than Expected

Savannah Resources said Friday that it raised 6.1 million pounds ($8 million) in a share placing and subscription, which is GBP300,000 more than initially anticipated.

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XPS Pensions Agrees XPS Pensions (Nexus) Sale for Up to GBP42.5 Mln

XPS Pensions Group said Friday that it has agreed the sale of its XPS Pensions (Nexus) unit to SEI Master Trust for up to 42.5 million pounds ($55.8 million) cash, and that net proceeds will be used to repay debt.

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Ex-Goldman Sachs bankers' boutique sees revenue drop 30% amid deal drought -- Financial News

Five London partners shared a pay pot of $14m, down nearly $10m

MARKET TALK:

Glencore's Aggressive M&A Strategy Tops Peers'

0918 GMT - Glencore has been actively pursuing mergers and acquisitions recently, and while other major miners are expected to follow, the Anglo-Swiss miner's aggressive approach should have the best pay off over time, Jefferies analysts write in a research note. The time for mining companies with strong balance sheets to do deals and position themselves for the upcoming commodities energy-transition cycle is now, the analysts say. "We believe Glencore's mergers-and-acquisitions strategy is unique and is also likely to create significant shareholder value as this next cycle progresses," they say. "This potential value creation is one of the reasons why Glencore continues to be one of our top picks in global mining." Jefferies has a 550 pence price target on the stock. ([e-mail])

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Burberry Might Struggle as Chinese Economy Slows

0908 GMT - Burberry's 1Q sales were boosted by the expected rebound in its China business, however its performance in the coming quarters could be affected by the Chinese economy slowing down again, IG Group chief market analyst Chris Beauchamp says in a note. "Shares have been muted at best this morning, but investors will be hoping that luxury spending continues to hold up well even if a global recession does arrive," he says. ([e-mail])

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Shell's Mulling of Renewable Sale Points to De-Risking

0901 GMT - Shell's potential sale of part of its renewable power business to a third part investor would presumably be a way of de-risking some of the capital exposure in this business, as well as to find a partner with more competency in renewables than Shell, Citi analysts write in a research note. The company is considering putting its renewable power business on the block, according to media reports on Thursday. The potential sale is presumed to be just for the solar and wind assets and pipeline, meaning the power and gas wholesaling and retailing wouldn't be part of any potential transaction, the analysts say. "In the current market we see a valuation of somewhere below $4 billion for this business," they say. ([e-mail])

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XPS Pensions Sale of XPS Pensions (Nexus) Makes Strategic Sense

0834 GMT - XPS Pensions' decision to sell XPS Pensions (Nexus), the main employer and scheme funder of the U.K.'s National Pensions Trust, makes strategic sense and shouldn't come as a surprise as it has been speculated in the media recently, Shore Capital says. The price, up to GBP42.5 million, looks good from the company's perspective as there was evidence the unit was facing price pressure from its recent results for FY 2022, Shore analyst Vivek Raja says in a note. Shore rates the stock buy and has a 185 pence target price. Shares are up 0.8% at 186.50 pence. ([e-mail])

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Burberry's New Collections Should Boost Growth

0823 GMT - Burberry is navigating relatively well through a hiatus period until the new creative director's collections arrive in September, with 1Q retail store sales meeting consensus views, Stifel analyst Rogerio Fujimori writes in a research note. "A stronger sterling and softening China macros do not help our buy call on Burberry, but we see self-help growth potential with the arrival of Daniel Lee's new products in stores in September," Fujimori says. The growth potential is backed by higher marketing support, attractive cash returns and a supportive valuation, he says. Stifel has a 2,520 pence price target on the stock. Shares are up 0.4% at 2,113 pence. ([e-mail])

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Burberry Booked Solid, In-Line First Quarter

0820 GMT - Burberry posted broadly in-line 1Q retail trends, which won't be a major surprise nor drive significant earnings revisions, Citi analysts Thomas Chauvet and Lorenzo Bracco write in a research note. The 18% rise in 1Q comparable store sales matched both consensus and Citi estimates, and was driven by resilient local and tourist demand in Europe, up 17%, a rebound in Mainland China, up 46% against Citi's 48%, and continued weakness in the America, down 8%, the analysts say. "We expect no changes to consensus FY24 sales of GBP3.3 billion and EBIT of GBP642 million," they say. Citi backs it neutral rating on the stock and a 2,300 pence price target. Shares are up 0.4% at 2.113 pence. ([e-mail])

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