FTSE 100 Drops as Pound Rises Ahead of BOE Meeting

FTSE 100 Falls as Pound Gains Ahead of Expected Interest -Rate Rise

0816 GMT - The FTSE 100 falls 0.4% to 7376 points as sterling rises ahead of the Bank of England's meeting Thursday, when interest rates are largely expected to be raised more aggressively. The market sees a 93% chance of the BOE lifting rates by 50 basis points, according to Refinitiv data. A stronger sterling weighs on overseas earners including AstraZeneca, GlaxoSmithKline, Unilever and Imperial Brands. Taylor Wimpey gains 2.7% after the house builder said it expects annual operating profit to reach the top end of the market consensus forecast range. "Trading is strong and the outlook upbeat, as evidenced by the market consensus of the shares which remains resolutely positive, coming in at a strong buy," Interactive Investor analyst Richard Hunter writes. ([e-mail])

 
Companies News: 

Vaalco Energy Cuts Guidance After Unsuccessful Well in Gabon

Vaalco Energy Inc. on Wednesday cut guidance due to the performance of the South Tchibala 1HB-ST well offshore Gabon.

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Accsys Technologies Finance Director William Rudge to Step Down by January

Accsys Technologies PLC said Wednesday that Finance Director William Rudge has decided to resign from the company after 12 years of service, to pursue new opportunities.

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Hill & Smith 1H Revenue, Profit Rose on Pricing Action, Market Resilience

Hill & Smith Holdings PLC said Wednesday that revenue and pretax profit for the first half rose thanks to pricing actions taken to recover input cost inflation and the resilience of its end markets.

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Zinc Media Launches Discounted Share Placing to Buy the Edge Picture

Zinc Media Group PLC said Wednesday that it is launching a share placing and retail offer at a discounted price to raise 5 million pounds ($6.1 million) and acquire the Edge Picture Co.

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EnSilica FY 2022 Revenue Soared, Driven by Strong Order Book

EnSilica PLC said Wednesday that revenue and adjusted Ebitda for fiscal 2022 were ahead of market views, driven by an increasing number of contracts.

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Ariana Resources Says 2022 Kiziltepe Guidance Remains Unchanged

Ariana Resources PLC said Wednesday that 2022 gold production guidance for the Kiziltepe mine in Turkey has been maintained at 25,000 ounces.

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Creo Medical Group 1H Revenue Rose as Number of Endoscopy Technology Users Doubled

Creo Medical Group PLC said Wednesday that it expects to report increased revenue for the first half of 2022 as the company benefited from strong momentum and more users of its endoscopy technology.

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Keywords Studios Buys Mighty Games for Up to $6.9 million; Completes Forgotten Empires Deal

Keywords Studios PLC said Wednesday that it has bought Mighty Games Group Pty Ltd. for up to 10 million Australian dollars ($6.9 million) and that it has completed the acquisition of Forgotten Empires LLC.

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Sabien Technology Raises GBP500,000 Toward Green Aggregation Strategy

Sabien Technology Group PLC said Wednesday that it has raised 500,000 pounds ($608,250) via a share placing which will be put toward the company's green aggregation strategy.

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Advanced Oncotherapy Raises GBP550,691 Toward 'Light' System

Advanced Oncotherapy PLC said Wednesday that it has raised 550,691 pounds ($669,916) via a share subscription, and will use the money toward full operation of its "Light" system at 230 MeV--a metric for proton beams--by the end of this summer.

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Endeavour Mining Hikes Dividend After 2Q Profit Beat Expectations

Endeavour Mining PLC on Wednesday raised its dividend as its profit fell less than expected in the second quarter.

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IP Group Swung to 1H Pretax Loss On Higher Investments

IP Group PLC reported Wednesday a swing to pretax loss in the first-half of 2022, driven by changes in value of equities and debt investments.

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LSL Property 1H Profit Fell on Slow Sale Exchanges; Lowers 2022 Expectations

LSL Property Services PLC said Wednesday that its first half pretax profit fell sharply and revenue slipped on slow residential sale exchanges, and lowered its 2022 profit expectations as a result.

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Keywords Studios Sees 1H Revenue, Profit Rise; Full Year Seen Ahead of Views

Keywords Studios PLC said Wednesday that it expects to report a rise in revenue and adjusted pretax profit for the first half of 2022 after experiencing strong demand, and that it expects full-year performance to be comfortably ahead of current market expectations.

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Ferrexpo 1H Profit Hit by Ukraine War Impairments

Ferrexpo PLC on Wednesday reported a significantly lower profit for the first half of the year, reflecting impairments of $254 million caused by the war in Ukraine.

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Taylor Wimpey 1H Pretax Profit Rose on Strong Margins

Taylor Wimpey PLC said Wednesday that it saw a rise in pretax profit for the first half of the year on strong margins, and it expects full-year operating profit to be at the top end of market consensus expectations.

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NortonLifeLock/Avast Deal Provisionally Cleared by UK Regulator

The U.K.'s Competition and Markets Authority said Wednesday that it has provisionally cleared NortonLifeLock Inc.'s acquisition of Avast PLC following an in-depth merger investigation.

 
Market Talk: 

JDE Peet's 1H Earnings Set to Drive Consensus Upgrades

0752 GMT - JDE Peet beat expectations for the first half of 2022 and backed its outlook, which should be enough to reassure investors, Citi says in a research note. The Dutch coffee company--which owns the Douwe Egberts, Peet's Coffee and L'Or brands--may benefit from consensus upgrades at the gross margin and EBIT/EPS levels given heightened operating leverage after implementing price increases, the U.S. bank says. "We think this set of results bears more significance than what has been seen with other fast-moving consumer goods so far, as headwinds and pricing started earlier for JDE Peet's," Citi adds. The bank has a neutral recommendation on the stock. Shares rise 8.1% at EUR30.12. ([e-mail]; @sabelaojeaguix)

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BOE May Prefer Stronger Pound to Tame Price Growth

0736 GMT - The Bank of England may prefer a stronger pound to aid its battle against high inflation, ING says. "Some BOE speakers have said that the pound has a role to play in monetary policy settings and indeed the trade-weighted pound has rallied 3% from its lows in July, largely on the back of the weaker euro," ING analysts say in a note. With gas prices remaining high and the dollar likely to stay firm--adding to inflationary pressures--arguably the BOE wants a stronger pound, they say. The BOE is largely expected to raise interest rates by 50 basis points at Thursday's meeting. GBP/USD rises 0.3% to 1.2201 and EUR/GBP falls 0.1% to 0.8351. ([e-mail])

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Taylor Wimpey's Strong 1H Highlights Share-Price Disconnect

0731 GMT - Taylor Wimpey's strong first-half results highlight the gap between business and share-price performance, Interactive Investor says. The house builder reported strong demand with a positive outlook, and market consensus on the shares appears to be a strong buy, Interactive Investor Head of Markets Richard Hunter says in a research note. Share-price performances haven't reflected this optimism across the wider house building sector, however, the investment platform says. "Despite the initially positive reaction to the numbers, Taylor Wimpey shares have declined by 28% over the last year, as compared to a gain of 4.3% for the wider FTSE 100, underlining that caution rather than hope remains the watchword for this beleaguered sector at present," Hunter says. Shares are up 3.2% at 123.9 pence. ([e-mail])

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Metals Mixed Amid Pelosi Taiwan Visit

0719 GMT - Metals markets remain mixed early on Wednesday, with trading houses noting limited buying in Asian markets amid Nancy Pelosi's visit to Taiwan. Three-month copper was up 0.1% to $7,764 a metric ton while aluminum fell 0.1% to $2,410.50 a ton. Gold prices in New York fell 0.3% to $1,784.90 a troy ounce. Pelosi's statement of not abandoning Taiwan injects uncertainty to markets, helping to lower trading activity, according to Marex's Zenon Ho. However, Ho says in a note that analysts are starting to discount the likelihood of China coming back with a military response despite drills being conducted in the South China Sea. ([e-mail])

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Taylor Wimpey's Encouraging 1H Points to Higher 2022 Expectations

0657 GMT - Taylor Wimpey's first-half results were encouraging, coming in slightly better than anticipated and driving full-year expectations toward the top end of market views, Citi says. The U.K. house builder benefited from higher joint venture contributions, better pricing and land sales, and this is likely to raise 2022 market consensus expectations by around 2%-4%, Citi analyst Ami Galla says in a research note. That said, "the slower sales rate noted in July trading is likely to weigh on broader sector sentiment, with housebuilders operating a tighter order book having a lesser degree of flexibility to optimize pricing," the U.S. bank says. Citi retains its buy rating on the stock and target price of 221 pence. ([e-mail])

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Just Eat Takeaway.com Shares Expected to Fall After Weak 2Q

0654 GMT - Just Eat Takeaway.com's shares should react badly to the food-delivery group's first-half results given its previously strong performance and the significant improvement required in both second-half performance and the Ebitda margin, Citi analysts say in a research note. The Amsterdam-based company had a weak second-quarter performance and, despite it reiterating full-year guidance, investors should be skeptical on second-half growth, the analysts say. Meanwhile, management didn't provide any details on Grubhub's new U.S. Prime partnership, Citi says. The U.S. bank has a buy rating on the stock with a target price of EUR37.00. ([e-mail])

Contact: London NewsPlus, Dow Jones Newswires;

(END) Dow Jones Newswires

08-03-22 0453ET